Social Unrest in China: Implications for Foreign Invested Enterprises

June 28th, 2011

 

I recently wrote a couple posts on my book blog ChinaInsideOut.info about worker unrest disrupting company operations in China, and even entire communities. Zengcheng, in Guangdong province, seems to have settled back down to being the jeans manufacturing capital of the world. The one city alone generates 40-percent the jeans Americans slip over their buttocks. Migrant workers got sick and tired of being treated like second-class citizens and revolted en masse. Staff at a factory owned by Citizen, the Japanese manufacturer of the watch brand of the same name, also recently staged an industrial action.

I’ve written more in-depth about the impact the spate of unrest is having on China-based operations and the knock-on effects on supply chains of international companies that rely heavily on China being a stable Workshop of the World. The report is called, “Social Unrest in China: Implications for Foreign Invested Enterprises”. One of the interesting points I turned up in my research for the report was the overwhelming number of companies at which workers are staging proletariat-style revolts are Asian: Taiwanese and Japanese, mainly, with some Hong Kong investors I suspect are predominantly Chinese Mainlanders “round-tripping”; that is, setting up HK investment vehicles to re-invest in the Mainland as foreign companies: helps in reducing local tax burdens and makes it easier to get their income out of China.

I’ve always been of the mind Asian investors tend to treat their employees as liabilities, disposable; while Western companies invested for the long-term in China tend to treat their staff as assets to take care of and encourage. People don’t like being treated as liabilities. Of course, their are exceptions in both camps; however, I’ve found few exceptions over the years.

Read more about the report here.

Related posts from ChinaInsideOut.info:

The Unrested in China

Workers Still Unrested

 

Post to Twitter

A Clash of Civilizations

May 23rd, 2011

I admit I do have two pet peeves about living in China: scalpers and line jumpers – if there’s a line. Few things make me as mad-as-hell-and-I’m-not-going-to-take-it-anymore as people who do either of both: I get quite vocal in Chinese  language at the infraction (which happens all too often here), and have no problem shaming the assailant into civility.

And so it comes as little surprise to me that a couple weeks ago the China Daily reported an Apple worker was involved in an altercation that involved a couple supposed scalpers getting scraped up when they attempted to jump the queue that had formed to buy the new iPad 2 at the Sanlitun store in Beijing. The queue dissolved into mayhem with Chinese characteristics when the crowd saw staff shuddering the store after the run-in. The event seemed to roll up all those grubby elements that sometimes makes living in China a bit of a struggle, no matter the nationality.

I’m just glad I wasn’t the Apple employee who engaged the scalping line-jumpers. I certainly would not have endeared myself to local authorities for fracas I might have contributed to.

image credit: China Daily

Post to Twitter

Love is a Money-splendid Thing

May 7th, 2011

 

 

An expat friend of mine recently regaled me with stories of how Chinese men with money attempt to woo his Chinese girlfriend. The young lady in question – we’ll call her Ling Ling (not her real name), works in an expensive jewelry shop. And she is attractive by any definition. At least, the fiancees who come into the shop with their brides-to-be think so. Apparently, after the men buy their paramours and themselves matching wedding rings, the men will later return to the shop without the loves of their lives in tow. Instead, they will approach Ling Ling, ask her to suggest another women’s ring – one she finds tasteful – buy it, then present it to her with an invitation for dinner. Now, my friend assures me she never accepts the ring or the invitation. Or the clothing.

A middle-aged Chinese businessman saw Ling Ling in a mall and asked her to help him shop for clothes for his mother, who was in her seventies, apparently. Ling Ling, with long, languorous legs, a narrow waist and an excellent posture said to the man, “You’re mother is built like me?” The man assured Ling Ling she was, and asked again for her help. Ling Ling demurred, and suffered being a clothing dummy for an hour or so while the man held various youngish blouses and skirts up to her figure to imagine how old ma-ma would look.Purchases completed, the man passed all the bags of clothes to Ling Ling, assuring her it was all for her. Again, with the perfunctory invitation to dinner.  Ling Ling passed the bags back to the man, who quickly pressed them back. She eventually won the tug-o-war, and walked off, astonished.

My expat friend, for his part, knows he’s out-manned and out-gunned: he’s got no where the ways and means to outbid the newly monied and morally challenged Chinese competition. All’s he got, pretty much, is love. Which may not be enough in these times.

Post to Twitter

Technorati Tags: ,

Paper Tiger Mother

February 21st, 2011

I sat through most of a segment on the BBC’s Hard Talk during a conversation with the Tigger Mother last week. It was an excruciating experience for me. There’s only one other Yale law professor I’ve ever seen in the spotlight who vacilated and qualified their statements as much as she in the five minute segment.

My reading is she is of the school “Spare the rod; spoil the child,” which certainly describes the upbringing of children in a great many immigrant and minority households in the States. Also common among immigrants is a eulogizing of the Old Country and the “ways of our ancestors.” Even Taiwanese and Hong Kong people agree they can be “more Chinese than the Mainland Chinese”. I just wish this Mother could return to her mother’s land and see how cartoonish obeisance to fluid mythologies like Confucianism is creating sad and tragic family dramas of a frequency and drama that shock me to my core.

When I read the Annalects back in University, I had no idea just how many schools and characters have revised and adapted the few fragments of his teachings there really were. Now, Tigger Mama has added her own contortions, which haven’t helped cross-cultural understanding between Chinese and Westerners one wit. All this vacillation and qualification confuses matters.

Which makes me wonder about those Yale law professors. Are they all as equivocating as Tigger Mama and the President of the United States?

Post to Twitter

You Have Been Mislead

February 10th, 2011

A statement a Chinese plant manager of a Western factory made during a meeting with Western managers of the company became a light-hearted joke later in the evening over hot pot. During the afternoon meeting one of the Western managers had made a point about the central government’s internet censorship policy. The plant manager replied, without missing a beat, “You have been mislead by the foreign press”. The Western manager paused a moment, off-balanced by the remark. He had only been in China a couple days, and so was not used to the bluntness with which Chinese can address friends and coworkers. The Western GM, a long-time resident of China, laughed. The plant manager was serious; however, he quickly lightened up because of his travels outside the country and his work over the years with Western colleagues.

I have recently been struck by the number of such conversations with well-educated Chinese who may work in Western companies and who have traveled outside the country. Most of the Chinese professionals with whom I’ve talked are in their mid-thirties. They are stunningly conservative about the government and issues such as censorship (“Well, the government wants to protect the people from the bullying of foreign countries,” one manager told me).

The conversations remind of the first time I met an elderly Communist Party member, a professor at the Foreign Language University in Beijing. Tears came to her eyes as she recalled how the Communist Party in 1950 had realized she was a gifted student and whisked her from the dire conditions of the countryside of Tianjin to the hallowed halls of the Beijing university system for the highest level education. Years later, she would be sent to the countryside for something she had written during the 100 Flowers Blooming period, a perceived slight of Party leadership; and then again during the Cultural Revolution.

Today’s Chinese young professionals seem just as much attached to the country’s leadership as past generations – despite hardships – no matter how progressive they may seem at work.

Post to Twitter

Technorati Tags: , , , ,

China Hosers

February 9th, 2011

It looks like food prices will skyrocket even further here in China, with Xinhua announcing the worst drought to strike Shandong province in 200 years. Shandong is a part of China’s wheat basket, in the northeast of China.

While south China has just over half the population of the country, it has nearly 85-percent of the nation’s water resources. The south supports 40-percent of China’s croplands. The north, by contrast, has only about 15% of the country’s water, 55-percent of its population and 60-percent of its cropland. For instance, the citizens of the sea port city of Tianjin, which faces the Korean peninsula, can only provide its population of 10 million with one-tenth the amount of water of the average citizen in the world.

Modernization has only exacerbated the historically drought-like conditions in the north: industrialization, certainly; but agricultural, overwhelmingly. The low price of water connected with the lack of education of farmers in sustainability and the government’s lack of regulation and enforcement of irrigation has made a bad situation even worse, very quickly (see photo).

Post to Twitter

Technorati Tags: , , ,

The Abortion of Possibilities

January 24th, 2011

“Do you know of some place in Suzhou where I can get a fake certificate that says I’ve had a surgery that will keep me from having another child?” my read the text message to me. A schoolmate from her hometown in Anhui province had had a child a couple months before. My wife told me, “The clinic in the town calls her every day to ask if she’s had the surgery.”

“How did they know she had a child?” I asked, forgetting that sometimes this is China, and that pregnancy counts to the government.

“She had to register the baby’s hukou [residence permit]“, she told me. She looked at me as though I was a dull child.

“And what happens if she doesn’t get the surgery? I mean, can’t they just wait a bit? She just had the first child. It’s not as though she’s going to go out and get pregnant again.”

“They don’t want to wait until she gets pregnant again,” she said. “They want it done now; either in Suzhou or in their town. Then, she has to show a formal certificate that’s it’s really been done.”

Several days went by and the classmate called my wife again. She asked, “Can you be a doctor and tell them I had the surgery?” My wife entertained the idea for a short time, I think, until a friend reminded her that the abortion police in Anhui and linked by computer to the abortion police in Suzhou. My wife said, “The police in the Anhui hometown will just ring up the police in Suzhou. If the Suzhou police find she hasn’t really had the surgery, they’ll grab her themselves and force her to have the surgery; in which case, it will give her husband big problems, since he works for the government.”

Eventually, the classmate relented, and told the Anhui authorities she would take care of the surgery that week.

Such is the abortion of possibilities in an over-populated land.

Post to Twitter

More Confusionism

January 21st, 2011

While doing some research on my next writing project I came across an old blog post from 2007, a conversation with a well-educated Chinese friend who lives and works in Shanghai, though she is originally from Sichuan province. I found the blog post re-enlightening in light of the narrative fiction making the rounds about the relationship between Confucian subservience and educational wherewithal around the world:

A casual lunch with an old Chinese friend at a Cantonese restaurant in Shanghai started me to thinking more deeply about China and innovation. Susan (not her real name) works for a consultancy that is concentrating on developing infrastructure for companies focusing on IT-related fields, Business Process Outsourcing (BPO) and R&D. She took her undergraduate study in Scandanavia, and her masters in Economics in the UK. She is a bright, thoughtful person who seems to actually think about things outside the purview of her immediate responsibilities in marketing.

Over a meal of rice-and-seafood soup, Chinese brocolli, pork wrapped in rice flour envelopes, and chopped green beans cured in vinegar and stir fried with pork and chili peppers we talked about her work and travels throughout China to cities that are driving hard to become information hubs. The topic of innovation came up when she mentioned.“The Chinese returnees from Western countries – especially America – are not optimistic about innovation in China.” Many returnees with advanced technical degrees from other countries receive subidies from the national- and local-governments to locate in China and carry on their R&D activities and indulge in their entrepreneurial instincts.

Surprised to hear her say it so plainly, as a Chinese herself, I asked why. She explained, “One Chinese PhD in semiconductor research returned to Hangzhou. He is having a very difficult time adjusting. He said the Chinese cannot think for themselves.” I noted that she herself is a returnee and that she seems to be managing quite well. She responded, “Though I was away for six years studying, I still returned in my twenties. It’s easier for me adjust. I’m more Chinese than he is.”

I pressed her on just why she thought China is not primed for innovation. She insisted one of the main reasons was the education system. “If you put a Chinese, a Japanese and an American in a room and give them a math test, the Chinese will easily come out number one. But if you give them all a problem to solve that requires using different ways of thinking and some creativity, the Chinese will come in last. The Chinese education system stresses theory over practice. Students don’t have any experience in what they study.”

Some may argue – as I have in previous articles – that China is at the same point in its innovation curve as Japan was in the early sixties. At that time, Japanese goods were the butt of many jokes in America, because the quality of the goods was so poor. Indeed, I remember a transistor radio I had as a kid in the sixties disintegrating in my hands, copper wires all exposed outside the cracked eggshell-thin plastic casing. However, Japan had already had a long history of innovation, Western-style, from the Meiji Resoration through World War II. Much of the effort, however, was driven by militarists that saw themselves as the rightful lords of all of Asia. One of the most deadly innovations of the time was the Japanese Zero, a fighter aircraft that was faster and more maneuverable than anything the Allies had for several years into the war. Since the mid-eighties, the Japanese have filed more patents than anyone bar the United States.

Susan also brought up a point I had never considered before, nor that I had heard anyone previously proffer: the way parents bring up their children in China is different from the way parents do in Japan and South Korea. “Chinese parents,” she said, “do not give their children much choice in what they should study. The most important thing is studying the for examinations. The parents put a lot of pressure on careers that will bring in money the child can use to support the rest of the family.” This is an important point in light of the increasing burden a single child will have to carry as the the new century develops. It is called the 1-2-4 problem: one child will have to support two parents and four grandparents. The strain will become greater on the children as in twenty years or so the elderly population explodes. Very few children will have the luxury then of saying to their parents, “I want to be a poet.” They will have to early on become bread-winners to support a stable of relatives. Creativity will be a fleeting consideration.

Finally, Susan offered, the Chinese legal system does not protect innovation. If a Chinese invents something new, it will be copied without remuneration and without shame within months. Westerners have only just been learning this over the last few years. Chinese have known this for millenia. Without proper protections, Chinese will be loathe to create something new and not be able to reap the full benefits of their efforts and contribution.

It seemed the whole time we had been chatting that I had been the only one eating. Susan had eaten some of her preferred dishes – the string beans and the soup – but had otherwise devoted herself to the conversation.

Afterword: Since that conversation three years ago I have met up with Susan a couple more times. She is a mother now, still working in Shanghai, unable to see her husband and child  but once a month at most, since his job is in Sichuan (her parents take care of the baby). Her parents are forcing her to make a change out of commercial real estate marketing into the finance sector. “All my friends are in finance,’ she told me last time we met, “and they all make more money than I do, my parents remind me all the time. ‘Besides,’ they’re always saying, ‘you have a child now, you have to think about her.’” She smiled, “So, the next time we meet, I’ll probably be in finance!”

Post to Twitter

Confusion Education System

January 19th, 2011

Nicholas Kristof extols the virtues of China’s schools in a recent New York Times column in only a way someone who hasn’t lived here at all or for a very long time or only in a big city (he lived in Beijing) does. If a rote , follow-the-leader, non-inquisitive approach to learning is what it takes to show the world you can do well on math(s) tests, and therefore are “smart” and so worthy to contribute to society and to your fellow man, then I suppose Shanghai does indeed deserve its newly won mantle.

What Kristof calls a “passion for learning” is simply the intense pressure of testing for a university seat against a thousand other students. It is parental pressure that is driving these kids to the books and to distraction. Kristof makes no note of the suicide rate of students under intense pressure to perform well on their tests; nor of the rampant cheating and plagiarism that are sewn into the fabric of the school system like those irritating tags on the inside-back of shirts.

And the whole thing about “Confucian reverence for education” is actually the Confucian reverence for hierarchy and for not questioning authority, which is why what had been a dead philosophy for hundreds of years was revived by the Han Dynasty emperors and their minions to bring supplicants into line; and why subsequent dynasties maintained the mythology: it’s a handy way to keep the masses in line. And China – nay, Asia – has a lot of masses.

However messy the American system might be, I bet the creativity and initiative of one American high school student against a hundred Chinese robot-pupils. If anything, the Chinese education system and the parents that support it kill the passion in kids.

The world has enough conformists. Manufacturing more followers is not going to make the world a better place. No matter how well they score on math quizzes.

Post to Twitter

Technorati Tags: , ,

I Want a (Fake) Divorce

January 17th, 2011

A Chinese friend who manages a British company in Shanghai recently told me of the lengths to which some people will go in China to get round restrictions on a single family owning more than one property in a city. A girlfriend of hers wants to buy an expensive villa in the Shanghai suburbs. She already owns a flat in Shanghai, though, and lives in Guangzhou, where she owns another flat. The national government has been trying to ease speculation in the property market by restricting families to purchase of a single residence, a place where they actually live. The girlfriend, though, really wants the villa.

So, she’s going to divorce her husband.

“Really!?” I exclaimed.

My friend looked at me as though I was just born yesterday. She sighed, then explained, “No, not really. It’s fake. She just gives the bank a divorce certificate. You know,” she paused, “this is China.”

Post to Twitter

Rss Feed Facebook button Technorati button Reddit button Linkedin button Delicious button Digg button Flickr button Stumbleupon button Newsvine button
Follow me