Suning: China’s New Walmart? 苏宁:中国的下一个沃尔玛?

Chinese media are buzzing this morning with reports that retailing giant Suning (Shenzhen: 002024), a name synonymous with electronics, is preparing a major push into general merchandising, laying the groundwork to create a retailing giant that could someday challenge the likes of Walmart (NYSE: WMT) and Carrefour (Paris: CARR). According to the reports, Suning will start its newest retail drive by converting four flagship stores in Beijing, Shanghai, Guangzhou and Nanjing into the new general merchandising format, which will be rebranded as Suning Expo. (English article; Chinese article)

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Chery, Jaguar in PR Push for JV Approval 奇瑞、捷豹开展公关,争取合资企业获批

Six months after announcing their plans for a joint venture, fast-fading domestic car maker Chery and its luxury partner Jaguar Land Rover are playing a PR game as they try to get regulators to approve their tie-up. Both companies desperately want to see this venture move forward for their own reasons. Chery needs the venture to breathe new life into its business as it faces a growing number of setbacks both at home and abroad. Jaguar also desperately wants to boost its presence in the world’s fastest growing luxury car market, where the big German names are already well established and US giants Ford (NYSE: F) and GM (NYSE: GM) are also planning new initiatives.

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China Mobile Seeks Partner in TD Misery 中国移动谋求让电信或联通分担TD之痛

More than 3 years after receiving the booby prize when China awarded its 3G mobile licenses, China Mobile (HKEx: 941; NYSE: CHL) is still sulking about being forced to build a network based on a problem-plagued homegrown Chinese technology and now wants one of its rivals to share the misery. That’s my broader interpretation of the latest reports that say China’s dominant mobile carrier is lobbying hard for the industry regulator to force one of its 2 rivals to build a future 4G network based on the problematic technology, known as TD. (English article; Chinese article)

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News Digest: September 4, 2012 报摘: 2012年9月4日

The following press releases and media reports about Chinese companies were carried on September 4. To view a full article or story, click on the link next to the headline.
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  • Baidu (Nasdaq: BIDU) to Spend 10 Bln Yuan on Cloud Computing Center – CFO (Chinese article)
  • China Mobile (HKEx: 941) Wants China Telecom (HKEx: 728) to Adopt TD-LTE -Source (Chinese article)
  • Suning (Shenzhen: 002024) Flagship Stores to Carry General Merchandise (English article)
  • McGraw-Hill, New Oriental (NYSE: EDU) Unveil College Readiness Program for China (PRNewswire)
  • Renren (NYSE: RENN) Eyes E-Commerce, Mobile Games, Seeks Acquisitions (Chinese article)

Excerpts

On understanding the media’s mandate to promote the Communist Party’s agenda:

(From Chapter 1 — The Agenda: Telling the Party’s Story)

A helpful metaphor to understand the world as depicted by China’s media is the classic family portrait. This highly choreographed photo has mother and father at the center surrounded by their sons and daughters, everyone cheerful and smiling. Nowhere is there any sign of the many conflicts that most such families have, from minor issues like everyday fights between siblings to deeper resentments due to different priorities. All of those negative elements have been left from the portrait, even though they exist and are very real factors for everyone within.

As head of the Chinese “family,” the Communist Party uses China’s media to show the world as a harmonious place – one where farmers and factory workers smile and whistle while they work, where scientific and economic achievements abound and where the party is a source of comfort and assistance in times of trouble. Seldom is there mention of the constant power struggles taking place behind the scenes, or of smaller embarrassments like the naming in 2010 of a jailed dissident as China’s first Nobel Peace Prize winner, to say nothing of major screw-ups like the Great Leap Forward – an agricultural disaster of the 1950s that saw as many as 40 million people die of starvation during one of Mao’s many disastrous initiatives under its centrally planned economy.

China’s media is a sort of window onto the soul of the Communist Party. It contains the party’s message of the day, its broader agenda and information on how it aims to achieve its goals. It also contains messages – some straightforward and others more veiled – of what is and is not acceptable, and what happens to those who make trouble. Equally important is what’s NOT reported, be it an event that’s considered taboo or an official who has fallen out of favor. By understanding China’s media and how and what it chooses to report, one can start to understand not only the Communist Party’s agenda, but also its hopes and insecurities, what it sees as its accomplishments and shortcomings, and how it plans to lead the world’s most populous nation and second-largest economy through the 21st century en route to becoming the next global superpower.

—-

On how the government exercises its control:

(From Chapter 2 — Spread the Word: The Machinery)

To make sure its media message is properly and uniformly delivered, Beijing has developed a well-oiled machine to craft and control that message by making decisions at the top and letting those coverage guidelines filter down to the provinces with ever-increasing speed. Cogs in the machine are many and varied, ranging from placement of a Communist Party secretary in the top ranks of most major media, to frequent phone calls and memos sent by the Propaganda Ministry to senior editors at those same media. The message-crafting machinery has moved in step with the media’s own changing role over time, ebbing and flowing with the level of central control in the sixty years since the founding of the People’s Republic.

In its very early days, the Communist Party took a surprisingly relaxed view toward the media, both from political and commercial standpoints. Immediately after 1949, a large number of smaller political parties, many sympathetic to the Communists, were allowed to keep publishing their own newspapers and magazines with their own political views. The two sides had an understanding: the smaller parties had no designs on power or governing, which would be the exclusive terrain of the Communist Party. Instead, the smaller parties reserved the right to constructively criticize the government’s policies, acting as a benign watchdog to keep the Party honest and moving in the right direction.

That relatively enlightened situation lasted for only a few years into the 1950s, when Mao discovered he wasn’t as fond of criticism as he had previously thought, especially when the criticism was directed at some of his pet projects like the collectivization of farms that would ultimately lead to the catastrophic Great Leap Forward of 1958-1961, which saw millions die of starvation. As Mao and the Communists became increasingly uneasy with the criticism and plurality of the earliest media landscape, most of the smaller party papers were either gradually shut down or gutted of their critical voices and replaced with the centrally controlled system that came to characterize China for much of the 1960s and 1970s, where all media, regardless of their stated political affiliation, became little more than bullhorns to tout the Communist Party’s latest accomplishments and promote its initiatives. …

Most recently, the Internet has become another major media force, with China officially surpassing the US in 2008 to become the world’s biggest online market based on the number of Web surfers. In this new Internet age, Beijing has conceded some degree of control with the explosion of huge volumes of online content on blogs, message boards and other Web sites that are impossible to monitor closely. But the government hasn’t completely relinquished its role as opinion leader, designating nine Web sites in 2000 as flagships of China’s official online news. In making that decision, it instructed newspaper editors nationwide to closely follow those nine, which included Xinhua, the English-language China Daily, and People’s Daily, making them the party’s official online voices. It also still closely monitors the Web, and attempts to strategically “seed” online discussions that promote its agenda in various blogs and chatrooms.

Reviews

At a time of unprecedented diversity and fluidity in China’s rapidly evolving media in the Internet age, the struggle over the future of Chinese journalism is one of the great unfolding dramas in that country’s epic emergence as a global power.

Doug Young draws on more than two decades of experience as a teacher, traveler and foreign correspondent in the region, combined with prodigious archival research in Mandarin, to provide a comprehensive primer on the Chinese Communist Party’s decades-old system of control and manipulation of the news — from the Korean War through the Cultural Revolution and from the Tiananmen protests down to today’s increasingly anarchic new media landscape.

Informative, insightful and appropriately skeptical of all sides, Young has opened an invaluable window into a formidable monopoly of information which — millions of Chinese are only now beginning to hope — may finally be starting to erode.

Bill Berkeley, adjunct journalism professor at Columbia University, former New York Times editorial writer

 


 

The Party Line” is essential reading for anyone who wants to understand the way the media works in China. Young has penned a fascinating account of journalism in the world’s most populous country, where reporters are viewed as equal-parts writers and intelligence gatherers and the media continues to play a central, albeit evolving role in conveying the Communist Party’s message.

Anyone who’s ever wondered about the SARS news blackout, the media’s role in the Tiananmen Square student movement crackdown or, more recently, Google’s pullout from the Chinese market, will gain insight into these topics and more from a Western journalist who spent more than a decade working as a reporter in China.

Lori Streifler, Editor-in-Chief, City News Service of Los Angeles Inc.

 


Most people assume Chinese media just dutifully tout the Party line, since almost all are owned by the State. But as Doug Young explains, the reality is much more nuanced. Chinese journalists are in theory the eyes and ears of the Party. Yet with commercial pressure they also play a cat-and-mouse game with censors to win readers.

Young, who is a fluent Mandarin speaker, provides insightful and thought-provoking analysis through dozens of carefully gathered accounts from local journalists. “Party Line” is a useful read for anyone who wants to understand the changing roles played by modern Chinese media.

Wei Gu, Greater China Columnist, Reuters Breakingviews



From Xinhua’s part CIA-like role to increasingly intrepid newsgathering in the time of SARS and the Internet, Doug Young’s book is an absorbing and comprehensive look at China’s unique media landscape.

Mei Fong, Pulitzer-prize winning former Wall Street Journal China correspondent; adjunct professor, University of Southern California

News Digest: September 1-3, 2012 报摘: 2012年9月1-3日

The following press releases and media reports about Chinese companies were carried on September 1-3. To view a full article or story, click on the link next to the headline.
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  • Sohu (Nasdaq: SOHU) in Talks to Buy South Korean Entertainment Firm – Source (Chinese article)
  • Sina (Nasdaq: SINA) Appoints Charles Chao to Chairman, Plans Charity Foundation (PRNewswire)
  • Vancl’s Rufengda to Close Branches in 20 Cities – Market Talk (English article)

Vancl Slashes Delivery Arm 凡客诚品削减物流业务

The latest sign of distress in the battered e-commerce sector is coming from online clothing retailer Vancl, with media reporting the company has slashed operations at its package delivery arm in what looks like a desperate cost-saving move. Frankly speaking, I wholeheartedly support this kind of move, if it’s really true, as I personally believe that e-commerce companies shouldn’t be delivering parcels to begin with, and instead should leave that part of the business to professional specialists like UPS (NYSE: UPS) and China’s own China Postal Express, which itself is preparing for a domestic IPO to help fund its ongoing expansion. (previous post)

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New Oriental: Investors Get Short Seller Fatigue 新东方股价回升 投资者对卖空机构失去耐心

The accounting scandal surrounding education services firm New Oriental (NYSE: EDU) continues, with a US law firm announcing a class action lawsuit against the company after its shares plummeted when it disclosed it was being investigated by the US securities regulator. (lawsuit announcement) But in what may be a positive development, it appears that investors have largely ignored many of the claims made by an opportunistic short seller immediately after New Oriental’s original disclosure. That means that after more than a year of watching a non-stop stream of short seller attacks that have hammered overseas-listed Chinese stocks, investors may finally be growing skeptical of such attacks and their accusations of accounting misdeeds.

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China Ends UnionPay Monopoly 中国结束银联垄断

Beijing made the right decision last week in deciding not to oppose a World Trade Organization ruling that it unfairly supported its domestic UnionPay financial transactions network at the expense of foreign rivals like MasterCard (NYSE: MA) and Visa (NYSE: V). Now it needs to show it is prepared to wean its other big industries from unfair state support, starting with the unrelated solar energy sector that has recently become a major source of friction between China and its major trading partners.

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Baidu Takes Qihoo Battle to Customers 百度要求代理商切断与奇虎360关系

The blossoming war between Internet search leader Baidu (Nasdaq: BIDU) and challenger Qihoo 360 (NYSE: QIHU) is becoming more colorful each day, with Baidu resorting to some interesting new tactics to defend its market dominance. In the latest wrinkle of this fast-developing story, Baidu appears to be asking many of its corporate clients to cut their ties to Qihoo, in what is looking like an increasingly dirty war where either side will do anything to attack the other.

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