Inside the China Factory

I saw a mention for a new book called Poorly Made in China: An Insider's Account of the Tactics Behind China's Production Game this morning on Alexandra Harney's blog. This looks to be a vivisection of sourcing work in China.

A look at the table of contents led to a quick add to my Amazon.com list. I can't wait to read All We Need Is your Sample and Price Go Up. I expect to see Paul Trost's picture somewhere in the appendix.

If you have not read Harney's The China Price grab a copy of the new paperback edition for your next trip. These stories about the ramifications of China's role as the world's manufacturer reveal an underbelly that might shock folks not privy to the inside of the machine.

New Life for Frequent Flyer Miles

Even though I have not been on an American Airlines flight in years, I was excited to read this morning that a new AAdvantage program allows fliers to book one-way flights for 12,500 miles, half the going rate of 25,000 miles for a round trip ticket.

Anyone who has suffered the aggravation of trying to book award travel should rejoice at this development and hope the other major carries will quickly make the same move.

Are you reading this Andy?

Check out Dean Foust's BusinessWeek article for the details.

Happy travels.

Good News for Wal-Mart Shoppers

Here is gem from this week's Retailing Today Wal-Mart report.

New research shows that proximity to a Walmart store and access to low prices does not contribute to obesity. Apparently the issue was the subject of debate within the scientific community, so Art Carden, a professor of economics and business at Rhodes College in Memphis, Tenn. and Charles Courtemanche at the University of North Carolina-Greensboro, undertook a statistical analysis and discovered that greater consumer access to a Walmart store was associated with lower body-mass indexes and a lower probability of being obese. That's good news for Walmart, which can use all the help it can get when it comes to refuting some of the more absurd claims about its impact on society.

In this case, Carden noted in an article on Forbes.com that, the findings carry weighty implications. "Evidence we have accumulated suggests that Walmart does not have the sort of harmful effect on American society that its more heated detractors assert is the case."

Carden doesn't go into detail about the methodology used to arrive at that determination, but it is irrelevant anyway, since personal responsibility is the most important factor when it comes to determining weight. Let's hope funding for the study didn't come from the economic stimulus package.

Bridging the Strait?

Had to share this from yesterday's Los Angeles Times. And to think less than a year ago you could not fly between Taiwan and China.

Chinese officials urges mainland businesses to invest in Taiwan, plan purchasing mission

By Associated Press

May 18, 2009

SHANGHAI (AP) — China has outlined plans for encouraging mainland Chinese businesses to expand their investments in Taiwan, and has scheduled several purchasing missions to buy food and consumer products.

Top officials in charge of Taiwan affairs outlined Beijing's policies aimed at boosting trade and investment with the island in a forum held over the weekend in the southeastern port city of Xiamen.

China and Taiwan split amid civil war in 1949, and while Taiwan President Ma Ying-jeou's policy of allowing more investment by mainland Chinese in the island has won favor with Beijing, it has sparked protests in Taiwan.

Tens of thousands of anti-government demonstrators marched Sunday in Taiwan's capital Taipei to protest the plans. The opposition says Ma's overtures to Beijing weaken Taiwan's sovereignty and might even force the island to accept eventual unification with the mainland — a charge the president denies.

The guidelines outlined Sunday by Wang Yi, Beijing's Taiwan affairs director, urge mainland businesses to visit the island and expand their activities there.

Two mainland purchasing groups will visit Taiwan to buy fruits, vegetables, aquatic products and processed farm products, according to a copy of Wang's speech posted Monday on the Taiwan Affairs Office Web site. Three other missions in coming months will focus on buying consumer goods, foods and craft products, it said.

The aim, Wang said, was to help Taiwan weather the world economic crisis.

"We are concerned about the state of Taiwan's economy and are willing to do our best to help," Wang said.

"With the expansion and deepening of exchanges, we will make unremitting efforts to do more good and concrete things for the people of Taiwan," he said.

Industries encouraged to invest in Taiwan include electronics, telecommunications, biopharmaceuticals, marine transport, public works, trading companies and manufacturers of textiles, machinery, vehicles and others, he said.

Taiwan-funded companies, meanwhile, will be welcomed to invest in construction projects on the Chinese mainland, and tourism from the mainland to Taiwan will also be expanded to more than 600,000 visitors a year, he said.

Wang said China will also expand the number of professional fields on the mainland open to qualified Taiwanese, such as auditing, corporate legal advisers and various types of engineers, among others.

Taiwan law firms will be allowed to open branches in Fuzhou and Xiamen, two cities in Fujian province, which faces the island across the Taiwan Strait, he said.

Taiwan's president, Ma, has worked hard to reduce tensions with China, lifting long-standing bans on regular, direct transportation links across the 100 mile (160 kilometer) wide Taiwan Strait and relaxing controls on Taiwanese investment on the mainland. His administration also plans to allow Chinese to invest and buy property in Taiwan.

The two sides are working on an "economic cooperation" agreement that Taiwan has long sought, hoping to cut tariffs and expand trade.

The Best Label Ever?

Happy ten year anniversary to Ropeadope, the world’s best record label and a treasure trove of goodness on the Internet.

Founder Andy Hurwitz runs a must read daily blog that, in my experience, generally is not accessible through the China Firewall. With the same spirit in a different place Andy also operates the essential Baby Loves Music venture producing children’s music and the famous Baby Loves Disco parties.

Thanks Ropeadope and Andy for ten years of passion and inspiration.

Here are my top three albums. I would purchase each of these immediately if I were you.

The Word. A supergroup performance of John Medeski, the North Mississippi All-Stars and prodigy Robert Randolph building on the Sacred Steel music of the House of God church. This album is inspirational and awing.

The Philadelphia Experiment. An early Ropeadope offering teaming Philly heavy weights Uri Cane, Ahmir Thompson (aka ?uestlove), and Christian McBride. This will never leave your car.

Project Logic. A mind blowing whirlwind of sound based around turntable pioneer DJ Logic. I think this is now out of print, so check out the live release of Project Logic Live at Wetlands, NYC for a listen. This band begins with the feel of On the Corner or A Tribute to Jack Johnson and takes it to a whole other place.

Population Reality Check

(Click for large image)

Thanks to the Economist for this excellent graphic of the “old age dependency ratio” in select countries. This is real indication of the changes ahead in business, government and society in general in the years ahead.

April Retail Sales - End the Week on a High Note

Thanks to Retailing Today for this graphic of April comps for key retailers.

Keeping in mind that may of the players on the bottom rung beat expectations (JCPenny for example gave guidance their comps would run -9 to -12% but actually hit -6.6%) , this is not a bad way to end the week.

New Chiang Kai-skek Biography

Today's Economist has a review of Jay Taylor's new biography The Generalissimo: Chiang Kai-shek and the Struggle for Modern China. Looks fascinating.

In Taipei? The National Palace Museum is the show stopper but the Chiang Kai-shek Memorial Hall is a must see as well.

Food Bits - Delicious Kabob and Lee's Bakery

A few Buford Highway culinary adventures to report on!

Thanks to Ashley Chang for power lunch at Delicious Kabob last Friday. This newcomer is hot with the Atlanta Gasto Elite for good reason. View this experience as a two prong affair - mandatory meat kabobs (from non-Han Northern China) as starters and Szechuan delicacies from the main menu as entrees.

We started out with lamb and squid kabobs that arrived at our table right off the grill in the front of the restaurant. I am not a huge lamb fan but this was the best I have ever had. Spicy and crunchy without being over powering or too gamy. The squid had the same spicy effect with just the right snap. You squid fans know what I'm talking about.

For our main course we ordered crispy fried beef with chili (very good), greens/vegetables (usual fare) and dry fried eggplant (life changing). As an eggplant obsessive I can honestly say that eating these perfect strips (almost like french fries) covered in red chilies made me reexamine the universe and my place in it.

Delicious Kabob is a must! Just keep the GPS on and your eyes open or you will sail right past it.

Yesterday Shannon and I enjoyed Vietnamese sandwiches (bánh mì) at Lee's Bakery. A byproduct of French colonial times, the bánh mì is a delectable combination of the perfect baguette and a variety of meats and spices providing the Vietnamese side of the sandwich equation.

Lee's is famous both for the quality of their sandwiches and great prices. Take aways are less than $3.00 each. We opted for chicken sandwiches and loved the sensation of the prefect crunch-and-release of world-class bread followed by a spicy, cilantro laced kick before hitting tender, well seasoned chicken.

A great deal and a great meal. Next trip I will man-up and get the original headcheese version.

Peace in 2010

Business travelers, tourist and natives alike (especially Chris Arnold) are happy at today's report that Shanghai landmark the Peace Hotel is on schedule to reopen in March of 2010.

A little of the history of the Bund. I recommend Stella Dong's

Shanghai : The Rise and Fall of a Decadent City 1842-1949 for your next plane ride. This is an entertaining history of the days of anything goes Shanghai complete with vice, larger than life charters and the struggles leading to the formation of the modern PRC.

Hot Off the Presses

May Day in China is not the same without the Golden Week holiday, but celebrate anyway by exploring the Global Times.

This new English language newspaper goes head-to-head with the existing English language broadsheet China Daily. While I have the feeling the competition between government outlets will be minimal, I do prefer the layout of the web version of the newer publication.