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Person of Interest : Alibaba’s Lucy Peng

Lucy Peng, (Peng Lei) has been with Alibaba since the beginning. She is one of the original 19 co-founders of the game-changing Hangzhou startup that went on to become one of the most talked about IPOs ever launched on the New York Stock Exchange.

Peng, who was not even sure which way the company would go when she signed on in the late 1990s is now listed as # 33 on Forbes Magazine list of the world’s most powerful women. After graduating in 1994 from the Hangzhou Institute of Commerce she taught college briefly before joining Jack Ma’s improbable venture. Peng has held various positions within Alibaba to include:

CEO of Alipay
Chief People Officer (HR)
CEO of Small and Micro Financial Services

Small and Micro Financial Services has been re-named Ant Financial Services. Ant Financial Services, which Peng heads up, processes Ali Pay transactions, handles the Yu’E Bao fund and manages a new internet bank. Ali Pay, which is like PayPal, has 100 million users. There are rumors that Ant Financial Services might go public in 2017. So far Jack Ma has no comment on this.

Last month, in May 2015, Jack Ma reshuffled his management team. CEO Jonathan Lu was replaced by accountant Daniel Zhang. Analysts said Ma did this to counter Alibaba’s falling share price and adverse publicity.

At the same time Ma sent a letter to his staff explaining that there must be a change of management to the 1970s generation. Previously, he himself had said that he was getting too old for the business.

So where does this leave Lucy Peng? Her name does not appear in the announcement of the re-shuffle, so it seems that she is secure, at least temporarily, in her position as CEO of one of the most promising of the Alibaba entities, which some day may have an IPO to rival Alibaba’s own.

Comments? Thoughts? Please log in and let us know.

Peng Lei Interview: The DNA Code of Alibaba

http://www.daonong.com/g/2009en/specialreport/20090914/10769.html

Alibaba Management

http://www.alibabagroup.com/en/about/leadership

Jack Ma’s Memo: Born in the 70’s

http://blogs.wsj.com/digits/2015/05/07/born-in-the-70s-jack-mas-memo-to-alibaba-employees-on-management-shuffle/

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

Joe Biden Lays Out Tough US Policy at Annapolis

by David Parmer

The U.S. Vice President’s speech at the U.S. Naval Academy graduation on May 22 was pure Biden. The Vice President engaged his audience as only a seasoned politician can do. In just over 25 minutes he made remarks appropriate to the occasion, acknowledged dignitaries and treated all to samples of the Biden wit and humor. That’s not to say that the speech lacked gravitas; he praised the hard work of the graduates and wished them well in their chosen careers in the U.S. Navy or U.S. Marine Corps, and explained how much the country needs them. It was a fine commencement speech indeed.

However, what could easily be overlooked with the emphasis on humor and ceremony was the tough policy speech that was wrapped in that framework. Mr. Biden laid out U.S. foreign policy clearly and bluntly. He explained that the U.S. was not only a world power, but a Pacific power, and that the U.S. had been active in the Pacific for the past 60 years and would continue to be so. He pointed the finger at China for its actions in the South China Sea, and criticized China’s unilateral policy in the area. And in a strong statement, after enumerating U.S. naval power, he said “…woe betide the foe who decides to challenge the United States of America or our Navy.” And to further make his point he said: “America’s command of the oceans is the measure and the symbol of our diplomatic and military primacy in the world.”

In 1900, U.S. President Teddy Roosevelt wrote: “Speak softly and carry a big stick; you will go far.” Roosevelt’s America had a strong navy and was not afraid to use it. It seems as if on May 22, Vice President Biden was channeling the spirit of Teddy Roosevelt to a receptive audience of sailors and marines.

Just down the road is the U.S. presidential election in 2016. Mr. Biden has not ruled out seeking the nomination. And, Mr. Biden’s speech at the U.S. Naval Academy did not seem Vice Presidential, but rather more Presidential. He laid out a bold vision of American power in this century and beyond. Perhaps Joe Biden is not ready to sail off into the sunset just yet. Judged by his Annapolis speech, it would seem that that is the case.

Excerpts from Vice President Biden’s Speech at Annapolis on May 22, 2015

U.S. foreign policy is rebalancing toward the vast potential of the Asia Pacific region. But we can’t succeed if you don’t show up. That’s why 60 percent of the United States Naval forces will be stationed in the Asia Pacific by 2020 — P-8s, Zumwalt-class destroyers, littoral combat ships, forward-deployed forces, Marines in Darwin — all and many more are headed to the Pacific, and so are many of you. And it matters — because Pacific peace and prosperity, to a great extent, has depended on and will continue to depend on U.S. Naval power, just as it has for the past 60 years.

In the disputed waters of the South China Sea, the United States does not privilege the claims of one nation over another. But we do — unapologetically — stand up for the equitable and peaceful resolution of disputes and for the freedom of navigation.

And today, these principles are being tested by Chinese activities in the South China Sea. They’re building airstrips –the placing of oil rigs, the imposition of unilateral bans on fishing in disputed territories, the declaration of air-defense zones, the reclamation of land, which other countries are doing, but not nearly on the massive scale the Chinese are doing.

We will look to you to guarantee our strategic nuclear deterrence serving in Navy ballistic missile submarines, the most secure and survivable element of our nuclear triad. From the offensive firepower of the Marine Expeditionary Force to our Carrier strike forces to our multi-nation ballistic missile defense capable ships [sic], woe betide the foe who decides to challenge the United States of America or our Navy.

America’s command of the oceans is the measure and the symbol of our diplomatic and military primacy in the world. As George Washington remarked during the Revolutionary War, “It follows then as certain as that night succeeds day that without a decisive naval force we can do nothing definitive. And with it, everything honorable and glorious.” That hasn’t changed one single bit.

https://www.whitehouse.gov/the-press-office/2015/05/22/commencement-address-vice-president-united-states-naval-academy

Photo: U.S. Naval Academy (public domain) via flickr

China – Taiwan Relations: Iceberg Ahead!

(Photo: Focus Taiwan News)

by David Parmer

It is 2015 and a woman is running for president. Not in the US, but in Taiwan.The Democratic Progressive Party’s (DPP) Chair, Tsai Ing-wen has declared herself a candidate for president in the coming 2016 elections. This will be her second run for president. She also ran in 2012, but was defeated by Taiwan’s current president, Ma Ying-jeou.

Voters gave the DPP a resounding victory in local elections in autumn 2014, and Taiwan’s President Ma stepped down as KMT party president to take responsibility for the poor showing.

It looks like the voters will again hand the KMT a defeat, this time in the 2016 general election for President, Vice-President and Legislative Yuan. Current KMT president and mayor of New Taipei City, Eric Chu, has said that he is not going to run in 2016. If the chances of winning are as slim as they look, maybe Mr. Chu does not want to damage his political reputation by being beaten in a lopsided presidential election.

If Tsai Ing-wen does become president, and the DPP gets the landslide victory that many anticipate, then cross strait relations with the People’s Republic will take a new direction.

The Wall Street Journal reported ( April 15, 2015) that Tsai has already said relations with the PRC will remain unchanged and the status quo will be respected.

But. The DPP has made its position quite clear. In 2007 it called for a separate identity for Taiwan. What’s more, the party considers Taiwan independence a fact, and rejects the one-China principle. On its website, the DPP describes itself as favoring a “balanced international perspective” “Taiwan-centric identity” and “strong progressive values.”

Tsai’s statement favoring the status quo regarding cross strait relations may not satisfy anyone. The DPP is the DPP and Taiwan uniting with the mainland does not seem to be part of their DNA.

Could this issue be the one chance that the KMT has to narrow the odds in the 2016 election, or even win the election? Many have benefited from the warmer relations between the PRC and Taiwan during the Ma years, in a sense they have a real vested interest in their own “status quo”, that is, improved economic and social relations with the mainland.

And. Then there is the coalition of students and independent groups that made up the Sunflower Movement of 2014 that occupied the Legislative Yuan. Their complaint was with the KMT and its cross strait trade policy, but even if the DPP wins in 2016, will the younger generation be satisfied with “business as usual” or “business as usual 1.1 DPP style”?

Finally. In the world of politics, where pragmatism often trumps principles, perhaps an “accommodation” could be reached between the PRC and DPP favoring the status quo and business as usual.

Except. That there is a metaphorical iceberg in the Taiwan Strait, and that is Taiwan Independence. Sooner or later action must be taken to deal with the issue. And each party has a radically different solution to the problem.

Taiwan Elections 2014: DPP Scores Big Win

Taiwan DPP Victory 29 Nov. 2014

DPP Chair Tsai Ing-wen Announces Victory in 2014 Election (Photo: DPP)

Taiwan’s Democratic Progressive Party (DPP) scored a decisive win over the ruling Nationalist Party (KMT) this weekend. The nine-in-one elections saw the opposition victorious in Taipei, Taoyuan and Greater Taichung. This election was the first time that the KMT had lost Taipei since 1998.

As a result of the election, Prime Minister Jiang Yi-huah resigned. President Ma Ying-jeou accepted Jiang’s resignation, apologized for the defeat and vowed to fight on. Observers seen the local election results as a referendum on Ma’s presidency, and a possible barometer for the 2016 presidential elections.The dismal showing by the KMT suggests that a majority of the Taiwanese people are not happy with KMT policies, particularly its ongoing relationship with Beijing.

Taipei Times: Premier Quits After Landslide Defeat:

http://www.taipeitimes.com/News/front/archives/2014/11/30/2003605651

DPP Chair’s Remarks on Victory:

http://english.dpp.org.tw/the-taiwanese-people-have-spoken/

Person of Interest: Narendra Modi, India’s 15th PM

by David Parmer / Tokyo

“However advanced the technology may become, life is impossible without humanity, and that’s why we need a combination of science of thinking and art of living” Indian PM N. Modi in Japan

Narendra Modi became India’s 15th Prime Minister on 26 May 2014. It was a long road to the top, and one characterized by incessant hard work and self-transformation. Modi came from a modest home in India’s Gujurat state. He was reported to be an average student with a flair for rhetoric. While still a pre-teen he became interested in politics, and served a long political apprenticeship with the Rashtriya Swayamsevak Sangh (RSS) or National Volunteer Organization, an Hindu patriotic organization.

In his teen years he travelled throughout his country, often visiting Ashrams or religious schools, but he eventually returned to politics as a full-time RSS worker. Modi then became involved in Gujurat politics and finally rose to the position of chief minister. During this time he joined the Bharatiya Janta Party (BJP). In 2001 Modi was named chief minister of Gujurat, a position that he held until he was elected PM in 2014. In 2002 the notorious Gujurat riots occurred in which ethnic Hindu-Muslim violence resulted in the death of hundreds and possibly thousands of people. Modi was cleared of responsibility by the courts, but many continue to hold him responsible for the violence. During his tenure as chief minister of Gujurat Modi emphasized economic development. In 2014 he won a clear majority as BJP supported prime minister.

Modi is an interesting and complex character. He is a writer and poet with a flair for effective use of social media. On his website you can download some of his eBooks including:

Engaging the world
Make India Win
Fast Track Diplomacy
Digital Gujarat

Modi is a vegetarian who practices yoga and says he relaxes by working. A smart dresser, Indian media reports that he studied Public Relations techniques overseas. And he is nothing if not ambitious and forward looking. If there is such a thing as Indian soft power, PM Modi is its rock star. While he claims that he is not trying to counter Chinese influence, he is often traveling and meeting with regional and world leaders. India will hold a summit of 12 Pacific island nations in 2015, and President Barack Obama will be chief guest at India’s 66h Republic Day on January 26, 2015.

So the question is this: Is Mr. Modi what he seems to be? Is he an Indian nationalist who has become an internationalist? Is the evolution of Narendra Modi from local Hindu politician to world leader complete, or is he just getting started? Perhaps Mr. M. is the right man at the right time for India, for the region and the world. Let us hope so.

Narendra Modi ebooks online

http://www.narendramodi.in/category/ebooks/

Photo: Narendra Modi via flickr

China Unveils J-31 Stealth Fighter At Zuhai Airshow

PRC Stealth.jpg

Chinese J31 Stealth Fighter (Photo: SinaBlog)

China showed off its new J-31 stealth fighter at the biennial Zuhai Air Show last week. Known as the “Falcon Eagle”, the J-31 is China’s answer to America’s Lockheed Martin F-35. Built by the Aviation Industry Corporation of China (AVIC) this fifth generation fighter aircraft uses Chinese technology and is powered by Russian Klimov RD-93 engines. The J-31, like the F-35 is capable of being used on aircraft carriers. This would make it a prime candidate for China’s expanding naval aviation capability.

Of note at the Zuhai show was a scale model of the Shenyang FC-31, an export model of the J-31 produced by AVIC’s subsidiary Shenyang Aviation Company. According to experts, the FC-31 shows modifications not seen on the flying model of the J-31. The big question is who would be in the market for the FC-31. What countries have the need and could afford to add an advanced stealth fighter to their lineup? Pakistan is often cited as a possible customer for the J-31 to counter Indian acquisition of its own stealth fighter.

Recently, China has been criticized for being opaque in its defense capabilities and expenditures. The introduction of the J-31 in public might not have been designed to foster transparency, but it did give observers a first-hand look at what China is up to in the sky.

http://www.defensenews.com/article/20141115/DEFREG03/311150035/With-J-31-Flight-China-Makes-Statement

On The Silk Road Again

(Photo: Wikimedia)

by David Parmer

Just about a year ago (November 2013) RG21 took a look at the development of the New Silk Road, (http://research-group21.com/admin/mt.cgi?__mode=view&_type=entry&blog_id=3&id=98) the revival of the ancient route linking the Orient and Occident. China is now giving focused attention to this project, and so this week we will bring you an update on developments.

China’s Xinhua News agency reported on November 8, that President Xi Jinping had pledged $40 billion for a New Silk Road Fund to link China and Europe. The fund to be overseen by Chinese banks, notably China Development Bank would promote the development of railways, ports, roads, pipelines and ports and related infrastructure.

The plan calls for not only a land-based Silk Road, but a maritime one as well. The land route would begin in Xi’an and end up in Europe, while the sea route would start in Guangdong province and terminate in Venice.

New Silk Road (Xinhua via Diplomat)

The plan is bold and ambitious, but not without its dangers. The vulnerability for the land route lies in its traversing so many countries, subject these days to wars, revolutions and changes of government. A large section of the route goes through Russia which has ongoing tensions with Europe over Ukraine. Logistically, problems of customs clearance and different railroad track gauges need to be addressed. It seems that while the world is focusing on the Middle East and Iraq, China is taking a long term view that may just alter the face of global trade in modern times as did the original Silk Road in ancient times.

Xinhua : http://news.xinhuanet.com/english/china/2014-11/08/c_133774993.htm

Financial Times: http://www.ft.com/intl/cms/s/0/e8664a0e-44dd-11e4-9a5a-00144feabdc0.html

ASEAN Members: Singapore

480px-View_from_UOB_Plaza_1,_Singapore_-_20091211.jpg Singapore Skyline (Wikimedia)

by David Parmer

In many ways Singapore can be considered an accidental country. It seems historical and geographical factors converged to create a unique state that started its life as a colonial possession and evolved to become a vibrant Asian democracy which has yet to reach its potential as a regional leader and model.

There is an old saying in the real estate business: “location, location, location.” Meaning location is the key to property value. And “location” is just one of Singapore’s selling points. Singapore is located at the tip of the Malay peninsula with the Strait of Malacca to its left and the South China Sea to its right. The country consists of 63 islands and has a land mass of 241 sq. mi (624 sq.km)

The Strait of Malacca is one of the busiest waterways in the world, which makes Singapore one of the five busiest ports in the world. And this facilitates another Singapore business; ship repair. Other sectors of the vibrant Singapore economy include:

Financial services
Oil drilling
Rubber production
Manufacturing
Tourism

To staff these industries Singapore can call upon a population of around 5.5 million-40% of whom are non-citizens. Singaporeans speak English (30%) Mandarin Chinese (50%) and Malay (12%) Tamil (03%). Other dialects of Chinese are also spoken. English, however, is considered a primary language. Singapore has an extensive state-supported school system in which students score high in mathematics and science. There are also two local public universities that are highly ranked internationally.

Singapore’s British connection began with a treaty to establish a trading post signed by Sir Stamford Raffles and the Sultan of Johor in 1819. It became a Crown Colony in 1946, achieved full self government in 1959. It briefly joined the Federation of Malaysia in 1963, and, in 1965, became a parliamentary republic.

Present day Singapore is one of the five founding members of ASEAN, is a member of the Non-Aligned Movement, and is a member of the British Commonwealth of Nations.

In general Singapore has good relations with its neighbors, although there are border issues with Malaysia and an ongoing and severe pollution problem caused by slash-and-burn agriculture in neighboring Indonesia that blankets the city and often causes serious visibility problems in the hyper-busy Strait of Malacca.

Singapore has a capable military and mandatory national service (draft). The country had assistance from Israel’s IDF in setting up its military, and besides Israel it has military connections with Australia, France and the US.

Singapore, the accidental country, looks to have a bright future. The real question is can it continue to embrace its ethnic and linguistic diversity to forge a long term and unique Singapore identity that will let it play to its strengths in this century and beyond. So far, so good.

https://www.cia.gov/library/publications/the-world-factbook/geos/sn.html

http://en.wikipedia.org/wiki/Singapore#History

http://www.yoursingapore.com/meet-know-singapore.html