Chinese censors allowed “Lust, Caution” to play in Chinese movie theaters at the end of 2007, but not before cutting over 13 minutes of sexy screen action. The actress that we saw in so many compromising positions, Tang Wei, was looking to star in commercials for Pond’s, the skin care brand owned by Uniliver. Those plans have been nixed, the commercials all having been pulled by censors. No explanation given.
Many would claim this is about censorship, but I don’t think so. What was her crime? Staring in a film that was pre-approved by Beijing?
This one is more likely about slowing down a successful foreign company in China. Unilever is a $40 billion company, and Pond’s is doing particularly well there. Foreign companies in skin care have reportedly been increasing spending. It’s a hot market, and it depends heavily on marketing and image. Ms Tang was undoubtedly courted by all major skin care companies in China, each thinking that a contract with the “Lust, Cation” actress would be their key to marketing advantage. There are many companies and only so many stars to go around.
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A headline in the New York Times art section on Mar 8 read: “China Hurt By björk“. That’s an interesting one. Can a singer on the Z-list take a superpower down a notch with just a song? For those who didn’t catch thew news, during her recent Shanghai performance, the Icelandic singer incorporated a chant about Tibet. I asked a couple of Chinese if they felt their feelings had been hurt. Their only comment was: “Who is Bjork?”
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Software piracy is stifling innovation, claims a recent study commissioned by the Business Software Alliance. Having little confidence that their intellectual property rights are protected, software developers have been reluctant to develop new products from the China market. ZDNet Asia, always a good source for technology news, also points out that reducing piracy can create jobs:
“Commissioned by the Business Software Alliance (BSA) and conducted by research house IDC, the study released Tuesday said the reduction would add highly-skilled jobs to the labor force, support the creation of new companies, lower business risks, and fund government services without a tax increase. Some 435,000 new jobs, over US$40 billion in economic growth, and more than US$5 billion in tax revenues above current projections, could be generated in the region, the research projected.”
Piracy used to be a boon for China as the laobaixing benefited for years from lax regulation. It was only through piracy that someone earning US$100 per month could afford Microsoft products selling for hundreds of dollars. The problem is that the economy is now stuck from an innovation standpoint, and China must realize that it makes better sense to support software rights. The question is whether China has yet reached that tipping point. Does China still benefit more by allowing the wholesale piracy of software, or is the practice doing more harm than good now?
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The U.S. company whose blood thinner was responsible for as many deaths and injuries at home is now claiming that the problem originated with a China supplier. Most companies that have taken a hit due to quality problems in China have been a bit more politic, and so have the traditional media outlets that report on such cases. I quite liked the Washington Post’s coverage on this one:
“…Baxter’s high-tech testing of batches of the problem drug found signs of what it called a ‘heparin-like molecule’ - a substance not found in batches of problem-free heparin.”
This business about a “molecule” sounds like science fiction, pretty disturbing anyway. Let’s hope at least that it stirs up discussion on counterfeiting in the chemicals sector. It’s a serious issue for China, though in this case I am not convinced that this was about a supplier trying to copy some molecule out there. From a political standpoint, the finger pointing is going to make for some interesting reactions in China.
Interestingly enough, I ran a post last August titled “China’s Product Recall Guessing Game”. People had been asking where I thought the next product recall was going to come from, as if I had any idea. A few broad criteria came to mind., and I jotted down four things that concerned me, in particular. In my third point, I suggested that importers be very concerned about chemicals. In the fourth, I suggested that they stay away from any China-made products that relied upon FDA approval in the United States.
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Japan Tobacco is establishing a quality control center in China, which will provide frequent checks of food suppliers there. Japan Tobacco imports about US$100 million worth of frozen product from China each year. For those who don’t know what this is about, a shipment of frozen gyoza from China to Japan was found to contain pesticides, and a joint investigation could not find the source of the contamination. Japan is going as far as to take inspectors onto the farms where the produce is grown.
If that’s what it takes…
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China Mobile’s CEO, Wang Jianzhou, has just publicly expressed interest in the iPhone. Though formal talks have not yet been established, China Mobile has given the old winkity-wink to Apple through a leak to the press. Hey, but isn’t that what wire services are for?
“‘We have not yet officially begun talks with Apple over the iPhone problem,’ China Mobile Chief Executive Wang Jianzhou told reporters on the sidelines of an annual parliament advisory body meeting. ‘As long as our customers want this kind of product, we will keep all options open,’ said Wang.”
Back in January, if you’ll remember, China Mobile announced that it was officially breaking off talks with Apple, though it appeared never to have been in formal talks in the first place. Apple never made any statement about China Mobile’s comment, but rumor had it that the two companies had only held one formal meeting.
This latest bit of news is more than likely just posturing on China Mobile’s part. It dreams that Apple is going to come crawling to China Mobile to do a deal on their terms. Don’t do it Stevie! Stick to your guns, buddy!! My goodness, look who I’m talking about. If there’s anyone who knows how to play the China game, it’s old Steve Jobs.
As far as China Mobile is concerned, I don’t understand what all of the pussyfooting is about. You pick up a telephone, and you call Cupertino. Not convinced that revenue sharing works? Get Jobs himself to explain the business model. At this point, Apple doesn’t need China Mobile. The company promised Wall Street that it would ship 10,000,000 units in 2008, and they have announced (not leaked) that they are confident the target will be reached. How many of these will be brought into China through a back door? Who knows. Probably a lot.
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While claiming that it attaches high importance to quality standards, China has claimed it bears no responsibility in assuring quality for pharma products leaving its shores. As many as 400 illnesses and 21 deaths have been linked to tainted heparin produced in China. The FDA went to China only after the news of contamination broke, and the plant was said to be in sorry shape. The FDA has not been inspecting China plants often. Here are some numbers to think about…
“The inspection shortfall is particularly acute in China. The FDA has averaged just 15 inspections in China in each of the last five years. Yet China’s fast-growing industry now numbers 714 plants that ship drug products to the U.S. At that rate, it would take the agency nearly 48 years to inspect each plant just once — and well more than that, if China’s booming 17 percent annual growth rate for drug exports is taken into account.”
It is worrisome that China insists it bears no responsibility. China certainly wishes to assure high quality standards for the products that are produced in its country. It is in its best interest to export only quality goods - regardless of who owns the factory. When China says that it cannot guarantee quality, maybe it means that it is incapable. Question: If China can’t get the job done from home, how successful can we expect the FDA to be in doing the job from afar?
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