Dynamic Tourism, China, Business

I just finally read the Untemplater Manifesto (PDF download), which got me thinking about my own story and whether I fit the mold.  Some would say by virtue of the fact that I live in China (and moved there by choice) that of course not; however, I think it’s more complicated than that.

Through the end of college, I was on the templater path.  Through then everything was decided for me on the basis of the standard middle-class American lifestyle.  Played sports: check. Participated in Girl Scouts: check. Attempted to learn a foreign language: check.  Went to a good high school: check. Went to prom: check. Went to a top university: check.  Did I make any of these decisions? Really?  No, not really.  Although I did get to choose which university I went to, and I have to say, I made the right choice.

Then came college graduation and the first real decision of my life.  I’d been told, follow your passion. You have the world at your feet.  You can do anything you want.  Well they may say that and it may be true, but no one actually believes it.  And no one will actually give you the unconditional love and support to really do that.  Besides that, I had no idea what ‘my passion’ was.  I did, however, know that I had absolutely no interest in continuing down the template path and becoming a corporate slave and living a boring life.  I didn’t want to be average and I certainly didn’t want the average life of a just graduated young professional.  The idea of working for someone else my whole life, 2 weeks of vacation max per year, dating, marriage, kids repelled me.  I knew I would need out, sooner or later.

I chose sooner.

Within 3 months of graduation, I was on a one way plane to Shanghai, China with no further plan than 5 weeks of studying Chinese (on top of my 4 college semesters).  I came out to China hoping, like so many, to strike it rich, but mostly I came to just not live a template N. American life.

For the first 2 years or so in China, I studied Chinese, taught English, worked in a hotel, started a business, worked as a tour leader, traveled a lot, and networked a ton.  I was essentially the epitome of a young China-based job-hopping expat.  It’s not necessarily something I’m proud of, but it was a path, albeit a curvy one, I needed to take.

You may look at this and think holy cow, talk about a road less traveled; however, I’m increasingly doubting that.  Going out to China as a freshly minted college graduate, might seem unconventional, but even now it feels common.  Every week I get emails from people, ‘I want to come out to China and do _____’ (fill in the blank, usually English teaching) or I meet people like me 3 years ago, ‘I’m in China writing a blog, studying Chinese, I’m not sure what I’ll do next. ‘ The more I look around, the more I think, I’m on the same path as everyone else, or maybe I was one of the leaders on that path and now more people are following this ‘unusual’ path making it seem more common and mundane.

Then about 2 years ago I decided it was time to get some startup experience to build my knowledge base and learn that arena, so I joined a small internet company.  As time goes on, sometimes I look at my life and think, am I doing anything different than if I were in the States?  Company job. Commuting. Friends evenings or weekends. Looks the same. Seems the same. But certainly doesn’t smell the same.

What is different? I speak Chinese 70% of my day. I’ve done random jobs including modeling (something I always wanted to do), English conversation courses, writing bar reviews, etc. I went to the Beijing Olympics. I’ve been to almost every country in East Asia. I’ve met people from all over the world. I’ve organized tech events. I’ve seen the inside of China and its not always pretty. But perhaps most importantly, I’ve explored my passions and interests.

Moving to China may be the new in thing to do, and certainly takes guts, stamina, and patience, and with more and more people (trying to) doing it, it’s becoming more conventional.  However, the mere fact of getting away from the expectations of template American life, has allowed me to explore options, interests, passions, and what truly matters to me far beyond anything I would have been able to do in the US.  While I may not have ’struck it rich’ in China (yet), this experience to me is far more valuable.  Whether or not my life to this point has been a cookie cutter, having had the space to grow and develop means that into the future it definitely doesn’t need to be and I have the power and the wherewithal to manage that.

Now the challenge for me is to put that into an actionable plan.  But I know I’ll have the Untemplaters for inspiration along the way and I’ll keep in mind these lines from the Untemplater Manifesto:

You have to live one day at the time. You have to trust that as long as you bust your ass going after what you believe in, things will fall in place. The moment you start getting worried because you can’t see your future clearly is the moment where the claws of fear and boredom will get a hold of you again. In reality, no one can see the future clearly, but some think they can. Nobody knows what will happen, but the only difference is that untemplaters realize it, accept it, and make the best out of their time while believing in themselves and their vision.

Power to that! The Untemplater life awaits!

The Year in Review: 2009

January started out with a New Year’s Day flight from Phoenix to San Francisco, which included watching the USC Rose Bowl game as soon as I got off the plane in San Fran.  Then more game watching downtown with my awesome cousin Kelly and her friends.  The next day I grabbed my passport from Alec who I hadn’t seen since 2006, many thanks to him for getting my Indian visa.  That same day I caught my 1st transpacific flight of the year and headed back to Shanghai.

Back to work in Shanghai for a week, then birthday celebrations galore start.  I’m not sure how its possible but I managed to have 3 celebrations during the week of my 25th bday: dinner on the 13th with a few girlfriends, then co-party night with Sian, Sherry, and Yi, and finally birthday brunch.  Thanks for organizing that brunch, and every other one, Sherry!  This is was also the first time in 2.5 years in China that I really got on a work permit.

Late January, at the start of Chinese New Year, Sian and I headed off to India for a whirlwind 10-day trip around Delhi, Varanasi, Agra, and Jaipur.  India is an immensely fascinating country.

From February, as everyone got back to Shanghai from CNY, we started having more tweetups, including Twestival, where I met a lot of the people I’d only ‘met’ online, including @IrisJumbe and @PDKay.  At the SXSW Shanghai party at M1NT in late February I got to meet a lot more of my twitter friends, including those who don’t live in China and make better connections with them.  To round out February, I changed the theme on my blog to center around life-streaming, (which I’m now coming to hate…)

In March we had our first !talk! Chatfest and finally launched the open beta of the teaching platform.  Despite this, the !talk! situation was in somewhat of a flux, so after awhile I decided to work less hours there and spend more time on my multitude of other activities.  Since November of the previous year I was already teaching English a few nights per week.

With the start of spring, I still didn’t feel that my health had completely recovered from all the illnesses of the winter, so I decided I needed to take drastic actions (haha). For Qing Ming festival, I booked myself a week at a cleanse resort in Thailand.  It was a much needed flushing out of the system that kept me much healthier in the ensuing 8 months, especially compared to the previous 8.  Besides meeting some like-minded people during the detox, I also met some other awesome people at the #BangkokTweetup, some of whom have become really helpful to me recently.  This spring, I also got to connect with fellow Shanghai transplant Arizonan @Mark_E_Evans and another China-interested tweeter @lparsons, whose dream is to move to China–good luck to him.

By late April / early May, when the Dragon Boat festival rolled around, Jai, Allison and I headed to Seoul for a 4-day weekend.  They say Seoul is a city with no soul, but I loved it and think that’s in large part due to our excellent tour guide, my long time friend, Irene.  Check out the DMZ tour, really interesting, including a step into North Korea.  Literally the day after I got back from Korea, I did my first set of factories tours in 2009.  It’s amazing all the crap that gets produced in China!

In Late May, I spent a weekend in Hangzhou with Al & Jane, when they generously took me around to all their favorite sites and restaurants.  Tea plantations, China’s Grand Canal, Pagodas, and spicy wings, the spiciest food imaginable.  I was crying, literally.

As June rolled around I was just starting planning tech events for the Shanghai community and welcoming 妹妹 (little sister) for her summer in Shanghai.  Eliana arrived on June 3 to spend 5 weeks with me and exactly the day after she arrived, we set off to see the ‘real’ China.  The real manufacturing China, that is.  This was my second factory tripping of 2009.  It’s amazing all the crap that’s produced in China!

Around mid-June the Geeks on a Plane tour rolled through town to attend Shanghai Barcamp on June 14, and then celebrated the end of the trip with the Geeks and Glamour afterparty at M1NT.  It was awesome to meet entrepreneurs, VCs, and other twitter friends from the States including @DanMartell.

Throughout June and early July, Eliana and I went revisiting or exploring new parts of Shanghai.  And of course, we went to Beijing and saw the not-to-be-missed, Great Wall of China, Tiananmen, Forbidden City, and she went swimming in the Olympic Watercube.   I also got to see to see Ian, Leslie, Jeremy, and Jenny, and join yet another Tweetup to meet twitter friends in Beijing.  To check another place off my list, we took the train to the old walled city of Pingyao. At nearly the end of the trip, on the bus ride to the airport, my cosmetics case got stolen from my backpack A very sad day.  In this case, Eliana was the rock–thank you girl, I love you!

Just around the 3 year anniversary of my life in China, the internet went on lockdown in China and ever since then Twitter, Facebook, Twitpic, and since even earlier Youtube have been inaccessible, seriously hindering multimedia communication with the outside world.  Mid-July Eliana went home and I took my 2nd transpacific flight, this time to Vancouver.

On the bus from Vancouver to Seattle there was free wifi! And unrestricted access to twitter, facebook, youtube, which was like heaven until my laptop battery died and I realized my power cord didn’t work in N America… A busy 3 days in Seattle with my Dad and friends, Burt and Dawn: food festival, hiking Mt. Rainier, and the 4am launch of !talk! Marketplace for companies, but the weather was gorgeous, the food good and fresh, and the air clean and refreshing.

Next it was time to fly up to Alaska for my grandparents 60th Anniversary.  We went ATV-ing near Denali National Park, watched the sunset at 11pm, pet huskies, took the Denail Express train to Whittier, cruised on the Diamond Princess, went to Glacier Bay National Park, sea-kayaked in Ketchikan, went Geocaching, and had a good week of family time.

For the first week in August, I reconnected with friends from China now living in Victoria and Vancouver, including Heike, Brook, Scales, KK, and Danielle, and made other new friends through them, include Mariska.  The Pacific Northwest from Seattle, to Vancouver and the Island, all the way up to Alaska has truly spectacular natural beauty, clear blue skies, snow covered peaks, stunningly colored flowers, green trees and grass, fresh healthy foods, all enough to satisfy me with what often seems lacking in the grimy urban grey of Shanghai.  Catching up with friends from China who are no longer living there really helped me to get perspective on life there and what is most important.  Getting on my 3rd and last transpacific flight of the year to head back to Shanghai, I was feeling very refreshed and refocused with resolutions for my life in China.

Back in Shanghai, I jumped head first back into activities related to tech, work, events, and, from all my discussions with friends who formerly lived in China, recommitted myself to learning Chinese.  I found a private tutor to work with 2 times per week, started reading Chinese magazines and newspapers, listening to ChinesePod again, decided to more actively seek out opportunities to practice Chinese including looking for new Chinese friends, and eventually more Chinese shows and movies.  I am listening to countless podcasts on entrepreneurship, as well as lectures on world history and geopolitics to start brushing up my knowledge for the foreign service exam.

With my September trip to Hong Kong to see Coni, Brenda, Amjad, Daniel, Stanley, etc, and Stephanie (who I hadn’t seen in 5 years, since USC), I finally gave into pressure and got an iPhone.  Podcasts, apps, Chinese dictionary with handwriting, plus GPRS allowing me to be chatting to someone through Skype while walking down Nanjing Road, I can’t believe I waited so long.  iPhone convert, admitted.

By the time October holiday rolled around, my work permit was expiring, and still reeling from all the traveling I’d already done this year, with additional complications, I was compelled to spend China’s 60th Anniversary National Day in Shanghai, much to my chagrin.  (Randomly, I just realized the CCP was founded the same year my grandparents got married).  It turned out to be a blessing in disguise as I got to reconnect with another friend who used to live in Shanghai and was back for a visit: Matthias.  October and November were spent with friends who were in town visiting, including a week with that friend from Germany, Ian down from Beijing and his friend from USC, then in November Sean came back for a visit and the HSBC Golf Tournament, followed by Luke from Toronto (I met but hadn’t seen since 2006), who came to visit family and attend his sister’s wedding

In late October, USC opened their first office in Mainland China.  Also in late-October, I went to yet another manufacturing town, this one specializing in textiles for the Keqiao Tradeshow and also saw the canal town of Shaoxing.  A month later, Bryan, Vivianne, and I were off for a day trip to the Commodity City: Yiwu.  It’s amazing all the crap that’s produced in China! Since getting back to SH in August, my Chinese slowly showed signs of improvement after months of stagnation, I signed up to an internet dating site (thinking about it now, am I that desperate?), and I continued to spread myself over many different involvements.

For Thanksgiving, I met mom in the Philippines for my last international trip of 2009, bringing the total to 50 countries in 25 years.  Ten days in the Philippines renewed my health (after 2 brutal days of facing the Chinese hospital system just before the trip) and helped me to realize I was stretching myself in too many different directions.  This feeling was further brought home by another conversation in early December that’s been forcing me to take stock of where I am, where I’m going, recognize my passions, and figure out what I want out of life.  As 2009 draws to a close and I face yet another round of visa applications, I’m reading Think and Grow Rich (again) and Getting Things Done, and most importantly I’m reflecting on those issues and what they mean for me in 2010.  The most influential and memorable book I finished in ‘09 was The Go Giver–great book, go read it, especially if you do business or work in social!

Happy New Year!

Writing this made me realize there were a lot of photos from this year, I hadn’t yet put on Flickr, so if you didn’t click on any of the links above, go look at my photostream now, its been updated: http://www.flickr.com/photos/tofflerann/

Don’t forget, 2010 is the Shanghai Expo and among other reasons, a great opportunity to come visit me in Shanghai! I’d love to host you if you’re coming this way.

I hadn’t really thought about it…maybe I’m just that good at managing my time…or maybe I’m just not fully committed to anything…  I didn’t even realize it until my friend said something to me about it at lunch today: I do a huge variety of stuff here and I’m still trying to do more.  Here’s the list, I’m curious what you think…

(Nearly) Full-time job: italki
Part-time job: Talk English
Run my own business: Shop My Shanghai
My personal Blog (rarely): this one
New Tech Blog I’m starting with said friend: http://RedTe.ch
Study Chinese and prepare for HSK Exam (a priority)
Study for the Foreign Service Exam (target date: H1 2010)
Organize (mostly tech) events: Lunch2.0, BarCamp (soon to be more)
Create Content (besides above blogs) and connect with people online: Twitter & Flickr (@TofflerAnn), Youtube, Facebook, LinkedIn

And yet I still find time to look for and evaluate new projects and business opportunities, hang out with friends, date, exercise almost everyday, read actual books offline, listen to lots of podcasts, travel quite a lot, and whatever else.  Am I crazy or is this actually all possible?  I just figured this was normal Shanghai expat life, everyone trying to do everything (except for those who drink themselves into oblivion, obviously).

So when people ask me, what do you do?, hence the hesitation. Also, probably the same reason I’m not sure when the last day I didn’t do some kind of work was.  Does checking and responding to emails count as work?

A quick intro for those of you who don’t know, Taobao is China’s C2C internet selling platform, similar to eBay or Amazon.  It’s owned by Alibaba Group and all the online payment transactions for the site happen by your bank in combination with Alipay (also of Alibaba Group).  By the way, why does no one notice how monopolistic Alibaba Group has gotten in this area?

You can buy literally everything imaginable on Taobao from mobile phone recharge cards to patio furniture and shoes.  I’ve bought shirts, shoes, books, etc on Taobao.

Setting up an account is relatively simple if you can read some Chinese.  All you need is an email account, password, and the ability to navi-guess around the site in Chinese.  Actually buying and paying online becomes more complex, requiring a local bank account with either 一卡通 or 信用卡.  But this is how most of us get our salaries paid anyway.  If you can find a local friend to help you set up the link between your Taobao account and your bank account (through Alipay, of course) the first time, its pretty easy to just type in your PIN number whenever you want to buy something in the future.  Taobaofieldguide.com has a much more comprehensive and picture-oriented description of how to search and buy on Taobao.  They also offer to help you do it, for a small fee of course.

Feeling relatively confident in my Chinese reading ability and comfortable navi-guessing and shopping on Taobao, today I decided to try my hand at selling on Taobao. And ran into a Great Wall. To sell on Taobao, you of course need a local bank account linked to Taobao through Alipay (again), which since mine was already linked was easy enough.  However, you also have to verify your identity, and while this may sound simple, for a foreigner, it’s not.

First I tried pretending I was a local because I have a local bank account, yada yada, Not so fine.  You must input the ID # matching the person who opened the bank account.  In this case, it has to be the number of digits on a local Hukou ID card (If you don’t know what a Hukou is, this post probably doesn’t apply to you…).  Well since I’m not a local, I don’t have a Hukou so my bank account was opened with my Passport, which obviously doesn’t have the right amount of digits.  Fail #1

There is an option for Foreigners to sell on Taobao. So next I tried that: first line, OK.  Second line, please input your Guarantor’s name, ID number, phone number, etc, etc.  Uh…FAIL #2.  So as a foreigner selling on Taobao is much more difficult.

I guess they’re afraid we’ll list something super expensive, let some poor unsuspecting local buy it and transfer the money, and then leave the country with his money.  Granted, it could happen, but what’s the highest value item anyone’s ever bought on Taobao (without first seeing the item)?  Maybe 10,000RMB, maybe 100,000RMB?  So all of US$1400 or US$14,000?  Is that really worth it?  Fail #3.  That’s why banks, credit cards, et al have insurance and fraud protection.

Anyway, as you can see I was a bit frustrated with my Taobao selling experience today and I wanted to save other foreigners the same annoyance and waste of time.  And I’m sorry, I don’t know what happens after IF you get a Guarantor to validate your account.

It’s also interesting to note the differences between Taobao and eBay.  Taobao takes the money immediately from the seller’s account and holds it in escrow while waiting for confirmation from the buyer that the item has been received (or a certain period of time has passed) before sending the money to the seller.  eBay lets the buyer and seller decide between themselves how and when to pay and ship.

Can I further point out that since Taobao holds the money in escrow awaiting confirmation of item receipt from the buyer, that the whole paranoia of foreign seller runs out of town with the money is NOT very likely.  Fail #4

And that’s today’s Taobao 101 Guide.

Look inside any garment and there’s a good chance you’ll see a “Made in China” label.  Garments of all sorts, qualities, and brands are made in China.  Most of the garment manufacturing is centered around the Pearl River Delta (Guangzhou/Shenzhen) or Ningbo.  Despite this, and the tight watch designers keep on their production facilities, many people assume (sometimes rightly so), that its easy to shop for their beloved clothing brands right here in Shanghai.

Overruns, 2nds, and ‘it just fell off the truck’ do end up in Shanghai.  However, they are not easy to find: some hunting and lots of patience are required.  Recently I had a very satisfied shopping customer looking for specific brands, namely Banana Republic, LK Bennet, Reiss, Joseph, and Diane von Furstenburg.  We did manage to find a number of the brands she was looking for, at places besides the outlet malls.  While I never guarantee these are ‘real’ (whatever real means in this country), its worth taking a look.  Right?

For discount designers tucked away in small shops, try XinLe Road, ChangLe Road, HuaShan Road, JuLu Road, Maoming South Road and Fengxian Road.

For additional help shopping my shanghai, and the best prices, please contact me!

I’ve signed up on a site where people can ask questions about traveling to different places and have them answered by locals, as a way to get the real feel for the place.  Besides the obvious and just plain stupid questions (do I, as an American, need a visa to China), some people have started asking more business related questions.  Below is one such question (and my response to it), though a site like China Success Stories would have been a much better platform.  (rolling eyes)

Hello Friends, Can you help me? I’m looking for experienced network marketeers to head up a new network in your country and I wondered if you could think of anyone who you feel would like to be involved as a Country Leader at this crucial launch stage.
We are not looking to sign up ‘regular’ distributors at this moment but are looking for the serious team players who will become our global team partners.
As a fouder of this NEW very narrow NICHE business in your country, first year total earnings of $100,000 potential with second year earnings of $100,000 a month potential for the right people.
If you can help me that would be great and your input would be much appreciated.
Look forward to hearing back from you.

Best wishes,

Teodor M Muntean

MY RESPONSE

Teodor,
You know that network marketing is borderline illegal in China and is governed by many complex and unclear laws, regulations, and procedures. This is why Mary Kay and Amway had to offer retail outlets in addition to network marketing distributions when entering the market. This is also the reason many other network marketing companies have not entered China. Pursuant to that, you will not find an ‘experienced network marketeer’ in China who can lead a whole country network.

I think you’re jumping the gun. You can’t, nor should you even consider, finding a Chinese business partner on the internet, particularly on a site devoted to helping travelers. That’s just absurd! And shows a complete lack of knowledge and commitment to the Chinese market on your part.

To properly setup and start a networking marketing business in China, you will need no less than 1Million US Dollars. Also, if you opt to go with a local partner, that organization needs to be considered very closely. You should personally be here researching the options and making sure you can trust them.

My feeling is you know nothing about China and this is more like a scam than a real intent to do business here.

I just finished reading the September/October 2007 issue (yes, I know I’m a little behind, but blame this one on my mom) of Probate & Property which had 3 extensive articles on Real Estate Law in China and the property market.  The reason for the articles was the new Property Law of China that was enacted in March of 2007 and effective in October of 2007.  The articles were much too detailed and in depth to discuss here, but the highlight, which many people already know, is that in China land may not be ‘owned.’

As the Communist Party, continuing to adhere to Marxist principles, the government owns the land.  People can and do own the buildings on top of the land but they don’t own the land.  The land is used for development under ‘land use rights.’  Land use rights last for between 40-70 years, depending on the type of development.

This explains to me why all the construction in China is so poor: there’s point in investing in quality construction when your lease term is only 40-70years.  The construction only needs to last 40-70years, not a lifetime or even many generations like some of the great historical buildings we still admire today.  Why spend the money on something that won’t be around for more than 50years, because you can cut corners and get it done for cheaper if you sacrifice quality.  My apartment, according to my dad’s guess is 10-12 years-old, while in fact, its about 4 years.  It just looks older due to number of factors, among which, shoddy construction, air pollution, and acid rain.

Sure this might sound like a sarcastic post (and it largely is) but have a look for yourself.  Land ownership leads to stricter  standards and higher quality construction than ‘land use rights.’

Apparently my previous post wasn’t lost to the mysteries of WordPress but rather to the prying eyes of the Middle Kingdom’s national internet spying feature.  Nonetheless, very frustrating!  Well, I’ve learned my lesson: use a VPN when reviewing or writing on my blog.

As of yesterday all the food & drink vendors and retail outlets in and around Shanghai’s subway stations have cleared out their inventory and closed.  No more grabbing breakfast in the subway station for me.  :(  They’ve even put tape over the doors to make sure no one sneaks anything inside.  Some larger, more established outlets are still running, such as McDonald’s.

How do they decide who stays and who gets closed down?

Do they compensate the stores that are forced to close?

This article published this last week on Yahoo, entitled Olympics could be a bust for Beijing hotels, confirms many of my predictions:

China has spent a reported $40 billion on new infrastructure and stunning venues, hoping to impress visitors with a modern city when the games begin Aug. 8. But the lack of reservations could shake the city’s hotel industry, which has more than doubled its five- and four-star hotels offerings to 160 since Beijing was awarded the Olympics seven years ago.

Ha declined to reveal his hotel’s occupancy rate, but he expressed concern over a report last month from the Beijing Tourism Bureau that showed five-star hotels were 77 percent booked, and four stars were at 44 percent.

Well, the occupancy rate was higher than I’d heard, but still not great when you consider,

Some five-star hotels are in good shape — at least during the Olympics — because they secured reservations from Olympic sponsors or Olympic committee delegations.

[...]

“They need to come, and they have no choice to turn back now,” Sander said. “They have put so much money down, they cannot draw back.”

Even all the greedy apartment owners are finding themselves not only without sky high Olympics rentals, but with no tenants at all.

In response to questions about visas,

“Beijingers will enthusiastically welcome foreign tourists,” said Zhang Huiguang, director of the Beijing Tourism Bureau. “But for terrorists and troublemakers, we’ll unite and fight against them.”

I like the use of the term ‘troublemakers.’ China is openly acknowledging they’re not just worried about terrorists but also about protecting their image. As such,

Students have been targeted too, because the government fears they might side with political activists if protests erupt during the games.

Anyway, just read the article, and if you have Olympics tickets (or know someone who does) but aren’t going to use them, I’m already here and I’m happy to buy them from you!

You’re planning your next internet company, you intend to reach out to a broad audience-the whole world, so where do you base it-West Coast of the US, Europe, or China? (This is by no means a comprehensive analysis of this topic.) These are a few thoughts I have on the relative advantages of each location, based on what I know about the SNS (social networking) for language learning industry, including my Shanghai-based employer.

Advantages of China–

1. Lower cost structure (labor, facilities & equipment)
2. Huge market, the Chinese love their interactive, instant gratification web apps
3. Entrepreneurial spirit, try anything, wild west gold rush mentality
4. VCs (Venture Capitalists) may be looking more at China’s internet players because China now has the most internet users in the world, and China’s internet players have more solid histories of revenue flow than Western internet players
5. Western students will intern for free just to say they’ve worked/interned in China, ‘the hot new place to be’

China’s distinct Disadvantage

1. Relatively inefficient, unproductive programmers, engineers

US’s Advantages–

1. High quality technical staff
2. Proximity to Silicon Valley & VCs
3. Proximity to a lot of tech conferences where you can meet VCs, influential bloggers, potential partners
4. Ample opportunity to get your message out because of proximity to influential tech related media

Europe has similar advantages as the US, but not on the scale they exist in the US. There are some tech conferences in Europe, there are VCs in Europe, but the media coverage for tech stuff is relatively limited in Europe.

America’s & Europe’s distinct Disadvantage–

1. High costs of labor, office space, infrastructure, etc

In conclusion, Europe seems to offer the fewest benefits. Not surprising, the cost differential makes China a very attractive place to base your start up. The US is the best for getting very influential and widely seen English-language media coverage.

Perhaps the optimal solution is to have the marketing/PR person (or firm) in/near Silicon Valley, the technical team, led by a capable Western project manager, based in China, and the executive going back and forth.

If you thoughts on aspects I’ve overlooked or other ideas, please post them in the comments section below.

As Facebook looks to its Chinese users to translate the site into Chinese, the expectation is that Facebook will soon enter the Chinese market. Facebook tried to enter China previously through acquisition of an existing Chinese social network but nothing came of the negotiations. Will Facebook have more luck this time? Or better yet, will Facebook be more successful than other overseas internet companies have had trying to enter China? (See below slide show) I think Facebook may have somewhat of an inside track with current overseas Chinese studying in universities who’ve already gotten onto Facebook. Maybe those users can help it ‘go viral’ in China. Facebook already seems to have developed a small user base among outward-looking, international business-oriented young people. I know many have sought to be my friend on Facebook, regardless of whether we’d met or not.

Perhaps the better question than whether Facebook can scale in China, is whether it can successfully monetize in China the way China’s own social networks have done. Facebook does not make much money on advertising currently. Chinese social networks, on the other hand, have different revenue models making them more profitable than any advertising-based model developed by Western-based social networks.

Another concern I have about Facebook offering a Chinese-language version is whether that will make it yet another target on the government’s internet block list. The Chinese government already blocks more Chinese-language sites that are sensitive than English-language sites, for example wikipedia.en is sometimes available but wikipedia.cn is never available within Mainland. Therefore, if Facebook is offered in Chinese, that makes it even easier and more accessible to Chinese users, including groups for or against T_bet independence, F_lun G_ng supporters, etc, as well as other sensitive information contained in pictures and videos on Facebook. My Facebook profile is already frustratingly blocked in China (for some unknown reason), I don’t know what all of us expat Facebook addicts would do with so much spare time we’d have if Facebook was totally blocked.

Slide show about the difficulties foreign internet companies have had in China by Jonathan Haagen (Economist Intelligence Unit)

China’s internet firewall has been working in overdrive lately in the wake of the crackdown on the Tibet protests.  Last week Google video and Youtube (owned by Google) were down all week; Youtube came back online on Sunday.  Google News in English, news.google.com, was even down for a day!  Last week, I also ran into other screens and filters that normally don’t impede my surfing of the net in China, indicating that indeed, China’s internet censors were working overtime.
Despite all the blocking, what I found interesting is that my Chinese colleagues knew about the situation in Tibet even before I did (I wasn’t really watching the news when it started).  Many of them had also seen videos of the situation before all the videos sites got blocked.

Though the Chinese government has only temporarily blocked international videos sites such as Youtube, it’s taking a harder stance with Chinese sites and forcing many to shut down altogether.  To escape a similar fate, Google has and continues to filter its news.google.cn results for searches in mainland China.

If all this is frustrating to you, try a new Wiki site called Wikileaks which is dedicated to getting information in front of the public eye.  Wikileaks released many videos and photos of the Tibet situation, and is, not surprisingly, blocked.  However, a simple proxy server will solve that problem and the videos are a lot easier to view than Youtube’s were all last week.

If the great firewall of China still hinders your movement around the net, options include the Firefox plug-in Gladder and Tor, a volunteer relay system that allows users to surf the web anonymously.  Tor may be just the answer we China-based, avid internet users need to have full access to the information available on the internet.

The number, type, variety, and frequency of Beijing 2008 Olympics’ advertisements is simply astounding. In the lead up to the 1996 Olympics in Atlanta, I don’t remember nearly so many advertisements relating to the Olympics. Granted, I wasn’t in Georgia or even Atlanta, but then again, here I’m not in Beijing either. I was, however, in Athens just a few weeks before the 2004 Olympics there and the number of Olympics-related advertisements doesn’t even come close to approaching that of Beijing’s Games.

There are corporate advertisements as well as public service advertisements and also simply the use of the Olympics name and/or logo. In the corporate world, everyone from global companies to local companies, health-enhancing to health-damaging products, computer, and pot noodles are all associating themselves with the Olympics. UPS is an official Olympics sponsor and is using its advertisements to convey its global presence, particularly its presence in China. (Notice the Bird’s Nest stadium. Picture from a Beijing subway station.)

Amway is also associating itself with the Olympics, to build an image of offering beneficial health products to Chinese consumers, suggesting that taking Amway’s products could make you healthy and fit like Olympics athletes. Chinese brands are also trying to create an association with the Olympics, such as Bank of China, pot noodles (yes, there really is an official pot noodles sponsor), a new housing development in Guilin, local Beijing-based brewer Yangjing (in addition to the two other beer companies, Budweiser and Tsingtao), and even southwestern China’s Guangxi Tobacco Company. Why the tobacco company is associating itself with the Olympics, I haven’t really figured out. Sure, the Olympics is a recognizable brand name and association with the Olympics might lend credibility to Guangxi Tobacco Co, but are cigarettes really meant to be associated with the world’s premier sporting event? Not to mention, smoking is going to be banned in all indoor locations in Beijing during the Olympics, so how do you sell cigarettes when there’s no smoking allowed? (Notice the use of the Bird’s Nest stadium, a smoke-free zone.)

Corporations aren’t the only entities tapping into the brand power of the Olympics to spread their message, the government is also taking advantage of the event. Public service campaigns even in cities as far away as Kunming are using the Olympics to help convey their message. From billboards showing how to queue to slogans encouraging community spirit and neighborliness, all convey their message with the help of the Olympics. Everywhere you look, you are reminded of the Olympics: the Beijing Babies are on China Mobile recharge cards, store windows display the 5-ring logo, even seat covers come imprinted with the Beijing 2008. Dar Es Salaam, Tanzania wasn’t even too far away escape Beijing Olympics ads.

The English-language Beijing 2008 Olympics website agrees that advertisements featuring the Olympics are numerous. So why are there so many advertisements and reminders of the Olympics? Because it’s an important event. Perhaps all the references to the Olympics attest to the Chinese people’s pride in holding such an event and its rare opportunity to showcase China and all its glory to the world. Perhaps because this is the single most important globally-watched event that China can control and use to make a positive impression on the world. Perhaps the Beijing Organizing Committee has allowed more sponsors and suppliers for these games than either Atlanta or Athens allowed. Perhaps advertising is just that much more prominent in China than in Greece, but certainly not compared to the US. What else explains the fact Olympics advertising has been prolific in the lead up to the Beijing 2008 Olympics Games?