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Q: So, what will be the next foreign firm on the grill?
What's your bet? What will be the next target of Chinese efforts to put an end to the rampant corruption and quality issues of many foreign corporations operating in China (*cough cough*)?
9 years 38 weeks ago in Business & Jobs - China
you mean after the latest Microsoft issue?
i wonder if they would dare to try grilling Apple
RiriRiri:
McDonald's, Qualcomm, Microsoft, you name it...
Apple... mmh, maybe, but hard to find an angle. Plus they seem to have a pattern of attacking one giant per industry at a time.
DrMonkey:
Well, in the morning news review of CCTV2... Apple and its backdoor in iOS ^^
Nessquick:
yeah, just wanna write about the app that monitor every your steps you do during a day. my wife showed me on news. I knew it some years, apple just now make this app usable for its users ...
I wanted to say "anything with a national competitor", but for Microsoft, there is no serious national contender. They use to have a national Linux distribution (Red Flag Linux) but the company failed and is now gone.
Hum... Auchan and/or Carrefour. They are everywhere in China, and you have national chains like Vanguard.
RiriRiri:
Canonical just released a version of their Ubuntu "with Chinese characteristics".
http://www.ubuntu.com/desktop/ubuntu-kylin
Sure it's still American stuff, but it's already packed with crapware from Baidu/Sogou, and most importantly, it's open source, which in Chinese means "nice, I get to skip the retro-engineering part before rebrand".
"To create Ubuntu Kylin, Canonical partnered with China Software and Integrated Chip Promotions Centre (CSIP) and the National University of Defence Technology (NUDT) to produce a fully localised and customised version of Ubuntu", get it? :)
The supermarket chain looks like a nice bet
.DrMonkey:
Canonical is UK based, founded by a South-African ;) Retro-engineering of Linux, that's a non-sense. Linux itself is open-source : all the code is available for free without any barriers. All the usual layers around Linux to make it useable (like a graphical user interface, drivers) are open-source too. So there is nothing to retro-engineer, it's meant to be copied. If you want to rant about this, you should rant on how much contribution to the Linux ecosystem comes from Mainland China, versus how much they use it. Red Flag Linux was an attempt to do the same as Canonical (providing a Linux distribution for free, and giving support and help for a fee), but it failed miserably.
RiriRiri:
The retro-engineering part was supposed to be irony. Badly executed, I take it.
About open source, yes it's all meant to be copied and shared freely until you hear Canonical + the Chinese government have a deal, which to me sounds like anything but greater freedom in the end of it. Maybe free as in free beer, but that's it. And don't count on the general population to audit all that stuff or to even give a shit, let's be honest. It's going to be shipped with new computers and that's it.
Anyway, here's your competitor to Microsoft, and thank you for correcting my mistake, I forgot Canonical was UK.
ambivalentmace:
if it has a lot of junk and trouble and too complicated for a simple chinese mind, they will erase the hard drive and go back to microsoft anyway, i like linux but dont think it will work here with neanderthals at all.
RiriRiri:
The magic of GNU/Linux is that you can take it, twist it, dumb it down and lock it up as you want.
Do they need more? No they don't.
I can perfectly picture all the Chinese IT industry agreeing to move to a sort of crippled GNU/Linux system, preferably taken over after Canonical gets fucked over by its partners, that won't even be free anymore and just for the sake of isolating their consumers some more. That would just be so typical.
I guess it will be one or both of the US auto manufacturers with joint ventures in China, namely GM and Ford. Perhaps Chinese authorities will use one of the myriad of recalls from either to justify harsh punishment.
andy74rc:
Maybe not, as automotive is all in JV.
But, sales figures of the 100% national brands are not good, so maybe yes.
One step in the direction has been already taken though, banning govt from buying foreign cars.
ambivalentmace:
yes, even the chery cars that go boom in the night when they cross paths with a truck are considered safer than a foreign brand, funny how that works.
Mhh..... let's see:
1) Neo-mercantilism: check
2) Ultra-liberism: check
3) Protectionism: check
4) Neo-colonialism: check
Anything missing?
andy74rc:
Short of knowledge in Macroeconomics for the downvoter eh?..... 
There is a lot of mention about having a monopoly in China being illegal. Baidu is surely breaking the monopoly law. I think the CCP is cutting its nose off to spite its face. It is only damaging itself. Driving away foreign investment is not good for the economy. The economy is the main thing holding this crazy country together. It is good news for China's competitors looking for foreign investment though.
RiriRiri:
Which makes me wonder whether:
- They are in possession of reliable numbers and data suggesting them to drive out foreign investment.
- They got used to lie so much that they started to believe in the BS they make their statistics bureaus publish.
- The politburo has just no touch with reality.
I would think a car company, it's been more than a year since they last had a kick in the groin (as far as I remember it was the 2013 CNY Gala)
i think general motors or some of us say government motors will get the ax as soon as they finish building the new state or the art factories to be taken over by competitors after china kicks their ass out, maybe 18 to 24 months away from this scenario. the ignition switch recalls in america could have caused problems here in china also, but they havent finished the factories yet, dont knock a man down when he is broke, wait till you can shake him down and get some money or technology.
In the negotiation process, they're just leveraging to have better access to US companies in US.
Corporations like GE or Siemens. Bribery is the literal way of life for all politicians and big name companies that sell equipment in the ranges of several million Rmb per pop. That also makes them easy targets in the current show for cracking down on corruption. Siemens has seen some big fines recently but stuff is going on behind the scenes to try to break these monopolies as well. Have a friend who is a higher up in a hospital and it is being said that the gov is trying to find incentives for hospitals to not to make purchases from those companies... Perhaps by withholding certain forms of authorization or credentials from them . The day is coming but not quite here yet.
Another very famous multinational food manufacturer with production bases in China. Watch this space!
The winner of the week : Mercedes !
http://shanghaiist.com/2014/08/05/mercedes-benz-shanghai-raid.php
Maybe we can do a game, the one to guess the foreign company that get raided win one Internet. For this week, Scandinavian win, with a special mention for those who mentioned car companies. I'm still waiting for Carrefour or Auchan to get troubles.
Stiggs:
I don't really understand how you can overcharge for something you make. You make it, set a price and people decide if they think it's worth that price or not. If not they don't buy it.
DrMonkey:
Yes, exactly. Those cars are expensive, yet they sell like bao zi in the morning... Offer and demand, the price is high.
expatlife26:
its really asinine...i remember they said the same shit about starbucks a few years ago. Companies charge what the market will bear. there are plenty of other options in the market if MB is too rich for your blood, its not likey have the car market in a corner and the only option is to buy a merc.
My crystal balls are da bomb. 6 days ago, I said "car company" and now looka here
http://shanghaiist.com/2014/08/05/mercedes-benz-shanghai-raid.php
Congratulation to whose who accurately said the car industry!
Next company gets framed for the horrible crime of making benefits in China (it's been tolerated too long). 
so mercedes has to lower the price for parts by 15 percent, how did that amount to price fixing, is bmw parts cheaper, inquiring minds would like to know.
Scandinavian:
I completely fail to see the problem, all cars are fitted with counterfeit spare parts anyway. Yes, even top brands like Mercs suffer this cruel fate.
Do the Canadians busted in the north for appropriating state secrets count? I mean they were running a mere coffee shop but seems like they are definitely being grilled.
icnif77:
Yesterday report on CC teli said, they were ex-FTs running the restaurant, but accused of spying.
I alerted Sino promptly
.
Apart from the witchhunt there is also the fact that the administration has begun the "Buy Chinese" campaign.
Milk imports are dropping (anyone has shares in melamine producing companies) and local production is being boosted
Security software:
http://www.pcworld.com/article/2461540/symantec-kaspersky-deny-governmen...
And then of course, people (government institutions) are encourage to by the Hong Qi instead of foreign cars. Interestingly, the Hong Qi is a Toyota Crown in disguise so the pride of Chinese automotive industry is in fact not a home grown product.
Nessquick:
Yeah man, I our Auchan is less and less milk and milk products, only few rubbish left now, within few days almost empty and not refilling .. :(
I will check the Carefour in the "foreigner village" later ...
icnif77:
'Nobody can say, we're are after the foreign firms, only. We punished Chinese Telecoms for the same 'monopoly' violations! What's the matter with you?'
Chinese Gov. (anti-banana) fine for the Telecoms is the same, as one would say: 'I have 200 Rmb in my L pocket, and none in my R pocket. Let me 'fine' L pocket, and put 'fine' to the R pocket.'
Everybody (should) be happy after that!
I think, that's called 'diplomacy', or 'sand in ur eyes'
It is interesting that the post in which I referred to another major food manufacturing incident has not hit the headlines yet. I was told in confidence that a recall of baby food has taken place in China due to abnormal levels of lead. As it is a famous multinational involved, I fully expected it to turn into another political fiasco. It shows how selective reporting here really is.
Kaiwen:
It is very difficult for me to go into detail as I was told in confidence about the incident. I carry out such investigations for a living and would not want to jeopardize my relationship with clients. But, for sure, this event did occur and I was fully expecting stronger media reaction.
Stiggs:
If it went public that foreign baby food has excessive amounts of lead in it people will start to ask what other products have excessive amounts of lead in them, or where the raw materials are sourced.
It could be that it's a door that nobody here wants opened, for good reason.
RiriRiri:
People don't get to ask questions, the wise press does that for them. Like for McDonald's supplier, there's actually a demiton of wise question which could've been asked but weren't.
Assuming this story be true (not doubting you Kaiwen, but I bet you'll understand), I guess press coverage is still an open market.
Scandinavian:
Lead used to be the cure for all sorts of ailments. Chinese Emperors used it in their hunt for eternal life. Lead surely isn't a bad thing.
Also, if a lab has found high levels of lead, maybe the thing has already been taken care of. I am sure there are production fuck ups all the time, but no need to blow the alarm if it hasn't gone to market yet. (or the correct official has been paid off)
Kaiwen:
Of course it's been taken care of but not before a full scale recall alert. The product had been dispatched before the problem had been discovered. It is not at all unusual for such events to be the target of media scrutiny and given the nature of the product involved here as well as the country of origin it is actually a surprise that this story hasn't got out. But there is still time yet.
As for lead being a good thing, I suppose lead poisoning is a kind of cure for all ailments but tends to have a bit a permanency about it if taken to the extreme. Lead and cadmium are non permitted heavy metals over limit of detection.
http://online.thatsmags.com/post/fashion-brands-flunk-beijings-quality-tests
Seems like the clothing industry could be next.
DrMonkey:
Nooooo, not Muji, they are one of the very few shops into minimalist design, and that does not splatter logos on the clothes they sell. Meh it's my favorite brand here...
Stiggs:
Well now you know, you were being scammed by that evil foreign brand with inferior quality standards and no shiny tassles on it, and if you want true quality you should buy local. If the zipper happens to break off in your hand the first time you use it, it's because you didn't use it properly and you don't understand the culture. 
It just took a good deal longer than what I expected:
http://www.foodsafetynews.com/2014/08/heinz-recalls-infant-food-for-high...
Hotwater:
"Heinz officials apologized for the situation this past Friday and said they had traced the problem to ingredients in a batch of degreased soybean cereals."
What is missing in that report is where these soybean cereals came from. Were they processed in China or imported? Where were the incoming quality checks or did they rely on the supplier?
Food safety problems like this need more in-depth coverage so the source of the problem is known.
Stiggs:
It's been in the foreign media the last few days, but I haven't seen much sign of it in the local news yet which I would have expected.
Stiggs:
It's been in the foreign media the last few days, but I haven't seen much sign of it in the local news yet which I would have expected.
Lord_hanson:
Of course the soy beans were produced in China. They have polluted the land to the point where their vegetables are now poisonous.
Kaiwen:
@Hotwater:
All of the raw materials were locally procured i.e. in China and Heinz operate to a very stringent supplier and incoming raw material procedure. The raw materials had been checked using very sophisticated rapid detection technology that should have detected the presence of the contaminant. The reason for the system breakdown is still being investigated.
