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Days 6-13 – Shanghai Hooters, Mao’s Revenge, and rotten cell phone companies

1 view from the apartment 1

Day 6 – Woke to steady rain after a fitful sleep. The Chinese believe in sleeping on hard beds, as it is supposed to be good for you. And when I say hard, I mean sheet of plywood hard. And how having your hips so sore you can barely get out of the bed in morning after tossing and turning all night is supposed to be good for you beats me. We will be upgrading the mattress shortly.

View from the apartment window.

1 view from the apartment 1

2 view from the apartment 2

And though it feels cold here because of the damp, it is about 62 F. Salem, VA was in single digits in comparison. The company apartment is decorated with Chinese art (Mike has good taste). We even have a life sized terracotta warrior.

6 this guy startles me everytime

4 love the screws

5 ill have one of these in va soon

Our apartment complex

11 the fountain

he walk to the office takes maybe 5-6 minutes. The rain was coming pretty hard and the wind overwhelmed the umbrella. One thing you notice about side streets like ours is how poorly they are sloped to drain the water. Makes for enormous puddles.

Stopped at my snack shop for dumplings and a tea egg. I make tea eggs at home, and they are just that – eggs boiled in tea, dark soy sauce and spiced with star anise. The flavor is very subtle – it is 90% a regular hard boiled egg, but the last 10% makes all the difference.

12 tea egg for breakfast

Worked the morning in the office, and then had lunch at the restaurant around the corner. It has a few dishes that are wonderful, but is certainly not fine dining. The highlights:

Day 6 lunch best use for broccoli

Day 6 best use for squid

Back to work until late in afternoon, then I head to Futian district to take an old friend from Taiwan to dinner at an Italian restaurant. We were the only ones there, so service was exceptional, as was the food, as was the wine, AS WAS THE PRICE. Dinner for two cost 7 times as much as dinner on the street the night before! Luckily she is bringing some of her USA friends to PassageMaker, it was a legit business dinner, but man it is easy to get spoiled by the cheap food over here. I figured we all know what Italian food looks like, so I’ll spare you photos of gnocchi and tiramisu.

Day 7 – A clear day, rain has stopped. It’s knocked the smog out of the air, so a bright blue morning.

Day 7 morning

Day 7 street-scenes

Off early to our Assembly Center in Buji. I’m working on continuous improvement initiatives there as part of our new ISO 9000:2008 certification, something we achieved just last month. My background is in manufacturing, and since we are gearing up for what we think will be a very strong 2010, Mike asked me to come over and assist with introducing the alphabet soup of kaizen related initiatives – 5S, JIT, OJT, etc. Meet and greet the staff, which is dominated by women at the manager level. Only one man on the senior staff. You are seeing more of this in China, but my impression is PassageMaker is ahead of the curve here. On to lunch, which is fabulous as usual.

Day 7 an even better use for squid1

Day 7 best use for duck

Day 7 i love these little fish

Day 7 man they do vegetables well

Day 7 you have to get used to your food staring at you

On the way out, we passed the fish tanks that hold the seafood fresh and alive until it’s time to cook it. Everything in China is prepared fresh.

Day 7 if id known they had had geoduck

Day 7 duck fish

Later that afternoon we headed back to the office to pick up Julien Roger of China Quality Focus, our sister company. Mike, Julien and I flew to Shanghai for the Global Sources trade show, a trip that wasn’t scheduled for me when I came over, but I’m glad I went. The show went well and I’ve never really been to downtown Shanghai before, just the industrial area around the old Hongqiao airport. We flew into the new Pudong airport and I am convinced the planning went something like this – “To demonstrate the greatness of the People’s Republic of China, we will build the longest airport in the world!”. We landed late at the last gate and walked for 10 minutes in a straight line down the terminal until we got to the baggage claim area. This is a seriously long building. And thoughtfully they included no people movers like the trams at the Detroit airport. Considering the late hour and the lack of other arrivals, you’d think they could’ve found a found a gate closer to the exit.

Heading to the hotel, Ibis, a chain of affordable hotels owned by Novotel, a French company, what struck me about Pudong at night were the vast highways. Six to eight lane interstate grade roads as compared to the cramped streets typical of most Chinese cities. Pudong was farmland just a few years ago, and it definitely has a planned feel.

Although they fed us on the plane (a 2 hour flight with meal service – haven’t seen that in the States in decades), Mike and I were still hungry, so we found an American bar, Malone’s across the street and had a very good hamburger while listening to a GREAT Filipino cover band. Every bar and hotel in China has a Filipino band, all playing English cover tunes, even when the clientele is Chinese. And nearly all of them suck. This was an astounding exception. They were tight and the covers were quite good, including good hard rock and heavy metal. The singer had some serious pipes.

Back at the hotel, I noticed the bathroom is a pre-fabricated assembly. Smart idea for a chain. It was one of the nicer bathrooms I’ve had in China.

Day 7 pre fabed bathroom

 

Day 8 – After the best night’s sleep so far, up early to get to the show and set up the booth. On the way to the convention center, I saw this:

Day 8 just bizarre

They switched us at the last minute to give us a corner booth, which meant we had to cut up the posters to make them fit. I think the booth looked pretty good, considering.

Day 8 our booth

I’ve been to a fair number of trade shows over the years. Heavy truck shows are dull unless you really like trucks and truckers, car shows are fun, and motorcycle rallies are a blast. But in every case before, I was selling a product. If the guy’s got a Road King we have something for him, but not if he has a Dyna. We’re on this model of Peterbilt, but not that one. But now that I’ve done it, nothing beats selling a service. EVERYONE doing business in China needs Quality Inspections, Product Testing, Sourcing Feasibility Studies, Vendor Coordination, Intellectual Property Protection, Logistics and Assembly Inspection & Packaging. The industry doesn’t matter, they all needed at least one of our services. This was a gift and clothing fair, but it is the same at every show. It’s like we are selling beer at a NASCAR race. We got business cards from USA, France, Australia, Saudi Arabia, Venezuela, Israel, Nigeria, Iran, South Africa, New Zealand, etc.

Mike is a featured speaker at every Global Sources trade show (including Dubai, Hong Kong, Mumbai and South Africa this year), and he gave a two-part presentation spread over the first two days of the show. He did a great job and it was extremely well received by the standing room only audience. Rather than a canned sales pitch, he tells it like it is, barely mentioning PassageMaker or China Quality Focus. The soft sell works and many attendees stopped by the booth afterward to tell us so. They figure anyone with enough confidence to NOT shove his company down their throats must have it going on. And they are quite right. We do.

Day 8 mike is featured speaker

Day 8 mike giving his presentation

Julien Roger is also a tremendous salesman and very knowledgeable. I learned a great deal from watching his methods. Selling China Quality Focus’s services is easier, as Quality Inspections are very straightforward compared to PassageMaker’s services, but the combined message of the two companies meshes very well. We often have the same customers.

The convention center is still under construction and gigantic. As with the airport, the point seems to be making you walk as far as possible to get anywhere. Despite the impressive size, they apparently forgot about effective HVAC. It is unseasonably cold and I packed for south China. Day 1 of the show had no heat at all, which made it a real grind. Day 2 was a little warmer, but still uncomfortable. By Day 3 they’d gotten it going to the point it was now actually hot inside. HVAC needs some work for sure.

They also have very little in the way of food. The restaurants inside looked just plain bad, serving cold rolls and sandwiches wrapped in plastic like a vending machine. However, there was a McDonald’s right across from our hall, W2. It turned out to be the world’s smallest McD’s, about the size of a broom closet, with one little girl selling horrible looking “chicken sandwiches” out of coolers. I put that in quotes, because they were actually pork. Menu says chicken, she will say in English it is chicken, the box says chicken, but she insisted in Chinese that they were pork. We passed and were directed to the other McD’s at W5.

W5 is an international airport runway away from where we were. In 30 F weather, I was not interested in the walk, but there was nothing else, so walk we did. Entering W5 was a shock as it was still under construction, freezing cold and reeked of paint fumes. The McD’s was even colder than the rest of the building. It was a huge McD’s, brand new and manned by an army of eager young staffers in winter parkas. McDonald’s can’t heat their own place. It was also completely deserted. We were it for customers stoopid enough to walk that far in the cold for genuine simulated food. Our “food” in hand we sat down to eat our rapidly cooling cheeseburgers (with cucumbers instead of pickles) in 25 F comfort, huffing paint. Then the staff helpfully turned on the Backstreet Boys at headache inducing volumes to entertain us, because what lao wai doesn’t love the Backstreet Boys? We’d shout over the music to tell them to turn it down please. And they would, just a little. As it was the only food around, we ate there all three days of the convention. Our experience was exactly the same each time, including the yelling over the music to turn it down. Note to China: the progress over the last 30 years has been astounding, but build convention centers with decent places to eat and heaters.

Day 8 holy crap this place is big

Day 8 holy crap this place is big 3

Day 8 holy crap this place is big 2

Day 8 this is the smallest mcds in the world

Day 8 why put the real mcdonalds as far away as possible

Day 8 w5 under construction

Day 8 way to plan fellas

The interior of the McD’s was just as bizarre.

Day 8 mcds posters wtf

Day 8 mcds posters wtf 2

Day 8 mcds posters wtf 3

Day 8 rarest sign in china

With the first day of thee show successfully behind us, we head out into a bitterly cold Shanghai sunset.

Day 8 shanghai sunset

For dinner, we are off to meet friends at Shanghai Hooters. Yes, really. This turns out to be loads of fun. Mike, Julien and I meet up with one of our sales reps, Dan Welygan, who worked in our Shenzhen office for about 4 years. Also in our quintet is a classmate from the University of South Carolina now living in China. Many, many wings and beer later, I have a new found appreciation for Hooters. It was a bold decision to open this restaurant, as typical Chinese girls lack the requisite body type required of a Hooters waitress. And they have to be attractive and be able to speak English. A pretty small labor pool. Our waitress was very good, spoke solid English and really new how to work a room. A very bright young lady, she has a future in sales for sure.

Day 8 our waitress elva

Day 8 hard to find hooters in chinaDay 8 hard to find hooters in china

Day 9 – Second day of the show went as well as the first. Part two of Mike’s seminar was very well received and many of the attendees have stopped by the booth, several 2-3 times. After the show, we meet our web developer, a French graphic designer living in Shanghai, at a trendy coffee shop for sandwiches. This place was in a glittering new mall, still decorated for Christmas. My cameras does a poor job in low light, so my apologies for the quality of the photos.

Day 9 christmas decorations

Day 9 first of two ferraris in 2 minutes

Day 9 yep thats a christmas tree

Day 9 this is what irony looks like

So far no Chinese food in Shanghai. After the meeting, off to meet another USC classmate at The Boxing Cat Brewery, the nicest brewpub I’ve ever been to. As I was once in this business, that is quite a statement. It was in a 100+ year old home in the old part of Shanghai, beautifully refurbished. The brewpub was 3 stories, with a bar on the 1st and 3rd floors. It felt exactly like a British pub, with beer selection and menu to match. Since we had already eaten we did not order anything, which now that I know the chef was trained at Le Cordon Bleu in Paris, I heartily regret. I have a feeling it will not be my last trip. My, how far this country has come in just a few short years. However, even The Boxing Cat has moments that confound.

Day 9 were the heck do you want me to put it

Day 10 – Last day of show, and the pollution is pretty bad today. Traffic is light, and some exhibitors start packing up almost from the opening bell. We stayed until nearly the scheduled end at 5:30 PM, though we give up when they start dismantling the booth around us at about 5:10 PM. Global Sources has been good to us and we thought it the honorable thing to do to stick it out to the end, though honestly the show really ended around noon. Off to Pudong airport (which is even more gigantic from the outside and has the coolest road system connecting it I’ve ever seen) to catch our flight to Shenzhen. Our first Chinese meal of the trip is some very good Cantonese cuisine at the airport.

Day 10 shanghai pollution

Day 10 always a bad sign when the gates are in triple digits

 

Day 10 cantonese food chinese airport food is much better than usa

Day 10 cantonese food chinese airport food is much better than usa 3

Day 10 cantonese food chinese airport food is much better than usa 2

Day 11 – Worked all day to get caught up from the show. Verizon’s data service here stinks, a pale comparison to my old AT&T service (of course, that is reversed in the USA, which is why I switched). Many emails did not come through to my blackberry. I also discovered that Verizon is charging me $2/minute to RECEIVE CALLS. This was one of the specific questions I asked before adding the “China plan” for this trip. I have already written about how woefully trained their salespeople are, and this takes the cake. Since the trip began, I have been receiving calls from clients, family and friends – including a call a 3 AM from a client who had missed I was not in USA. My team in the USA is having words with Verizon about this, but let’s just say, it was a cute phone bill. China Mobile by comparison, charges nothing to receive an international call. Heck, their rates to MAKE an international call are less than Verizon. So, if you want to get in touch with me, send me an email and I’ll give you my China Mobile number.

I join Mike and Adam Supernant for dinner at a local place in Liantang.

Day 11 chinese donuts I like the fried ones steamed ones not so much

Day 11 gross

Day 11 very common to have fire at the table

Day 11 quite tasty tofu and pork

After dinner I was invited to join some of our Chinese co-workers at a nightclub. I was flattered to be invited and went along. After several hours, I had my first run in on this trip with the dreaded Mao’s Revenge. I am trying to tell it like it is for those of you who don’t travel overseas, and if this strikes you as TMI, it isn’t. You need to know what you are in for.

While western style “sitters” are becoming more common, squatters still dominate. In a sense this is good, as sitters are not as sanitary ( I mean, everyone else is sitting there too). But when you’re in an emergency situation and you are not used to squatters, this can get dicey fast. My advice for survival in these situations:

  1. Wear sensible shoes with good rubber shoes – I prefer Blundstones.
  2. Wear jeans. Avoid khakis – not the color issue but the way the pockets are cut. I always keep everything – wallet, keys, passport, phones – in the front pockets of my jeans.
  3. This is a very uncommon position for a Westerner. I have pretty strong calves and thighs, and have learned how to balance, but if you never done it before, try it and hold the position for 2-3 mins. It takes some getting used to and you don’t want to find out the hard way you can’t do it. Luckily the squatting position is more conducive to the situation at hand, and so things tend to go quickly.
  4. Carrying a small packet of tissues is a good idea. Toilet paper in a public restroom anywhere in the world is never a given. Handkerchiefs and socks (single use of course) will do in a crisis.
  5. Carry a bottle of prescription Lomotil or the generic. I always do and there is no OTC medicine that comes close. It WILL stop the drama.

My evening cut short, off to sleep. Day 12 is Sunday, market day in Liantang, and Mike and I head to Mian Dian Wang, or “Noodle Snack King”, my favorite fast food chain in the world. 14 line cooks actually making the food by hand. Total cost of the meal is about 60 RMB, or less than $9.

Mian dian wang

Day 12 mian dian wang

Day 12 mian dian wang 2

Day 12 mian dian wang 3

Day 12 mian dian wang 4

That evening, Mike threw a dinner party at his home. It was great to see old friends and an even better meal. Simply the best food I’ve ever eaten in China. Mike’s wife and the maid did all the cooking.

Day 12 two women in this kitchen in about 2 hours..

Day 12 two women in this kitchen in about 2 hours.. 2

Day 12 made this

Day 13 – Monday – Last night there was a little too much “medicinal wine”. Whenever you hear that phrase, run screaming in the other direction. After such an amazing meal, we needed something basic to calm the acid seas, so off to Subway (yes, really). A steak and cheese later and all is right with the world. With some lingering Mao’s, I head to the apartment to work from home. It was a glorious day, 70 F and clear blue skies with a light breeze.

Day 13 our apartment complex

Later Mike asked me over to finish up the leftover ingredients from the dinner party – there was no left over dishes, just raw materials. This is the modest result.

Day 13 a light meal

Two customer visits tomorrow and time at the factory.

All for now…

 

Further thoughts on “Karl Who?”

Yesterday’s post discussed the possibility of the PRC as the world’s first mature fascist state. I received a number of comments, including this from Adam Supernant in our Shenzhen office:

I wouldn’t call China fascist (fascists were xenophobes; there’s not much of a racial superiority kick in China) but it’s also not Communist…I think the political title they gave to KMT China – “paternal autocracy” – is my favorite term.

There’s some food for thought: how similar China today is to the KMT-ruled state of the 1930s and 40s. That’s the first thing I thought when I heard about the gang busts in Chongqing last month. A tenuous connection, but I’m a big fan of KMT history so I’ll see connections anywhere.

There is a strong current of (Han) Chinese “exceptionalism” in Chinese culture, which makes a sound parallel to the nationalist xenophobia characteristic in fascist systems. It is interesting though that I’ve felt this in Taiwan more so than the PRC, which makes Adam’s KMT thought even more intriguing.

In either case, “communist” is no longer an accurate label.

Is China headed toward collapse?

A friend sent me this interesting article by Eamon Javers in Politico.

Anyone who’s traveled in China knows there is substantial over-development. Gleaming new skyscrapers sit empty and the amount of factory over-capacity is staggering. Is the PRC a house of cards? In a sense, yes. The development over the last 30 years has been hugely successful, but the annual income for the vast majoirty of the people is still not high enough to turn them into consumers in the model of the West. The consumerism in the coastal mega-cities does not extend very far inland. It is true they still depend on exports to drive their economy.

The article focuses on the demand side of the equation. PassageMaker’s focus is on the supply side and the reality is that the manufacturing capability of China is here to stay. That over-capacity will serve to keep prices low and I don’t see how the “world prices” will be set anywhere else. I do not see India stepping up to take China’s place. With the dissolution of so much of the American manufacturing sector, to say nothing of regulations and taxes that make it unattractive to run a factory in the USA, where are you going to make products? I doubt the current administration in Washington will have a change of heart and encourage the opening of new coal mines, power plants, steel mills, etc.

Is China weaker than it appears? I would say yes, but that does not mean it is going to implode. We are all in for a rough ride the next few years, all of our own making, but China has cash and industrial capacity and I personally believe they can weather the storm. PassageMaker is hedging its bets by proceeding with plans to open another Assembly Center in Mexico, but there are no plans to exit China.

Even if the financial crisis leads to social unrest, the people of China have seen over the last 30 years what they can accomplish. While there are hundreds of millions of peasants in China, there are also now millions of managers, engineers, businessmen, entrepreneurs, etc., and they are not going to vanish. PassageMaker is planning for long-term growth and so far I think we’ve chosen wisely.

China cutting capacity

I’m your cult of personality

I was a fan Living Colour 20 years ago, and this article today made me think of their first hit.

I’ve never understood the personality cult of Mao in China, not least because Deng Xiao Ping deserves the credit for what China has become since Mao’s death. It always seemed to me they idolize the wrong person. I mean 70 million people is more than a rounding error.

So I get it that the Chinese excel at hagiography, but this is just bizarre. I honestly don’t know what else to say.

I hope Obama’s visit goes well and we can avoid a trade war with China. Given the amount of American debt they hold, our ties with China are more important than ever. The world economy is fragile enough.

This is just too funny

OK, so I’m feeling lazy today, but there really isn’t anything I can add to this (from Popular Science):

China’s Weather Manipulation Brings Crippling Snowstorm to Beijing

By Clay Dillow Posted 11.11.2009 at 6:08 pm
Forecast for Beijing: Cloudy The Chinese government employs the controversial practice of cloud seeding in an attempt to force precipitation in and around Beijing.

In The People’s Republic of China, it’s no secret that the Party controls just about everything. But as Beijing suffers through its second major snowstorm this season, residents are growing weary of their leadership’s control-freak tendencies. After all, while the storm came as a surprise to residents, the government knew about it all along. In fact, the government caused it.

China has long tinkered with Mother Nature’s waterworks, even establishing a state organ — the Beijing Weather Modification Office — whose sole purpose is to meddle with the weather. The purpose behind weather modification is less megalomaniacal than it sounds at first pass; a large swath of northeast China, including Beijing, has been mired in a drought for nearly a decade, and the party leadership would like to reverse that trend for both practical reasons and to show the Chinese people exactly who is in charge.

To do so, they’ve turned to cloud seeding, a controversial practice that involves launching (or dropping) chemicals into the atmosphere — silver iodide in China, though dry ice and liquid propane also work — that cause water vapor in the air to crystallize at temperatures it otherwise would not. Its effectiveness is dubious; while it’s generally accepted that it works to some degree, it can only increase precipitation by 20 percent. Sometimes.

Weather manipulation is actually not as rare as one might think. Currently, 24 countries practice some kind of cloud seeding. Moscow’s mayor keeps the Russian Air Force on cloud seeding duty to make sure it never rains on his parades (literally). The U.S. has dabbled with weather manipulation in attempts to curb the intensity of Gulf hurricanes back in the ’60s, and the military seeded clouds over North Vietnam during the war there to extend the monsoon season. Oh, and the CIA seeded clouds in 1969 in an attempt to rain out the hippies gathering at Woodstock, but they partied right through it anyhow (that instance is unconfirmed, but groovy to think about).

China prefers to deliver its silver iodide to the sky via rockets or artillery. For the residents of Beijing, those armaments deliver all the headaches that go along with big snowstorms: traffic problems, flight delays, cancelled classes and various transportation issues. While the government claims the seeding is for the good of the country, that claim is about as dubious as the practice of seeding itself; in 2005, a snow melting agent killed 10,000 trees in Beijing, and experts worry it could be eroding the city’s infrastructure. As of last night, highways in and around Beijing were closed and many roads were blocked, bringing day-to-day commerce to a grinding halt.

And the wall came a-tumblin’ down…

Twenty years ago today the Berlin Wall fell. I remember being in joyful shock, not entirely sure what it meant, but knowing that it was good. My parents remember where they were when JFK was shot; I remember the juxtaposing endpoints of the Cold War in 1989 – the political repression of Tiananmen in June (later followed by the economic freedoms that have created the modern China), and the collapse of the Evil Empire that began with the fall of the Berlin Wall.

1989 was indeed an amazing year to be alive. Ross Douthat has an excellent op/ed in today’s NYT (free registration may be required):

For most of the last century, the West faced real enemies: totalitarian, aggressive, armed to the teeth. Between 1918 and 1989, it was possible to believe that liberal democracy was a parenthesis in history, destined to be undone by revolution, ground under by jackboots, or burned like chaff in the fire of the atom bomb.

Twenty years ago today, this threat disappeared. An East German functionary named Günther Schabowski threw open his country’s border crossings, and by nightfall the youth of Germany were dancing atop the Berlin Wall, taking hammers to its graffiti-scarred facade. It was Nov. 9, 1989. The cold war was finished.

There will be speeches and celebrations to mark this anniversary, but not as many as the day deserves. (Barack Obama couldn’t even fit a visit to Berlin into his schedule.) By rights, the Ninth of November should be a holiday across the Western world, celebrated with the kind of pomp and spectacle reserved for our own Independence Day.

Never has liberation come to so many people all at once — to Eastern Europe’s millions, released from decades of bondage; to the world, freed from the shadow of nuclear Armageddon; and to the democratic West, victorious after a century of ideological struggle.

Never has so great a revolution been accomplished so swiftly and so peacefully, by ordinary men and women rather than utopians with guns.

Twenty years later, we still haven’t come to terms with the scope of our deliverance. Francis Fukuyama famously described the post-Communist era as “the end of history.” By this, he didn’t mean the end of events — wars and famines, financial panics and terrorist bombings. He meant the disappearance of any enduring, existential threat to liberal democracy and free-market capitalism.

This thesis has been much contested, but it holds up remarkably well. Even 9/11 didn’t undo the work of ’89. Osama bin Laden is no Hitler, and Islamism isn’t in the same league as the last century’s totalitarianism. Marxism and fascism seduced the West’s elite; Islamic radicalism seduces men like the Fort Hood shooter. Our enemies resort to terrorism because they’re weak, and because we’re so astonishingly strong.

Starting in 1993, my family company began a relationship with an excellent plastics company in Plzen, Czech Republic that lasted for 12 years. I had the pleasure of visiting Czech that year when Prague was still new to the West, and had I not visited Singapore and China the next year, I might have made a career in Europe. PassageMaker now has a growing sales presence in Europe, led by Marc Brzezinka and Julien Roger (Managing Director of our sister company China Quality Focus), and we expect to have at least one rep based in Eastern Europe soon.

I occasionally hear commentators in the USA talk about “Communist China”. While China is a one-party state, I have a good laugh whenever I hear that. China today is more capitalist in many ways than the USA, and Shenzhen, our corporate home, is the most capitalist city of all. While the marriage is imperfect, the relationship between the USA and PRC is nothing like the Cold War, and thank God for that.

Responding to concerns about patriotism

I received a very interesting email from a prospective client. He is concerned that the Americans working for PassageMaker have lost their patriotism for the USA.

This is an interesting conundrum. How do you promote business in China, without seeming to run down your home country?

Here is my [edited] response for what it is worth:

Thank you for your email. All of us at PassageMaker look forward to working with you.

I appreciate your feedback vis-a-vis patriotism. I cannot speak for Mike and Brian, as they have both married into China as it were, but I can tell you that I consider [it PassageMaker’s role to help American businesses] remain viable.

I spent most of my life in the US automotive industry, and the corporate buyers began pressuring us in the mid-to-late 1980s to move production, first to Mexico (after 6 trips to check it out, we decided to pass); to eastern Europe (we had a great 12 year relationship with an excellent supplier in Plzen, Czech Republic); to the Asian Tigers (we started sourcing in Taiwan in 1991 and I lived in Singapore in 1994); and now to China. Left to ourselves, we likely never would have moved anything anywhere.

PassageMaker recognizes that outsourcing is a sensitive subject with many clients, but the sad reality is that buyers expect a “world price”. Having worked in manufacturing for over 20 years, starting with my first job in a machine shop at 14, I know that sometimes American companies can deliver that price. I know my company in Virginia does just that. But many companies, especially start-ups, cannot. They don’t have the tooling, equipment or expertise in place to meet the expectations of the market.

China has a role to play, and that is where PassageMaker comes in. Our goal is to help foreign companies be successful in their dealings with China. If by helping an American company successfully manage their China supply chain, I can make the USA operation more profitable, everyone wins.

While the economic and political environment in the USA are causes for great concern, I agree with your assessment of America [as the exceptional and indispensable ‘city on a hill’ with its best days ahead of it]. It is why I live here.

PassageMaker intends to be a truly global company, with Assembly Centers in every major market. PassageMaker-Mexico will likely be next, but PassageMaker-USA is also on the list. We already have sales presence in USA, EU, Mexico and Brazil [with Asia, India and Africa on their way]. We want to be able to offer a comprehensive supply chain solution, including the option to assemble or complete manufacturing in America, regardless of where the core components are made.

I appreciate your concern and would be happy to discuss this further. Please feel free to call me on my cell.

Whether or not this prospective client takes me seriously has yet to be seen, but my email was sincere. I take no joy in the apparent slow death of American manufacturing, but I also do not think I am the one doing the killing.

I sure hope he’s wrong…

A very disturbing piece from Michael S. Malone about the “hollowing out” of America’s innovation capital, Silicon Valley. It seems there are no new start-ups, due to lack of venture capital, onerous regulations from Washington (that make it damn near impossible to do an IPO), etc. If America loses the mantle of world’s innovation engine, what will we have left?

One of our salesmen, David Denny and I were discussing the similar problem (on a much smaller scale) in southwestern Virginia. Whether you care for the current crowd in Washington or not, the level of uncertainty they’ve created continues to suppress investment. That cannot be denied.

Where are these investors going to go? My bet is that in the future they will find a fertile garden in China and India. Chinese and Indian students are the academic core of many American universities these days, and why not go home where the government will pay you to market the next great idea?

Talk about shooting yourself in the foot…

How I survived China

Great article sent by a friend in DC on the health hazards of living in China. A few things that stuck out:

1 – Micro-particulate pollution – in terms of the human cost, this is more concerning than CO2:

Another way to know this is via a clandestine air-quality station that the U.S. Embassy has built in Beijing. The Chinese government does not report, and may not even measure, what other countries consider the most dangerous form of air pollution: PM2.5, the smallest particulate matter, tiny enough to work its way deep into the alveoli. Instead, Chinese reports cover only the grosser PM10 particulates, which are less dangerous but more unsightly, because they make the air dark and turn your handkerchief black if you blow your nose. (Spitting on the street: routine in China. Blowing your nose into a handkerchief: something no cultured person would do.) These unauthorized PM2.5 readings, sent out on a Twitter stream (BeijingAir), show the pollution in Beijing routinely to be in the “Very Unhealthy” or “Hazardous” range, not seen in U.S. cities in decades.

2 – Despite the pollution, it is a exciting and energizing place to be:

The positive aspect is, there’s a lot to take your mind off your health. “I am amazed at how well people do here, considering,” another Western-trained doctor said. “It is an exciting place. It’s a historic time. People seem to feel alive.” That made sense when I heard it—in China I had felt terrible, but alive—and makes me say that foreigners who want to go should not be deterred.

3 – Drink beer:

…I naively drank bottled water in a Buddhist-run vegetarian restaurant—and on the way out saw a waiter filling the “Evian” bottles from a hose.

Point 1 is dead on – the air is toxic – but the trade off (for expats anyway) is Point 2. The minute I landed in Singapore in 1994 I knew I had found my path. Asia, and Chinese Asia in particular, became my focus. It is still exciting today. I imagine London in the Victorian era, NYC in the 1920’s, LA in the 1950’s, etc., were also as exciting (and polluted). Can China fix this? Of course, and they will as their economy develops. As I’ve said before, modern environmentalism is a luxury good.

Mike Bellamy went to Asia the same time I did, and he’s been there full time since 1998, and the excitement has not worn off. Most of the expats on the PassageMaker team have put down roots. We have real bricks-and-mortar in place. So if you need something done in China, rest assured that we are experienced and motivated to make your project a success.

And Point 3? Beer, especially from the large export breweries (many foreign owned), is safe to drink, because it is bottled, capped, carbonated and alcoholic. Chinese beer is served in large recyclable bottles, but the nature of the brewing and bottling process means that if it makes it to your table, it’s clean. All the water is purified as the first step in brewing, otherwise you foul the fermentation. Were it biologically contaminated, it would result in a burst bottle from the build up of gasses. Also, Chinese beer is relatively low in alcohol, so having a beer with lunch is not going to ruin the rest of your day.

When in doubt, have a beer.