Table of Contents: Jan-Feb 2009 China Business Review

8/14/2019 Table of Contents: Jan-Feb 2009 China Business Review

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J a n u a r y F e b r u a r y 2 0 0 9 V o l u m e 3 6 N u m b e r 1

Focus: Media and AdvertisingChina Media Market Growth Drivers 20Maximizing return on advertising investment requires understanding Chinas highly fragmented media markets.

Alex Abplanalp

Reaching Chinas Digital Consumers 24To maintain and expand market share, companies must target three different digital generations.Michael Meyer, David C. Michael, and Christoph Nettesheim

Blogs, Bulletin Boards, and Business 28Chinas online social media offers business opportunities for the well-prepared and perils for the unwary.Kaiser Kuo

China Data: Chinas Ad Spending Forecast Not So Grim 32

chinabusinessreview.com JanuaryFebruary 2009 3

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China BusinessReview

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4 JanuaryFebruary 2009chinabusinessreview.com

The China Business Reviewwelcomes articles from outside contributors. Manuscriptssubmitted for consideration should be sent to the editor at [email protected]. TheUS-China Business Council obtains licenses for all rights to articles and artwork publishedin the CBR. Articles or artwork published in the CBR may be reprinted or reproducedonly with the written permission of the US-China Business Council. Articles in the CBRdo not reflect US-China Business Council policy, unless indicated.

The China Business Review(ISSN 0163-7169) is published bimonthly by the US-ChinaBusiness Council, 1818 N Street NW, Suite 200, Washington DC 20036-2470, USA(Tel: 202-429-0340), a nonprofit organization incorporated under the laws of the District

of Columbia. Periodicals postage paid at Washington, DC, and additional mailing offices.Postmaster, please send address changes to the China Business Review, 1818 N Street NW,Suite 200, Washington DC 20036-2470, USA.(c)The US-China Business Council, 2009.All rights reserved.

Annual Subscription Rates: $135 US/Canada and $177 international, print only; $156US/Canada and $208 international, print and online; $105 online only. Single copy is-sues: $22, $35 airmail; issues over 1 yr: $15, $20 airmail. DC residents add 5.75% salestax. Subscriptions to the China Business Revieware not deductible as charitable contribu-tions for Federal income tax purposes.

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Guangdong

Shandong

Jiangsu

Tianjin

Liaoning

Guangxi

Gansu

Hubei

Hunan

Hebei

Henan

Heilongjiang

Fujian

Qinghai

Lhasa

Tibet

Jilin

Zhejiang

Anhui

Taiwan

Hainan

Beijing

Shanghai

Y

Xinjiang

Jiangxi

Yunnan

Sichuan

Shaanxi

InnerMongolia

Guizhou

Ningxia

Shanxi

Chongqing

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55Cover design by Jesse Marth

30th Anniversary of US-China RelationsA Message from Clark T. Randt, Jr., US Ambassador to China 16

A Message from Zhou Wenzhong,

PRC Ambassador to the United States 18

FeatureM A R K E T I N GUnderstanding Chinas Middle Class 38Marketers should recognize the diversity among Chinas middleclass consumers and target key segments with appropriate strategies.Allison Cui and Kheehong Song

DepartmentsLetter from the Editor 6

Short Takes 8China Conference Calendar 10

China Market Intelligence 12National Peoples Congress and State Council Transparency Commitments

USCBC Bulletin 14

Commentary 34Unionization Drive Leaves Room for CompromiseAndreas Lauffs and Jonathan Isaacs

Critical Eye on Chongqing 42Pillar of the WestDavid Lammie

Company Profile 46Pacific Trade International, Inc.Virginia A. Hulme

China Business 50

Last Page 55

A New US Embassyand a Chance to Look Back and to the FutureLydia R. Goldfine

The exchange rate used throughout this issue is the Peoples Bank of China rate fromNovember 14, 2008: 6.8289 = $1.

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BALTIMORE410-631-7567

ATLANTA770-953-0037


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January 2009 will not only mark the 30th anniversaryof US-China relations (see p.16), it will also mark the35th anniversary of the China Business Review(CBR).

In January 1974, the National Council for US-ChinaTrade (now the US-China Business Council [USCBC])began publishing the US-China Business Review(nowthe CBR). In the inaugural issue, National CouncilPresident Christopher Phillips stated that themagazines aim was to provide the executive involvedin planning China trade strategy with an indispensable

resource. Of course, in those days, there was almost no foreign investment inChina, and trade was conducted largely through the biannual Canton Fair.

Accordingly, the first issue of the CBRfeatured articles on the basics ofdoing trade with China, such as how to start importing from China, anintroduction to the Canton Fair, and a list of third-country banks in theUnited States through which companies could conduct trade with China.The issue also included an article on the services available at the NationalCouncils representative office at the fair. (The use of four IBM electrictypewriters and a 3M desktop photocopying machine seems to have been ahighly prized member benefit.) The same issue covered the National

Councils first delegation to Beijing, an event we revisited in theNovemberDecember 2008 anniversary issue.An article on Chinas economic and trade policies offered a few predictions

for the future, many of which have come to pass. For instance, noting thatChinas decision to borrow from abroad would force it to boost exportssignificantly to repay such loans, the article foresaw that A large scale shift ofresources into the export sector in China would lead to a further polarizationin development between the industrial centers in the east and northeast andthe rest of the country....Thus, the decision to raise imports throughacceptance of foreign credits may produce wide ranging and variedrepercussions throughout Chinas economy and beyond into other sectors ofthe national life. Thirty-five years later, China is struggling to close theenormous chasm that has opened between developed coastal areas and the

less-developed hinterland.Not all forecasts were so clairvoyant, however. The focus section on oil

written at the height of the last major energy crisis and the Cold Warseemed to hope that China could become a major oil exporter, allowing theWest to avoid reliance on the Middle East and the USSR for energy supplies.In 1974, it would have been nearly impossible to forecast Chinasextraordinary development and subsequent massive surge in energy demand.Chinas oil production nearly tripled from 64.9 million metric tons in 1974to 186.7 million in 2007, but oil consumption skyrocketed from 61.9 millionto 368.0 million metric tons over the same period, according to BPsStatistical Review of World Energy 2008. Far from being an energy exporter,China has become one of the worlds major energy consumers. Like theUnited States, it must now search for supplies abroad.

The CBRhas also changed over the years. Editors, staff, and departments havecome and gone; technological improvements have made color printing affordable;and the rise of the Internet has allowed us to communicate with our readers innew ways. Nevertheless, we remain committed to delivering quality informationand analysis to our readers. We thank our readers and hope to hear from you. Wewelcome comments, suggestions, and criticisms at [email protected].

Virginia Hulme

6 JanuaryFebruary 2009chinabusinessreview.com

Editor Virginia A. HulmeAssociate Editor Paula M. MillerAssistant Editors Arie Eernisse, Daniel StrouhalBusiness Manager Jesse MarthAdministrative Assistant Mattie StewardArt Direction & Production Jon Howard/JHDesign, Inc.Research Assistant Nicholas Chu

Inquiries and Subscriptions: [email protected]:www.chinabusinessreview.comReprints: For bulk custom reprints (min. 100),call 1-800-960-1195Online store:www.uschina.org/store

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China BusinessReview

The

Letter from the Editor


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Table of Contents: Jan-Feb 2009 China Business Review

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