HINA NSIGHT C Fostering business and culturalI harmony between China and the U.S. VOL. 12 NO. 3 MARCH 2013 Creating Voice and Vision: Asian Pacific Youth Council’s 2nd Annual Conference aims at allowing young Asians Americans Page 16 to speak out By Anthony James, Staff Writer tanding in a hearing room with ences and cultural identities that are often teachers, policy workers and leg- unrecognized by their non-Asian peers, they Sislators, Sandy Kwon, a Commu- felt that joining the Youth Council would nity Coordinator for the Council of Asian help tell their unique stories and create a Pacific Minnesotans (CAPM), asked for a forum for their cultural journeys. show of hands from the students who have The event’s opening speaker, State approached a State Legislator. Out of the Representative Carlos Mariani of St. Paul, Coloring Contest 40 plus students present, only four hands pointed out that while there will be chal- were raised. This is the issue that resonated lenges which young minorities will face, Page 5 throughout CAPM’s 2nd Annual Youth young people must vigilant to have their conference: many Asian Pacific students opinions heard. While Asian Pacific Ameri- who make up a growing percentage of can’s make up 4% of Minnesota’s popula- Minnesota’s future workforce lack proper tion, their numbers have grown by over 50% representation in state politics. Sandy Kwan asks students if they have since 2000. Of the Asian American popula- For the Asian Pacific Minnesotans Youth approached a State Legislator at CAPM’s tion, over 31% of them are under 18; this Council, lack of representation led to a short 2nd Annual Youth Council means that in coming years, while many of but concise mission statement created by the baby boomer generation is retiring, Min- is to trace Asian youth narratives prevalent one of its current members: Our Voice, Our in the community. For students that come Future. One of the Council’s main capstones Youth Council continues from multiple backgrounds, migrant experi- on Page 3 Chinese firms in U.S. upbeat Chinese New Year Celebration By Chen Weihua in Washington and Li Jiabao in Beijing Page 8 espite unfamiliar regulations, in November and December. The survey's sample consisted of 51 cultural barriers and high op- "The US market, on the whole, is quite top executives - CEOs, presidents, vice- Derating costs, most Chinese open and limitations to foreign direct invest- presidents and managing directors - from 46 companies doing business in the United ment are not the most severe in the world, China-based enterprises with at least 10 em- States describe their experiences as suc- nor are there special limitations for Chinese ployees in the [United States]. The respon- cessful and are optimistic about the future, investments," said Lu Jinyong, director of dents represent various locations and years according to a survey by China Daily and the China research center for FDI at the of U.S. operations, and multiple industries, APCO Worldwide. University of International Businessand including sales, manufacturing, professional One-third of polled company executives Economics. services, banking and real estate. said their operations in the [United States] "Investment can enter the U.S. rather "As more Chinese companies go global had been “very successful”, while 61 per- freely except for prohibitions or limitations and come to the United States, they add a cent described the experience as “somewhat in industries dimension to the close economic and trade successful”. Only 6 percent of respondents with the military, natural resources and relationship between the world's two largest answered "unsuccessful" or "very unsuc- other key sectors like banking, ports and economies," said Larry Lee, China Daily cessful", according to the survey conducted aviation." USA president and editor-in-chief. Despite generally "successful" entries into the U.S. market, 71 percent of respon- dents still said the experience had been "hard". Of this group, 18 percent described the experience as "very difficult" while 53 per- cent said "somewhat difficult". For 10 percent of the executives polled, When Tea is a Dish bringing their companies to the [United Page 9 States] was "very easy". Another 18 percent answered "somewhat easy". Nearly three-quarters, or 73 percent, ALSO IN THIS ISSUE said their companies had ventured into the [United States] primarily to expand their Opinion............................2 share of an industry market. For 14 percent, Events.............................3-4 the top goal was increasing brand recogni- A Passage to China............5, 16 tion, while 8 percent said they had been Education.............................6 seeking access to new technologies. Finance................................7 “Chinese investment in the U.S. will Chinese New Year..........8 & 10 keep fast growth, especially in sectors of Food............................9 The logos of Chinese electronics companies TCL and Huawei Technologies are shown at Culture..............................11 the Consumer Electronics Show in Las Vegas. Chinese companies have shown an increas- Travel..........................12-13 ing interest in investing in the US. [Photo by Wang Jun / China Daily] Chinese firms Business........................14-15 continues on Page 14 PAGE 2 > MARCH 2013 opinion www.chinainsight.info OPINION CHINAINSIGHT Publisher: China’s Current Business Environment: It’s Gregory J. Hugh [email protected] Not Tough, Just Comply Editor: Jennifer Nordin Op-Ed Commentary by Chris Devonshire-Ellis [email protected] ecent media commentary has ing. But this is a global issue, and should -Not purchasing Microsoft office licenses been suggesting that the busi- not be portrayed as a decline in attitudes by and running other pirated software Manager of Operations/ Rness environment in China has China towards foreigners per se. After all, -Operating a business in a restricted Circulation: worsened for foreign investors over the past while China costs have been increasing, industry (e.g. HR or financial consulting) Richard He year. Although China is still evolving as an alternatives remain. Relocating operations using an RO [email protected] emerging market, I disagree with the basic to Vietnam, or even “re-shoring” back home -Under-declaring China income and top- premise that it is becoming tougher, and has been much discussed over the past two ping up margins in Hong Kong Marketing Director: even unwelcoming, to foreign investors. years. This is essentially an economic mat- Will Ahern A sense of foreign investors being ter, not a worsening of China’s business The list goes on and on. Yet all have long [email protected] singled out for specific abuse seems to environment specifically targeting foreign been illegal, and the regulations have been be portrayed in certain circles, and as the investors. Business climates are always in place for years in many cases. Others, Artist/Intern: founding partner of Dezan Shira & Associ- changing. Adapt or die is not a law of the such as mandatory expatriate social insur- Lauren Hugh ates – a company that has been providing corporate jungle specifically unique to the ance contributions in certain locations are consulting services to foreign investors in Chinese, and it is churlish to infer that it is. more recent, but have been well publicized. Staff Writers: China for over 20 years – it is a subject of Larger corporations with larger work- However, the fact remains that all the above Greg Hugh great personal interest. Yet amid these recent forces built up over the years may well specifically break the law. [email protected] dissatisfied comments about China’s busi- be feeling more of a squeeze on margins. The truth about China’s business en- Shilyn Chang ness environment declining, I see nothing A tightening of labor laws and increasing vironment is the same as it has ever been [email protected] new. Instead, it seems to be rather more of a labor costs are eating into margins. Yet this – aspects of it, especially barriers to cer- tain industries, remain unfair, yet these failure to accept that compliance has become has not yet reached a level where businesses Anthony James are identifiable and known. More recent key in China. Non-compliance is now, more are losing profitability. Again, opportunities [email protected] than ever, a false economy. that existed in China 10 years ago may not complaints by foreign investors in my view That China has not provided a par- be quite so valid today. Manufacturing in come largely from executives that have long Jodi Yim James ticularly level playing field for foreign China purely to take advantage of cheap followed a business model that contains il- [email protected] investment is granted. Companies are dis- labor is not what it was. Such businesses legal aspects and/or has taken advantage of lax enforcement in the past. Now that China Jennifer Nordin criminated against through skewed bidding must either adapt to sell to China, or make [email protected] processes for contracts, by having to apply a move to cheaper locations. Expecting is enforcing its own regulations, the inher- ent weaknesses in such business cases are for unobtainable licenses, and when fighting China to retain the business environment of China Correspondent: through many blatantly erected barriers to 10 or 20 years ago is clearly rather foolish becoming exposed. The real issue is not one of China’s business environment becoming Kent Clark foreign investment. Yet, while these realities wishful thinking. [email protected] are regrettable, the parameters regarding Additionally, China has now been more tougher, it’s about getting into compliance and running a business in accordance with which industry sectors remain officially actively enforcing laws and regulations that Contributors: permissible yet practically awkward have certain businesses have long chosen to ig- the law. Because if you cannot afford to do so, the ducking and diving and evad- Elizabeth Greenberg long been known.