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Blogs » Society » Cause What Happens In China Doesn’t Stay In China.


Cause What Happens In China Doesn’t Stay In China.

Posted: 03 Mar 2013 08:32 PM PST

More than seven years ago (that has to be the blogosphere equivalent of an eternity, right?), in a post entitled, Is China Going Green? we wrote admiringly about a big company that had one high environmental standard for the entire world:

We are aware of a large Fortune 500 retail company that is opening units in China that meet or exceed the toughest United States environmental laws.  I estimate this company's environmental sensitivity will cost them at least an additional $25,000 per retail unit, yet I am firmly convinced this company is doing the right thing.  This company's actions make sense because the odds are good that China's environmental laws and enforcement will get tougher over time, and building environmentally sound units now will almost certainly cost less than having to retrofit existing units a few years from now.  On top of this, people often get very emotional about the environment and I can see Chinese citizens getting very angry with a foreign company whose units in China are less environmentally sound than their units in the United States or elsewhere.  This is obviously even more likely to be the case if there were to be some sort of environmental disaster.

Whenever I talk about ways to protect Intellectual Property from China, I always mention the option of providing "last year's model" to China but in the last few years, I have stared adding how this is getting much more difficult as Chinese buyers are now very much aware of what is and is not a current model and they are more and more demanding the latest.

Today's Financial Times has an article on how Samsung is suffering on the PR front and being sued in France for the way its China subcontractors treat (or mistreat) their employees.  The article is entitled, "Samsung code of conduct put to test" and it does a really good job discussing how companies whose pitches to the public/investors differ from reality are setting themselves up for potential PR and legal problems.  The money quote is definitely the following:

The case highlights intensifying international scrutiny of working conditions in China, as well as growing concerns about multinational groups' control over their complex supply chains. If successful, the lawsuit could open a new legal risk for companies whose suppliers breach labour laws.

When I was a legal pup, I handled the international litigation/arbitration for a multinational truck manufacturer (long ago sold off to any even bigger multinational truck manufacturer).  My client's literature described its trucks as "ultra heavy duty" and also as "the best built truck in the world."  I actually think both of these things were pretty much true, but after arbitrating against a top-flight lawyer who whenever I would talk about how you have to expect some initial problems with any massive truck (as opposed to a luxury car) would point out how that might be true for some trucks, but his client really expected more from an "ultra heavy duty truck" that is "the best built in the world."  Though the client did shockingly well at the arbitration, I was able to prevail upon them to change their marketing to better suit legal realities.

I am NOT saying that is what Samsung should do here because I have no more knowledge of Samsung's marketing or its employee handling than is contained in this one FT article, but I am saying that every company doing business in China to start realizing that what happens in China doesn't stay in China.  This means recognizing that your China supply chain is your supply chain, no ifs ands or buts.

Not anymore.

What do you think?

Say Rat Tar Art Bar 10 Times Fast

Posted: 03 Mar 2013 07:45 PM PST

Date: Mar 4th 2013 11:33a.m.
Contributed by: katvelayo

25 arrested in first 3 days of new Hong Kong milk powder restrictions

Posted: 03 Mar 2013 08:00 PM PST

Twenty five people have been arrested in the first three days following the implementation of a new regulation designed to limit the amount of infant milk powder that is brought from Hong Kong to the mainland. [ more › ]

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Is your Mandarin good enough to join MI5?

Posted: 03 Mar 2013 07:00 PM PST

Is your Mandarin good enough to join MI5? Sharp-eyed Redditors spotted that the United Kingdom Security Service, commonly known as MI5, has posted example language proficiency tests online for its 'Mandarin Intelligence Analyst' roles. [ more › ]

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Toxic Avenger @ Arkham

Posted: 03 Mar 2013 06:45 PM PST

Date: Mar 4th 2013 10:30a.m.
Contributed by: cityweekend_sh

Media Markt Closing (For Real this Time) [UPDATE: NOW CLOSED]

Posted: 28 Feb 2013 08:43 PM PST

Date: Mar 1st 2013 12:43p.m.
Contributed by: geofferson

Gallery: Taiwan's new vomit-inducing cutesy trains

Posted: 03 Mar 2013 06:00 PM PST

     
Taiwan's public transport bureau has really nailed it: if you want to promote tourism, cover your trains with super-garish unicorn vomit, and the tourists will come in droves. Right? Taking influence from Japan's obnoxious Pokemon Jetplane updated trains in Taiwan will feature "Miss Taiwan Railway" figures plastered along their sides. The figures not only have names, but also birthdays and blood types. Because that's the reason people weren't taking the trains. [ more › ]

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Toni & Guy's New Flagship Store in Xintiandi

Posted: 03 Mar 2013 05:47 PM PST

Date: Dec 19th 2012 10:30a.m.
Contributed by: cityweekend_sh

We road test their new sleek salon

Watch: Most casual men ever hold truck with their shoulders

Posted: 03 Mar 2013 05:00 PM PST

Taking inspiration from last week's epic stacking, a truck driver attempted to deliver some severely overloaded cargo, only to be stopped by wind and gravity. Cut to 00:41 for the most casual men in the world supporting an entire truck on their shoulders, Atlas-style. [ more › ]

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Jackie Chan is latest target of criticism over military car privileges

Posted: 03 Mar 2013 04:55 PM PST

Jackie Chan is latest target of criticism over military car privileges Shanghaiist favorite Jackie Chan has once again found himself the center of controversy after photos of him stepping into a car with military license plates in Beijing were posted on Sina Weibo on Friday. The photos were exposed at a time when the abuse of military vehicles and their privileges has increasingly come under fire. [ more › ]

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Presented By:

Posted: 03 Mar 2013 04:55 PM PST

Report: 900 dogs rescued from cramped truck in Chongqing

Posted: 03 Mar 2013 08:53 AM PST

Another day, another truckload of dogs saved from slaughter. Yesterday, an animal rescue shelter said 900 canines were rescued from a truck in Chongqing. Reports AP:

Chen Mingcai of the Chongqing Small Animal Protection Association said that a travelling citizen became suspicious of the truck and called police, who detained the truck driver on Friday night.

Chen said he was later contacted by a netizen who had seen a photo of the dogs left in the truck on the entrance of an expressway in southwestern Chongqing city.

Two dogs reportedly did not make it, but the story was posted to social media, and as we've seen it happen before, concerned citizens went to the scene to see if they could help.

He said that by Saturday afternoon volunteers from the animal center and other animal lovers who had seen postings about the dogs on social media had arrived at the truck wanting to help the dogs. Chen says three people were injured in clashes with suspected dog sellers who had also turned up.

Forty to 50 volunteers are currently taking care of dogs, and it's unclear what will happen to them.

China Volunteers Rescue 900 Dogs in Cramped Truck (AP)

The Situation Is Excellent: The Week That Was At Beijing Cream

Posted: 03 Mar 2013 07:59 AM PST

February 25 – March 3

A teenager pooped into a trash receptacle in Guangzhou Subway, leading authorities to publish a handy map on bathroom locations. Mo Yan gave his first interview – to Der Spiegel – since winning the Nobel Prize in Literature. The Beijinger's literary contest produced comedy gold, and here are China Twitter accounts you probably already follow.

Dennis Rodman became the first American to meet Kim Jong-un in office, because Kim was a big Rodman fan from his Chicago Bulls days. Rodman called Kim "an awesome kid."

Jon Pastuszek wrote about the CBA playoffs. Justin Mitchell wrote a touching story about his family — old and new – in Shenzhen for Lantern Festival. Xiao Yi wrote about netizen reactions to a North Korea thing. And Robynne Tindall's first piece for us was about a naked official with a vindictive girlfriend.

A German TV crew was attacked in Hebei province. Extreme sports pioneer Yi Ruilong died in a hang-gliding crash caught on tape. The CBA All-Star Weekend produced a very funny dunk contest.

Forget the pollution: it's wind that wreaks havoc. An alpaca and red panda died in a zoo. Wuhan's serial finger-biter was captured. Ang Lee won the Oscar for Best Director, said Chinese and Sanskirt in acceptance speech.

The controversial sign in a Beijing restaurant that warns away Japanese, Filipino, and Vietnamese diners has been removed. Yan Linkun, the airport official who went berserk after missing his flight, has been punished.

Public sex. PornHub still not blocked. Beijing Undie RunPervy panda.

Comment of the Week:

@mgerrydoyle @beijingcream "Oh, The Places You'll Poop!" – new Dr. Seuss China series

— Sid Ackerさん (@siddharma) 2013年2月28日

|Week in Review Archives|

Rodman Calls Kim Jong-Un “An Awesome Kid,” Has First Post-North Korea Interview With George Stephanopoulos

Posted: 03 Mar 2013 07:55 AM PST

This is getting more bizarre by the second. Dennis Rodman appeared on ABC's This Week with George Stephanopoulos earlier this morning to do his first public interview since returning from North Korea. What?

He had a message, too (one which the State Department, for the record, has no interest in):

"He wants Obama to do one thing: Call him. He said, 'If you can, Dennis – I don't want [to] do war. I don't want to do war.' He said that to me."

Watch as Stephanopoulos asks Rodman if he has a "responsibility" to ask the leader of North Korea about his human rights record. Because Rodman's the one we want doing that, huh. More out of The Worm:

"[Kim] loves basketball. And I said the same thing, I said, 'Obama loves basketball.' Let's start there."

The British never will be able to broach peace with North Korea because they don't get basketball. Just remember that.

Rodman left Pyongyang on Friday, but not before giving this memorable quote to Xinhua:

Kim "is like his grandfather and his father, who are great leaders, he is an awesome kid, very honest and loves his wife so much."

An awesome kid. How many North Korean scholars are crying into their pillows, spiteful that history will forever remember Rodman as the first American to meet Kim Jong-un since his ascension to power?

What we still have to sort out is what Kim and co. believe they gain out of allowing him in the country — and, for that matter, VICE, which produced one of the more self-aggrandizing and unflattering "documentaries" on the country in 2006. Maybe young Kim, just 30 (or so) years old, really just yearned for a friend. He's got a pretty good one now in a fellow human being who perceives himself as equally misunderstood.

Dennis Rodman: Kim Jong Un Wants President Obama to 'Call Him' (ABC News)

Dreaming Of The Dead: A Lantern Festival Story

Posted: 02 Mar 2013 09:12 PM PST

Chinese lantern by Rassvetnaya

Last Sunday night was Lantern Festival. As such, C and I had holiday dinner next door with a friend of hers whose parents, sister, and the sister's spunky 6-year-old daughter were in Shenzhen for the holiday. The dinner was fine, lots of salty spicy fish, chicken and pork dishes, and some vinegary cucumbers.

I toasted with a vodka and tonic while the others raised modest glasses of cheap Chinese red wine mixed with 7-Up. For reasons I've never been able to pinpoint, red wine with Sprite or 7-Up (or scotch mixed with green tea) is considered the height of sophisticated drinking by many middle-class Chinese, though I've long since disabused C of that notion and she now admits it tastes lousy. She only bent her Absolut on the rocks rule in order to "not be the bird that flies away from the flock." As a foreigner, the flock rule doesn't apply to me.

We returned to our place and before we slept she told me she was leaving the balcony light on for the night.

"Why?" I asked.

"It's so our ancestors can find their way to where we live tonight." She cleared her throat and laughed self-consciously. "But I don't know how mine are going to know where I am in Shenzhen…" (Her hometown, Dandong, is more than 1,000 kilometers north).

"I don't know how mine are going to find me either," I said. "Most of them probably never thought of coming to China — except maybe my mother's father, Knox. He was Irish. Before she died my mother told me he loved reading stories about Asia, particularly by a British writer named Kipling. Something about a 'Burmese girl,' I think, too.

"Though I don't know that story or poem. Maybe if he had a thing for a fantasy Asian girl from Burma or China, he'd have enjoyed knowing about us."

"Maybe."

We slept as the balcony light glowed through a night punctuated by staccato New Year's fireworks and omnipresent smoke. And I dreamed.

I dreamed that my grandfather Knox who died when I was two and my mother Mila who died 12 years ago were told I could be found in China. If they desired, they could leave whatever realm the dead inhabit and join others who were visiting their descendants here for one night.

I've no real memory of my grandfather, though I'm told he was fond of me and that he died peacefully napping on his couch after lunch as my mother, dad and I were visiting him and my grandmother.

"You played on his body until the ambulance came," my mother told me. "You didn't know he was dead and thought he was pretending to sleep. It was a game you'd played with him before."

Now I am sleeping and my dead grandfather and mother are flying through the air to see me in China. He calls it "Cathay" in my dream because that's what Shenzhen's province, Guangdong, was called by foreign barbarians when he was alive. Cathay.

"C'mon now, Mila. We're flying to Cathay to see Justin," he tells my mother. He's wearing a tweed suit, white shirt, thin tartan tie and perhaps set off with a tweed newsboy cap, attire I either imagine or think I've seen in old photos of him.

He hasn't lost his Irish accent in my dream. He came to the US as a young man who'd taught at a deaf school in Belfast and had dabbled in boxing only to visit a brother in Oregon who had immigrated to the US. But Knox never returned to Ireland until many years later.

While in America he'd caught polio shortly after coming and the Illinois woman he eventually married was one of his nurses. She was my grandmother but she's not visiting tonight. It was also complicated between her and my mother and probably still is in the hereafter.

"Hullo mum," my grandfather had greeted his mother with an American accent upon returning for a visit to his ancestral home in Northern Ireland's County Down. According to family lore, he was limping due to the polio. His mother stood silently on the porch of their whitewashed home called The Spa.

"Ah, Knox. You've got the Yankee twang," she finally said of his greeting. Until this exchange, they not spoken to or seen each other in the 25-plus years since he'd left for a "short" tour of America.

There is no Yankee twang in my dream. He's soaring through the air to Cathay — a place he's only perhaps read and maybe dreamed of — arms outstretched like Peter Pan, one hand clasping my mother's who looks as she did in her high school and college photos.

In those black and white pictures she isn't tethered to an oxygen tank or embittered and numbed by the booze and pain pills that momentarily pacified her arthritis pain but inflamed her demons.

She's not even Mila. Tonight she's "Johnnie," a high school/college nickname due to her maiden name, Johnston. She sometimes smokes a pipe and is already a talented artist. She wears bobby socks and is a babe. And though it was also very complicated between her and her father, tonight they're feckless and free together. She's thrilled to be on her father's arm flying and free-falling to Cathay to see her son, and her father is quietly proud to take her. And though it's a country of 1.3 billion, with a gazillion more dead Chinese ancestors crowding the airspace tonight, they'll have no problems.

You see, because beautiful C has left the light on so they'll know where to find me.

Not too late to reserve for Restaurant Week! (and other food/drink events)

Posted: 03 Mar 2013 07:20 AM PST

Not too late to reserve for Restaurant Week! (and other food/drink events) Restaurant Week: Though Restaurant Week kicks off Monday, plenty of top-notch eateries still have spaces open! The man behind Restaurant Week, Onno Schreurs of Dining City, already gave us his top ten restaurant picks, but if none of those strike your fancy, go HERE for more incredible deals! [ more › ]

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Newsflash: Shanghaiers smoke in internet cafes, KTV parlors, despite ban

Posted: 03 Mar 2013 06:00 AM PST

Newsflash: Shanghaiers smoke in internet cafes, KTV parlors, despite ban A recent survey has found that Shanghai's anti-smoking law is routinely flouted despite tough on-paper penalties, with smokers lighting up in 54 percent of internet bars and 46 percent of entertainment venues (KTV parlors, bars, etc.) despite laws forbidding it. [ more › ]

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China Legal. Not Hong Kong Legal. Not Taiwan Legal. Not Macau Legal.

Posted: 02 Mar 2013 06:23 AM PST

I have given four China law speeches in the last month (two live and two via webinars, here and here).  Three out of the four talks generated questions as to whether what I had said applied to Hong Kong or to Taiwan.  My answer in all instances was a resounding "no."

Mainland China has its own legal system, separate and apart from Taiwan, Hong Kong and Macao.  In thinking about the laws of those places, you should think of them as different countries.  Now there are definitely some instances where the laws in Mainland China are different for companies and/or legal matters coming from Taiwan, Hong Kong or Macao, but those instances are not terribly common and they become even less common when the matter involves a Western company. Your default position should always be to assume that the laws are different and to always assume that whatever you do in the PRC will not carry over to Taiwan, Hong Kong or Macao.

For example, when we do NNN Agreements for our clients, we make clear that the Agreement we will be drafting "will apply only to PRC China manufacturers. It does not cover Taiwan or Hong Kong or Macau companies that may handle manufacturing for you as intermediaries. If you will be dealing with companies from Taiwan or Hong Kong or Macau (or from any country other than the PRC), please let us know so we can make allowances for that."  We do the same thing for our OEM Agreements as well.  In my future talks, I am going to early on make clear that my speech is confined to the PRC.

I thought of all this today after reading a post on the China IP Insider Blog, entitled, IPR: A territorial animal, emphasizing how intellectual property rights are "territorial" and what you register outside of China does not constitute registration in China:

Since working on the China IPR SME Helpdesk I have organised and attended scores of events on various intellectual property (IP) topics. Following presentations from legal experts we always allow some time for a question and answer session. The most common question asked by European businesses is a variation of the following question:

"If I have a (insert trade mark or patent) registered in (insert EU country). Is it valid in China?"

The answer is easy; it's a resounding no. Intellectual property rights are territorial due to the fact they are offered and governed by each country's legislation. Although some international treaties exist, they generally only facilitate the application process in different countries.

The post goes on to note that the fact that China currently exists in a "one country, two systems" situation only exacerbates the confusion, but that "the IP systems in Mainland China differ from those in Hong Kong, Macau and Taiwan and different registration is required in each territory."  It then does a really nice job postulating as to why so many people get it wrong regarding the universality of IP registrations:

Through dialogue with many European Helpdesk users I have identified that one reason why many people presume IP rights skip borders is that intellectual property is sometimes considered a moral right. Additionally, with such easy access to information internationally through the internet it is very possible that a trade mark registered in Italy for example can easily be seen by a Chinese competitor if the Italian company uses the internet to sell or market their product.

And as to why this mistaken belief in the universality of IP can be so deadly:

Unfortunately this can lead to problems for your European business. China is a first to file system which means that the first person to register the trade mark is the legal owner in China even if the trade mark has been used by a different company in another country. Whether obtained morally or not, possession is not just nine tenths of the law, it is the law!

It concludes by advising that the "best way to protect your intellectual property therefore is to protect it in every market you operate in (manufacture, sell, may move into in the future etc.)," or as we say here, File Your Trademark In China.  Now.

Photos: Over 4 tons of garbage fished from Forbidden City moat

Posted: 03 Mar 2013 05:00 AM PST

       
Workers at Beijing's Palace Museum have taken advantage of an early spring thaw to pull out trash from the frozen moat surrounding the Forbidden City. [ more › ]

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5.5M earthquake destroys 700 homes in rural Yunnan province (UPDATED)

Posted: 03 Mar 2013 03:30 AM PST

5.5M earthquake destroys 700 homes in rural Yunnan province (UPDATED) An earthquake flattened 700 homes and injured more than 30 in southwest China on Sunday afternoon, according to state media. [ more › ]

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