The non-issue of the RMB revaluation

Politicians in the USA and in the EU insist on a speedier revaluation of the RMB to lower the trade deficit with China. Their policy misses the real issues. For politicians it is an easy strategy to blame China for all their own internal problems.
Most Chambers of Commerce such as the EUCCC and Amcham have a better insight and they little mention the demand for revaluation and suggest their governments to moderate the call for a higher RMB. Amcham mostly urges Washington to calm down on the revaluation and is not expected to change its attitude.
To read the full article, download this pdf: 101102rmb.pdf

The other side talks

Got this from a friend, interesting. I do not totally agree but at least I give “the other side” the possibility to voice its opinion. Too bad that in China “a different voice” is not tolerated. Foreigners better read this to understand how the average Chinese thinks about its country.
AN AWAKENING MESSAGE
A Poem by D.L. Lin (USA), dated April 2008.
Published by the Washington Post
When we were the Sick Man of Asia , We were called The Yellow Peril.
When we are billed to be the next Superpower, we are called The Threat.
When we closed our doors, you smuggled opium to open markets.
When we embrace Free Trade, You blame us for taking away your jobs.
When we were falling apart, You marched in your troops and wanted your fair share.
When we tried to put the broken pieces back together again, F.r.e.e T.i.b.e.t you screamed, It Was an Invasion!
When we tried Communism, you hated us for being Communist.
When we embrace Capitalism, you hate us for being Capitalist.
When we have a billion people, you said we were destroying the planet.
When we tried limiting our numbers, you said we abused human rights.
When we were poor, you thought we were dogs.
When we loan you cash, you blame us for your national debts.
When we build our industries, you call us Polluters.
When we sell you goods, you blame us for global warming.
When we buy oil, you call it exploitation and genocide.
But when you go to war for oil, you call it liberation.
When we were lost in chaos and rampage, you demanded rules of law.
When we uphold law and order against violence, you call it violating human rights.
When we were silent, you said you wanted us to have free speech.
When we are silent no more, you say we are brainwashed-xenophobics.
Why do you hate us so much, we asked.
No, you answered, we don’t hate you.
We don’t hate you either,
But, do you understand us?
Of course we do, you said,
We have AFP, CNN and BBC’s…
What do you really want from us?
Think hard first, then answer…
Because you only get so many chances.
Enough is Enough, Enough Hypocrisy for This One World.
We want One World, One Dream, and Peace on Earth.
This Big Blue Earth is Big Enough for all of us.
***********************************
The following is said to be from Duo-Liang Lin, Ph. D.
Professor Emeritus of Physics, University at Buffalo – State University of New York
When Japan was economically successful, it was Japan bashing. Now its China bashing when China is getting a bit successful. If you haven’t heard of China bashing before, the above poem pretty much summarized it. In the following paragraphs, I’ll try to clarify some of the facts and mindsets about China, hoping they can help some people to understand. The West (US & formerly Europe & Britain) practice hegemony and don’t seem to care what the third world feel at all. Third world countries have a right to grow, be strong and be successful too!
Inspite of the last 30 years of advance in city infrastructure and other hardwares, China is still a very poor country of 1.3 billion including a poverty-stricken farming population of 650 million, and a corrupt /backward government. Anyone who have been to China can see that. We in HK are so close to China that we probably know it better than anyone else. But the West blows the whole thing out of proportion, calling China a Superpower, and a threat, which is simply not the case. Author Helen Wang rightly pointed out in her book, saying … China is in many ways, too backward to qualify as a superpower … it has a long way to go. However what she should realize is that the West is using the rise of a Superpower as a convenient pretext to blame and bash China for their own economic woes and diplomatic failures. Yet business is business. Trade still go on as long as there is a profit.
As far as I can see, China has a lot of catching up to do. China has more internal problems than it can handle. China is more involved in solving its own problems, such as feeding its millions, providing them with jobs, keep the rich/poor gap narrow down, fighting corruption & inflation, and give people a decent living, etc. etc. So far the progress made are stained with blood, sweat and tears. Every time one uses an INTEL, HP or Apple, there are many parts inside that are made in China’s sweat shops. This is just one example which is all over the news in recent days. Cheap products from China actually kept US inflation down for years! Sounds like a win/win situation. However what does the average worker gets for assembling the IC chips … a mere US$120/m. They work very hard, but very very sad. I have stories to tell … much later.
Its really a conspiracy of the West to contain China from expansion, just like containing the Soviet Union from expansion in the Cold War days. Why is there a European Union and NATO, SEATO and other alliances? Its the post-WWII Western strategy to contain the two communist giants, a strategy which is still in force today, but rather out-dated, since Russia and China are no longer communists. Why does the US has over one thousand military bases around the world and seven fleets patrolling the seas? (China has none.) Because the politicians in the West have to justify their governments’ expenditure on the military. Because the arms dealers and manufacturers have to lobby the politicians to sell their weapons. Because the Western nations want to perpetuate a Western dominant world. Fair assessment?
200 years ago, after fallen behind the West, China was attacked by Britain first, then plundered, looted, colonized by a league of 8 nations, even conquered by Japan. The next 100 years, China suffered 2 revolutions, 2 World Wars, plus Civil War and internal struggle, China, as a nation, is flatout, downtrodden, and experiencing total collapse. All it wants now is to rebuild a country from its pieces, to give its people food, shelter, clothing, a decent life and restore some dignity to a “sick” nation. What can be more noble and humanistic than that? Many people do think China’s leaders deserve to be awarded a Nobel Peace Price for their contribution to lead a quarter of mankind out of poverty and starvation! President Gorbachev received a Nobel Peace Price for liberating the Soviet Union in 1989, a huge political change for Eastern Europe. I think China ‘s achievement is more internal, but economical change is just as great if not greater. Why the West are so negative about China! Fair assessment or not?
What about the arms race? The US and Russia have enough nuclear arsenal to destroy the world ten times over. But China can hardly defend itself against the real Superpowers. China just want to stand on its own two feet, and not being bullied by any other powers. If one should understand the Chinese mindset, our culture of Confucius, Mencius, Laotze, Chuangtze and Buddha, all teaches harmony among men, harmony between men and nature … what 5000 years of history has taught us that wars and killings will not solve any problems, but will create more problems. Thats why China’s leaders kept stressing China’s position is not to seek the first strike in any conflict, a sharp contrast to some other country’s “pre-emptive trike” mindset. China has not invaded any country in the last 200 years. China has not one soldier combating abroad today. It seems that China may not want to be a Superpower now. Its Economics 101 … guns or butter? The answer is clear.
Guess I spoke enough … not in defense or accusation, but to help international understanding.

Beijing’s 12th Five Year Plan: new appointment

On 2 July I had a meeting in the Mayor’s office, with Mayor Guo Jinlong, Vice Mayor Ji Lin, and others from the Beijing Government. I was appointed (the only foreigner!) as “Committee Member of the Specialist Working Group for the Beijing 12th Five Year Plan”.


It was the first meeting, where the Mayor and others reviewed the main issues and concerns for the 12th FYP as well as a view back on the results of the 11th FYP.
Details cannot be provided as they are confidential. But one issue was already in the press the same day – the merging of 4 Beijing districts into 2: Xicheng + Xuanwu and Dongcheng + Chongwen. I am also the Senior Adviser of Dongcheng District.
I had met the Mayor officially on 20 May in his office on the occasion of the presentation of the 2010 Great Wall friendship Awards.
The Award Winner’s meeting was chaired by Mr. Liu Zhi (sitting next to the Mayor and toasting with Bashar Samra of ING/Bank of Beijing). Mr. Liu was my boss when I was working in the Beijing Development and Reform Commission; he is now deputy secretary of the Beijing Government (Fu Mishu Zhang). During the meeting I delivered a short report on how to improve traffic management in Beijing.
pics
The award is given to foreigners (“foreign experts”) for their contribution to the city’s social and economic progress. It is the top honor for foreigners in Beijing, already given to 145 foreign experts from 28 countries. I received the award from the then Mayor, Wang Qishan, in 2004; he is now vice Premier.

Olivier Strebelle and the Athletes Alley

I haven’t been back in the Olympic Forest Park but I was told the gate on the West Side is now open and the statue can now be seen. The gardening was never completed, for obvious reasons (obvious to us!).
Cleaning up my many documents I stumbled on two documents:
– Publication dated September 2008 of the Belgian-Chinese Economic and Commercial Council, with an interview of the artist. The story told is part hilarious and part sad. A complete distortion of the facts, nothing ever happened that way. Just to suit some (famous) people in Belgium  who have selective amnesia. I use the story of the project as an illustration on ”How to do successful lobbying in China and how consulting companies can be the victim of dishonest foreign counterparts”. The story is very popular and I used it in several EMBA seminars.
Download: 080901strebelle.pdf
click to enlarge
one the seminars on lobbying
– A Chinese publication that reports the signing of the agreement covering the donation by The Kingdom of Belgium to the City of Beijing, ceremony held on 14 August 2007 at the Beijing Municipal Planning Commission. Pictured are Ambassador Bernard Pierre and myself.
Download: https://blog.strategy4china.com/wp-content/uploads/070814art.pdf
More details about the sculpture, search this blog…

Stinking rich China?

I like this cartoon (Patrick Chappatte), published in the International Herald Tribune on 14 January.
Why? Well, here Chinese can be often “racist”, typically depicting foreigners as fat guys, smoking cigars (and sometimes driving big cars).

click to enlarge

click to enlarge


Now, the other way around. Cool. Mr. USA biting the dust on a Made-in-China bike.
Looks actually more realistic than the usual China Daily versions. Just have look at the Beijing traffic. And smoking cigars in the USA, well good luck. In China basically we still can puff wherever we feel like.