By now, everyone reading this post knows my love for Youtube. In the last 12 months, tons of new high quality China specific content has been posted, and I find it to be really useful when I want to see what is going on at large conferences and events.

Well… if the analysts are right, everyone in China may have the Youtube plug pulled on Jan 31, and unlike the outage before, it may not come back until Youtube signs on with a state owned media group.

The full details (with analysis) can be found at the NY Times and Redherring, but here are a few highlights of the regulation:

• China will allow only state-run Web sites to broadcast video or radio through the Internet
• Starting Jan. 31, Internet broadcasting license applicants must be government-run entities
• Operators will be banned from offering content that promotes sex, violence, gambling or religious cults or divulges state secrets
• It’s still unclear the effect the new regulations could have on the ownership and operation of these companies

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One thing I love about Youtube, is you really can find anything. (Note: if you are in China, the Youtube videos below will not be visible without the use of a proxy service.)

Recently, my work has taken me to Suzhou quite a bit. the area really has improved dramatically over the last 5 years, and there is still a ridiculous amount of growth still expected.

During one of my first visits, I was given the tour of a museum that laid SIP’s history, and for those that don’t know it, it is quite extrodinary as both the Chinese government and Singaporean government really put a lot of faith into what was little more than a water town a 100km from Shanghai.. which was just beginning to see any real action.

The first video below (prepare yourself for the music!) shows clips of SIP from the early days to now, and the second shows what the future will be (hmm.. I see high tech in SIP’s future).

Why Lou Dobbs Scares Me More Than Chinese Toothpaste was a post I wrote early on in the days of “Made In China”. My position was that while there were certainly problems in the supply chain, Lou Dobbs (and other like him) were actually far worse because of their predatory reporting. Far from being balanced, Lou Dobbs always feels the need to remind viewers that China is a communist country, and does little himself to bring on balanced panels or perspective.

Well… it appears that someone else (more powerful than I) has also grown tired of Lou and his “communist China” angle.

According to a press release dated October 17, Gary Shapiro (CEO of the Consumer Electornics Association) has:

issued a direct challenge to Dobbs to present his viewers with a balanced view of international trade. “I am prepared to debate Lou Dobbs live on his CNN show,” Shapiro said. “His anti-trade comments on his cable show and his refusal to grant equal time to opposing viewpoints are inconsistent with CNN’s great legacy as a pioneering news network. We are hopeful that CNN will wish to retain its credibility and allow equal time for pro-free trade viewpoints.

also included in the release were some stats from a Zogby study (I am looking for study) that I found very interesting:

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“he believes holds the key to his fortune in China…” That is the end of the sentence started in Part 3 that is finished in Part 4.

so.. the entire statement “Peter has found a man he believes holds the key to his fortune in China..”… and boy oh boy does the next scene say it all (Run Peter RUN!!) .. this man (Cecil Pih) is going to steal your money.. and your product

According to Cecil.. “Doing business in China is like the wild wild west… except they know how to shot better than the cowboys” (By the way, Cecil moved into the lead on best quotes with that)..

Cut to Peter and Cecil describing their partnership and their strategy… starting with Shanghai on the whiteboard, and then moving from there through his “connections, clout, cash, and cultural understanding”

To close the deals .. you need wining, dining, and wenching (I am guessing he means going to KTV and saunas?) - Peter is up for the first two, but uses his age to get out of the third

Bank to Vance who has decided the adventure is something his 9 year old son should be witness to the fact that his partner is ripping Vance off (money, product, and even his land). Following his manager being roughed up, Vance decides to make a surprise visit… and it is clear from the minute he pulls into the driveway just where his money went (new Audi A6 … new office block fully kitted with panoramic windows and leather couches… and a new house with a swimming pool)

and so it is off to dinner where at the end of end of part 4, Vance’s bug fails..

Best Quote:
Cecil - “everything is hot. money is hot. food is hot. the girls are hot.. you really could use your shirt in the wild wild west”

Color Commentary:
Peter - Peter just jumped into a pool that is way beyond his depth. He now has a partner that has “connections to the right people”, says Shanghai is the hardest nut to crack in China, and is unable to pronounce many of the cities he will visit massage parlors in… yikes.. nice choice Peter, but I really think you would have been better off with Ms. Dai’s sister’s father in law.

Vance - I have a feeling Vance is going to force feed his partner over dinner. He has been outright ripped off, and product is not moving. While I am sure Vance knows better than to hit a man while his is down, he might just kick him cause it is easier. Note to Vance - next time you want to build a factory in China (close to wood forests), remember that 97% of all pine enters via the Russian border… not the DPRK. Go to Haierbin, Houhot, or Suifenhe

Tony - No update in part 4… I wonder how the new site manager is working out.

This series has yet to fail me. I am sure that in the end all three are going to come out of this richer than all get out simply because the stage is being set for Vance going to jail, Peter being kidnapped, and Tony crying in the corner of a half built factory. the warning bells could not get any louder, there are bogies in the perimeter, we are going to DEFCON 4.

See you in a few days for Part 5… Hopefully Tony will enter the picture cause I really want to see the factory.

Part 3 starts off with Peter pitching, and it comes out that he has failed to make a single sale after one month - Time to fish or cut bait for Peter. Cut to Tony who has set up a mansion of a store at the SNIEC Cushion Show in Shanghai. .. who is trying to figure out who wants to buy his cushions… or steal his patterns.

“If you want a quarter of a million cushions in 10 weeks, you will get your cushions in ten weeks”

Cut to Tony inspecting the site… which is uh.. way behind schedule. fortunately Tony’s business partner has a family member (her sister’s father in law) who can manage the job (That was convenient…). Tony is scared, and the entire staff goes to lunch at 11am.

Cut to Vance on the Huangpu river and a bit more background on his business. 100+ suppliers for 50,000 bathrooms (a large supply chain for a single person). So… of to the border of North Korea where Vance looks to set up his own operation, and he has a warehouse of equipment that he got on the cheap from bankruptcy auctions (this guy is a true vulture). This scene wraps with Vance driving on top of what should be the foundation of his new factory (he paid 2.7 million RMB for it) and I must say that he took it well. (so did his assistance who got ripped into)….

PArt 3 wraps up with Peter strutting through Shanghai’s Thames town, sitting down for a port, and putting on a strong face… man… I would be freaking at this point (not a single sale in site)

I can’t wait to part 4 … cause the last line was “Peter has found a man…”

Best Quote of the scene:
Vance - “I like to stay here one night (Shanghai). TO get me myself into the spirit and give me that kick up the ass. Look at it (Grand Hyatt) - If someone can build an 88 floor hotel, then why can’t I develop a new bath

Color commentary:
Vance is still going strong even with the fact that his foundation has yet to be poured (really… worse things could have happened).

Tony.. ah Tony. The sister’s father in law of your site manager? Are you kidding? Has it occurred to you to call someone at Jones Lange LaSalle or CM2Hill for help? BEsides having his product designs stolen by 21 year old mobile phone carriers… he has now put all his hopes of China based manufacturing into the hands of his site manager’s sister’s father in law.

Peter - Well, he has at least found himself in Shanghai, and has his feet on the ground. But I am worried given the last line was “he has met a man…”. Asking for a port, waiting for a man, and in his finest suit. I think my premonitions of a shady distributor are coming true.

Honestly, I could not get entertainment like this on satellite.  This series is priceless!  I t is like three blind mice for China.. and I just can’t wait to see how these guys stat putting it all together (at this point, I still think all have a legitimate shot… but no doubt there is more fun to come!)

Stay tuned for part 4… I think it is going to be better than the first 3.

Part 2 jumps straight into the action with Vance making an inspection of product. while Vance is a real A$#hole and I am not a fan of his attitude, I must say that it is clear that Vance’s experience in doing business in China has taught him that onsite inspections are the only way to go… and that when possible, one must buy a quarry to get things done right…

Following his purchase of a quarry, we ride along with a singing Vance through as he drives through toilet bowl city and tap fixture city to meet his man on the ground (Black Horse) who will apparently undercut anyone. This section is interesting is topped off when Vance feels a piece is too expensive and to bring the pricing down he strips the product down into pieces and then deconstructs the pricing piece by piece.. and saves 40%…

Before he leaves though, he gets Black Horse to copy a product sold in Europe, and explains how he (read others) get around IP - just gotta change it a little bit.

Cut to Peter in HK getting a hand mate suit and making his first pitch in his new suit.

Best quotes of the segment:
Vance (edited)- “The think I have cruised in off the banana boat that has just strolled out me 5 star hotel with a hangover. the last thing I want to be doing is strolling around the old dirty yard in my Armani suit and Gucci shoes”

Peter - “To be born British is to win the first prize in the lottery of life” - something I am sure all his customers would agree to..

Color Commentary:
A lack of moral fiber aside, Vance has all the makings for a successful buyer. While perhaps a bit rough around the edges, he takes no one at their word until he sees the product for himself, he waits the other side out, he looks at things closely, and in negotiations he bargains on individual product costs.

Peter on the other hand is in la la land and is probably going to have a tough time seeing his customer with his nose so high in the air. Risking everything at the age of 70 on a new product and new country with a trophy in hand just smells of disaster. At this point, I am betting he finds someone to partner with who is shady, and who he trusts wholly cause desperation will blind him from logic. It is still early in the game, but I am not holding high hopes for Peter

Part 3 on Friday

Perhaps the funniest thing I have found on Youtube…. a 7 part series entitled Brits Get Rich in China.

If you have read Mr China, this is a must see. If you have not read Mr. China, watch the series, then read the book, and then re-watch this series.

The premise is simply. China is BOOMING, there is gold at the end of the Great Wall (perhaps behind it) , and three business men are sucked in by the promises of riches (fortunately for us, there were 3 camera crews ready to tape all this!)

Perhaps a spin off the Survivor series, these three men are all from differnt backgrounds:

Tony Caldeira’s once-thriving Merseyside cushion business has been ruined by cheap Chinese imports. In a desperate bid to save his company, he’s borrowed two million pounds and flown out to China in an attempt to build a cushion factory in a paddy field.

“For me.. its China or bust”

Dapper ex-colonel Peter Williams has spent his life savings on an energy-saving device that he thinks he can sell throughout China. If he pulls it off, he’ll make hundreds of millions of pounds. But to many Chinese businessmen, he’s just an English plum ripe for the picking. Will they rip off his device and send him home with his tail between his legs?

And controversial kitchen retailer Vance Miller has built a huge business buying cheap products in China. But along the way, he says he has suffered a deluge of scams at the hands of his equally ruthless Chinese suppliers. On his fake “Olympic Inspection Committee” bus, he’s on a tour of the country determined to crack down on those he says have crossed him.

all three are in different product categories (plumbing, cushions, and energy efficiency), all have different strategies (manufacture direct sourcing, China based manufacturing, HK based JV distribution) , each has different levels of China experience (very experienced, market killed by the Chinese, and not sure where it is on a map)… and for added pleasure none of them speak a word of Chinese.

With each segment being 10 minutes in length, I will post 1-2 a week (I don’t want to get blamed for my readers being unproductive). You can find the entire series online here.. but trust me, you will not get the same commentary from Youtube as you will here…. I nearly cried twice from laughing so hard…

Best Quotes so far

Tony - “If your gonna do business in China, you need a good Chinaese business partner, and I have got one. This LAdy (Ms. Dai) started life in a rice field and in theory, when this project is finished, she is gonna be a MILLIONAIRE…. and who can argue with that?”

Peter - “If you look at the buildings that are around you (in HK), and you look at the units hanging off the walls. If you imagine those buildings to be trees, it really is like money hanging on trees for us to harvest”

Vance - ” I have been to Tibet. Into the mountains. Into the Jungle. Into the Mines. I have been everywhere…. I ain’t going through no middleman. I ain’t going to no wholesaler. I’ve got to go right to where it begins like. How can you get it any cheaper? If I want a kitchen, I’d chop down a tree”