News | RG21 - Part 22

Jack Ma and Alibaba Take A Big Hit

Internet giant Alibaba has taken a substantial hit this week when its stock price dropped by 5%. The stock closed at $73.38, the lowest since the 2014 NYSE IPO. The company reported a 28% increase in earnings, but this was below market expectations. Analysts say Alibaba is faced with the slowing of the Chinese economy and stiff competition from rival Internet companies Baidu and Tencent.

Alibaba founder Jack Ma’s personal fortune is said to have declined $752 million with the fall of the stock price. To reassure investors, the company has agreed to a $4 billion buyback and the founder and current executive vice chairman say they will not sell their Alibaba shares.

On a positive note, the company seems to still have an appetite for expansion. They will invest $4.6 billion in Chinese electronics retailer Suning. This will give Alibaba access to a ready-made distribution network to increase speed of delivery in the Chinese market. Ma says that he takes the long view on this situation.

(Report compiled from Web sources)

Laos Mobile Catches Up

by David Parmer

Laos is joining the 21st century-fast, but it has a long way to go to catch up to some of its Southeast Asian neighbors.

In this country of just over 6.0 million people, most of the inhabitants are found in rural areas, something like 73% of its people live on the land. Efforts are being made to connect people, but Internet use is the lowest in the region at around 8-10%; the only other countries with LESS connectivity are Myanmar at 1% and East Timor at 0.2%.

And Laos, like its neighbors in Vietnam and Cambodia looks to be skipping the PC and going to tablet and mobile, mostly mobile. The country has 3.8 million mobile users, which makes mobile penetration at around 60%. And it is expected that by the end of 2015 there will be 5.4 million mobile users.

There are four mobile providers in Laos:

Lao Telecom
ETL
Beeline
Unitel

Recent government regulations have created a level playing field where prices are about the same regardless of provider.

Uses choose their provider based on location and service.

The government says it has no plans to crack down on social media as it is necessary for development, but on the other hand keeps a tight control on content, particularly any criticism of the government or any anti-social content. Vietnam and Thailand have similar controls in place regarding internet content.

It will be interesting to watch how this country, like some of its neighbors will be changed forever with the advancement of hi-tech communications. Now Myanmar and East Timor have to catch up.

Photo: Talk Vietnam

70 Years Ago – Shanghai’s Refuge For European Jews

Shanghai Former Jewish Ghetto (Photo: JN)

In September 1945 Shanghai was liberated and the nightmare of WWII ended for some 20,000 European Jews in the Shanghai Ghetto.

From 1938 onward Shanghai had been a haven for Jews escaping Nazi persecution and certain death in Europe. In 1938 the Nazis annexed Austria, and this started the flood of Jews out of Europe. Some were lucky to get to America or other democratic countries, but many had only one hope: to get to Shanghai. Diplomats like Japan’s Chiune Sugihara and China’s Ho Feng Shan issued transit visas to the Jews against the orders of their superiors.

Once in Shanghai, the Jews had the support of the existing Jewish community, made of an earlier generation of Baghdadi Jews who had come to Shanghai decades before and done well in commerce. These included the Sassoon’s, Hardoons and Kadoories. Help for the refugees was also given by American Jewish organizations, although such aid was cut off after Pearl Harbor.

Jews who had a profession did the best in their new circumstances, and Shanghai was fortunate to get more than 100 European doctors. Others formed businesses and practiced what skills they had. Shanghai Jews also had a rich cultural life despite a lack of resources.

In 1943 the Jews were ordered to move to the “Restricted Sector for Stateless Refugees” or what came to be known as the Shanghai Ghetto. From February 18, 1943 until September 3, 1945 Jews were required to live in a one square mile area of Hongkou. There they endured hunger, overcrowding and cold, but they survived. Reports state that the Jews got along well with their Chinese neighbors, and many wrote and spoke of the kindness of the Chinese.

After 1945 the Jews dispersed, some to Europe, some to America, and some to Palestine. Some might say the fact that Shanghai was refuge to 20,000 people was indeed a lucky “accident” of history, while others might see it as evidence of the work of providence or a higher power. Whichever you choose to believe, it was indeed a welcome refuge from the storm that swept the world during World War II.

Ho Feng Shan: Chinese Official Who Saved Jews

https://en.wikipedia.org/wiki/Ho_Feng-Shan

Chiune Sugihara: Japanese Official Who Saved Jews

http://www.japantimes.co.jp/news/2015/07/11/national/history/chiune-sugihara-man-conscience/#.VbXZmGAdL8t

Asian Waters—The Astounding Pearl River Delta

Shunde, Foshan, Guangdong PRC (Photo: topwalls)

by David Parmer

Southern China’s Pearl River is 2400 kilometers long, making it the country’s third longest waterway. A glance at the map shows not one river, but rather a river system that becomes the Pearl River. The Liuxi, Xi (West) Bei (North) and Dong ( East) Rivers join at Guangzhou and flow into the Pearl River Delta (PRD) and the South China Sea.

Just 30 years ago the PRD would have been impressive, and yes historic as China’s gateway to the West. But now,…now the PRD is the Pearl River Delta Economic Zone, and what was once green farmland with blue skies is now an urban megacity. Since 1980 there has been an astounding and amazing transformation that is far from over. Guangdong province has a population estimated at 83,000,000 and an area of 177,600 square kilometers; the area of the Pearl River Delta is estimated to be 55,000 square kilometers.

The Pearl River Delta is composed of 9 cities +2. They are:

Shenzhen
Dongguan
Huizhou
Zhuhai
Zongshan
Jiangmen
Guangzhou
Foshan
Zaoqing
Macau +Hong Kong

Pearl River Delta (via wikimedia)

The area has been called the “world’s workshop” for good reason. Simply put, if you use some manufactured product today, whatever it is, there is a good chance it has been produced in the PRD area. Clothing, electronics, watches, clocks garments, textiles and 60% of the world’s toys – all come from the PRD. And the industries mentioned above form industrial clusters where similar products are made with great efficiency. Couple all this with complete land, water and air transportation and excellent ports and you have today’s PRD.

China’s central government has big plans for this area. Big plans. By 2030 the area will be one big city of 40 million, any part of which can be reached by high speed train in one hour. ( Of note, the government is also planning a mega city in the North, combining Beijing, Tianjin and Hebei. This area will contain the dynamic Bohai Sea economic zone as well). Mass urbanization is clearly the future of China. The land-tilling peasant of past centuries will be but a memory. Within the megacities citizens will be free to move and not be restricted to the city, town or village where they are registered.

Pearl River at Guangzhou ( R.Morbach via flickr)

The Pearl River moves from west to east, gathers and flows into the South China Sea and forms its own amazing delta, and is witness to the ongoing creation of the greatest urban area ever created in China, or on the Earth for that matter.

70 Years Ago – Deng Xiaoping’s War

Deng Xiao Ping with the Eighth Route Army (Photo: eng.people.cn)

by David Parmer

“Deng was a military leader for twelve years and even later described himself as a soldier.”Ezra Vogel, Deng Xiaoping and the Transformation of China (Pg. 7)

When we consider the life and works of Deng Xiaoping, it is easy to focus on the second half of his life, on his great achievements in promoting Reform and Opening Up. The “harvest” period of his life is inspiring. To observe him making policy decisions that solved seemingly unsolvable problems, repairing damage and innovating is indeed instructive. But this period was almost a “second life” for Deng. In his “first life” Deng Xiaoping was a soldier of the People’s Liberation Army (PLA).

Deng Xiaoping went to France in the early 20th century and there became a life-long communist. In France he worked with Zhou Enlai and others who would lead the revolution, and whose careers would follow a parallel track to Deng’s.

During his military career he worked as a staff officer and political commissar. The Red Army, later the PLA, placed heavy emphasis on the political education of its soldiers. In his 1940 book, The Chinese Army It’s Organization and Military Efficiency, Evans Fordyce Carlson wrote about the Eighth Route Army and the important role of the political commissar:

“In order that the rank and file of the army may attain political knowledge and a high ethical standard, the system of political commissars is employed. Each unit of the army has a political commissar whose authority is equal to that of the military commander. The commander and the commissar keep themselves informed of each other’s professional activities, and they consult with each other before major decisions are made. Training for the troops are divided in the ratio of sixty percent military instruction to forty percent political indoctrination.” (Pg. 36)

After leaving France Deng stopped in Russia for several months. When he returned to China he began his military career. The timeline* looks like this:

1927-Involved in forming a peasant army in Kiangsi

1927- Member of the Seventh Red Army, Lungchow

1930 – Member Eighth Route Army, Changsha

1932-1934 – Member Political Department of the Red Army

1934-1935 – Deputy of 12th Division, Long March

1936 – Political Commissar of First Army Corps

1937 – Political Commissar of 129th Division

1943 – Head of the People’s Revolutionary Military Council

1942-1949 Member Second Field Army

1949 – Political Commissar of Liu Bocheng’s Army of Victory

As the timeline shows, Deng Xiaoping was in military leadership for 12 years during WWII, but his greater military career actually spanned 20+ years.

During the second half of his life, Deng’s career had its ups and downs, and he experienced his share of disappointment, setbacks and personal tragedy. Yet he went on do work that forever changed the trajectory and shape of the People’s Republic of China. What sustained Deng in his dark days? Certainly his life-long communist beliefs, but also the discipline and fortitude forged by his 20 years as a soldier.

Ezra Vogel, Deng Xiaoping and the Transformation of China

http://www.amazon.com/Deng-Xiaoping-Transformation-China-Vogel/dp/0674725867

*Edgar Snow, Red Star Over China (Timeline)

http://www.amazon.com/Red-Star-over-China-Communism/dp/0802150934/ref=sr_1_1?s=books&ie=UTF8&qid=1436331452&sr=1-1&keywords=Red+Star+Over+China

ASEAN Outlook: Vietnam’s Coffee Culture

Vietnam coffee bush (Photo: Hugh Derr flickr )

What country in the world produces the second largest amount of coffee beans? You might think the number one and two spots would be countries in South America, but you would be wrong.The world’s number one coffee producer is Brazil and number two is…Vietnam.That’s right.The former French colony has been producing coffee since the late 1850s.Vietnam’s highland climate is ideal for producing the delicious and profitable bean. And over the past hundred or so years, Vietnam has created its own coffee-producing and drinking culture.

The two stars of the coffee bean world are the more-expensive Arabica bean and the humble Robusta bean.Vietnam produces mostly Robusta beans: high in caffeine, bitter tasting and ideal for use in instant coffee and espresso. Ninety-seven percent of all Vietnam beans are Robusta. According to the Vietnam Ministry of Agriculture and Rural Development in 2014 the country produced 1.5 million tons of coffee worth an estimated $3 billion. Data from the U.S. Department of Agriculture shows that while the coffee yield in 2015 will be slightly below record levels in 2013-2014, output for the next two years should be pretty good. And to keep things rolling along in a positive direction, Reuters reported on May 13, 2015, that the Vietnam Agribank will provide soft loans to coffee growers until 2020 to replace old trees and boost output.

Vietnamese food and phin filter coffee (Photo: Christina Andrada flickr )

As for coffee drinking, Vietnamese coffee is made using a metallic filter device called a phin. (No paper filters are involved.) Traditionally, condensed milk is added to the coffee cup, then coffee and hot water are added to the filter. The coffee drips through, and the coffee can be stirred and drunk once the filter is removed, or the coffee and milk mixture can be poured over ice for delicious iced coffee. Either way, the coffee is an excellent compliment to Vietnamese foods and snacks. To slow down, relax and enjoy a good cup of coffee is important for those experiencing stressful modern life, and the Vietnamese way to do that is one of the best.

About coffee/Trung-Nguyen Co. (Vietnam)

http://www.trung-nguyen-online.com/about-vietnamese-coffee.php

US Deptment of Agriculture/ Coffee World Markets and Trade 2015-2016 Forecast

https://apps.fas.usda.gov/psdonline/circulars/coffee.pdf

Singapore Armed Forces – Small but With a Lethal Sting

Singapore Soldier.jpg Singapore Soldier (Photo: tumblr)

by David Parmer

“Singapore’s defence policy is based on the twin pillars of deterence and diplomacy.” (MOD, Singapore)

In 2015 Singapore celebraties the 50th anniversary of its Independence, and on July 1 it will celebrate Armed Forces Day. In this anniversary year the people of Singapore can take pride in the fact that they have substantial and professional armed forces protecting their freedom. The history of these forces starts under the British, where various volunteer forces made up the local contingent that fought in WWII, and finally morphed into the present Singapore Armed Forces. These armed forces are made up of:

The Singapore Army
The Republic of Singapore Air Force
The Republic of Singapore Navy

The SAF has an estimated strength of 70,000 active duty personnel and about 90,000 reservists. What are called “National Servicemen” make up 80% of the forces. All males over 18 are required to serve two years’ active duty and are obligated for another 10-year reservist cycle. Women are not conscripted but may volunteer for duty.

The deterence and diplomacy of the country’s defence policy has two pillars:

A strong and capable SAF
Strong and friendly ties with defence establishments around the world

To carry out the first objective, the SAF is continually modernizing. It is now in what it calls its third generation of development. The first generation was simply basic defense, the second generation was the process of upgrading and modernizing equipment, (some of which is produced locally to local specifications) and the third generation is to adapt to conditions in a post-9/11 world where it must be able to deal with both piracy and terrorism as well as conventional missions.

SAF Apache Helicopter (MOD via flickr)

As for “strong and friendly ties” with other countries, first Singapore is a member of the Five Power Defence Arrangements which includes Singapore, the United Kingdom, Australia, New Zealand and Malaysia. Singapore also has close ties with the United States and since 1990 there has been an arrangement where US naval forces can use Singapore facilities. Singapore also works with ASEAN, and is active in the ASEAN Defence Ministers’ Meeting. Since 2002 Singapore has hosted the Shangri La Dialogue, a meeting of defence ministers and defence officials. To round out its international activities, the SAF has participated in numerous Peace Keeping Operations (PKO) and relief missions worldwide.

The SAF maintains a high level of operational readiness to defend Singapore against threats from the land, sea, or air. In order to defend Singapore against a widened spectrum of threats, including non-state threats such as terrorism and piracy, the SAF’s task forces bring together capabilities across the SAF, and work together with other national agencies, to respond swiftly and effectively to potential threats. (SAF Website)

In just 50 years the Republic of Singapore has made remarkable progress, leveraging its location and human capital to become one of the leading economic powerhouses in Asia and a model for what a city-state with multi-racial population can achieve. Remarkable progress and achievement is also the hallmark of the Republic’s armed forces, who in just 50 years have made themselves into a modern, regional force to be reckoned with.

Ministry of Defence Republic of Singapore

http://www.mindef.gov.sg/imindef/home.html

Ministry of Defence Republic of Singapore All Websites

http://www.mindef.gov.sg/content/imindef/allwebsites/webdir.html#tab-1

Singapore Armed Forces

https://en.wikipedia.org/wiki/Singapore_Armed_Forces

Asian Waters—The Beautiful Amur River

Amur/ Heilongjiang River (Photo: GointoChina.com)

by David Parmer

It would not be surprising to mention the Amur River and draw a blank from most people. Seems like just about everyone has heard of the Yangtze, the Mississippi, the Don, the Volga the Rhine and the Nile and the Amazon. But the Amur River?

That’s strange because it is one of the world’s 10 longest rivers. The Amur (know in China as the Heilongjiang, or Black Dragon River) starts in western Manchuria at the confluence of the Shilka and Ergune Rivers. It flows eastward, from Mongolia and for 3,000 km, forms the border between Russia and China arriving at the Russian city of Khabarovsk before turning north and finally emptying into the Strait of Tartary near the island of Sakhalin. The Amur is approximately 4,000 km long with a drainage area of just under 2 million square km. It is one of the world’s largest remaining free flowing rivers.

Amur River Map (Wikipedia)

Historically the Amur was the backdrop for several successful and unsuccessful Russian expansions to the East. Russian dreams of riches and new land remind one of the movement westward in 19th century America. The Amur River region made headlines in 1969, when the Sino-Soviet conflict broke out along the Ussuri River which flows into the Amur at Khabarovsk. Russian and Chinese forces battled over an island known to the Chinese as Zhenbao Island and to the Russians as Damansky Island. There was small unit fighting supported by artillery and both sides suffered loss of life. In the years following the incident China began secret negotiations with the US culminating in Richard Nixon’s visit to China in 1972. Both the US and China were concerned how to counter Soviet power, and this probably was one of the chief causes for the thaw in relations between the US and China.

Amur Tiger (Photo: V. Solkin WWF Rusia)

The river’s relative obscurity is probably a good thing for the wildlife of the Amur River. Mass tourism would surely damage what is an amazing ecosystem filled with biodiversity. Wildlife found along the Amur include the Amur Tiger, the Far Eastern Leopard, the Mongolian Gazelle, the Red Crowned Crane and the Amur Sturgeon. The Amur can also boast of an amazing diversity of landscapes. And while mass tourism doe not threaten the river, in its lower reaches there is water pollution, and industrial damage from the Soviet Era. In some areas along the river the Russian side is fairly pristine, while the Chinese side is heavily populated.

So for its own sake, is it better that the Amur River is unknown, or should there be greater awareness of one of Asia’s most beautiful waterways?

WWF-Russia Excellent Presentation on Amur River

http://www.wwf.ru/resources/publ/book/eng/299

Person of Interest: President Benigno Aquino III

Phillipines President Benigno Aquino III (Photo: WEF)

Benigno Aquino III was inaugurated on June 30th, 2010 as President of The Philippines. 2015 marks the fifth year is his single, six year term. This past week saw the President in Tokyo, meeting Japanese Prime Minister Shinzo Abe and discussing closer military ties with Japan aimed at thwarting Chinese ambitions in the South China Sea. They reportedly discussed a Visiting Forces Agreement with Japan, similar to the one in place with the U.S., where foreign forces could refuel at Philippine ports, thus extending their range of operations. During his visit the President also compared China to Nazi Germany during WWII.

Mr. Aquino is the son of former President Corazon Aquino, and Senator Benigno Aquino. He was born on February 8, 1960. He earned a BA in Economics in 1981 and was elected to the House of Representatives in 1998, and then to the Philippine Senate. After the death of his mother he was asked to run for President, accepted, and was elected in 2010.

An article in the Philippine Star last year ( June 18, 2014) gave a report card for the first part of Mr. Aquino’s presidency.

Improved

Economy in better shape
Country upgraded for investment
Corruption addressed
Responsible Parenthood law passed

Still Need attention

High food prices
High cost of energy
Infrastructure improvement poorly handled

In the short term, The Philippines also has to give attention to its tourism industry and minerals industry as well as to deal with a domestic insurrection in the south of the country. Mr. Aquino’s final year and a half in office looks like it will be as challenging as ever, in particular, the country’s ongoing territorial dispute with China which does not look like it will be settled any time soon.

Myanmar’s Hot Mobile Phone Sector Key To Change

( Photo:Telenor Website Myanmar)

by David Parmer

If you are looking toward politics as the driving force for change in Myanmar, you are probably looking in the wrong direction. For technology, not politics, is transforming what was formerly one of the world’s most reclusive countries. And the leading agent of technological change is the mobile phone. Myanmar’s mobile phone revolution is letting the country bypass the personal computer phase of development and go directly to handset and tablet.

The Nikkei Asia Review reported that there were 10.7 million mobile subscribers by the end of September 2014, up 87% from the end of 2013. The mobile penetration rate stands at 20%, with the government predicting 80% 3G penetration by 2016. Prices for SIM cards have plummeted and competition for subscribers is fierce.

Since the lifting of sanctions in 2013 two foreign firms have been allowed to enter the Myanmar market. They are Ooredoo from Qatar, and Telenor Group from Norway. Both companies have experience is emerging markets, and both are off to a good start. Competition between the two firms is intense, with Telenor taking the lead in number of subscribers causing Ooredoo to find a new Myanmar CEO to head up operations in 2015.

Forbes magazine lists Myanmar as one of the fastest growing economies in the world. Years of military rule and isolation have left the country with a stunted infrastructure for its mostly-agricultural economy. Infrastructure is not the only drawback in doing business in Myanmar, a lack of trained, tech-savvy bi-lingual staff is also a challenge. And as for e-commerce, Tech In Asia reports that there is both a lack of vendors and a lack of logistics ability to handle a vibrant e-commerce sector.

So far, the new Myanmar is an Android nation with estimates of the number of Android users being anywhere from 75-95% of total users. Also, Shenzen-based Huawei dominates the handset market, with Samsung coming in second. For those who are interested in predicting trends in Myanmar, technology might be a better focus than politics, because in the world of hyper-tech, politics is yesterday’s news.

Forbes The Rebirth of Burma

http://www.forbes.com/sites/forbesinternational/2015/01/09/the-rebirth-of-burma/