Update on Tralin Paper (a.k.a. Tranlin Paper or Quanlin Paper): Financing Based on Chinese IP Now Creates Jobs in America

I previously reported a remarkable IP-backed financial deal in China, where Tralin Paper (Quanlin Paper in Chinese, though they use www.tralin.com for their website) used their IP portfolio to back a loan for 8 billion RMB, around US$1.3 billion. Now news  from the office of Governor Terry McAuliffe of Virginia reveals what Tralin is doing with that money. See reports at TAPPI.org and MFRTech.com. Tralin Paper, renaming themselves as Tranlin Paper for some reason, has just signed a deal with the State of Virginia, obtaining state support as Tralin/Tranlin/Quanlin invests $2 billion to create a new environmentally friendly paper mill and create over 2,000 US jobs. In a departure from the stereotypical view of Chinese companies stealing American jobs and IP, here is an innovative Chinese company that has created and protected their own IP, used innovative financial tools (and plenty of solid Chinese guanxi) to obtain massive financing based on that IP, and then brought their money and their technology to the US to create many jobs. At least some parts of this story are going to be repeated in many ways in days to come. The old paradigm of China lacking IP or lacking valuable IP is fading.

After the announcement at ChinaPaper.net, the first report on this story to the English-speaking world, as far as I know, was my original March 6, 2014 report at InnovationFatigue.com followed by an update here on the Shake Well blog that gave a translation of the Chinese story. It was picked up by Intellectual Asset Magazine and by World Trademark Review, but is still a generally unrecognized but important story.

Watch for China to surprise many pundits who decry its lack of IP and innovation. Many Western companies are going to be startled at the tsunami of innovation and IP that will come from the Middle Kingdom, which is rushing to become the epicenter of global innovation and IP value creation. China still has a long ways to go in overcoming its problems and strengthening innovation and IP, but the trends here are remarkable and should not be discounted. Meanwhile, we should welcome stories like Tranlin’s, and watch for many more to come. But for some US companies, this will mean even tougher competition that won’t be easily avoided with restrictive, protective tariffs or antidumping legislation.

Customer Service in China: China Telecom Busts Another Western Myth

I commonly hear Western businessmen stating that China doesn’t get innovation and customer service. I’ve discussed the myth of China’s lack of innovation on the Innovation Fatigue blog. Today I’ll share my experiences with China Telecom that convince me that the West has a few things to learn about the new world of customer service in China.

Some of the worst customer service I’ve ever experienced involved internet and cable TV service – in the United States. When we had technical problems, the hassles we faced when working with Time Warner in particular put real strains on my endurance. It took forever to reach someone, and then getting help to come fix a problem when that was needed was a real pain. Required advanced scheduling with no knowledge of when the people would show up. Coming to China, I expected things to be even worse. What a surprise that has been!

Two days ago I bought a new router for our home, worried that the signal strength of our old Apple Airport router was too low. But the new router, with instructions only in Chinese, wasn’t working right even after I thought I had done everything properly. I called China Telecom after 9 PM, reached an English speaking agent in about 2 minutes, and they said they would send someone out the next morning. I asked if they could make it around 6 PM when I would be back from work. They said OK, 6 PM or later. The next day at 6:05 PM, a friendly tech support man showed up. Big smile, very polite and kind. He understood exactly what I needed, went to the router, looked at the router page on my computer, clicked one area and immediately spotted an error in my set up. Within 2 minutes the problem was fixed. He then tested the connection, gave me his number in case I had any other trouble, smiled again, shook my hand, and was off. Then 5 minutes later, I got a call from China Telecom to ask how things went, if the problem was fixed, and if the service man had a good attitude and had given me his phone number, etc. Wow.

Rapid access to support, rapid scheduling of service, prompt arrival, quick resolution of trouble, and follow up. What a great lesson for American businesses. China Telecom is a large state-owned enterprise that represents mainstream Chinese business in this new era. China gets customer service. Sure, there are plenty of cases of bureaucracy in the way and lazy employees who don’t care, problems that abound in the West as well. But China Telecom’s fantastic customer service should be the gold standard that the West tries to copy and imitate, before it’s too late. Likewise, the burgeoning spirit of innovation and intellectual property support in China is something the West should learn from, though China has much to do in this area still. But don’t discount the competitiveness of China because you think they don’t get customer service or innovation. Time to start relearning what you think you knew about China, and relearning what you know and do about customer service.

By |April 22nd, 2014|Categories: Business, China, Industry, Internet|Tags: |Comments Off

Great Chinglish in a Dramatic Video from a Machinery Company That Teaches Much About Chinese Culture

Great Chinglish in an impressive video from Peixin Machinery Corporation in China

Great Chinglish in an impressive video from Peixin Machinery Corporation in China

“It inherits the wisdom of Minnan Merchants. It assembles numerous elites.” Spoken in perfect English with a dramatic deep voice, these words begin an impressive and instructive video prepared as an advertisement for Peixin Machinery Company and their advanced systems for the paper industry. There is so much that may be puzzling to native English speakers when they watch this video, and so much that teaches unintended lessons about Chinese business culture. I feel that the video and its Chinese equivalent could be a valuable addition to any course studying Chinese and especially business Chinese or business culture in China.

Some of the scenes selected for the video also teach a lot about culture in China. You can see the intense deference to authority in several sections, for example. Quite interesting. But it’s the English that I enjoy most.

“Big waves wash the sand, but we still go ahead bravely with the pulse of the times.” That’s one of many intriguing statements that are important in Chinese speeches and ads, but seem really strange to Western ears. The Chinese version of the video has been translated well, I think, as far as direct translations go, but it’s the whole mindset and nature of the content that needs to be retranslated and reworked for this to be an effective video for native English speakers. For example, starting off with a boastful link to Minnan merchants is just crazy–even Americans who have been living in China for years are not likely to appreciate the old lore of Fujian Province merchants known as the Minnan merchants. One of many moments that makes this fun video a great example of the very large cultural gaps that sometimes look like language gaps between the East and the West.

No offense intended to Peixin. Their video is better than most and has been done much better than most. The equipment also looks pretty good, but I don’t know one way or the other.

By |April 3rd, 2014|Categories: Business, China, Chinglish, Industry, Paper, Products|Tags: |Comments Off