March '99 News and Perspectives about Business Opportunities in Asia

March 27, 1999

Not long ago, there was a story about NORDSTROM, describing how its success depended on the good services the retailer provided.In the USA, you can always expect to meet people with a smiling face in the SERVICE INDUSTRY. That is why the American consumer is king.

In mainland China, only the old-style merchants of Beijing had a reputation for their politeness to customers, even when no business was transacted. However, according to the Chinese communist outlook, they are there TO RULE not to SERVE, so the traditional Beijing spirit of service is long gone.

Thanks to Teng, the Short, the PRC adopted, about 20 years ago, a DE FACTO CAPITALISM, the so-called REFORM AND OPENING-UP that also changed the ideology of the service industries. nevertheless, they still do not come close to SPOILING the customers. Instead, there are reports of arbitrary body-searches or detention for shoplift suspects

Because the PRC service industries are highly vulnerable to the outside world, they are very resistant to allowing outside competitors to come in. This has been one of the main problems for PRC's joining into the WTO.

Recent reports indicate that the PRC premier could change China's stance and agree to expose their service industries to open competition with WTO members.

Since the service industry is the third biggest sector, next to manufacturing and agriculture, it looks extrtaordinarily encouraging for our readers outside of PRC. The PRC's service industry looks to be the Achilles heel of PRC. It should be one of the easiest points to tee off from into the PRC market.

Are you ready? We shall be pleased to be of help to you.

March 22, 1999

Most of us have heard of the story of Pheidippides, the Athenian who ran 25 Km from Marathon to Athens with the news of the historic Greek victory over the Persian army.

In Chinese history, about 3,000 years ago, there was an interesting communication invention, the FIRE BEACON, which burned WOLF-DUNG to give a bright signal, warning of the coming of barbarians or summoning outstation armies to come to the rescue of their sovereign.

That system was eventually replaced by speedy horseback riding couriers until the introduction of the telegraph.

Not many years after the invention of the telegraph, Alexander Graham Bell surpassed Samuel Finley Breeze Morse with his telephone invention, which has become one of the daily necessities of human everywhere.

Telecommunications via satellites have further changed the global communications system. Easy, convenient, and almost instantaneous, modern telecommunication modes (phone, internet, and others) have been embraced by consumers.

Most countries of the Pacific Rim have their own satellite projects, just as each country has its own airlines, as much for prestige as otherwise. PRC's telecommunications market, though a closed one, has been growing in the two figures annually, although ROC and other Pacific countries have achieved a higher percentage of users than PRC. Significantly, at this time, none of Asian markets is saturated.

As part of PRC's preparation to enter WTO, her premier just announced that the PRC market would be soon be opened up.

The potential for growth here is inestimable. Are you prepared to develop a share in this huge telecommunications frontier in the Pacific Rim market? We shall be pleased to offer you our experience in telecommunications bid submission and strategies to ease your business planning.

March 14, 1999

While most of the Asian countries are still either deeply stuck in the financial crisis or affected greatly by it, is it an opportune time to discuss the PREDICTION of John Naisbitt's MEGATRENDS IN ASIA in which he predicted the advent of the AGE OF DRAGON? At the time of publication of the book, he and all the financial gurus were not aware of the coming sharp downward turn, if not collapse, of many countries' economies.

Nevertheless, the author's points of view are fundamentally correct because the idiosyncratic Asian traits remain unchanged. For instance, there are still over 3 billion hardworking people in Asia, half of them under 25 years old. Their consuming capability will keep the long-term Asian market growing, a factor that will have a great impact in Asia and beyond.

He has also pointed out the crucial role of overseas Chinese in the Asian economy. These are Chinese who have migrated and lived for many hundreds of years in other Asian countries. Mr. Naisbitt has characterized them as a network of influence because they know and work with each other; their businesses, though independent, could collectively respond, in a concerted effort, to face any economic problem or crisis. He has cited many examples of their role and influence, though a bit exaggerated, in their respective countries of allegiance. The strength of this community lies in a combination of both small scale independence and large-scale influence, which gives it the ability to respond quickly to changing business environments. While local political conditions can either temporarily enhance or impede the effectiveness of this network (e.g., the current 'Asian flu'), the mode for the forseeable future is definitely growth.

Naisbitt's conclusion: If you wish to go to Asia for business, the local Chinese businessman is an ideal partner for you.

Please read his book and ponder over his ideas. When you are ready to go to Asia, we shall be pleased to arrange a suitable partner, overseas Chinese or not, in this re-emerging region.

1) More superhighways to be built in PRC: Although, PRC has 6,258 km
of superhighways, it is a miniscule figure for such a big mass of land.
With financing from Asian Bank and World Bank, PRC also needs good
superhighway contractors and good surveillance system. We can put our readers in touch with the right people for submission of proposals and bids.

2) In the process of modernization, certain of PRC's industries will be phased out due of low productivity. Examples include: coal, metallurgy, petrochemical, textile...etc. Does any of our readers have ideas about where some suitable relocation sites may be? We can introduce you to the right contacts.

A few years ago, 3 Scandinavian journalists jointly wrote an article with this warning for Europeans: In the 21st century, if they continue to be complacent, Europe could be in danger of becoming merely a historical museum for tourists, while Far Eastern countries (e.g., Pacific rim countries) will become the locomotive of the world economy. When they wrote the article, the "big dragon", Japan, the "small dragons", Taiwan, Hongkong, Singapore, and South Korea, plus the smaller growing "dragons", Thailand and Malaysia were showing their economic prowess all over the world.

Suddenly, the Asian financial crisis came, just like El Nino or la Nina, causing
upheaval and turnmoil all over the Asian Pacific region.

It has almost been two years since the advent of the fianancial crisis. We are starting to see an upturn in the economic situation: Taiwan's exports hiked up 15% last January, Japan's industrial products' value and consumers' expenditures all increased the same month. Meanwhile, PRC has successfully been trying hard to keep her currency stable. Based on these developments, top IMF offcials predict that the Asian economy is recovering and that the region will regain its growth strength, something coveted by other regions.

Perhaps what Hans Christian Andersen told his mother, and also served
as his motto, applies here: "First you must suffer the worst, then you become famous" will confirm the Asian economic situation at present and into the next
century.

Let us all pray that the Pacific Rim countries will continue their recovery;
we also pray that the European countries continue their upward economic trend without losing their admirable heritage and wonderful museums.

It is an opportune time to join the revived Pacific Rim economic wagon before you have to catch up with it, so don't miss out on this opportunity.

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