On February 16, BEGIN WITH HISTORY
the age of the Chinese civilization
3 examples showing the importance of Chinese history in understanding present day China
how DOES the length of Chinese history affect negotiations in mainland China today
3 ways to accelerate negotiation in mainland China
ART
2 reasons why Chinese art objects can be profitably traded in the United States
two importance differences between Chinese art and Western art
PHILOSOPHIES
China's three major philosophies
compare communism to religions
why IS understanding Chinese philosophies important for doing business with China
Confucianis Thought
When born
To Govern a great commonwealth … choose
What is the basis for ren
Jun zi (gentleman)
Ren is most efficient behavior
Two quotes from the Confucian Analects
What is the first phrase in the Confucian Analects?
What is the Confucian Analects?
When was he born?
What is the basis of Confucianist Thought?
How would the modern Confucianist treat his workers?
… his boss?
… his colleagues
Would Confucianist thought be applicable today?
Why or why not?
Up to here for the exam
Monday, February 23, 2009
Agenda feb 18 59201
agenda
59201 – feb 18
test next Monday, to cover up to what we cover this Wednesday
e.g.
What is the usg’s definition of china?
Ans:
attendance
articles
groups
update on book – taking a long time
CHECK http://leespeaking.blogspot.com/
themes of the weeks
PRESENTATION
ARTICLES
schedule of exams
continue discussions
PHILOSOPHIES
China's three major philosophies
compare communism to religions
why understanding Chinese philosophies is important for doing business with China
CONFUCIANISt THOUGHT
two qualifications
two quotes from ConfuciAN Analects
when Confucius was born
test up to here…
59201 – feb 18
test next Monday, to cover up to what we cover this Wednesday
e.g.
What is the usg’s definition of china?
Ans:
attendance
articles
groups
update on book – taking a long time
CHECK http://leespeaking.blogspot.com/
themes of the weeks
PRESENTATION
ARTICLES
schedule of exams
continue discussions
PHILOSOPHIES
China's three major philosophies
compare communism to religions
why understanding Chinese philosophies is important for doing business with China
CONFUCIANISt THOUGHT
two qualifications
two quotes from ConfuciAN Analects
when Confucius was born
test up to here…
Agenda feb 18 59202
feb18 59202
how the modern Confucius would treat his boss
how modern Confucius would treat his employee
how Confucius would treat his colleagues
one explanation of "Jen" (ren)
jun zi
whether Confucianist ethics would be applicable in today's society
test up to here
how the modern Confucius would treat his boss
how modern Confucius would treat his employee
how Confucius would treat his colleagues
one explanation of "Jen" (ren)
jun zi
whether Confucianist ethics would be applicable in today's society
test up to here
Sunday, February 22, 2009
UPDATE TO DOING BUSINESS IN GREATER CHINA
According to the article, only about one-third of multinational corporations have ever made a profit in China.
UPDATE 2006
http://www.businessweek.com/smallbiz/content/jan2006/sb20060105_958312.htm
culture
Http://www.legacee.com/Culture/CultureOverview.html
Xinhua’s new ban to be nothing more than a useless power play spurred on by China’s communist bureaucracy, which has become accustomed to freely manipulating public policy. This ridiculous notion will not however survive under WTO supervision, a powerful force which will ensure that free financial information flow will continue to provide growing Chinese firms the elemental foundations for expansion and opportunity, factors which will ultimately enrich the Chinese population providing more jobs and economic prosperity.
Source Article: http://www.ft.com/cms/s/0/4a335dda-e8c4-11dc-913a0000779fd2ac.html
The main implication of doing business in China that we discussed in class that relates to some of the topics from this article is that China was then and still is a communist country.
Website: http://www.amanet.org/editorial/chinabusiness.htm
B. The business lesson here is that learning what the culture, traditions, market research, etc. is not always enough to break into any industry in Greater China. There is an awful bureaucratic system that takes place in order to establish there.
article link:
http://www.doingbusiness.org/ExploreTopics/StartingBusiness/Details.aspx?economyid=42
“Conditions at Chinese toy factories called 'brutal'”, by David Barboza, this article is about the Chinese work conditions in toy manufacturing. Many companies were under investigation due to the illegal treatment of employees. The companies in China are well known in the United States, even though the factories mistreating the workers, companies in the US continued to do business with them. “...brutal conditions" and illegal practices that exist in Chinese toy factories, many of which supply some of the world's biggest brand name toy makers, including Disney, Hasbro and Sega”.
http://www.iht.com/articles/2007/08/21/business/toyside.php
The article emphasizes how crucial it is to research foreign partners and how U.S.
Department of Commerce offices in Beijing, Chengdu, Guangzhou, Shanghai,
Shenyang, and Hong Kong can provide lists of local business service providers,
consultants, and law firms.
(http://www.buyusa.gov/pittsburgh/adviceforchina.html)
After 1978, his successor DENG Xiaoping and other leaders focused on market-oriented economic development and by 2000 output had quadrupled. For much of the population, living standards have improved dramatically and the room for personal choice has expanded, yet political controls remain tight.
STATE AND CIA PRIMARILy USE OFFIICIAL DATA; so 'dramatic improvement" is questionable. Better than before. true; drmatic? questionable.
http://globaledge.msu.edu/countryInsights/country.asp?countryID=17®ionID=3
However, despite spectacular economic growth, exports, and inward investment, China's business climate still remains patchy for foreign companies, according to a survey conducted in March and April 2005 in the United States, the United Kingdom, and Japan by the Center for International Business at the Tuck School of Business at Dartmouth. Again questionable on "spectacular" growth; patchy investment climate - agree.
http://www.tuck.dartmouth.edu/news/releases/pr20050524_china.html
As the entire world observed in August at the 2008 Olympic Games in Beijing, China has emerged with unparalleled force onto the world stage. Most businesses are aware of the lure of the Chinese market, and stories abound of unbridled opportunities and potential for financial gain. But with all great opportunities come significant risks. My experience practicing at an international law firm in Beijing, China, taught me first-hand that not every business can, or should, go to China. This experience also helped me gain some insight as to what any attorney advising a client about doing business in China should keep in mind.
http://www.thecompletelawyer.com/international-business/asia/in-china-you-play-by-another-set-of-rules-386.html
If the host country’s regulatory policies are too stringent, it may be hard for firms to operate and this would prohibit international business. If the opposite occurs, and regulatory polices laxed, then the local markets and economies would be corrupt and in disarray. The lesson is a very important one, for it brings new light to this issue that has been extensively researched and reported in recent times. The lesson further shows the complexity in international business and conveys the difficulty, for both firms and governments, to reach a business agreement that is fair to both parties.
Article: http://ageconsearch.umn.edu/handle/30689
UPDATE 2006
http://www.businessweek.com/smallbiz/content/jan2006/sb20060105_958312.htm
culture
Http://www.legacee.com/Culture/CultureOverview.html
Xinhua’s new ban to be nothing more than a useless power play spurred on by China’s communist bureaucracy, which has become accustomed to freely manipulating public policy. This ridiculous notion will not however survive under WTO supervision, a powerful force which will ensure that free financial information flow will continue to provide growing Chinese firms the elemental foundations for expansion and opportunity, factors which will ultimately enrich the Chinese population providing more jobs and economic prosperity.
Source Article: http://www.ft.com/cms/s/0/4a335dda-e8c4-11dc-913a0000779fd2ac.html
The main implication of doing business in China that we discussed in class that relates to some of the topics from this article is that China was then and still is a communist country.
Website: http://www.amanet.org/editorial/chinabusiness.htm
B. The business lesson here is that learning what the culture, traditions, market research, etc. is not always enough to break into any industry in Greater China. There is an awful bureaucratic system that takes place in order to establish there.
article link:
http://www.doingbusiness.org/ExploreTopics/StartingBusiness/Details.aspx?economyid=42
“Conditions at Chinese toy factories called 'brutal'”, by David Barboza, this article is about the Chinese work conditions in toy manufacturing. Many companies were under investigation due to the illegal treatment of employees. The companies in China are well known in the United States, even though the factories mistreating the workers, companies in the US continued to do business with them. “...brutal conditions" and illegal practices that exist in Chinese toy factories, many of which supply some of the world's biggest brand name toy makers, including Disney, Hasbro and Sega”.
http://www.iht.com/articles/2007/08/21/business/toyside.php
The article emphasizes how crucial it is to research foreign partners and how U.S.
Department of Commerce offices in Beijing, Chengdu, Guangzhou, Shanghai,
Shenyang, and Hong Kong can provide lists of local business service providers,
consultants, and law firms.
(http://www.buyusa.gov/pittsburgh/adviceforchina.html)
After 1978, his successor DENG Xiaoping and other leaders focused on market-oriented economic development and by 2000 output had quadrupled. For much of the population, living standards have improved dramatically and the room for personal choice has expanded, yet political controls remain tight.
STATE AND CIA PRIMARILy USE OFFIICIAL DATA; so 'dramatic improvement" is questionable. Better than before. true; drmatic? questionable.
http://globaledge.msu.edu/countryInsights/country.asp?countryID=17®ionID=3
However, despite spectacular economic growth, exports, and inward investment, China's business climate still remains patchy for foreign companies, according to a survey conducted in March and April 2005 in the United States, the United Kingdom, and Japan by the Center for International Business at the Tuck School of Business at Dartmouth. Again questionable on "spectacular" growth; patchy investment climate - agree.
http://www.tuck.dartmouth.edu/news/releases/pr20050524_china.html
As the entire world observed in August at the 2008 Olympic Games in Beijing, China has emerged with unparalleled force onto the world stage. Most businesses are aware of the lure of the Chinese market, and stories abound of unbridled opportunities and potential for financial gain. But with all great opportunities come significant risks. My experience practicing at an international law firm in Beijing, China, taught me first-hand that not every business can, or should, go to China. This experience also helped me gain some insight as to what any attorney advising a client about doing business in China should keep in mind.
http://www.thecompletelawyer.com/international-business/asia/in-china-you-play-by-another-set-of-rules-386.html
If the host country’s regulatory policies are too stringent, it may be hard for firms to operate and this would prohibit international business. If the opposite occurs, and regulatory polices laxed, then the local markets and economies would be corrupt and in disarray. The lesson is a very important one, for it brings new light to this issue that has been extensively researched and reported in recent times. The lesson further shows the complexity in international business and conveys the difficulty, for both firms and governments, to reach a business agreement that is fair to both parties.
Article: http://ageconsearch.umn.edu/handle/30689
Wednesday, February 18, 2009
59202 materials covered February 16
REVIEW
Business Implications OF THE POLITICAL SYSTEMS OF THE 3 ECONOMIES IN GREATER CHINA
THEN AND NOW: could be different, could be similar, depending on whether conditions and systems have changed much
IN 1987
$50 millon or more joint ventures – many approvals, including National People’s Congress
MAINLAND CHINA – COMMUNIST
TAIWAN – MIXED ECONOMY
HK – LAISSEZ FAIRE LOTS OF small and medium size companies – a British Colony
Perception in Taiwan – Mainland China is the place to go to make lots of money
In 2009
$50 millon or more joint ventures – many approvals, including National People’s Congress
The systems have not changed much; so business and investment climates have not changed much
MAINLAND CHINA – COMMUNIST
TAIWAN – MIXED ECONOMY
HK – LAISSEZ FAIRES LOTS OF small and medium size companies – now under the political control of Mainland China
Survey by the Democratic Progressive Party = 90% of Taiwan’s Chinese investors in Mainland China are not making profits.
BIG NEW SIMILARITY: ALL 3 ECONOMIES ARE IN SERIOUS RECESSION, JUST LIKE THE REST OF THE WORLD
THEN very different from Now
Then
the relative availability of business opportunities in these three economies in the short run and in the long run:
short run –
long run –
PRC pushing exports
Now even more
Short run –
Long run
PRC really pushing exports
The proper names to use for the capital of "China" when you are in mainland China, Hong Kong and Taiwan:
… why?
NEW
THEN AND NOW
Perception in Taiwan – Mainland China is the place to go to make lots of money
In 2009
$50 millon or more joint ventures – many approvals, including National People’s Congress
The systems have not changed much; so business and investment climates have not changed much
MAINLAND CHINA – COMMUNIST
TAIWAN – MIXED ECONOMY
HK – LAISSEZ FAIRES LOTS OF small and medium size companies – now under the political control of Mainland China
NOW
Survey by the Democratic Progressive Party = 90% of Taiwan’s Chinese investors in Mainland China are not making profits.
BIG NEW SIMILARITY: ALL 3 ECONOMIES ARE IN SERIOUS RECESSION, JUST LIKE THE REST OF THE WORLD
Compare by examples the relative ease of doing business in the three economies of Greater China
Two cases in PRC – one, service jv, 5 years to complete negotiations; another 2 years before production can begin plus up front costs, etc.
Hong Kong – representative office for major us company – 4 hours to set up; same jv as second example in PRC – on the market in 6 weeks, no up front costs, no etc.
In Taiwan, large jv approved in weeks
THEN very different from Now
Then?
the relative availability of business opportunities in these three economies in the short run and in the long run:
short run – roc, hk, prc
long run – prc, roc, hk, if ….
PRC pushing exports
Now
Short run – prc, roc, hk
Long run – prc, roc, hk
PRC really pushing exports
The proper names to use for the capital of "China" when you are in mainland China, Hong Kong and Taiwan: Beijing, Beijing, Beiping … why?
Be respectful always
ART
Profitable? Why? 2 reasons
Wahlberg - .5 pt
Nanch .5 pt.
Ian .5 pt.
Yang .5 pt.
Tony – association? .5 pt.
Shauna – rare? .5 pt.
Labor-intensive
Technique intensive
Transparency international
Differences?
Key Philosophies in China:
Confusianist thought
Troy 1 pt.
Filial piety – part of Chinese thinking and culture
Ladd .5 pt.
Daoist thought
Ian 1 pt.
Buddhist thought
Hu 1 pt.
Communist thought
Mark .5 pt.
Yang .5 pt.
How is communism like a religion?
Party lines …
.5 ladd
Why is knowing philosophy important for doing business in greater china?
Confuianist thought
Philosophies
Up through basis of confucianist thought
Business Implications OF THE POLITICAL SYSTEMS OF THE 3 ECONOMIES IN GREATER CHINA
THEN AND NOW: could be different, could be similar, depending on whether conditions and systems have changed much
IN 1987
$50 millon or more joint ventures – many approvals, including National People’s Congress
MAINLAND CHINA – COMMUNIST
TAIWAN – MIXED ECONOMY
HK – LAISSEZ FAIRE LOTS OF small and medium size companies – a British Colony
Perception in Taiwan – Mainland China is the place to go to make lots of money
In 2009
$50 millon or more joint ventures – many approvals, including National People’s Congress
The systems have not changed much; so business and investment climates have not changed much
MAINLAND CHINA – COMMUNIST
TAIWAN – MIXED ECONOMY
HK – LAISSEZ FAIRES LOTS OF small and medium size companies – now under the political control of Mainland China
Survey by the Democratic Progressive Party = 90% of Taiwan’s Chinese investors in Mainland China are not making profits.
BIG NEW SIMILARITY: ALL 3 ECONOMIES ARE IN SERIOUS RECESSION, JUST LIKE THE REST OF THE WORLD
THEN very different from Now
Then
the relative availability of business opportunities in these three economies in the short run and in the long run:
short run –
long run –
PRC pushing exports
Now even more
Short run –
Long run
PRC really pushing exports
The proper names to use for the capital of "China" when you are in mainland China, Hong Kong and Taiwan:
… why?
NEW
THEN AND NOW
Perception in Taiwan – Mainland China is the place to go to make lots of money
In 2009
$50 millon or more joint ventures – many approvals, including National People’s Congress
The systems have not changed much; so business and investment climates have not changed much
MAINLAND CHINA – COMMUNIST
TAIWAN – MIXED ECONOMY
HK – LAISSEZ FAIRES LOTS OF small and medium size companies – now under the political control of Mainland China
NOW
Survey by the Democratic Progressive Party = 90% of Taiwan’s Chinese investors in Mainland China are not making profits.
BIG NEW SIMILARITY: ALL 3 ECONOMIES ARE IN SERIOUS RECESSION, JUST LIKE THE REST OF THE WORLD
Compare by examples the relative ease of doing business in the three economies of Greater China
Two cases in PRC – one, service jv, 5 years to complete negotiations; another 2 years before production can begin plus up front costs, etc.
Hong Kong – representative office for major us company – 4 hours to set up; same jv as second example in PRC – on the market in 6 weeks, no up front costs, no etc.
In Taiwan, large jv approved in weeks
THEN very different from Now
Then?
the relative availability of business opportunities in these three economies in the short run and in the long run:
short run – roc, hk, prc
long run – prc, roc, hk, if ….
PRC pushing exports
Now
Short run – prc, roc, hk
Long run – prc, roc, hk
PRC really pushing exports
The proper names to use for the capital of "China" when you are in mainland China, Hong Kong and Taiwan: Beijing, Beijing, Beiping … why?
Be respectful always
ART
Profitable? Why? 2 reasons
Wahlberg - .5 pt
Nanch .5 pt.
Ian .5 pt.
Yang .5 pt.
Tony – association? .5 pt.
Shauna – rare? .5 pt.
Labor-intensive
Technique intensive
Transparency international
Differences?
Key Philosophies in China:
Confusianist thought
Troy 1 pt.
Filial piety – part of Chinese thinking and culture
Ladd .5 pt.
Daoist thought
Ian 1 pt.
Buddhist thought
Hu 1 pt.
Communist thought
Mark .5 pt.
Yang .5 pt.
How is communism like a religion?
Party lines …
.5 ladd
Why is knowing philosophy important for doing business in greater china?
Confuianist thought
Philosophies
Up through basis of confucianist thought
59201 materials covered February 16
necessary conditions for doing international business
types of international business
trade
representative office
investment
Size of the markt depends on, at least,
per capita income and
# of people
THEN and NOW
Group 2 - Wednesday
Start here next time
3 ways to accelerate negotiatiocon in mainland China
First question on test next Monday, February 23
1. What is the USG’S definition of China
What is our definition of Greater China
who is right?
Why?
ANSWERS WILL BE IN WORDS AND NOT MULTIPLE CHOICE.
Business Implications OF THE POLITICAL SYSTEMS OF THE 3 ECONOMIES IN GREATER CHINA
THEN AND NOW: could be different, could be similar, depending on whether conditions and systems have changed much
IN 1987 – approvals – in general; specifically
Now – approvals – in general; specifically
$50 millon or more joint ventures – many approvals, including
Systerms
MAINLAND CHINA –
TAIWAN –
HK – LAISSEZ FAIRE LOTS OF small and medium size companies – a British Colony
Perception in Taiwan – Mainland China is the place to go to make lots of money, yet …
In 2009 …
$50 millon or more joint ventures – many approvals, including National People’s Congress
Survey by the Democratic Progressive Party = 90% of Taiwan’s Chinese investors in Mainland China are not making profits.
BIG NEW SIMILARITY: ALL 3 ECONOMIES ARE IN SERIOUS RECESSION, JUST LIKE THE REST OF THE WORLD
Compare by examples the relative ease of doing business in the three economies of Greater China
Two cases in PRC –
Hong Kong – representative office for major us company – 4 hours to set up; same jv as second example in PRC – on the market in 6 weeks, no up front costs, no etc.
In Taiwan, large jv approved in weeks
THEN very different from Now
Then
the relative availability of business opportunities in these three economies in the short run and in the long run:
short run – roc, hk, prc
long run – prc, roc, hk, if ….
PRC pushing exports
Now
Short run – prc, roc, hk
Long run – prc, roc, hk
PRC really pushing exports
The proper names to use for the capital of "China" when you are in mainland China, Hong Kong and Taiwan: Beijing, Beijing, Beiping … why?
TEST NEXT MONDAY will cover through this Wednesday
Through part of philosophy
Next Confucianist thought
types of international business
trade
representative office
investment
Size of the markt depends on, at least,
per capita income and
# of people
THEN and NOW
Group 2 - Wednesday
Start here next time
3 ways to accelerate negotiatiocon in mainland China
First question on test next Monday, February 23
1. What is the USG’S definition of China
What is our definition of Greater China
who is right?
Why?
ANSWERS WILL BE IN WORDS AND NOT MULTIPLE CHOICE.
Business Implications OF THE POLITICAL SYSTEMS OF THE 3 ECONOMIES IN GREATER CHINA
THEN AND NOW: could be different, could be similar, depending on whether conditions and systems have changed much
IN 1987 – approvals – in general; specifically
Now – approvals – in general; specifically
$50 millon or more joint ventures – many approvals, including
Systerms
MAINLAND CHINA –
TAIWAN –
HK – LAISSEZ FAIRE LOTS OF small and medium size companies – a British Colony
Perception in Taiwan – Mainland China is the place to go to make lots of money, yet …
In 2009 …
$50 millon or more joint ventures – many approvals, including National People’s Congress
Survey by the Democratic Progressive Party = 90% of Taiwan’s Chinese investors in Mainland China are not making profits.
BIG NEW SIMILARITY: ALL 3 ECONOMIES ARE IN SERIOUS RECESSION, JUST LIKE THE REST OF THE WORLD
Compare by examples the relative ease of doing business in the three economies of Greater China
Two cases in PRC –
Hong Kong – representative office for major us company – 4 hours to set up; same jv as second example in PRC – on the market in 6 weeks, no up front costs, no etc.
In Taiwan, large jv approved in weeks
THEN very different from Now
Then
the relative availability of business opportunities in these three economies in the short run and in the long run:
short run – roc, hk, prc
long run – prc, roc, hk, if ….
PRC pushing exports
Now
Short run – prc, roc, hk
Long run – prc, roc, hk
PRC really pushing exports
The proper names to use for the capital of "China" when you are in mainland China, Hong Kong and Taiwan: Beijing, Beijing, Beiping … why?
TEST NEXT MONDAY will cover through this Wednesday
Through part of philosophy
Next Confucianist thought
WHO GOVERNS TAIWAN
Taiwan was part of the Chinese government until 1895, when the Qing Dynasty allowed the Japasnese to govern it until 1945 at the end of WWII. In 1945, the Republic of China governed Taiwan as part of the one government of all China, the Republic of China (ROC). Then during the Chinese Civil War of 1947-1949, the People's Republic of China (PRC) took over as the government of Mainland China after the PRC defeated the ROC in 1949. The ROC government fled to Quemoy/Matsu where the PRC could not defeat the ROC. So, the PRC ruled over Mainland China while the ROC ruled over Taiwan, including Quemoy/Matus from 1949 until today. What decided who governs over Mainland China and Taiwan was decided, not by logic nor historical presidence, but by war. In a word, China now had two governments, one over Mainland China and one in Taiwan.
From 1912 to 1979, the US Government recognized only the ROC as the legitimate government of all China; from 1949 to 1979, the USG did not recognize the Communist PRC government as a legitimate government because it was Communist and the USG was opposed to all communist governments, including the Soviet Union and Vietnam. At that time the Viet Cong controlled north Vietnam and South Vietnam was governed by another government. After the US left Vietnam, the Viet Cong government defeated the then government of South Vietnam and took control of all Viet Nam. Again the Viet Cong government now governs all io Vietnam, not because of logic or historical presidence, but because it won the war.
In 1979, the USG asked to be "friends" of the PRC, so that the PRC can help annoy the Soviet Union. The PRC agreed, if the USG agreed to a number of conditions outlined in the Shanghai Communiques. One of these conditions was that the USG would publicly only acknowledge the PRCG as the legitimate government of both Mainland China and Taiwan. This acknowledgement by the USG did not mean that the PRCG actually governed Taiwan, it just meant that the USG agreed to call the PRCG the only government of all that the PRCG claimed to be China, including Taiwan. Shortly after that the US Congress pass a law, called the Taiwan Relations Act, to protect the interests of Taiwan and the ROCG. That law included a phrase that if either the PRCG or the "Taiwan Authorities" used force to try to over the other side, the USG would view such actions "gravely." This last word is a diplomatic that meant that the USG may use military force to prevent any forceful over by either side of China to take over the other side.
From 1912 to 1979, the US Government recognized only the ROC as the legitimate government of all China; from 1949 to 1979, the USG did not recognize the Communist PRC government as a legitimate government because it was Communist and the USG was opposed to all communist governments, including the Soviet Union and Vietnam. At that time the Viet Cong controlled north Vietnam and South Vietnam was governed by another government. After the US left Vietnam, the Viet Cong government defeated the then government of South Vietnam and took control of all Viet Nam. Again the Viet Cong government now governs all io Vietnam, not because of logic or historical presidence, but because it won the war.
In 1979, the USG asked to be "friends" of the PRC, so that the PRC can help annoy the Soviet Union. The PRC agreed, if the USG agreed to a number of conditions outlined in the Shanghai Communiques. One of these conditions was that the USG would publicly only acknowledge the PRCG as the legitimate government of both Mainland China and Taiwan. This acknowledgement by the USG did not mean that the PRCG actually governed Taiwan, it just meant that the USG agreed to call the PRCG the only government of all that the PRCG claimed to be China, including Taiwan. Shortly after that the US Congress pass a law, called the Taiwan Relations Act, to protect the interests of Taiwan and the ROCG. That law included a phrase that if either the PRCG or the "Taiwan Authorities" used force to try to over the other side, the USG would view such actions "gravely." This last word is a diplomatic that meant that the USG may use military force to prevent any forceful over by either side of China to take over the other side.
Monday, February 16, 2009
Section 3 - February 16
Chinese History, Art, Philosophy, language and food
On February 16, BEGIN WITH HISTORY
the age of the Chinese civilization
3 examples showing the importance of Chinese history in understanding present day China
how DOES the length of Chinese history affect negotiations in mainland China today
3 ways to accelerate negotiation in mainland China
ART
2 reasons why Chinese art objects can be profitably traded in the United States
two importance differences between Chinese art and Western art
PHILOSOPHIES
China's three major philosophies
compare communism to religions
why IS understanding Chinese philosophies important for doing business with China
NEXT CONFUCIANIST THOUGHT
When born
To Govern a great commonwealth … choose
What is the basis for
Two quotes from the Confucian Analects
What is the first phrase in the Confucian Analects?
What is the Confucian Analects?
When was he born?
What is the basis of Confucianist Thought?
How would the modern Confucianist treat his workers?
… his boss?
… his colleagues
Would Confucianist thought be applicable today?
Why or why not?
Section 3
George W. Bush's current policies toward China in light of the policies established in 1979. Even though the former Soviet Union no longer exists, the USG’s one China policy, established to blunt the Soviet threat …
Our definition of Greater China is
Business Implications
Compare by examples the relative ease of doing business in the three economies of Greater China
relative availability of business opportunities in these three economies in the short run and in the long run
then: (in order of importance) …
2009: (in order of importance) …
Then and now
the proper names to use for the capital of "China" when you are in mainland China, Hong Kong and Taiwan are:
Our definition of Greater China is
Business Implications
Compare by examples the relative ease of doing business in the three economies of Greater China
relative availability of business opportunities in these three economies in the short run and in the long run
then: (in order of importance) …
2009: (in order of importance) …
Then and now
the proper names to use for the capital of "China" when you are in mainland China, Hong Kong and Taiwan are:
Business Implications OF THE POLITICAL SYSTEMS OF THE 3 ECONOMIES IN GREATER CHINA
THEN AND NOW: could be different, could be similar, depending on whether conditions and systems have changed much
IN 1987
$50 millon or more joint ventures – many approvals, including National People’s Congress
MAINLAND CHINA – COMMUNIST
TAIWAN – MIXED ECONOMY
HK – LAISSEZ FAIRE LOTS OF small and medium size companies – a British Colony
Perception in Taiwan – Mainland China is the place to go to make lots of money
In 2009
$50 millon or more joint ventures – many approvals, including National People’s Congress
The systems have not changed much; so business and investment climates have not changed much
MAINLAND CHINA – COMMUNIST
TAIWAN – MIXED ECONOMY
HK – LAISSEZ FAIRES LOTS OF small and medium size companies – now under the political control of Mainland China
Survey by the Democratic Progressive Party = 90% of Taiwan’s Chinese investors in Mainland China are not making profits.
BIG NEW SIMILARITY: ALL 3 ECONOMIES ARE IN SERIOUS RECESSION, JUST LIKE THE REST OF THE WORLD
Compare by examples the relative ease of doing business in the three economies of Greater China
Two cases in PRC – one, service jv, 5 years to complete negotiations; another 2 years before production can begin plus up front costs, etc.
Hong Kong – representative office for major us company – 4 hours to set up; same jv as second example in PRC – on the market in 6 weeks, no up front costs, no etc.
In Taiwan, large jv approved in weeks
THEN AND NOW: could be different, could be similar, depending on whether conditions and systems have changed much
IN 1987
$50 millon or more joint ventures – many approvals, including National People’s Congress
MAINLAND CHINA – COMMUNIST
TAIWAN – MIXED ECONOMY
HK – LAISSEZ FAIRE LOTS OF small and medium size companies – a British Colony
Perception in Taiwan – Mainland China is the place to go to make lots of money
In 2009
$50 millon or more joint ventures – many approvals, including National People’s Congress
The systems have not changed much; so business and investment climates have not changed much
MAINLAND CHINA – COMMUNIST
TAIWAN – MIXED ECONOMY
HK – LAISSEZ FAIRES LOTS OF small and medium size companies – now under the political control of Mainland China
Survey by the Democratic Progressive Party = 90% of Taiwan’s Chinese investors in Mainland China are not making profits.
BIG NEW SIMILARITY: ALL 3 ECONOMIES ARE IN SERIOUS RECESSION, JUST LIKE THE REST OF THE WORLD
Compare by examples the relative ease of doing business in the three economies of Greater China
Two cases in PRC – one, service jv, 5 years to complete negotiations; another 2 years before production can begin plus up front costs, etc.
Hong Kong – representative office for major us company – 4 hours to set up; same jv as second example in PRC – on the market in 6 weeks, no up front costs, no etc.
In Taiwan, large jv approved in weeks
THEN and NOW
Business conditions in the economies of greater china may change over time or they remain about the same. If the factors that determine business conditions don’t change much, then business conditions may not change much. For example, doing business with Mainland China is still usually with government officials rather than private business people. Officials have little interest in dealing a lot of business deals, since their salary remains the same if they conclude a few deals a year or many deals a year. Also if many deals are done, then many errors can occur. The more errors an official makes, the more chances he has of getting into trouble.
HISTORY – THEN I
China has one of oldest continuous histories in the world. Until about 15 years ago, most historians thought that written Chinese history began about 5000 years ago. Then a discovery in Si Chuan China pushed this date to about 7000 years.
The US has a history of just 233 years, yet students of US history know that is a tremendous amount of US historical facts to study. Chinese written history is more than 20 times as long.
China’s s long history slows business negotiations. Chinese officials often say don’t be in such a history. You Americans are always in a hurry. In Chinese historical terms, a few years more means very little.” In doing business, however, time is money. So, while you should always be polite and respectful, you should always try to accelerate the process.
It has been said that one thing we learn from history is that people do not learn from history. If you want to understand why Chinese people behave the way they do, you should study Chinese history.
NOW
For example, if you want to know why officials and private citizens in Mainland China behave the way they do, you must understand the history of Communism in Mainland China.
One example is knowing that the length of Chinese history slows negotiations in mainland China today. Another is understanding that, since China was ruled by kings (sometimes queens) for at least 5000 years, Chinese people still treat their leaders as kings (or queens). Thus, when the Chinese leaders talk, everybody listens. This is also somewhat true in the US, but somewhat less. Another example is that the kings (queens) of China were also called “Tian Zi” or sons (daughters) of heaven. So, they were treated like deities.
Then and Now
Confucian Analects
Sun Zi – ART OF WAR – Then: Wade Giles Romanization; Now: ping ying Romanization, even in Taiwan
Romance of the Three Kingdoms
Business conditions in the economies of greater china may change over time or they remain about the same. If the factors that determine business conditions don’t change much, then business conditions may not change much. For example, doing business with Mainland China is still usually with government officials rather than private business people. Officials have little interest in dealing a lot of business deals, since their salary remains the same if they conclude a few deals a year or many deals a year. Also if many deals are done, then many errors can occur. The more errors an official makes, the more chances he has of getting into trouble.
HISTORY – THEN I
China has one of oldest continuous histories in the world. Until about 15 years ago, most historians thought that written Chinese history began about 5000 years ago. Then a discovery in Si Chuan China pushed this date to about 7000 years.
The US has a history of just 233 years, yet students of US history know that is a tremendous amount of US historical facts to study. Chinese written history is more than 20 times as long.
China’s s long history slows business negotiations. Chinese officials often say don’t be in such a history. You Americans are always in a hurry. In Chinese historical terms, a few years more means very little.” In doing business, however, time is money. So, while you should always be polite and respectful, you should always try to accelerate the process.
It has been said that one thing we learn from history is that people do not learn from history. If you want to understand why Chinese people behave the way they do, you should study Chinese history.
NOW
For example, if you want to know why officials and private citizens in Mainland China behave the way they do, you must understand the history of Communism in Mainland China.
One example is knowing that the length of Chinese history slows negotiations in mainland China today. Another is understanding that, since China was ruled by kings (sometimes queens) for at least 5000 years, Chinese people still treat their leaders as kings (or queens). Thus, when the Chinese leaders talk, everybody listens. This is also somewhat true in the US, but somewhat less. Another example is that the kings (queens) of China were also called “Tian Zi” or sons (daughters) of heaven. So, they were treated like deities.
Then and Now
Confucian Analects
Sun Zi – ART OF WAR – Then: Wade Giles Romanization; Now: ping ying Romanization, even in Taiwan
Romance of the Three Kingdoms
Wednesday, February 11, 2009
Feb 11 content
our definition of Greater China
who is right?
Why?
Business Implications OF THE POLITICAL SYSTEMS OF THE 3 ECONOMIES IN GREATER CHINA
THEN AND NOW: could be different, could be similar, depending on whether conditions and systems have changed much
IN 1987
$50 millon or more joint ventures – many approvals, including National People’s Congress
MAINLAND CHINA – COMMUNIST
TAIWAN – MIXED ECONOMY
HK – LAISSEZ FAIRE LOTS OF small and medium size companies – a British Colony
Perception in Taiwan – Mainland China is the place to go to make lots of money
In 2009
$50 millon or more joint ventures – many approvals, including National People’s Congress
The systems have not changed much; so business and investment climates have not changed much
MAINLAND CHINA – COMMUNIST
TAIWAN – MIXED ECONOMY
HK – LAISSEZ FAIRES LOTS OF small and medium size companies – now under the political control of Mainland China
Survey by the Democratic Progressive Party = 90% of Taiwan’s Chinese investors in Mainland China are not making profits.
BIG NEW SIMILARITY: ALL 3 ECONOMIES ARE IN SERIOUS RECESSION, JUST LIKE THE REST OF THE WORLD
Compare by examples the relative ease of doing business in the three economies of Greater China
Two cases in PRC – one, service jv, 5 years to complete negotiations; another 2 years before production can begin plus up front costs, etc.
Hong Kong – representative office for major us company – 4 hours to set up; same jv as second example in PRC – on the market in 6 weeks, no up front costs, no etc.
In Taiwan, large jv approved in weeks
THEN very different from Now
Then
the relative availability of business opportunities in these three economies in the short run and in the long run:
short run – roc, hk, prc
long run – prc, roc, hk, if ….
PRC pushing exports
Now
Short run – prc, roc, hk
Long run – prc, roc, hk
PRC really pushing exports
The proper names to use for the capital of "China" when you are in mainland China, Hong Kong and Taiwan: Beijing, Beijing, Beiping … why?
Tuesday, February 10, 2009
TEST SCHEDULE
Test schedule
Test 1: Monday feb 23
Test 2: Monday Mar 16
Test 3: Monday April 27
FINAL EXAM? First Monday of exam week at 7 pm for 59203
Test 1: Monday feb 23
Test 2: Monday Mar 16
Test 3: Monday April 27
FINAL EXAM? First Monday of exam week at 7 pm for 59203
THEME OF THE WEEK
Theme of the week:
WEEK: THEME
- Definition of China
- Necessary conditions for International Business
- Chinese culture: art, history
- Chinese language –
- Chinese philosophy group 4
- Great leap forward
- Cultural revolution
- Political System in Taiwan
- Political System in Hong Kong
- Political System in Mainland China
- Economic system in Taiwan
- Economic system in Hong Kong
- Economic system in Mainland China
- Business venture in Taiwan
- Business venture in Hong Kong
- Business venture in Mainland China
Monday, February 9, 2009
Sunday, February 8, 2009
COURSE OBJECTIVES I
DOING BUSINESS IN GREATER CHINA
Chapter 1
Definition of Greater China
A. Be able to understand the varying definitions of China by:
1. Recalling the US Government's definition of China
2. Recalling the reasons for the USG's definition of China
3. Citing one example each of how the USG, the Republic of China and the People's Republic of China operate under the current state of political relations
4. Analyzing the logic of the USG's definition of China
5. Analyzing George Bush's current policies toward China in light of the policies established in 1979.
6. Recalling our definition of Greater China.
Business Implications
Understand the business implications of the different economic/political systems of Greater China by being able to:
1. Compare by examples the relative ease of doing business in the three economies of Greater China
2. Recall the relative availability of business opportunities in these three economies in the short run and in the long run
3. Recall the proper names to use for the capital of "China" when you are in mainland China, Hong Kong and Taiwan
DOING BUSINESS IN GREATER CHINA
Chapter 1
Definition of Greater China
A. Be able to understand the varying definitions of China by:
1. Recalling the US Government's definition of China
2. Recalling the reasons for the USG's definition of China
3. Citing one example each of how the USG, the Republic of China and the People's Republic of China operate under the current state of political relations
4. Analyzing the logic of the USG's definition of China
5. Analyzing George Bush's current policies toward China in light of the policies established in 1979.
6. Recalling our definition of Greater China.
Business Implications
Understand the business implications of the different economic/political systems of Greater China by being able to:
1. Compare by examples the relative ease of doing business in the three economies of Greater China
2. Recall the relative availability of business opportunities in these three economies in the short run and in the long run
3. Recall the proper names to use for the capital of "China" when you are in mainland China, Hong Kong and Taiwan
CHINA'S DEFINITION: BUSINESS IMPLICATIONS
BUSINESS IMPLICATIONS
Before July 1, 1997, doing business in Hong Kong was fastest and in Taiwan almost as fast. Doing business in mainland China is much, much slower. In 2009, the relative speeds of doing business in the 3 economies of Greater China has not changed. For the foreseeable future, doing business in Taiwan will remain relatively fast, but conducting business in Hong Kong will be a bit slower. Trying to make money in Mainland China will continue to be by far the slowest of the three economies.
In 2009 business opportunities in Greater China are the most in Mainland China, second most in Taiwan, least in Hong Kong. In the longer run, when and if the PRC gets its act together, the business potential in Mainland China would be tremendous. It is a big "IF," and that if begins with the PRC's giving up of the communist system.
In doing business with the three parts of China, be sure that you use the proper name. Many years ago, a former Secretary of Agriculture gave a blistering talk in Des Moines, Iowa on our need to be faithful to our old friends the Republic of China and the evils of communism. Unfortunately, he was addressing a delegation from the People's Republic of China [Mainland China]. His translator, who knew the difference, purposely did not translate the Agricultural Secretary's remarks accurately. When in Mainland China, it is proper to refer to the capital of the country as "Beijing," but when you are in Taiwan, call the capital of Mainland China as “Pei P’ing.” In Hong Kong, in 2009, you should say “Beijing” for the capital of Mainland China.
When referring to the capital of China, in the PRC say, "Beijing." In Taiwan, most people, including some officials, will also say "Beijing." When discussing business with ROC government officials, however, saying "Pei P'ing" or "Peking" is better than saying "Beijing."XXXIt is always good manners and good business to respect rather than insult or denigrate you hosts. Hence, when in Taiwan, refer to the government as the “Government of the Republic of China," not the ”Authorities in Taiwan."
VARYING DEFINITIONS OF CHINA (continued)
4. Analyze the logic of the USG's definition of China
The USG's definition of China is incorrect. It is certainly true that the Mainland Chinese government controls most of China. But a reality check should be a REAL reality check. Thus, while it is undeniable that the ROC government in Taiwan does not control Mainland China, this does not lead to the conclusion that the Mainland Chinese government controls Taiwan. Taiwan is controlled solely by the government of the Republic of China [ROC], with no direct influence or control by the government of the People's Republic of China [PRC] from mainland China. The US government's definition of China fails its own reality test.
What then is the real reason that the US government officially recognized the PRC as a legitimate government in 1979? The real reason was the fear of the Soviet threat, the one issue that has driven and dominated US foreign policy since 1945. The US government wanted to become friends with the PRC government so that this government would bother the former Soviet Union so much that it would be to busy to think about attacking the US. The PRC government agreed but on condition that it be declared the only government over all of China, including Taiwan, with the further stipulation that its arch rival be insulted by the US government by the declaration that the ROC government cannot be called a government but be called the Taiwan Authorities and that ROC officials could not be called officials but must be called "authorities." The US government readily agreed to these conditions, contained in a document known as the "Shanghai Communique."
In 1979 the United State government formally recognized the PRC as the legitimate government of all China. It is now 1998. Is the US government's policy of playing the China Card relevant today? No, because the Soviet threat has disappeared; the evil empire, the Soviet Union, no longer exists. The game that gave life to the China Card is over. The China Card today is as useless as an ace in the hole in a poker game with no players.
In sum, the USG's definition of China fails the reality check and is designed to counter a threat that no longer exists.
5. Analyze the USG's current policies toward China in light of the policies established in 1979.
Despite the disappearance of the Soviet threat, the US government's policies toward mainland China and Taiwan has not materially changed. The US government still clings to a "one China" policy, and the US government still calls the ROC government the Taiwan Authorities.
An important business lesson here is that when changing conditions alter the viability of our thinking and methods, we must modify our thinking and methods. To hang onto ineffective methods or irrelevant ideas will cause our business to collapse.
6. Recall our definition of China.
The subject matter of this book, however, is business, not politics. This course is called, “Doing Business in Greater China Thus, our definition of Greater China includes: The e People's Republic of China [including Hong Kong] and The Republic of China in Taiwan as two separate economies.
Of these economies, the US used to do the most business with Taiwan, second most with Hong Kong and the least with mainland China. In 2009, among the three economies of Greater China the US does most business with the PRC, second most with Taiwan and least with Hong Kong. In fact, the PRC is now the US’s second largest supplier of imports.
While the PRC's takeover of Hong Kong is affecting business conditions in Hong Kong, business conditions there are still significantly different from those in Mainland China. Hence, for business purposes, we can still think of Greater China as three different economies, Mainland China, Hong Kong and Taiwan, all with different business climates.
The USG's definition of China is incorrect. It is certainly true that the Mainland Chinese government controls most of China. But a reality check should be a REAL reality check. Thus, while it is undeniable that the ROC government in Taiwan does not control Mainland China, this does not lead to the conclusion that the Mainland Chinese government controls Taiwan. Taiwan is controlled solely by the government of the Republic of China [ROC], with no direct influence or control by the government of the People's Republic of China [PRC] from mainland China. The US government's definition of China fails its own reality test.
What then is the real reason that the US government officially recognized the PRC as a legitimate government in 1979? The real reason was the fear of the Soviet threat, the one issue that has driven and dominated US foreign policy since 1945. The US government wanted to become friends with the PRC government so that this government would bother the former Soviet Union so much that it would be to busy to think about attacking the US. The PRC government agreed but on condition that it be declared the only government over all of China, including Taiwan, with the further stipulation that its arch rival be insulted by the US government by the declaration that the ROC government cannot be called a government but be called the Taiwan Authorities and that ROC officials could not be called officials but must be called "authorities." The US government readily agreed to these conditions, contained in a document known as the "Shanghai Communique."
In 1979 the United State government formally recognized the PRC as the legitimate government of all China. It is now 1998. Is the US government's policy of playing the China Card relevant today? No, because the Soviet threat has disappeared; the evil empire, the Soviet Union, no longer exists. The game that gave life to the China Card is over. The China Card today is as useless as an ace in the hole in a poker game with no players.
In sum, the USG's definition of China fails the reality check and is designed to counter a threat that no longer exists.
5. Analyze the USG's current policies toward China in light of the policies established in 1979.
Despite the disappearance of the Soviet threat, the US government's policies toward mainland China and Taiwan has not materially changed. The US government still clings to a "one China" policy, and the US government still calls the ROC government the Taiwan Authorities.
An important business lesson here is that when changing conditions alter the viability of our thinking and methods, we must modify our thinking and methods. To hang onto ineffective methods or irrelevant ideas will cause our business to collapse.
6. Recall our definition of China.
The subject matter of this book, however, is business, not politics. This course is called, “Doing Business in Greater China Thus, our definition of Greater China includes: The e People's Republic of China [including Hong Kong] and The Republic of China in Taiwan as two separate economies.
Of these economies, the US used to do the most business with Taiwan, second most with Hong Kong and the least with mainland China. In 2009, among the three economies of Greater China the US does most business with the PRC, second most with Taiwan and least with Hong Kong. In fact, the PRC is now the US’s second largest supplier of imports.
While the PRC's takeover of Hong Kong is affecting business conditions in Hong Kong, business conditions there are still significantly different from those in Mainland China. Hence, for business purposes, we can still think of Greater China as three different economies, Mainland China, Hong Kong and Taiwan, all with different business climates.
VARYING DEFINITIONS OF CHINA
1. Be able to recall the USG's definition of China
The USG's definition of China, in 1979 and still in 2009, is:
China includes Mainland China/Hong Kong and Taiwan, and the People's Republic of China is the legitimate government over all of China.
In 1979, Hong Kong was not yet part of the PRC. While part of China throughout most of history, Hong Kong has been a British colony for more than 100 years, providing England with an important source of revenues and the Chinese people in Hong Kong with the opportunity to become one of the four fastest growing economy in the world in 1952-1982. Then came the talks between England and the PRC to return Hong Kong to China. In 1984, these two countries decided that Hong Kong would again became a part of China on July 1, 1997, a date which has since come and gone. How the PRC's takeover, the controlling of one of the world's freest economies by a communist government, has changed Hong Kong is now clear. So far, the changes are as expected. Political freedom has decreased and the Hong Kong Chinese’s dream of a Hong Kong governed by Hong Kong residents has become just a dream.
Many things have happened since 1997: huge highrises have been built, but the economy has had some major setbacks. Some elections have taken place, but the Chief Executive of Hong Kong is still being elected by an Electoral College, the majority of whose members are appointed.
So, there we have it, the three parts of China: mainland China - the world's most populous country, Hong Kong - the world's largest shopping center, and Taiwan, the world's fastest growing economy in the last 40 years.
2. Recall the reasons for the USG's definition of China
Why did and does the US government define China in this way? There are two reasons, the "reality check" and the "Soviet threat." The reason given publicly is the "reality check." In 1971, China hands in the US Government said, "Look, who really controls most of China, the Mainland Chinese government or the government in Taiwan? Of course, the Mainland Chinese government does, so let's recognize this fact.
“Therefore,” continued the US government, “the Mainland Chinese Government controls all of China.” This is not logical. In other words, the “reality check” does not check out.
However, the other reason, the real reason, is the playing of the "China card" against the Russians to diminish the Soviet threat, the single most important issue driving USG foreign policy since 1945. Thus, the was the real reason for the USG’s definition of “China.” But this reason is no longer relevant, since the Soviet Union no longer exists.
3. Cite examples of how the USG, the Republic of China and the People's Republic of China operate under the current state of political relations
The USG calls the ROC government the Taiwan Authorities. The US embassy in Taipei is called the American Institute in Taiwan, with the political section called the General Affairs Section [GAS] and the consular section called the Travel Services Section [TSS]; US diplomats are supposedly retired from the US diplomatic corps but only temporarily and in name only while they are stationed in Taiwan. Their rank, their promotions, their pay, their benefits and even their jobs remain exactly the same as if they were still in the US Diplomatic Corps.
The ROC counterpart to AIT was called the Coordinating Council for North American Affairs (CCNAA) and is now called the Taipei Economic and Cultural Office [TECO]. All TECO officials, active, career diplomats of the ROC, are called authorities. Meetings are usually held in restaurants, while some negotiations do take place at AIT or TECO offices. Usually meetings are not held in the ROC's Foreign Ministry or in the ROC's other ministries.
All of these charades that the Republic of China must play result from the basic problem that the names of AIT and TECO are not correct. To paraphrase Confucius, "If the name is not correct, then words [and actions] will not flow." That is, if the name is incorrect, then actions will be strange and sometimes wrong.
The behavior of the US government in Mainland Chna is also not balanced. In mainland China, the US embassy and the American Consulates General are quite small. The housing, with the PRC government as the landlord, is expensive and inadequate. All Chinese employees working in the American Embassy and Consulates are assigned by the PRC government’s intelligence agencies. They are PRC spies, paid by the US government to spy on American officials and on their fellow Chinese colleagues. In contrast, formerly in Russia, the US government did not have a single Russia employee because of the fear of Russian spies.
One former high-level US embassy official in the American Embassy in Beijing, edited all political reports from the embassy to Washington DC to make sure that the messages to Washington were not critical of the Chinese Communist government. These sanitized or inaccurate reports are usually classified as "confidential," secret, or "top secret," and meant only to be read by US government officials who have top secret security clearances.
The PRCG, also acts strangely. The probably said to the USG, “If you want to be our friend, then you cannot be Taiwan’s friend. In fact you cannot call Taiwan the Republic of China. You must call Taiwan the Taiwan Authorities.” The USG agreed.
One day a US businessman came to the Commercial Section of the American Embassy in Beijing, “The PRC Government won’t let me use this brochure in a trade show, because the brochure said that we have offices in Singapore, Kuala Lumpur, Bangkok, Hong Kong and Taipei.”
“I see nothing wrong with that,” said the US Commercial Attache.
The PRC customs official said the putting Taipei and Hong Kong in the same column as Singapore, Kuala Lumpur and Bangkok implies that Hong Kong and Taiwan are separate countries.”
“Is that what you told them?” asked the American Commercial Attaché.
“No,” said the US business man.
“Then I think its okay to use the brochure,” said the American Commercial Attaché. After some negotiations the next day, the American Commercial Attaché convinced the PRC official to let the US businessman to use the brochure in the Trade Show.
The USG's definition of China, in 1979 and still in 2009, is:
China includes Mainland China/Hong Kong and Taiwan, and the People's Republic of China is the legitimate government over all of China.
In 1979, Hong Kong was not yet part of the PRC. While part of China throughout most of history, Hong Kong has been a British colony for more than 100 years, providing England with an important source of revenues and the Chinese people in Hong Kong with the opportunity to become one of the four fastest growing economy in the world in 1952-1982. Then came the talks between England and the PRC to return Hong Kong to China. In 1984, these two countries decided that Hong Kong would again became a part of China on July 1, 1997, a date which has since come and gone. How the PRC's takeover, the controlling of one of the world's freest economies by a communist government, has changed Hong Kong is now clear. So far, the changes are as expected. Political freedom has decreased and the Hong Kong Chinese’s dream of a Hong Kong governed by Hong Kong residents has become just a dream.
Many things have happened since 1997: huge highrises have been built, but the economy has had some major setbacks. Some elections have taken place, but the Chief Executive of Hong Kong is still being elected by an Electoral College, the majority of whose members are appointed.
So, there we have it, the three parts of China: mainland China - the world's most populous country, Hong Kong - the world's largest shopping center, and Taiwan, the world's fastest growing economy in the last 40 years.
2. Recall the reasons for the USG's definition of China
Why did and does the US government define China in this way? There are two reasons, the "reality check" and the "Soviet threat." The reason given publicly is the "reality check." In 1971, China hands in the US Government said, "Look, who really controls most of China, the Mainland Chinese government or the government in Taiwan? Of course, the Mainland Chinese government does, so let's recognize this fact.
“Therefore,” continued the US government, “the Mainland Chinese Government controls all of China.” This is not logical. In other words, the “reality check” does not check out.
However, the other reason, the real reason, is the playing of the "China card" against the Russians to diminish the Soviet threat, the single most important issue driving USG foreign policy since 1945. Thus, the was the real reason for the USG’s definition of “China.” But this reason is no longer relevant, since the Soviet Union no longer exists.
3. Cite examples of how the USG, the Republic of China and the People's Republic of China operate under the current state of political relations
The USG calls the ROC government the Taiwan Authorities. The US embassy in Taipei is called the American Institute in Taiwan, with the political section called the General Affairs Section [GAS] and the consular section called the Travel Services Section [TSS]; US diplomats are supposedly retired from the US diplomatic corps but only temporarily and in name only while they are stationed in Taiwan. Their rank, their promotions, their pay, their benefits and even their jobs remain exactly the same as if they were still in the US Diplomatic Corps.
The ROC counterpart to AIT was called the Coordinating Council for North American Affairs (CCNAA) and is now called the Taipei Economic and Cultural Office [TECO]. All TECO officials, active, career diplomats of the ROC, are called authorities. Meetings are usually held in restaurants, while some negotiations do take place at AIT or TECO offices. Usually meetings are not held in the ROC's Foreign Ministry or in the ROC's other ministries.
All of these charades that the Republic of China must play result from the basic problem that the names of AIT and TECO are not correct. To paraphrase Confucius, "If the name is not correct, then words [and actions] will not flow." That is, if the name is incorrect, then actions will be strange and sometimes wrong.
The behavior of the US government in Mainland Chna is also not balanced. In mainland China, the US embassy and the American Consulates General are quite small. The housing, with the PRC government as the landlord, is expensive and inadequate. All Chinese employees working in the American Embassy and Consulates are assigned by the PRC government’s intelligence agencies. They are PRC spies, paid by the US government to spy on American officials and on their fellow Chinese colleagues. In contrast, formerly in Russia, the US government did not have a single Russia employee because of the fear of Russian spies.
One former high-level US embassy official in the American Embassy in Beijing, edited all political reports from the embassy to Washington DC to make sure that the messages to Washington were not critical of the Chinese Communist government. These sanitized or inaccurate reports are usually classified as "confidential," secret, or "top secret," and meant only to be read by US government officials who have top secret security clearances.
The PRCG, also acts strangely. The probably said to the USG, “If you want to be our friend, then you cannot be Taiwan’s friend. In fact you cannot call Taiwan the Republic of China. You must call Taiwan the Taiwan Authorities.” The USG agreed.
One day a US businessman came to the Commercial Section of the American Embassy in Beijing, “The PRC Government won’t let me use this brochure in a trade show, because the brochure said that we have offices in Singapore, Kuala Lumpur, Bangkok, Hong Kong and Taipei.”
“I see nothing wrong with that,” said the US Commercial Attache.
The PRC customs official said the putting Taipei and Hong Kong in the same column as Singapore, Kuala Lumpur and Bangkok implies that Hong Kong and Taiwan are separate countries.”
“Is that what you told them?” asked the American Commercial Attaché.
“No,” said the US business man.
“Then I think its okay to use the brochure,” said the American Commercial Attaché. After some negotiations the next day, the American Commercial Attaché convinced the PRC official to let the US businessman to use the brochure in the Trade Show.
Subscribe to:
Comments (Atom)
