August 30, 2006
Money money money

Thanks to Gordon for the pointer to a Newsweek article looking at China's massive foreign exchange reserves, saying it is possible to have too much of a good thing. Amongst the interesting observations, including a comparison with Singapore, comes this:

The roots of this contradiction go back to the early 1980s and the start of reform in China, when the late patriarch Deng Xiaoping opened the manufacturing sector, but not the banks, to foreign investors. The good news was that the closed system inoculated China against the rush of global capital that toppled banks across Asia in the crisis of 1997-98. The bad news: banks had no competitive incentive to learn proper risk management, or to introduce modern retail banking or consumer lending. Now the system is such a mess that China fears to open it. And it sits on a huge pile of idle dollars that its own banks are unable to employ fully at home.
Just a friendly reminder to those who are holding shares in China's banks.

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[boomerang] Posted by Simon at 14:07
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August 29, 2006
Monopoly money

It's not easy being a monopolist for 40 years, reaping massive profits, before the harsh winds of competition ruin your monopoly rents. Just ask casino mogul Stanley Ho, who's been mouthing off for weeks. From the unlinkable SCMP:

Gaming mogul Stanley Ho Hung-sun yesterday accused the Macau government of favouring his American competitors. The tycoon also suggested that "vicious competition" in Macau's casino industry may incur the ire of Beijing, while attending the launch of budget airline Viva Macau's first Boeing 767 jetliner at Macau International Airport.

But William Weider, chief operating officer of Las Vegas Sands, said on a different occasion that competition was inevitable and beneficial to Macau's economy.

A grim Mr Ho said: "I can't take it lying down. Why do you so favour the Americans? It's unfair." He said some US stakeholders in the gaming industry had broken their promise of "peaceful competition" while disregarding Macau's future. "At that time they said there would be peaceful competition. We invest in Macau all the money we earn, but you guys [Americans] just take it away."

The tycoon said some US stakeholders had tried to break his helicopter monopoly - important for bringing in high rollers - but he would not give it up.

He also complained about losing casino staff: "They never trained any staff but took away ours." He said the cutthroat competition would hurt the long-term interests of Macau, and even Beijing. "In the long run, they may take away my business and affect Macau. They may send people to the Legislative Assembly and take control of Macau. It may not be good for Beijing either."

Earlier this month, Mr Ho called for an industry chamber to regulate the stakeholders. The tycoon then said one third of his Sociedade de Jogos de Macau's VIP gaming halls faced bankruptcy, putting thousands of jobs at risk.

You hear that, you nasty Americans? Stanley's going to call on Beijing to take control if they don't stop being so, umm, capitalist. Or something. It's not fair. Except for Macau itself, which is experiencing booming economic growth and a massive influx of investment.

Perhaps Mr. Ho should take a look at Hong Kong's gambling "monopoly", the Hong Kong Jockey Club. In this case, the monopolist faces massive competition from illegal bookmakers. So naturally they respond as any player does in a competitive market: they look to match terms. Indeed the HKJC has been lobbying the government for years to change the legislation and tax regime to allow the HKJC to better compete with the illegal bookies.

As I said, it's not easy being a monpolist.

Update 12:51

Hemlock joins in kicking a monopolist while he's down:

The putrid stench of hypocrisy permeates the Big and Little Lychees this morning. In Hong Kong, Gillian Chung of the inane Twins duo sobs to the press in the company of fellow Canto-stars about the terrible ‘ordeal’ she has suffered after gossip rag Easy Finder ran blurred photos of her apparently adjusting her bra strap. All sorts of publicity-seeking invertebrates and moralizing bores, from politicians to feminists to the Society for Truth and Light, are jumping on the bandwagon. Were my hands not occupied gripping an extra-large air motion discomfort receptacle, I would be tempted to give Chung a slap on her tear-streaked face and a reminder to tone down the hysterics. Much more weeping, and she’ll start giving people the impression it’s just an act. They might even think that rather than being the distraught, innocent victim, she is no more than a talentless bimbo who signed up to become a manufactured product created by a company whose boss sleeps with every starlet and her mother and gets his way by ordering kidnapping, rape and choppings. Which, being totally untrue of course, would be tragic. “What I am most worried about,” she tells us, “are my young fans who look up to me as a role model.” They scare me, too.

Meanwhile, in Macau, Stanley Ho is equally distressed about how much harder life is when you no longer have a casino monopoly. In recent remarks on the subject he has accused his new American rivals of poaching staff that he has trained (but also somehow threatening people’s jobs) and taking money out of the city. He has even dropped hints that Beijing will not be happy. Sheldon Adelson, owner of the space-age Sands casino and the vast, forthcoming Venetian, says that the real competition has barely started – wait until Steve Wynn sets up shop.

Ho’s plight is a vivid reminder of how our local tycoons are to real businessmen as Twins are to the Berlin Philharmonic. They don’t do creativity, acumen or skill. All they know how to do is corner a market with Government help and skim the wealth off. Hong Kong’s property development industry has made Li Ka-shing, Lee Shau-kee and the Kwok brothers multi-billionaires, and officials and the public fawn over them as if they were Cantopop’s finest. But the industry is little more than a state-organized pyramid scheme. A chimpanzee could make money out of it. And all the members of the cartel have ever done with their gains is buy up other rigged industries at home, like utilities, bus lines and supermarkets. Only Li has ventured much overseas, and then only to indulge in (sometimes clever) asset trading. Henderson or Sun Hung Kai wouldn’t last five minutes in an environment where you fight to add the most value. They survive only because consumers have no choice. The same, of course, applies to our political leadership. Some places get Bill Gates or Richard Branson, Ronald Reagan or Margaret Thatcher. Here, we’re impressed if you can adjust a bra strap.



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[boomerang] Posted by Simon at 09:27
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August 25, 2006
Lay off the white rice, lads

It's official - there are now more fat or obese people in China than there are in the US. The percentages of course are still heavily pointing to America as having the most fat people (and Illinois the fattest state), but the trendline is alarming.

So nix the carbs in the white rice. All you Cantonese, mebbe go easy on the dim sum too. You northerners, well, maybe more olive oil, less zha jiang mian and peking duck! Or if you're on the Atkins diet, eat only Peking Duck, just leave off the flour wrappers...:)

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[boomerang] Posted by HK Dave at 17:46
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Some Are More Equal Than Others

Who could forget that classic line from Animal Farm, George Orwell's parody of the cult of personality in the communist and authoritarian states.

Well, under the new rules of the People's Republic of China, if your Daddy contributes more than RMB3 million to tax revenues, you get extra bonus points put on your school exams, which will allow you to go to a better university.

Somehow I think even Mao would be squirming in his grave. Agreed, in the absence of a lot of 'old money', it is just similar to alumni 'donating' money to their school to get their inbred kids into their alma mater. But there is something powerfully repulsive to me, isn't there, in this system? I guess the social engineers of the system are trying to discourage wealthy parents from just getting their kids in direct to school by purchasing a place. Still, pardon me while I reach for the motion sickness bag.

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[boomerang] Posted by HK Dave at 17:40
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August 24, 2006
The value of the Chinese

Over at Travellers' Tales, an interesting Chinese correlation:

All else being equal, the more Chinese a [SE Asian] country has, the richer it becomes, he claimed, because of the entrepreneurial drive of these immigrants...Even if one puts aside the idea that there is something in the genes or the culture that makes Chinese naturally get rich–after all, the bulk of the world’s Chinese turned their backs on money-making for 50 years–there is the idea that the people of a diaspora will gravitate toward trading and finance...

Burma: 3% Chinese, $157 per capita GDP
Cambodia: 1.2% Chinese, $341 per capita GDP
Laos: 1% Chinese, $396 per capita GDP
Vietnam: 3% Chinese, $518 per capita GDP
Philippines: 2% Chinese, $1,021 per capita GDP
Indonesia: 3.1% Chinese, $1,100 per capita GDP
Thailand: 12% Chinese, $2,845 per capita GDP
Malaysia: 25% Chinese, $5,003 per capita GDP
Singapore: 76.8% Chinese, $24,620 per capita GDP

Correlation is not causation, but without doing statistical analysis it seems a reasonable proposition. More interesting is this correlation works even in places where the government actively works against the Chinese population, e.g. Malaysia. The only question is whether even a small number of Chinese people in a population can make that sigificant a difference to per capita GDP?

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[boomerang] Posted by Simon at 11:49
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August 23, 2006
Albert Ho's bashing

Hong Kong politician Albert Ho is on the mend and vowing not to be intimidated by the thugs that bashed in a McDonalds in Central on Sunday. The police are working extra extra extra hard on the case, says the government, protesting just a touch too much. It seems the likely cause of the bashing was related to Ho's legal work rather than his politics, which is both a relief and a worry.

But there's a factor in this case that no one is talking about, simply because it's accepted wisdom. How is it that 3 thugs can walk into a McD's in the middle of Central on a busy Sunday afternoon, where at least 150 people were dining or working, and bash a man with baseball bats without anyone doing anything about it? The original reports said most patrons ran from the restaurant. The common perception is that it is better not to get involved, especially when its the Triads. But this permissiveness is part of a culture that allows organised crime to survive and thrive.

It's impossible to say for certain, but I wonder if the same 3 thugs would have got away if they'd walked into a McDonald's in the middle of Manhattan, or London, or Sydney?

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[boomerang] Posted by Simon at 09:46
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Distinguished guest

A very warm welcome to a special reader of these humble pages...Nicholas Kristof. It seems the New York Times is testing some kind of RSS reader and this site is on Mr Kristof's page (below the jump has a screenshot).

Absolutely flattered. This site's come a long way in almost 3 years. Which reminds me, the anniversary is 2 weeks away.

Kristof.gif



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[boomerang] Posted by Simon at 09:34
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August 22, 2006
Coke is it

Legal cocaine in Hong Kong.

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[boomerang] Posted by Simon at 21:38
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Revising History

There was a rather odd, equivocal opinion piece about the Yasukuni Shrine visit controversy today in the Standard. At its heart is the well-worn sentiment that China is diverting domestic and regional attention from more recent national atrocities but continuing to make an issue out of shrine visits by the Japanese leadership.

While there is some truth to that, there is also truth to the fact that many segment of Japanese society live in a complete bubble, insouciantly ignorant of any past atrocities, and an influential minority that prefer to distort history by outright denying it. The power of history is strong, and nationalist leaders in Japan feel they must pander to these revisionists to carry their votes.

It is therefore regrettable, in an article about revisionism of history, that the author himself commits one of the greatest journalistic mis-statements of all time: "Will also pointed out a few things Beijing would never admit. Most Chinese resistance during the war was by Chiang Kai-shek's forces. "

This is actually a farcical claim when Chiang Kai-Shek's generals spent most of their time fighting pointless little battles with each other and running from any armed confrontation with the Japanese, and bilking America out of such amounts in the name of fighting Japan as to make the Iraq Oil-for-food scam look like a child's hand in the cookie jar. While the average nationalist soldier fought hard, this was in spite of the total incompetence and craven-ness of their generals with regard to the Japanese. Chiang had no desire to fight Japan at all and only used the possibility of fighting them throughout the war as a lever from which to extract more pork for him to distribute amongst his corrupt coterie of handers-on and yes men. The Communists, on the other hand, cut a much more noble figure, and were also far more effective as guerilla fighters against the Japanese.

Careful what you say there, Mr. Liu Kin-Ming. History is power, and if we are going to criticize distortions turn about is fair play.

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[boomerang] Posted by HK Dave at 16:03
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SCMP reporting

Barclay Crawford is an investigative reporter at the SCMP, with recent efforts including his exploration of alleged-coke selling hookers at Fenwicks. Back on August 12th he reported on a domestic helper who claimed she had been abondoned by her employers. This was followed up by an August 14th article with comments from the employer denying the accusation and a rehash of the original article. Both articles are reproduced below the jump.

Without passing judgement or comment as to the truth of these allegations, I have received an email from a source with knowledge of the case:

His [Crawford's] story of an abandoned helper left without food or "essentials" or housekey is fabricated. The unit the helper works/lives in has a property caretaker named Mr. K his telehone number is XXXX-XXXX. Barclay never interviewed him now even knew of his existence. Mr. K lives on the premises at issue.

Mr. K works directly for the landlord who owns all units including [a PR executive's] home. Mr. K can verify the utilities not being turned off. Even the Helper's personal A/C was not affected. Mr. K can vouch that no utilities were off for the Helper's unit except 4 hours on 7/31 electricity and water another day for 4 hours both were area wide by Hong Kong government. Watson's bottled water service for the Helper's unit was delivered weekly without interuption. All this can be verified not just by Mr. K but the utilities and Watson's bottle water. Barclay Crawford did not verify - why?

Food. A police report filed on August 13 the day the employer's returned # 3501 will show the police arrived called by the employer, the house fully furnished with food and in fact the Helper to have been consuming. Barclay Crawford never set foot into the Helper's unit. Barclay alleges this Helper was left without food showing an empty fridge. That fridge is not the same fridge as in the Helper's unit. Look at photo on August 14. The same police report shows the Helper refusing to sign her own resignation that she had typed up that gave the employer's 30 day notice to September 14. Police report #06003542 on August 14 shows the Helper refusing to leave forcing the police to threaten forcible removal. The Helper was terminated by the employer paying wages in lieu of notice, wage, plane ticket. The Helper insisted on staying to Sept. 14.

In reality the Helper had been terminated once before during visa processing. Helpers in Hong Kong must leave Hong Kong under preterm contracts unless death of employer, financial hardship or abuse. This helper could not do the first 2 so abuse was her only option. See Hong Kong Immigration Department Foreign Domestic Helpers Section reference file 27274/04 dated July 3rd notifying her that she has to leave if these employer's dropped processing.

2 charities donated food to this helper. NONE set a foot into the helper's unit to validate the helper's false claim. One charity organization Helpers for Domestic Helpers made an impromptu stop on August 14 and at the employer's invitation was shown the Helper's accommodations and food situation.

Property camera's can show employer's bought no food when they return as their flight on Gulf Air landed at 3:30pm August 14. The police report was taken 4:30pm August 14 within 15 minutes of their arrival home.

No housekey. There is a helper agency the helper visited twice in Central. A Mr. T of ZZZ agency can verify this. Easier, Mr. K on the property can verify this Helper's exits as well as the camera film on the property.

Barclay wrote this Helper was left without a key to leave to even buy food. Helper left without money to buy food. Helper was left on top of a full fridge, bottled water and 3 paid Holidays $150.00 [sic]. Helper used this to buy chicken and fruits receipt from Wellcome.

What is interesting is that Barclay can write any fiction about anything. Completely unaccountable. Without basic inquiry.

What is more interesting is his relationship with [a PR executive], the PR firm head of YYYYYYY in Hong Kong. This is not a big story but [PR executive] must have influence over Barclay, hence SCMP.

August 12th - Helper claims she's been abandoned

A domestic helper from Sri Lanka says she has been abandoned for nearly two weeks in her employer's multi-million-dollar mansion without any food, money, gas for cooking or a key with which to leave the residence.

Saroja Priyangani Jayasekara Vithanage, 36, has been relying on food handouts
from neighbours and the charity Helpers for Domestic Helpers while her employer and his family take a holiday in Egypt.

Ms Vithanage's employer, her second since arriving in Hong Kong in 2004, is a
top banker in the city. He cannot be named for legal reasons.

Two charities, Christian Action and Helpers for Domestic Helpers, confirmed
they had contacted Ms Vithanage and organised for food to be brought to her.

A spokeswoman for Helpers said the charity would write to the Immigration
Department about the case and had notified the police. 'She doesn't have anything and she is scared to leave the house because she
doesn't have a key,' the spokeswoman said.

Speaking next to two late-model German-made cars in the garage of her
employer's luxury, multilevel home in Chung Hom Kok, Ms Vithanage held a copy of her contract, which showed that she was paid HK$3,400 a month - the minimum wage for a domestic helper in Hong Kong.

The contract also has a clause stating that she should be given HK$300 a month
if she is not provided with food, but Ms Vithanage said she had yet to receive
this sum.

The instructions left by her employer warn her that she is 'on probation'
because they are unhappy with her performance since she began working on July 18. The instructions also state that she can leave the house only on August 8.

'It's so hard for me because I have a family and three children at home whom I
support by working in Hong Kong,' she said. 'But I have to resign from here, I
cannot take it any more.'

A tearful Ms Vithanage said she had to keep her clothes and food in the garage
since arriving. 'I can't take it any more; I'm going to hand in my notice when they get back to Hong Kong,' she said.

A source close to Ms Vithanage's employer and his wife said that the family
had hired and fired several maids in the past year. 'They all cry and are very unhappy with the madam, who just shouts and blames the girls for everything,' the source said.

Ms Vithanage's employer's secretary at the European investment bank at which
he works said her boss was on holiday but could be contacted by e-mail, which he checked regularly.

Ms Vithanage's employer did not return any e-mails requesting a response to
her allegations.

The case follows a report last month by the New York-based Human Rights Watch, which praised Hong Kong for protecting domestic workers' rights.

August 14th - Employers deny leaving helper with no food or door key

The employers of a domestic helper who claimed she was abandoned without food, money, gas or a key to their exclusive residence for almost two weeks said yesterday they were the real victims.

Saroja Priyangani Jayasekara Vithanage, 36, said last week she had to appeal
to charities and neighbours for food because her employers had left her nothing. Police were called to the residence yesterday by the employer, a top Hong Kong banker, who had returned from holiday. His wife, who agreed to talk to the Post as long as she was not named, said Ms Vithanage may be trying to make a claim against them through the courts.

She said there had been no need for the helper to appeal to charities or
neighbours for food because there was plenty of food in the house and they had
given her $150 to live on while they were away on holiday. A key was available at all times for the maid, she said.

Two charities, Christian Action and Helpers for Domestic Helpers, confirmed
last week they had contacted Ms Vithanage and organised for food to be taken to her.

'Why would we not want her to eat the food here?' the wife said, pointing to
fruit in bowls and in the refrigerator. 'It is only going to go off if it is not
eaten. I have never told her that she cannot eat anything in this house. We even
have emergency supplies in case of a typhoon and water delivered every week.'

The family said they had had a legal problem with a previous helper who had
stolen from them. The Labour Tribunal ruled in their favour, forcing the helper
to pay them back HK$200, she said.

Ms Vithanage offered a resignation letter yesterday, giving them 30 days'
notice. But the wife said they would not sign off on it without advice from the
Labour Department.

'We don't want to sign something until we know what it means. She could be
planning to make a bigger claim because she thinks we are wealthy,' she said.
'But all we have is our reputation. We have four children to support and our
reputation is our way of earning our living. If she really doesn't like us that
much, she can just go now, but she is now saying she will stay and work.'

Ms Vithanage last week showed the Post a copy of her contract, which specified
her pay as HK$3,400 a month, the minimum wage for a domestic helper. It also has a clause saying she should be given HK$300 a month if she is not provided with food, but Ms Vithanage said she had not received the sum.



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[boomerang] Posted by Simon at 10:56
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August 21, 2006
You want fries with that?

Democrat politician walks into the Queens Rd McDonalds yesterday after a GST protest and promptly gets bashed with baseball bats. Shocking as it is, it is extremely unlikely that his is a politically motivated incident. At the time of writing, it's impossible to confirm if Hello Kitty was involved but the lesson is clear - McDonalds is a dangerous place.

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[boomerang] Posted by Simon at 10:27
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August 18, 2006
Travel warning

Hong Kong airport has gone to shit.

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[boomerang] Posted by Simon at 12:48
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Dying to get out

Move over David Copperfield, it's actually China that's discovered the fountain of youth....well at least the secret to immortality:

A third of deaths were not reported to the country's national surveillance system, it says. About one in five hospitals did not report any deaths at all.

Even where deaths were reported, there were often delays and mistakes. In about a quarter of cases, the cause of death given just related to symptoms, such as heart or lung failure.

If bird flu hits, you know you'll be safe in one of these hospitals.

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[boomerang] Posted by Simon at 11:01
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Fish out of frozen water

Senior civil servant goes to Kowloon and survives...film at 11.

Meanwhile Hong Kong's clever bus companies have found a dual use for their vehicles: they can transport both people and frozen goods.

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[boomerang] Posted by Simon at 09:17
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August 17, 2006
China's role in Lebanon

This edition of Jamestown Foundation's China Brief has an article discussing how China was involved in the Lebanon crisis on several levels. Amongst the other interesting observations is this:

As the crisis persisted, a basic contradiction in Beijing’s attitude toward the United States became exposed, reflecting the complicated relations between the two countries. On the one hand, China has blamed the United States for using the conflict to pressure Iran and Syria, to “export democracy” and to promote its “Greater Middle East” Project (People’s Daily Online, July 28). At the same time, Beijing points out, the conflict further demonstrates and underscores the limits of U.S. power....Yet on the other hand, during the conflict, China called on the United States to abandon its “apathy” and “indifference,” occasionally almost begging Washington to step in and “make any move or take any mediatory actions” to stop the war (Xinhua, July 21). Beijing’s recognition of U.S. global influence also reveals the limited sway that China has over the Middle East region. Expectations that the PRC will become a “responsible stakeholder” are premature. For the time being, China is a “silent partner,” talking much but doing little.
There's other gems in the article. Well worth a read.

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[boomerang] Posted by Simon at 11:25
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August 16, 2006
Wal-Mart with Chinese characteristics

Wal-Mart has a special relationship with China - it sources huge amounts of its product from China and single-handedly accounts for 10% of US imports from the place. Wal-Mart is also famously anti-union, fiercely resisting them in any of its stores. But with the juicy carrot of Chinese retailing dangled in front of them, they've given way and allowed unionisation of their workforce in China.

Yet such a breach of Wal-Mart's fortitude is not what it may seem. Official Chinese trade unions are not the same as those in the West:

On the face of it, the conflict between the global retailer and the world's biggest labor group, the All-China Federation of Trade Unions, might seem of epic potential.


But less is here than meets the eye. The federation's not a union alliance in the Western sense. It's controlled by the ruling Communist Party, allows no competing labor unions, rejects free elections of its leaders and often goes to bat on the side of management over workers under the guise of harmonious economic development.

It's also a federation in a fix. It struggles to gain dues-paying members in the thriving private sector and craves international legitimacy. Almost no union confederation abroad recognizes it officially.

And union recruiting certainly differs to the West:
As Nanjing's top labor chief, Chen said it wasn't hard to recruit some 30 of the local Wal-Mart store's 300 employees and persuade them to form a union.

"I presented them with a TV set, a DVD player, books and 20,000 yuan (about $2,500) in cash," Chen said. "I also treated all Wal-Mart employees to an American blockbuster movie, `Mission Impossible III.' You know, with Tom Cruise."

And it's hard to know what the union is going to actually do...
Even so, Wal-Mart sounded unsure of what unionized workers might desire. All of Wal-Mart's Chinese workers get retirement benefits, medical insurance, workers' compensation, maternity and paternity leave, paid holidays and annual health checks, said Amy Wyatt, a spokeswoman for Wal-Mart's international affairs.
And there's one more difference from Western unions:
It's not too early to predict, though, that the new unions will be denied a basic entitlement of unions in the West: the right to pick union leaders in democratic elections.
Workers of the world, unite.

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[boomerang] Posted by Simon at 09:40
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August 15, 2006
American reporting on China

I'm in the middle of reading Chang/Halliday's Mao: One hell of a prick. So far the book has shown Mao to be a ruthless, heartless and opportunistic son-of-a-bitch who was politically savvy and was fortunate enough to be protected and coddled by another son-of-a-bitch, Joe Stalin.

It is the 40th anniversary of the launching of one the biggest pieces of state-run lunacy in history: the Cultural Revolution. While Communists generally love their anniversaries, even Beijing can't bring itself to commemerate the beginning of "great disorder under heaven". Which leads to an interesting remenicence from AP hack John Roderick on how American reporters covered China in those days and the somewhat surprising revelation that one of their key sources of information was the U.S. Government.

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[boomerang] Posted by Simon at 08:24
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August 14, 2006
China's Area 51

From the Sydney Morning Herald (free reg. req'd), a report of strange goings-on in Ningxia. It's also a great demonstration of Google Earth and other public satellite picture systems. An excerpt:

On the internet, a little mystery can go a long way. Six weeks ago, a man living in Germany and calling himself KenGrok, announced a fascinating discovery on a Google Earth Community forum.

Poring over satellite images of China on the free Google Earth service, he came across a strange plot of land - approximately 900 metres by 700 metres, about the size of six Sydney Cricket Grounds.

The land, which KenGrok said was landscape that had been modelled for military purposes, is situated near the town of Huangyangtan about 35 kilometres from Yinchuan, the capital of the autonomous region of Ningxia, in northern China. Nearby, there is a substantial facility complete with rows of red-roofed buildings, scores of what look to be military trucks and a large compound with elevated lookout posts and a large communications tower. The land was contoured in a way that was out of sync with the surrounding countryside. It appeared to be a mountainous region, complete with snow-capped peaks and glacial valleys dotted with numerous lakes.

Yet this piece of land was slap bang in the middle of a largely arid area due west of the rich alluvial plains bordering the upper reaches of the Yellow River.

A fellow Google Earth enthusiast suggested that the topography indicated that this was probably a model of land on one of China's frontiers. KenGrok went looking and two weeks later came back with the answer. The swatch was a scale model of 157,500 square kilometres of territory in and around China's Aksai Chin border region that abuts India and Pakistan.

The scale is exactly 500:1...

Thanks to J. for the pointer.

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[boomerang] Posted by Simon at 13:13
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Con-sulting

To the Hong Kong government's surprise, there is not a single group that has come out in support of its proposed GST. Even erstwhile reliable toadies such as the Liberal Party have turned their back on the idea. All this less than a month into the nine month "consultation period". The situation is dire, reports the SCMP:

The government will try to rally public support for a broadened tax base following a rethink of its strategy for the consultation on a goods and services tax (GST), which has so far met overwhelming opposition.
The new strategy will be implemented after Financial Secretary Henry Tang Ying-yen returns today from his two-week holiday...

"It is time for us to refocus the discussion on the GST, to make sure people have rational and in-depth debates [on the need for a new tax] in the next stage of consultation. Otherwise, the discussion cannot go on," the source said.

We all know what that means: endless TV ads extolling the virtues of the GST, dressed up as a public service announcement. The current ad cycle includes such edge of the seat issues as appointing even more politicians to do not very much. It makes me nostalgic for those ads on stormwater drains and old people. Meanwhile the government faces a problem: if it can't change people's minds in the next eight months (and it looks unlikely), what do they do with their GST idea? Or perhaps it is an idea the government is happy to see fail as it allows the business as usual system of selling off land to the property cartel? Henry Tang going on holidays only two weeks after launching the GST idea clearly shows what he thinks of the thing. This way he can say he tried, he headed public opinion and he moved on.

The only question is how much taxpayer money has been and will be spent on this fruitless exercise?

PS: I can heartily recommend a holiday at Sanya on Hainan Island, especially if you speak Russian.

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[boomerang] Posted by Simon at 09:14
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August 04, 2006
Brought to you by Pfizer

A hard Hong Kong man is hard to find.

The article doesn't quite spell it out, but it's pretty clear: "you need Viagra, whether you know it or not". Who'd have thought a drug company would sponsor such a survey with such, um, commercially viable results?

Isn't this kind of article Barclay Crawford's thing?

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[boomerang] Posted by Simon at 14:10
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August 03, 2006
Money, not brains

Oil and water don't mix. It's handy to remember that before throwing your fortune at trying to prove the saying wrong. From the SCMP, China's Don Quixote:

Chen Jinyi, once China's 35th richest man, is facing court action over unpaid debts after spending his entire fortune on a project to turn water into fuel oil. Hoping the modern version of medieval alchemy would work, Mr Chen and his company, Jinyi Group, spent more than 100 million yuan on research and development into an unproven technology that would dilute oil with water to produce cheaper and more efficient fuel.

That investment may have put Mr Chen into financial trouble. A district court in Hangzhou has publicly identified him for not paying debts totalling 678,000 yuan and the Hangzhou Intermediate People's court initiated proceedings against Jinyi Group for unpaid bank loans of 36 million yuan. Mr Chen insists his "milky oil" project, as it is known in Chinese, has been a success and that all he needs is time to get the product to market.

"The milky oil project is ready and is scientific, legal, authoritative and practical, all it needs now is to be popularised and commercialised," he said in an interview yesterday. "This [legal] problem has arisen because we have invested in this project continuously for three years but now it is ready, there are lots of people who want to co-operate with us and this difficulty will soon be resolved."

[Chen's] personal worth was estimated at 800 million yuan in 2001...The supposed inventor of the new technology, Wang Xianlun, is no longer working or co-operating with Jinyi Group but Mr Chen insists the project will be a success.

"The masses don't understand this technology so I will have to do a lot of scientific education work," he said.

Certainly somone needs scientific education work. At least it's only Chen's money, not shareholders.

Given that bottled water costs more than petrol, I'm not sure this would be an improvement even if it worked.

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[boomerang] Posted by Simon at 22:40
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Literal reporting

Sometiems it's hard to tell if the SCMP is being funny or not...although chances are not. The Don is over in Guangzhou and has claimed a breakthrough on the Zhuhai/Macau/Hong Kong bridge project because there will be three customs posts instead of one (this is what constitutes a breakthrough these days). Half-way through this otherwise puzzling reporting piece comes a gem:

Asked why he described the absence of a joint customs and immigration checkpoint as a breakthrough, Mr Tsang said: "It is the agreement which represents a breakthrough ... I think we are now seeing the end of the tunnel."

Mr Tsang was not thought to have been referring to a rival plan for a cross-delta tunnel.

Another reason to avoid cliches: people may take you literally. There was no hint whether the reporter bought drugs for the article.

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[boomerang] Posted by Simon at 08:19
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