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 |2016-10-24T05:58:00-07:00April 22nd, 2014|Categories: Business, China, Industry, Internet|Tags: |Comments Off on Customer Service in China: China Telecom Busts Another Western Myth
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Qingdao, China: Clean, Beautiful City with a Great Beach and Nearby Mountains

For a recent 3-day holiday, my wife and I went to Qingdao, China, in Shandong Province. We stayed on the beach the Haiyu Hotel. The hotel was reasonably good and quite inexpensive, less than 500 RMB a night with an ocean view and a great beachfront to explore. Qingdao has wonderful seafood, and if you like clams and basic fish, you can get it very inexpensively. The air was fresh, the sky was blue, and the ocean front was relatively clean and attractive, unlike the mud the occupies the region around Shanghai.

We began with a trip to Lao Shan Mountain, which features some good hiking and also beautiful fishing boats in the coastal city of Lao Shan. Then we visited a few parts of Qingdao such as Ba De Guan with lots of European architecture and the beautiful Zhongshan Park.

Travel tip: taxis can be hard to hail in Qingdao. During a time with lots of visitors, you would be wise to arrange a driver ahead of time. Might cost 400-500 per day. If you hire a taxi for a day, it might be more like 800 or higher. A subway system is under construction and should be up starting in 2015.

Here are some photos of our adventure.

By |2014-04-16T15:54:32-07:00April 13th, 2014|Categories: China, Photography, Travel tips|Tags: , , , , |Comments Off on Qingdao, China: Clean, Beautiful City with a Great Beach and Nearby Mountains
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If You Ride the Maglev from the Pudong Airport, Beware the Cabbies at Longyang Station

Many foreigners visiting of living in Shanghai have learned about the Maglev, the rapid train that connects the PuDong International Airport with a location closer to the center of Pudong. The 50-RBM ride (40 RMB if you use a metro card) from the airport to the Maglev’s other end at Longyang Station takes only about 8 minutes reaching a brisk speed of 300 km/hr, whereas it would take about 40 or so minutes on the metro (Line 2) and would take over 30 minutes by taxi, depending on traffic, and would cost over 100 RMB. So a great way to get to downtown Shanghai is to take the Maglev to Longyang Station, and then take line 2 or line 7 from Longyang to get to other parts of Shanghai. If you are brave and perhaps foolhardy, you can take a cab from Longyang. In my experience, it’s the worse place in town to take a cab.

The problem is not that cabs are hard to get–there are a lot of them anxiously waiting for foreigners. The problem is that it’s hard to find honest cabs, the ones that use the meter and charge you fairly. Cabs almost everywhere else in town can be expected to use the meter and comply with the law, but not at Longyang. You tell them where you want to go and then they act like illegal black cabs, telling you the price they will charge without using a meter. A ride that normally would be 35 RMB, for example, will be quoted at 100 RMB, and almost always at least twice what the real rate ought to be. And you probably won’t get a receipt for the ride, either. The taxi is a “black cab” for that ride. It’s illegal, but they do it at Longyang as their standard operating procedure, mainly to prey upon gullible tourists getting off the Maglev.

Do not get into a cab that isn’t going to use the meter. If you can’t speak Chinese, say “meter” and point to it and make sure they will use it. If it’s not on when you get in, stop and get out. I think “dabiao” is the Chinese way to indicate the ride will use the meter.

You can find cabs willing to use the meter there, though you may have to walk past the line of snakes waiting to prey upon you and go beyond the taxi stand area out toward the main street and wave one down there.

Don’t encourage the snakes to keep preying on foreigners by giving in and paying double to triple fare to a cabbie in a normal cab illegally acting as a black cab. Better to take an unmarked black cab than a marked cab where the cabbie has dishonestly turned off the meter. When you let a dishonest person take you for a ride, it can turn out poorly in several ways. The excessive 100 RMB fare he quoted you might become 100 RMB per person. You might get taken to the wrong place. Why take further risk?

Don’t be in a rush. Plan on taking at least 10 extra minutes to find an honest cab, or take the subway instead of the Maglev, if only to get to a new location where the cabbies are more honest.

By |2016-10-24T05:58:00-07:00April 9th, 2014|Categories: China, Shanghai, Travel tips|Tags: , , , , |Comments Off on If You Ride the Maglev from the Pudong Airport, Beware the Cabbies at Longyang Station
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Tailored Clothing in Shanghai: Great Deals, But Be Cautious About Leather

One of the great things about Shanghai for foreigners is being able to have tailored made clothing at prices much lower than is possible in many other nations. Here you can have a suit made for around 800 RMB, around US$140. Lower-end off-the-shelf suits in the US often cost $300 to $500, and custom-made suits are even more, so it’s an attractive option to have them made here. If you are going to be in China for 3 days or more, consider ordering a suit. It usually takes 3 days to get them back. There are many shops in Shanghai that can do this, but the most popular areas with a big concentration of competing tailors are the South Bund Fabric Market and the Science and Technology Museum.

The South Bund Fabric Market is 南外滩轻纺面料市场. Address is 399 Lujiabang Lu, near Nancang Jie. Chinese: 南外滩轻纺面料市场, 陆家浜路399号, 近南仓街. It’s probably enough to just tell the cabby “Qing Fang Shichang” (轻纺市场, meaning light wovens market). This is not far from the Nanpu Bridge subway stop on Line 4, about 5 minutes, and you can walk through old-city chaos from Xiaonanmen station on Line 9, maybe 10 minutes. The Science and Technology Market is very easy to reach. It’s right on line 2 at a station of the same name. You don’t even leave the station. It’s there, underground, with dozens and dozens of shops. But not always the best prices.

It’s good to get the advice of long-timers or frequent customers to get a recommendation for a place that can be trusted. But I’ve tried a couple selected rather randomly and still had fairly good results.

Of the two major centers, I think I prefer the South Bund Fabric Market. The prices may be a little lower. I suggest going to the second or third floors for the best deals. I think the first-floor shops get more business and may charge a slight premium. Not really sure on that.

For men, you can have a custom suit for 800 RMB. I suggest getting two pairs of pants with the suit, which will cost another 150 RMB or maybe 200. Add a shirt for about 100 RMB.

Based on reviews I’ve read, I would suggest that you avoid having leather goods made there unless you have a recommendation and have seen what was made. Make sure it’s real leather. The shop may show you nice high-quality leather, but what you receive from their tailor might be fake leather and poorly made. With suits and dresses, they are at least probably going to use the same material you selected. Be sure to try it and make sure it fits. The shops don’t have changing rooms for the most part, but can put up or in some cases have one or two people hold up a screen for you to change behind. Don’t be shocked to see some people changing without any privacy barrier, but don’t do that yourself.

For leather belts (or fake leather belts) with the new ratchet mechanism, go to the accessories and crafts market at 399 Renmin Road, across from the main gate leading to Yu Garden. In this five-story complex, you will find hundreds of shops with all sorts of too-dads and crafts, but on the 3rd or 4th floors to the right of the escalator as you come up is a shop selling belts at an asking price way below what you will negotiate at the popular fake goods shops or clothing complexes. 35-50 RMB versus 150 to 250 RMB. Give it a try.

By |2014-04-08T05:43:02-07:00April 6th, 2014|Categories: China, Products, Shanghai, Shopping|Tags: , , , , , , |Comments Off on Tailored Clothing in Shanghai: Great Deals, But Be Cautious About Leather
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Brave Dragons: About Chinese Basketball, But Maybe Also About Your Job in China

I just finished reading Brave Dragons: A Chinese Basketball Team, an American Coach, and Two Cultures Clashing (New York: Alfred Knopf, 2012) by Jim Yardley, an entertaining Pulitzer Prize winner. While the topic might seem very narrow to some readers, it may be one of the best books on the market to prepare for life and work in China, if that’s of interest to you. Even if you aren’t coming to China, it can help you understand some of the cultural barriers between China and the U.S. in spite of its very specific focus. It’s about one Chinese basketball team and an American coach’s experience in coming from the NBA in the U.S. to a lesser known Chinese city, Taiyuan. But so much of what he experiences and the setbacks and surprises he faces remind me of what many foreigners face when they come here to work or live. Definitely a good read and an entertaining one.

NBA coach Bob Weiss does a remarkable job of adapting to changes that would make many people give up in exasperation. For example, he was hired to be the coach of the Taiyuan team, but that changed when the owner suddenly made a Chinese man the acting coach to ensure that the team would run through constant fruitless drills to work the team to death rather than working on the skills and play development they really needed. He rolled with the punches and didn’t let pride get in the way. It helped that he really loved China and wanted to stay here, as it has helped for many foreigners here in related circumstances.

People coming to China for jobs often find out that the glorious position they were offered wasn’t quite as described, or that the benefits promised were withdrawn without notice, or that the work environment is almost the opposite of what they expected. In some cases, even the very job they accepted isn’t actually there. You need to come here expecting disappointment and setbacks, but determined to find a path through the craziness to make something precious and fulfilling out of your experience. Contracts here don’t carry the same meaning as they do in some parts of the world. There is much more emphasis on flexibility and renegotiating things when they prove to be difficult for one side (i.e., the other side). Important issues that you negotiated during your interviews might be eventually forgotten. Understand that and always ask yourself what you will do if an understanding doesn’t turn out the way you thought it was supposed to. Over-communicate,get anything important in writing or be prepared to abandon it, and be prepared to abandon it in any case.

While management in China can be quite good, in many businesses there are some huge differences in style that will surprise Westerners. The unfortunate management style of Boss Wang, the team owner, is  important to observe, but will probably  never encounter the extremes portrayed in the book. He tended to yell at his players for everything, sometimes an hour or more of yelling at them, constantly demeaning and harassing them for mistakes, and emphasizing excessive work rather than smart preparation. But the sudden last minute changes in plans and strategy that he would call from the top can be something you’ll see more often here than you might have seen before. Sometimes it works, but see for yourself in the book.

I recommend reading this book and contemplating how you might deal with related situations in your own journey in Asia or anywhere with new culture and rapidly changing rules.

For sensitive ears, there is some profanity as some of the players are quoted.

By |2014-04-04T04:12:18-07:00April 4th, 2014|Categories: Books, Business, China|Tags: , , |Comments Off on Brave Dragons: About Chinese Basketball, But Maybe Also About Your Job in China
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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. The link is a secure TinyUrl.com shortcut to www.peixin.com/?mod=video_show&id=17 (used to provide an https connection, required by my site configuration, when peixin.com itself does not support that). 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 |2017-12-04T07:40:11-07:00April 3rd, 2014|Categories: Business, China, Chinglish, Industry, Paper, Products|Tags: |Comments Off on Great Chinglish in a Dramatic Video from a Machinery Company That Teaches Much About Chinese Culture
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Tai Fei Ge (泰妃图) Thai Restaurant Opens at Hongyi Plaza Above East Nanjing Subway Station

Today I had lunch at the new Thai restaurant, Tai Fei Ge (泰妃图) above the East Nanjing subway station on the 6th floor of the Hongyi Plaza, directly above Exit 3 of the station. Wonderful place with good prices and service, plus delicious food. I ordered a shrimp curry set meal for just 32 RMB. A large serving of a delicious mild yellow curry dish with large shrimps and a good mix of veggies with a little pineapple, too. One of the best curries I’ve had in China, for my tastes. There was also some pretty good fried fish, a lilttle bowl of some limp greens, and a little serving of fruit. The bowl of rice that came with it looked more like Basmati rice or a real Thai rice and was quite good. A pleasant surprise overall.

The only disappointment was an herbal tea I ordered for 18 RMB. They served it in a regular glass and it was much too hot to handle. Needed a handle on a cup to drink this. Also didn’t have much flavor. This was a Chinese data and rose mix that didn’t have enough of the dates to contribute noticeably to the flavor. But it was certainly pretty.

Will definitely go back for dinner sometime, and certainly for lunch.

By |2014-03-31T22:28:25-07:00March 31st, 2014|Categories: China, Food, Restaurants, Shanghai|Tags: , , |Comments Off on Tai Fei Ge (泰妃图) Thai Restaurant Opens at Hongyi Plaza Above East Nanjing Subway Station
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Another Scam in China: Worthless Foreign Currency (and One More Sip of the Popular Tea Scam)

Thailand-currencyAn American friend of mine visiting Shanghai was shopping at Yu Yuan (Yu Gardens) and bought something from a pushy salesman on the street. He paid with a 100 RMB bill and was given several bills as change. What he didn’t notice was that the  bills he received was worthless currency from some foreign nation (he thought it looked like Arabic but I’m guessing it was from Thailand). So instead of paying 20 RMB, he paid 100. Rip off.

Make sure you know what real Chinese currency looks like so people won’t had you bogus currency for change. Look, verify, and count. Don’t be so trusting and gullible, like many of us Americans are.

Other Basic Scams at Tourist Attractions 

The day before my friend went to Yu Yuan, I warned him about some of the scams he might encountered. I told him that anytime someone approaches you there or at other major tourist sites and speaks English to you, no matter how friendly and attractive they may be, they are probably sales people whose job is to separate you from your money. I warned him that there are people who try to engage foreign visitors by asking them to take their photos, and then some sort of scam is likely to follow. Just say no politely and walk away, I said. I also warned him of the ever-popular and often successful tea ceremony scam, where gullible foreigners are lured by attractive English speaking girls to join them at a traditional tea ceremony for a cup of tea. In this scam, after a few minutes of tea, a gargantuan bill is presented, accompanied with solid Chinese muscle to enforce payment for what was allegedly a rare and exotic high-priced tea. One cup might cost you hundreds of dollars. Never fall for that, I warned. Stay away. Beware. Don’t go inside.

The next day at Yu Yuan, my friend ran into a couple of cute girls who spoke English and asked if he could take their picture. Being friendly and always wanting to help, this young man took the photos and chatted with them. “We are tourists from Beijing,” they said, “and have been to all these major Shanghai attractions on our tourist map except for one, a traditional tea ceremony right around the corner. It’s a great way to experience Chinese culture. Would you like to join us for some tea?”

“Well, I guess I can just take a look,” he said, and followed them into a tea house. But eventually, he later told me, my warnings began to enter his thinking–finally–and he realized he had better check a menu and see what the prices were before he did anything. He asked for a menu and saw that there was a 30 RMB service fee posted in addition to some high prices for the tea. But now he felt pressure to not just walk away, though he explained he didn’t drink tea and needed to leave, so how much did he need to pay for just taking a look as he had done? The waitress was puzzled and went to check with the owner, and came back saying that he needed to pay 200 RMB. That’s for absolutely nothing–what crooks. He said no way and gave them 30 RMB as I recall and left, but they were angry. I think he was lucky the muscle hadn’t shown up yet.  The result could have been much worse.

When you see young people at Yu Yuan waiting with cameras at busy corners or on busy streets, and out of all the thousands of passers-by, they choose you, the stand-out foreigner, to get someone to take their picture, know that the last thing they want is your photographic assistance. It’s a scam. Feel free to take their photo on your camera so you can let others know who these scammers are, but don’t let them lure you anywhere. They don’t want photos, just your cash. Lots of it. And they will use deception and force if you give them the opportunity.

By |2017-10-24T07:24:57-07:00March 26th, 2014|Categories: China, Scams, Shanghai, Shopping|Tags: , , , , |Comments Off on Another Scam in China: Worthless Foreign Currency (and One More Sip of the Popular Tea Scam)
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Qibao, a Not-Too-Ancient Water Town in Shanghai

Qibao: A Shanghai Attraction You Must Not Miss

A fun attraction in Shanghai that many foreigners overlook is the ancient water town of Qibao, a 5-minute stroll from the Qibao subway station on Line 9. It’s over 30 minutes away from downtown Shanghai, but is definitely worth the trip. As a water town, it’s views aren’t nearly as scenic as those in the famous water towns like Wuzhen or Zhouzhuang, and lacks the many attractions of Suzhou, but it has plenty of excitement for a half-day visit and can be a fun place to shop and try unusual foods. There are some good photo ops there, but what I like best are the many vendors on the pedestrian street. There are also 8 museums you can visit with one 30 RMB ticket, but they are small and not all that interesting for the most part, though it’s cool to say you’ve been to the Cricket Museum (featuring some calligraphy about cricket fights and a table display with real crickets in real formaldehyde), and there are some interesting items in the memorial hall for Qibao’s famous sculptor, Zhang Chongren and some fascinating  miniatures in the Miniatures Museum.

Here are some photos from recent visits to Qibao:

When you visit Qibao, go to Exit 2 of the Qibao Station on Line 9, then go left to the corner and turn left again. No need to cross any streets. You go may 200 meters and then you will see a big gate for the Qibao area. Go down that street another 200 meters roughly and on your right you will see a big fountain area made from rocks and a small pagoda. Turn right there and follow the stream of people down toward the narrow street close to the rocky fountain that is the beginning of Qibao’s interesting pedestrian street. Follow it to a bridge over the canal. This is a good place for photos. You can wander over to the right to get a good photo of this main bridge, then do on the bridge and take photos, then cross and go over to the left for another good spot for photography. Then continue down the pedestrian street to see the throng of vendors and other attractions.

At any of the little museums that are easy to miss, you can buy tickets for all 8 attractions or just pay the 5 or 10 RMB for individual museums you want to see. Or skip them and focus on food and photography.

One food tip: At #21 on the main pedestrian street, there is quite good gelato or ice cream for just 10 RMB a scoop. I tried the chocolate and found it as good as any chocolate gelato I’ve had in Shanghai, and less than half the typical price. Not bad!

Gate to the Pedestrian Street Area of Qibao

Backside of the Gate to the Pedestrian Street Area of Qibao

By |2016-10-24T05:58:00-07:00March 15th, 2014|Categories: China, Photography, Shanghai|Tags: , , , , |Comments Off on Qibao, a Not-Too-Ancient Water Town in Shanghai
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The Most Bizarre Chinglish I’ve Seen: Lazy Typing for an Expensive Supermarket Sign

On a recent trip to the gargantuan Suzhou Industrial Park, a beautiful region designed with Singapore as inspiration, I went into a popular supermarket, Hao You Duo (好又多), where I saw the strangest Chinglish I’ve seen so far. The store have numerous large posters hanging over the escalator ramps and other regions to celebrate the Chinese New Year and the Year of the Horse. The Chinese just says “wish you a great new year” and “lucky year of the horse.” Whoever entered the English translation was the laziest typist of all time. Looks like he or she set one hand down on the keyboard and just wiggled their fingers a few times on the same keys, over and over. Finished.

What amazes me is that this large supermarket chain spent a lot of money to produce these beautiful posters and then print, distribute, and hang hundreds of them (I presume these are all over their stores across China)–all without bothering to ask anyone with any English skills at all if the English was OK. In fact, every educated person in China at least understands the alphabet in order to use pinyin for typing email, and anyone who understands the alphabet ought to know that words generally need some kind of vowel, don’t they? No one noticed. No one cared. That is the secret to China’s most entertaining Chinglish.

Chinglish at Hao You Duo (好又多), Suzhou

Chinglish at Hao You Duo (好又多), Suzhou

Lazy Typist Creates Great Chinglish for a Major Chinese Supermarket, Hao You Duo (好又多). Photo from Suzhou Industrial Park, March 4, 2014

Lazy Typist Creates Great Chinglish for a Major Chinese Supermarket, Hao You Duo (好又多). Photo from Suzhou Industrial Park, March 4, 2014

By |2016-10-24T05:58:00-07:00March 8th, 2014|Categories: China, Chinglish, Humor|Tags: , , , |Comments Off on The Most Bizarre Chinglish I’ve Seen: Lazy Typing for an Expensive Supermarket Sign
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Beyond the Clouds: Exposing One of Shanghai’s Fine Culinary Secrets

Beyond the Clouds

One of Shanghai’s hidden culinary gems is overlooked by thousands of tourists everyday in one of Shanghai’s most popular spots, the beginning of the East Nanjing pedestrian street close to the Bund where East Nanjing intersects Henan Road. There, hidden away on the 5th floor of the building that houses the bustling Forever 21 store, is a delightful Yunnan restaurant that most people don’t even know is there. And that’s a good thing, because lines would be way too long if they knew about Beyond the Clouds.  I’ve been there twice and didn’t have to wait to be seated, which is how I like it. Beyond the Clouds has pleasant, somewhat mysterious decor with excellent food at surprisingly low prices. Definitely worth a visit for some of the most interesting flavors in China.

The best deal are their set meals for lunch. Just two choices: Set Meal A feeds two people for 88 RMB, and Set Meal B feeds 4 people for 138 RMB. I took a CEO there recently for lunch and we had Set Meal A, which had more food than we could eat and was quite good. The yellow curry was perfect. The hongshao pork and bean curd skins were excellent. The greens were good and the pickled radishes were very pleasant. Soup was OK. I enjoyed the meal, but was surprised to hear my friend describe it as the best Chinese food he’s had in his time in China (total of a couple of months or so, I think). Well, the food is decent and prices are great.

The set meals are only available during weekdays. I went there today with my wife and we loved the stuffed pineapple rice dish, with a nice mix of sweet black rice and pineapple in a pineapple shell. Digging out the cooked pineapple was fun. We also had an interesting crepe wrapped around mushrooms and other ingredients that was spicy and strongly flavored. I loved it, though the flavors were a bit strong for my wife. Service was good. Definitely a place I’ll be back to for larger meals to further explore the unusual cuisine of Yunnan province.

Many say this is an imitation of Lost Heaven, and that may be fair. But it’s an imitation that may taste better and be more affordable than the original. Keep those improved imitations coming!

You can get to the restaurant by entering Forever 21 and going up the elevators tot he 5th floor. There are also little alleys behind and to the side of that building that take you to a mysterious elevator to ascend to the 5th floor. Give it  try!

By |2016-10-24T05:58:00-07:00March 8th, 2014|Categories: China, Food, Restaurants|Tags: , , , , |Comments Off on Beyond the Clouds: Exposing One of Shanghai’s Fine Culinary Secrets
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A Sign of China’s Growth in Intellectual Property: Chinese Company Relies on IP to Gain Giant Loan

Notice & update: IAM Magazine, one of my favorite sources for information on intellectual property, just issued a blog post on the use of IP in lending in China: “Chinese companies have secured over $10 billion in patent-backed loans since 2008” by Jeff Wild, March 4, 2014. The news I share below (cross-posted at InnovationFatigue.com) definitely supports their article. Great timing! Further, responding to the news that I first broke to English speakers on the Innovation Fatigue Blog, IAM Magazine has written a blog post about this story (kindly citing my announcement), wherein they observe just how big of a deal this is. I agree, though I also think it’s fair to wonder how much of the transaction actually depended on IP and how much was due to guanxi and other factors. I have not yet evaluated the IP and if I do look at it in more detail, do not plan on sharing my analysis publicly, but may still offer further updates on this story here. IAM’s post includes a translation of the Chinese article behind this story. My independent translation (prepared before I saw the IAM translation) is at the end of this post. If there are significant differences in meaning, I’ll defer to them since my Chinese is still rough.

March 6, 2014: I just learned of breaking news from the Province of Shandong in northern China. A Chinese paper company, Quanlin Paper (also called “Tralin Paper”) has successfully used its portfolio of patents and trademarks to secure a huge loan of 7.9 billion RMB (about $1.3 billion). Potentially significant story for those tracking IP and innovation in China. The story was just reported on March 3, 2014 at China Paper (the story is in Mandarin). This is quite a big deal and may be a record for China in terms of how much value IP brought in seeking a corporate loan. To emphasize the significance of this development, the normally dry China Paper publication begins with a somewhat flowery statement based on an interview with the Chairman, who expresses surprise and delight at how much money they were able to obtain with their IP. Here’s my loose translation, followed by the actual Chinese:

“I never thought that intellectual property could have such a big effect in obtaining this loan. IP was a big part of it,” according to Quanlin Paper Company’s Chairman of the Board, President Li Hongfa, speaking today to a reporter about the 7.9 billion yuan from bank lenders that began this week. He said that this money will help them rapidly expand and seize market opportunities. Money has been tight for business, and this new addition is welcomed just as the mist-covered earth rejoices in the spring rains from the night before.

核心提示：“没想到知识产权能在这次贷款中起这么大作用,占这么大比重!”泉林纸业有限责任公司董事长、总经理李洪法今天对记者说,79亿元的银团贷款本周已开始放款,这笔资金对正在快速扩张、抢抓市场机遇但一直资金紧绷的企业来说,就像雾霾重重的大地喜迎昨夜的春雨。

OK, a bit flowery, but again, this is big news for China and things get flowery when the big news is good. This development shows that IP in China can be valuable (though the portfolio includes some international patents, it is mostly Chinese IP). It also shows that Chinese companies, even in seemingly dull industries like the paper industry, can be innovative and create valuable IP. I haven’t reviewed their IP to assess its value, but I understand they have over 100 Chinese patents in areas such as technology for using straw and other renewable or recycled materials for making paper, with alleged benefits of enhanced environmental friendliness and cost effectiveness. Shandong Province’s IP Office has also created some publicity about Quanlin’s IP estate (see the Chinese article here), though this was before the news of the massive loan secured with the help of IP. Expect more publicity from them shortly.

Further background comes from Baidu’s wiki-like entry on Quanlin Paper.

When nations develop strong IP systems, companies can use their IP to protect their innovations. This also motivates them to take the risk and spend the money need to drive further innovation, and gives investors courage to fund growth and innovation. In this case, it helped give a lending partner (a Chinese financial organization) the courage to loan a giant sum of money to help Tralin grow. Tralin has been pursuing IP not just for tax breaks it seems but also for strategic purposes, and information coming out about this story shows that they have been developing expertise in their staff to develop their IP estate. Sure looks like that has paid off for them.

This is one of many signs that China is becoming serious about IP and innovation, and not just low quality IP, but IP that can provide significant value. For IP to apparently be a crucial part of such a large loan in this challenging economic times is a remarkably positive sign for China, in my opinion.

On the other hand, the loan may be due to politics and guanxi with officials, and the IP is just window dressing. That’s possible. But to even choose IP as the window dressing for publicity and hype is a remarkable thing in it’s own right, and still a sign of China’s rapid transformation in valuing and pursuing intellectual property.

Here is my loose translation of the China Paper article:

泉林纸业知识产权质押融资创国内最高

Quanlin Paper Crafts the Nation’s Largest IP-Backed Financing

泉林公司以110件专利、34件注册商标等质押获得的这笔贷款,2月21日在国家知识产权局完成备案。经省知识产权局核实,这是迄今为止国内融资金额最大的一笔知识产权质押贷款。

On Feb. 21, 2014, Quanlin Paper secured a loan using a pledge of intellectual property. The pledge, recorded with the State Intellectual Property Office (SIPO), includes 110 patents and 34 registered trademarks. The Shandong Province Intellectual Property Office has verified that this is the largest amount ever financed in China using intellectual property.

“这笔资金到位,我们的大项目就能加快推进,市场机遇不等人啊!”李洪法说的大项目,是一个年处理150万吨秸秆的制浆造纸综合利用项目。泉林公司总部位于聊城市高唐县,是一家以浆纸业为核心的大型企业,利用秸秆制造“本色”纸品,变废为宝、环保健康,改写了人们对造纸业的既有印象,也在改变着人们的消费习惯。企业提出这个大项目后,很快得到环保部、国家发改委认可、立项,是全国资源综合利用和循环经济示范工程,也是2013年省重点建设项目。目前,项目基本建设已经全面展开,计划年底前建成,投产后,预计年可实现销售收入81.65亿元,销售税金4.89亿元,利润12.4亿元。

“With this funding obtained, we will be able to accelerate our large projects. Market opportunities wait for nobody!” said Chairman Li Hongfa. The primary project Li refers to is a straw-based pulp manufacturing complex for papermaking that will process 1.5 million tons per year of straw. Quanlin company is headquartered in Liaocheng City, Gaotang County (Shandong Province). Quanlin’s core business among their large-scale enterprises is pulp and paper manufacturing using straw to create “natural color” paper. Quanlin turns waste into treasure and promotes a healthy environment, transforming both the impression that people have (of the industry) and their habits of consumption.

After the enterprise brought this large project forward, it rapidly gained approval from the Environmental Bureau and the National Development and Reform Commission. The project is an important program for the nationwide comprehensive utilization of resources and a model project for China’s recycling economy. It was also considered a provincial key construction project in 2013. Currently, capital construction is fully underway and should be complete by year-end. Once production begins, the expected annual sales revenue will be 8.165 billion RMB, with anticipated sales taxes of 489 million RMB and annual profit of 1.24 billion RMB.

知识产权获资金市场高度认可,对科技型企业无疑是巨大的利好。尽管泉林公司本身的发展就是受益于在知识产权、核心技术上的不断投入——即使在企业资金最困难的时候,这上面也从来没有“短”过,李洪法这次还是被深深地触动了:在这次贷款中,企业拥有的专利评估价值达到了60亿元,对贷款顺利达成起到了关键作用。这意味着,专利等知识产权不仅能垄断市场、为企业创造长期利润;质押融来真金白银,更是能够解决科技型企业成长中最头疼的资金饥渴,释放发展潜力,及时把握市场机遇,让企业“长大”。

For intellectual property to receive this high level of approval from the market is without doubt a giant benefit for technological enterprises in general. Although Quanlin company’s own development has now benefited from their intellectual property, they continue to invest steadily in their core technology—continuing even during the times when investment is most difficult. This is an area where the company has never gone “short.” The result has made a deep impression on Li Hongfa: in the process of obtaining these loans, the appraised value of Quanlin’s patents reached 6 billion RMB and played a key role in successfully obtaining the financing. This means that patents and other IP rights are not just about obtaining a monopoly in the market, but can be used to creating long-term profit for the enterprise. They can be used as collateral for significant financing to resolve one the biggest headaches for high-tech businesses, the hunger for funds to grow, to capture hidden potential, grasp favorable market opportunities, and to let the company “grow up.”

这一融资方式也让银行对科技型企业增添了兴趣。不仅国家开发银行牵头银团,为泉林公司发放了这笔79亿元的贷款,交通银行甚至还与省科技厅签署专门的战略合作文件,并推出了专门的知识产权融资产品。交行山东省分行零售信贷部总经理姜鲁荣说,知识产权看似无形,却体现了企业价值创造和持续经营的能力,银行业务风险没有增加,却有可能抢占一批优质客户,改善银行客户结构,“就像泉林公司这样”。

This financing will stir the interest of banks other technology enterprises. Not only did the China Development Bank and their affiliates issue Quanlin a loan of 7.9 billion RMB, but the Bank of Communications also signed a strategic cooperation document with the Provincial Science and Technology Department, and launched a specialized intellectual property financing product. Jiang Lurong, General Manager of the Retail Credit Department of Shandong Branch Bank, said that while intellectual property seems invisible, it reflects value creation and the ability to continue operations without increasing banking risk, and can help obtain more high-quality customers, improve the system for customers of the bank such as companies like Quanlin.

Kudos, by the way, to Dr. Ian Feng of Goldeast Paper in Zhenjiang, China for alerting me to the story in China Paper.

By |2016-10-24T05:58:00-07:00March 7th, 2014|Categories: Business, China, Patent law|Tags: , , , |1 Comment
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