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.

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