Tuesday

HONG KONG STOCK EXCHANGE




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Beer tasting & Tour of Kingway brewery



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Centenary or Shanghai????

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Off to Shanghai




We flew out early this morning on a China Air flight to Shanghai. Very impressive airline. We took a taxi to Sykes Enterprises, one of the fastest growing call support centers in the world. We met with Michael Sun, IT/IS director, for a brief presentation on company history and strategy, followed by a Q& A session and a facilities tour. Sykes is a US company and trades on the NY stock exchange. http://www.sykes.com.cn/en/index.asp This office provides technical support for Microsoft and HP, among others. Micheal pointed out that many of the restrictions that required joint venture with the government, no longer apply, particularly if the company focuses on technology and tech applications. Sykes had recently moved to this facility, which is close by transportation lines for employee convenience. After our discussion, a Sykes driver dropped us off to a nearby Pizza Hut where we devoured everything in sight.

The next morning we toured GM's Shanghai plant. The plant produces 400,000 vehicles a year - largely Cadillacs. This joint venture between GM and the Chinese government has not taken advantage of recent GM technology advancements and employs 3-times the number of employees found in a comparably sized US GM facility. While the plant is designed with the T-production layout, jobs performed by robotics in the US are still performed by the workers (i.e., windshields/glass). In addition, inventory occupies a significant portion of the plant. JIT does not seem to be practiced.



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Our first Hot Pot meal

Chinese version of Fondue! A boiling pot of chicken broth is placed on a burner in the center of the table. Thinly sliced lamb, steak, pork and crab are dipped in for just a second. Noodles, cabbages and potatoes are added to the pot for flavoring and and as part of a soup that nobody tried.

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Viewing the terra-cotta army was truly a high point of the trip. We had a busy day with a visit to the Wild Goose Pagoda, the Great Mosque, and the Shannxi Provincial Museum

We all get Chinese massages in Xian




What goes on in China, stays in China. Hey, they told us to immerse ourselves in the culture! Actually the video clip above is not one of us, but we all gave it a go. Each session lasted an hour and there is no doubt any of us will forget the experience. Apparently the universal scream of pain does not translate over here.

Our rooms in Xian aren't too shabby, with a nice view of the city and a great location. It's a nice improvement over the Beijing hotel that was located in the Chinese ghetto. We won't even discuss our visits to the grocery for water or the activity at the Internet cafe across from the Beijing Timbo.

Everyone seems to be enjoying the nightlife in Xian as well.





Xian

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Meeting at Dell's China office's


Peking Duck Dinner




Our plant visit to the steal mill

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Touring in style

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Climbing the Great Wall

Monday

Out and about in Beijing

We were served a traditional Chinese breakfast buffet at our Hotel Timbo of dumplings, fried rice, strange white sausages, black eggs, chicken feet, watermelon and tea- Just like home! With full stomachs, we set off to explore Beijing. Our first stop was Tienanmen Square and the Forbidden City. It was hard for most of us to absorb the vastness of it all. We were quickly surrounded by street peddlers - "sticky rice". Dean Martin made the first purchase after intense negotiations- a Mao watch. Of course Seth got one for the same price with 3 "official" Olympic hats thrown in. We walked across the main boulevard into the forbidden city, which seemed to go on and on. It is very easy to get lost in here. We did find some familiar faces too. Dr. Martin ran into a group of EMBA students and faculty from LSU and an alumni group he knew from Georgia Tech - small world.

Flags are at half mast, no entertainment (theatre, clubbing, regular television) is allowed today, as we enter the third day of the 3 days of mourning for the earthquake victims. The numbers of causalities keep growing. The major US companies operating in China are sending relief. However, only a few Chinese companies feel it is their responsibility to help financially.

During the afternoon we visited the Summer Palace, played dress-up, (blackmail pictures forthcoming), learned everything you'd ever want to know about fresh water pearl cultivation and learnedthe art of drinking tea. On our way to dinner, we passed the Olympic "Birdnest", and through a Chinese market. I think we all lost our appetites after the beetles on a stick, fresh squid, snake, and eels. Yum!

Saturday

We arrive at the airport in Beijing.



After an overnight in San Francisco and another 12 hour flight, we finally arrived in Beijing! While we awaited our tour director, Wesley, The Frost School China gang took the opportunity to exchange USDR for Yuan and try the airport coffee shop.

Sunday

We're Off! - Almost

We are meeting at 5:30 today for the first leg of our Journey to China. We are scheduled to arrive if SF at 11:00. My bag weighs in at 38 pounds. Hopefully the scale is calibrated correctly and everybody was able to get below the 44 pound limit for internal China flights.

After our 12hour flight, our tour director, Wesley, will take us straight from Beijing airport to our first tour stop -Tiananmen Square. We'll have a full day of touring the sights before making it to our hotel . I was informed that we do have a hotel change that first night. We'll be at Zhenghua Tia Boa hotel (+86 (0) 10 8763 5000) rather than the Red Wall.

Our first company visit will be a few days into our trip at Shougang Ironworks http://www.shougang.com.cn/ . We also have Coca-Cola, GM, Kingway Beer, the Hong Kong Stock exchange Gale has arranged private meetings with with Dell, Sykes ,and Procter and Gamble executives.

See you at the Airport. It looks like great flying weather!
CLM

Wednesday

Is China the real thing for Coca-Cola?

In winding its way into the China market, that possesses one fifth of the world's population, this soft drink phenomenon has come face to face with the largest market in the world. Since 1979, the US giant has invested $1.2 billion in 23 plants nationwide and now claims an enormous 70 per cent in the soft-drinks market in China. (Shanghai Star)

We will be visiting the Coke facilities while in Shanghai. I though you might find Craig Simons article in The Atlanta Journal-ConstitutionPublished on 04/15/08 an interesting point for discussion. You know how much I love to talk about online attacks on companies... http://online.wsj.com/article/SB120467937489712025.html?mod=mm_hs_marketing_strategy&apl=y&r=369188

Simons writes, "First criticized by activists angry that Coca-Cola Co. is sponsoring the Olympic torch relay, Coke executives now face another problem: Chinese nationalists calling for a boycott of the brand.
Last week, a Chinese blogger posted a photograph of a Coke advertisement taken in a German railway station. The ad showed three Buddhist monks riding a roller coaster and carried the slogan "Make It Real."
On the popular Chinese Tianya Internet forum, the blogger, who used the screen name "Super Laboratory," argued that the monks were Tibetan lamas, the roller coaster represented freedom and the slogan meant they should "realize [freedom] now."
"Coke! Okay. I'll remember this and won't drink your crappy product," the blogger wrote.
By Monday, photographs of the advertisement had been posted on other Chinese Web sites including Sina.com, one of China's most influential portals for news and discussion.
Hundreds of people had written posts. Some dismissed allegations that the Coke ad supported Tibetan independence. But most chastised the company or called for a boycott.
A posting by someone using the screen name "Knife" wrote that while "using sensitive issues in ads can attract attention, if it has anything to do with Tibetan independence, I won't try the product."
Coke responded by pulling the ad, which it said was used only in parts of Germany and was five years old.
The ad "was designed to encourage people to try something new, and this image was only one of several that made up the 'Make It Real' campaign," the company said in a statement.
"We regret if the use of an image featuring monks from an old print advertising campaign from 2003 has caused any offense," it said.
Chinese nationalism — stoked by an education system that stresses colonial incursions in Chinese history and by recent propaganda claiming that exiled Tibetans want to stoke unrest in Tibet — has sparked popular anger at other foreign companies.
In 2004, Nike withdrew a TV advertisement showing National Basketball Association star LeBron James defeating a dragon, a traditional symbol of the Chinese state, after it sparked popular anger and a reprimand by the Beijing government.
In 2003, Toyota was forced to pull a print ad showing two stone lions, emblems of Chinese culture, saluting a Prado SUV after Chinese posted hundreds of angry notes on Internet bulletin boards.
A Coke spokesman said Monday that the company had received "a very limited number of consumer calls regarding this issue."
In its statement, Coke argued that the bloggers read too much into the ad.
To "take a 5-year-old local campaign and try to draw some sinister connection to current events shows a lack of concern for the truth that should be alarming to all members of society," it said. "

Aid for Earthquake Victims

A group of American volunteers have come to an earthquake-stricken county in southwest China's Province to help rescue the victims there.
The 16-member team, organized by the US-based humanitarian organization Heart to Heart International, also brought a truck and an ambulance to the Beichuan County, about 160 km northeast of the epicenter, Wenchuan County.
Chinese Premier Wen Jiabao meets several American volunteers who are lending a helping hand and expresses his gratitude for their aid on Wednesday, May 14, 2008, in Qushan Town, Beichuan County, one of the regions worst hit by Monday's massive earthquake.
"I have been in China for almost 10 years. I was born in America, but Chengdu (capital of Sichuan Province) is also my hometown," said Brian Robinson, the team leader and the China Chief Representative of Heart to Heart International.
"We've got some medical equipment and medicine through Heart to Heart International after the earthquake. Then we come here to render help," said Robinson, a doctor of medicine who speaks fluent Chinese.
With the help of Xinhua reporters, the American volunteers took several boxes of syringe needles and salt water from their vehicles to the playground of the Beichuan Middle School, where the injured people were being treated in makeshift tents.
They had to walk about three kilometers back to their vehicles to fetch more medical equipment and medicine -- they could not drive vehicles to the playground because roads had been destroyed.
Kelsey Gardner, a nurse, joined Chinese colleagues in treating injured people soon after she entered a tent. She said she just arrived in Chengdu several months ago and works at NO. 6 Hospital of Chengdu.
Aaron Cyboron, a university student studying in Chengdu, told Xinhua that he had come to Beichuan many times in the past and he had special affection for the place.
"Each life is very important. We ought to do our best to help the disaster victims," he said.
Up to 5,000 people were feared dead in Beichuan and the figure is rising. At the Beichuan Middle School alone, at least 1,000 students were killed or missing because of the collapse of buildings.
A 7.8-magnitude earthquake struck Wenchuan Monday afternoon and it was also felt in most parts of the county.
The death toll across the country has risen to 14,866, the latest government statistics show.
Among those, 14,463 were confirmed dead in Sichuan Province, 280 in Gansu Province, 106 in Shaanxi Province, 14 in Chongqing Municipality, two in Henan Province, one in Yunnan Province and one in Hubei Province.
(Xinhua News Agency May 15, 2008)

Tuesday

Help Wanted: Top Managers in China

By ANDREW BATSON April 29, 2008; Page B4 WSJ



BEIJING -- U.S. companies in China say recruiting talented managers for their local operations has become their biggest business challenge, a finding that highlights the continuing gap between the skills taught in China's universities and what businesses here are actually looking for.
A joint survey by three U.S. chambers of commerce in China showed "a continued worsening of human-resource challenges as companies expand," said J. Norwell Coquillard, chairman of the American Chamber of Commerce in Shanghai. Difficulty in finding, training and retaining managers was named as the top operational problem by 37% of the 324 companies responding, more than issues such as regulation, bureaucracy or piracy.
U.S., European and other foreign business executives in China have grown increasingly worried about talent issues as they have expanded their local operations. "The rapid growth of the domestic economy has created a fiercely competitive business environment that is driving rapid cost increases," Mr. Coquillard said Monday. "Demand for skilled, qualified staff still outstrips supply, and this key operating constraint shows no sign of easing in the near term." He estimated that managers' salaries are rising at 8% to 10% a year.
Foreign and domestic companies in China are increasingly competing for the same relatively small pool of trained Chinese-speaking managers. While the government has greatly expanded university education in recent years -- schools turn out about four million graduates with bachelor's degrees each year -- quality remains an issue.
In their annual white paper, the American chambers of commerce said the Chinese educational system's heavy emphasis on rote memorization "does not translate well" to the challenges employees face in jobs at foreign companies.....