China to enter consumerism era

Shanghai`s middle class stands out as having the highest propensity to spend among their counterparts in six Asian cities, including Hong Kong, Kuala Lumpur, Seoul, Taipei and Tokyo, a survey on saving and spending patterns conducted by HSBC revealed. 

Spending across China is surging, with retail sales rising by 13.7% and 12.9% respectively in 2006 and 2005. The dazzling double digit growth of this country is not a novelty to most of us anymore, but its influences are still impressive enough to both the rest of the world and China itself. 

To the rest of the world, that China is entering a brand new consumerism era is doubtlessly inspiring. Beijing has been urged to encourage Chinese consumers to spend more and save less, which is counted on to boost its import, contributing to more balanced global trade and putting its trading partners, notably the U.S., more at ease. 

To China itself, however, the impact of consumerism can be hardly predicted. According to Time, almost one out of three Chinese urbanites said they did not save at all. I personally am quite sceptical to this result and worried about the backlash against consumerism in China. 

Indeed, Chinese people’s purchasing power is growing significantly, yet the living cost is rising even faster.2 Even China’s middle class people whose monthly incomes are over $650 can hardly afford the soaring housing price in big cities such as Beijing, Shanghai and Guangzhou. Moreover, given the deficient social welfare system, Chinese people still need to stash away money to fund retirement and meet rising medical and education costs. It is absolutely dangerous for China to run to an extreme of consumerism at this stage.

---

Can we trust you, Kim?

Christopher Hill, the US negotiator at the six-party nuclear talk, urged on last Thursday that North Korea must stick to the tight deadlines of the new deal to freeze its Yongbyon nuclear facility in exchange for a modest amount of fuel oil.[1] 

What characterizes the latest breakthrough in the six-party talk is that tangible and step-by-step actions are required for each party after the negotiation. North Korea has to meet the deadline to close its nuclear facility while the U.S. has to provide light water reactor within 60 days. They also have to start discussions on normalising relations with 30 days.

Still, that can not guarantee the whole process will be carried out as planned. For one thing, it is widely skepticized that if Kim Jong Il will sincerely give up all of the nuclear programmes since he had refused to acknowledge the existence of what the US alleges is a secret uranium enrichment programme.[2] For another, Washington has made clear that not until dismantling Pyongyang`s entire nuclear programmes will the process of normalising relations kick off. Moreover, it seems that North Korea’s demand to be taken off the US list of state sponsors of terrorism would take some time.

Will there be another breakthrough between Pyongyang and Washington? In my opinion, it largely lies on North Korea. Bush is in hot water of Middle East and his coercion policy on North Korea has proved to fail to function. Negotiation seems to be the best tactic for him. On the other hand, Kim is known for his capricious diplomatic ploy. Should he continue the nuclear porgramme after relieving the domestic energy urgency, the six-party talk will definitely come to an end.

---

How to stop booze among youth?

England and Scotland were reported to have the highest rates of under-age drinking nations in a World Health Organization survey last year. A coding static is recently introduced in Scotland to trace shopkeepers and adults supplying drink to under-aged youth, said Newstatesman.[1] 

According to the spokesperson for Strathclyde Police, the aim of this coding is both to prosecute offenders and gather information about places where children are getting their alcohol. Yet the effect of this scheme is far beyond our prediction.

It has been proved difficult to encourage people to break away the habits like drinking and smoking: people will still smoke and drink anyway even under the heavy tax and hash regulations. It is noticeable that, rather than going to the tightening controlled supermarkets, teenagers tend to purchase alcohol in small corner shops, which are much more difficult to be monitored by police. Regulation seems to be vulnerable to have every situation under controlled.

Compared to those debatable rules and regulations, youth drinking education programme is more likely to provide effective and permanent solutions to the under-age drinking problem.

However, as to the youth education on drinking, British parents, I must say, need to do more. Parents` attitude towards drinking is crucial to constrain youth`s drinking behaviours. Kids in Britain are given too much freedom by their generous parents: they think it is up to them to decide if their child has a drink or not and thus unconsciously approve excessive drinking. A shop owner who has been running the alcohol business for 5 years expressed same concern, according to Newstatesman`s article.

It is always more effective and easier to persuade teenagers themselves to get rid of alcohol, rather than threatening the vendors by heavy fine in solving the youth drinking problem.

---

[1] Newstatesman: Keep an eye on the booze, 12 February 2007

No Romance in Sino-Sudan relations

Economist suggested that Chinese president HU JINTAO should facilitate the deployment of a UN-led peacekeeping force in Darfur, where 300,000 people were killed in Sudan`s bloody riot[1], rather than turning a blind eye to the country`s civil war for its energy interests.

This reminds me of another article in Economist a month ago, like many other western media, questioning China’s “new colonialism” in Africa and generous help to “inhuman country”. Indeed, the ways that China aids Africa are far different from the Western helpers, the most significant difference among which is the policy of “no intervene of Africa’s politics”.

Will China continue sitting out of Sudan`s politics? I don’t think so. Chinese leaders are extremely pragmatic nowadays. Yes, they are thirsty for oil, but they are also reluctant to be described as an irresponsible rising power and become the target of the world`s criticism.

Pragmaticism makes Mr. Hu embrace the “no intervene” policy; it will also make him change stance, as long as stronger voices rise in the world urging him to do so. There is no romantic relationship between China and Sudan. They just take what they want from each other.

It is believed that China is able to mediate the civil war in Darfur with its growing influences in Sudan. But how soon can the negotiation bear fruit?

It is noticeable that most of the bitter accuses on China`s foreign policies in Africa are from the media, yet the Western governments haven’t exerted much pressure on China as they used to. China`s economy growth needs oil, world`s economy boost needs China. As globalization deeply embedded in today`s world, politics is more like an art of balance.

Still, China is playing a crucial role in Darfur crisis and will resolve the problem between Sudan and the UN, with the premise that its energy security is guaranteed.

---

[1] Economist  – February 3 2007

In search of Happiness

I was too naive to study happiness. Now I am not happy at all. Those complicated and theoretical literatures on happiness baffled me so much that I have no idea where to start my review at all. Most of the classical theories and explanations on happiness are more than hundreds years old, they still make sense nowadays though.

Yet I think they are sort of highbrow arts and literatures to most of us. what does happiness mean to us in 21st century? Who can explain it in a nut shell and in an approachable way?

I think for most of us who are not going to devote themselves to the academic life, we only want to be enlightened by some wise and smart sentences that rock our mindset.

Today I read a piece of crispy essay about happiness in a magazine, and it made me finally understood the topic a little bit better–after I banged my head against brick wall for those obscure theory books these days.

The author argued that we are living on a cultural soil perfectly suited for depression. Here is a checklist for happiness blockers: materialism, perpetual discontent, over-complication, hyper-competition, stress, rage, boredom, loneliness and existential confusion(what does existential confusion mean by the way?). We are less happy because we`re removed from nature, married to work, adrift from family and friends, spiritually starved, sleep deprived, physically unfit, dumbed down (what does dumbed down mean again?) and enslaved to debt.

I was so worried about myself because I realized that five out of ten symptoms mentioned above fit me to a certain extend, espcially in this hectic second semester. But I don`t think I am unhappy by and large. Why?

The author answered my question in the middle of the article, saying total satisfaction can actually be a major bostacle to happiness; people who have it all must learn the art of flirting with deprivation. Ha, it seems that I don`t have this problem, because I don`t have it all. No wonder I don`t feel unhappy even when I am always worrying about lots of stuff in my life.

In search of happiness makes me painful, but it makes me wise as well, although it can`t necessarily make me happier in future.

One smart sentence I learnt in the essay: Keeping paradise at a distance, yet within reach, is a much better way of staying alive. ( Don`t push yourself too hard. )

Searching for life`s meaning

I happened to find out a book titled Searching for life`s meaning in library for my dissertation. It is in English, written by a Chiness scholar. The language is not as beautiful as those native speaker, but definitely easy to understand.

The experience of reading this book is so different from other books written by native English speakers. I can not help wondering why. Finally I figured out a kind of convincing explanation. I think for those people whose English is not their first language, they always express the ideas or emotion in their own way. The author and me, we somehow share a similar logical flow. That is why I can communicate in English more successfully with people from same region than people from farer region. That is why this world is full of “improper English”.

Improper English, which largely means strange expression and inaccurate words or phrases, has been baffled me on the way to become an eligible MAIJ student in Cardiff University. Sometimes it is so frustrating that I can not speak with British accent and write in proper English even though I keep practising everyday. Well, since language is not something that you can achieve in an action, all I can do is keeping practising and practising and practising. But there is something I should have done better: improve my accuracy with careful proofreading and pick up those vague grammar rules that I learned in high school–it has been such a long time since I studied grammar last time.

Oopse, it seems that I haven`t focus on the title “searching for life`s meaning”. I pleasantly surprised at finding out the English version of my favourite Chinese contemporary poems in this book and couldn`t help posting in my blog.  

The black night has given me black eyes,

But I use them to search for light. —-Gu Cheng “A Generation”

I Don`t Believe —-Bei Dao 

Interesting moments

Sun brings us light, moon brings us inspiration, looking at the sun without keeping out of the sunshine, you will become a blindman, looking at the moon without covering your eyes, you will become a poet.

Alcohole is a liquid of this type: it can preserve everything except for privacy.

Bachel0rs are those who can go to bed from both side of the bed. 

My Christmas Dinner

 Thai Salad   Roasted Pork

Roasted Gigot

This is the big dinner that takes 8 hours.

I deleted my post!!! Damn….

My fisrt real Christmas, bye bye….

Diageo in China–an interesting report in FT

There is none a businessman who doesn`t want to adventure in nowadays China, one of the world`s fastest-growing markets. So does Diageo, the world`s leading spirits company who owns famous brands like Guinness, Johnnie Walker, Smirnoff vodka etc..

I know nothing about Diageo plc before I was allocated to write an report about it for Gary. However, I do know the brand Johnnie Walker. Its ad in China impressed me much. “You are young and sucessful. Why not enjoy them?” “Them” refers to luxuary saloon car, gorgeous, premium drinks…Pure persuasion of splashing money for luxury goods.

The ad exposed human being`s desire of money and social status without hesitation. Indeed, more and more Chinese people are striving to earn more money and climing up for higher social status. But the ad`s unveiling our inner desire is still hardly accepted by most of us, at least not by me. “The ad is of sheer capitalism,” I thought.

It is a brand coming from a UK company called Diageo, who is itching to enter China, one of the world`s fast-growing whisky market. “Tailored for the Chinese market, the campaign relied on the idea that Chinese people are not content simply with the fact of their achievements but often seek the acknowledgment of their peers…Chinese consumers like to signal their success more overtly than those in many other countries,” said the company.

Is that ture? I believe it is true to a certain extent. We are so eager to become stronger that sometimes we crave for greatness and success too much. From leaders in government to staffs in company, they tend to boast of their achievements by druming up in media and of course, splashing wines on table–the greater success they achieve, the more expensive wine they splash.

Interestingly enough, Diageo does know Chinese consumers very well! The first, and most strategically important consumers for Diageo are “Guanxi men”–status-driven 35 to 45-year-olds for whom business entertainning plays a big role. The second are “strong independent women” aged 35 to 45-year-olds. The third group is “upward mobiles”–25 to 35-year-olds men and women who want to be seen at the cutting edge. The last group, the “choice generation”, are early twentysomethings who are eager to explore and experence something new.

Diageo introduced its strategy for expanding in China two years ago. Now Johnnie Walker has 34% of the Chinese whisky market. And there is definitely much for it to play for. According to the Scotch Whisky Association, whisky exports to China rose from 1.5m pounds in 2001 to 46m last year–almost 40 times more!!

I can`t help thinking: China is indeed a huge market!!! But, another naive thought flashed into my mind: where do Chinese people earn that much money to afford the luxuary drinks like Johnnie Walker? It must be somewhere. I hope the day that most of us can afford Johnnie Walker is coming, rather than enjoyed exclusively by the “guanxi men”.

PS. All facts coming from FT Nov. 14 2006