FosteringC Businessh i and n Cultural a HarmonyIn between s i gChina h and the t U.S. VOL. 10 NO. 3 www.chinainsight.info MARCH 2011 Chinese Heritage Foundation Embrace China Friends celebrates Chinese New Year clock, and sat in rapt attention as Stephen Mao described the hungry beast that was let out of its jail on every New Year’s Eve to devour everyone in sight. Thus was born the Celebrations custom of congratulating everyone, ‘gong xi, gong xi’, on New Year’s Day: for hav- ing survived the beast! With their fists thus cupped in the traditional Chinese manner, the children then lined up to offer Stephen and Ming Tchou ‘gong xi’. In return they each received a hong bao stuffed with a lucky penny. Now no harm will come their way until the next New Year’s Eve. The Calligraphy Team then headed across town to Midtown Global Market on February 4 to anchor its Chinese New Year celebration. Many young families, often First Graders at Normandale French Immersion School wishing everyone ‘gong xi, gong xi’ with grandparents in tow, came to have their olunteers of the Calligraphy presented four talks on Chinese New Year names translated or their fortunes told. How Team of Chinese Heritage traditions and myths to over 200 first graders should the fortuneteller answer an earnest Book Review Foundation Friends were busy in Edina schools, including the Normandale golden-haired little boy’s query on whom this year, answering calls for French Immersion School. he would marry? Or what to say when V his parents drew a josh stick that painted their expertise from around the metropoli- These vivacious kids clamored to name tan area. Over two days in February they the 12 animals that made up the Chinese doom? The answers were and will remain New Year continues on Page 7 Minnesota exports continue rebound in the third quarter s the national economy slowly ranked 16th) and Chile (up 142 percent to ment (up US$150 million to US$575 mil- recovers, Minnesota’s manufac- US$30 million, ranked 23rd) contributed the lion) contributed the most to state export Atured exports continue to grow most to this growth. growth during this period. Countries such strongly, for the third consecutive quarter as China, Taiwan and Germany led export Most Markets Among Top 10 Show this year. State exports totaled US$4.4 bil- Strong Growth Trends gains for machinery products while Can- lion in the third quarter of 2010, showing an ada’s increased demand for transportation increase of 17 percent (or US$649 million) equipment (up US$102 million to US$346 over the third quarter of 2009. U.S. exports million) contributed much of that industry’s grew 19 percent. export growth. • Canada, China, Thailand and Japan were among the many countries that boosted the state’s exports of computer and electron- ics products. • Despite the overall decline in exports of miscellaneous (including medical) prod- ucts (down 13 percent to US$410 million), due primarily to the decline in shipments to Ireland, other markets such as Germany (up 30 percent to US$26 million), China (up 19 In contrast to the somber trends of 2009, percent to US$38 million) and Belgium (up • Canada (up US$262 million) and China Minnesota exports have gained 18 percent 10 percent to US$50 million) performed (up US$134 million) displayed the largest over the year-to-date (first nine months of strongly. export gains. Thailand, Germany, Mexico, 2010, compared to the same period of 2009), Taiwan, Japan and Brazil were other coun- while U.S. exports have grown 21 percent. A Wide Diversity of Products Support tries among the state’s Top 20 markets that Export Growth Strong Regional Performances in Asia increased exports by more than US$30 mil- • China performed strongly across mul- and the Americas lion during this period. tiple leading growth areas of machinery • North America (US$1.5 billion) and •Exports to Ireland dropped by about products, which included office machine ALSO IN THIS ISSUE Asia (US$1.4 billion) each accounted for half to US$97 million, dropping the country parts (up 39 percent to US$143 million, Commentary...... 2 & 3 one-third of Minnesota manufactured ex- to the state’s 14th-largest market, based on other leading market: Thailand), liquid- and Events...... 4, 5 & 15 ports in the third quarter of 2010. These persistent struggling exports of miscella- sand-dispersing machinery (up 33 percent Finance...... 6 neous (mainly medical) goods. regions were leading sources of export to US$93 million, other leading market: Chinese New year...... 7 - 9 growth, each increasing 25 percent since Belgium), liquid pumping machinery (up Economy...... 11 & 11 Most Manufacturing Industries Experi- 92 percent to US$38 million) and machin- the third quarter of 2009. ence Strong Export Growth Business...... 12 & 13 • State exports to Central and South ery for producing semiconductors (up 123 • Machinery (up US$183 million to A Passage to China...... 16 America jumped 45 percent to US$223 mil- percent to US$33 million, other leading US$768 million) and transportation equip- lion. Brazil (up 56 percent to US$91 million, Quarterly continues on Page 11 PAGE 2 > MARCH 2011 commentary www.chinainsight.info Applying for China visas. It’s a Ch i n a In s i g h t Publisher: Gregory J. Hugh compliance issue [email protected] Op-Ed Commentary by Chris Devonshire-Ellis Feb. 10 – The issue over obtaining China in an office or factory in China you must --Copies of the health certificate issued Editor: visas is a perennial question, and China apply for this status. If you do not have a by the Entry-Exit Inspection and Quarantine Jennifer Nordin itself is not always consistent in regard to residency permit and you are caught you Authority* [email protected] the application guidelines for foreigners may face deportation, the most serious of- --Copies of the Industrial and Commer- wishing to travel to the country on business. fense justifying this being the evasion of cial Business License (duplicate)/Registra- Manager of Operations/ In particular, for businessmen, there is often personal income tax. tion or any other governmental instrument Circulation: confusion over which of the two pertinent It should be noted that spousal visas and of ratification Richard He --Reasons for employment visa types should be applied for. student visas do not make the holder eligible [email protected] Here we’ll look at the most common for employment in China. Additionally, if a --Credentials required for job visa types and their usage. In particular, work visa holder changes company, the visa --Curriculum vitae of foreigner to be we will go into detail about work visas and must also be reapplied for in the name of the employed Marketing Director: the related process of obtaining a residency new employer. China’s provinces also from --Letter of intention for employment Will Ahern permit. time to time release guidelines applied on --Criminal record check** [email protected] top of these basic key points. These include * This can vary from city to city and Tourist visa satisfying professional qualifications and even nationality to nationality; some na- Production Editor: These should only be used for the stated experience and not possessing a criminal tionalities do not need this certificate prior Dawn Murphy purpose – tourism. Usually an itinerary will record. Visa issuance during certain occa- to obtaining their entry visa. [email protected] need to be provided, occasionally proof of sions or periods of unrest in China can also **This is a relatively new requirement hotel bookings and even guided tour opera- that is not yet implemented in every city in be curtailed. Artist/Intern: tors in China. The correct issuance of work visas is a China. We suspect that in the near future, it Lauren Hugh It is unwise for businesspeople visiting bureaucratic, yet variable matter nationally. will become a standard requirement. China to be on tourist visas – if engaging in However, in order to first assess whether business activities you breach the terms of your country has a double tax treaty with Notification for Application of Staff Writers: the visa issuance. Sharp-eyed officials can Employment Visa and Residence Greg Hugh China or not, please see our firm’s (com- Permit deport you for breach of terms of stay. [email protected] plimentary) guide to this subject. Following The Entry-Exit Administration of the the determination of the length of stay thus Public Security Bureau in the city where Business visa permitted, regional variations over visa issu- Albert Leung An invitation from a registered company a foreigner wishes to work and reside ance need to be taken into consideration. must issue this notification before an Alien [email protected] or business in China is required (occasional- Applying for (normally one year) em- ly our firm provides this to clients) together Employment Permit will be issued. The ployment and residence documentation in following documentation must be submitted Jennifer Nordin with an itinerary. It permits businessmen to China can be roughly broken down into hold meetings, travel to factories and so on. by the employer: [email protected] four steps: --Employment license It does not allow work – i.e. paid work – (i) Alien Employment License applica- while in China. These are usually restricted --Valid passport of the applicant (cop- Mike Xiong tion ies of main pages and valid visa shall be to double entries of 30 days each stay at the (ii) Employment Visa and Residence [email protected] present time. attached) Permit Notification application --Application for Residence Qualifica- Work visa (iii) Alien Employment Permit applica- tions of Working Foreigners in China (with tion About Ch i n a In s i g h t Work visas are required, fairly obvious- photos) Ch i n a In s i g h t is a monthly English (iv) Residence Permit application --Two copies of the Industrial and Com- ly, if one intends to work in China. However, language newspaper fostering business mercial Business License (duplicate) the exact details of work visa requirements Alien Employment License and cultural harmony between China --Temporary Accommodation Registra- vary to some extent upon nationality, which The Alien Employment License is a and the U.S. tion off the applicant (from local police sta- is where some confusion arises. Nationals of document which basically states that a tion or hotel where applicant is residing) countries with a double tax treaty agreement foreigner is allowed to work in China. It Ch i n a In s i g h t is a Member of The with China can stay for a period of 183 days Minnesota Chapter of the Asian is needed to apply for an Employment (Z) Alien Employment Permit before their stay is considered “residency” Visa Invitation Letter from the Ministry of American Journalists Association and the need to apply for a work permit The Alien Employment Permit allows (AAJA). Commerce. The Employment (Z) Visa can foreigners to work legally in China. It is usu- arises. For nationals of countries without later be converted into an employment and such agreements, this free period is reduced ally valid for one year and must be renewed Submissions & residence permit. While in the past it was annually. The following documentation to 90 days. However, please note that if you common for F visas to be converted into em- Correspondence commence paid work in China you must ob- must be submitted by the employer: ployment and residence permits, currently Ch i n a In s i g h t welcomes guest tain a work visa from the beginning of your --Employment License most cities require an applicant to obtain --Notification for Application of Em- articles and mail for the Letters to employment and not use double tax guide- their Z Visa from their country of residence lines. The loophole as regards upgrading ployment Visa and Residence Permit the Editor column. Correspondence (their home nation or country where they --Copies of the labor contract or cer- should be addressed to: business visas to work visas should only be possess legal residency). used in legitimate cases where an individual tificate of appointment (those who have The following documentation must be Ch i n a n s i g h t has not previously worked in China. a clear and defined position specified on Editor, I submitted: 6520 South Bay Drive Work visas automatically trigger resi- the Business License/Registration or other --Application for Employment Permit Minnetrista, MN 55331 dency requirements (i.e. a resident permit, governmental instrument of ratification may for Foreigners be exempt) Tel: 952-472-4757 described below), as well as registration --Valid passport Fax: 952 472-6665 Visas continues on Page 10 with the tax bureau. If you are working [email protected]

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Copyright 2010 Ch i n a In s i g h t , Inc. All Rights Reserved. www.chinainsight.info commentary MARCH 2011 > PAGE 3 Taking China’s risks seriously By Gerard Lyons, China Daily of poverty. It is possible that the U.S. wrong. policy will work in terms of ensur- Any slowdown in growth would prob- ing growth, if not in solving all the ably be temporary - a strong sign that the problems of the country. business cycle exists in China. Besides, All of this highlights the need while the economic trend is up, there will for Asian policymakers to follow be setbacks on the way. the [United States] - not by copying These factors will provide a buying U.S. policy, but by setting monetary opportunity, not a reason to doubt the policy to suit their domestic needs. economy’s rise. China’s growth is for real. The challenge is especially daunting It is not a bubble economy. It is an economy for China. prone to bubbles. And there is a big differ- The longer it takes China to ence between the two. tighten its policy, the greater its In recent years, markets have discounted eventual problem. The Chinese the bad news in the [United States] and final- authorities imposed a loan quota ly taken seriously the flaws in the eurozone. last year. But concerns over growth The near-term risks facing China, like many Feb. 15 - A static watch gives the right prevented them from making the quota tight countries in Asia, need to be taken seriously. [United States] had a Strategic Economic time twice a day. But it is of no use for the enough. This year, however, there is no rea- Yet they also need to be kept in context, Dialogue with China. Obama turned it into a rest of the time. This fact is worth keeping son to hold back because growth looks set because they are unlikely to alter the longer- Strategic and Economic Dialogue. This was in mind when looking at China’s economy to be strong, boosted by the 12th Five-Year term positive outlook for growth. significant. It emphasized the twin aspects this year. For much of the last decade some Plan (2011-2015). According to Standard Chartered Bank, of the relationship. But because the [United people have predicted imminent doom and China’s policy tools, no doubt, worked the world economy is in a super-cycle: a States] recovery has been disappointing, the gloom for China. But their predictions are well during the financial global crisis, but sustained period of high economic growth focus has been less on the “strategic” and like reading the time by a static watch. there are risks now. lasting a generation or more. The global more on the “economic” dimension of their China has continued to grow from First, it has become harder to control the economy is twice the size it was a decade relationship. Although the [United States] strength to strength. Its economy has soared. size of China’s still fast-growing economy ago and has already reached above its pre- has a larger economy, the relationship in- Its influence has grown. And all this has ben- and its private sector. recession peak. creasingly resembles one of equals. efited Asia as well as the rest of the world. Second, there is a need to rebalance the A central feature of this super-cycle is The economic importance of China for The question then is: Is 2011 the year economy from investment to consumption. the shift in the balance of economic and the world economy has not been greater in when problems in China will emerge? Is this And although investment always sounds financial power from the West to the East, modern times. It is vital for the world, Asia the time when the static watch is right? good, it is now so high in relation to GDP led by China. This was highlighted at the and China that Beijing addresses its inflation China’s risks are different from those that not all of it may be worthwhile. recent summit between President Hu Jin- challenges now. This is no time to wait. of the West, where debt problems persist. Third, China’s vulnerability arises from tao and U.S. President Barack Obama in The author is chief economist and group Across Asia, inflationary pressures are its underdeveloped financial sector. Despite Washington. head of global research at Standard Char- rising and monetary policy needs to be rising incomes, the options for investing Soon after becoming president, Obama tered Bank.  tightened. household savings are limited: low interest- changed the relationship with China. Un- Reprinted by permission of China Daily The challenge for China is that in recent bearing bank accounts; equities, where der his predecessor, George W. Bush, the (chinadaily.com.cn). years it has tied itself too closely to the governance concerns persist; or real estate United States’ monetary policy. In doing so, where prices are already sky-high. This it has kept interest rates lower than neces- makes the economy prone to bubbles. Yo-Yo Ma, Committee of 100 member, sary and its currency weak. Resolving these China needs to avoid the lethal combina- issues is vital and China has already started tion of cheap money, one-way expectations awarded 2010 Presidential Medal of doing that. and leverage. A few years ago the talk in the The [United States] and China both need [United States] was about the “Greenspan Freedom put”: Interest rates kept low to support the to set monetary and fiscal policies to suit C-100 Gov- included President George H.W. Bush, War- equity market. China can’t fall into the same their domestic needs. The [United States] ernor and cellist ren Buffet, and Maya Angelou. Ma, who trap with its property market. is doing this. Facing deflation, the Federal Yo-Yo Ma won played at Obama’s inauguration in 2009, All this raises the risk of a near-term Reserve (Fed) introduced a second round of the nation’s high- was celebrated as “one of our nation’s most setback in China. Rising food prices and quantitative easing, or QE2, last year despite est civilian honor acclaimed and respected artists. His music wages add to the sense of urgency. the criticism it evoked from other countries. on February 15. has bound us together and captured our The authorities do not want to derail The U.S. administration has followed it up President Barack imagination, and the United States proudly the economy. But any setback that makes with a huge fiscal boost. The expected result: Obama gave Ma honors this prolific cellist and ambassador growth suffer will have global ramifications, The U.S. economy will grow strongly this and 12 other ex- for the arts.” hitting commodities and trade, among oth- year, particularly in the first half. ceptional people Ma founded the Committee of 100 with ers. Of course, if growth suffers a setback, Although the stimulus has reignited fears the Presidential I.M. Pei and several other distinguished the static watch doomsayers will claim over the U.S. government’s debt, the reality Medal of Freedom at a ceremony held in Chinese Americans in 1989 to give Chinese they were right and there would probably is that the [United States] had no choice. A the East Room of the White House. Other Americans a strong voice in U.S.-China be much speculation over the existence of staggering 43 million Americans get food 2010 Medal of Freedom winners present relations and Asian American affairs. bubble in China’s economy. That would be stamps today, a clear indication of the scale In presenting the award, the President said, “Yo-Yo Ma has been a concert cellist since the age of five. Despite being a late n s i g h t bloomer—(laughter)—he went on to re- Ch i n a In s i g h t I cord over 75 albums and win 16 Grammys SUBSCRIPTION ORDER FORM Guaranteed —which means I’m only 14 behind him. (Laughter.) While Yo-Yo could have just 10 issues - $24 for a domestic subscription and $40 for settled for being the world’s greatest cellist, international. YES you could run to the he’s said that even greater than his passion for music is his passion for people. And h i n a n s i g h t Please make check payable to C I , 6520 South store and pick up a copy, but I can testify to this. There are few people Bay Drive, Minnetrista, MN 55331 did you know you can have you’ll meet with just the exuberance and Name______Ch i n a In s i g h t delivered directly joy that Yo-Yo possesses. And so he’s spent to your mailbox? much of his life traveling the world, training Address______and mentoring thousands of students, from City/State/Zip______A subscription costs a mere Lebanon and Korea to the Iraqi National Phone______$24 and brings a full year (10 Symphony Orchestra. A member of my issues) of new understand- Committee on the Arts and the Humanities, Email______he has been named a Messenger of Peace by ing about today’s China, from Company______the United Nations, and we understand why. language to business oppor- In his words, ‘When we enlarge our view of Title______tunities. the world, we deepen our understanding of our own lives.’” PAGE 4 > MARCH 2011 events www.chinainsight.info Connect, Innovate, Lead: The National Chinese Language Conference This April, join hundreds of Chinese Milton Chen, Senior Fellow, The George language teachers, school administrators, Lucas Educational Foundation; and Carlos and policymakers who are actively engaged Garcia, Superintendent of the San Francisco in teaching and promoting Chinese language Unified School District. as a bridge of communication and exchange This year’s conference program features between U.S. students and China. The many breakout sessions plus roundtable 952-881-1810 National Chinese Language Conference is forums for teachers and administrators, dedicated to advancing Chinese language covering: curriculum, instruction, and as- education, fostering dialogue, and ensuring sessment; technology resources and inte- wide-scale success. In 2011, Asia Society gration; teacher development and support; and the College Board are collaborating with global and local partnerships; China across the Mandarin Institute at CAIS to organize the curriculum; funding and resources; the premier conference in the field. research and Chinese in higher education; In attendance will be: Karen Cator, and quality programs and models. Director of the Office of Educational Tech- The National Chinese Language Confer- nology, U.S. Department of Education; ence will be held April 14 - 16, 2011 at the Tu Weiming, Director of the Institute for Hilton, San Francisco Union Square. To Advanced Humanistic Studies at Peking register, visit http://sites.asiasociety.org/ University, and Research Professor at Har- nclc2011/conference/register. vard University;

Expanding Our Horizons: Seventh International Conference on Language Teacher Education Expanding Our Horizons: Seventh Inter- The conference program will include national Conference on Language Teacher over 100 papers, symposia, and discussion Education will be held May 19–21, 2011 sessions on language teacher education from at the Radisson University Hotel in Min- a wide range of contexts and perspectives. neapolis. The program also includes an extensive The mission of the conference is to line-up of morning and afternoon pre- address the education of teachers of all lan- conference workshops including: Program guages, at all instructional and institutional Evaluation for Language Instructors; A levels, and in all the many national and inter- Long-Term Approach to Foreign Language national contexts in which this takes place, TA Development, Language Immersion including: English as a Second or Foreign Education: Is it Really Any Different?, Garlic: Is the price Language (ESL/EFL) instruction, foreign/ Preparing Teachers to Understand and Act modern/world language teaching, bilingual Critically Upon Language Policies, Infusing education, immersion education,indigenous Technology into Language Teacher Educa- right? and minority language education, and tion, Professional Development for Teach- the teaching of less commonly taught ing Adult Emergent Readers, Exploring By Elizabeth Greenberg, Staff Writer languages. The conference aims to bring New Directions in the Preparation of Begin- together teachers and educators from these ning Foreign Language Teachers, Critical In mid-January of this year, authorities many contexts to discuss and share research, Multiliteracies: Engaging Identities in L2 seized 144 tons of Chinese garlic that had theory, and best practices and to initiate and Classrooms, Exploring Learner Language been smuggled into Poland disguised as sustain meaningful professional dialogue in Language Teacher Education, Preparing onions. across languages, levels, and settings. The Leaders in the Arabic Language Teaching If that sounds like a joke to you, you’ll conference will focus on the following four Community, Culture as the Core in Chinese probably be even more surprised to know broad themes: Teacher Education, and Technology Options that there have been several similar incidents • The Knowledge Base of Language for Foreign Language Teachers. throughout the European Union (EU) over Teacher Education, The early bird registration deadline is the last two years. Customs duties on garlic • Social, Cultural, and Political Contexts April 1, 2011. For more information and are significantly higher than those on onions: an astonishing 605 percent. Garlic outper- of Language Teacher Education, to register, visit http://www.carla.umn.edu/ the 144 tons of Chinese garlic declared as formed gold and stocks as an asset, earned • Collaborations in Language Teacher conferences/lte2011/  onions would have cost the EU budget people enough money to buy cars and hous- Education, and 180,000 Euro, or $247,374 USD. When you es, and even minted a few new millionaires. • Processes of Language Teacher Edu- think of Chinese goods, you probably think The sudden increase in garlic prices caused cation of cheap electronics, not garlic, but China ripples throughout the world, increasing produces over 77% of the world’s garlic the cost of everything from spice mixes to supply. Garlic is, in fact, one of China’s most domestic U.S. garlic and also increasing in- lucrative export goods. terest in garlic speculation. Analysts called But while garlic has been a lucrative the phenomenon a ‘garlic bubble.’ Ch i n a In s i g h t is seeking export good for a long while, its sudden The same speculation that caused a value within China is relatively new. In the fortuitous rise in garlic prices within China Production Editor midst of the H1N1 panic, rumors began helped spark a less positive trend. In 2011, Must be passionate about our mission: in addition to being suc- to circulate that garlic could protect you the cost of all food in China began to rise due cess-oriented, self-motivated, resourceful, creative, disciplined and against H1N1. H1N1 is by no means the to a combination of a severe wheat drought community-minded. first disease garlic has been claimed to help and increased speculation. But while the with—priests of the middle ages used garlic increasing prices are alarming, the Chinese Responsibilities include layout and design of 10 issues per year to ward off bubonic plague and in more government is currently implementing using Adobe InDesign and Photoshop, some proofreadiing, must be recent history, Manto Tshabalala-Msimang measures to control the increasing prices Internet savvy. became infamous for stating that a diet of and tamp down those prices’ effect on the lemon, beetroot, and garlic could cure AIDS. overall inflation rate. But between the H1N1-prevention rumor The price of garlic can influence so This is a part-time, volunteer position. and a garlic shortage in 2008, the cost of much—crime, international food prices, garlic began to rise dramatically. domestic food prices, inflation. Maybe the Contact Greg Hugh at 952-472-4757 or From March 2009 and February 2010, amount of time we spend reading about Chi- [email protected] the price of garlic within China multiplied nese auto parts and toys is the real joke.  www.chinainsight.info events MARCH 2011 > PAGE 5 MN Sunshine Dance enjoys success with performances in China and local venues MN Sunshine Dance has a lot to cel- which not only highlight their various dance cilities, taking the Human-powered Tricycle indicate the journey on horseback of the ebrate these days, not only just finished skills, but also showcase the American Truck, eating authentic Chinese food, and soul). MN Sunshine Dance Artistic Direc- a successful guest appearance with 28 culture. To this end, the Preparatory Com- most importantly making Chinese friends tor/Choreographer Iny Mai Vang adapts dancers at the O’Shaughnessy Auditorium mittee of Shenzhen 2011 World University through body languages. the tradition and incorporates with grace- with “China the Beautiful” show, but also also invited the Minnesota delegation to ful dance movements and enhances with completed the China Performance Tour last the famous Shenzhen Civic Center for the group formations to honor the Qeej. This August, 2010. Opening of World University Games with debut performance not only becoming the MN Sunshine Dance is a traditional performances, balloon releasing, and sign- highlight of the “China, the Beautiful” Hmong dance troupe, has long history of ing the pledge activities. MN delegation’s show, but also has successfully reflected the success under the Artistic Director Iny Mai performance has received high remarks cross-cultural experience these girls had, Vang’s leadership, with tones of honors, form audience, a number of media events and a Vision – honoring their own cultural including multi-years’ 1st Place of Dance and interviews with the delegation, includ- heritage throughout the world - which they Competitions in the Hmong New Years. ing, the only English-language newspaper would carry on forever. It all starts with few talented Hmong girls in Shenzhen - Shenzhen Daily, to the local The Minnesota Sunshine Group will be practicing at the home basement around business journal. MN Delegation performing “Hmong Water appearing at the following events: 2000, to now a 52 members dance troupe In Shenzhen, the Minnesota delegation Bucket” dance in Shenzhen Civic Center, ● March 6th: Asian Media Access’ with 4 levels of classes and a touring also spent time to teach Chinese Youth China Lunar New Year Gala at Varsity Theater, program. Reflecting the success, Artistic English, hosted Halloween party, and made Minneapolis, noon – 3pm Director Mai has made a humble remake; presentations about MN, along with others The next day, the Confucius Six Arts ● May 1st: Pan Asian Arts Festival, “Our success comes from our dedicated interaction with local citizens, such as learn- Museum hosted the Welcoming Ceremony at Landmark Center, St Paul from noon young dancers, and parents. Their enthu- ing Chinese fan dance and tai chi. The girls with the ancient “Spring and Autumn Pe- -5pm siasm for dance has inspired me to create, also had fun at one-day Hong Kong tour, riod” costume, welcomed the young people ● May 28 - 29: Pan Asian Dance Fes- choreograph and want to bring the best visiting the Star Avenue, taking pictures to the museum. In the Six Arts Museum, tival, at Burnsville Performing Arts Center, opportunities to these youth.” with Jackie Chan’s hand print, feeling the the youth experienced those arts - chess, Burnsville (for detailed info, please visit breeze blowing in from Victoria Bay, win- music, writing, painting, arching, and horse www.panasisanartsalliance.) dow shopping at famous brand-name stores, riding - as defined by the Confucius - the Asian Media Access will host its 6th and at night, everyone was impressed by a most important skills for adults. Before Annual Lunar New Year Celebration on stunning laser show at the Bay area. the end of visit, all youth were awarded the Sunday, March 6, 2011, from 12:30 p.m On July 25, the Minnesota delegation ‘Certificate’, and put together the ancient to 3:00 p.m. (program starts at 1 p.m.) at concluded the exchange activities in Shen- style, blue Graduation Gown with picture the beautiful Varsity Theater (Dinkytown), zhen. The most difficult part was saying taken as the perfect conclusion for such 1308 - 4th Street, SE., Minneapolis 55414. good-bye to other delegation friends, and cultural exchange. Come ring in the Year of the Rabbit at volunteers, girls were busy in exchange Later the Minnesota delegation left Ji- AMA’s Lunar New Year Celebration com- e-mail, QQ addresses to take advantage nan, headed to the capital of China – Beijing plete with a special screening of AMA’s Members of MN Delegation affront of of modern technology to maintain the for a relax sight seeing tour. Minnesota del- Collection of Award-winning Asian Ads, Forbidden City in Beijing, China friendship. Later the Minnesota delega- egation visited the famous Forbidden City, AMA youth entertainment, AMA Awards, tion arrived in Jinan, Shandong Province, Tianmen Square, Beijing National Palace Asian Luncheon and a Silent Auction to help And the best opportunity has to count to participate in the next event from July Museum, climbed the Badaling Great Wall, to raise funds for the Asian Media Access in the recent Cultural Exchange Oppor- 26 – 31. and had great time to shop at Beijing’s flee Media Arts Complex. Tickets are $30 for tunity with China. MN Sunshine Dance The MN delegation participated at market. After leaving the century-old city adults and $15 for youth. has spent a month (July 7th – August the Shandong International Youngsters’ – Beijing, the delegation visited the China’s Established in 1992, Asian Media Access 4th, 2010) in China to perform at various Cultural Festival, which was hosted by the largest modern city Shanghai and toured the (AMA) is a community-based organization cities, like Shenzhen, Jinan, and Qufu in Shandong Foreign Affairs Government. World Expo, experienced different countries dedicated to using media arts, media and China. They were invited by two interna- Minnesota delegation once again performed in a condensed version. technology for social betterment. The mis- tional organizations - to perform Hmong at the Open Ceremony with hundreds of The Minnesota Delegation finally re- sion of Asian Media Access is to “connect traditional dances at 2010 China-US Youth youth from worldwide. Later, the Minne- turned home in August with over-weighted the disconnected”. AMA recognizes that Performing Arts Festival, and Shandong sota delegation and other youth from around luggage full of souvenirs, gifts, honors, and media arts, media and technology are essen- International Youngsters’ Cultural Festival. the world visited the famous Leopard friendship, which concluded the successful tial tools for education and communication. Besides performances throughout the cit- Spring Park, Thousand Buddha Mountain exchange experience in China. This unique Therefore, AMA effectively utilizes these ies, the 20-dancers’ delegation team also and the origin of the Yellow River (as one opportunity has led to the invitation to different tools to enrich lives, especially in participated at various cultural events, with of the cradles of Chinese civilization). At perform at annual CAAM Chinese Dance the Asian & Pacific Islander communities the enthusiasm to share US culture with night, the youth enjoyed world-class Pe- Performance at O’Shaughnessy Auditorium with high concentrations of immigrant and Chinese counterparts. king Opera and Acrobatic performances. last January. They have performed a world refugee populations. In order to make reality of their dream Later the youth headed to the hometown debut piece - Qeej Hmoob (pronounced For information on tickets, sponsorships trip to China, not only the girls have prac- of Confucius in Qufu, and received the keng hmong) and/or donations please contact David Kang ticed 40 hours a day in learning various warm welcome and generous hospital- Qeej is a bamboo and wooden mouth at 612-376-7715 or email david.kang@ dances, but also they had to take the basic ity from local officials. Young friends all organ found throughout Eastern Asia, and amamedia.org. For more information about Chinese language lessons (at the conversa- over the world visited Confucian Temple, is a traditional music instrument played by AMA, please go to www.amamedia.org. tional level), so they can better enjoy the experiencing 2200 years-old ceremony, the Hmong people. The qeej has six pipes MN Sunshine is supported by Asian Me- exchange experience. Beyond that, they visited the Confucius’ birth/burial places, of different lengths attached to a wooden dia Access, COMPAS, MN Regional Arts spent every Sat. since Feb., 2010, hosted and enjoyed the traditional music and dance air chamber, and is played in major holi- Council, and MN State Arts Board’s “Arts garage sales, hip hop competitions to earn performances, along with appreciation of days and ceremonies. When playing, the and Cultural Heritage Fund.” For more their own traveling money. With such hard Confucian philosophy of education, and his musician has to perform the mandatory information about MN Sunshine, enrolling work, they have won much applause from vision for the world. steps, which include spinning (to confuse in the program, or participating at and their oversea with their high artistic quality of In July 28, Qufu, Shandong Experi- evil spirits which may try to prevent the future performance, please contact their fis- dances, and great manners of representing mental Primary School students and all soul of the deceased from joining his an- cal agent – Asian Media Access, at 612-376- USA. the youth delegation members exchanged cestors) and larger circular patterns (which 7715 and [email protected].  Their adventure started in Shenzhen, cultural games, and arts activities, planned China, the Minnesota delegation along the Friendship Trees together, later all the ASIAN BLOOD DONORS NEEDED with other youth from Harvard University, youth delegation members were invited Call 1-800-59-DONOR toll free for more information. the University of Maryland, Alaska Youth to local students’ homes for a “A day in Orchestra and other youth groups, and China” activity - to experience the daily life Ch i n a In s i g h t jointly with 200+ local Chinese youth, have of students in China. Such life experience SEEKS ADVERTISING REPRESENTATIVE… participated at cultural activities sponsored has inspired real discussion among our Min- Must be passionate about our mission: in addition to being success-oriented, must be by the American International Students nesota delegation members - how different, self-motivated, resourceful, creative, disciplined and community-minded. Foundation. Each of the two countries’ but enjoyable moments with their Chinese Ge n e r o u s Co m m i s s i o n Sc h e d u l e youth presented their best performances. host families. This is the experience that Contact: Greg Hugh Minnesota Sunshine dancers have presented many young people have never experienced (952) 472-4757 4 dances – Hmong Water Bucket dance, before, such as: eating dinner in the open Email: [email protected] Bollywood, Hip-Hop and Robot dance, air, going out to the street for public bath fa- PAGE 6 > MARCH 2011 finance www.chinainsight.info .. )$.0Ʉ -0*4Ʉ")$+'  -0*4Ʉ")$+' )$.0Ʉ .. 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*Asian Business Services does not infl uence lending decision in any way, all lending applications are subject to credit approval. © 2011 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. 122267 02/11  www.chinainsight.info chinese new year MARCH 2011 > PAGE 7

New Year from Page 1 recognize their corresponding Chinese characters. A debate over the appropriate- UCBC celebrates ness of their names then arose: was there sufficient exhortation for the child to better him/herself? Would the child grow up to Year of the Rabbit meet the high expectation inherent in this particular combination name? What about By Karlynn Fronek, UCBC Communications Director the deeper meaning of grace? A Chinese father’s heart never rests. the brewery, which donated the space and beer, the group stepped outside their mode and celebrated the New Year. The several varieties of beer proved to be a great complement to the Chinese buf- fet from Pagoda Restaurant. The Chinese delicacies included ten traditional dishes from Dumplings to New Year Cakes. A highlight of the event was the performance by Jarrelle Barton, who played the Chinese Hong Lin demonstrates the art of paper zither or Guzheng magnificently. Largely cutting Guests fill plates with traditional Chinese self-taught, he also studied under a famous fare musician from Minnesota. the secrets of the fortuneteller. Pearl Bergad divining the future of an Warren Vollmer, UCBC President, made The next day, February 5, the Team earnest seeker at The Marsh To celebrate the Year of the Rabbit, a welcoming remarks and introduced Mengfu traversed town again, this time to the large group of US China Business Con- Yang, a new UCBC Board Member from celebration at The Marsh in Minnetonka. nections (UCBC) members and guests the University of Minnesota, who presented Organized with the advice of Yin Simpson, gathered on February 3rd, the first day of Chinese New Year celebration traditions. the event began with a rousing lion dance Chinese New Year, at Summit Brewery, St. UCBC also announced its expanded summer by the Hui’s Lucky Dragon Dance and con- Paul. Typically, they hold monthly meetings internship program for local and Chinese tinued with the Team playing its signature about doing business with China. But, at students to work in Minnesota.  role of name translation and fortune telling, this time augmented by the paper cutting expertise of Hong Lin. The airy rooms, with their walls lined with windows or adorned Advertisers with exquisite Chinese silks, paintings and Your potential customers are reading Ch i n a Insight. Shouldn’t calligraphy panels, provided the soothing you be bringing them in the door with an ad? Our readers are: environment conducive for discussions on - Well-traveled Zen and meditation. - Opportunity-seeking Tired but energized by interactions with - Entrepreneurial so many interested kids and their parents, the Team returned to Minnetonka the following - Open-minded week, this time to the high school for its - Excited about understanding China Chinese New Year celebration. Prevalent Rates are highly competitive. among the attendees here were kids en- rolled in the Chinese immersion program at Contact Greg Hugh (952-472-4757, ads@ Minnetonka and the Chinese adoptees. It chinainsight.info) or visit www.chinainsight.info for was a joy to hear so many kids rattling off their Chinese names and then to see them more advertising information. PAGE 8 > MARCH 2011 chinese new year www.chinainsight.info A Chinese New Chinese American Year celebration to Association of remember! Minnesota (CAAM) By Amanda Mourning celebrates with its 43th Annual Banquet he Year of the Rabbit began interwove traditional Chinese dance with By Greg Hugh, Staff Writer with an unforgettable evening martial arts moves. The contrast of flow- of dance and music, courtesy ing costumes with the abrupt moves of the t a sold out Peking Garden in thanks to the recovery of equity markets. Tof the Twin Cities Chinese martial artists was electrifying and effective. St. Paul, CAAM held its 43rd The full financial report can be viewed at Dance Center (TCCDC). On January 29th, A solo dancer bearing a sword added a note Annual Banquet that included CAAM’s website: www.caam.org. TCCDC, under the Artistic Direction of the of stridency to this dance that set it apart as Asome social time, a business Mingjen Chen then returned to the acclaimed dancer and choreographer Huan- a particularly memorable performance. meeting, entertainment, excellent food and podium to announce that CAAM will be ru Zhang, celebrated the Chinese New Year The dance selection varied throughout plenty of door prizes. supporting the building of a Chinese garden with a large audience at the O’Shaughnessy the evening, drawing in jazz and modern The business portion of the evening be- at the University of Minnesota Landscape Auditorium in St. Paul. dance through the performance by the Metro gan when Julie Ha Thuong, the M.C. for the Arboretum that has been started by Jen- The program highlighted an impres- Dance Center of a riveting narrative dance evening, asked the gathering to settle in their nie Hsiao in memory of her husband Fred sive array of colorful costumes, elaborate entitled Bionic. Later in the show, TCCDC seats and then introduced CAAM President, Hsaio. staging and a colorful backdrop. The show introduced a Latin dance, replete with Mingjen Chen, who in turn introduced all The last piece of business to be conduct- began with a dance entitled Splendid Flour- vibrant red frills and sultry solo dancers Board Members that were present. ed was the awarding of the Stanley Chong ishing Flower, which highlighted several who glided across the stage with poise and Chen then proceeded to acknowledged Scholarships and this task was performed by generations of dancers at once. The lively emotive grace. some of the past officers of CAAM and CAAM directors, Vincent Mar and Le Ha. music and joyful dancers engaged the audi- In addition to dance performances, a other members that have contributed to the The scholarships were awarded to two ence from the moment the music began to number of singers were invited to perform success of the organization. There was a dancers that have attended CDT for 12 years play. The piece, which paints a vision of alongside dancers. Professional singers, brief update on some logistics matters re- each, Alissa Wong and Ben Jiang. springtime, was a welcome reminder that such as the tenor soloist, Lei Li and ac- garding CAAM’s participation in A Festival Prior to the start of the banquet, the the Minnesota winter will soon be over and complished soprano, Qian Xu, were also of Nations. gathering was treated to a performance of springtime will bloom. joined by local talented singers and the Chen then introduced representatives several Ha sisters and as the banquet began, The dance selections highlighted the Minghua Chorus, conducted by Lei Li. from the Chinese Dance Theater (CDT) and performances by students from CDT, a solo diverse skills of the many dancers who The combination of song and dance lent an the Chinese Language School (CLS) for a by Lei Li, Minhua Chorus singers and a solo had come to celebrate the Chinese New enjoyable diversity to the performances over brief report on their activities. Following dance by Ben Jiang. Year. Several pieces involved whimsical the course of the evening and heightened the their reports, Chen then introduced Vincent Although everyone was amply satisfied movements and costumes, from bright, ac- energy throughout. Mar, Director of CAAM, who then gave the with the banquet meal, the evening would centuated hats to towering peacock feathers. Huanru Zhang, former President of the treasure’s report for the former treasure, not be complete without the awarding of These lively numbers were punctuated by Nanjing Shenmei Culture and Art Com- David Wang, who resigned to take a posi- door prizes generously donated by a number more dramatic moments, such as the Colors pany in Nanjing, China, crafted a seamless tion back in China. According to Mar, the of benefactors including some freshly baked of Unity, in which young dancers Jimmy Ji and professional production with memo- financial condition of all CAAM divisions, pastries from Peking Garden. We’re quite and Cynthia Zheng moved together with rable costumes and performances. The CDT and CLS are in excellent condition sure everyone went home quite content.  purpose and precise movements. event- aptly entitled The Enchantment of One of the many high points of the Dance- was a truly enchanting celebration evening was the dramatic and intricate of the Chinese New Year. All who were in dance entitled Rivalry. This piece, restaged attendance will not soon forget the energetic, by Huanru Zhang and Ningsheng Huang, vibrant performances. 

Photo credit: Jack Yan of Creative Pro Studio www.chinainsight.info chinese new year MARCH 2011 > PAGE 9 Chinese New Year Intergenerational celebrated at celebration at Embrace China The Marsh he Chinese New Year was he Marsh, a center for balance recently celebrated at the Ted and fitness located in Min- Mann Concert Hall with an netonka, MN, was the site of Tall-star performance art group Tan intergenerational Chinese directly from China, featuring Chinese mu- New Year celebration organized with the sic, folk songs and dances, ventriloquism, assistance of the Chinese Heritage Foun- magic, and shadow puppetry. This profes- dation Friends. Activities included a lion sional cast was joined by performers from dance by Hui’s Lucky Lion Dance Group, local groups from MN Chinese Daycare & a Tai Chi story class along with calligraphy Learning Center, Minnesota Chinese Op- Minnesot Chinese Opera name translations, fortune telling and paper era, Minhua Chorus and Minghua Central cutting by members of the Chinese Heritage Chinese School. There was something for Foundation Friends.  everyone with 17 acts performed. Below is a photo montage of Twin Cities Chinese New Year celebrations. Enjoy! PAGE 10 > MARCH 2011 business www.chinainsight.info

With China’s economic prospects China’s November CPI up 5.1%, a 28- sound, the focus shifts to structural month high issues, according to the World Bank BEIJING - China’s consumer price The central bank on [Dec. 10] ordered BEIJING- China’s growth has moder- policies, the external surplus is on course to index (CPI), a major gauge of inflation, banks to raise the amount of money they ated somewhat to a still healthy pace, with rise in 2011 and the medium term, in U.S. rose to a 28-month high of 5.1 percent in must keep in reserve for the sixth time this a shifting composition, according to the dollar terms. November, the National Bureau of Statistics year, after it announced in October the first World Bank’s latest China Quarterly Update “Further normalization of the macro- (NBS) said [Dec. 11]. interest rates hike in nearly three years. released [Nov. 3, 2010]. economic stance is needed to guard against The growth rate picked up from 4.4 The move came after the central bank The Update, a regular assessment of macro risks.” says Ardo Hansson, Lead percent in October, according to the NBS. said earlier Friday that the new yuan loans China’s economy, finds that GDP growth Economist for China. “The key concerns are The inflation was driven by an 11.7 percent in November stood at 564 billion yuan declined from 10.6 percent in the first half asset price increases, strained local finances of surge in food prices, which accounts for (US$84.7 billion). The figure added up to to a still surprisingly strong 9.6 percent (year and nonperforming loans, while inflation one-third of the basket of goods used to a total of 7.45 trillion yuan of new loans on year) in the third quarter. The domestic risks cannot be ruled out. Importantly, two calculate China’s CPI. in the first 11 months of the year, just shy economy cooled as the stimulus impact is way risks call for policy flexibility.” The year-on-year increase in food prices of the government’s 7.5-trillion-yuan full- fading out and the monetary stance is be- The authorities are broadly on track to grew from rises of 10.1 percent in October, year target. ing normalized. Growth of investment and normalize the overall monetary stance and 8 percent in September and 7.5 percent in In another step to cool prices, the urban consumption has decelerated, and so meet the 2010 quantitative targets. They August. State Council, or the Cabinet, on [Dec. has that of imports. Meanwhile, with exports have also started to raise interest rates, al- NBS spokesman Sheng Laiyun said the 10] imposed harsher penalties on Chinese strong, net external trade has contributed though interest rates will need to increase rise in food prices contributed 74 percent to vendors who collude to fix prices. They significantly to (yoy) growth and the exter- further. International liquidity poses chal- November’s CPI. will face fines of up to 5 million yuan under nal surplus is rising again. lenges to monetary policy, but these should “Prices will stay stable in the following new penalties, overturning the previous The Update notes that, despite an ex- be more manageable in China than in some period of time as long as ministries and re- 1-million-yuan maximum fine for collusion pected deceleration, global growth prospects other emerging markets. Nonetheless, mea- gional authorities seriously implement the to manipulate prices. are fairly favorable due to emerging market sures can be taken to enhance protection central government’s measures on checking The Chinese Academy of Social Sci- strength. However, risks remain, including against unwanted capital flows. prices,” he said. ences, a government think tank, said in a a weaker outlook in high income countries. The preparations for the 12th Five- From January to November, China’s CPI report released [Dec. 7] inflationary pres- Global price pressures remain contained by Year Plan (2011-2015) call for focus on rose 3.2 percent year on year, surpassing the sures are building and excess liquidity will spare capacity in many countries, but raw structural issues and reforms, according to government’s target ceiling of 3 percent for be a major factor driving the CPI higher over material prices have risen again and there the Update. Changing the growth pattern is the year. the next several years. are upward inflation risks internationally. rightly a key target. The need to rebalance The producer price index (PPI) for It forecasts consumer prices to rise 3.2 China’s own economic prospects remain to more domestic demand led, service sector China’s industrial products rose 6.1 percent percent over the full year in 2010. sound, with risks both ways, according to oriented growth seems stronger now than 5 year on year in November, compared with a Liu Yuanchun, professor with the the Update. “Growth may ease a bit fur- years ago, in part because the international 5.0 percent gain in October. Beijing-based Renmin University of China, ther as global growth decelerates and the environment is less favorable. Rebalanc- Rising prices have propelled the gov- said the November’s CPI might be the peak macro stance is normalized but it remains ing will not happen by itself-it will require ernment to take measures to rein in rising of the year. He forecast inflation would stand supported by the traditional growth driv- significant policy adjustment. prices, including boosting supplies of key at 4 percent for 2011.  ers and a robust labor market.” says Louis This Update also discusses policies that goods, giving financial aid to the needy and Kuijs, Senior Economist and main author would help boost private sector develop- mopping up excessive liquidity. Economists Reprinted by permission of China Daily of the Update. “We have edged up our GDP ment, focusing on opening up sectors and have blamed liquidity as the major factor (http://www.chinadaily.com.cn). growth projection for 2010 to 10 percent reducing entry barriers, addressing invest- pushing up prices. after the third quarter data. We see growth ment climate constraints, and supporting at 8.7 percent in 2011 and easing somewhat research and development and innovation by further in the medium term.” the private sector. Further progress in energy Visas from Page 2 Pushed up by higher food prices, infla- conservation and development of renewable Residence Permit Details to the extent tion may stay above the 3 percent target for a energy sources calls for further rebalanc- The Residence of this documenta- while. It is unlikely to escalate as core infla- ing the pattern of growth, energy pricing Permit allows for- tion, acceptable levels tion remains in check. However, commod- reforms, greater reliance on market-based eigners to legally of criminal offense, ity prices may rise further while sustained mechanisms, and accelerated development reside within China. or how this require- high wage growth is unlikely but cannot be and diffusion of new energy technologies. It is usually valid ment applies to long ruled out. Given the fundamental drivers Visit: http://www.worldbank.org/chi- for one year and al- term residents of oth- of property prices, they are unlikely to be naquarterly to read the full report and lows the holder to er countries have yet contained for long. On current trends and summary.  enter and leave Chi- to be worked out. na whenever they Previously, the is- choose. The follow- suance of an employ- More Americans consider China as ing documentation must be submitted: ment permit was a much simpler process; •Valid passport it only required the provision of a contract world’s No 1 economic power •Alien Employment Permit between a registered company in China and WASHINGTON - More and more The 47 percent now saying this eclipses •Certificate of Verification for Physi- the individual concerned, a health check, an Americans consider China, rather than the the 35 percent choosing the [United States] cal Examination Record for Foreigner or interview with the Public Security Bureau, United States, as the leading economic as the leader; however, China’s lead over the Overseas Chinese registration of residency with the local PSB, power in the world today, according to a poll [United States] on this measure is smaller •Notification for Application of Employ- and subsequent registration with the tax released Monday by leading U.S. research than it is for perceptions about who leads ment Visa and Residence Permit authorities and immigration department. company Gallup. today, and is not appreciably different from •Interview Record of Residence Quali- The new requirements described above are Gallup said that 52 percent [of] Ameri- what it was in 2008. fication Application for Foreigners just that – new – and have yet to take effect cans named China as the leading economic No other country figures very largely •Chinese Visa or Residence Applica- nationally. power in the world today, up from 2009’s in Americans’ perceptions of the world’s tion form The visa application process varies from figure of 39 percent. top economic powerhouse, with respect to Once these four steps have been com- country to country, please check with your This is China’s strongest lead on this either the present or the future. Fewer than pleted, the foreigner is legally able to work embassy for advice. Gallup measure since its inception in 2000, five percent of Americans cite the European and reside within the People’s Republic Dezan Shira & Associates’ legal services and is a major change from 2009, when Union, Russia, or India as the leading power of China for the validity period of their team in China includes Pascal Wang, a law- China and the [United States] were nearly in either context. permit (usually, but not always, one year). yer with specific background in China visa tied in Americans’ perceptions about the The latest update of this poll is part of Both permits can be renewed prior to their and employment law. For enquiries concern- leading power. Gallup’s annual World Affairs survey, con- expiration. ing China visa issuance issues, please con- By contrast, 32 percent Americans re- ducted from Feb 2 to Feb 5.  tact him via [email protected]. The firm garded the United States as the top world The Criminal Record Certificate may also issue China invitation letters to economic power, dropping from 2009’s Source: China Daily/Xinhua Over the past two-three years, additional visiting businessmen, however please note reading of 37 percent. requirements for obtaining an employment this facility is restricted to clients only.  Meanwhile, Japan ranks the distant third Advertisers permit in China have begun to be put in Reprinted by permission of China at 7 percent. The poll also finds a 13-point Your potential customers place. These include a certification of “no Briefing News (http://www.china-briefing. surge since 2009 in the percentage of Ameri- criminal record,” to be issued by immigra- com/news). are reading Ch i n a In s i g h t . tion agencies of foreign governments, on cans who believe China will be the world “It does not matter how slowly you Shouldn’t you be bringing them which an official statement must be obtained economic leader in 20 years. go as long as you do not stop.” certifying that the applicant has no prior in the door with an ad? ...Confucius criminal convictions in his home country. www.chinainsight.info business MARCH 2011 > PAGE 11

Quarterly from Page 1 Minnesota exports continue rebound “Bought by China” in the third quarter market: Taiwan). tracking the state’s manufactured export - the New World • Continued strong demand for inte- trends and is prepared for the Minnesota grated circuits (where the Philippines is Trade Office (MTO) by the Department the top market at US$87 million), telecom- of Employment and Economic Develop- Image munications equipment and electric genera- ment’s (DEED) Analysis and Evaluation tors fueled exports of electrical machinery Office (Thu-Mai Ho-Kim, 651-259-7180). By Shen Honglei products. Past issues may be viewed on DEED’s China and its 1.3 billion people have stage, he found “each country, each nation • Exports of ores, slag and ash – mining website at www.PositivelyMinnesota.com/ created enormous wealth for the world. It has good people. Confucianism is very commodities – continued their explosive Data_Publications/Data/Export_Statistics/ has the world’s second largest GDP, which is tolerant of cultural diversity; we don’t need growth. Exports of these goods increased index.aspx. Exports by state (and by North fueled by strong domestic demand, an asset proof of who is better than whom.” In this 970 percent to US$247 million and predomi- American Industry Classification System that protected the country from the impact exclusive interview, Lai commented for nantly consisted of iron ore and related con- industries (NAICS) are collected by the of the global financial crisis and elevated its China Today on what kind of influence the centrates shipped to Canada, the top market U.S. Department of Commerce (USDOC) role in world economic recovery. Of course, world has on China, what China’s response for iron ores. Minnesota is largest exporter and are distributed by the World Institute of China’s GDP per capita is only a tenth of is to the world, and how we can function of iron ores among all states, and accounts Social and Economic Research (WISER). that of the U.S., ranking only the 102nd harmoniously with the world. for 70 percent of Canada’s purchases of Other export data based on the Harmonized in the world. But the affluent classes here CT: In Jonathan Swift’s Gulliver’s Trav- these commodities from all states. Tariff System (Schedule B) are collected by have astonished the world with their strong els, Gulliver survived peril at sea and found Minnesota Quarterly Export Statistics the USDOC and distributed by the Global purchasing power. “Buy a house in the U.S., himself washed ashore and bound up by the is the most current resource available for Trade Information Services.  or settle in Australia”: This used to be the citizens of Lilliput. He coughed a little and standard advice circulating in some privi- unintentionally burst open his constraints, leged groups, but now it’s a common debate which frightened the Lilliputians very within the rapidly expanding middle class. much. The Economist used this metaphor A Chinese businessman spent US $33.2 to describe today’s China; in other words, million on a 500-square-meter apartment the giant just woke up. What are your re- in April 2009, setting a new record on the flections on the relationship between China New York real estate market. Some foreign and the world now that she has awakened media have commented: “Made in China” to the world? has a brother – “Bought by China.” Lai: The metaphor is very fitting. As a There are few sectors that don’t reflect populous country, China was expected to China’s increasing expansion into the world. change the world when she emerged into it. The number of Chinese students overseas They used to say that when a butterfly on reached 220,000 in 2010, and they form Wall Street fluttered its wings, stock markets the largest group of overseas students in the around the world would rise and fall in the U.S., Canada and Japan. The exchange be- wind. Now if China sneezes, people think tween China and the world is being carried a typhoon is on the horizon. But you cannot out at the city level, and the establishment of stop China from sneezing. If we deepen our Chinese “sister cities” now involves 1,717 mutual understanding, then misunderstand- foreign urban centers in 126 countries. ings, panic and even confrontations will be The trend to interdependence and in- subdued. terwoven interests between China and the China is a socialist country that is under- world is now more obvious than ever. More going transition and development. Its seat attention is put on common interests rather as a permanent member of the UN Security than pursuing narrower interests. Globaliza- Council has made it apparent that it is dif- tion has also increased this momentum. In ferent from some medium-sized and small this regard, China Today interviewed Lai countries. It is learning to view problems Shanglong, senior expert on economic glo- from a much wider perspective. balization and international relations. China can integrate into the global economy, but should do it with dignity. These days China is having some trade friction with a few countries. It doesn’t mat- ter. China is getting a better understanding of the world and also transferring its own values into the mix. For thousands of years, the Chinese clung to the basic principle that one “should not impose on others what you yourself do not want.” Reciprocity must Lai Shanglong underpin a harmonious world. CT: Some experts think culture is the Lai’s family came from Yongqing, basis of such integration into the world. The Fujian Province. He studied architecture at “force of culture” has the power to facili- the National Cheng Kung University, Tai- tate scientific and economic development, wan, and later economics at the School of and social prosperity. Therefore, the most Urban and Public Affairs, Carnegie Mellon important standard for a culture is whether University. His doctorate supervisors were the people are living in relative happiness Nobel laureate Hebert Simon and economic or not. What do you think? master William W. Cooper. In 1976 Lai was Lai: China missed two industrial re- recommended to the UN by the Chinese forms, with the result that its economy government, where he took up the post of lagged behind the West. But China will Commissioner of Economic Affairs at the rise sooner or later, as the country has UN Department of Technical Cooperation shown great potential and a continuity of for Development and later became special culture over its long history. The famous assistant to the UN Under-secretary General. Chinese scholar Yu Qiuyu noted that only He is now economic commissioner of the after considering how some of the world’s UN Department of Economics and Social oldest civilizations perished did he realize Affairs. what a phenomenal achievement it was for In the UN, Lai was initially in charge the Chinese civilization to have persisted of regional planning, and then turned to to this day. facilitating exchanges between countries. I firmly believe that China can safeguard When Lai left his hometown, his grandfather its culture even in war time, and rise if given reminded him China was the best nation in the opportunity. During the Cold War, China the world. But when he stood on the world Image continues on Page 15 PAGE 12 > MARCH 2011 economy www.chinainsight.info China’s Top 10 economic numbers By Song Jingli (chinadaily.com. Editor’s note: You may think statistics are dull. But some may attract you the first moment you see or hear about them. A single number may not tell the whole story, but there is a story behind it, for sure.

12.8% It may be a dream for people in China to own a house or apartment. But climbing prices have shattered many dreams. The number 12.8 percent in April shows that the growth rate for housing prices peaked in that month. Since then, housing prices have been rising at a slower pace.

5.1% Everybody in China may have felt the price hikes in all kinds of goods. The acronym CPI is now one of the best known economic terms.

Housing prices rose 12.8 percent in April from a year earlier in China’s 70 large and medium-sized cities, the National Bureau of Statistics (NBS) said on Tuesday. That was 1.1 percentage points higher than March’s housing price rise.

$1426.08 an ounce You may want to buy gold to counter inflation, or you may just want to buy a gold necklace for your mother, but gold may have become too expensive. China’s investment-driven consumption of gold will almost double this year to 45 bil- lion yuan ($6.7 billion), due to growing concern over inflation and restrictions on property investment, the World Gold Council (WGC) said on Thursday. “We expect investment-oriented consumption of gold could reach 150 tons in China this year, up from 80.5 tons during the same period last year,” Albert Cheng, managing director of WGC (Far East), told China Daily.

6.8275 The exchange rate for China’s currency renminbi against the US dollar stayed at 6.8275 for a long time. But that was not the case anymore. China’s CPI (Consumer Price Index), a major gauge of inflation, rose to a 28-month high of 5.1 percent in November, the National Bureau of Statistics (NBS) said on Dec 11. The growth rate picked up from 4.4 percent in October, according to the NBS. The inflation was driven by an 11.7 percent of surge in food prices, which accounts for one third of the basket of goods used to calculate China’s CPI.

$7.24 billion Trade deficits are rare for China. But it did come, albeit only once this year.

The People’s Bank of China, China’s central bank, has decided to proceed further with the reform of the renminbi exchange rate regime to enhance the RMB exchange rate flexibility, a spokesperson of the central bank said on June 19. The decision was made in view of the recent economic situation and financial market developments at home and abroad, and the balance of payments (BOP) situation in China, the spokesperson said in a statement.

China’s trade balance turned red in March, the country’s first monthly trade deficit in six years, the General Administration of Customs said on April 10. China exported $112.11 billion of goods and services in March, up 24.3 percent year on year, while the imports surged 66 percent year on year to $119.35 billion, resulting in a trade deficit of $7.24 billion.

“Learn as though you would never be able to master it; Hold it as though you would be in fear of losing it” ...Confucius www.chinainsight.info economy MARCH 2011 > PAGE 13 Top 10 from Page 12 No 2 China’s GDP in the second quarter of this year exceeded Japan’s, overtaking the No 5.16% 2 spot held by Japan for more than 40 years. Stocks rise and fall, which is the normal state of the equities market. But the drop of shares by 5.16 percent in a single day may put a big dent in “your pocket.”

China’s economy again beat Japan’s in the third quarter of this year. China’s nominal GDP amounted to $1.42 trillion during July to September, compared with Japan’s $1.37 trillion.

Chinese shares plummeted the most since Aug 31, 2009, on Nov 12, as investors feared 2,000 cars more interest rate raise after inflation hit 25 month high in October. “If the average life expectancy of Chinese is 70, Beijingers actually only get 50 years The benchmark Shanghai Composite Index lost 5.16 percent, or 162.31 points, to because we waste 20 in traffic jams.” Just imagine what it’s like when every day 2,000 2,985.44. more cars are hitting the road.

$2.65 trillion Management of China’s colossal foreign exchange reserves can be a challenge.

Commuters wait nose to tail on the Third Ring Road in Beijing during rush hour last weekend. Traffic congestion in many cities has severely worsened in the last few decades, with more cars adding to the problem every day. [Wang Jing / China Daily]

Take a sneak peek at a Christmas list drawn up by any Beijinger and chances are it includes a new car - or, to be precise, a new license plate. People have been desperate to get their hands on this year’s festive “must-have” since China’s foreign exchange reserves, the world’s largest, rose $194 billion in the third the announcement of plans to restrict vehicle purchase and registration in the capital from quarter to reach a record $2.65 trillion, which some foreign countries will likely use to Jan 1. pressure China to push forward a faster yuan appreciation, economists have said. Best Buy re-evaluates China strategy No 1 By Tang Zhihao, China Daily China is on its way to getting more No 1s in the 21st century. It’s now No 1 in the Emerging Markets Opportunity Index. BEIJING - The consumer electronics Industry experts said Best Buy’s opera- retailer Best Buy said on Tuesday that it tional strategies were not able to generate will close its retail headquarters in Shanghai, profit as quickly as its local rivals and con- along with nine of its stores in China. strained its development in China. Industry insiders said Best Buy’s busi- Local competitors have stronger bar- ness strategy hampered the expansion of its gaining power in price negotiations, which branded stores in the Chinese market. caused Best Buy to lose its competitive edge The US-based retailer said that it would in pricing, according to industry experts. now focus its strategy on expanding its “Best Buy makes profit by taking the wholly-owned stores - which operate under differences between the products purchased the name of Five Star Appliance - to consoli- and products sold. They get some discounts date its business operations in the country. from the manufacturers through large pur- Best Buy expects to open 40 to 50 profitable chasing volumes,” said an industry insider stores before 2013, raising the number of from a multinational grocery and general Five Star outlets to 200 or more. merchandising retailer. “Dominant retail- Meanwhile, the company said two Best ers may get even better discounts as their Buy outlets might re-open later this year, but purchasing volume is much larger than did not provide additional details. Best Buy.” “While the decision to close the stores “In some cases, the discounts are so was difficult for management, moving for- large that the suppliers of Chinese electronic A customer leaves an Ikea store in Shenyang, Liaoning province. China ranks No 1 ward, we are confident about our business products feel cheated,” said Chen Can, an among 27 emerging economies due to its huge consumer market and rapid economic strategy and remain committed to China, as analyst from Analysys International. growth, according to Grant Thornton. [Doug Kanter / Bloomberg] demonstrated by the accelerated develop- “In China, all Best Buy stores are located ment of Five Star,” said Kal Patel, president in affluent areas, which brings high operat- China ranks No 1 among 27 emerging economies due to its huge consumer market and of Best Buy Asia. ing costs. Product promoters in other elec- rapid economic growth, according to the Emerging Markets Opportunity Index released The company said it would offer quali- tronics stores, such as Suning or Gome, are by US accounting firm Grant Thornton. fied employees positions in the Five Star paid by manufacturers, but Best Buy must The index takes account of key factors such as the size of the economy, wealth, involve- retail business and in its exclusive franchis- pay for such costs,” both of which result in a ment in world trade, growth potential and levels of human development. ing business, as well as retaining some team members to support ongoing operations. Best Buy continues on Page 15 PAGE 14 > MARCH 2011 book review www.chinainsight.info Yunte Huang, Charlie Chan: The Untold Story of the Honorable Detective and His Rendezvous with American History New York: W. W. Norton & Co., 2010. xx, 354 pp. Reviewed by Raymond Lum him in additional novels. Chan, spouting misrepresented the Chinese in America “queer” used by gays to self-identify, Huang’s Biggers-invented pithy fit-the-situation (some of the actors were in fact Japanese use of “Chinaman” is grating and appears to platitudes that were suggested as having or Japanese-Americans, and Juanita Hall, sanction its unfortunate use in 21st century been first mouthed by Confucius, solved the matriarch, was not even Asian) years rhetoric. While that term was, indeed, once crimes by intuition and observation, and, in after the draw of Charlie Chan had come the accepted word to refer to Chinese people, the movie versions, tolerated his American- to an end. The movie adaptation of Pearl it is now seen almost exclusively as a form born Number Two Son calling him “Pop.” Buck’s Pulitzer Prize-winning novel of approbation, verging on racism. The fact The novels, and the movies based on them, The Good Earth, which portrayed the that some Chinese-American writers use it to are fun, riveting, a bit silly, and mildly racist hardships of China’s peasants during the effect, such as Frank Chin in his novel The (but mostly in terms of current sensitivities). Japanese invasion, showed the Chinese Chinaman Pacific and Frisco R.R. Co. and his The only person who spoke like Charlie more realistically than the Charlie Chan play “The Chickencoop Chinaman,” does not, Chan was Charlie Chan. movies did, yet the actors still were Cau- to this reviewer, justify Huang’s continual use This book sets out to document the in- casians made up to look, unconvincingly, of it. (Chin, by the way, recently appeared on vention and influence of the fictional detec- like Chinese. a call-in program on public radio that featured tive but somehow gets lost along the way. But both films are entertaining, not Huang and vehemently excoriated Huang for We are well into the story before Huang consciously racist, and both kept the Chi- taking a positive approach to Charlie Chan, reveals how Biggers discovered the story of nese in the purview of the non-Chinese, and Huang deals with Chin’s objections in this Chang Apana while perusing a Honolulu albeit briefly, whether the presentation was book). But nobody owns the depiction of the newspaper at the New York Public Library realistic or not. Chinese buy into this, too: Chinese, so the door is open to all. and used him as the original surrogate for Chinese restaurants in the U.S. still give The American image of the Chinese Charlie Chan. Everything else about Charlie out fortune cookies (even chocolate ones), changes in tune with economic and political Chan emanated from the imagination of tidbits unknown in China. Ironically, per- realities and perceptions. In the 1870s, Chi- Biggers, and, later, from that of Hollywood haps, fortune cookies are stuffed with pa- nese immigrants to the U.S. were depicted writers. Biggers did spend time in Hawaii, per strips bearing pithy sayings that might in the popular press as rat-eating, opium- writing, and did meet Chang Apana. But be modern Charlie-Chanisms with verbs. smoking corruptors of American women, Charlie Chan and his fortune-cookie Huang has not shown convincingly that At least Chan did not populate his wise look-alike laborers in pigtails who stole jobs aphorisms, introduced in the immensely Charlie Chan is the fictional realization of retorts with lottery numbers and useless from Americans. The anti-Chinese move- popular novels of Earl Derr Biggers be- Chang Apana (Biggers himself denied it), learn-a-[Mandarin] Chinese-word-a-day ment culminated in the 1882 Chinese Exclu- ginning in 1925, and later in forty-seven yet he devotes almost as much attention to fillers. And even Huang himself employs sion Act, passed by Congress and extended Hollywood movies that featured Caucasian him as to Biggers and Charlie Chan. the mis-translated term “Honorable” in the by others acts, and not repealed until 1943 actors with taped-back eyes, presented both The first quarter of this book covers, in book’s sub-title. when the U.S. needed China’s support in positive and negative stereotypes of the too much detail and much of it conjecture, Perhaps the most valuable parts of this the war with Japan. After the attack on Pearl Chinese. Mostly, they were positive, show- the life of Chang Apana, an illiterate Chinese book cover the life and career of Earl Derr Harbor, Chinese in the U.S. took pains not to ing the Chinese, or at least one Chinese, immigrant to Honolulu who became a po- Biggers, the development of films based be identified as Japanese, thereby practicing as astute and intelligent but challenged by liceman and detective and the inspiration— on his novels (some films were written by their own form of racism. Today, the Chinese English verbs. Among Charlie Chan’s philo- but not the basis—for Biggers’ creation of others after his death), the biographical are alternately admired for their hard work, sophical utterances as invented by Biggers, the fictional detective Charlie Chan. While sketches of actors who played Charlie, the cuisine, and inventions, and excoriated for were these: the Charlie Chan of books and movies advent of Sax Rohmer and his Fu Manchu their human rights record, degradation of the • Murder like potato chip: cannot stop might have been based on Biggers’ knowl- stories, the reception Anna May Wong re- environment, and absorption of American at just one; edge of Chang Apana, ceived in the Fu Man- industries and dollars. But Charlie Chan has • Tongue often hang man quicker than they are not about Chang chu films and in China. to be viewed as he “was”: he was not Chinese, rope; Apana. Although it is The Chan movies also but American, and he was fictional. • Advice after mistake like medicine good to have so much introduced audiences Those people who rail against Charlie after dead man’s funeral; information in one place to Chinese-American Chan as a racist stereotype of the Chinese • If befriend donkey, expect to be on Chang Apana, the re- actors Keye Luke and miss the point: he’s entertaining, and that’s kicked. sult of Huang’s thorough Victor Sen Yung; the all he was intended to be. Not Chinese, perhaps, but pointed and research, too much is latter eventually be- To quote Chan himself, “Mind like para- exquisitely funny. still too much. Huang’s came a cook—in the chute, only function when open.” Few people under 50 even know who research on Chang Apana TV show “Bonanza.” Charlie Chan is—or was. Long before the actually reveals how un- Huang, himself an Raymond Lum advent of the Internet, and even before the like the fictional Charlie immigrant from China, Raymond Lum is Librarian for Western introduction of relatively inexpensive air Chan he was. The fiction- has a PhD in English Languages in the Harvard- travel to Asia on Pan Am, Americans gained al Chan was literate, edu- from SUNY Buffalo Yenching Library, where he their limited knowledge of China from cated, self-effacing, intel- and writes effortlessly is also curator of historic returning missionaries and diplomats, from ligent, cerebral. Chang but somewhat annoy- photographs. A native of Chi- the families than ran local Chinese laundries Apana, as presented by ingly. His overuse of cago’s Chinatown, he studied and restaurants, and from a now nearly- Huang, was uneducated similies (so many situ- Chinese there and in Taiwan. archaic medium known as “books.” The and brutal, almost the ations are “like” others, He holds a master’s in library Chan novels themselves led to, and were antithesis of the wise, well-dressed Chinese- but are not) exasperates and at the same science from the University complemented by, the movies. China has American detective that Biggers and Hol- time seems to both emulate and mock of Michigan, and an MA and long held a fascination for Hollywood. The lywood gave us, and depending on which Charlie Chan’s own one-liners. Huang’s PhD in East Asian Languages exoticism of China was created by novels page of this book we read, either spoke numerous digressions, in which he too & Civilizations from Harvard University. and movies, rather than being reflected in English or did not. often interjects his own life story into From 1968 through 1970, he was a US Peace them. The Chinese of Hollywood creation Huang gives Chang Apana more atten- the narrative, would best be confined to Corps Volunteer in Sarawak, Malaysia. For- were most often sinister, such as “Dr. Fu tion than he merits in the context of Charlie footnotes or to an afterword rather than merly, he also was Harvard’s librarian for Manchu,” who never actually existed, or Chan. In fact, Charlie Chan’s perceived role interrupting the narrative flow of his story. South and Southeast Asia and Instructor in alluringly dangerous and sexual, as in the as a representative of the wise Chinese im- A long digression on a crime committed Chinese in the Harvard University Exten- roles played by the Chinese-American ac- migrant has long been forgotten, replaced in Honolulu is revealing of racism at the sion School. He is the book review editor tress Anna May Wong (who acted in some by Americans’ personal experience of the time but has nothing at all to do with Big- for a new (debuting 2010) online scholarly of the Fu Manchu films). Charlie Chan was Chinese. That, and education. gers or Chan. One of the most annoying journal, TransAsia Photography Review, and different from both types: he was smart, The Charlie Chan books and films are and distracting practices of the author is contributes the column “Asia Resources on moral, and non-threatening. thick with plot, mystery, twists and turns, his commitment to referring to the Chi- the World Wide Web” to the Asian Studies Earl Derr Biggers, a Harvard graduate, but are no more representative of the nese in Hawaii as “Chinamen.” Although Newsletter of the Association for Asian Stud- created the persona of the Chinese-Ameri- Chinese than are any other such creations. some people adopt the terms of approba- ies. He has directed several Harvard projects can detective Charlie Chan in the novel The The 1960s Broadway play and, later, film tion applied to them by others as terms that digitized photographs and other visual House Without a Key (1925) and reprised “Flower Drum Song” also romanticized and of self-identification, such as the use of images of Asia. www.chinainsight.info events MARCH 2011 > PAGE 15 Chinese Heritage Foundation Friends announce multigenerational activity Now that everyone has settled down properly, thus channeling your qi? And from celebrating the Chinese New Year of exactly what is so intriguing about mahjong the Rabbit, Chinese Heritage Foundation anyway? Or why is a poker face so neces- Friends wants to invite you to enjoy a lei- sary in a Chinese game of dominos? Come surely evening among a typical, extended, and find out from our masters! multigenerational Chinese household: the Time: Friday, March 18, 6:00 – 9:00 elders sharing a laugh with the younger ones PM. Place: party room, Gramercy Park, over a simple but satisfying dinner; others 6711 Lake Shore Drive, Richfield, MN. engaged in playing mahjong or dominos Dinner: $10/CHFF member, $15/ while still others are poring over calligraphy non-member (all donors of Chinese Heri- or knot tying or simply engaged in conver- tage Foundation and members of Chinese sation. A feeling of congenial contentment Heritage Foundation Friends are consid- reigns. ered members for this event). Reservation Come help us create this picture of har- deadline: March 15, 2011.Please send your mony and fun! Have you always wanted reservations to to know how to hold a calligraphy brush [email protected] 

Image from Page 11 was locked in a battle of ideologies instead figures are only one indicator of a country’s of a more productive phase of economic strength and stability. An advanced produc- construction. Then in the late 1970s Deng tion capability and a modern economic Xiaoping shifted the country onto the track structure are usually more important than of Reform and Opening-up. The actual GDP. livelihoods of Chinese people showed no Today China is focusing on softer skills a market economy. like the exchange rate, trade, arms sales and improvement until the 1980s. – learning advanced management concepts However, China will adapt and master sovereignty. Why did the U.S. do that? I believe Deng was a great statesman. from developed countries and importing the rules in the end. Over the last 30 years, Lai: This is a very important question. He knew people would look after them- useful knowledge to help the country to China has developed an increasingly sharp We have a lot of interests in common with selves better and become influential as a refine its modernization. We used to say picture of Western values and systems. And the U.S., but also many conflicts. Hillary people only if they were well-off. I think the West blocked socialist China. In fact, the key really is that the country is ensuring Clinton has a point: though the U.S. is the country will rise when it develops to we also blocked them, as the blocking its voice is heard in the world community. stronger than China in military might, war a certain point. Integrating into the world activity was mutual. The West had state- “You will know the problem only when will bring suffering to both countries and economy is both an historical opportunity of-the-art technologies and would not learn you meet it,” said Premier Wen Jiabao at produce no victor. On any issue, no matter and an inevitability. from China; meanwhile China believed in the 2010 Summer Davos Conference on how far apart we are, we can negotiate. CT: A Chinese newspaper Cankao Marxism and ignored capitalism. But now, the Chinese economy, elaborating, “In a So there’s no reason for anyone to put on Xiaoxi (Reference News) published some China has come to realize the need to learn country with 1.3 billion people, if we can’t a poker face. These issues will be around coordinates on economic development: in from the West’s experience on a broader realize a comparatively high growth rate and for a long time, and the exchange rate and the last hundred years or more, China’s scale – their political, social and economic sustain full employment, we will be unable intellectual property and human rights performance drew an almost horizontal systems, why they evolved such systems, to improve people’s quality of life.” have always been critical in the bilateral line while the world’s progress climbed and the benefits of them. CT: Before Secretary of State Hillary relationship. upwards, making the gap between China Meanwhile, the world derives benefits Clinton embarked on her first overseas visit The present situation is that China has and the world larger and larger. But after from China. An American family experi- in 2009, she gave a speech at the Asia Soci- many issues to negotiate with the U.S. And 30 years of economic development, the two mented for a year with abstaining from using ety, New York saying, “People in the same in the meantime, China will continue to buy lines are gradually becoming parallel. What any product made here; it turned out to be boat need to get along very well to complete U.S. currency and expand exports. was it China got from the world in these an enormous hassle. Their account became a crossing of the river. This old Chinese We have to believe the world will be last 30 years? What was China’s response the book A Year Without “Made in China.” saying guides our course today.” However, better if we insist on communication. to the world? Cheap Chinese goods in fact help American a year later, the U.S. pulled a long face and Reprinted from China Today, Vol. 59, No. Lai: When China started to learn from families deal with inflation. Without “Made challenged China on an array of core issues 12. the West, it focused on technology only – in China,” would it be possible for the U.S. ships and armaments, not social structure to maintain the level of consumption it cur- or social systems. Westerners couldn’t rently enjoys? Best Buy from Page 13 understand this and thought the Chinese CT: The Asia/Pacific Research Center negative effect on Best Buy’s performance, forms. Additionally, they are guaranteed too utilitarian. But actually there were some of Stanford (APARC) published a book according to the insider. the same after-sale services. There is no good reasons for it. Growing Pains of a Country: The Ten Big High operating costs and lower bargain- reason for them to shop in traditional retail According to historical data, in 1936, Challenges during China’s Transition. For- ing power in price negotiations finally led stores,” said Ding Wenjin, an analyst from the year before Japan launched all-out war eign scholars pointed out the problems and Best Buy to lose the price advantage when Dongguan Securities Co Ltd. against China, China’s GDP was about 1.9 challenges China is facing in the process competing with local rivals, and it failed to Analysts from Analysys International to 2.8 times of that of Japan. Further back, of its rise. What are the growing pains of a attract enough customers. also said that the failure of Best Buy’s in 1820, China’s GDP was seven times that country such as China? “Price remains one of the key factors business model in China is not good for the of Britain. But China was defeated in the Lai: Just like the story of Gulliver in Lil- considered by consumers,” said Chen from industry as a whole. Opium War between 1840 and 1842 by liput, China is not familiar with the rules of Analysys International. “Actually, Best Buy’s business model Britain. Modern history told the story of a the game. Occasionally fouls are made, in- Analysts also mentioned that the boom- is more advanced and appropriate for the country that was so weak militarily that it advertently. During the reform and opening- ing e-commerce market in China has also electronics retail sector. Undercutting prices would be beaten regardless of its wealth. up, China amassed two assets – diversity and had a negative effect on the profitability of should not be the main business model in Therefore it is understandable that China a market economy. But her grasp of the rules electronics retailers that operate through the China,” said Chen. first turned its attention to the advanced is tentative apparently. For example, China traditional distribution channels. Wang Ying also contributed to this technologies of ships and armaments. usually bought oil at the highest price point, “Consumers can get discounts of more story.  Now every government knows that GDP showing herself a novice at maneuvering in than 10 percent through e-commerce plat- Reprinted from China Daily. PAGE 16 > MARCH 2011 a passage to china www.chinainsight.info