CER Nov. 2014

Paul French on the West’s betrayal of China at Versailles

NOVEMBER 2014 VOL. 25, NO. 11

www.chinaeconomicreview.com

Bad karma: The booming biz of Buddhist animal release

Labor: Interrupted Demographics & downturn spark a spike in strikes across China

中经评论：资本的回报

NOVEMBER 2014 VOL. 25, NO. 11

CONTENTS

NOVEMBER 2014 VOL. 25, NO. 11

THE HOUSE VIEW Published monthly since 1990 Publisher China Economic Review Publishing Staff Writer Hudson Lockett Chinese Editor Liu Chen Associate Editor Skye Sun Interns Doug Strub Art Director Jason Wong Editor at Large Graham Earnshaw Associate Publisher Gareth Powell Director of Sales and Marketing Ralph Wang Account Manager Jerry Cheng CHINA ECONOMIC REVIEW (ISSN: 1350-6390) is published by China Economic Review Publishing Enquiries cer@ChinaEconomicReview.com Subscriptions subscriptions@ChinaEconomicReview.com Addresses The Plaza Building, 102 Lee High Road London, SE13 5PT, England Room 1801, 18F Public Bank Centre 120 Des Voeux Road Central, Hong Kong Hong Kong printer 01 Printing Limited Suite M, 3/F, Tower 3, Kwun Tong Industrial Centre, 448 Kwun Tong Road, Kowloon CHINA ECONOMIC REVIEW welcomes letters. Please write to the editor at: letters@ChinaEconomicReview.com

04 F.D.IDOLIZATION | Reports of FDI’s demise in China have been greatly exaggerated

CHINA BUZZ & MONTH IN REVIEW 05 CHINA BUZZ | Rule of law, or rule by law?

06 NEWS BRIEFS | The biggest China news stories in October

COLUMNS 08 TO UNDERSTAND BEIJING NOW, GO BACK TO PARIS THEN Author Paul French delves into the lasting influence of the Treaty of Versailles on modern Chinese thought and society

10 UNEXPECTED EFFECTS | Key differences in how mainland fans relate to celebrities can make or break a branding campaign

12 BREATHING ROOM | Beijing’s outsourcing of film censorship to the provinces might help lighten the state’s heavy hand

14 PRIVATE HOSPITALS, INVESTOR INTEREST | Specialty hospitals can pay off big if institutions can stay competitive

COVER STORY 16 TOIL & TROUBLE | Labor strikes are spreading across China thanks to demographic change and economic downturn

REPORTS 22 CATCH, SELL, RELEASE, REPEAT | Buddhist “life release” has become big business as believers buy up animals to set free

24 AIRMAGEDDON AGAIN | Beijing’s go-to anti-pollution measures can’t hope to overcome smog’s regional roots

25 DAUNTING SUCCESS | Poverty in China is now smaller than ever before, but tougher as well

Q&A Advertising enquiries ads@ChinaEconomicReview.com Hong Kong: +852 3174 6136 Shanghai: +8621 5187 9633 ext 811

26 ANGLING UPSTREAM | CLSA’s Simon Powell dispels some of the hype surrounding China’s coal-bed methane industry 28 PLENTY OF INCENTIVE | ESCOVIS China’s Richard Hoffman explains China’s ongoing allure for enterprise old and new

PHOTO GALLERY HKABC membership membership approved approved and and certifi certified ed HKABC

30 FAR CORNERS, UP CLOSE | Yunnan-based China Unheard provides a peek into life in oft-ignored locales

THE HOUSE VIE W

F.D.Idolization The recent descent of foreign direct investment in China has become one of many indicators readily taken to indicate softness in the economy, but the dip belies the complexity of the country’s shifting industries

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hina’s foreign direct investment (FDI) for the year to date fell for the third consecutive month this September. While up year-on-year from a drop in August, when FDI hit a low of US$7.2 billion, September’s influx of US$9 billion – making for US$87.4 billion of total FDI for the first three quarters of the year – was taken popularly as a sign of wary international investors unsettled by a slowdown in China’s economy.

This in turn prompted more handwringing and fretting that China was poised on the precipice of investor confidence, ready to lunge over at any moment into the abyss. However, we might suggest speculators take a few steps back to appreciate the broader context of the situation.

Economists often caution against taking cues from a single month of data on foreign capital inflows, since each on its own can vary, sometimes wildly, with investor zeitgeist. Certainly there has been plenty of activity in China lately that might weigh on the minds of international CEOs

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with a presence here: More foreign companies have been prosecuted by regulators this year, and with heavier penalties, than any in recent memory.

Japanese companies in particular are now feeling the squeeze thanks to a declining yen and rising labor costs, the latter of which has some pointing to FDI growth in ASEAN economies such as Indonesia and the Philippines as evidence that China is workshop of the world no longer.

Thus has a correlative dip in FDI been widely, if not explicitly, connected to a more hostile environment for major international corporations whose now-large presence on the mainland has made them juicy targets for regulators armed with a 2008 anti-monopoly law that, until quite recently, had been gathering dust. The focus on headline FDI as an indicator of international investor sentiment might be tracked back, at least in part, to China’s passing of the US in 2012 as the largest single recipient of international direct investment. Looking at those figures side-by-side does indeed say something at the macro level about

LOOK ELSEWHERE: As foreign direct investment shifts from manufacturing to services, the factory floor becomes less and less the center of Chinese industry’s hustle and bustle

China Economic Review | November 2014

scale and economic influence, but it does not say much in terms of where the money in question is going once it clears customs.

This is where a closer look at FDI composition comes in handy. As Ryan Rutkowski of the Peterson Institute for International Economics pointed out in September, while foreign investment inflows into manufacturing are indeed slowing, those pouring into China services sector not only remain strong, they have dominated FDI since passing manufacturing as a contributor since in 2010, and now account for three-fifths of all FDI flows.

While FDI may serve as an indicator of the external economy, it requires another leap to reach the conclusion that a dip indicates a loss of faith in China as a destination for profitable investment. Far from it: Growth in services is currently helping China weather the current storm as it sails into the admittedly choppy waters of the fourth quarter.

A loss of US$4.2 billion in manufacturing FDI for the year to date looks far less worrisome in light of the gains to the tune of about US$4 billion in services FDI and, when considering the broad economic goal of China’s leaders to refocus its economy on services and domestic consumption, is about what one would expect. All this said, it is worth noting – as is always necessary when discussing China’s FDI – that the figure is not in and of itself a major contributor to China’s bottom line: At about US$117 billion, FDI only accounted for roughly 1.31% of GDP in 2013 based on official numbers. Even if the country’s books are lightly cooked in regards to total annual growth – as even Xinhua has suggested – the ultimate importance of foreign direct investment in China should not be overstated.

China BUZZ "We should plant these seeds in more land so that flowers will blossom and fruits will be harvested as quickly as possible."

-President Xi Jinping, calling for the lessons of the Shanghai FTZ to be spread throughout the mainland “It is a sweeping and profound revolution to comprehensively advance rule of law in China, the world’s largest developing country with a population of more than 1.3 billion.”

-People’s Daily editorial on the results of the fourth plenum, a gathering of the Party's Central Committee dedicated this year to discussing reform of China's legal system “When făzhì 法治 is being used to designate the application of law as it is conceived of by the Chinese Communist Party, I would be very careful always to translate it as ‘rule by law’. When we are referring to the application of law as it is conceived of in the West, then I would be careful to translate it as ‘rule of law’.”

-Linguist Victor Mair on translating the plenum’s terminology “My hair has turned white while waiting for rule of law to be implemented.”

-Political commentator Zhang Lifan "We must bring more China to Italy and take more Italy to China."

-Italian Prime Minister Matteo Renzi after signing US$10 billion in business deal with Chinese Prime Minister Li Keqiang "The core of national sovereignty" -People's Daily editorial description of taxes, which it accused foreign businesses of dodging “The Chinese public tends to rate the importance of ‘giving bribes to get ahead in life’ as somewhat important (half rated it between a 6 and a 9). Just 3% say bribery is very important (rating of 10), and 5% say it is not important at all (rating of 0).”

-The Pew Research Center’s George Gao on findings that ranked China the as the top country where the people said bribes matter “This is just the beginning.”

-Head of the Central Commission for Discipline Inspection Wang Qishan on the government’s ongoing anti-corruption campaign Sources: Pew Research Center, Reuters, South China Morning Post, Xinhua, Language Log China Economic Review | November 2014

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NEWS ROUNDUP

MONTH IN REVIEW

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China’s gross domestic product grew 7.3% in the third quarter year-overyear, the slowest rate since 2009, Reuters reported, citing official data.

The pace was the weakest since the global financial crisis, and a pick-up in factory output and government confidence that the labor market remains stable were offset by further slowing in the property sector. Economists remained divided on whether authorities would step in with major stimulus measures such as interest rate cuts as the country faces the possibility of missing its official GDP target for the first time in 15 years.

in factory output fell to a five-month low of 50.7. A Hong Kong-based economist described the situation as not getting worse, but rather having “stabilized at this quite subdued level.”

For every US$1 of imports Hong Kong registered in September China recorded US$1.56, resulting in a US$1.35 billion divergence and suggesting fake export invoicing had inflated mainland trade data, Bloomberg reported, citing government data it had compiled. Hong Kong’s imports from China climbed 5.5% from a year earlier to US$24.1 billion, figures showed; China’s exports to Hong Kong surged 34% to US$37.6 billion according to mainland data on October 13. While China’s government has strict rules on importing capital, those seeking to exploit yuan appreciation can evade the limit by disguising money inflows as payment for goods exported to foreign countries or territories, especially Hong Kong.

IMAGE PROBLEMS: News of Chief Executive CY Leung’s secret payments prompted calls for him to step down from office

sheets to meet the tough new global bank capital regulations known as Basel III. China’s four biggest lenders are expected to issue US$20 billion worth of additional Tier 1 and 2 capital by year’s end, according to Fitch Ratings.

Credit: imaginechina

Economy

Finance China’s flash HSBC/Markit manufacturing PMI grew to a three month high of 50.4 in the latest report, up from 50.2 in September, Reuters reported. However, growth in new orders at home and abroad slowed in October and producer prices fell, pushing factory inflation to a sevenmonth low and highlighting still-soft domestic demand. Additionally, the index measuring the rate of growth

Bank of China (BoC) sold US$6.5 billion of contingent capital, marking the largest such issuance worldwide to date and the first ever by a Chinese bank, Reuters reported.

The so-called additional Tier 1 preference shares are instruments which behave like bonds and convert into common equity if a bank’s core capital falls below certain trigger ratios. As slow growth and bad debts build up, China’s banks are rushing to replenish their balance

A request from the Asia Securities Industry & Financial Markets Association (ASIFMA) that Hong Kong’s securities regulator delay the start of the Shanghai-Hong Kong stock connect may have pushed the project’s launch to November, Reuters reported, citing a letter from the associa-

CHINA BY NUMBERS Number of Chinese living on under RMB8 a day:

200 million 06

China Economic Review | November 2014

38 Number of deals Premier Li Keqiang signed in Moscow

Average calendar days it takes for the ministry of commerce to approve M&A deals:

26

7.7 million Estimated number of people aged over 60 in Shanghai by the year 2030

NEWS ROUNDUP

tion. In the letter ASIFMA stated that members could not begin trading due to uncertainty over technical issues and tax matters, and asked for a month’s notice before launch. Hong Kong Exchanges & Clearing had previously told market participants it expected to launch the trading link allowing investors to trade Shanghailisted shares via the Hong Kong stock exchange on October 27.

Politics & Society

The number of Chinese living in countries affected by Ebola has dropped sharply and some Chinese companies have evacuated workers, disrupting trade and putting further strain on economies in West Africa, The Wall Street Journal reported, citing official figures. In August, the Commerce Ministry estimated 20,000 Chinese lived in Ebolaaffected countries; as of October about 10,000 Chinese lived in the same area, the Foreign Ministry said.

While China’s economy still requires the resources Africa produces, demand for some key commodities in affected countries – such as bauxite

Hong Kong chief executive CY Leung received £4 million (US$6.467 million) from Australian engineering company UGL in two payments, in 2012 and 2013, after becoming the territory’s top official, The Sydney Morning Herald reported, citing a previously undisclosed contract from December 2011. The payments relate to a deal in which UGL bought an insolvent British property services firm Leung was associated with called DTZ Holdings, whose prospects depended on his network of managers and clients in Hong Kong and the mainland. The discovery came amid a massive ongoing movement in Hong Kong calling for universal suffrage, members of which seemed unconvinced by a statement from Leung’s office to the Herald saying the payments were for past services and that the agreement took place before he was elected chief executive.

Shen Yongping, the filmmaker behind a documentary on constitutional governance in China, is set to stand trial in November on charges of “illegal business activity”, Reuters reported, citing Shen’s lawyer.

Shen had raised over RMB100,000 (US$16,354) from supporters on the Weibo microblogging platform to make the documentary, his lawyer said. The trial follows the Fourth Plenum of the 18th Central Committee meeting convened in October which emphasized the party’s plans for a more professional, independent judiciary. Xinhua also announced that December 4 will be designated National Constitution Day to remind people that “no organization or individual shall have the privilege of being placed above the constitution.”

$6.467 million

Average increase in price of 2014 IPOs:

What the Australian engineering company UGL paid CY Leung for ‘past services’

181%

Business

China Mobile’s net income fell for the fifth consecutive quarter, this time by 12% to US$4.1 billion (RMB24.9 billion), Bloomberg reported, citing figures derived from nine-month results released by the company.

Rising costs to roll out the carrier’s fourth-generation network, which added 11.4 million users in September, are causing analysts to estimate net income will drop about 10% this year, which would be the biggest fall since 1999. Chief Executive Officer Li Yue is cutting US$2billion in smart phone subsidies after the government ordered carriers in July to reduce such spending to boost profit.

Credit: imaginechina

Credit: imaginechina

from Guinea – have slackened during the epidemic.

The introduction of a new procedure in April for “simple cases” of mergers and acquisitions has almost halved the time it takes to get approval from China’s Ministry of Commerce (MOFCOM), Reuters reported, citing a data set published by the regulator which tracks both transaction filing and approval dates. MOFCOM is making it easier for companies to plan and execute acquisitions, which is reducing legal costs by up to 40% to about US$80,000 on average for simple cases, lawyers said. The regulator took an average of 26 calendar days to approve deals filed under the new procedure according to analysis by law firm Norton Rose Fullbright.

60% Amount China expects to fall short of its 2015 target for offshore wind power

China’s Q4 growth, as predicted by one PBoC member:

7.2% China Economic Review | November 2014

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OP-ED: CHINA & WWI

To Understand Beijing Now, Go Back to Paris Then Paul French, author of Betrayal in Paris and Midnight in Peking, explains how China’s betrayal by Western powers at Versailles still influences the country’s thinking today

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o understand the nature of China today we need a starting point. Some ffixed moment in history ffrom which we can draw a straight (-ish) line tto help us understand Beijing’s current dipB llomatic obsessions and Paul French p phobias, its back brain rreasonings and historical knee jerks. The 1911 revolution, Xinhai, is perhaps most obvious – the moment China chose to reject dynastical turns of history and monarchy and to embrace republicanism and the modern in many forms (not just political systems, but railways, roads, urban planning and a greater engagement with international culture, arts and sciences). But that doesn’t explain China now and its obvious reticence, despite the official rhetoric, to fully engage with international cultural trends and social currents.

Despite the flying start of 1911, something interjected a note of caution, a pulling back from full engagement to a more overtly nationalistic and restricted sense of the nation of China and the notion of Chineseness. An event that presaged a sense of self-isolation and retreat from globalism for so long and, in many arenas, still remains steadfastly in force today, front and centre in Beijing’s geo-political thinking.

A moment when China decided to pursue its own, largely uninfluenced, course of development, which necessarily required a top down, nationally agreed, narrative of history and an accepted cast of characters both good and bad.

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China Economic Review | November 2014

“Paris 1919 and the Treaty of Versailles is the moment when the West ceded the high ground in the China debate” That moment, I would argue, was China’s severe disappointment at the Paris Peace Conference convened in the French capital in 1919 to remake the world in the wake of the “Great War” of 1914-1918. It was billed as an attempt to rewrite wrongs and serve up international justice by the victors to the losers.

But China, which saw itself as having been on the side of right and a victorious power in that conflict, was not to sign the resultant Treaty of Versailles designed to remake the world.

Rather China was to feel let down and betrayed by those that claimed to be allies. China’s young intellectuals felt it essential to protest this betrayal and, being unable to force the world’s “Great Powers” (Britain, France and, the latterly emergent, United States) to support China’s claims in Paris, turn in on itself and do the only thing it could – remake Chinese politics in the face of international intransigence.

From that duplicity in Paris nearly a century ago a path of history can be drawn through the nationalist politics of the 1920s and 1930s, the long bitter and bloody clash with Japan, civil war and the communist revolution of 1949. Further, that betrayal and

rejection helped shape the politics of the new People’s Republic through the 1950s to the 1980s and continues to shape the historical narrative and self-image of China’s leaders today.

Simply put, you can’t understand Beijing’s diplomatic policy goals today without understanding what happened in Paris in the spring of 1919 – history resonates.

China’s goals in Paris in 1919 were simple and her claims at the Peace Conference just. Looked at in hindsight the Japanese annexation of Chinese territory in Shandong from German occupation in 1914 was clearly a land grab presaged by the chaos and diversion of war in Europe. China’s high hopes in 1919 for the restitution of Shandong were not expected to be overly contentious by the Chinese delegation that travelled to Paris to negotiate. The Conference of the victorious powers would clearly see Tokyo’s motives and opportunism against a weaker state in the early years of a new republic and restore its territorial rights. But it was not to be.

Global real politik prevailed.

China, though an ally, was not a combatant itself during the First World War, but the negotiations in Paris in 1919 proved a long and intellectually bloody battle, of words and arguments rather than battalions and regiments, of promises rather than manoeuvres and field orders, demands for justice rather than bravery on the battlefield. The casualties were significant – China’s prestige, its sovereignty, its faith in its fellow republic of the United States, any trust it may have had in the good word of the European Great Powers. It’s a twisted tale, too long to tell

OP ED: CHINA & WWI

in full here, but suffice to say that Britain and France looked to preserving and extending their own empires and global trading networks in China after the war and a stronger China didn’t fit with that agenda. America promised China its backing but retreated eventually from full support.

The protests that erupted in Beijing, those events that came to be known as the May 4th Movement, rejected that marginalisation of China and demanded strong government and a clearer national identity.

It is fair to say that the Treaty of Versailles ultimately encouraged Japan’s long-term territorial ambitions in East Asia. The interwar years for Japan were to be, as Churchill characterised them, just a ‘loaded pause’. Wellington Koo, the supremely gifted Chinese diplomat who debated the Japanese face-toface in Paris, prophetically declared that their decision on Shandong could lead to war within ten years.

He was just a few years out. Japan annexed Manchuria barely a dozen years later. The European and American appeasement of Japan in 1919 was to accelerate a process that led to the eventual war for the Pacific and control of East Asia just two decades

later, and to forge a seemingly lasting enmity between China and Japan that virulently persists to this day.

The aftershock of Versailles reverberated down through modern Chinese history. Lessons learnt in Paris in 1919 became constant truths for Chinese politicians after 1949. Foreign nations were not to be trusted; China could never rely on any foreign capital to represent its interests and support its national ambitions.

Chinese communism consistently played down the internationalist element that had been intrinsic to the original worldwide socialist project. It demanded not just complete distrust of the West, but also of those who appeared to be friends and allies, such as the Soviet Union.

When the Communist Party came to power in 1949 they understood, from the start, that any seeming weakness or prevarication when it came to either Japan, or any foreign power, could easily be the spark that ignited protest and possibly lead to them losing their “mandate of heaven”. Consequently the Party, always obsessed with regime survival, sought to learn the lessons of history and to accentuate nationalism and selfsufficiency as primary objectives.

PEKING TOMS: Soldiers stationed in an adjacent corridor try to catch a glimpse of the signing of the Treaty of Versailles, whose ramifications have been felt in China’s politics and culture even to this day

Paris 1919 and the Treaty of Versailles is the moment when the West ceded the high ground in the China debate. It was a moment when the iniquities of the Opium Wars, and the “land grabbism” of the treaty ports, could have been reversed. When London, Paris and Washington could have sided with China against an aggressor and partially made right previous wrongs.

It would not have been a perfect solution, nor a full atonement, but it would have been the morally right thing to do. And it was not a difficult thing to do – the awarding of a piece of territory to the country it belonged to may have temporarily annoyed Tokyo but it would not necessarily have permanently poisoned the well, either. Japanese militarists may have been warned off of China and been rather more circumspect in 1932 and 1937 than they were. Sino-Japanese relations may have been something entirely different from now, something more positive, more collaborative. It’s a great “what if?” of history, and in no way excuses either the excesses of Japan in the 1930s and 1940s in China nor the dark years of Maoism, but it does offer an alternative pathway for both nations; a path that could have meant, ultimately, a more stable, less rancorous East Asia than we are faced with today.

The other side of the coin of course is that we should remember that if Britain, France and America had made decisions more morally in 1919 regarding China and Japan, rather than wholly in the name of self-interest, then perhaps the last century of East-West relations might have been significantly more conducive than they have been.

“What ifs?” of history are just that – what if? But if we are all to learn from the past then we need to consider not just what actually happened and its outcome but also what might have possibly happened and what those outcomes might have been?

There are always alternatives, there certainly were in Paris in 1919. When we look back, we should consider those and reflect upon them.

China Economic Review | November 2014

09

OP-ED: CHINESE CELEBRIT Y

Unexpected effects Lars Bergkvist, Associate Professor of Marketing at the University of Nottingham in Ningbo, details key differences in how fans relate to celebrities and brands on the mainland

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China Economic Review | November 2014

and Western consumers perceive and relate to celebrities, and what the consequences are for celebrity endorsements in China.

To find out more about how Chinese consumers relate to celebrities we analyzed qualitative data from open-ended questions used to pretest celebrities before including them in experimental research. In these questions we asked what character traits young consumers associated with different celebrities. The answers revealed a number of recurring traits, or associations, that diverge quite sharply from how Western consumers would describe their own celebrities.

Among the answers were several references to the celebrities’ moral character; some were described as having high moral character and others low, in most cases without reference to a specific situation such as charity work or infidelity. Perhaps less surprisingly one celebrity, rumored to have cheated on his wife, was consistently

described as unreliable.

Other celebrities were predominantly described in terms of being rural origin and simple, or speaking poor English, or being cheerful, virtuous or upright. To a Westerner, the most striking characterizations came from a handful of celebrities that were described as hard-working. Some of these stars were also associated with other traits, but one was seen first and foremost as a hard worker to young Chinese consumers: Li Bingbing, recently seen in Transformers: Age of Extinction.

This characterization of Li Bingbing as hard working was later confirmed in a quantitative association test. Moreover, an experiment later showed that this trait transferred from her to a fictitious brand she was associated with. This may not have been what the people at Gucci had mind when they signed said beautiful, glamorous and stylish woman to endorse their brand.

GOLDEN HARVEST: Known for his prodigious promotion of a plethora of products, Jackie Chan’s impact on a brand's reputation might be diluted thanks to his ubiquity in advertisments throughout greater China

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sing celebrities to launch new brands or sstrengthen established brands is a popular marb kketing tactic in many markets, and one that m iis particularly popullar in China. Celebritties attract attention to Lars Bergkvist b brands and it is widely aassumed that their popularity spills over to the brands they endorse. What is perhaps less known is that celebrities also endow brands with their personality traits and image associations both good and bad. New research at the University of Nottingham Ningbo suggests that the way Chinese consumers relate to celebrities adds yet another unique layer of potential risk and reward to tying celebrity with brand on the mainland – one that is likely entirely foreign to brand managers with a Western view of celebrities.

Earlier this year I carried out a study together with one of my students with the aim of applying typical Western celebrity research in China. As part of the study we asked participants to rate a Chinese celebrity on a number of character traits which had previously been used to rate American celebrities in a study with American participants. However, applying celebrity personality traits that worked fine in an American setting did not work at all in China: The participants answering the study’s questionnaire often struggled to describe Chinese celebrities using the traits in the study, and none of the effects of celebrity endorsements on the brands found in the American study occurred in China.

That begged the question of what differences there are in how Chinese

UTMOST DILLIGENCE: While Western brand managers might see a pretty face, Chinese fans look at Lin Bingbing and see a hard worker

The overall impression of the open-ended characterizations is that Chinese consumers look more to the actual person and their life when relating to celebrities than Western consumers. The celebrity’s career, private life, movie roles, financial success, origin and more all blend into characterizations of moral character, work ethic, and social skills.

For the manager planning to use celebrity endorsement to promote their brand in China, it is essential to be aware of how Chinese consumers relate to celebrities and make sure that an appropriate celebrity is selected. Selecting the wrong one could have long-term negative effects on the brand. This risk is particularly high for brands that are new on the Chinese market, since those unfamiliar to consumers are much more prone to pick up associations than brands which are already well-established.

Pretesting celebrities to make sure they fit the brand’s intentions can be done in a straightforward two-step process. In the first step, a sample of about 30 people from the target audience are shown one or two pictures of the celebrity, followed by the question “What associations (positive or negative) do you have to this celebrity?” The question, in turn, is followed by instructions to write down the associations that first come to mind when thinking of this celebrity. If necessary, the associations question can be preceded by a

“Perhaps less surprisingly one celebrity, rumored to have cheated on his wife, was consistently described as unreliable” recognition question to make sure all participants know who the celebrity being pretested is. The answers to the celebrity associations question are then tabulated and the most frequently occurring characterizations – both positive and negative – can be used as input for the next step.

In step two a sample of 30 to 50 members of the target audience is asked to rate the extent to which celebrities have the frequently mentioned characteristics from step one with the question: “To what degree do you think that the celebrity possesses the following traits?” Each trait is then listed and responses captured on a 7-point response scale with the endpoints “not at all” and “extremely.” The data from step two is then analyzed by tabulating the mean scores and frequencies for each characteristic.

When interpreting the results there may be some additional challenges. In our research we found that some characteristics cannot be

Credit: imaginechina

OP-ED: CHINESE CELEBRIT Y

taken at face value. In one case many participants indicated that a female celebrity was sexy, but a bit of probing unearthed that she was characterized as sexy because of being part of a sex scandal, not mainly because she was seen as desirable and seductive. Similar insights were uncovered for celebrities that were described as international, which was used to describe celebrities who are seen as having given up their Chinese roots and are trying to act like foreigners. Both of these cases illustrate the importance of interpreting consumer perceptions in the Chinese cultural context rather than from a foreign cultural perspective.

Celebrity endorsements can be a powerful promotional tactic in China, as elsewhere. However, the selection of a celebrity needs to be done with great care and on the basis of appropriate pretests. Moreover, the selection of celebrity needs to take into account other factors in addition to character associations: The celebrity should be well liked in the target audience, not be doing too many endorsements for other brands, and have a natural fit with the product category and brand.

To give only one hypothetical: Fan Bingbing, however admirably diligent, is probably not the best candidate to endorse Wild Turkey bourbon whiskey in its mainland debut.

She might pair well with Robert Mondavi’s wines – but we’d have to run tests to be sure.

China Economic Review | November 2014

11

OP-ED: FILM INDUSTRY CENSORSHIP

Breathing room Max Peskin, a copywriter with DMG Entertainment, sheds light on Beijing’s outsourcing of film censorship to provincial governments – and how it might be lightening the state’s heavy hand

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China Economic Review | November 2014

office revenue reached $3.6 billion, a 27% increase in comparison to 2012. It has also been reported* that, on average, China puts up nearly ten new movie screens a day. These types of statistics lend further support to Ernst and Young’s prediction of China’s global box office dominance by 2020. Some noteworthy Chinese film studios include China Film Group (Journey to the West, American Dreams in China), Huayi Brothers (Personal Tailor, Back to 1942), DMG Entertainment (Transcendence, Iron Man 3), and Shanghai Film Group (A Touch of Sin, Aftershock ). Top Hollywood studios, such as Disney, DreamWorks

Credit: imaginechina

ensorship has always been a hot topic buttton for China’s media, ffeature films being no eexception. In comp a r i s o n t o C h i n a’ s r a p i d l y r i s i n g fi l m iindustry income, the State Administration S Max Peskin o of Press, Publication, Radio Film and TelR evision (SAPPRFT) has been much slower to allow risky or risqué content to appear on the silver screen, whether locally produced or foreign made. Although Chinese filmmakers have long been eager to showcase their artistic capabilities in theaters worldwide, SAPPRFT’s rigid guidelines have left local talent questioning if it can compete while complying with such restrictions on creative content. Some local filmmakers have even gone as far as to question if SAPPRFT will ever adapt a more lenient policy on censorship.

However, a recent change in China’s censorship procedure has shown that while full-on free expression may not lie in the foreseeable future, local filmmakers could soon enjoy a little more creative wiggle room thanks to a decentralization of their censorship review. While provincial government will play a bigger role in deciding which local films will be featured on the silver screen, it will do little to stop SAPPRFT from asserting its authority over film screening venues, such as with the Beijing Independent Film Festival.

As the second largest film market in the world, creativity is increasingly crucial for China’s box office, which has become a key target for powerhouse studios and aspiring filmmakers. In 2013, the total box

and Legacy, continue to look for ways to capitalize on the Chinese film industry’s momentum, such as through collaborating in international co-productions with local studios or establishing their own branch offices in China.

The Chinese government has taken notice of the film industry’s potential: It offers film studios a range of handicaps to keep local films competitive against Hollywood blockbusters, such as tax incentives, preferential scheduling and blackout dates for foreign films.

In its most recent attempt to give local filmmakers a helping hand competing against foreign studios,

BREAKING OUT: During and after production in Shenzhen, director Jia Zhangke’s film Factory Boss felt less pressure from, and was even supported by, provincial officials eager to promote the local film industry

OP-ED: FILM INDUSTRY CENSORSHIP

SAPPRFT has decided to decentralize its content reviewing procedure, allowing the provincial offices to determine what is appropriate for theaters. Starting in April 2014, the Chinese government gave provincial film departments authority to independently review locally produced films, though foreign films and international co-productions must still be reviewed at SAPPRFT’s Beijing headquarters. Although decentralization was intended to help speed up the lengthy film reviewing process for local filmmakers, some questioned if the change could result in riskier content being approved for Chinese theaters. Nobody was quite sure: Following news of the policy change, Jia Zhangke (Touch of Sin) commented that he found it difficult to determine whether this move really meant more leniency for the local filmmakers.

However, a locally produced feature film, Factory Boss, may be proof that the change in procedure has given some ground to film-

makers whose movies contain more controversial content. Zhang Wei’s film tells the story of a Shenzhen toy company owner (Yao Anlian) who tries to meet his client’s expectations while still attempting to run a respectable factory. In an attempt to keep his factory afloat and his staff employed, the factory owner accepts an unfavorable contract to produce toy dolls. Meanwhile, an undercover reporter has infiltrated the factory to expose poor working conditions and Yao’s character soon finds himself in a series of scandals that threatens his livelihood and his reputation.

Factory Boss highlights the touchy topic of poor working conditions and employee mistreatment, problems which the All-China Federation of Trade Unions supposedly takes care of. Although there is no specific rule which states that poor working conditions are not allowed onscreen, the factory’s downward spiral to sweatshop-like conditions in the film would likely fall under the category of “propagating passive or negative outlook on life, world view and value system.” China’s ugly history of poor working conditions only increases the government’s hesitation toward exhibition of the topic.

Other film elements which are prohibited in the eyes of SAPPRFT include ghosts, historical distortion, and vulgar content.

Despite Factory Boss’s focus on poor working conditions, it surprisingly made it past the provincial censorship board and has been scheduled to be shown in theaters. Even though the film is expected to garner a lukewarm box office reception, the provincial film department was willing to take a chance on it due to Zhang’s strong ties to the region. In fact, the Shenzhen provincial government even aided Zhang’s efforts to promote the movie. The government’s support seems to have paid off, as Factory Boss was not only accepted into the Montreal World Film Festival, but also won Yao Anlian the award for best actor.

Zhang was not afraid to announce how important the region was for his film, telling the LA Times that,

“In Shenzhen, I’m somebody; I can get stuff done. In Beijing, I’m a nobody.” Thanks to SAPPRFT granting the provincial office the authority to review Factory Boss , Zhang Wei was able to have his controversial film shown to the public. His success will likely compel other filmmakers to test out relatively controversial feature films outside the confines of Beijing, where they might otherwise be rejected by the SAPPRFT’s central censors.

Although this policy change can be counted as a small victory for local filmmakers, the war on censorship is far from over. In August, Chinese authorities shut down the 2014 Beijing Independent Film Festival. Although the festival had long been a target for Chinese officials, this year marked the first time it was completely shut down by authorities. Police officers not only blocked anyone from entering the venue, but also detained the festival’s organizers, Wang Hongwei, Fan Ron and Li Xianting. Only after the organizers signed a document waiving their right to hold the festival were they released.

Due to the currently unavoidable heavy presence of censorship in the Chinese film industry, the progress of free expression should be measured in inches, not miles. It is easy for the Beijing Independent Film Festival’s shuttering to grab headlines, but it should be understood that China’s film industry is still very much in its infancy. Opening up the flood gates may be a desirable action for filmmakers both local and worldwide, however the government and studios need time to establish crucial guidelines for content, such as film classification systems, before relaxing controls to a more substantial degree. (Assuming they are willing to, of course.)

While China’s creative talent will have the shadow of censorship draped over its shoulder for years to come, SAPPRFT’s decentralization could be considered a baby step in the right direction for local filmmakers looking to explore new areas of creative expression.

China Economic Review | November 2014

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OP-ED: SPECIALT Y HOSPITALS

Private hospitals, investor interest Eric Yan and Helen Chen of L.E.K. Consulting outline the growing opportunities for specialty hospitals in China and what it will take for growing institutions to stay competitive as they expand

T

he private hospital sector is an emerging part of China’s healthcare marC kket, and is expected to maintain double-digit m ggrowth over the coming yyears, driven by regulattory changes, market demand and capital d Eric Yan iinvestments. Specialty hospitals have been h lleading the growth aamongst the private hospital market, and h different specialties – d iincluding mainstream sspecialties like gynecoloogy & eye care and otheers like oncology, cardiovvascular and psychiatry – have unique opporHelen Chen ttunities. Among the most successful in the m sector is Wenzhou Kangning Hospital, which has achieved tremendous growth over the past 15 years and now is the leading private psychiatry hospital group in China.

However, the operational management of China’s private hospitals is lagging, and at L.E.K. we have identified three core management principles that can be applied to help remedy this deficit: Standardization, expansion and optimization. Financial performance standardization in particular is key whether growth is sustainable, and private hospitals need to develop and implement systematic financial management to overcome this challenge.

The number of private hospitals in China increased from about 5,400 in 2008 to roughly 9,800 in 2012. This growth is expected to continue at an average pace of 15% annually, reaching 15,000 by 2015. In addition, the number of inpatient visits at private 14

China Economic Review | November 2014

hospitals has surged from 5.2 million in 2008 to 12.3 million in 2012, representing a Compound Annual Growth Rate (CAGR) of 24%. This is expected to further accelerate to a CAGR of 30-40% in 2015, reaching an annual inpatient visit total of 25-35 million Favorable governmental policies, increasing patient affordability and growth in investments are the three major factors driving the growth of China’s private hospitals. First, both the central and provincial governments have introduced new policies and regulations to support the development of private hospitals. Some of the key policies introduced include allowing multi-site practice by physicians, relaxing the restrictions on public reimbursement, giving forprofit private hospitals three years of tax exemption and allowing complete foreign ownership, among others.

Authorities have also allowed private hospital groups to centralize the registration of individual chain hospitals into a single account, greatly simplifying the registration process and increases operational efficiency As China’s economy continues to grow steadily, the disposable income of many Chinese has also increased, leading to a rise in medical affordability. According to various estimates, the share of families in China with annual disposable income greater than RMB220,000 is expected to increase from 2% in 2012 to 6% in 2020. Total expenditure in private medical insurance is also expected to treble from today’s level, meaning the number of patients who can afford premium medical care should surge Finally, the amount of capital invested in private hospitals has been increasing. With growing interests from private equity investors, the number of deals involving private

hospitals has experienced unprecedented growth, and 55% of all such capital invested is in specialty hospitals. At the same time, large public-listed pharmaceutical companies have also been actively making acquisitions in the private hospital market. The ongoing privatization of public hospitals and growth of foreign-invested hospitals have also contributed to a conducive investment environment.

Although more than half of the 9,000 or so existing private hospitals are general hospitals, specialty hospitals have been leading the sector’s growth, especially those with specialties that are more easily replicated.

Private hospitals with different specialties have seen accordingly varied growth trajectories and strategies to date. Recent years have witnessed the rapid growth of premium gynecology private hospitals, exemplified

by United Family Hospital’s gynecology department, Amcare, AmericanSino and Angel. Other specialty private hospitals such as Aier Eye Hospital and Arrail Dental Clinics are also experiencing steady growth.

We believe that there are opportunities in other specialties, such as oncology, cardiovascular treatment and psychiatry. Psychiatry specialty hospitals, for example, have seen increased government support and stand to benefit from huge unmet need across the country, which should provide excellent growth prospects going forward.

In 2012, the central government published a draft for consultation of the National Mental Health Plan (2012-2015), introducing new mental health oversight and management guidelines for local governments to follow, including allowing reimbursement for mental health expenses.

Subsequently, many local provincial

OP-ED: SPECIALT Y HOSP ITALS

governments were spurred to introduce local policies of their own. In addition, to combat the issue of limited mental healthcare practitioners, the government has planned to increase the number of psychiatry doctors and nurses to a ratio of 25 and 50 per million, respectively, by 2015, a step closer to the global averages of 40 and 130 per million.

According to Chinese Center for Disease Control and Prevention, there are currently approximately 100 million people with some kind of mental health illness in China, including 16 million having serious mental problems. Incidence rates have risen for mental illnesses such as anxiety and depression, but the diagnosis rate of mental illness remains at only 30-50%, while the treatment rate is still a mere 10-20%, significantly lower than U.S.’s treatment rate of 80%. Driven by advances in diagnosis and medical treatment in China, as well as increased affordability, both diagnosis and treatment rates are expected to increase sharply, leading to an enormous demand for psychiatric medical services Changes in societal norms will also contribute to the growth in market demand as more patients and their families understand and accept mental illness. Also key is a trend towards adopting a more systematic treatment protocol for psychiatric patients, with more receiving proper medical and rehabilitative treatment at hospitals, rather than at home.

Among the hundreds of different psychiatry specialty hospitals in China, Wenzhou Kangning Hospital is a prime example of success. Kangning was founded in 1998 and had an initial capacity of 200 beds and about 100 medical professionals. After 15 years of growth, Kangning has become a full-fledged hospital management group with a portfolio of five hospitals across six geographical sites and a total inpatient capacity of over 2,000 beds. The flagship hospital of Kangning in Wenzhou has 1,060 beds and more than 700 medical professionals alone. In 2012, Wenzhou Kangning became the first private psychiatry hospital to be granted 3A

“Changes in societal norms will also contribute to the growth in market demand as more patients and their families understand and accept mental illness� status in China. The key market differentiation for Kangning has been its end-to-end medical solutions, customer service and advanced clinical treatments, and in June 2013, private equity firms CDH Investments and GL Capital invested RMB200 million in the group.

Looking back at the historical growth of private hospitals in China, opportunities and barriers both become apparent. It is evident that there are currently many problems with the management of private hospitals, such as low profitability, lack of good management systems, and low operational efficiency. At L.E.K. we believe the three core management principles of standardization, expansion and optimization can help overcome these issues, particularly for specialty private hospital chains.

Hospital management standardization is a key step towards private hospital growth and a necessary measure in bringing consistently high-quality healthcare services to patients. Standardization mainly applies to finance, operation and clinical practices. Using the latter as an example, standardization entails providing standard clinical treatments and medical guidelines for all patients. It also means using standard clinical indicators and reports to evaluate diagnosis and treatment results, and consistently using an evidencebased approach to improve the medical care that is provided to patients.

With standardization in place, private hospitals can move to the expansion stage to quickly replicate a suc-

cessful operating model. However, each expansion strategy needs to be tailored to the specific circumstances of an institution and will require varied implementation. For example, with geographical expansion, there is a need to consider the market demand in the area of expansion and to choose a suitable local partner before entering the market.

In hospital management, continued optimization is a key to improving operating performance. This includes providing better service to meet patient needs, increasing patient volume and reducing cost. In order to remain ahead of the competition, it is imperative for hospital management to begin optimization after standardization and expansion by optimizing both financial and non-financial key performance indicators (KPIs). This can ensure both operational efficiency and steady growth.

Of these three key principles, standardization, particularly financial performance standardization, is currently a key challenge facing many private hospitals in China. Most hospital management personnel in the country come from a medical background and have historically been focused on building a strong clinical service team. However, as hospitals expand in scale or number, financial and operational standardization become central to success. In order to succeed, private hospital management should consult with experts to develop and implement a systematic financial management solution, including financial KPI classification, financial data reporting, a customized financial IT system, and detailed, standard operating procedures for each function and role involved in the financial management process.

Private hospitals are only beginning to experience a phase of rapid growth, and the market potential is immense. However, so long as operational management lags behind it will continue to pose potentially serious managerial problems. It is thus vital for private hospitals to consider how to improve operational management in a systematic way in order to continue growing sustainably.

China Economic Review | November 2014

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WORKERS OF THE WORLD: As the economy softens and wages rise, workers trapped in the middle increasingly find themselves forced to take collective action to get paid

Toil & Trouble AS LABOR STRIKES SPREAD ACROSS CHINA’S PROVINCES AND INDUSTRIAL SECTORS, A POTENT BREW OF DEMOGRAPHIC CHANGE AND ECONOMIC DOWNTURN THREATEN TO BOIL OVER

Credit: imaginechina

COVER STORY: STRIKE SPIKE

C

redit, it turns out, is the lifeline of Chinese labor.

New credit rose to a three-month high in September as the People’s Bank of China sought to bolster lending, injecting half a trillion yuan into the country’s five largest banks. How much of this actually reached China’s workforce in the end is unclear, but it wasn’t enough to tamp down a growing number of strikes in sectors historically plagued by wage problems and middlemen eager for a cut. Strikes doubled in the third quarter compared to the same period in 2013, totaling 372 incidents, with 165 in September alone, according to records kept by the Hong Kong-based group China Labor Bulletin (CLB).

The strikes have broadened geographically and across industry sectors throughout China this year – particularly construction, where workers face increasing arrears thanks to the country’s ongoing property-led downturn.

The rise in protest frequency and broader distribution reflect major changes in Chinese labor that will reverberate throughout the global economy for years to come. The domestic labor pool continues to shrink and wages continue to rise as investment and provincial policies shift in reaction to a changing economy that needs serious readjustment. Whether China proves up to that task will depend in no small part on how mobile, networked and rights-aware its current cohort of workers is, and on how willing authorities are to allow labor to slip, even slightly, from their grip.

China Economic Review | November 2014

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COVER STORY: STRIKE SPIKE

More places, more often China Labor Bulletin’s strike map, the most comprehensive independent resource on mainland strike activity, showed evidence of major trends for the third quarter in the frequency, location and sector of labor strikes. In modern times strikes have tended to peak ahead of the lunisolar new year in January or February, when manufacturing and construction workers are typically paid for their work on a project. This year, however, strikes have only increased since then.

While Guangdong province remained the heaviest hitter at 71 strikes, its share of the total continued an ongoing relative decline, with Zhejiang, Jiangsu, Shandong and Sichuan all host to 20 or more strikes apiece from July to September of this year. Goffrey Crothal, a spokesman for CLB, said that while Guangdong and other coastal provinces had long been the heart of organized labor in China, “as the development of inland provinces accelerates and there’s a relocation of manufacturing from coastal areas to inland areas you’re seeing more and more disputes arising in those areas as well” Mary Gallagher, an associate professor of political science at the University of Michigan and director of the school’s Center for Chinese Studies, said that while she believed the strikes recorded by CLB were actually happening, it was important to consider whether the increase in figures was due to more people reporting strikes, rather than an actual increase in the total. However, she said, “I think now we can have some confidence to say that it does seem like strikes are increasing.” Gallagher also noted that that some of the highprofile strikes of the past few years weren’t always a matter of workers taking advantage of a better bargaining position gained through labor shortages and protective laws, but rather reactions to mergers and bankruptcies that had prompted project or factory shutdowns.

Crothal emphasized that a softening of China’s economy and lack of credit this year had provided ample impetus for workers to take action by 18

China Economic Review | November 2014

increasing disputes over non-payment of wages, which accounted for nearly half the number of strikes recorded this year. While tightening credit had deprived many workers of payment in the last nine months as managers used more of available funds to stay afloat, he suggested credit, if loosened, would likely be intercepted by middlemen and managers: “Workers are always the last to be paid.”

Under the current system workers often don’t get paid, so they strike until they do. There is no negotiation phase to speak of before that.

Right to strike Behind many of these contradictions lies the world’s largest union by numbers, which holds a monopoly on representation of the country’s workers, and has consistently failed at meaningful mediation on their behalf to the point that its role is essentially ceremonial. There has not been a legally protected right to strike in China since 1982, when Deng Xiaoping struck it from the constitution as the country hit the capitalist road. That left the duty to protect workers’ rights with the mainland’s

only sanctioned union: The AllChina Federation of Trade Unions (ACFTU).

That the ACFTU is essentially worthless in mediation between labor and management can be seen in the growing strike numbers of recent years: Previously concentrated in China’s South and East, but now spreading nationwide. Because the ACFTU can be reliably expected to side with management in the vast majority of disputes, laborers have become experts in uniting as on-the-spot unions that can effectively strike to gain leverage. These are formed and disbanded as necessary, often with guidance from labor rights groups that operate under constant pressure from local authorities keen on keeping wages down and GDP up.

Wages of men Low worker wages are used as a selling point for China’s inland cities trying to attract factories away from the coast, but the past five years have seen changes in income levels across the country increasingly undercut this sales pitch thanks to a shrinking labor pool and rising wages.

LABOR GOES VIRAL: A group of construction workers from Wuhan dance Gangnam Style in a video to draw attention to their request for unpaid wages

COVER STORY: STRIKE SPIKE

wages to continue rising,” he said.

Combined with the higher cost of living near the coast there is now less incentive for laborers in some sectors to stray so far afield. Still, average wage comparison does mask the broader range of salaries – high and low – paid to workers, which varies at the provincial or even county level.

Minimum wage, meanwhile, fails to communicate how much workers really make, though it can still direct them to or away from a given region.

A Wall Street Journal investigation in September found electronics manufacturers in Chongqing – the golden child of China’s “Go West” campaign meant to direct investment inland – resorting to forced student labor to fill positions which had been created by the drive inland, but left unoccupied by migrant workers who preferred the higher minimum wages offered on the coast. Thanks to a 2010 decree by the Ministry of Education stating that vocational schools have to supply students to fill labor shortages, Chongqing-based factories for brands including Apple and HP are now filled with “interns” who have to work low-wage assembly lines, sometimes for up to a year just to graduate.

Credit: imaginechina

Labor in China has historically been from west to east: The National Bureau of Statistics pegged total rural laborers working in cities at about 262 million in 2012, with over 66% of migrant workers from inland China employed outside of their home province. However, in recent years there has been some pullback thanks to a narrowing wage gap between inland and coastal provinces. In 2012 the average wage in western China was RMB2,226 a month, only RMB60 less than in eastern China.

“The labor market is pretty integrated right now, and labor is pretty mobile,” said Albert Park, professor of economics at Hong Kong University of Science & Technology. “If there’s a huge wage gap, migrants move to the high-wage area.”

The past five years have seen income rise across regions in China at similar rates. The trend has been helped along by a shrinking working-age workforce, Park said, which decreased by 2.4 million last year according to the National Bureau of Statistics. “Assuming reasonable growth environment globally and domestically, I think you can expect

Go West?

For manufacturers a move to the interior now entails striking a tricky balance between the sometimes slim benefits in terms of labor expenses and downsides including transport cost for goods and the lack of logistic and infrastructural establishment.

Cities like Chongqing are footing the bill for such discrepancies in order to convince manufacturers to make the move, but times are increasingly tough for the property sectors of many other provinces out west.

The post-crisis boom days, when the country was awash in stimulus money, are long over. As stimulus goes, so goes construction, and with it construction workers.

That recession of investment has provided catalyst for trouble in the construction sector, which in the last half-decade became a substantial source of migrant employment.

Thanks to massive stimulus spending

after the 2008 financial crisis, housing and infrastructure accounted for more than 17% of migrant employment as of 2012. While manufacturing still employed more than a third, the relatively low percentage of manufacturing strikes located in the west compared to the east seems to suggest that the sector has not yet become a core driver of inland economies. But construction strikes in the west have accounted for over 11% of the total this year.

The 2008 stimulus gave a huge boost to construction, Gallagher said, “and if that sector has become the dominant sector in inland china – which it seems it has – then if that sector goes down, there’s definitely going to be labor instability coming out of that.” While the resulting infrastructure might prove beneficial in the long term, she said, in the short term it might not necessarily seem like a success if not supplemented by manufacturing.

In lieu of another broad stimulus, that seems unlikely based on recent trends in foreign direct investment in China. Between 2001 and 2010 manufacturing dropped from 66% to 47% of total FDI, while real estate grew to become the second-largest recipient at 23%, according to a report by the Economist Intelligence Unit. A recent breakdown of FDI

by Ryan Rutkowski of the Peterson Institute for International Economics in September noted that while foreign investment in manufacturing had dropped US$4.2 billion, FDI in the services sector had grown nearly enough to make up for it. That bodes well for foreign investment Chinawide, but less so for cities out west hoping for a second coming of quick GDP growth, hauled uphill on the backs of low-paid labor.

Social, if not socialist Another contributor to the increase in strikes throughout China is social media, which when combined with low-cost smart phones (and the rising wages to buy them) has helped spread knowledge of strike techniques, working conditions and wages among a more wired workforce.

China Economic Review | November 2014

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COVER STORY: STRIKE SPIKE

Messaging-networking platform Weixin (branded as WeChat abroad) serves as a go-to organizing tool among laborers that can quickly rally a group of workers to a cause and inform everyone involved about the latest developments. Labor activist groups, which provide guidance to mainland worker movements and essentially step into the role that the ACFTU refuses to fill use microblognetworking platform Weibo to spread word to a wider audience.

Geographically there is more adoption of social media in top-tier cities, and there is less internet penetration in provinces farther from the coast. But in the last few years nearly all provinces in the west crossed or came close to the 33% mark for net penetration; among workers, the smart phones necessary to use networking apps are ubiquitous enough to have real impact even if not everyone on the assembly line has one.

And while the last two years witnessed an unprecedented crackdown on online dissent, CLB’s Crothall said most of the accounts he followed to keep tabs on strike activity were all still fairly active.

Among the techniques spreading through these social vectors to the workforce at large is the practice of peaceful sit-ins, following deployment of the tactic by a group of jewelry workers in Foshan. Typically workers strike by hitting the streets and making some noise. “That has the advantage of attracting the attention of the authorities,” Crothall said. “It also has the disadvantage of attracting the attention of the authorities.” Protests sometimes escalate as managers are taken hostage or public order is disturbed, and police violence is often used to quiet things down.

But social media has now clued workers in to the fact that blocking traffic brings out truncheons and gets protesters thrown in the hoosegow.

Instead, dissatisfied laborers have begun to simply occupy offending factories, reckoning that if they aren’t violent it will be harder for officials to find an excuse – or for hired toughs to incite violence – in order to jus20

China Economic Review | November 2014

tify a crackdown. Gallagher called the development “hugely significant,” and potentially a huge boon to the movement if the trend develops into a more concentrated effort to push for civil and political rights around labor issues. Whether authorities will let them is another matter.

Strike busting Since Deng deleted the right to strike from China’s constitution in ‘82, the act has occupied a legal gray area that left authorities free to condone or condemn as they pleased. New rules for collective bargaining out of Guangdong may upend the status quo and, depending on how implementation there fares, find their way back to migrants’ home provinces.

In late September the Guangdong provincial legislature passed the Regulations on Enterprise Collective Consultations and Collective Contracts in the face of growing strikes throughout the export-oriented Pearl River Delta. The regulations, which come into effect on January 1, appear to hold employers’ feet to the fire by requiring them to hold talks with workers over matters including wages and working hours. But while an early version upheld workers’ right to strike if talks with employers failed, the final version not only removed that clause – it inserted one that effectively banned workers from striking altogether.

“The law doesn’t make anything better,” said Gallagher. She said the regulations were a reaction to strikes that resulted from the ACFTU’s inability to bargain on behalf of workers that avoided the core issue of a lack of independent unions. “It will probably further increase repression of strike activity, and probably will also further exacerbate labor tensions.”

As strikes spread across the nation to even central and western regions, the coastal province long home to more such protests than any other appears to be closing the door on the possibility of a more inclusive approach to labor. But with worker numbering fewer and organizing better, that might not be enough to stop them from busting it down.

Source: China Labor Bulletin Note: Not all strike reports compiled by China Labor Bulletin independently verified; figures from October 26, 2014

MAINLAND STRIKE MAP

China Economic Review | November 2014

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S P E C I A L R E P O R T: B U D D H I S T B U S I N E S S

Catch, sell, release, repeat With Buddhism’s rebirth on the mainland a growing number of believers are buying animals to set free for good karma, but no one seems to know just how many animals are being caught, bought, released and recaptured

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China Economic Review | November 2014

A

smile cracks across the man’s weather-beaten face when asked if the turtles he sells are for fangsheng, or “life release”.

Hopping up from his seat beside the ancient and bustling Fangsheng Bridge in Zhujiajiao water town, near Shanghai, he launches into a quick rundown of prices: Just RMB15 to set one of the smaller turtles free and rack up a bit of good karma; up to RMB180 for the biggest ones. The red-eared sliders – a highly invasive North American species – are cheaper, he notes helpfully.

As he spoke far more animals in the township were being fried, stewed, steamed or grilled than set free. However, the resurgence of Buddhism on the mainland in recent decades has prompted a widespread return of the life release ceremony, and of religious organizations dedicated to freeing creatures destined for dinner plates, throughout China.

The ceremony, commonly held to originate from India and practiced in China for centuries, has become a regular business for many in China looking to make a quick yuan. But the economic and ecological consequences of releasing wild animals from a globalized supply chain into China’s fields, forests and lakes may be far greater than one man selling turtles out of buckets suggests.

Fangsheng ceremonies are intended as a means of accruing good karma for oneself or one’s relatives, living or dead. While practiced mainly in Taiwan and Hong Kong until late last century, religion’s resurgence on the mainland has popularized the practice among the growing mass of newly devout Buddhists. However noble the intention, an industry has sprung up in response to the growing demand for animals to release, and has resulted in more animals being captured in order to satiate believers’ desire to do good deeds.

An informal compilation of fangsheng organizations on the mainland from 2010 listed 281 of these groups located around the country in every

municipality, province or region (except for Tibet), including six in Beijing, 16 in Shanghai, 28 in Jiangsu and 52 in Guangdong. And that’s only groups with information online – those that don’t have a website or contact info online remain unknown in size and number, as do individuals who buy and release animals on their own. The potential market for fangsheng on the mainland numbers in the hundreds of millions: A 2010 pew survey showed that about 18% of the country’s population, or 244 million people, identified as Buddhist.

The price ranges gathered during a recent reporting expedition by a Jilin-based journalist with the paper New Culture Times are instructive: In the city’s East Market, an entire sub-industry is devoted to selling animals exclusively for release. During the reporter’s visit shops were selling snakes, turtles, frogs and more for release. Non-venomous songhua snakes ran customers a steep RMB100, but business was brisk.

“The ones we sell are all for use in fangsheng,” one shop’s owner told the journalist. “If you’re doing fangsheng, then I can sell to you.” He explained the snakes had all been captured in the nearby mountains, keeping startup capital to a minimum.

A rundown of prices for birds sold for release by the same journalist gives a glimpse into the easy profit offered to industrious trappers by the ceremony: One small bird goes for RMB2-10, with some fetching even more. That’s RMB100 of returns on a day’s catch of 50 birds. During the migration seasons from midMarch to early June and mid-July to mid-November, bird catchers can rack up an income of 10,000 RMB, if not more. With 100 bird catchers working together profits can reach RMB500,000, according to the New Culture Times report. All to sell for release back into the wild, where they can be caught again and sold for release to one of the seven fangsheng groups in Jilin.

Credit: Hudson Lockett

S P E C I A L R E P O R T: B U D D H I S T B U S I N E S S

BY THE BUCKET: A mix of turtle species domestic and foreign on sale for the devout to release illustrates the influence of globalization on a practice that previously bought local

When done on a large scale, a release can entail a single Buddhist congregation spending over a hundred thousand yuan on a single ceremony. On its last trip out to the countryside on October 12, the Beijing Fangsheng Association spent a total of RMB144,730 (US$23,605) on the animals released into a nearby lake, including fish, crabs, shrimp, and various clams and other mussels. That’s just in one day, and the group releases animals once or twice a month, year-round. But those numbers are dwarfed by the long-term, continuous releases of groups like the Guangdong Fangsheng Association, which claims to have released a total of over 100 million animals since 1989. No doubt many of those came from bags full of tiny fish (yumiao in Mandarin) that come relatively cheap and can be bought wholesale; in a January ceremony the group released 200,000 of them into a tributary of the Han River which runs through the city of Meizhou, according to its website.

But beyond such small fry the group also released over RMB200,000 (roughly US$32,600) worth of other fish species including carp and loach on the same day.

In the early 20th Century and those prior, animals released in the greater China region might have been

In Taiwan alone one conservation group estimated that 200 million animals worth a total of roughly US$6.56 million were released by religious groups on the island during one 18-month period relatively few in number, and more likely to be sourced from nearby, as demonstrated by one account from 1930s Beijing: When religious festivals rolled around each year, some beggars would sell water snakes to devout old ladies for release, then recapture them for resale the next day. But globalization has introduced a variety of new species such as redeared sliders and North American bullfrogs in staggering quantities to locales throughout the country – though no knows exactly how many.

Xu Haigen, a prominent researcher of invasive species at the Ministry of Environmental Protection’s Nanjing Institute of Environmen-

tal Sciences, said that to his knowledge no comprehensive studies had been carried out on the role of animal release in introducing invasive species to the mainland, nor were there any on the scope and value of the industry to date. In Taiwan alone, where the practice has been subject to more open debate and research, the Environment and Animal Society of Taiwan estimated that 200 million animals worth a total of about NT$200 million (US$6.56 million) were released by religious groups on the island during an 18-month period from 2003-2004.

Many of the growing number of accounts of mainland life release come from local Chinese papers, which together with foreign media often focus on the more outrageous examples, such as one incident from 2012 when a Buddhist group released thousands of poisonous snakes into the village of Miao Erdong in Hebei province – which then had to set about the grisly extermination of the entire slithering swarm. The ceremony’s increasing popularity has prompted calls for “scientific fangsheng” from some officials and scientists, often in reference to not letting dangerous or diseased creatures loose near human settlements.

Today in China few even seem to understand the history of the practice, or how quickly criticism arose over its obvious contradictions. While popularly believed to come from Indian Buddhist tradition, the first recorded instance of an animal release ceremony comes from the 3rd century Daoist text, the Liezi, according to a 2010 study of fangsheng's history in the journal Contemporary Buddhism. The tome describes not only the delight of an elderat the release of doves by townsfolk as a gesture of kindness, but also a visitor’s rebuttal: “The people know you wish to release them, so they vie with each other to catch them, and many of the doves die. If you wish to keep them alive, it would be better to forbid the people to catch them,” the traveler says. “When you release doves after catching them, the kindness does not make up for the mistake.”

The elder’s reply? “You are right.”

China Economic Review | November 2014

23

THE WAR ON POL LUTION

Airmageddon again Beijing’s go-to anti-pollution measures can’t hope to overcome smog’s regional roots

24

China Economic Review | November 2014

to Inner Mongolia, Tianjin, Hebei, Shanxi and Shandong. That was a key measure, according to a report from Time, because research had shown that even if Beijing could eliminate all locally-produced pollution, that produced in the surrounding environs could still push particulate levels to dangerous highs. The result wasn’t limited to just an increase in blue-sky days: a study published in the journal Environmental Health Perspectives found that the measures put in place during the Games, if continued, would cut the lifetime risk of lung cancer from certain inhaled pollutants in half. A study by the National Center for Atmospheric Research in the US found the measures had also yielded a large cut in CO2, in the amount of tens of thousands of tons per day – a reduction the authors deemed potentially significant on a global scale in combating climate change.

But Hung Wing Tat, an associate professor of environmental and civil engineering at Hong Kong Polytechnic University, said that the 2008 measures were “basically impossible” to repeat now. “You can’t close down all the factories,” Hung said, adding that other measures adopted before the Olympics, like burning gas instead of coal, had also fallen by the wayside after the Games concluded. That made levels of pollution like those seen in

Credit: imaginechina

I

n early October Beijing took measures to curb a dense shroud of pollution that had settled on the city ahead of an APEC meeting, including limiting the number of cars on the roads and planned to send public employees home for a six-day holiday. Whether these would have had any real effect is difficult to know thanks to a strong wind that blew in, sweeping the haze away. While some measures were announced in surrounding regions to combat the smog, the thrust of the move remained local to the capital.

Though later expanded to surrounding provinces when officials became desperate, Beijing’s standard reaction to waves of haze generally ignores the regional roots and scope of China’s chronic air pollution. Officials have declared a “war on pollution” before, but based on the haze that regularly descends on the capital, the battle is not gong well, at least as far as those actually living amid the smog are concerned. The current piecemeal approach to the problem appears to be insufficient to put a stop to recurrent “airpocalypses”.

China has launched effective antipollution drives before: Prior to the 2008 Olympics, Beijing and much of northeastern China saw unprecedented measures to curb air pollution, with a large number of factories and power plants in and around the city being shut down for the duration of the Games. The government ordered work stoppages at construction sites, chemical plants, cement manufacturers and mines in the month before the opening ceremony, and ultimately spent US$17.3 billion to improve air quality for the big event. But the haze still persisted and authorities banned high-polluting vehicles from entering the city center, and imposed alternateday bans on cars with even, then oddnumbered license plates.

In 2008, the drive also extended

Beijing earlier this month unavoidable, he said.

Measures taken at the regional level have indeed been ineffective, and the Ministry of Environment criticized administrators in Hubei province for their lackluster enforcement of measures after smog reached emergency levels. Under such a worst-case scenario, there are contingency measures in place to ensure that sensitive groups in Beijing, including children, aren’t exposed unnecessarily to high levels of pollution. When the municipal government forecasts three consecutive days of severe air pollution it is supposed to activate a red warning, canceling classes for children from kindergarten to high school levels. That didn’t happen this month – nor has it ever, which suggests flaws in the current prediction process.

Regulators lack tools to enforce compliance, but a growing number of tools capable of forecasting haze and pinpointing polluters are publicly available in China. Municipal readings in China often report lower levels than those released by foreign embassies and consulates, but a civilian effort known as the Short Horse Forecast is independently predicting levels for the next five days nationwide. Meanwhile, a new iPhone app allows users to pinpoint on a map some of the major polluters in a given region of China, clearing up some of the mystery as to who is responsible for at least part of the pollution.

Rigorous enforcement of the rules on the books to prevent groups most sensitive to pollution from being exposed also makes sense from an economic perspective: The health care cost of treating future lung cancer cases could be slashed considerably.

Until such large-scale health problems begin to manifest, the scope of official response in China’s north may remain myopically focused on the local even as the whole region suffers.

T H E WA R O N P O V E R T Y

Daunting success Poverty in China is now smaller than ever before, but tougher as well

I

n an October retrospective on poverty alleviation in China, Xinhua claimed the country had lifted 660 million people out of poverty in the years from 1978-2010, with 80 million remaining impoverished today. The figure, which the agency said was in line with international standards, is an increase over previous claims. It may also be more accurate.

The standard in China for determining whether a rural household is poor was raised in 2011 to an annual per capita income of RMB2,300 by the state council’s leading group in charge of poverty alleviation and development – an amount equivalent to just over US$1 a day. In its last report on poverty in China from 2009, the World Bank called the country’s rural poverty line excessively rigid. However, Ulrich Schmitt, the bank’s program leader for sustainability and resilience, said that is largely no longer the case.

“There’s a pretty consistent story between what the government has and what our figures tell us,” Schmitt said. By revising its official standard in late 2011, Beijing added 128 million people to the ranks of China’s officially recognized poor. In 2008, the number of poor based on the World Bank’s standard of US$1.25 a day stood at 173 million. By that same standard, though, 662 million had actually moved out of poverty, Schmitt said, adding that Xinhua’s figure of about 80 million still in poverty also seemed about right in light of substantial progress in poverty reduction over the last five years.

However, he added that the challenges facing China outlined by the bank in 2009 had remained essentially the same. For example, the remaining poor have become increasingly dispersed, and economic growth has become less effective in reducing poverty. In some areas the need for action had become more urgent, he said, as in the case of rural-urban integration.

In 2008, the number of poor based on the World Bank’s standard of US$1.25 a day stood at 173 million. By that standard, 662 million have actually moved out of poverty With China still in the first third of its latest decade-long anti-poverty plan, the route out of impoverishment for many from the countryside remains uncertain.

One of the two major additions in the latest plan, adopted in 2011, is the targeting of regional poverty on top of already recognized poor counties and villages. The effectiveness of this new regional layer of organization is hard to evaluate only three years into its implementation. This lack of information is further compounded by the difficulty of assessing per capita income for families with members who have become migrant workers.

“I think what these figures really mask is enormous migration and the role of remittances from people that work off the farm in further away provinces,” Schmitt said. How much of a family’s income is generated in urban and coastal areas and then sent back to members who remain in an area officially classified as poor may not be captured by current collection methods, and increased migration within provinces and counties has further complicated the picture as more move to find jobs away from (but still closer) to home.

There is also tension in the latest phase of anti-poverty policy thanks to the push to urbanize rural residents.

People from the most impoverished

counties are being moved from the land they occupy, which itself is ostensibly owned by the collective in which they are all members. Not all are willing to be uprooted, and it’s not clear if the strategy will help push people out of poverty. The move also seems set to weaken the collective land system in the countryside which some are loathe to see undone.

While the collective system currently keeps rural Chinese from selling their plots off and is subject to land grabs from hungry officials (see our full report on hukou and land reform), it seems to have helped act as an unemployment buffer in the wake of the 2008 financial crisis. When foreign demand dropped and factory output slowed, many laid-off migrant workers in China – particularly in Guangdong province – returned to their plots in the countryside when they couldn’t find work. In so doing they found interim employment and may have helped dilute dissatisfaction that could’ve congregated and led to greater unrest.

However, land de-collectivization could help spur the integration of many people into cities. It could also, Schmitt suggested, help lead to the establishment of farmer cooperatives able to achieve a greater scale of production that is impossible when so many migrant workers are still holding on to small, individual plots as a sort of insurance.

If fairly implemented, professional cooperatives could free farmers from the land while also granting them a stake in the fruits of their former fields. But they would need some sort of social security system waiting for them, which current policy discourages by giving the most prosperous cities incentive to bar the door once their populations reach a certain size.

As with many issues central to China’s future, progress on one front demands just as much on many others.

China Economic Review | November 2014

25

Q&A : COAL-BED METHANE

Angling upstream With coal-bed methane garnering more attention and investment in China, CLSA’s Simon Powell sits down to dispel some of the hype and explain how the sector will likely unfold in the years ahead T what extent is coalTo b bed methane a viable iindustry in China on iits own? Is what we’re sseeing now mostly due tto outside support, say ffrom the government, or is it motivated more o by an urge to get away b ffrom other energy Simon Powell ssources that are now maybe more problemm atic, like coal?

Coal-bed methane in China was never going to be easy. And people who thought it was the same kind of coalbed methane that we saw in America or Australia were sadly mistaken from an investor point of view. Coal-bed methane in China is pretty difficult.

The coal is extremely wet, and the porosity is really low. And what you find is that for a lot of coal-bed methane producers, all they produce for the first few years is water. So there’s been significant amounts of de-watering, and as far as I can see very few coal-bed methane producers have produced any meaningful amounts of coal-bed methane.

So what’s been behind the drive of recent years?

Well I think there’s a few things.

One, when you look at China’s overall demand for gas versus its ability to supply that gas domestically, there’s a shortfall. So that’s what the push has been, and that’s why they put in subsidies for both shale and coal-bed methane. But those subsidies haven’t resulted in huge amounts of volume.

So are there any dominant forces in the coal-bed methane industry right now in China?

Well PetroChina is probably the biggest player. But they treat it not as a commercial business, they treat it as 26

China Economic Review | November 2014

almost research and development, so they’re producing very little volume.

PetroChina’s probably the most dominant, then really followed by plenty of independents.

Provided that the industry ever actually finds its feet, is there an opportunity there for more private players than in other energy sectors?

Yes, there is. At the moment in fact, in upstream gas it’s in coal-bed methane where independent, non-SOE players can currently play. But let’s step back: The coal-bed methane industry in China has had a very long history.

Some of the earliest production-sharing contracts that were offered were taken up by Enron, that’s how old the industry is. And many – like Enron, Texaco, ConocoPhillips – geologically and financially it was very hard to make any kind of satisfactory returns.

I think that it’s quite telling how the majors couldn’t make it work. The Chinese have been keen to absorb technology from Western companies in terms of lateral drilling and inseam drilling, and so they opened up production sharing contracts (PSCs) to independent companies to encourage that technology to come in. And that’s what’s been happening.

So there are listed companies like Green Dragon Gas, or Far East Energy, or Sino Gas and Energy, or Sino Oil and Gas, and there are unlisted companies like Asian-American gas.

You know, the reserves from the coalbed methane point of view are quite large, so the prospective resource is large. So the size of the prize for the Chinese government was very large, and remains very large. The challenge is just that the technology and the geology makes monetizing that, or actually releasing that gas very difficult.

That sort of raises two main ques-

tions: One, how suited is China’s geography to practical coal-bed methane, and what are the key technologies, or maybe workforce experience, that China lacks to take advantage of it?

Well I think, answering your second question – and it applies to shale as much as it does to coal-bed methane – one of the things that made the shale gas and coal-bed methane industries move so quickly in North America and to some extent in Australia, was a very vibrant oilfield service industry. In other words, if I’m a little independent player and I don’t own my own rigs, I want to be able to ring someone up and subcontract them to come in and start drilling holes for me, right? We don’t have a vibrant mom and pop industry that can drill holes the way that we had in North America. So, I think that’s one of the things that’s holding them back a little bit. I think as well, even though natural gas prices have risen and we’re now at six or seven dollars an Mcf [thousand cubic feet] at the wellhead, we potentially need to see more gas price increases to make coal-bed methane more economically viable.

Until the mid-90s I believe natural gas was shrinking as an energy source, but it hit 5% of the total at the end of 2011. What kind of portion of total energy use for China could you envision it eventually accounting for?

Well, it’s hard to say. The best thing to do is to look at other countries. So in OECD countries, natural gas is north of 20 percent of total energy mix. The rest of Asia, it’s potentially ten percent.

So I think it would be very easy for total energy mix to be ten percent, and go higher than that. The big question is: Will China ever generate meaningful amounts of electricity from natu-

Q&A: COAL-BED METHANE

You hear about illegal coal mines, I suppose the capital needed for starting up a coal outfit and the manpower is vastly lower, and maybe the technological knowhow too.

I don’t know about technological knowhow. I think the Chinese are loathe to give up on coal as a power generation source because even though they want to improve the environment, they still have an awful lot of coal, and coal mining still employs an awful lot of people. So I think that the coal-bed methane industry has a future. It’s just a difficult future from a ‘return on capital employed’ kind of basis.

But the challenge for all these producers is to get to a stage where they’ve got scale. I think this is something else that’s very important as well – I think the original production sharing contracts that were written for coal-bed methane were really cut and pastes

from conventional gas PSCs, and coal-bed methane PSCs don’t lend themselves to those kinds of production sharing contracts. What I mean by that is a traditional natural gas PSC is designed that you spend a huge amount of money up front drilling one or two big gas wells, and then you hit the gas, and the gas flows for the next 15 years.

A coal-bed methane play you have to drill a well every 20 days, and the decline rates from coal-bed methane well are much steeper than for natural gas wells. So what it means is, if I’m a small independent player, I need to get approval to spend capital expenditure, but I don’t want to be having a meeting with my PSC partner every 10 days to try and get approval to spend money. I need to just be able to spend money as and when I like. You need a different type of PSC for coalbed methane in some ways, so I think China’s production sharing contract regimes don’t lend themselves to shale, gas, or coal-bed methane at this stage.

I also think that the question of ownership of hydrocarbons is also a difficult issue. If you ever look at a coal-bed methane PSC, it’s very prescriptive. What it will say is you’ve got the right to explore in coal seam

number nine and coal seam number 12, whereas in North America you own 1,000 acres in Wyoming or whatever, and you own everything from the grass downwards. Whereas in a Chinese context, it’s unclear whether you even own the grass. See what I mean?

So these are some of the challenges and nuisances.

What are they key factors that could influence coal-bed methane’s role in China?

I think the most important thing is to keep your eye on gas price reform.

So we’ve had two price increases in two years, we’ll get another 40 cents’ increase in July of next year, and it’s all about linking natural gas prices to oil prices, and creating a better pricing mechanism for natural gas. I think the other important thing is that of course some people are expecting an awful lot of shale gas activity, and again I think the geological challenges of shale gas activity are not to be underestimated, either. And so I think shale will be a disappointment in some ways, as coalbed methane has been. That isn’t to say that there won’t be some viable shale activity like we’re seeing in Fuling [in the Sichuan Basin] with Sinopec, but I think people need to be cautious not to expect too much.

PASSING FANCY: While Western companies initially lined up to have a crack at coal-bed methane in China, the difficulties have prompted many to pull out

China Economic Review | November 2014

Credit: imaginechina

ral gas, or from methane – you know, coal-bed methane or natural gas or shale gas. Because with coal prices having softened substantially, and gas prices having risen and electricity prices remaining flat to declining on a wholesale basis, it currently as it stands is not particularly economic to generate electricity using gas.

27

Q&A : FOREIGN ENTERPRISE

Plenty of incentive Richard Hoffman of consulting firm ECOVIS China discusses the ongoing allure of the country for new and expanding foreign enterprises

R Right now, what are tthe biggest incentives ffor a company thinkiing about expanding iinto China?

From the government F sside, there are not really new legal and tax incenn ttives to come to China rright now. And China Richard Hoffmann iis a very big market and different areas have difd ferent kinds of incentive plans, especially special economic zones that attract foreign direct investment. Here I think that one of the economic zones that really is very active is the special economic zone in Tianjin. They’re really actively attracting foreign direct investment. What they’re doing is they give certain tax incentives and provide real estate for a discounted price.

You also mentioned in your report that increasing domestic demand was also shifting China’s economy away from “merely a cheap manufacturing country.”

That’s right, yeah. Right now China has heavier labor cost and production cost, and it’s not a place to cheaply produce products anymore, it’s now a place to sell your high quality products. That’s a very big difference to five to ten years ago. I’m from Germany so, you know, in Germany there are famous cars, we produce BMWs, Mercedes, Audi and other high-end luxury cars. And China is now by far the best market to sell these luxury cars. It’s not only related to cars, I think luxury products are being widely sold in the Chinese market – it’s very attractive right now.

So what are some of the opportunities that the new shift is offering investors?

You can see an increase in the popula28

China Economic Review | November 2014

“We suggest that if you’re a small enterprise it’s better off to outsource your accounts to a company that specializes in that – that has a team which provides consistency and quality of services” tion of Chinese that have the money to buy new products and I think that if you have say a very good value product, if you have a technical product, a high value product it’s a very good market now.

Wholly foreign-owned enterprises (WFOEs) are now the most common option for foreign investment here. Which industries now have the most WFOEs, and where are entities like joint ventures still required by the government?

WFOEs are by far the most attractive vehicles for foreign investors.

You’re always 100% in control of the finances. It’s all you. In certain industries you still need a Chinese partner.

In certain industries or businesses it’s better to have one because they can bring in the network or client base that’s kind of important for you, or land or the financial power that you might need to have. In some industries it’s required. For example back to the car industry – if you’re producing cars, if you’re producing airplanes, if you’re in the education business, then a Chinese partner is required.

What are some of the problems that

WFOEs run into, both in the market and in terms of regulations, if there are any?

So first of all, you must have the right business [type], you must have the right business idea, and this must be covered by the same business [type], and secondly, the main problem we see is actually an underestimation of the capital for foreign investment. So when you set up your WFOE, you’re required to report certain capital – logistics capital, registered capital – to the government. This is the capital that you can work with in China.

However, if you run out of that capital, bringing fresh capital from overseas can be a bit tricky, a bit difficult.

The State Administration of Foreign Exchange has strict control over every foreign currency, and that’s why it’s very difficult for foreign companies to bring in more capital. It’s important to consider your cash flow in China when you start up or run a business here.

And you also describe in the report Foreign Invested Commercial Enterprises as being mostly foreign-owned with limited liability, so they’re similar to WFOEs. Could you elaborate a little on the distinction between the two?

WFOE is the general term for any business that you run by yourself – it could be a consulting company, it could be a manufacturing company, or it could be a trading company. If it’s a trading company we call it a FICE, that’s generally how it works.

However, FICE really just means it’s a trading company – a joint venture could also be a FICE You also mentioned some other requirements including a yearly audit and foreign currency inspection report, things like that. How much of a hurdle are those processes

Q&A: FOREIGN ENTERPRISE

ASPIRING TO AFFLUENCE: As wages in China get too steep for some manufacturers to stomach, more Chinese are now able to afford the kind of luxury goods they could once dream only of assembling

for smaller companies that maybe don’t have a large enough legal team on hand to have expertise?

The difficulty is, one, monthly compliance, that means you have to do the accounting and bookkeeping on a monthly basis, and this can be quite expensive for a small firm. So normally we would say if you hire one accountant, you’d better hire two, to better control over it, to have a bit of consistency. Because you never know – if one accountant is leaving you, you’ve got to have a backup. That makes it quite expensive. We suggest that if you’re a small enterprise it’s better off to outsource your accounts to a company that specializes in that, that has a team which provides consistency and quality of services. It makes it much less expensive and much better to run a company here at less cost. And secondly, the annual services required – tax record information, foreign currency inspection, etcetera – these are required and it’s something that even a small entity has to go through. It’s just one of the requirements. There’s nothing really you can do to avoid it, it’s a government requirement.

On a similar note, in 2008 the Enterprise and Income Tax Law came into effect, and I believe brought foreign enterprises under the same sort of tax scheme as domestic ones. What impact has that had on businesses here? And have there been any other tax code developments since then?

Formerly all foreign income companies only had to pay 60 percent of the corporate income tax or were fully exempted, and due to the reform of 2008 all Chinese and the foreign companies are treated equally. We all have the same tax burden. The other big difference we’ve had, starting two years ago, is the value-added tax (VAT) reform. VAT is the big reform that’s been affecting everyone running a business in China, from local companies to foreign companies, and it makes the VAT calculation a bit more complicated, more complex. However, in the end it saves you taxes. It follows the European model, and you can credit you input VAT against your output VAT, not only in the product sales but also sales in the service industry, which is quite a big advantage.

In the report you also discussed the issue of supply of skilled labor as being one of the other big issues that foreign investors face in China, and one of the pieces of advice you give is to develop your brand as an employer. Could you go a little more in depth into this, about what that entails really?

In China, generally speaking, people are very happy to work for a big brand – a big law firm, a big factory for cars or sportswear – big, international brands. So this is something that they take home to their family, and the family members can say ‘my husband,’ ‘my father,’ whoever, ‘works for Coca Cola,’ ‘BMW,’ you name it.

They’re happy, they’re proud of it.

Even if maybe their salary might not be as great as at other companies, these so-called non-branded companies that are not so well known. So this is kind of a branding issue. You have to train your team, you have to explain to them what is important in your own firm, what is the benefit of working for your company, and this helps with the loyalty of people on the staff and with avoiding high turnover.

China Economic Review | November 2014

29

PHOTO FEATURE: FACES OF YUNNAN

Far corners, up close China Unheard, a new bilingual social media project based out of Yunnan, aims to encourage cross-cultural communication by sharing stories and portraits of individuals in China. To view more profiles or contribute to a growing online gallery, visit ChinaUnheard.com or find the group on Facebook and Sina Weibo.

“In the countryside, it is expected of you as a woman to bear a child. If you don’t, people would think that you have health issues. I never wanted children, but I faced a lot of pressure from the people in my village. So right after I got married, I had a son. I have no regrets, but the first year was the hardest year of my entire life.”

Tengchong County “I’ve been coming to this temple since I was a little girl. My parents used to bring me, then I brought my children, and now my children are bringing their children. The temple is 1,100 years old... It’s even older than I am!”

Yao’an County

“I regret not trying harder in school. I used to get really good grades in middle school, but I just fooled around in high school and never went to college. My opportunities are very limited – if I’m not selling clothes, then I’m helping out at our farm. Now I make around 20,000 yuan per year to support my younger brother’s college tuition in Kunming.”

Tengchong County

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China Economic Review | November 2014

PHOTO FEATURE: FACES OF YUNNAN

“The city school system is too competitive. I want my children to attend school in the countryside so they can enjoy learning.”

Dayao County

“I sell these for one yuan per kilogram to afford candy for my grandchildren.”

Tengchong County “My dad drives a long distance bus, and my mom works far from home, so I live with my grandma. It’s hard not being able to see my dad very often, but I try to study hard so he’ll be proud of me when I do get to see him.”

Dayao County

“People of our generation believe that our kids should have the freedom to do what they want. My father wanted me to follow him into the construction industry, but I was not interested in that and decided to run a bakery. Eventually, my father supported my decision and even gave me the money to start one. I want my son to have that freedom as well.”

Tengchong County China Economic Review | November 2014

31

2014ฤ11Ꮬఓ

www.cerchinese.com

资本的回报 移动互联促变革 绿色地产开启未来

目录

ቤ਋‫ފ‬ 34 创造

35 ௡ୡ ॖෂ৺ူ 36 资本的回报

જᄌ 38 商业创意大趋势 40 移动互联促变革 42 网络金融新风尚

36

44 绿色地产开启未来

ॖෂ৺ူ ᓾ‫ۨૄࡼ۾‬

ఘᒦਪ 46 写书

创造

新观察

人类不如为自身营造诗意生存的境界 文 | 海客

34

从

某种意义上来看，人类俨然是最大

《圣经》却被刻意保存下来。大约因为前

业目的，就是根深蒂固的乌托邦思维。然

的造物者，按自身需求创作和改造

者渲染超人哲学，将人的意志放大到了近

而，诚如万维网发明人蒂姆·伯纳斯-李所

出难以计数的物质和精神产品，却又每每

乎无限，而生态危机至少有大半是因为人

说：“我们是否应该觉得，随着人类的进

受困于它们，可谓“聪明反被聪明误”。

自身的活动所致。

化，我们变得越来越聪明，越来越能控制 自然？并非如此。”此话发人深省。

大工业时代以来，科技跃升为至高无

宗教也是人造的精神现象。当罗马

上的图腾，也将一系列新困境呈现给了人

帝国的奢华无度烟消云散后，统摄中世纪

蜘蛛结网，它的天地也就在这网络

类。第一部科幻小说《弗兰肯斯坦》就描

西欧的就是宗教了。文艺复兴唤醒了沉睡

之中；人类结出了互联网的硕果，当然应

叙了科学家被自己用科学方法造出的生命

的人性，人类对自然的征服一发而不可收

该比蜘蛛更高明一些，而不应为其所困，

所害的故事。而西方一些机器人题材的科

拾。而当文明陷入重大危机时，似乎又要

将希望寄托于这张数字化大网。然而，生

幻电影也多取反乌托邦立场，演绎了被机

乞灵于宗教了。外倾与内敛总在两极间

而自由却无往而不在枷锁中（卢梭语）的

器人控制后的可怕图景。

摇摆。

人类依然无法逃脱自己所造的更大的网，

美国电影《后天》的故事是：北半球

互联网的媒介特征和虚拟性将人对

造物者被受造之物束缚甚至改造，这也许

气候骤冷，纽约被大雪掩埋，一群幸存者

于物质和精神的追求融为一体。互联网确

就是一切造物者的命运。因而，与其忙忙

躲进了图书馆，不得不以烧书取暖。当中

实深刻改变了人们的生活方式，却不可能

碌碌造物，不如为自身营造诗意生存的境

出现了耐人寻味的场景：尼采《查拉图斯

将人从生存困境中解救出来。有人转而将

界；而无论是造物还是造境，都应对生命

拉如是说》被丢入火堆，而最早的印刷版

网络当成包治百病的万灵药，不是出于商

和个体自由抱持敬畏之心。

China Economic Review | November 2014

聚焦

第十六届中国国际工业博览会在上海新国际博览中心举行

市场与产业

大幅增长。与此同时，二手车逐渐被首次

环比升幅最大，达3.6%。商铺市场内，

可穿戴设备迎来新浪潮

购车一族所接受；政府正在加大对行业销

除杭州之外，其他三城均有中高端购物中

行业内外都将2014年称为可穿戴设备元

售网络的监管力度。这些将对独立售后市

心项目入市。租赁需求保持稳定，新老项

年。在这一年，人才、资本大量涌入，可

场起到积极的作用。在此基础上，中国汽

目内均录得众多新租及新开业活动。由于

穿戴设备领域迎来了新一轮的进阶与变

车零配件制造业预计在未来五年里实现每

新入市购物中心趋于非核心区域化及近郊

革，硬件热潮、并购热潮、投资热潮频频

年20%以上的增长。尽管前景依然乐观，

化，其相对较低的租金继续拉低南京、苏

出现。谷歌、微软、苹果、三星等IT界的

但政府已经发现产能过剩是整个行业面临

州及武汉市场的平均租值。

巨头相继进入了一场从硬件到生态系统平

的潜在威胁，并从2012年年初就将其列入

台的激烈角逐，而这正预示着新一轮商业

观察对象。假冒伪劣现象随着市场的扩大

工博会展示高端装备制造

浪潮的来袭。根据市场研究公司FactSet

而增多并将继续威胁制造商的利润，这需

第十六届中国国际工业博览会在上海新国

公布的十大现金流最充裕的公司显示，其

要零配件制造商执行严格的知识产权保护

际博览中心举行。作为国内工业和装备制

中有一半是科技公司，分别是微软、谷

措施。对于国内零配件制造商而言，产品

造业大省的河北省自2006年开始已连续

歌、思科、苹果和Oracle，这五家科技

出口依然面临挑战，主要原因是缺乏技术

八次组团参加上海国际工业博览会，曾多

公司一共有2450亿美元现金。这些公司

开发实力，出口高附加值产品方面能力不

次获得优秀组织奖，多项展品荣获银奖、

均对可穿戴技术、物联网和人联网非常感

足。而人工成本上升和人民币预期升值带

铜奖，连续成为展会亮点。今年河北省再

兴趣，他们凭着雄厚的资本可以用几十亿

来的持续压力，也将继续使廉价零配件出

次组团参展，携一批具有自主产权、国

美元加入可穿戴市场。不断注入的资本，

口商面临重重挑战。

内、国际领先的展品亮相工博会，有针对 性地展示该省装备制造业的实力，打造和

使得这个领域内的人们的情绪持续高涨， 因为逐利的资本所携带的梦想为许多创业

二线城市写字楼需求稳定

树立河北“装备制造强省”形象，宣传和

者、极客、科技宅们创造了许许多多的机

高力国际第三季度华东区二线城市（包括

助力河北。本届工博会以“高端、智能、

会。这些是陈根博士在《可穿戴设备：移

南京、杭州、苏州及武汉）写字楼及商铺

绿色”为主题，展示国内外先进制造技

动互联网新浪潮》中提出的观点。

物业市场报告显示，本季内主要二线城市

术，设数控机床与金属加工展、工业自动

写字楼需求保持稳定，各市场中现有写字

化展、工业机器人展、新能源与电力电工

汽车零配件出口面临挑战

楼项目整体入驻率均有所提升，杭州和苏

展、信息与通信技术应用展、环保技术与

益普索咨询最新报告指出，去年中国新车

州有新项目入市，租金表现亦保持稳定。

设备展、节能和新能源汽车展、科技创新

销量突破2000万辆大关，新车销售将继

除杭州的平均租金因新兴区域钱江新城内

展等8个专业展，系中国工博会历史上规模

续推动汽车零配件的需求。随着过保汽车

个别项目而出现小幅下降外，其他各地市

最大、也是亚洲最大的工业博览会。工博

数量的不断增加，独立售后市场即将开始

场平均租金均录得上升。其中，武汉市场

会现场首发了一批高水平的新产品。

China Economic Review | November 2014

35

封面故事

资本的回报 揭示近期VC/PE投资活跃度加强的原因

资

本不是万能的，没有资本是万万不

上市后软银拥有阿里巴巴32.40%

最高点，投资金额已经创下季度新高水

能的，这在高成长性企业的发展历

的股权，成为最大股东；雅虎持股比例

平；退出方面，IPO依然是最主要退出方

程中表现得尤为突出。阿里巴巴以每股68

为16.3%，马云持股7.8%，蔡崇信持股

式，阿里成功上市再现投资回报神话。

美元的发行价正式在美国纽约证券交易所

3.2%，这四大股东持股比例稀释。国有

就该季度募资有所下滑，清科研究

挂牌上市，一举超越Facebook成为仅次

资本包括中投公司、中信资本和国开行。

中心分析师徐宇明认为，主要有以下两点

于谷歌的全球第二大互联网公司，背后的

从回报倍数上看，持股32.4%的软银最终

原因：第一，前两季度募资回升快速，其

VC/PE功不可没。从一家只有几十名员工

获得433.97倍投资回报倍数。其他投资机

中外资机构募资步伐加快具有较大推动作

的小企业，发展到现在的达摩五指，即诚

构，银湖获得12.43倍投资回报倍数，云

用，而三季度外资机构募资活跃度有所下

信、电子市场、搜索、支付和软件，每次

峰基金、中投、博裕资本、中信资本、国

降，且募集基金金额相对较小，影响了该

飞跃除了马云团队的不断创新，资本的支

开金融投资回报倍数在1-4倍之间，淡马

季度的募资情况；第二，创业投资相对投

持和运作在背后同样起着关键作用。资本

锡持股比例仅有0.1%，获得0.29倍投资回

资周期较长，在其他资本市场不警惕的时

的注入为创新企业的健康成长提供了必需

报。从2000年软银注资到今年阿里巴巴美

期投资者选择投资该种产品的欲望较强，

的营养。

国上市创全球最大一次IPO，软银用耐心

而受中国其他资本市场复苏迹象明显的影

换回400余倍的投资回报率。

响，例如A股市场牛市迹象展现，引起部

阿里巴巴经历了四轮VC/PE的注资 成长为当今中国互联网行业的巨头之一。 清科研究中心分析师陈斐具体分析如下：

分境内投资者关注，部分投资者转变投资

VC进入高潮

策略重新配置资产，是造成本土创投机构

第一轮投资，1999年10月，由高盛牵头

清科研究中心数据显示，今年第三

联合美国、亚洲、欧洲一流的基金公司汇

季度中国创业投资市场已经明显进入快速

从近期创业投资市场氛围以及从第

亚、新加坡科技发展基金、Investor

募集人民币基金有所下滑的原因之一。

AB

回升期，募资方面，较第二季度募资有所

三季度中国创业投资市场的投资数据分

和富达的参与，向阿里巴巴投资总计500

回调，外资机构募资活跃度下滑；投资方

析，徐宇明发现创业投资市场进入了高潮

万美元。第二轮投资，阿里巴巴与软银结

面，再创历史新高，投资活跃度接近历史

状态，机构项目竞争激烈，投资案例数飙

缘。软银的进入，在阿里巴巴发展道路 上写下了浓墨重彩的一笔。正是这个“ 纽约证交所 NASDAQ, 1, 6%

大玩家”在资金及其它方面全力支持马

法兰克福证券交易所 1, 6%

云，才使得阿里巴巴能够发展到今天的规 模。2000年1月18日，软银向阿里巴巴注 资2000万美元。第三轮投资，发生在互联 网危机的寒风刚刚刮过之后，国内一大批 网站倒下，阿里巴巴此时为了扩展业务急 需资金。在2002年2月引入战略投资者日 本亚洲投资公司，投入500万美元。第四

港交所 3, 19%

轮投资，2004年2月18日，包括软银、富 达、GGV和新加坡科技发展基金在内的4 家基金共向阿里巴巴投资8200万美元，成 就了中国互联网行业最大的私募投资。到

内地资本市场 11, 69%

第四轮的投资除了GGV是新加入的投资机 构之外，其它3家都是阿里巴巴前三轮私 募中已经入股的老股东。与第二轮融资一 样，这次牵头人还是软银。

36

China Economic Review | November 2014

私募通 2014.9

资本的回报

升，项目估值飞涨等都直观显示出目前创 投市场的火热程度，尤其是互联网和电信 增值服务行业。 第三季度阿里巴巴成功在美上市无 疑成为了创业投资市场上最大投资退出交 易。徐宇明认为，阿里上市不仅为软银、 银湖投资、云锋基金等知名投资机构带来 高额的投资退出回报，也在一定程度上助 推了又一波互联网投资热潮的兴起。

PE募投大增 清科集团旗下私募通统计，今年第三 季度完成募集或首期完成募集的基金共计 88支，与上半年总数基本持平；而披露募 资金额的85支基金共募集到位192.27亿 美元，大幅超过去年同期水平，甚至超过 今年上半年的总和。PE机构加强募资的同 时，国资背景大型产业基金的设立更加频 繁。第三季度中国私募股权投资市场共计 发生213起投资案例，披露投资金额175 起，投资案例共计投资117.48亿美元，投 资案例数同比增长22.4%，涉及投资金额 同比增长112.8%，平均投资规模同比上 涨11.9%，反映出一定的资产价格上涨趋 势。 清科研究中心分析师苗旺春分析，受

今年是中概股在美国上市的大年

益于国资改革和互联网金融领域热度的提 升，金融行业的投资活跃度提升明显，尤

关的股票。今年已成为中概股在美国上市

企业选择海外上市的主要原因是海外上市

其是国资改革过程中，由于涉及投资金额

的大年，也是自2010年以来最好的一年，

门槛相对较低，海外资本市场能够允许尚

普遍较大，使得金融行业本季度的投资总

此前已经有11家中概股企业登陆美股市

未盈利但是潜力巨大的企业进入，同时海

金额跃升第一，大幅超过投资总额排名第

场，其中互联网、电商等科技类公司占多

外资本市场体系较为完善，有利于这类企

二的食品&饮料行业。

数。陈斐看到，类似阿里巴巴集团这样的

业的发展。

第三季度共发生56笔退出案例，其

大型中国互联网企业，经营时间较长，有

赴海外上市的互联网和科技类公司多

中通过IPO方式实现退出的案例有40笔，

较好的业绩，又有较高知名度，无论是股

数有较大发展，例如腾讯、百度、网易、

通过并购方式实现退出的案例12笔，股权

市低迷还是火爆期，在任何市场都会受到

搜狐、新浪等，这些互联网公司在中国市

转让和股权回购分别有3笔和1笔。本季度

投资者欢迎，也将提高市场对中概股的关

场都属于业内的龙头企业。不过，阿里巴

IPO退出中主要以香港市场退出为主，共

注度。如果阿里巴巴股票在接下来表现现

巴在美国的上市，也引发了创业板等相关

计19笔案例，其次为上交所的10笔，之后

继续良好，将会有更多公司受到鼓舞而考

部门的深思。今年9月1日，证监会负责

是纽交所、深圳创业板和中小板。本季度

虑上市。

人明确提出要继续壮大中小板，加快创业

中国赴海外上市的企业所处的行业主

板改革，创业板或将对未来一些尚未盈利

要集中于互联网和科技领域，均属于战略

但是发展潜力较大的互联网科技类公司发

性新兴行业，并且也是相关行业高速发展

生改变，这类公司或将也有机会登陆创业

的阶段，这类企业的风险较大，多数在发

板，增加国内创业板块活力。可以预计，

阿里巴巴上市后，投资者对中概股市

展初期难以盈利，但是具有很强的增长潜

这将为上市公司背后的资本带来巨大的退

场的关注度进一步提高，特别是与阿里相

力。清科研究中心分析师陈斐判断，这类

出回报。

通过境外上市，尤其是美国市场实现退出 的案例，回报水平略高于境内市场。

回报刺激上市

China Economic Review | November 2014

37

话题

商业创意大趋势 商业创意借助移动互联网和大数据更上一层楼

随中国经济的腾飞，商业创意的作

伴

外媒体都在说“PC已死”，甚至还有人

仿。“我觉得创新最重要的一个本质必须

用日益凸显，而商业创意与移动互

说“互联网已死，APP当道”。很多人如

要引起客户心理的共鸣，并不是以卖商品

联网和大数据的融合将成为大趋势。何谓

果去掉写PPT与查资料和收发E-mail，大

为主。” 优衣库大中华区首席市场官吴品

商业创意？简而言之是指能实现商业价值

部分事情可能都在移动设备（手机或平板

慧说道。优衣库虽然是零售业，但是在过

的创意。往往由企业或者相关机构推动，

电脑）上完成，如购物、浏览新闻和收看

去很成功的操作艺术是，不仅提供很多创

通过内部孵化或者外部获取，从而实现商

视频等。

新的布料、材质产品给顾客，而是包括在

业价值。商业创意的理论是由金投赏创始 人暨总架构师贺欣浩率先提出的。

新浪首席策划师吴俊德表示，2015

移动数据库，优衣库是少数在业内比较领

年很多事情会产生改变，包括PC与Mobil

先的。优衣库的概念就是，食与衣是人很

未来企业CMO会发现要达到销量和

的整合；未来新浪会做的事情不只是做移

重要的部分，所以就开发出APP，引起了

业绩的目标，很多时候不仅是产品或营销

动而已，而是进行跨PC与Mobil的整合。

业界的共鸣。她说最近在推出一个创新项

问题，而是两者的结合。商业创意的理论

平台整合很有必要。新浪未来不只是单纯

目，让消费者对任何有兴趣的产品，可以

结合了整体的预算、产品和营销。营销就

的信息提供方，而是要做到电影的发行、

使用手机查阅到想要知道的信息，包括商

是流量，能够快速将流量带来体验产品，

预售，甚至是合资的投拍，往后要做到售

品的面料、材质，明星的代言。创新可能

但流量上去后应有产品的承接，这就是产

票，包括衍生商品的合作。新浪未来的变

对很多人而言是理论性的，而吴品慧觉得

品与营销创意之间的关系。在近日举行的

化是要速度与数量，最好信息比谁都快，

最重要的意义就是创新必须要贴近顾客的

2014年第七届金投赏国际创意节上贺欣浩

比谁都多，这是媒体最基本的态度。当达

生活，想其所未想。

发表了上述观点。

到一定程度，必须要有技术，能够分析消 费者做定向投放。再就是整合产品。

创新赢共鸣

不能因为要创新而创新，首先要考 虑到创新的目的，实际上是目的决定了手

创新是企业的生命力所在。过去几

段。华为公司中国地区部消费者业务CEO

今年之前大部分人都在将PC说成是

年在服装零售业异军突起的优衣库有很多

杨柘特别强调这一点。他认为，是不是真

即将消失甚至是消亡的媒介，包括很多国

创新的想法，还开拓了很多模式让业界模

的是创新，不是看自己怎么判断，而是要 角色互换，要知道目标人群怎么看。当目 标人群认为是创新，才会去创新。 过去十几年由于互联网数字媒体的 兴起，导致媒介产生了巨大变化，冲击到 电视、报纸、杂志，不仅是形态改变，内 容编纂方式也在改变。从商品和营销角度 来看，吴品慧觉得最主要还是与顾客的关 系，其实是一种价值观的认同。媒体最重 要的是找到共鸣点。媒体的角色是应该将 共同的价值与故事放大，并基于不同的平 台特性发挥优点。对于品牌来讲，怎样去 创造真善美才是重要的。

品牌即态度 未来品牌在做选择的时候到底怎么 才能抓住每个人的耳朵和心，就是要有态 度。网易根据很多重要媒体平台的网络数 第七届金投赏国际创意节

38

China Economic Review | November 2014

据得出这样的结论。

话题

能的私人助理。在移动设备里，会随时随 地提醒即将发生在周边的感兴趣的事情， 这种技术革命性的变化会对营销产生非常 深刻的影响。他觉得这是广告主的终极梦 想。 业内人士认为，当今时代需要的就是 种个性化的营销，能够一对一的对消费者 进行最精准的沟通，这种技术的变革给广 告传播带来了很重要的机会。

世界零距离 金投赏商业创意奖最核心的贡献就是 突破了很多以往广告奖、营销奖的局限。 金投赏秉持创立以来倡导的“以市场量化 创意”的评审标准，表彰在亚洲范围内最 优秀的商业创意作品。作为亚洲领域发展 最快、规模最大、参赛作品质量最高的奖 项之一，金投赏是成立于中国的全球首个 贺欣浩畅谈商业创意的价值

商业创意奖，并逐步加快了迈向世界的步 伐。据专业人士推测，在2018年前，金投

2010年网易提出“要做有态度的门 户网站”，新闻、财经、科技、体育、娱

大数据技术的发展，会解放大脑，彻底改

赏将从注册规模上成为与德国RedDot、

变传统生活方式。

英国D&AD、法国CannesLions、美国

乐等都推出了有态度的相关内容，也打造

很多消费者都有这样的经验，街上看

CLIO所比肩的创意奖。而普华永道会计师

了一系列有深度的原创栏目。2012年开始

到一款漂亮的裙子或者鞋子，会想这个款

事务所作为其独立计票机构，也最大程度

做网易有态度的对外宣传和推广，从那时

式是什么样的，哪里可以买到的，如果将

上提升了金投赏的专业性、公正性和权威

候开始“有态度”也正式成为网易的一个

陌生人拦下来问可能很不好意思。百度副

性。作为开幕影片，《商业创意在中国》

品牌定位。为什么会选择这个词？网易门

总裁曾良介绍，百度开发了一个新产品，

不仅推进了中国文化创意产业的国际化进

户市场部总经理李安表示，“态度”在营

可以将过去的搜购变成看购，属于智慧购

程，而且为世界创造了“零距离”接触中

销中的作用应该发挥的更大。所以今年也

物。在推出这款概念产品以后，一家零售

国商业创意优秀作品的契机。这部英语纪

推出了“态度营销”这个新的理念。因为

业巨头立刻要来全面拥抱。食品安全是让

录片由贺欣浩导演、爱奇艺出品发行，展

只有不断的认知和了解用户，才能生产出

大家非常头疼的问题，都恐怕地沟油的危

现了中国企业在商业创意领域从产品设计

更加满足他们需求，能够引发他们更多共

害。百度最近也开发了一款智能设备，可

到品牌营销的实力，实地拍摄了一系列中

鸣的好的内容和优秀的服务，真正成为有

以有效鉴定地沟油。智慧驾驶或者说无人

国优秀企业，记录了他们在全球化的进程

态度的媒体。

驾驶的汽车已经在测试。今后输入目的地

中所取得的成绩。

作为品牌方，更多的是如何去把握

汽车可以自动到达。医疗是另外一个被智

在商业创意奖走向全球的过程中，贺

年轻人的喜好，把握他们的习惯和他态

慧重新定义的产业。百度目前在北京四个

欣浩认为面临着巨大挑战，因为人们普遍

度。“因为我们始终相信消费者喝的不仅

区建立了医疗中心，发布智能血压计、血

感觉中国虽然已是经济大国，但还不是创

仅是一杯啤酒，更多的是他们情绪的分

糖仪等可穿戴设备。采集到的个人数据上

意强国。尤其在将中国创意标准输出到全

享。”青岛啤酒品牌管理部副总经理马捷

传到云端，通过大数据分析，能够追踪长

球时，遇到了无数的挑战，因为不容易被

说道。

期的健康走势，提出潜在的威胁和预警措

接受。但奖项创办者相信，金投赏肩负着

施。

向全球化传播的使命，不仅代表了大中华

智能新生活

微软近期推出了私人助理“小娜”智

优秀的商业创意，也将东方创意标准带向

工业革命解放了人的双手，到了后信

能系统，给办公族带来了惊喜。微软MSN

世界，有望成为在世界范围内具有影响力

息时代，先进的技术，如智能硬件设备，

（中国）总经理刘振宇表示，具有人工智

和地位的标杆性创意奖。

China Economic Review | November 2014

39

话题

移动互联促变革 微信企业号彰显了移动互联促进企业转型发展的力量

类正生活在新技术风起云涌的大时

人

留了用户在PC端的使用习惯，又快速实现

护，客户端体验跟随微信一起升级。安全

代，所处的经济以及社会环境正在

了企业应用的移动化。第二，对于IT能力

风险低：微信通过自身架构与安全规范，

经历深刻的变革。移动、社交、云计算、

较弱的中小企业，开通企业号后，也可以

保障用户与企业间的通信不被窃听或篡

大数据等新兴的信息技术激发了意识形

直接利用微信及企业号的基础能力，加强

改。

态、需求层次以及消费观念的改变。如果

员工的沟通与协同，提升企业文化建设、

说微信公众号正在改变人们的生活方式，

公告通知、知识管理等各方面的能力。

那么微信企业号也将改变人们的工作方 式。未来是属于移动互联的时代。

总体高效益

企业号作为企业IT移动化解决方案，

企业号总体应用效益很高，可以大幅

相比企业自己开发APP具有明显的优势。

提高企业员工的工作效率，降低企业沟通

微信这款移动应用产品自推出至今已

对接微信企业号的优势如下：开发成本较

成本和事件延迟处理的损失；大幅提升企

经拥有8亿的庞大用户群。腾讯科技继微信

低，仅需要按照企业号的标准API与现有

业服务水平，提高客户满意度；帮助企业

服务号、微信公众号后，又开发了出微信

系统进行对接。实施难度小。用户无需安

适合自己发展的用户、经销商、供应商及

企业号（微云通企业应用平台），定位为

装，用微信扫码关注即可使用。活跃度

其他商业伙伴的生态圈。

为企业办公，主要是针对企业进行管理的

高，用户在玩微信时，随手处理企业号消

移动优先：通过沟通的移动化，让企

平台，企业号将在移动互联网上，为企业

息。与微信的使用习惯一致，几乎无需学

业的人与人之间沟通协作更加快速；通过

提供对内部员工的管理、沟通与服务。

习。基于微信海量运营平台，质量高可用

业务移动化，让人与业务之间更加高效；

性。维护成本较低。接口层面企业自行维

通过服务的移动化，让企业的客户能够更

优势更明显 由腾讯企业产品上海服务中心（易研 网络、畅服科技）承办的“移动互联网促 进企业转型发展专题研讨暨腾讯企业产品 交流会”近日在上海举办，吸引了众多企 业管理者参会。活动从演讲到展台演示， 全程使用移动端展示，让与会者切身体会 移动互联带来的工作方式的革命。 “我们的管理原则从上世纪的以流 程为本，到现在的以人为本，最终在今天 这样一个移动互联网的时代走到了以心 为本，我们正在亲历全新的工作方式的革 命，企业号是微信为企业客户提供的移动 应用入口。它帮助企业建立员工、上下游 供应链与企业IT系统间的连接。利用企业 号，企业或第三方合作伙伴可以帮助企业 快速、低成本的实现高质量的移动轻应 用，实现生产、管理、协作、运营的移动 化。”腾讯科技企业微信产品经理王琼女 士对微信企业号作了介绍和展示。 企业号的优势体现在如下几个方面： 第一，对于已经建设了IT系统的大企业， 可以直接将现有IT系统接入企业号，既保

40

China Economic Review | November 2014

腾讯科技企业微信产品经理王琼女士对微信企业号做了介绍和展示

话题

加快速感受到企业的服务。 连接一切：企业号可以建立企业任何

系统与机制、企业号应用等多个层面做了 全方位的保障。

内部IT系统或硬件物理设备与员工微信的 连接，实现企业系统的移动化的同时，实

实时量化的考核体系。 其三，连接内外、创新服务的施耐德 企业号平台，打通厂商到经销商的创新服

应用个性化

务。信息传达与沟通：产品信息、流程查

现端到端的流程闭环。以前，传统IT很难

企业号还可以根据企业的特性做自己

询、政策发布、Voice of Sales、信息平

做到的，如今，基于微信，利用企业号，

的应用。腾讯企业产品上海服务中心首席

台。工作驱动：商务支持、行政支持、移

一切皆有可能。随时与企业内部连接、与

架构师李彦涛先生用东方航空、施耐德电

动办工、业务审批、流程支持平台。分享

上下游供应链关系连接，与智能设备的连

子、如家酒店和华燕房盟等案例进行了分

沟通与推广：成功案例推广与分享、客户

接。支持导入完整的组织架构，轻松完成

享。

分享、销售工具推广。

开通及组织设置。可以根据组织发起会

其一，统一入口、整合联动的东航企

其四，内外结合的跨区管控的如家

话，推送消息，做到业务信息实时传达。

业号平台：迁移6个独立App，形成统一轻

微办公平台：公共沟通平台：企业微信

并通过轻应用快速连接各类业务系统的信

应用服务入口，连接线下生产业务系统，

群、部门微信群、业务微信群、各种微信

息，连接客户，连接企业，连接服务。

消息驱动应用，形成内部各生产业务操作

讨论组，实现服务支持中心与各区域、城

沟通协同，整合微信公共号与企业平台信

区、酒店沟通资源的串联，在手机联网状

息互通。

态下迅速分享信息、进行互动，防止信息

平台生态：企业号的核心模式就是 提供了企业的应用商店，专注于企业应用 商店，为企业开通简单、高效的服务。客

其二，基于移动社交的凯迪拉克经销

不对称带来的损失。业务轻应用平台：连

户、伙伴可以根据自身业务特点，随需扩

商管理平台：通过微信企业号平台，有效

接CRM、OA、ITManager、业主维护

展移动应用。另外，企业号还专注的运营

进行能力学习，有效进行快速业务支持，

平台，形成业务轻应用，将需要快速响应

一些频道，为企业提供精选服务。

通过信息的实时双向交互（巡店，排程，

的、分散的系统及应用放到轻应用平台进

信息安全方面，企业应用的高安全性

业务申请），完成厂商对经销商的有效管

行整合，方便移动办公人员，如城区人员

是企业在进行信息系统规划与建设时，要

控，随时随地随手的经营分析（销量分析

及酒店业主，在手机联网状态下随时随地

考虑的重要因素。企业号从组织与管理、

客流分析、成交分析、营销分析），建立

处理重要的工作事务 其五，企业微信支撑华燕房盟O2O创 新模式落地：腾讯企业产品上海服务中心 帮助华燕基于客户、产品、市场、金融数 据库为核心的O2O（线上社交平台+线下 体验中心）的社会化销售模式的微信平台 落地。通过经纪人管理与案场管理，形成 客户全生命周期的运营平台，支撑1万多家 门店，5万多名社会经纪人沟通互动与移动 化客户管理。 李彦涛将企业号建立运营归纳为四个 阶段：第一阶段使企业的资讯及时推到员 工的面前；第二阶段通过高效的沟通，提 高企业效率；第三阶段就是建立轻应用让 业务在企业号上完成，包括与企业各类IT 系统，智能设备的连接等，到了第四阶段 企业与微信一起合作，搭建更加开放、更 加符合企业要求的平台。 在手机和平板电脑上玩转微信企业 号，于指尖飞舞之中迅捷处理公务。微信 企业号与移动互联网的有机融合，引领了 行业的技术变革，推动中国企业实现运营 管理的飞跃，也彰显了移动互联促进企业 转型发展的力量。

China Economic Review | November 2014

41

话题

网络金融新风尚 在放宽网商涉足银行业的同时严控网贷和支付市场

今年央行大力整顿支付行业

继

腾讯民营银行获批后，网络巨商涉

小区居民、县域三农提供普惠金融服务；

上缓解传统金融机构对小微服务不到位的

足银行业又有了新进展。中国银监

天津金城银行将重点发展天津地区的对公

问题，更好地支持实体经济的发展，而对

会9月29日发布公告，批准阿里筹建民营

业务。目前四家民营银行均在筹建期内。

互联网企业自身来说，在成立民营银行之 后，很多业务会纳入到银行体系中发展，

银行浙江网上银行，小微金服将成最大股 东。易观国际分析师马韬将目前已获批的

42

腾讯与阿里之争

拥有合法的银行牌照，互联网企业在进行

民营银行逐一列出：腾讯、百业源、立业

阿里小微作为发起人的浙江网商银行

金融业务产品创新时打擦边球的情况将会

为主发起人，在广东省深圳市设立深圳前

获批，马韬认为对于阿里意义重大，阿里

相应减少，其业务发展将会更加规范。其

海微众银行（小存小贷）；正泰、华峰为

金融体系的构建因而将更加完善，在小微

次，在拥有银行牌照之后，无论是通过互

主发起人，在浙江省温州市设立温州民商

金融服务领域，由于民营银行的牌照 将不

联网获取存款，推出新型理财产品，还是

银行（特定区域存贷）；以及华北、麦购

再受原先小额贷款公司注册资金的限制，

面向小微企业的银行信贷、面向个人的信

为主发起人，在天津市设立天津金城银行

阿里小微金融服务的规模和前景也将更为

用支付，都会更加得心应手，大大拓宽业

（公存公贷）。浙江网商银行由浙江蚂蚁

广阔。

务范围和盈利能力。

小微金融服务集团（阿里巴巴电商更名浙

此前，腾讯作为发起人的深圳前海微

腾讯和阿里各自在银行领域存在一些

江蚂蚁小微金融服务集团有限公司 ）、上

众银行也已经获批，主要面对个人或企业

优劣势，在民营银行的运作上，面临着不

海复星工业技术发展有限公司、万向三农

的小微贷款需求，个存小贷是该行的主要

同的难题。马韬分析认为，阿里所做的是

集团有限公司、宁波市金润资产经营有限

业务方向。对于互联网巨头介入银行业，

网商银行是纯网络化运营，就目前的状况

公司共同发起设立；全网络化运营区服务

马韬的看法是，互联网金融实际上国家给

来看，在资源上，阿里多年的运营在商户

个人消费者与小微企业；深圳前海微众银

予的定位就是传统金融的有效补充，从行

资源、信息数据资源相对更有优势，在风

行将办成以重点服务个人消费者和小微企

业角度来看，互联网巨头涉入金融领域，

险控制等方面的经验也更多，难题在于作

业为特色的银行；温州民商银行定位于主

都是小微金融作为定位，符合互联网巨头

为互联网企业来说，虽然之前有过金融业

要为温州区域的小微企业、个体工商户和

的业务特点和技术特点，能够在一定程度

务领域的涉入，但是民营银行的经营，都

China Economic Review | November 2014

话题

属首次，且模式也与传统银行有差别，这

违反反洗钱法规。就银监会新提出的P2P

够有效、正向影响P2P发展态势。然而

些互联网巨头在民营银行的经营中将会有

监管十大原则，易观分析师李子川分析了

一项制度的落实需要给市场一个缓冲、接

一段时间需要摸索，同时，对于风险控制

其对行业的影响。“首先要注意的是这十

受的周期，平台马上完全按此执行有些困

能力的要求也会更高。

大原则由银监会创新监管部主任在论坛上

难。如果在借贷额度、参与方多寡等方面

阿里民营银行与腾讯此前已经批复

提出，对行业发展目前来看只会产生预期

做出要求后，施行有条件的实名登记或更

下来的银行之间存在着区别。腾讯前海微

影响，实质影响还要等具体文件下发。目

适合现状。

众银行由前期获批的大存小贷改为小存小

前很多平台存在过度担保、大额风险集

贷，阿里直接获批的就是小存小贷，业务

中、线下债权模式的线上化等现象，此十

模式上是一样的，区别在与阿里的浙江网

大原则未来若落地实施，力度将比去年划

易观智库数据报告显示，今年第二季

商银行是一家全网络化运营的民营银行。

出的三条红线更为强烈，会极大规范P2P

度，因为互联网巨头在战略上进一步加快

阿里银行与腾讯银行之间将出现竞争态

市场，成为行业洗牌的诱导剂。”李子川

了用户向移动端的迁移和余额宝申购金额

势，双方会发挥各自怎样的优势，如阿里

表示。

的下降，本季度互联网平台转接平台交易

规范第三方支付

的大数据和腾讯的社交会对双方产生什么

实名制原则、投资人与融资人都要实

额增长率仅比上季度有小幅度上涨，互联

影响？由于业务模式都是小存小贷，竞争

名登记、资金流向要清楚，这些原则会有

网收单交易额环比增长率则出现下降，维

肯定会有，但是目前小微企业的贷款的需

效的、正向影响

P2P过热的态势。从过

持低速增长。互联网转接平台的交易额达

求还远远没有被满足，阿里的优势在数据

往相关政策看，P2P实名登记可行性非常

到22993亿元，环比上季度增长5%。互联

与商户资源，腾讯的优势在于社交的巨大

强，之前温州下发过民间融资管理条例，

网转接平台的支付宝，银联和财付通分别

入口。

提出了大额备案制，相信对P2P发展有很

以35.25%，33.54%和15.51%的市场占

好的指引意义。目前在平台关键的信息处

比位列前三。市场份额变动较大，尤其是

理机制上，众多P2P平台不约而同对于借

银联在转接平台的份额增长十分迅猛，上 涨到33.54%。

严控P2P网贷 易观智库最新数据显示，今年第二季

款方信息是有选择性披露，几乎不涉及其

度内，中国P2P网贷市场行业交易规模达

关键信息，一来是为保证客户隐私，二来

本季度互联网收单的交易规模为

381亿元，环比增长26%。中国银监会创

是担心信息被其他平台获取，引起不正当

19946亿元，环比增长率为1.8%，创下历

新监管部主任王岩岫近期表示，P2P监管

竞争（低息抢单），这些有利于平台，但

年第二季度增长率新低。支付宝、财付通

思路之一是要落实实名制原则，投资人与

为监管介入带来困难。

和银联商务分别占据市场前三位，支付宝

融资人都要实名登记，资金流向要清楚，

实名登记制对于行业发展有利好影

已经将业务重心转移到移动支付，互联网

各国都对开户有非常高的原则要求，避免

响，能够在一定程度让行业更加理性，能

支付的市场份额下降明显，互联网收单前 三家的占比也是近一年来首次低于80%，

2013Q2-2014Q2中国P2P网贷市场交易规模 450

交易规模（亿元人民币） 交

环比增长率（%） 环

而银联商务则因为6月份的强力促销份额增 30%

今年第二季度中国非金融支付机构交

25.0%

400

25% 350 20% 16.1% 13.0% 3.0%

15%

200 150 9.4% 9 4%

100

10%

10.7%

214.9

249.5

273.0

302.3

381.0

0 2013 Q3

2013 Q4

2014 Q1

2014 Q2

数据说明：P2P网贷市场指P2P用户在线上实现交易的市场，具体数据据企业调研、访谈、二手 资料及易观方法估算获得，易观会根据市场最新信息对历史数据进行微调。 来源：易观国际 · 易观智库 Source: Enfodesk © Analysys International

高速发展的势头。而互联网收单也因为互 联网理财申购金额下降和互联网巨头业务 创新的重点向移动端转移，维持着5%的低 易观智库分析认为，今年央行大力 整顿支付行业，严格规范第三方支付收单

0% 2013 Q2

接入新商户，一定程度上限制了POS收单

速增长。 5%

50

易规模达7.26万亿。央行对于第三方支付 机构的监管加强，暂停部分POS收单机构

300 250

长明显。

外包业务，这让以往行业灰色地带越来越 窄，也很大程度上促使了支付厂商的转 型，纷纷在原有的支付业务上发展扩界的 营销、金融等服务，以此重新赢得更高的 交易量和收入。

China Economic Review | November 2014

43

话题

绿色地产开启未来 全球首个通过英国最高绿色标准的超高层建筑矗立于星外滩

色建筑正成为全球建筑行业的发展

绿

和推动绿色建筑在市场范围内的实践。”

运CBD项目为例介绍道，作为华东地区

趋势，中国绿色建筑的发展前景和

斯甘达穆斯说道。他认为，中国目前推行

“国家绿色建筑示范推广基地”示范项

投资价值受到广泛关注。绿色建筑是指在

的绿色建筑三星认证标准与BREEAM有互

目，星外滩遵循绿色建筑全寿命周期的发

建筑的全生命周期内，最大限度地节约资

相借鉴之处。但只有将此类标准纳入立法

展理念，创新采用了集中式能源中心、防

源、保护环境和减少污染，为人们提供健

中，才能约束业者，并鼓励他们采用超过

汛岸线与建筑相结合、双层玻璃幕墙系

康、适用和高效使用空间，与自然和谐共

最低标准的材料和技术打造绿色建筑。

统、雨水和中水综合处理和回收系统、港

生的建筑。

英诺德(北京)工程咨询有限公司董事

池设计以及立体绿化等节能环保技术。

在中国上海绿色建筑和建筑节能科

总经理辜将表示，从全球范围来看，从汇

位于北外滩的“星外滩绿色建筑集

技周暨第七届上海绿色建筑与建筑节能国

丰、渣打到普华永道，国际金融巨头的总

群”由上海港国际客运中心、上海国际航

际论坛上，上海国际航运服务中心开发

部大楼或数据中心无一例外地采用了绿色

运服务中心和星港国际中心三个开发项目

有限公司荣获“上海绿色建筑贡献奖（单

建筑的设计标准。这意味着越来越多的投

组成，毗邻外滩，与陆家嘴隔江相望，包

位）”，所建项目荣获“上海绿色建筑贡

资者意识到，社会和环境因素对房地产投

括34栋超甲级绿色办公建筑，涵盖总部办

献奖（项目）”。在科技周分论坛“中英

资价值有着重要的影响。

公、滨江公园、文化地标、豪华商圈，总

绿色地产建设与投资研讨会”上，英国建

与会专家表示，绿色元素为建筑项目

筑研究院（BRE）中国区总裁杰雅·斯甘

带来的附加值正逐步获得认可，这对于推

达穆斯（Jaya Skandamoorthy）为项目

动绿色建筑的发展具有十分重要的意义。

上海国际航运服务中心是全国首个同

颁发了证书，并预告上海国际航运服务中

绿色建筑成本虽略高于普通建筑，但会大

步完成绿标三星、LEED、BREEAM三项

心1号楼即将成为全球第一个通过英国最高

大降低运营管理成本，而从社会、经济和

高等级绿色认证的项目，被誉为亚洲最大

绿色认证的超高层建筑。

环境的综合评估来看，绿色建筑将成为未

规模的绿色建筑商办楼群，先后取得上海

来建筑市场的主流。

市建筑节能示范工程、华东地区绿色建筑

“作为主流的绿色建筑评估标准，英

建筑面积逾150万平方米，预计2017年全 部完工。

国建筑研究所环境评估法(BREEAM)建立

方兴地产副总裁、上海国际航运服务

示范基地、住房与城乡建设部颁发的国家

了一系列灵活可调整的考量指标，以鼓励

中心董事总经理贺斌吾则以星外滩金融航

绿色建筑和低能耗建筑示范工程等荣誉， 已经成为中国乃至全球的“绿色标杆”。 据介绍，项目的开发遵循了因地制 宜、以人为本、传承历史、弘扬文化的开 发原则，采用了先进的城市规划理念和大 量的建筑节能技术，包括集中式能源中 心、双层玻璃幕墙、地板送风、地道新风 降温、挖入式游艇港池、中庭采光、地下 空间整体性开发、地下自然通风和采光、 废水综合处理、雨水收集与循环利用、建 筑智能化等多项绿色技术。达到了“持续 节约建筑运营成本、降低环境负荷”的目 的，为社会整体的节能减排做出了贡献。 结合全新的城市规划理念，以绿色理念引 领规划，实现了老港口、老码头集聚地区 的功能转型、产业升级和区域经济的新发 展，为城市的“绿色未来”探索一条可持

上海国际航运中心的绿色建筑

44

China Economic Review | November 2014

续发展之路。

上海快鹿投资集团第一笔资金迅速到位 康骏养生一线员工已经发放薪水 在上海市各级领导指导下，在上海市政协委员、美中文化交流特 使、中国著名电影投资人、沪商首善、上海快鹿投资集团董事局 主席施建祥博士的带领下，在一兆韦德的大力协助下，重组康骏 的工作正在分秒必争中有序推进，康骏养生正在浴火重生。 今天已经实现了上海快鹿投资集团董事局主席施建祥博士在 10月18日新闻发布会上的承诺，第一笔资金1300多万资金已经到 达新康骏账上。据介绍，该笔资金用于一线员工发放一个月的工 资，缴纳20家门店的房租和水电费，支付员工生活费等。 更可喜的是重组康骏得到商委领导们的关爱，指派专门领导 参加重组康骏的工作中，现场指导和帮助上海快鹿投资集团联合 一兆韦德更有效地处理重组康骏事宜。 上海快鹿投资集团毕玥总裁在新闻发布会议上，向康骏公司 的全体员工表示感谢，感谢他们坚守阵地，坚定信念，无条件地 配合重组；感谢一兆韦德的金宇晴总裁为重组付出的努力；更感 谢康骏公司门店的房东、供货商给予重组康骏的信任和鼓励。 出席今天新闻发布会嘉宾有：上海市工商行政管理局长宁分 局党委书记、局长夏利民及上海市商务有关领导。康骏养生会馆 总裁皮武灵先生也应邀出席新闻发布会。 参加今天新闻发布会的还有康骏债权人代表、员工代表和房 东代表。他们对于新康骏的未来充满着信心。 上海快鹿投资集团总裁毕玥介绍到：一周内，还需支付剩余 1000多名员工一个月的工资，及其它30家门店的房租、水电、物 业费3000多万元。初步恢复20家门店的正常营业，同时对所有持 卡客户全部开放使用消费卡，对要求退卡的客户将实行登记，恢 复后退款处理，最大限度的保障客户的利益。预计在11月初完成 重组收购后的正常工作。通过三个月的努力，实现盈亏平衡，发 放完拖欠员工的全部工资，解决所有债权债务问题，使企业走向 正常的发展道路。 毕玥总裁讲诉了上海快鹿投资集团介入康骏重组的历程： 10 月9日，上海快鹿投资集团得知康骏危机爆发后，董事局主席施建 祥博士连夜组织集团高管人员召开会议，研究帮助康骏的方案。 施主席明确指出：快鹿投资集团就是以服务中小企业，帮 助上海民营企业发展为宗旨的公司。康骏在上海创立十年来，以 服务和技术赢得了市场的认可，发展成为上海第一品牌的养生企

业，它今天的危机并不是由于管理和服务造成的，而是盲目扩张 导致资金链断裂。我们帮康骏渡过了难关，就是帮助市政府解决 了群体性事件，帮2千多名员工解决了工资和就业问题，帮2万 多名会员卡客户解决了消费问题，为众多的债权人解决了债务问 题。一个企业要有社会责任感，快鹿投资集团就是要在民企最困 难的时候给他们送去温暖。 10月18日下午，上海快鹿投资集团与一兆韦德健身成功举办 了联合重组康俊养生会馆的新闻发布会。上海快鹿投资集团联合 一兆韦德重组康骏，引起轰动。 据了解，上海快鹿投资集团由董事局主席施建祥博士创办。 在上海市和长宁区等相关政府及领导的关心和帮助下，快鹿投资 集团已经成长为上海市50强大型民营投资集团，连续六年被评为 上海市“先进民营企业”。在上海市民营经济发展中，特别是在 对金融产业的投资、合资中，以投资规模最大、上缴税收最多、 风险控制最强、支持中小企业最有力而著称。投资和合作的影视 文化作品在业界首屈一指，今年计划将投入10亿人民币在许多优 秀的文化作品上。快鹿投资集团计划三年内实现销售1000亿人民 币，创造利润达到100亿人民币，各种税收超过30亿人民币。

看中国

写书 希望为有关中国前途的讨论增加一些新观点 文 | 晏格文 (Graham Earnshaw)

四

十多年来，以香

更多关于中国的书籍。过去十年间，这一

目前现有的书要好多少，甚至可能更差。

港这座我初来乍

题材已被大量作品淹没。我为何要去凑这

但是我在中国曾以许多不同的角色度过了

到时相比如今更具有中国

个热闹？况且，我又有哪些全新的见解可

漫长的时间，也做过许多不同的事。虽然

气息的城市为起点，我以

以提出？这是问题所在。

我从未去过西班牙、意大利、希腊或者埃

不同的身份喋喋不休地谈

谈论“中国将何去何从”的书籍，无

及，也从来没有要亲眼目睹金字塔的强烈

论着中国。因为一些不可

论是在国内还是国外发行，大致拥有两类

意愿，但是我曾在中国的安徽省待过大量

名状的原因，我似乎将我

观点—中国将引领全球发展，抑或行将

时间。我从不指望要去厄瓜多尔，但我比

这些年的生活都投入到了

瓦解。这些极端的观点更容易获得出版商

大多数人更了解湖北平原和三峡地区。

用各种方式与中国的交流

的青睐，也更容易在市场上畅销。而那些

随着年龄增长而带来的唯一好处体现

中。无论出于何种原因，这都是一段丰富

拥有微妙观点的著作，反而会被忽视。能

在自己的观点之上。尽管目前我并没有要

而独特的经历，我为能够拥有这样的机会

够抓住要点、言简意赅的作品，才是我想

写回忆录的打算，但记录自己在中国四十

而心存感激。

阅读的。

余载、与中国文化和社会交流的经历，或

晏格文

多年来，我始终在考虑要写一本有关

我计划并已经开始创作的这本书，是

许对某些观点具有参考和借鉴价值。所以

中国的书。2010年，我出版了一册关于我

我希望为这些讨论增加一些新观点而作出

我已经罗列好了一张清单，上有主题、论

过去十年间行走中国的游记，但在这本书

的努力。

点、有关中国的关键问题、能够帮助中国

里，我并未尝试解答“中国将何去何从”

对我的创作而言，“中国将何去何

以外人士更清晰直观认识中国的要点……

这一难题。许多人，包括数量与日俱增的

从”无论如何都是庞大而虚幻的论题。谁

将上述这些内容写作整理成章，一本书就

专家们，已经写作出版或正在致力于撰写

知道我最后会写成什么样？估计并不比

创作完成了。

我比大多数人更了解湖北平原和三峡地区

46

China Economic Review | November 2014

法博赛尔 • 生态中国行公益活动启动 2014年10月26日，由国家发改委主管、国家信息中心主办的《财经界》 杂志社联合中国网中国风尚共同主办的“美丽中国梦生态中国行暨法博赛 尔 • 生态中国行大型公益活动启动仪式”新闻发布会在国务院新闻办新闻发 布厅举行。在参会嘉宾的共同见证下，“美丽中国梦生态中国行暨法博赛 尔 • 生态中国行大型公益活动”正式启动。 会上，美丽中国梦生态中国行组委会主任、国家信息中心副主任李凯， 国家卫计委首席健康教育专家、卫生部原副部长殷大奎，著名理论家、国务 院稽查特派员刘吉，国家发改委能源研究所副所长高世宪，组委会秘书长、 《财经界》杂志社总编辑吉喆，法博赛尔生物科技集团董事长刘绍纬，组委 会常务副秘书长、《财经界》杂志社副总编丁吉林，美丽中国梦生态中国行 总策划、组委会执行秘书长、中国网中国风尚总监张一帆，法博赛尔生物科 技集团副董事长姚军等领导嘉宾出席了新闻发布会。阿里巴巴集团董事局主 席马云，中国干细胞之父、中国科学院院士吴祖泽特意向大会发来贺电，祝 贺活动取得圆满成功。 据悉，活动旨在通过宣传挖掘推介在生态环境、节能减排、循环经济、 资源节约型、社会友好型及美丽中国建设方面的先进示范区和案例，推动更 多地区、城市、行业、园区、企业、示范基地和社区走生态文明发展之路。 通过展示试点示范成效，采访政府领导、园区领导、企业负责人、当地群众 等，宣传试点示范的成功经验和 做法，推广典型模式和先进技术，进一步形 成对全社会的带动效应。 会上，美丽中国梦生态中国行组委会主任、国家信息中心副主任李凯， 国家发改委能源研究所副所长高世宪，国家卫计委首席健康教育专家、卫生 部原副部长殷大 奎，著名理论家、国务院稽查特派员刘吉，美丽中国梦生态 中国行总策划、组委会执行秘书长、中国网中国风尚总监张一帆，法博赛尔 生物科技集团董事长刘绍纬等 作了发言。 组委会执行秘书长张一帆介绍说，美丽中国梦生态中国行大型公益系 列采访活动，将在充分调研的基础上，组织部分媒体进行重点采访和宣传。 倡导全社会都来关注生态文明建设，培育生态文化，珍爱自然，保护生态。 发挥中央主流媒体的引导作用，让各级新闻媒体成为传播宣传生态文明主流 价值观的主战场。通过城市、企业和社会组织及群众的先进示范作用，辐射 社会各个群体，在全社会形成政府重视、公众自觉、社会参与、全民崇尚节 能、环保、绿色、低碳的生产和生活理念。 他表示，推进生态文明建设任重而道远，既需要政府强力推动，也离 不开企业的参与。企业作为市场的主体，是推进我国生态文明建设的重要力 量。法博赛尔不仅引领世界生物科技的顶尖技术，更担负起中国民族品牌的 使命，勇挑社会责任的大旗，对中国的生态文明建设作出了积极有益的贡 献，有法博赛尔的参与，将会对我国 企业参与生态文明建设，起到巨大的推 动作用。 据了解，本年度活动欢迎社会各界给组委会提供优秀案例，结束后，将 在全体参与本活动的媒体记者中，评比出“美丽中国梦生态中国行”好新闻 奖、“美丽中国梦生态中国行”最佳图片摄影奖。

LISTING Accounting Firms

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Suite 628, 6/F Shanghai Centre,

Tel: +86 10 6444 8900

S101 Beijing Lufthansa Center

1376 Nanjing Road West,

Fax: +86 10 6445 3870

50 Liangmaqiao Road, Chaoyang

Shanghai

agan@harrowbeijing.cn

Tel: +86 10 6468 8838

Tel: +86 21 6279 8660

Northwest Airlines Airport

mba@mbs-worldwide.ac.cn

Office www.nwa.com 32271 Passenger Terminal 2, Capital International Airport

Saint Paul American School

Tel: +86 010 6459 7827

www.stpaulschool.cn

Harris Corporate Services Ltd

KLM - Greater China Regional

18 Guan Ao Yuan, Longgang

www.harrissec.com.cn

Office

Shanghai Office

www.klm.com.cn

Tongji University SIMBA

100192

Suite 904, OOCL Plaza,

1609-1611 Kuntai International

A309 Sino-French Center, Tongji

PRC

841 Yan An Zhong Road,

Mansion, B12 Chaoyangmenwai

University, 1239 Siping Road

Tel: +86 137 1881 0084

Jing’An,

Avenue, Chaoyang, Beijing

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spasadmissions@gmail.com

Shanghai, PRC

Tel: +86 10 5922 0747

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Tel: +86 21 6289 8813

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Livingston American School

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Shanghai

China Europe Int’l Business

www.laschina.org

info.sh@harrissec.com.cn

Air France - Shanghai Office

School

580 Ganxi Road

Beijing Office

www.airfrance.com.cn

(CEIBS) MBA

Tel: +86 21 6238 3511

Room 2302, E-Tower, No.12

3901B Ciro’s Plaza

www.ceibs.edu

Fax:+86 21 5218 0390

Guanghua Road, Chaoyang,

388 Nanjing Road West

Tel: +86 21 2890 5555

Shanghai Community

Beijing, PRC

Tel: +86 21 6334 5702

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International School (Pudong

Tel: +86 10 6591 8087

mail.corporate.sha@airfrance.fr

admissions@ceibs.edu

Campus)

Shanghai Jiaotong-Euromed

www.scischina.org

Fax: +86 10 8599 9882

Business Schools

Road Qinghe, Haidian, Beijing

Management AEMBA Program

800 Xiuyan Road, Kangqiao,

Guangzhou Office

Shanghai

(MBA/EMBA)

Pudong

Room D-E, 11/F, Yueyun

Fudan University - Washington

www.aemba.com.cn

Tel: +86 21 5812 9888

Building

University EMBA

Tel: +86 21 5230 1598

Fax:+86 21 5812 9000

3 Zhongshan 2nd Road

www.olin.wustl.edu/shanghai

Fax: +86 21 5230 3357

British International School

Guangzhou, PRC

(English)

aemba@sjtu.edu.cn

Shanghai - Pudong Campus

Tel: +86 20 8762 0508

www.fdms.edu.cn/olin (Chinese)

info.bj@harrissec.com.cn

www.bisshanghai.com

International Schools

Fax: +86 20 3762 0543

Room 710, 670 Guoshun Road

info.gz@harrissec.com.cn

Shanghai, China, 200433

600 Cambridge Forest New Town, Lane 2729 Hunan Road,

Hong Kong Office

Tel: +86 21 5566 4788

Pudong

7/F, Hong Kong Trade Centre

Fax: +86 21 6565 4103

Tel: +86 21 5812 7455

161-167 Des Voeux Road Central

Hotels

Hong Kong, PRC Tel: +852 2541 6632

Shanghai

Fax: +852 2541 9339

Grand Mercure Hongqiao

info@harrissec.com.hk

Airlines

48

Harrow International School

Shanghai

Manchester Business School

Beijing

www.grandmercurehongqiao.com

Part-time Global MBA

www.harrowbeijing.cn

369 Xian Xia Road, Chang Ning

Beijing

http://china.portals.mbs.ac.uk

No. 5, 4th Block, Anzhenxili

Shanghai

Lufthansa German Airlines

Starts December 2013,

Chaoyang, Beijing 100029

Tel: +86 21 5153 3300

Beijing Office

Shanghai

PRC

Fax: +86 21 5153 3555

China Economic Review | November 2014

reservation@

2302-2303, 2201-2206 Hongyi

China 200040

grandmercurehongqiao-shanghai.

International Plaza, 288 Jiujiang

Tel: +86 21 6087 1515

com

Road, Shanghai

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Leasing Enquiries

shresume@hudson.com

Tel: +86 21 6087 2499 Tel: +86 21 6087 2488

Language Schools MandarinKing www.mandarinking.cn

Park View Apartment

Real Estate/ Serviced Apartments

wwww.parkview-sh.com Block 1-4, No. 888

Shanghai

Changning Road

No.555 West Nanjing Road,

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Zhejiang Narada Grand Hotel

Room 1207 12th Floor, Plaza

Tel: +86 21 5241 8028

www.wtcgh.com

555 Shanghai

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122 Shuguang Road,Hangzhou,

PRC

Savills Residence Century Park

China 310007

Course Inquiry: 400 618 6685

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Tel: +86 0571 8799 0888

Office Tel: +86 21 6209 1063

No. 1703, Lane 1883, Huamu

hotel@wtcgh.com

Office Tel: +86 21 6209 8671

Oakwood Residence Shanghai

Road Pudong

study@mandarinking.cn

www.oakwoodasia.com

Shanghai 201303

103 Wuning Road, Putuo District,

PRC

Shanghai 200063

Tel: +86 21 5197 6688 info@savillsresidence.com

HR/Recruitment Beijing

PR Agencies

Beijing Deco Personal Services

Ketchum Newscan Public

China

Ltd.

Relations

Tel: +86 21 6183 0830

china.adecco.com

www.ketchum.com

reservations.ors@oakwoodasia.

D 9/F Tower II China Central

Shanghai

com

Place, 79 Jianguo Road,

218 Tianmu Road West

Chaoyang, Beijing

Tel: +86 21 6353 2288

Tel: +86 010 5920 4320

Fax: +86 21 6353 2276

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Beijing

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A6, Chaoyangmenwai Avenue

Guangdong

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Levin Human Resources

Tel: +86 10 5907 0055

Development (Guangzhou) Ltd.

Fax: +86 10 5907 0188

www.levin.com.hk

Ogilvy Group

Lanson Place Central Park

Sandhill Plaza

V15 4/F Goldlion Digital Network

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Residences

www.sandhillplaza.cn

Center, 138 Tiyu Road East,

Beijing

enquiry.lpcp@lansonplace.com

2290 Zuchongzhi Rd, Zhangjiang

Tianhe,

9/F Huali Building, 58 Jinbao

Tower 23, Central Park

Hi-Tech Park

Guangzhou, Guangdong

Street, Dongcheng

No. 6 Chaoyangmenwai Avenue

Shanghai 201303

Tel: +86 020 2886 0665

Tel: +86 10 8520 6000

Chaoyang, Beijing 100020

Tel: +86 21 6075 2555

Fax: +86 020 3878 1801

Fax: +86 10 8520 6060

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Leasing@sandhill.cn

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Shenyang

Shanghai

Shenyang International

info@levin.com.hk Shanghai

Real Estate/Commercial

Real Estate/ Business Park

ADP China

Jing An Kerry Centre

Lanson Place Jin Qiao Serviced

Software Park

30/F Golden Bell Plaza, 98

www.jingankerrycentre.com

Residences

No.860-1 Shangshengou,

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Dongling, Shenyang City,

Tel: +86 021 2326 7999

Jing An Kerry Centre

No. 27 & 28, Lane 399 Zao

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Hudson Recruitment

1515 Nanjing Road West

Zhuang Road, Pudong, Shanghai

Tel: +86 24 8378 0500

(Shanghai) Co., Ltd.

Shanghai

Tel: +86 21 5013 3888

Fax: +86 24 8378 0528

China Economic Review | November 2014

49

LISTING Real Estate/HOPSCA

16/F, East Tower,

8/F, 8 Lujiang Road, Siming

5/F, West Office Tower, 1376

Dongfangshouzuo No.1

District

Nanjing Road West, Jing’an

Chongren St. Jinbi Road, Wuhua

Apollo Business Center

District

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Apollo Huaihai Center [New]

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NANJING (2 LOCATIONS)

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15/F, Tower 2, No.1266 West

Regus Jinling-Asia Pacific

139 Ruijin Road (No.1)

Nanjing Road, Jing’an District

Tower [COMING SOON]

Huangpu, Shanghai

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8/F, Jinling Hotel Asia Pacific

Tel: 021-6136-6088

Shanghai Jiatinghui Property

18/F, 222 Yan’an Road East,

Tower No.2, Hanzhong Road,

Apollo Flagship Center

Development Co., Ltd

Huangpu District

Gulou District

Apollo Building

www.antinganting.com.cn

GUANGZHOU (7 LOCATIONS)

NINGBO (2 LOCATIONS)

1440 Yan’an Road (M)

Life Hub @ Anting No 1033

Regus Guangdong

Regus Raffles City

Jing’an, Shanghai

Moyu Rd S, Anting, Shanghai

International Building [NEW]

8/F, No.99 South Daqing Road,

Tel: 021-6133-1888

Tel: +86 21 6950 2255

7/F, Main Tower, 339 Huanshi

Jiangbei District

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23/F, 38 East Third Ring Road,

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China Economic Review | November 2014

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