Recently in China Category

Evan Osnos - Letter from China

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If you're not reading Evan Osnos' "Letter from China" blog in the New Yorker, you should be.

For much of the past two decades, the obstacles facing foreign entrepreneurs have been structural: bureaucratic delays, restrictions on moving foreign currency, and so on. But in my conversations with foreign business people these days, the current malaise centers on a less concrete--and, thus, fixable--sense of obstruction. The concern these days is not about the vagaries of what was once called the Iron Rooster, but about the reality of a canny, powerful, well-equipped, urbane counterpart in the global economy, which is beginning to express its own beliefs about fair trade and free flow of information. That, I'm afraid, is a far more difficult gap to bridge.

Winter of Discontent in Beijing: Letter from China : The New Yorker

And the Time piece that is improperly linked to from Evan's blog post is this one (also worth reading):

In my more than two decades in China, I have seldom seen the foreign business community more angry and disillusioned than it is today. Such sentiment goes beyond the Internet censorship and cyberspying that led to Google's Jan. 12 threat to bail out of China, or the clash of values (freedom vs. control) implied by the Google case. It is about the perception that antiforeign attitudes and policies in China have been growing and hardening since the global economic crisis pushed the U.S. and Europe into a tailspin and launched China to its very uncomfortable stardom on the world stage.

The China Fix - TIME "The China Fix"

One day before US Secretary of State, Hillary Clinton's speech on Internet freedom, the New America Foundation has hosted a panel discussion on Chinese censorship of the Internet with Alex Ross of the State Department, Rebecca MacKinnon of the Open Society Institute, Tim Wu of Columbia University, and Evgeny Morozov of Georgetown University. The discussion was moderated by James Fallows of The Atlantic Monthly.


Authority, Meet Technology: Will China's Great Firewall Hold?

For those who prefer the audio, you can download the MP3 Recording of This Event.

Tangos Chan over at China Web 2.0 Review is reporting on a new 1 Billion RMB or $150 Mil. USD fund to invest in free software run by Sequoia China, Highland Capital and Qihoo 360. Note that this is 'free as in beer' free software, not 'free and open source software' such as Linux or Apache or Mozilla. It's interesting to see these 3 particular entities working together on such a large fund for "free software." It seems to imply that the "free software" market in China is at least significantly larger than that fund, and if there is a fund that large for free software, anyone in China hoping to make money on non-free software has to fight all of the current challenges as well as this new 1 billion RMB fund.

Fascinating.

Chenggang Rui

I first met Chenggang Rui at the 2006 Asia Society Young Leaders Summit in Seoul. I had no idea he was younger than me as he had a self-confidence of years beyond his actual age.

The NY Times has a long profile of Chenggang: Capitalism Finds Voice in China TV. It's a good read and covers a the Starbucks in the Forbidden City issue that became a hot topic right after I had met him in late 2006.

What's more interesting about Chenggang for me is that he has very thoughtful views on Japan, which is not that common in China (at least on the Chinese Internet.) ESWN has a great translation of a post from Chenggang's blog from September 2006 where he discusses his views on Japan.

Japan is a country that is closest to us but one about which we least understand. Most of our young people know much more about the European and American countries than Japan. Of course, Japan is not an easy country to understand, and there are two sides to the Japanese people. But from the viewpoint of a third person, Japan is no more difficult to understand than China. The problem is not that Japan cannot be understood. Instead, the issue is whether we are willing to try to understand. (Ruth Benedict's <The Chrysanthemum and The Sword> and Lai Xiao'er's are excellent books).

Those foreign friends who have visited China told me almost without exception that China was more splendid and better than they imagined. A trip to China often corrected their bad or mistaken ideas through reading too many novels. If you genuinely want to know Japan, a trip to Japan can often change many things. With this purpose, I went to visit Japan and it changed many of my previous over-simplified and subjective views.

EastSouthWestNorth: Rui Chenggang On Japan

Nothing But Net

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This is a few months late but JP Morgan's Imran Khan has a lengthy 2009 Internet Investment Guide (or here) out that is worth reading for it's coverage of China, Korea and Russia.

I really enjoyed Benjamin's newest presentation on Asian Internet businesses in comparison to Western ones.

Presentation at eComm in San Francisco in March 2009 about Asian mobile ecosystem, especially Japan, and comparisons with Apple's iPhone and Facebook. Some extra like mobile SNS, mobile novels and various other considerations of interest.


The Wall Street Journal is reporting about a the arrest of a CCTV reporter in Beijing by policemen from Shanxi Province, China, which is newsworthy because CCTV is the Chinese Government's official TV station: CCTV Reporter’s Arrest Causes a Stir.

I actually met this reporter last month here in Tokyo and heard her story first-hand. What is not reported on by the WSJ is a key point, the reporter, Li (which is not her real name), was not on the CCTV payroll when she was researching and reporting on this particular news item. Her tapes and reporting media were all confiscated so I'm almost positive we'll never see that article she was going to write or the information that she had gathered.

What I was impressed by was her commitment to ethical journalism and her desire to get the story out even if she wasn't on the CCTV payroll at that particular time. She deserves to be praised for what she did, not jailed, and Reporters Sans Frontieres should be supporting her (not to mention CCTV itself.) For all of the negative imagery there is about the media in China, especially the state-run media, I was impressed to met a young journalist who could stand shoulder-to-shoulder with Woodward & Bernstein.

Only a few weeks ago, I showcased a number of alternative home page interfaces Google is using in East Asia. Today I saw a new UI for Simplified Chinese at one of the Google.cn urls that previously had a different design.

Google China home page test UI

The previous design is here.

google china home page 2008

You can see the whole set of Google's East Asian home pages at my Flickr account.

Changwon Kim has news on his blog that Cyworld is quitting the US market: Cyworld pulling plugs from US.

Cause of failure? Well, for starters (the obvious ones): Cyworld didn't seem to have sharp strategies as to how to position their service (Was it Myspace or Habbo hotel?); They didn't localize the service very well; SK Telecom, the parent company, didn't "get it" yet still tried to put a grip on the business.

Chang suggests that this recession is a good time for Korean entrepreneurs to build the post-Cyworld service that would ideally be more popular outside of Korea. I'd be happy for this to happen, but that barrier to success is quite high.

Why?

It's clear from the existing marketplace that Asia is qualitatively different for consumer web services. I've been blogging about this for years and the best example comes from a post by Mitani-san at Asiajin quoting George Godula of Web2Asia; In fact, I'll use the subtitle instead of the title as the subtitle is more relevant: Why it is difficult for European and U.S. companies to advance into Asia.

Godula's presentation at Open Web Asia looked at China, Japan and Korea and compared the leading ecommerce, video hosting, sns, bbs and blog service vs. what is popular outside of Asia. It's a crystal clear chart that shows that sites and services that are popular in North/South America or Europe are just nowhere to be found in Asia. Godula has a good list (be sure to click over to see it) of why companies are unsuccessful in Asia:
1. No formal internationalization/Asia entry strategy
2. Entered Asia too late/ too slow
3. Local HQ has no full decision power
4. Incomplete localization(Translation, Content, Pricing, Branding(name, colours, etc.), Features, Business model)
5. No Local technical development team (Slower time to market, More expensive)
6. Domestic players sometimes simply have the superior technology/business model
7. Global corporate guidelines
8. Local legislation

This is tough stuff. And as I commented on Chang's blog, I'm not sure there are good examples of Asian-founded successful consumer web services that have been successful outside of their home areas. One might say Naver is doing ok in Japan with their web-based games but to me Flash-games are not consumer web services.

That Friendster's success in SE Asia (specifically the Philippines) was largely accidental is telling. They've been smart to focus on their successful markets but being successful in markets by accident is a scary way to grow a business.

Tonight Jason Calcanis joins Tokyo 2.0.  I won't be able to make it as I have a previous committment but if you go, ask Jason what he thinks it takes for a non-Asian consumer web service to be succesful in Asia.  Outside of core search (which is a consumer service but one that requires the deepest of pockets) it's instructive to consider how little Asia has in common with N. America or the EU in this segment.


Jason Calcanis at Web 2.0

I will be pleasantly surprised if Mixi gets any traction in China. China already has a competitive market for social networks and it's not clear what benefit there will be in using an SNS that is popular in Japan (considering the enmity Chinese online users have for Japan and anything Japanese.)

Japanese social network service (SNS) site Mixi has released a Chinese language site at Mixiu.cn, reports Sohu. The site offers functions for blogs, photos, groups and messaging and is operated by Shanghai Mixiu Network Technology, the sole partner for Mixi's China SNS service, said the report. Reports in February said Mixi planned to establish a Shanghai subsidiary to enter the China market.

Japanese SNS Site Mixi Releases Chinese Language Version