When you get right down to it, China owes much of it modern wealth to the fact that foreigners (Particularly Americans) seem to have an insatiable desire to own "stuff". To cut a long story short, China, with its large pool of labor to produces "stuff" cheaply.  And foreigners, with their desire to own "stuff" buys it in copious amounts. The perfect partnership of supply and demand. so long, that is, as you ignore the fiscal deficit between the West and China.

Some of what China produces is useful and/or practical and has allowed foreigners to improve their standard of living significantly. With ready supplies of cheap Chinese goods pushing down the per unit prices of everyday clothes and home wares to a level that is it affordable to even poor foriegners, and making what were previously luxury goods - such as microwave oven and big screen TVs - into everyday commodities.

However, a lot of what China produces for foreign consumption can more accurately be classified as novelty items. Cheap junk with no practical value, or actual use. Items which foreigners often purchase on a whim, use for a brief period of time, and then either dispose of or forget about. Indeed, and in no small part due to the reforms of Deng, the Silk Road has now been replaced with the Cr*p Road. An endless flow of garbage like this rather scary singing/dancing Christmas tree. Made in China for a pittance, sold in the West for $US20-$US25, and amusing for all of 5 minutes.

ACB isn't sure whether or not they should be angry about this. Or who to be angry at.

On one hand it's all money in the bank for China. It's school fees, medical treatment, and food for children, and it's hardly for China to say what foreigners should spend their money on. On the other hand China has long critisized foreigners for their excess and for their wasteful obsession with consumerism and trivia, yet here is China feeding it for it's own financial gain, but at the cost of it's self respect. China has become part of the problem, not part of the solution, and in doing so has thrown away much of it's reputation as an ancient and wise civilization and forged a new identity as being a merchant of junk.

Reports have begun to circulate indicating that the China Daily website may be infected with a so-called Trojan horse virus that attempts to download itself on to vulnerable computer when Internet users attempt to access the site.

According to reports certain pages on www.Chinadaily.cn consistently trigger anti virus warnings on a number of commercial packages. The warnings state that the site is infected with an HTML/Crypted.Gen Trojan. The warnings are said to be associated with one of the members sign in pages as well an unknown number of pages carrying news stories.

Although it has been confirmed that the pages do indeed consistently throw up a warning on machines protected by certain anti virus software it has yet to be confirmed what the source of the virus is. With some speculating that the warnings are being generated due to a virus located on the China Daily website itself, and other's speculating that the Trojan warning may originate from malicious code in one of the sites advertizers, rather than form the China Daily. Indicating that either the advertizer is crooked, or that they are a virus victim themselves.

There has also been speculation that the warning may be a false alarm created by over sensitive software reacting to legitimate code either on the site or in associated banner advertizements, as it does not show up on all anti-virus software, and because reports are not yet wide enough to indicate a full scale viral breach.

These reports come at a particularly sensitive time for the Mainland regarding the alleged spread of viruses, coming as it does close to the release of several US reports on China's alleged use of state backed hackers - including the use of viruses and Trojans - to acquire US military and trade secrets.

Reports are also likely to hit a nerve due to their proximity to a recent spate between Google and the People's Daily media group which saw Google's search engine throwing up virus warning for search results relating to the People's Daily book portal soon after the same said portal carried news stories alleging that Google may be infringing the intellectual property rights of Chinese authors by providing digital copies of their books to American audiences without paying them the relevant fees.

The People's Daily denies that their website was compromised by a virus, and Google deny that they maliciously blocked the site because of the story that it carried about them.

China watchers note that the effected China Daily pages do not throw up warnings on Google and that the bulk of reports appear to be linked to anti virus definitions supplied by one or more European companies. Though it is not known if this is significant.

Not all pages on the website appear to throw up warnings.

For most Western businesses China represents something of a mixed bag. On one hand China is an unmatched opportunity, an untapped market with unparalleled room for growth that could provide significant future revenue to any company that can get its foot far enough in the door. On the other hand, China is also a notoriously difficult gig to crack.

At an official level, entrance restrictions are tough. Beijing guards its markets tightly to prevent large foreign companies from using their overseas gained capital base to muscle smaller Chinese firms off of the stage. China's consumer base is also at a very early stage of its development. Often because while there are 1.3 billion Chinese, most of them do not have much money to spend.

At an unofficial level Beijing also has a standing policy in place of using every tool at its command to keep anything out of China that might lead to “unhealthy ideas”: A catch-all phrase often used by Beijing to describe anything and everything that it finds it undesirable for Mainlander's minds to dwell on. From hard core child pornography, to democratic reforms.

To this end Beijing heavily regulates the screening of foreign films and television programs on the Mainland and demands that most forms of media be submitted to the relevant government body before they can be approved for sale in China.

Are you Game?

One industry in which all of the above can be clearly seen is the China's burgeoning online gaming market.

For the first part, China's online gaming market is a market is considerable, and growing. With analysts predicting that it will grow some 50% during 2009, to $US4 billion, despite the economic downturn. Thanks in no small part to an increasing number of new gamers entering the market each year as China's economic situation improves.

Making it an attractive prospect for Western developers looking to secure for new opportunities outside of the Western online gaming sector. Which has become so saturated in recent years that for many companies a new customer is often mostly a customer who has switched from a different product rather than an actual new gamer.

For the second part, Western games companies have often found themselves caught up in Mainland crackdowns aimed at gaming in general, as well as foreign games in particular. Including generally enforced laws mandating that online games (Both domestic and foreign) must include time based neutering switches that degrade a game character's performance if the player stays online for too long, and laws governing the inclusion of content that is pornographic or which glamorizes violence. Which are legally permitted under America's First Amendment, but which have no protected status in China. As well as more specific laws that have forced foreign games to follow the same approval process that Beijing semi-openly uses to enforce quotas on the number of foreign films that enter China's markets each year in order to prevent wealthy Western studios from muscling their smaller Chinese competitors out of the market.

Winning Streak?

Despite the hazards and restrictions, many Western games companies have made strong inroads into China's markets. Beating out Japanese and Korean games, as well as domestic competition achieve high levels of popularity and to make solid profits.

Probably the best example of this has been the Western developed World of Warcraft, which now ranks as China's number 1 online gaming environment with an estimated 5 million Mainland players.

Sand Trap?

However, despite successes stories such as that of WoW having paved the way, things look set to become somewhat more rocky for Western companies seeking to enter the Mainland market. In fact, if Beijing has its way, China may lock Western companies out of Mainland markets for years to come.

Investment Ban?

According to General Administration of Press and Publication (GAPP), which operates as the Mainland's defacto games regulator - amongst other functions - Beijing is introducing a moratorium on foreign investment in the Mainland's online gaming sector. With prohibitions on overseas companies investing in Mainland online gaming companies, owning said companies in whole or part, or from offering technical expertise. According to the GAAP clauses have also been written into law prohibiting foreign companies from “influencing” Mainland online games in any way. Either directly or indirectly.

Unhealthy Content?

The new regulations come as part of a much wider crackdown on online games, and gaming in general, in China that sees it receiving significant levels of state scrutiny at multiple levels, and on multiple premise, than ever before.

Under new regulations, and additions to existing regulations, all games must be now be vetted directly by state authorities before being released for public consumption, and games companies must apply for direct state certification in a similar way to printing presses and television stations. With companies forbidden to publishing online games, or operating gaming environments without express approval from the state.

According to Beijing regulatory changes are necessary in order to weed out 'Unhealthy influence'.  A phrase that Beijing often uses to refer to content of a violent or sexual nature, or content which encourages dangerous or self destructive tendencies. But which is also often used as a catch-all phrase to describe anything that differs from Beijing's state line or society, history or culture, or which exposes something issuing from Beijing as being illegitimate.

Online violence?

Although this latest turn of events can be seen as a crackdown in itself, it is in fact part of a far larger ongoing push against violent and sexual games content, and games content winch simulates criminal acts.

Indeed, the investment ban comes hot on the heals of new regulations prohibiting online games that allow players to participate in activities such as drugs dealing, looting, and carrying out contract killings which has already seen Mainland players cut off from around 2 dozen online games. Including the Western developed Godfather,  as well as the Gangland simulation Jianghu and Guhuozai which were ordered out in July 2009.

This in turn follows on from an earlier crackdown on violent content in games that saw many games being forced to censor themselves or to be banned, including World of Warcraft which was forced to tone down the levels of violence in the game. Including replacing replacing bones and severed heads with more child friendly images, and toning down blood effects when characters were killed or injured.

According to Chinese officials this was because the Mainland has no age based selling restrictions for computer games, and little means to prevent children from accessing adult content online. Prohibiting foreign investment and influence will make it much easier for Beijing to keep it's domestic companies under control. It will also make it somewhat harder and less profitable for companies to attempt to slip through the net of domestic restrictions by using foreign content partners.

Social Factors?

Although Beijing has publicly declared war on in game violence and simulated criminality, both on and off line, China watchers have voiced that it is also following a second, more private, agenda. Limiting the import of foreign culture through video games.

Although it can be argued that foreign video games are often not representative of foreign culture, and that they largely depict an unrealistic of fantasy based environment, China watchers voice that there are likely concerns amongst leaders that foreign developed or influenced online games will bring with them 'undesirable' elements of foreign culture.

At its most obvious, this includes the Western (Primarily US and British) tendencies towards depictions of what become known as 'ultra-violence' - the stylized portrayal of acts of extreme and gratuitous violence – in video games. something which Chinese leaders and parents have strongly spoken out against as being a bad and destabilizing influence on Chinese children. With Mainlanders reacting with alarm to the idea that Chinese may be indoctrinated into thinking that the levels of violence present in Western Countries – Whose rates of rape, murder, and other violent crime dwarf those found in China – were normal, acceptable or somehow desirable.

Additionally, Beijing also likely wishes to reduce the risk of Western companies introducing Chinese gamers to historically accurate representations of situation that it has, itself, planted distorted versions of in the Chinese diaspora. As well as fictional representations that go against the state line.

For example, in 2004 Beijing banned the game the foreign online game 'soccer Manager 2005 (Also known as Premier Manager 2005 and Football Manager 2005) for depicting Hong Kong, Tibet and Chinese Taiwan as having their own soccer individual soccer teams. Ironically, the game had not been officially released in China, making Mainland copies illegal pirate versions that never should have been on sale. Equally ironically, Chinese Taiwan and Hong Kong both do in reality have their own soccer teams that compete at a trans-Asian level, independently from the Mainland.

At its more subtle, this includes the importation of alternative perspectives on society. Creating expectations of social norms and conditions that either do not exist in China, or which Beijing desires to suppress, and encouraging Chinese children to begin to 'think like foreigners'. Something which Beijing sometimes references as 'harmful messages' or as influences which are 'disrupt social order'. Including games that encourage players to question or to disobey symbols of authority, to place their loyalties towards small groups of like-minded friends or associates (for example, members of the player's gaming clan) above their loyalties to the state, or which encourage them to explorer alternative perspectives on society, history or culture.

At present, China watchers voice that the latter is more a risk from Japanese and Korean games than from Western games, as Western games tend to be lighter on social themes and plots in favor of acts of violence.

Economic Factors?

While Beijing largely cited public and child welfare as being the reasons behind its prohibition on foreign investment, and while some China watchers quote censorship and the forced as being a significant factor, other China watchers note that there are likely a significant economic factors involved. Specifically, market protectionism though restricted access.

Primarily china watchers have observed that foreign owned companies seeking to operate in China are already usually established in markets that Chinese companies cannot enter due to economic differences, and have access to funding sources that are similarly closed to Chinese companies, allowing them to produce games on an uneven footing to Chinese companies which have far more limited means, and to use their fiscal muscle and industry influence to push their smaller Chinese rivals to the margins

Similarly analysts note that Western companies typically have larger staff bases and larger back-catalogs, allowing them to flood Chinese markets with products in a short space of time if left unregulated. Which also puts the Mainland's much smaller, younger companies at a disadvantage.

Additionally, Beijing is likely worried that an influx of foreign titles may encourage Chinese firms to take on roles as content distributors, rather than content creators. Leaving China as a nation with few world class games developers, but many companies managing online accounts for games created overseas.

Beijing has long used quotas and restrictions in order to prevent the large US  studios from flooding China with films and television programs, and in order to ensure that capitol is spent on production rather than purchase in order to keep it within China, and to ensure that it benefits Chinese companies.

Future?

At present it is not clear how long the investment/influence prohibition will last, though China watchers though China wathcers predict that a total prohibition is unlikely to last long given current dometic funding opertunities, that it it is likely to be modified and relaxed substantially over time. Probably to the level where foreign companies will be mandated to join joint ventures with mandates for domestic involvement, as with many other industries.

When people talk about a new world order they are usually referring to the New World Order (note the capitals): a supposed secret underground world government that's run by Jewish bankers and/or shape shifting alien lizards (or maybe even shape shifting Jewish alien lizard bankers). However, in this instance ACB is referring to a different an altogether new world order. Something more down to earth, but maybe slightly more insidious, than the one involving scaly space aliens and the afore mentioned Jewish bankers (ACB has never quite understood this one). This being the new world order in the making as the balance of world power/influence slowly redresses from West to East due to the rise China

While it's true that nobody is going to wake up tomorrow morning and discover PLA soldiers patrolling the streets (Not unless you're Tibetan or Hygur, that is), it is true that a lot of people woke up earlier this week and found that a large slice of American pride has (more or less) become a large slice of Chinese pride.

ACB is of course referring to the agreement between the troubled US automotive giant General Motors, and the comparatively unknown Chinese company Sichuan Tengzhong Heavy Industrial Machinery Co, for the title deeds to the infamous Hummer brand.

The Deal?

According to industry reports, US based Gm has, this week, signed a deal to transfer ownership of the Hummer brand over to Chengdu based Tengzhong Heavy Industrial Machinery Co.

The deal - worth an estimated $US150 million - will see Sichuan Tengzhong taking an 80% stake in the Hummer, with the remaining 20% being held by Chinese business person Suolang Duoji. Suolang Duoji is a significant investor in Sichuan Tengzhong.

Reports indicate that Sichuan Tengzhong is to gain ownership of the Hummer brand name, as well as its US based manufacturing plants, on the condition that it continues to manufacture in the US until at least 2011. Sichuan Tengzhongis also reported to have agreed to take on GM's relationship with all 160 of hummer's US based dealerships, and have committed to a substantial plan of reinvestment and reimagining.

Buying Respectability?

At first glance hummer may not see like a smart investment. Hummer failed to make a significant foothold outside of the US, and its domestic sales have plummeted in recent years. International sales fell by 64% during 2009, and some domestic dealerships reported sales as being down by up to 80%.

However, Hummer does have two thing going for it that Sichuan Tengzhong needs. 1) An internationally recognized brand, 2) Internationally recognized core industry experience. Both of which SichuanTengzhong lacks, indeed many Chinese companies lack.

According to some China watchers, Sichuan Tengzhong likely chose to purchase Hummer in order to it as a springboard into overseas markets. Using Hummer's well know brand on the international market rather than trying establish its own brand outside of China, and using Hummer's knowledge and experience base in order to build up it's own knowledge and experience base.

The deal is reported not to include technology or production facilities related to the US Military Humvee. Which belongs to AM General, and which would have been blocked by Washington on national security ground had it ever been on the table.

Future Plans?

At present it remains unclear exactly how Sichuan Tengzhong plans to use the hummer brand. Some reports suggest that Sichuan Tengzhong plans to retain the Hummer as a luxury Sports Utility Vehicle brand for the Chinese and international market, but to update the brand with a more fuel efficient engine and a lighter body. One report even indicated that Sichuan Tengzhong may even be intending to manufacture an electric/hybrid version of the hummer. Though Sichuan Tengzhong officials are reporting as having not elaborated on the issue when it was raised.

However, other market sources have suggested that Sichuan Tengzhong may intend to repurpose the Hummer as a workhorse vehicle. Utilizing the brand's heavy duty image and robust construction, but moving it out of the civilian MPV market and into the indistrial/comercial market where it will act as a transport and utility vehicle. According to analysts this hypothesis is leant strength by recent moves by Sichuan Tengzhong into the commercial/industrial truck market elsewhere in the world. This would also tie in with Sichuan Tengzhon's existing core market in heavy manufacturing.

Done Deal?

While the paperwork has now officially been signed, the transfer of the Hummer brand form American hands into Chinese ownership is not yet a done deal. It still has several hurdles to over come. The largest of which is likely to be regulatory approval.

On the Chinese side Sichuan Tengzhong is likely to run into difficulty with Mainland regulators over Hummer's humiliating environmental record. with some models such as the Hummer H2 managing only 17 miles per imperial gallon (US14MPG) at their peak Beijing is likely to require significant assurances from Sichuan Tengzhong that it will improve Hummer's fuel efficiency before the purchase will be approved. Beijing is also likely to be concerned about Sichuan Tengzhong's lack of experience in Hummer's core markets. Meaning that the government may quash the deal rather than risk a potential high profile failure by Sichuan Tengzhong interfering with the wider Chinese image.

On the Us side there is likely to be strong resistance form Unions, industry loby groups, and conservatives over the sale of an iconic US brand to a foreign company. Which may pressure Washington into 'discovering' regulatory issues that could prevent the sale, or into placing unacceptable conditions on the sale it in order force Sichuan Tengzhong to pull out.

Humiliation?

Although the sale of Hummer to a Chinese firm is not a significant economic losee to the US, and while a Chinese company is unlikely to do any better/worse than any other foreign or domestic company, the loss of the hummer brand ot the US is likly to prove embarrassing to the US. A loss of face and of pride during a time when the balance of world power and influence is increasingly swining away form the US and towards countries that the US has typically regarded as being lesser states in economic, industrial, comercial and political terms.

The blow is all the harder as the Hummer had come to represent the aspirational nature of US consumer culture in a way that few other brands have managed to do.