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About China

Conduct business with the Chinese in a professional manner, Jim Chang says.

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You’ve surely heard that the world is ending in 2012. Well, okay, some say it will end in 2012. Those ascribing to this possibility note several points that, they say, justify the prophecy. One is the ancient, but esteemed, Mayan calendar that abruptly halts in 2012. The ancient Mayans, renowned for their astrological astuteness, oddly enough, ended their legendary calendar on December 21, 2012.

Until recently, most anthropologists believed the Mayans simply tired of adding days. All calendars must end sometime, so why not the Mayans and why not 2012? New astrological observations, however, may prove the Mayans hadn’t tired at all…

On December 21, 2012, modern astrologists say, Earth will align with the sun and a massive black hole (number Q0906+6930) centered in our Milky Way galaxy. NASA, adding mass to the belief, says the sun’s polarity will reverse that year. Such activity could cause sun flares (one super-sized sun flare could toast the planet) and gravitational stresses on the Earth’s core which, in turn, may cause earthquakes, volcanic eruptions and the like.

Scientists believe unruly core magma tangles Earth’s magnetic fields. A massive disruption could cause a reversal in its magnetic poles. If this happens, the 0.6-oersted magnetic force field that presently surrounds the planet could reverse, as it did 780,000 years ago, changing positive to negative and causing chaos across the globe.

Today, the magnetic field affects both humans and animals. All modern navigation relies upon the magnetic north, as do bees, pigeons, salmon and whales. Polar reversal could cause navigation failures, cosmic radiation, and radio and television disruptions; compass needles could whirl south … and magnetic signs could tumble off car and truck doors.

By 2012, news agencies recently reported, commercial air traffic between the United States and China will have doubled. To help effect this, U.S. Transportation Secretary Mary Peters and Chinese Minister of Civil Aviation Yang Yuanyuan, at the Seattle-Tacoma International Airport, signed an agreement approving increased flights between the United States and China. Peters said the pact would provide more and cheaper shipping options to China and therefore, “…make it easier for U.S. companies to tap into China’s enormous market.”

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Seattle Times business writer Kristi Heim reported the reciprocal agreement would allow unlimited cargo flights. She said it could generate up to $5 billion in revenue for the aircraft industry. Last year approximately two million passengers flew between the two countries, and, so far, both Delta and U.S. Airways have applied for routes. Interestingly, the agreement allows a matching number of flights from China, but, Heim notes, the Asian mega-country isn’t using its present quota. Apparently, far more Americans are visiting China than Chinese are visiting America.

In the real world, such agreements can both benefit and damage signmaker’s personal and business economies. The benefit, obviously, is lower prices for certain items, especially those found at Wal-Mart and large-box stores. Lower-priced and more frequent cargo flights also mean perishable or time-critical products could reach each country sooner. Flowers or food, for example, or such tightly deadlined items as fabricated channel letters or digitally printed posters.

China, friend or foe
By 2005, China had become the United States’ third-largest trade partner, trailing only Canada and Mexico; it accounts for more than 13% of all U.S. imports. As one of the world’s largest energy consumers, China also affects global markets and oil prices. It’s the world second-largest oil consumer, after the United States.

China’s worldwide search for new oil resources in South America, Cuba and Africa has also created international concern; the country is assisting Venezuela in developing new fields and Cuba in drilling 90 off-coast wells, 50 miles south of Key West. It’s also working with the African nations of Sudan, Chad, Nigeria, Angola, Algeria, Gabon, Equatorial Guinea and the Republic of Congo. It has, for example, invested $2.27 billion in Nigerian oil fields.

Peters favors expanded business with China. She said, “With our economies so reliant on each other, we must take every opportunity to make it easier to do business and more convenient for our nations to stay connected.” Although I agree with her philosophy, I’d add that China’s economic, political and military ambitions don’t always align with those commonly held in the Western world.

Worse is that certain headlines seldom reach the evening news. For example, the U.S. Dept. of Defense’s (DOD) Annual Report to Congress, titled “Military Power of the People’s Republic of China, 2007,” said the People’s Liberation Army (PLA) is “…pursuing comprehensive transformation from a mass army designed for protracted wars of attrition on its territory to one capable of fighting and winning short-duration, high-intensity conflicts against high-tech adversaries.”

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In certain circles (Cuba or Iran, for example), the United States is a high-tech adversary.

Military analysts say both China and Russia closely watched the U.S. 17weapons systems as applied in Kuwait and Iraq. On CNN, they and the world witnessed the military results of our high-tech guidance systems and quickly comprehended their own weakness against such systems. Soon, Chinese and Russian leaders met, discussed and agreed on the necessity of modernizing their military technologies. In August 2005, China and Russia held a joint military exercise.

On August 19, 2005, The Financial Times (FT) newspaper wrote: “The first joint military exercise, launched yesterday by China and Russia, is not the innocent peacekeeping drill its name suggests.” The FT writers said the exercises represented a heightening

of the military relationship between China and Russia, one the United States should certainly watch. It also said, “…If these war games were really about peacekeeping, they would not require the mock amphibious assaults, attack submarines and the Russian long-range strategic bombers that military analysts say are involved…”

The DOD said China’s greatest potential is to compete militarily with the United States, and [China has] field-disruptive technologies that could, over time, offset traditional U.S. military advantages.

For example, China is reportedly working on systems that would raze the Internet, and it has already tested a satellite-destroying, “space weapon” missile. One recently successfully destroyed a 600-mile-high satellite.

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GPS-equipped satellites guide the majority of America’s weapon systems.

Business in China
I emailed Jim Chang, the president of Amica Software Inc. (Irvine, CA and Beijing) with questions on conducting business in China; he telephoned me from Beijing. Jim founded and, for years, oversaw the Amiable software (Irvine, CA) company that eventually merged with Scanvec Inc., which has since become SAi (Philadelphia). I asked Jim about doing business with the Chinese – “Is it as precarious as we always hear – or is it a goldmine that shouldn’t be ignored?”

Jim brought logic to an oft-distorted picture. He reminded me, us, that we get what we pay for. He said, although such situations as Mattel Toy Co.’s lead-paint recall are regrettable, it occurred because Mattel wasn’t supervising its Chinese-based manufacturing processes. Any company or country can produce bad products, Jim said, and buyers of Chinese goods should exercise the same cautions as they would elsewhere.

I often hear American business people, who contract with Chinese plants, complain that Chinese fabricators make unauthorized product or manufacturing changes. Jim said much of China’s business community is immature compared to Western firms; thus, unless supervised, product consistency and quality-control practices may be lower or less consistent than elsewhere.

“Don’t look for sweet deals,” he added, advising, thereby, that American firms should conduct business with the Chinese in a professional manner. “High-quality manufacturing is available in China,” he added, “so find companies with good reputations and check their references.” He said business practices that don’t work in the United States won’t work in China.

China’s entry into the modern business world is relatively recent. It entered the World Trade Organization in 2001, and, even today, much of its business environment lacks Western sophistication. Jim said many U.S.-owned businesses flourish in China, and U.S.-based manufacturers that want Chinese-made components could conduct businesses with these firms at minimum risk.

Jim also cautioned U.S. business-people to study and understand China’s contracts and legal procedures before doing business there.

Different laws
Millions of outsiders have traveled to the People’s Republic of China uneventfully, but, if you visit, keep in mind that its rules and laws are different from those to which you’re accustomed. The U.S. Department of State’s Consular Information Sheet says China, the world’s most populous country (1.3 billion citizens), is ruled by the Chinese Communist Party; therefore, many of its laws are unlike those found in Western countries.

The U.S. Dept. of State says, for example, Chinese security personnel may search your hotel room, your computer, car and more, with or without your permission. It says those more likely to be under surveillance are journalists and business people with access to advanced, proprietary information.

Also, handing out unauthorized religious literature could get you either expelled or imprisoned. Further, overstaying your visa can get you into a predicament, so the State Dept. says, be onboard your departing flight. It also warns the Communist government may prevent Americans implicated in business or civil suits from leaving the country. It adds, trials can take a long time.

Sustaining intellectual property rights is another oft-discussed problem. In 2004, a group of copyright-dependent companies from the software, film and recording industries estimated China-related losses for U.S. copyrighted material exceeded 90% of the total market – $3.6 billion. The U.S. Commerce department says pirates reproduce 19 of 20 film DVDs sold in China, thus costing U.S. companies $280 million a year.

Chinese signmaking
For a closer view of Chinese signmaking, visit the China Sign Expo 2008, slated for Beijing’s China International Exhibition Center, June 5-8, 2008. The planners expect 30,000 visitors to visit 400 exhibition booths.

China Sign Expo 2008, known locally as the Beijing 4Nshow and born in 1994, is China’s most successful. In 2007, 300 companies from eight countries exhibited to 3,000 visitors, who arrived from more than 28 countries.

In China, signmaking is more often termed “advertising,” and small shops typically hand letter most standard work. Large-format, digital printing thrives, and such businesses as China Majen Media Advertising Information Network (Beijing) reach across the country. Majen Media, the digital-printmaking division of Majen Advertising Mastermind Co. Ltd., prints billboards and posters and also provides novelty-ad items for general businesses and the rail and aircraft industries. The company also produces newspaper, radio, television and website ads under the name Shenyang Majen Advertising Mastermind Co. Ltd. (Shenyang Liaoning, China). Its company description includes this interesting ending:

“Time is changing, and the world is continuously changing; however, the spirits of Majen’s people, seeking innovation and self-improvement, remain unchanged. We wish you and us, hand-in-hand, to construct a beautiful tomorrow together.”

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