China imported more oil in December than the US

This is part of a larger shift of oil imports to emerging nations outnumbering that of industrialized nations. From CNN:

The shift between China and the US comes as the International Energy Agency, the western countries' oil watchdog, forecast that emerging countries would for the first time consume more oil than industrialized nations. The Paris-based IEA forecast that non-OECD countries will consume 44.9m b/d next quarter, compared with 44.7m b/d for the OECD nations.

The US remains the world's largest net oil importer on an annual basis, but the margin over China has narrowed significantly over the last five years. The country's net foreign purchases of crude and refined products dropped to a 20-year low of 7.14m b/d in 2012, while Chinese net oil imports averaged 5.72m b/d.

Excluding the Japanese

No love lost.

Native on the outside, foreign on the inside

Interesting perspective from Miranda Lin, a Canadian with Taiwanese decent currently living in China. 

While language and culture put me in the minority, it is not a visible minority. Ironically, just as my Chinese looks cause much consternation among locals, it causes indifference among the countrymen I psychically reach for. I disappear in the crowd: just another Chinese face in the sea of presumed strangers. The camaraderie shared among foreigners—the exchanges of knowing glances or sympathetic smiles that say, “I feel the same way; I’m there with you”—eludes me. Instead, with over-enunciated enthusiasm, I have repeatedly been told, “Your English is so good.”

Unfortunately I've been one of those 'over-enunciating enthusiast' foreigners, mistakingly telling a foreign-born (and raised) Chinese that their English was really good. Glad to know I'm not the only one to have made this embarrassing misstep. 

(By way of The Dish)

Australian Open final featuring China's Li Na starts at 4:30 pm Beijing time.

She will play Victoria Azarenka of Belarus. No matter what happens, Li Na will at least put on a good show during the post-match interview. Below are her interviews from this year's Australian open after her semi-final win and earlier in the tournament with ESPN. Below is also her famous on-court interview after her semi-final win in Australia in 2011. What a great ambassador for China. 

Update: Have also added her great interview after the 2011 Australian Open final. Her interview starts at around 16:45 into the video.

Today's Big Stories for January 25, 2013

Spicy McDonald's, California connections, hugs for children, Apple revenue, and Mythbusters busted. 

1. Much ado about nothing at McDonald's

The man had ordered a McCrispy Chicken Burger in Guangzhou on Saturday, and then askeda restaurant manager why the burger was spicy, since a previous burger he had eaten was notspicy, the Yangcheng Evening News reported.

Even the China Daily finds some humor in the story:

It was not reported whether police tried the burger, or stayed to order a meal themselves.

2. Jerry Brown to tout state on China visit

Gov. Jerry Brown's long-planned business trip to China is definitely on.

April 8-15 are the dates set for his visit to Beijing, Shanghai and perhaps other cities, where he will be meeting with senior government officials, exploring opportunities for Chinese investment and other deals in California, and opening the first of at least two planned trade offices there.

3. School in China charges parents a monthly fee for teachers to hug their children

Parents of children attending kindergarten in east China’s Yangzhou City were charged a so-called “hug fee” of 80 Yuan, some $12.80.

According to the reports for less than $13 a month the child would get one morning hug and one goodbye hug. Not bad at all.

4. Apple China Revenue Jumps 67% as Sales Outlets Double

Outlets in China selling the iPhone rose to 17,000 in the period that ended Dec. 29, from 7,000 a year earlier, A

pple Chief Executive Officer Tim Cook said on a conference call yesterday. That helped Apple boost sales in the Greater China region to $6.83 billion, from $4.08 billion a year earlier, the company said in statement yesterday that marked the first time it formally broke out China data in its earnings release.

5. Big news in China: "Mythbusters" blew up a Chinese popcorn maker

Chinese viewers seem amused by the fact that an expensive American TV show could so overthink, and somehow make dangerous, a banal popcorn maker that would seem cozily familiar to many urban Chinese. They also seem fascinated, as in often the case when Western media looks at China, by how they are perceived and portrayed. It’s a funny reminder of the mutual interest between China and the West, particularly the United States, and of the still-wide cultural gap that we’re slowly closing from both ends. Imagine how it would look if Chinese TV featured a wide-eyed segment on the dangerous magic of American hot dog carts.

Today's Big Stories for January 14, 2013

Landslides, pollution, Ford, EU legal disputes, the wedding market, and economic optimism. 

1. Earthquakes behind China landslide that killed 46: expert

A landslide in southwest China that killed 46 people was partly caused by an earthquake that hit the region four months ago, a geological expert said on Saturday.

Unstable soil and steep slopes also contributed to Friday's landslide in Yunnan province, the state-run news agency Xinhua quoted Jiang Xingwu as saying.

Wiped out an entire village.

2. China hit by extreme air pollution

After weeks of record-breaking cold, accompanied by clear, dry skies, the weather turned warmer late Thursday. By the weekend, many of the pedestrians in Beijing were wearing face masks. On Saturday, the Children's Hospital of Beijing reported 900 children treated for respiratory problems. Hospitals also reported sharp increases in the number of older patients who were having difficulty breathing.

Wow.

3. Ford Keeps Rolling In China

Ford's success in China is important because growth in China is absolutely key to Ford's long-range global plan. The company has said that it expects 70% of its overall growth to come from Asia and Africa by the middle of the decade -- much of that from the Chinese auto market, now the largest in the world.

Ford was very late to the Chinese auto party, arriving years after rivals such as General Motors , Volkswagen , and Toyota had established major presences in the Middle Kingdom. Many analysts questioned whether the company would be able to win significant market share in the face of such strong, established competition.

I think the new Ford Fusion will do well in China. 

4. China shoe exporters stand tall with EU victory

The legal dispute began in 2006 when 150 Chinese companies appealed an EC decision to slap a 16.5% anti-dumping duty on all Chinese and Vietnamese-made shoes made of leather imported by European trading companies and sold in EU countries.

5. Love in China: Navigating an $80 Billion Wedding Market

Understanding the interplay of how Chinese are embracing foreign traditions or holding on to old customs related to dating and marriage is essential for marketers. Each year in China more than 10 million couples marry, creating an industry estimated at $80 billion annually with strong ties to retail, fashion, jewelry, travel and tourism, financial planning, real estate and household purchases.

6. China Is Cause for Optimism on World Economic Pickup, Swan Says

China’s economic recovery is a sign that global demand will improve this year, Australian Treasurer Wayne Swan said ahead of a visit to Hong Kong where he will speak today at the Asian Financial Forum.

“I’m optimistic that 2013 will be a better year for the global economy,” Swan said yesterday in his weekly economic note. “One cause of optimism is recent evidence that China’s economy appears to be stabilizing after economic conditions moderated in 2012.”

How do you ensure your Japanese-made car doesn't get vandalized?

You put a bumper sticker on it reading, "my car is a Japanese car, my heart is a Chinese heart." Then you hope this doesn't happen. 

Shixiabei, Shenzhen

The presidential debate: also being watched in China (sort of)

I saw a Chinese friend just now and he was watching a Mandarin language-dubbed version of last night's presidential debate on his phone. He hadn't yet made it to the section in which the candidates speak about China but his initial response to me was, "I think Obama is a much better speaker and I like him because he likes basketball." I was hoping he would see the China-focused section and tell me his thoughts but he ended up switching the stream to a basketball game shortly after I took the below photos.

Jingdi Meilongzhen, Shenzhen

Not good. Not good at all.

"China protests to South Korea over fisherman's death"

The title says it all. Man oh man, as if a region already shrouded in uncertainty needed any additional cause for outrage. Note to Hyundai and Kia - not so fast with those new sales forecasts. 

Might a Romney presidency start a war between China and Japan?

That's what my Chinese workmates thinks. As we watched a news report on Chinese TV about the upcoming presidential debate, out of the blue my colleague said something to the effect of, "if Romney becomes president, there will be a war between Japan and China." I asked my friend to explain and he suggests that Romney's vow to increase America's military presence in the Pacific (to say nothing of attacking China vigorously on trade) may exacerbate the Diaoyu Island standoff to the point off war. 

As if I didn't have enough to worry about...

Today's Big Stories for October 16, 2012

1. How China's Self-Made Women Billionaires Earned Their Fortunes

Just eight women rank among the 100 wealthiest people in China, according to the Forbes list of China’s 100 richest, published last week. Of those eight women, two inherited their fortunes. The other six are self-made billionaires – a pretty impressive statistic, considering that just 7 of the 45 women on the Forbes 400 list of richest Americans built their own fortunes.

What’s amazing is how young, relatively speaking, most of the Chinese women billionaires are. Five out of the six are in their forties. Their youth speaks to the incredible growth of capitalism, and the growth of the economy, in recent decades in China.

An interesting read.

2. China and Its Trade Practices Are Coming to the Debates

Many Asia experts say Mr. Romney’s comments are indeed tough. They begin with a pledge to brand Beijing a currency manipulator on his first day in office, and end with promises to increase America’s

already formidable military presence in the western Pacific and sell new American fighter jets to Taiwan. Analysts say such moves would amount to a profound shift in a policy toward China that has remained remarkably constant for decades across Republican and Democratic administrations. And they would be virtually certain to upend relations with Beijing’s leaders.

Why don't any of the candidates have the guts to tell the American public the truth - that access to China's middle class is good for American businesses and (as posted below) Chinese businesses are more and more investing in the US. 

3. Coffee Chain Brands Expand In Retail Downturn

International coffee chain brands are rapidly expanding in the Chinese market against the background of a retail industry downturn.

Howard Schultz, founder and CEO of Starbucks (NASDAQ: SBUC) said earlier this year that though Chinese economic growth has slowed, he is still confident in a stable market and that by 2015, 1500 Starbucks outlets will be open in mainland China. Costa, from Italy, is trying to get a foothold in shopping malls by cooperating with Beijing Huanglian Group (600361.SH). Costa owns about 200 outlets in China now, and plans to take one-third of the share of the Chinese coffee market by opening 2500 outlets by 2018. Paul Smith, CEO of Costa Asia, has even said he will "resign if he cannot beat Starbucks in China".

Every time I go into a Chinese Starbucks it's packed with people. China still has a lot of growth potential in this area - I was just in Korea and there were 2-3 coffee shop on every block.

4. ZTE Shares Dive On Q3 Warnings

Shenzhen-based ZTE and cross-town rival Huawei Technologies Co Ltd, the world's second-largest telecom gear maker, are fighting weakened sales as some clients postpone spending on telecom equipment.

Both their outlooks have also been muddied by a recent US congressional report that urged American firms to stop doing business with them due to potential security concerns, but both have denied the report's allegations.

That US congressional report was devastating to both ZTE's and Huawei's American growth potential.

5. Yuan Rises To New High Against Dollar

The Chinese yuan traded at an intraday peak of 6.2654 against the dollar on China's spot currency market Friday, a record high against the greenback according to data provided by the State Administration of Foreign Exchange (SAFE), a development which likely signals the weakening value of the dollar rather than the start of another major round of appreciation by the renminbi, experts told the Global Times Sunday.

When I first arrived in China the exchange rate to the dollar was almost 8 to 1. Now it's approaching 6 to 1. Guess I should exchange those remaining dollars I have in my apartment to yuan.

6. Lumia 920T Leaks In China, Could Be Nokia's Ticket To A Huge New Subscriber Base

Corroborating earlier reports of a Lumia 920 that is compatible with China Mobile's TD-SCDMA network, the phone's settings screen mentions "CMCC", which is a reference to that operator -- although it's not clear whether the handset will also support the carrier's proposed LTE network. 

I will be very tempted to buy this phone if it works on China Mobile's new LTE network. I need to keep my current China Unicom phone number but am also interested in getting a China Mobile LTE device. This could be that device (finger's crossed). 

7. Chinese Investment In US Grows Despite Rhetoric

Despite calls for curbs on Chinese firms in the United States as the presidential election campaign heats up, mainland and Hong Kong investments in the US have nearly doubled this year and are expected to remain strong next year.

The value of mergers and acquisitions (M&A) by Hong Kong and Chinese companies in the US soared by 93.7 per cent to US$6.96 billion in the first nine months of this year, according to Mergermarket, an international publisher of deals data.

Why China should be welcomed by Americans, not feared

The reason, according to Michael Silverstein, is simple: the growth of China has the potential to make Americans and American companies very wealthy.

All of these [trade] disputes will be resolved in due course. They are important for many reasons. But none should cause us to lose sight of the promise China holds for U.S. companies, American workers, and the U.S. economy. China can fuel economic growth in the United States for decades to come. U.S. companies that plant the flag early, learn Chinese consumers’ tastes, and are willing to go on the wild ride that lies ahead will win the prize.

 He continues:

The math, which most Americans haven’t yet done, is startling. We have calculated that between 2010 and 2020, the people of China and India will consume some $64 trillion in goods and services. Chinese consumers will spend approximately $41.5 trillion, with annual expenditures increasing from $2 trillion in 2010 to more than $6 trillion in 2020... In China, annual per-capita income is projected to rise, on average, from about $4,400 in 2010 to $12,300 in 2020.

Chinese are not adverse to purchasing American goods and services. In fact, the general population welcomes American brands (just look at the successes of KFC, Apple, Ford, Hollywood, Starbucks, and numerous fashion brands such as Dana Karan and Ralph Lauren), not to mention the countless young (and old) entrepreneurs I meet every day who have come from the US to China to pursue growth in their current businesses or to start and contribute to new ones. American entrepreneurs, enterprises, and the government itself should be leveraging the growth of the Chinese middle class, not bashing it. 

Today's Big Stories for September 24, 2012

Island controversy, China as a jobs' bogeyman, coal mines, lower forecasts, automotive dealer plight, and iPads for students.

1. Japan PM says dispute with China could hurt economy

Noda, who is scheduled to make a speech to the United Nations General Assembly this week, addressed reports that Japanese companies are facing economic harassment in China, telling the Journal that "recent delays in customs and visa issuance are of concern." He said damaging economic ties between the two nations could hurt the global economy.

2. New Romney Ad: Obama afraid to 'stand up to China'

For the second time in as many weeks, Mitt Romney's campaign released a new television ad blasting President Barack Obama as weak against China on trade. "Fewer Americans are working today than when President Obama took office," the ad's narrator says. "It doesn't have to be this way. If Obama would stand up to China."

As I post previously today, China isn't the problem when it comes to American jobs. I guess China's still the jobs' bogeyman (for both candidates). Oh well. 

3. 22 trapped in three col mine accidents in China

Three separate coal mine accidents over the weekend left 22 miners trapped in northeast and east China, according to local government sources. Eleven people were trapped after a fire broke out Saturday morning in a coal mine in northeast China's Heilongjiang Province. The accident that occurred at the Longshan coal mine in Youyi County of Shuangyashan City was previously reported to have happened on Sunday as a result of the mine owner's attempt to cover up, the rescue headquarters said.

4. Asia mostly lower as commodity firms weigh

China’s GDP growth outlook was cut to 7.5% from 8%, while Japan’s forecast was lowered to 2%, South Korea’s cut to 2.5%, and Singapore’s trimmed to 2.1%, the credit-rating firm said in a statement. “Our lower forecast for China recognizes that the central government had elected not to inject an economic stimulus of a size and speed necessary for an 8% growth rate,” S&P credit analyst Andrew Palmer said in the statement.

5. Car dealers see market shift to lower gear

Car dealers nationwide have begun to experience life in the slow lane after government policies to spur sales ended last year. Also putting the brakes on sales were ownership restriction rules starting in late 2010 that were intended to ease traffic congestion in cities such as Beijing and Guangzhou. In addition, the economy has slowed this year, exacerbating the plight of dealers. "For some car brands, we have inventories on hand of up to four months worth of sales," Pang Qinghua, chairman of Pang Da Automobile Trade Co. Ltd. said. "The normal stockpile lasts for one and a half months."

6. Chinese high school gives free iPads to senior students

And the schools are making sure the students are focused on homework, too, by locking out popular social networking apps and other time wasters.

China isn't the problem

It's campaign season and that means renewed attacks on China from both sides of the American political aisle. The thing is, China is not the main driving force in inhibiting American job creation. That's what I've believed for a while and now comes this article from Peter S. Goodman at The Huffington Post which follows pretty closely my own thoughts. From his article:

Inevitably and regrettably, China has landed in the middle of the American presidential campaign. Both candidates are now laying claim to credentials as the ultimate guardian against the supposed job-killing, prosperity-destroying juggernaut across the Pacific.

This is inevitable because China's rise and its implications for global commerce are never far from any conversation about lost American jobs and diminishing middle-class opportunities. It is regrettable, because -- as both candidates know well -- "getting tough on China," as the tiresome mantra goes, will accomplish little if anything in terms of restoring vigor to a chronically weak American economy.

He continues...

If China is genuinely breaking international trade commitments in its production of auto parts, as the Obama administration alleged last week in fresh WTO cases, filing such complaints is a legitimate means of seeking redress. Ditto, the cases filed in other industries, not least in the manufacturing of gear for renewable energy production, a key emerging pursuit.

But anyone who suggests that these sorts of actions are going to fix what ails America is either naïve or disingenuous. If we were to magically remove China from the global economy, laid-off textile workers in the Carolinas would not suddenly get new jobs again making cotton T-shirts (though we might significantly hurt sales of American cotton, a highly subsidized commodity, which now gets purchased in great quantities by yarn factories in China). We would not suddenly resume building personal computers in California. (Though we might severely disrupt a global supply chain that has made a lot of people very wealthy in Silicon Valley, which in turn has fueled a consumer boom that's also enriched vintners, contractors, landscape architects, art dealers, lawyers, insurance salesman and, for that matter, taco stands, dry cleaners and every other part of the economy.)

These traditional pursuits would simply get dispersed, shifting from China to Vietnam, or Mexico or Turkey -- a shift that is already happening as Chinese wages climb.

He argues the main cause of manufacturing job loss in the US is not China but "the shift of production to lower-wage countries and the rise of automation." These are items that will not magically reverse if the US and US businesses suddenly cut all ties with China. What the US needs is more investment in education and science, not the hyping of a non-existant Chinese bogeyman. 
 

I received an email yesterday from the State Department

They're warning all Americans to avoid any anti-Japanese protests and to "stay abreast of media coverage of local events and be aware of their surroundings at all times." There has been some unrest this week and while I would be interested to see some of these 'gatherings' up close, I think I'll take their advice and stay away. 

On a side note, there was some sense of comfort in seeing a notification pop up directly on my phone from the embassy. It's nice to know they're looking out for me and will let me know within minutes if there is an emergency. It's a reassuring safety net.