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Blogs » Society » London Mayor Boris Johnson Welcomes You To The Olympics, Sort Of


London Mayor Boris Johnson Welcomes You To The Olympics, Sort Of

Posted: 24 Jul 2012 09:12 PM PDT

YouTube user Cassetteboy has posted a hilarious cut-up of Boris Johnson — who we last saw on this blog trying (and failing) to operate a Sina Weibo account — welcoming people to London for the Olympics (opening ceremony is Friday, in case you've forgotten). Some of our favorite parts:

"Something nasty is going to happen to you. Welcome to the so-called Games…

"It was the beginning of a dark age. A kind of cringe-making, clash of civilizations. The peoples of the earth sailed into the mouth of the Thames, a place of mud, illiteracy, and embarrassing diseases. London built this superdome in which took place entertainments which seemed shocking and depraved. Exactly the same experience as English public schools."

That was all within the first 40 seconds. Now go watch the rest. Youku video for those in China after the jump.

Benjamin Cost: 6 favorite dining spots in 2012 thus far

Posted: 24 Jul 2012 09:00 PM PDT

      
Some of you might be wondering where I like to go to eat, so today I'm counting down my top 6 favorite dining spots. Keep in mind, this is not an official list of the best eateries in Shanghai as deemed by one pretentious laowai food critic, just the spots I could eat at day after day and never grow sick of. Hopefully you can relate to them, find them helpful, or just be entertained by the verbal food porn. Note: I excluded Cantonese restaurants because while I firmly believe Cantonese is the world's best cuisine, these are restaurants I can also eat at on a regular basis and still make rent. [ more › ]

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CW Heated Debate: Is It Worth Learning Chinese in Shanghai?

Posted: 24 Jul 2012 08:11 PM PDT

Date: Jul 25th 2012 9:59a.m.
Contributed by: cityweekend_sh

Are you one of the expats who moved to China without learning any of the language? Now that you're in Shanghai, do you really need it?

This Truck Driver Is The Definition Of Lucky To Be Alive

Posted: 24 Jul 2012 08:39 PM PDT

We're not sure how this truck flipped over on a bridge in Gansu recently, but the driver was thrown from the cab and would have plummeted 10 meters to serious injury if not for his right leg being pinned underneath the truck. The rescue operation required three cranes and lots of ropes and harnesses. The man was successfully untangled after three hours, and everyone involved deserves a pat on the back. Youku video for those in China after the jump.

How M50 Changed One Shanghainese Art Professor into a Champion of the Arts

Posted: 24 Jul 2012 08:00 PM PDT

Date: Jul 24th 2012 11:57a.m.
Contributed by: amberwoo

Most are familiar with M50 as a creative haven of artist studios and galleries in Shanghai, yet few have a more intimate connection with its history than Image Tunnel founder Han Yuqi does.

Escape Shanghai: Float Along the Canals of Zhouzhuang

Posted: 24 Jul 2012 06:00 PM PDT

Date: Jul 24th 2012 11:20a.m.
Contributed by: geofferson

Get lost among the charming lanes and canals of Zhouzhuang. Bigger than Qibao, further off the tourist trail than showy Zhujiajiao and older than everything else (it recently celebrating its 926th birthday), you'll be able to recapture a certain tranquility in Zhouzhuang that's slowly being bred out of its brethren.

China VIEs And New Oriental Education. July 25 Webcast.

Posted: 24 Jul 2012 06:21 PM PDT

GLG Research is going to be moderating what I am certain will be a fascinating discussion tomorrow on China VIEs and the SEC's pending investigation into New Oriental Education (EDU). The event is entitled, VIEs – SEC Investigation into New Oriental Education and it will be taking place live on the net and by teleconference on July 25 at 2:00 PM EDT.

The two speakers at this event will be China Law Blog's own Steve Dickinson and Paul Gillis, Professor of Practice at Guanghua School of Management at Peking University.  The webcast/teleconference is expected to focus on the following:

  • The structure and legality of VIEs
  • The enforceability of New Oriental Education's (EDU) VIE contracts under Chinese law
  • The Significance of the SEC's investigation into EDU and its impact on other US-listed VIE companies.

For more information on this free event, go here.  If you miss it live, there will be an audio replay within around 24 hours and there will also be a transcript available for purchase.

For those of you who really want to prepare for this event beforehand, I recommend you read the following China Law Blog posts:

And the following China Hearsay posts:

And the following China Accounting posts:

And the following China Finance posts:

If you read all of the above, you will probably know more about VIEs than anyone else alive. If you are going to read just one post, make it "Explaining VIE structures." Oh, and just to give you more to read, I also recommend you read the Silicon Hutong post, "VIEs, The Long Resolution." In that post, David Wolf talks of how the Chinese government likes to "boil its frogs slowly, not all at once," and he then talks of how VIEs are on the wrong side of where China wants to be going.

‘Flying Kick Brother’ Subdues Knife Wielding Killer

Posted: 24 Jul 2012 05:12 PM PDT

Another lighter post while I'm at Buddha Camp.

This isn't a very light post. But, this video shows outstanding courage and is worth watching.

A man, reportedly mentally ill, went on to the Guizhou Normal University campus, wielding a 27-inch knife and stabbed two guards, who later died at the hospital Here's the video, viewed nearly 3 million times in China, of how he was subdued:

Interestingly, many of the comments in China focused on the photographer didn't help out. Turns out it was a female professor. Male or female, it would take a lot of courage to try to disarm the killer, especially after just watching him repeatedly knife the guard. That why 'Flying Kick Brother' is a hero.

You Know It’s No Longer Simple Road Rage Once The Machete Comes Out

Posted: 24 Jul 2012 03:00 PM PDT

Remember the advice that Nanjing motorist — who, even after suffering a split lip at the hands of a bully on the road, refused to fight back – gave last week? About the importance of keeping your cool, especially during "summertime," and how "a gentleman uses his mouth, not his fist"? There were some people in Tangshan, Hebei province recently who heeded none of it.

As reported by Jiangxi TV's Morning New Horizons show on Monday, a dispute arose after two cars bumped into one another while making a turn. A man got out and beat a woman bloody. That woman then called on some friends, who began chasing the man — at the beginning of this video, you see him scurrying into his car. The bloodied woman then smashes his window with a brick, and her friend, wielding a machete, appears to attempt to stab the man multiple times.

"Say, shouldn't traffic accidents be reported to traffic cops?" muses the news anchor at the end. "Acting violently will only result in more mistakes." Youku video for those in China after the jump.

Balding crisis engulfs the post-’90s generation

Posted: 24 Jul 2012 03:40 PM PDT

July 24 Wuhan Morning Post

The front page of the Wuhan Morning News today features a strange picture: the back of a bald-man's head with a nail sticking out of it, and a goat leashed to the nail. The goat is walking the circumference of its leash, eating the man's hair, making him bald. The headline reads " Why the baldness crisis has engulfed the post-90s generation."

The article says a recent survey of men aged 20 to 40 has shown that men today are, on average, losing their hair 20 years earlier than the previous generation. While the bald patch used to be a typical symbol of being successful and middle-aged, Chinese men born in the 90's generation are beginning to bald in their 20s. Some are even losing their hair as early as high school.

Experts believe this earlier hair loss is a "modern disease," related to the modern lifestyle. The article includes personal interviews with several young Chinese men who began balding early. It treats balding as a medical issue as opposed to an aesthetic one, and describes how Dr. Ping Aiping, a dermatologist at the Wuhan Union Hospital, frequently encounters cases of early-onset baldness. He says his hair-loss patients are getting younger and younger. These young men often feel insecure about their baldness and find it difficult to find employment. They are eager for medical attention.

The article advises that men count the number of hairs they lose each day. If that number exceeds 150 hairs, they should actively seek medical attention. The causes of hair loss are environmental, and include: eating too much meat, staying up late, and going to the salon too often. The article finishes by point out that, for young people, preventing hair loss is very simple: eat a light diet, rest and improve your way of life.

This front page stood in contrast to the majority of front pages today, which focused on an important speech Hu Jintao gave yesterday at the Opening Ceremony of the Provincial and Ministerial Level Leading Cadres Symposium. The speech was presided over by Xi Jinping, and attended by other high-ranking Party members, including Wu Bangguo, Wen Jia bao, Jia Qinglin, Li Changchun, Li Keqiang, He Guoqiang and Zhou Yongkang.

In the speech, Hu Jintao stressed that cadres should hold high the great banner of socialism with Chinese characteristics, take guidance from Deng Xiaoping's theory of "Three Represents," thoroughly implement the scientific concept of development, emancipate the mind, and continue reform and opening up along the road of socialism with Chinese characteristics. He noted that the 16th Party Congress has traveled a bumpy road, and will have to overcome a series of severe challenges to achieve the next phase of development.

The speech made headlines across the country, and was featured on many front pages, including the following examples:

Links and Sources
Wuhan Morning Post: 脱发危机 为何缠上"90后"?
Beijing Daily: 胡锦涛在省部级主要领导干部专题研讨班开班式上发表重要讲话强调 
CNN: How will China's tech-savvy post-90s generation shape the nation?  
Telegraph: China cancels visa restriction on bald Taiwanese visitors  
Wikipedia: Three Represents

China’s Official Olympics Song, “Best Wishes From Beijing,” Is Eight Minutes Of Dreadful

Posted: 24 Jul 2012 08:48 AM PDT

First of all, it's eight minutes. Say what you want about "Survival," London's official Olympics song, but at least Muse had the courtesy to stop at a reasonable five minutes and 20 seconds. For what is essentially an overproduced, commercialized ditty, what couldn't you possibly do in five minutes that you need eight?

Actually, we know the answer: you couldn't squeeze in "more than 100 singers and movie stars from Hong Kong, Taiwan and the mainland," according to Sina. It's an orgy of excess, and like most orgies, the participants come off as awkward and trying too hard, and no one gets the attention they deserve.

Jackie Chan, the video's centerpiece, is paraphrased in the Sina article as saying "celebs were desperate to get their chance to play a part in the song." That's too bad. The song's producers should have been a bit more discerning. Or written more lyrics. The song consists of 140 characters, and it only takes about 90 seconds to get through them. These same lyrics are repeated five times. It's an Andy Kauffman skit without any intent at humor. For crying out loud, the final six lines all rhyme on the same two-letter sound: bi/qi/ti/ni/yi/di.

I feel bad for everyone involved, most of all for those who can actually sing — because a lot of the performers are jaw-droppingly tone deaf. Under-planned and under-edited, Best Wishes feels like the work of a soulless music label recycling last decade's hits because it just can't be forced to give a shit. Normally it's cute when some culture-related subbranch of this government commissions a cuddly and soft-power-y project, but this… this abomination… why, while listening, do I conjure the image of a wombat trying to be a kitten? No, wet wombat, I do NOT want to see you roll on the ground or bat your toy mouse. I don't want you in my house. I don't want you to imitate a purr. Because you're terrible.

The lyrics are decent though. Here they are:

《北京祝福你》
Composer: 常石磊 (Chang Shilei)
Producer: 赵兆 (Zhao Zhao)

爱像地球仪转来转去
北京到世界多少里 伸手可及
爱划过轨迹 经纬两极
万里长城从东到西 烽火散去
北京欢迎你 欢迎你 给世界无与伦比
北京祝福你 祝福你 激励每一天传奇
北京祝福你 城墙上聊同一个话题
祈愿飘扬旌旗 绽放我和你
北京祝福你 星空下挂满四海霞衣
灿烂无边无际 共饮天和地

(Chinese to English translations errors are mine)

Love is like a globe turning round and round
How far is Beijing from the world? Within hand's reach
Love streaks across orbits, longitude to latitude, pole to pole
Dispersing the flames of the Great Wall from east to west
Beijing welcomes you, welcomes you, gives the world the incomparable
Beijing blesses you, blesses you, encourages a new saga every day
Beijing blesses you, on the city walls we'll speak on the same page
Pray and wave banners and flags, and blossom, you and me
Beijing blesses you, under the starry sky hangs fully the rosy clouds of four seas
Brilliant, boundless, sharing a drink with heaven and earth

(With help from Alicia)

If you're up for any more ridiculousness, here's a behind-the-scenes making-of Best Wishes From Beijing video.

P.S. I rather liked Beijing Welcomes You though (YouTube/Youku).

How To Serve A Complaint In China And In Taiwan

Posted: 24 Jul 2012 08:18 AM PDT

One of the many things that makes suing Chinese companies and individuals so difficult in the United States is the requirement that service be done according to the Hague Convention on Service Abroad of Judicial and Extrajudicial Documents in Civil and Commercial Matters, to which China is a party.  Service of an entity or person in China under the Hague Convention on Service must be done through the designated Chinese Central Authority in Beijing, which is the Bureau of International Judicial Assistance, Ministry of Justice of the People's Republic of China. To accomplish this, the US party must submit the following to China's Ministry of Justice:

  1. a completed United States Marshall Form USM‐94
  2. the original English version of the documents to be served (the summons must have the issuing court's seal)
  3. a Mandarin Chinese language translation of all documents to be served
  4. a photocopy of each of these documents. N
  5. a payment of approximately US$100 by an international payment order, payable to the Supreme People's Court of the People's Republic of China.

China's Ministry of Justice will then send the service documents to the appropriate local court. That local court will, in turn, finally effect service. In our experience Chinese courts are sometimes fairly slow to send out service. If the Chinese company or person you are suing is "powerful" service may be even slower. Repeatedly calling and emailing both the court itself and the Ministry of Justice can often expedite service. Service normally takes around one to three months.

Service on a Chinese company by mail is not effective and U.S. courts have held that China's formal objection to service by mail under Article 10(a) of the Convention is valid. See DeJames v. Magnificence Carriers, Inc., 654 F.2d 280 (3d Cir. 1981), cert. den., 454 U.S. 1085; Dr. Ing H.C. F. Porsche A.G. v. Superior Court, 123 Cal. App. 3d 755 (1981).

In International Service of Process in Taiwan? Relax, it's FedEx the International Technology Law Blog describes what is required for service in Taiwan and it is (at least compared to China) a piece of cake.  This is because Taiwan is not a party to the Hague Convention.  The International Technology Blog notes how in the recent case of SignalQuest v. Chou, the New York District Court judge affirmatively answered his own question of "When service of process absolutely, positively has to be effected on a Taiwanese defendant pursuant to FRCP 4(f)(2)(C)(ii), is Federal Express enough?"

The Court held that because Taiwan was not a signatory to the Hague Convention on service, Federal Rule of Civil Procedure (FRCP) Rule 4 would control. Rule 4 authorizes foreign service of process by letters rogatory or under the foreign country's own laws on domestic service of process. But as the International Technology Blog points out, "the letters rogatory process takes months to complete, as it requires the assistance of courts and government offices in both countries."  Service under Taiwan's domestic requirements would have been "no less cumbersome, because Taiwan's law requires service to be made by the clerk of Taiwan's court."

So the plaintiff in SignalQuest served the Taiwan defendant by Federal Express and argued that was proper under FRCP 4(f)(2)(C)(ii), "which permits process to be served on a foreign defendant – unless prohibited by the foreign country's law."  The defendant then moved to dismiss the case, arguing that because service by overnight courier is not permitted under Taiwan law, it must be deemed prohibited, for purposes of FRCP 4(f)(2)(C)(ii). "The court disagreed, holding service is not prohibited under foreign law unless it is expressly prohibited and it found the service by FedEx was proper."

Sounds great, right?  Well International Technology Blog astutely points out one potentially massive flaw in serving a Taiwan company via Federal Express:

As a practical matter, service by FedEx may have been an acceptable solution for SignalQuest, where plaintiff was seeking only a declaratory judgment of [patent] non-infringement in the U.S., but a plaintiff should think twice before attempting such a tactic in a case where enforcement may be required in the defendant's country. In Taiwan, a foreign judgment cannot be enforced until it has been recognized by a Taiwan court and there's a fair likelihood Taiwan courts may refuse to recognize any judgment where service was made by mail, e-mail or other unorthodox means.

It would seem then that in most cases, a plaintiff suing a Taiwan company should do so through the clerk of Taiwan's court, which also no doubt requires that the complaint be translated into Chinese.

Suicidal Tendencies

Posted: 22 Jul 2012 06:00 PM PDT

Samuel had always appreciated architecture, which was why he had insisted on hiring a top-tier architect to design his new office. So how ironic that it would be here - in the iconic glass lobby that had symbolized his success - that he would end both his career and his life. It had not been an easy choice, but what other could he make? In the last week everything he had lived for had been taken away in an elaborate and cruel con game in which even his closest friends and relatives seemed complicit.

Learning Chinese? In our Chinese lesson for today, Brendan, David, Echo and take to our studios to talk about scams in Chinese. This lesson features a fast and natural-speed dialogue involving a man on the brink, so if your mandarin is already at the intermediate level, join us for both it, as well as a discussion on common scams in China and the language you need to know to talk about them. And let us know what you think in the comments section below.

This posting includes an audio/video/photo media file: Download Now

What’s Driving China’s Real Estate Rally? Part 2

Posted: 24 Jul 2012 07:23 AM PDT

Yesterday, I began an investigation into the potential causes behind the latest bump in China's property sales numbers, and whether they portend a genuine turn-around in the nation's real estate market.  I noted that five basic theories to account for what has been happening, and promised to examine them each in turn:

  1. Lower Prices are Bringing Buyers Back
  2. Looser Restrictions are Unleashing Pent-Up Demand
  3. Optimistic Buyers are Misreading the Market
  4. Government Intervention is Boosting the Numbers
  5. Developers are Fudging Numbers to Stay Afloat

In my last post, I concluded that it was certainly possible that a fall in both real and nominal property prices could explain a recovery in sales, as properties become more affordable to buyers.  However, this theory cannot explain the rebound in property prices reportedly taking place, nor should it offer much comfort to hard-pressed developers, who would may have to endure steep losses to clear their inventories at reduced prices.  Chinese developers and bullish real estate investors much prefer a second theory that promises a return to both higher sales and higher prices.

2. Looser restrictions are unleashing pent-up demand.  The conventional explanation that you will hear for China's real estate slowdown, from developers and from most of the media, is that it's a direct result of government policies designed to "cool" the property market, including tightened rules on mortgages, residency requirements for buying, and — more than anything else — restrictions on multiple home purchases.  As a result, many who wish to buy are not allowed to do so.  If the government would only relax these restrictions, the argument goes, all that pent-up demand would come back onto the market.  As the chart below illustrates, in contrast to the first theory we examined, introducing new demand (shifting the entire demand curve to the right) would boost sales for any given price, and cause both quantity and price to rise to a higher equilibrium point.

This is a dream scenario both for developers and for local governments that depend in various ways on a booming property sector, which is why both have been baying for months if not years about the need to relax the restrictions. Some local governments have succeeded in loosening or circumventing the central government's tightening measures when Beijing wasn't looking, and May brought a surge of rumors that the central government itself would have no choice but to reverse course as part of its effort to re-stimulate a slowing economy, a belief that prompted one Beijing developer to quip, "Ducks first know when the Spring river water begins to warm" — in other words, "Happy days are here again!"

But is the conventional story — that China's government drove down the real estate market, and can just as easily resuscitate it — really correct?  The evidence, I believe, demonstrates it is not.

Most of the government's measures aimed at "cooling" the property market were adopted in April 2010 — over two years ago.  I remember it well, because I argued at the time that such top-down restrictions would do little to change the dynamics that drove so many Chinese to pour so much money into vacant, unproductive real estate as a form of savings.  I also distinctly remember the government ordering developers in key cities to take their most expensive units temporarily off the market, in order to (statistically) reduce the average market price and thereby show that the policies were producing immediate results.  "Mission accomplished" was quickly declared.

The chart below, courtesy of Joanna Dong, the chief China economist at the mining firm Anglo American, shows the number of Chinese cities (out of 70 tracked in the official statistics) where property prices rose (blue) , fell (yellow), or remained the same (orange) each month.  It is not weighted by market size, but it offers a good "heat map" of rising and falling prices by geography.  And along with the national statistics on property sales and investment, it tells a very interesting story.

After the government's cooling measures were adopted in April 2010, nationwide property sales did not decline, as one might expect.   They rose by 18.3% YoY in 2010 and 24.1% YoY in the 1st half of 2011.  Nor did real estate investment, which rose by 33.2% YoY in 2010 and 32.9% in the 1st half of 2011.  In other words, the government's cooling measures had little appreciable effect on a booming property market for the first 16 months they were applied, at least when measured on a nationwide basis.

The 70-city price map tells a bit more nuanced story.  First you see a drop in about 20 key cities, which corresponds to the politically-engineered withdrawal of high-end units I mentioned.  Then you see — strangely enough — a big surge in the number of cities reporting price increases which lasts until the summer of 2011, when the bottom falls out of the whole market.  Again, for the first 16 months or so that "cooling measures" were in place, property prices continued rising in a large majority of Chinese cities, instead of stabilizing or falling.  What happened?

The fact is, the government's "cooling measures" were not terribly effective.  Premier Wen Jiabao admitted as much at the end of 2010.  They were only enforced in a few key cities, and even then, if you really wanted to purchase  multiple apartments in Beijing, you could probably figure out a way to do it (through relatives, nominees, false documents, etc).  What the "cooling measures" did do, however, was send investors a signal that, if they wanted to see outsized returns, they'd do best to look for them outside high-profile cities like Beijing and Shanghai, when China's leaders were at least trying to rain on their parade.

Government-imposed restrictions didn't rein in Chinese demand for real estate, as the national numbers indicate.  But they did shift buyers' attention away from a handful of 1st-tier cities — where prices stabilized or fell — towards 2nd and 3rd-tier cities in the provinces — where, as the chart shows, they surged.  In other words, the party didn't end when the cops showed up, it just moved down the street.  In the summer and fall of 2010, I visited a number of provincial cities and asked developers there how the central government's "cooling" policies were affecting their business.  Every single one of them reported that they had experienced no effective restrictions; to the contrary, investors from other cities were showing up  literally holding sackfuls of cash, looking to buy.  When "cooling measures" were gradually extended to more cities, developers responded by building luxury condos and villas out in the countryside, whose sole selling point was that they lay outside the restricted zone, permitting investors to buy as many units as they desired.

China's property market continued booming right through the summer of 2011, when — as the price chart shows — the wheels abruptly fell off.  Why the sudden implosion?  Because even as sales grew by 20% or so, investment in property development expanded at an even faster rate, higher than 30%.  The government's ineffectual "cooling measures" had lulled developers into a false sense of security: believing that buying restrictions had artificially suppressed demand — which was not true, except on a very localized basis — many developers borrowed heavily to build far more than they could sell, reasoning that they would be in a winning position when the government ultimately relented and relaxed its controls, and all that pent-up demand came flowing back onto the market.  To support these rising unsold inventories, however, they needed to borrow more and more money — at the precisely the time China's central bank was reining in credit expansion to combat inflation.  By the end of last summer, Chinese developers finally ran out of funding options and were forced to begin liquidating their inventories to generate desperately-needed cash.  The fire sale they initiated quickly undercut existing demand, as would-be buyers who had once rushed to beat rising prices now held back, now that every day brought larger discounts.

So if the government's "cooling measures" were NOT the cause of China's property downturn, is there any way the relaxation — or anticipated lifting — of those measures can possibly explain the rally we've seen over the past couple of months?  Surprisingly, the answer may be YES — but the implications are not what struggling developers or China property bulls might like to imagine.

As we've seen, the government's restrictive measures did not suppress overall demand, as many imagined.  They merely redirected that demand away from 1st-tier cities, towards 2nd and 3rd-tier cities, as well as the countryside.  Undoing those measures would have the opposite effect: allowing demand to flow back to 1st-tier cities like Beijing and Shanghai, while cutting the legs out from under the lower-tier (and potentially much more vulnerable) markets that benefited from the earlier diversion.  Prime urban areas would see higher sales and higher prices, but the nationwide effect would be a wash.  That may help explain the apparent disconnect between the rather astonishing statistics we see coming out of Beijing, Shanghai, and other big cities, and the much less impressive results revealed in the national statistics for June.

It's also interesting to note, as well, that the latest rebound in Beijing, for instance, took place in anticipation of a policy change, even though buying restrictions and other "cooling" measures remained largely in place.  That accords with my argument that it was the policy signal, rather than the practical effect of the restrictions themselves, that led buyers to shy away from Beijing and similar markets and channel their interest elsewhere.  When the signal was perceived to have changed — when people came to believe the government would welcome a rebound in the city's property market — they rushed back in, revealing the restrictions themselves to be an inconvenience, at most.

Critics will respond that, in fact, it was the government's restrictive policies — its efforts to rein in lending — that brought the real estate market down.  But it's important to note that China's leaders had little choice, given the need to combat rapidly rising inflation.  More relevant to my argument, the constraints imposed by credit "tightening" (relative to developers' spiraling credit needs) fell mainly on developers, not buyers — it did not create any reservoir of "pent-up demand" that later could be "unleashed" to boost the market.

This concept is worth clarifying.  Developers, investors, and analysts often talk about there being "pent-up demand" in China for buying homes.  But as I hope these last two discussions have illustrated, "pent-up demand" can mean very different things.  In Theory #1, it means that if prices fall, the quantity demanded increases, although the calculus for demand does not change.  In Theory #2, it means that a change in policy could shift the entire demand curve outwards, increasing the amount demanded at any given price.  I have just argued that, in fact, it could mean demand increases in one location only at the expense of another, with overall demand remaining the same.  All of these are very different dynamics, with different implications for developers, investors, and the Chinese economy.  Very often, people conflate them under the broad and appealing notion that 1.3 billion people in China would really like to buy as nice a home as possible, if only they could.  Of course they would.  The essential question is under what conditions this general desire gets translated into actual purchases and at what price.

Next Installment:  Theory #3, Optimistic buyers are misreading the market. 


Female with mini-skirt gets half off park admission discount in Guilin

Posted: 24 Jul 2012 01:16 AM PDT

From Netease and other source:

20120721-skirt-12

The promotion launched by a park in Guilin triggered lots of controversy. A theme park in Guilin launched the campaign, "Happy Summer Loves Mini-Skirts", stipulating that from July to August, females who are over 18 years old, with skirts shorter than 38cm, could enjoy half price adminssion, which is 55 RMB. And on July 21st and 22nd, qualified females could enjoy 10RMB ticket before 12pm.

But some netizens expressed their objection, deeming it a vulgar publicity stunt without any meaning, and an unhealthy low-class event.

Guilin Merryland said that we had this promotion for 5 years since 2007, and due to positive feedbacks, it had been kept. And the park did not agree with netizens on that it was a vulgar act.

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Despite its continuous controversy, this campaign reached its peak on July 21st and July 22nd when qualified visitors could enjoy 10 RMB tickets. The amount of total visitors increased instead of declining. Statistics showed that around 12,000 visitors entered the park on July 21st.

In order to participate in this campaign, many female visitors who wore pants changed into a mini-skirt before they bought tickets, and changed back after they went inside. Mrs. Su, a visitor, said it was a bit troublesome, but both the length of skirt and the ticket price were acceptable and such a good deal.

July and August are the peak season for this theme park, and the "mini-skirt festival" not only greatly increased the amount of visitors, but also brought new business opportunities for some merchants. The booth, under the tree which was only 20meters away from the ticket office, offered mini-skirts in various colors and attracted many females. According to the cart owner, their target consumers were visitors from other cities, who did not know this mini-skirt promotion and hence were not prepared for it. The mini-skirts were well received by these visitors because the total price of the skirt (30-40 RMB) and ticket (10 RMB) was still slightly lower than a half price ticket. They sold near 200 skirts in a single morning.

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Cambodia’s deadly land grab battle

Posted: 24 Jul 2012 02:55 AM PDT

Cambodia is a microcosm of a violent struggle playing out across the globe for control of a shrinking – and therefore increasingly valuable – pool of natural resources. Corinne Purtill reports.

On 26 April, Cambodian military police shot the environmental campaigner Chut Wutty as he sat at the wheel of his blood-red Land Cruiser. Chut, 46, had just led two journalists through an illegal logging operation in Koh Kong province. As the journalists fled into the bush for safety, they heard two more gunshots behind them.

They emerged to find Chut slumped lifeless in the driver's seat and military police officer In Rattana lying dead in front of the vehicle. Police initially claimed that the dead officer killed Chut during a heated confrontation, then turned his rifle around and shot himself – twice – in remorse. After a three-day investigation in May, a government panel decreed that a second officer accidentally shot In while trying to disarm him. The case is officially closed.

The murder of Chut Wutty is just one in a string of violent encounters in Cambodia this year between armed authorities and civilians working to protect access to the rapidly diminishing supply of arable land and forest not sealed off by economic concession.

Twenty-two people have been injured in eight separate incidents since November, according to the rights group Licadho. In January, soldiers hired as private security by a developer in Kratie province opened fire on villagers protesting forced evictions. On 17 May, three weeks after Chut's death, soldiers shot and killed a 14-year-old girl as she hid behind a woodpile during the forced eviction of a village that falls within a new economic land concession.

In its 20 years as a nominal democracy, Cambodia has been no stranger to politically-motivated violence. What's different now, longtime observers say, is that the guns are trained not on high-profile political targets but on civilians whose only crime has been to resist the increasing encroachment of private economic interests on the land, forests and other natural resources they rely on to survive.

The attacks have cast a grim pall over the burgeoning grassroots networks that have cropped up in recent years to protect local communities.

"I [am] really worried about my security but . . . it's our life, our rice paddy, our forests, our land," said Seng Sokheng, an activist with the Community Peacebuilding Network in Oddar Meanchey province. "If we do not stand up for ourselves and each other, no one else will."

The lawless rush for resources

Home to a largely rural population of 14.7 million people, Cambodia boasts an enviable supply of tropical forests, gem-rich hills and productive farmland. As an increasing number of domestic and foreign investors have taken note of those natural resources in recent years, the government has doled out economic concessions at an astonishing rate. Private firms now control nearly one-quarter of Cambodia's surface area, according to a joint report released in March by Licadho and The Cambodia Daily newspaper. No part of the country appears off-limits – the Ministry of Environment has so far signed over 10% of the national conservation areas under its control to private plantations, the joint investigation found.

In defiance of Cambodia's own laws, many of these concessions have been granted in secretive terms with little or no public consultation or environmental assessments. The government has handed over tracts of pristine forest, wildlife sanctuaries and lands containing the homes and farmlands of thousands. More than 400,000 Cambodians in 12 provinces have been affected by land disputes in the last decade, Licadho reports.

In response to the rising public outcry, prime minister Hun Sen announced in May a freeze on new land concessions and a review of existing ones. The prime minister has since signed off on an additional 65,000 hectares of new concessions, while arguing that the deals are legal under the terms of the ban. Evidence of a review of existing concessions is yet to materialise.

The impression for many ordinary Cambodians is that their livelihoods, their communities, the very land beneath their feet could be snatched away at any time.

"Our communities are not legally recognised," said Mom Sakhin, a campaigner in Kratie province. "When we ask for support from the authorities, they ignore us."

In addition to the violent crackdowns on protests and attacks on individuals such as Chut Wutty, campaigners report increased harassment and disruption to their activities. On 18 June, authorities in Preah Vihear province blocked a planned meeting of the Prey Lang Community Network, a grassroots group of locals campaigning for the preservation of the Prey Lang evergreen forest.   

Communities fight back

Cambodia is a microcosm of a violent struggle playing out across the globe for control of a shrinking – and therefore increasingly valuable – pool of natural resources. More than 700 people have been killed in the last decade while working on behalf of the environment or communities affected by environmental projects, according to a recent report from the watchdog group Global Witness. The rate of killings doubled between 2009 and 2011.

The apparent willingness of authorities to defend concessions by force – including those of dubious legality – is an alarming development for those working with affected communities.

"We're getting into a real crisis," said Markus Hardtke, a longtime environmental campaigner in Cambodia, at a panel honouring Chut Wutty at London's Frontline Club earlier this month. "We have reached a stage where it's borderline anarchy in the provinces."

While organisers report that the recent high-profile attacks have intimidated some potential recruits, many more say they are unbowed – even hopeful. The release of 13 women imprisoned for protesting a forced eviction in Phnom Penh led to a spontaneous party in the streets of the capital last month. Other campaigners say the stakes are simply too high to quit now.

"If the authorities charge me for something bad or accuse me of being political opposition, if they keep me in a provincial office or put me in prison, I do not care," said Pok Hong, a mother of five and activist in the Prey Lang Network. "I do not care about death."


Corinne Purtill is a journalist based in London.
 

Homepage image by RFA

Bayern Munich Plays At Workers Stadium Tonight, Near Where A Bus Was Stuck Earlier Today [UPDATE]

Posted: 24 Jul 2012 04:22 AM PDT

This very moment, fans of Bayern and Guo'an are milling around Workers Stadium in anticipation of tonight's 7:30 friendly between the Munich and Beijing football clubs. Not far from there, on Workers Stadium (Gongti) North Road, a bus was stuck earlier today when part of the street caved in. The above picture appeared on Sina Weibo at 3:15 pm, and we're told it was near the cross-street Xingfu Yicun Baxiang (幸福一村八巷).

We've written several times about road collapses in China, most notably a sidewalk in Beijing that swallowed a woman before scalding water flowing underneath boiled her alive. (There was also the sidewalk that sucked in a girl in Xi'an, and this, and this.) It doesn't seem like anyone was injured in this most recent episode, and the people I know in the area say a large vehicle is not currently stalled on the side of the road, so, you know, that's an improvement over being boiled alive. (UPDATE, 7:38 pm: The bus is still there! Pictures forthcoming after the jump.)

We would still highly recommend avoiding Gongti tonight if you're driving though, especially around 9:30 pm, when soccer fans stream outside.

UPDATE, 8:04 pm: Via Tori Cook:

(H/T @MissXQ, Alicia)

Video of the Week: Horse Riding Fitness Ace Power

Posted: 24 Jul 2012 03:51 AM PDT

Date: Jul 24th 2012 9:09a.m.
Contributed by: clairebared

Every week City Weekend features a new video circulating the Internet. This week we are looking at the new fitness craze sweeping Korea. The Horse Riding Fitness Ace Power!

TICT Beach Party at Bund Beach

Posted: 24 Jul 2012 03:22 AM PDT

Date: Jul 24th 2012 6:06p.m.
Contributed by: cityweekend_sh

Every week, City Weekend Shanghai posts photo galleries of Shanghai's best parties. Today we're posting the party pictures from TICT party at Bund Beach.

Speak Cantonese! Language War in Hong Kong Book Fair

Posted: 24 Jul 2012 02:18 AM PDT

Columnist Leona Wong talked about a Cantonese-Mandarin language war happened in a lecture given by movie director Pang Ho-cheung for the Hong Kong Book Fair 2012

From Beijing to Hong Kong, Pang Ho-cheung (Part 1)

On the left: RTHK Mandarin channel's host Chen Jian
On the right: Movie director Pang Ho-cheung

It is hard to imagine that a little Cantonese war would break out in a book fair.

Pang Ho-cheung, who has sojourned in Beijing for 2 years, returned to the Hong Kong Book Fair today. Perhaps his movie "Love in a Puff" is too popular in Mainland China that Mainlanders have "expropriated" him. In order to serve the big Mainland Chinese market, the organiser arranged Mandarin speaking host Chen Jian to talk with him. (Chen Jian is a host from RTHK Mandarin channel and she is from Shanghai.)

Wearing sunglasses and heavy makeup, Ms Chan asked questions in Mandarin from the start. At that time, under the stage, there was a small uproar. However, everyone still showed restrain. Pang's Mandarin is not very fluent. He made fun of himself and said, "You listen to my Mandarin, it is hardly imagined that I have stayed in Beijing for 2 years!" Even though his speech was not smooth, he could still fully answered questions.

After answering questions, Pang's face showed a sign of relief. He asked audiences, "It seems that I don't have to continue to talk in Mandarin?"

Under the stage, there was enthusiastic applause. Some audiences could not help shouting lightly, "Speak Cantonese!"

However, the host did not let him off. She said that there were many audiences who came from Mainland China just to listen to his lecture and she asked Pang to continue to speak in Mandarin as they cannot understand Cantonese.

As one can well imagine, this suggestion provoked the discontent of Hongkongers. The host crossed swords with audiences on the issue of who should yield to whom. Pang is very smart. He noticed that every time when he mentioned that he would like to speak Cantonese, audiences under the stage would applause. Therefore, he asked,

"Those who don't speak Cantonese please clap your hands." There were scattered clapping sounds.
Pang responded swiftly, "You clapped your hands, you do speak Cantonese, don't you?" There was thunderous applause under the stage. The war between Cantonese and Mandarin was halted temporarily. Pang started using the familiar language which he and most audiences share to discuss creation.

However, the war had not ended. Someone gave the host a slip of paper. The sharing of Pang was interrupted. The slip of paper said they could not understand Cantonese and requested Pang to speak in Mandarin.

There were many grunts of disappointment and discontent under the stage. At that moment, Pang spoke in "Mandarin" with his grim face, "Actually, my Mandarin is quite incomprehensible. If you want to understand, you should learn a bit of Cantonese." He promised to use Mandarin in Q&A session to slightly balance the situation. The war between Cantonese and Mandarin in Peng Ho-cheung's lecture was finally put to an end.

Pang Ho-cheung, many audiences in the lecture and I have lived in Hong Kong for several decades, never had we imagined that speaking Cantonese in our own place would require "battling" repeatedly. My heart is full of doubts and alarms. When Mandarin speakers go to regions that speak other languages, I do not understand why others have to speak Mandarin to yield to them? Could it be possible that the language of the Strong Country has became a world language because the British Museum has Mandarin speaking tour guides and Louis Vuitton in France has a Chinese student serving as a salesperson? Could it be that this kind of request only happens in Hong Kong because they understand that you Hongkongers have to surrender?

In this lecture, Cantonese "did not lose the battle" somewhat because Pang Ho-cheung himself refused to compromise. Not only did he cleverly defend his own will, but also he gave face to the other side. He said that when he learnt that Guangdong province requested the media not to broadcast in Cantonese, he was agitated because when the use of a language declines in the public media, the next generation will refuse to speak it. "I can't accept that. I really like Cantonese." he said. Because of that, he shot a film called "Vulgaria" so that he could use Cantonese obscenity as much as he wanted.

I hope that more Hongkongers will be like Pang Ho-cheung. Even if you have to flatter the Mainland Chinese market, you can still have some perseverance and this may not necessarily hurt your popularity in Mainland China.

Thanks for the effort of Pang Ho-cheung, today conference rooms S225/227 was the home field of Cantonese.

Netizens' comments

Lam: I was also at the lecture! After speaking 10 minutes of Louis Koo style Mandarin (*Mandarin with heavy Cantonese accent), director Pang suddenly used Cantonese to ask the host, "Actually, can I switch back to speak in Cantonese?" Immediately, there was thunderous applause. It is really fantastic!

****more comments later****

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