The official blurb:

Simmering tensions between Qihoo 360 and Tencent broke into open war last week, as Tencent disabled its chat software on computers running 360 antivirus software. This move was the most aggressive yet in a serious of escalating attacks between the two companies that resembles nothing so much as a barnyard brawl. Microsoft appears to be the only winner of the fighting to date, with MSN messenger aquiring a number of users fed up with the behavior of both companies.

Just measured in terms of size, Qihoo 360 is the underdog here, the Chinese equivalent of Norton Antivirus with a userbase of only around 300 million machines throughout China. Tencent is one of the largest Internet companies in the world, and probably the cloest thing China has to Google. Want more information? Join Sinica regulars Jeremy Goldkorn, Gady Epstein, and Will Moss as they examine the fracas from the comfort of our studio. Kaiser Kuo also joins us with an audio postcard that fills in the back story of conflict that you won’t read in the news. And finally, we are also joined this week byMalcolm Moore, correspondent for Britain’s Daily Telegraph, who shares his thoughts on the significance of David Cameron’s ongoing visit to Beijing.

As always, get the podcast from our good friends at Popup Chinese (where there are also some links to background reading on these topics), from iTunes, or just download the MP3 right here.

I should be back in the studio tomorrow. Kaiser’s back and we have a good set guests and topics shaping up.

A deadly hit-and-run at Hebei University by the unapologetic son of a high-ranking official has sparked outrage across China, with early efforts to cover up the incident ultimately leading to father and son both making tearful apologies on national television. in other news, China stands accused of clamping down on the export of sensitive rare metals, while a new Chinese prize makes a surprise international debut. This week on Sinica, we discuss these developments and more from our studios in the heart of downtown Beijing.

With Kaiser Kuo still out of the country on his international speaking tour, Sinica cohostJeremy Goldkorn takes the reins today. Joining him in the studio are Sinica regularsGady Epstein, Beijing Bureau Chief of Forbes magazine; Will Moss, popular blogger at Imagethief and expert on public relations in China; and David Moser, an old China-hand and now academic director for the CET program in Beijing.

Bonus: We also offered in Kaiser’s absence to sell the entire podcast to World Harmony Foundation founder Frank Liu for cheap. Find the podcast at Popup Chinese, on iTunes (search “Sinica”) or download the MP3 right here. Thanks as always to Dave Lancashire for facilities and engineering.

Some background reading for people interested in these topics:

On the Li Gang scandal:
http://www.danwei.org/video/ai_weiwei_produces_video_inter.php
http://www.chinahush.com/2010/10/21/sue-me-if-you-dare-my-dad-is-li-gang/
http://www.danwei.org/blogs/on_speeding_and_indifference_t.php

On rare earths:
http://blogs.forbes.com/gadyepstein/2010/10/29/names-you-need-to-know-in-2011-baotou-rare-earths-capital-of-the-world/

On the Seeking Truth article on the role of the media in downfall of the Soviet Union:
http://www.qstheory.cn/zxdk/2010/201021/201010/t20101030_54269.htm (Chinese)
http://cmp.hku.hk/2010/11/02/8448/ (English)

On the Shanzhai Peace Prize for General Chi:
http://www.danwei.org/state_media/chinese_general_gets_shanzhai.php

A most harmonious general.

This week on Sinica, we find out what happens when the media attacks, and China is caught in the crossfire. Specifically, recent weeks have brought us two prominent cases of bad press for China as the country gets caught in loaded battles fought by unrelated parties. In the first, an American political advertisement raises the spectre of an US economic collapse. The second is more homegrown, as two giants in the dairy industry are caught spreading lies to promote short-term sales.

With Kaiser Kuo out of the country on a speaking tour, the chairing role in Sinica today is filled by Gady Epstein, Beijing Bureau Chief for Forbes magazines. Joining him with his always candid insights into Chinese media is Jeremy Goldkorn of Danwei fame. Also joining us in the studio are Chinese public relations expert and Imagethief blogger Will Moss, and Beijing correspondent for the Guardian, Tania Branigan.

Since Tania doesn’t have a website I’ll throw in her twitter handle instead: @taniabranigan (surprisingly enough). Find the podcast on iTunes, or on Popup Chinese, or download the MP3 directly. As always, I’ll be interested to hear what you think.

Huang Guangyu, the richest man in China, went on trial last week in Beijing. The founder of home electronics chain Gome was brought up on charges of bribery, money laundering, and insider trading. The dragnet in the investigation leading up to the trial has already widened, and has implicated a number of high-ranking cadres in the Ministry of Public Security’s white-collar crimes division. In this edition of Sinica, we discuss the perils of wealth, and what Huang’s trial means for rule of law in China. We also examine China’s dilemma over soaring property prices, and Beijing’s sharp new policies to curb speculation. Do they portend the collapse of the real estate bubble?

The usual lively discussion ensued. Find it through the Sinica link above, or on iTunes.

NewsMorphosis panel on the Transformation of the News from Jay Fidell on Vimeo.

The week before last Imagethief was in Hawaii to participate in the NewsMorphosis panel organized by ThinkTech Hawaii and several other organizations. The last week or so since I got back have been a bit hectic, so I haven’t had a chance to write anything about the conference, or the activities around it.

The whole conference was streamed live, and the video is still available. I’ve posted the two videos below the jump, below . There is about four hours worth, so, while it was a great conference, unless you’re truly dedicated you may want to pick and choose a bit. I’ve included a bit of a rundown, below, but the easiest thing to do is to look at the program, here (pdf) and bear in mind that the opening remarks by Avi Soifer, dean of the University of Hawaii’s law school, is about half an hour, each of the three panels is an hour, and the closing speech on the Peer News program, by John Temple, is a half hour or so. (John Temple’s remarks also on Vimeo here, and Avi Soifer’s remarks here.)

I appear in the first panel along with Honolulu Advertiser editor Mark Platte and Hawaii News Now news director Chris Archer. The three of us about how new technology is affecting the business of news. It’s definitely an interesting discussion, and very relevant. Hawaii News Now, which is the television news gathering service shared by two of Hawaii’s major TV stations, just finished a massive consolidation and technology revamp to enable them to serve multiple stations. The Honolulu Advertiser, long Hawaii’s newspaper or record, was recently sold by Gannett to its smaller, local rival, and will be closed soon unless something dramatic happens. So my fellow panelists are both dealing first-hand with the remaking of the American news industry. As the sole participant from overseas, my job was to bring a little foreign perspective.  I also appear in the brief wrap up with TechCrunch journalist Sarah Lacey (our star power for the day) and Michael Freedman.

While I was there I had a chance to visit both the Hawaii News Now and Honolulu Advertiser offices, along with Michael Freedman, a fellow speaker, longtime CBS newsman, and now executive director of George Washington University’s Global Media Center. It was a visceral lesson in the state of news in America. The television operation has gone through a lot of consolidation, but it at least had a sense of vitality about it. They’ve recently revamped all of their technology and workflow to server several broadcasters. Having spent a couple of years in the newsroom of San Francisco’s CBS affiliate, KPIX, I got a little tingle of nostalgia. The Advertiser, however, is at death’s door. Their newsroom has been shrinking for some time, the building looks like it hasn’t had a dime of maintenance in living memory, and they were recently sold by the Gannett group to their smaller local rival, the Star-Bulletin. They’re all on death-watch now, and the newsroom is a mix of gallows humor and grim resignation to fate. The spot in the newsroom where the sale was announced by the publisher has been roped off with crime-scene tape, and there is a little masking tape body-outline in the shape of a newspaper on the floor. It was an interesting experience.

More below.

Unfortunately, the Ustream video player is a bit primitive, so finding the right spots can mean a bit of fishing, but it can be done. My panel starts at 31 minutes into the first video, with my opening remarks at 45 minutes and closing remarks at 1:28.

I also appear in the closing panel, at 1:03 in the second video, with my remarks at 1:04:30.

Enjoy. If you have the persistence to dig it out. If they post the individual panels, I’ll update.

Part 1:

Part 2:

[In] large part, politicians, activists and commentators push the new Red Scare to advance particular agendas in Washington. If you want to promote clean energy and get the government to invest in this sector, what better way to frame the issue than as a contest against the Chinese and call it the “new Sputnik”? Want to resuscitate the F-22 fighter jet? No better country than China to invoke as the menace of the future.

They then inject a little useful perspective into the discussion:

In other areas, politicians and pundits also have a tendency to overestimate China’s strengths — in ways that leave China looking more ominous than it really is. Recent reports about how China is threatening to take the lead in scientific research seem to ignore the serious problems it is facing with plagiarism and faked results. Projections of China’s economic growth seem to shortchange the country’s looming demographic crisis: It is going to be the first nation in the world to grow old before it gets rich. By the middle of this century the percentage of its population above age 60 will be higher than in the United States, and more than 100 million Chinese will be older than 80. China also faces serious water shortages that could hurt enterprises from wheat farms to power plants to microchip manufacturers.

And about all those engineers? In 2006, the New York Times reported that China graduates 600,000 a year compared with 70,000 in the United States. The Times report was quoted on the House floor. Just one problem: China’s statisticians count car mechanics and refrigerator repairmen as “engineers.”

That a communications agenda is behind much of the current American anxiety will come as no surprise to many Imagethief readers, but it’s good to see it being addressed in a level-headed fashion. The article doesn’t trivialize the importance or the impact of the rise of China, and neither would I. But it’s good to cut through some of the hyperbole. Read the whole thing and see what you think.

Previously:

Book review: Chinese Lessons, by John Pomfret (August, 2006 – on the old Imagethief).

A few days ago, on the construction site across the main boulevard from where I live, a set of huge characters went up, exhorting the workers to “close the gap, finish the building”. OK, twenty-foot characters seemed a bit excessive, but exhortations hung on the side of construction sites are pretty common in this town.

Then it turned out that the characters lit up at night. Great. Two rows of twenty foot, illuminated characters pointed more or less straight at our bedroom and living room windows.

And then they hung an enormous screen in a conspicuous gap in the characters, and this is the result:

Yes, that’s right, I have watch this sign count down for the next three and a half months. At least. Because four years of Olympic countdown times and a smattering of Shanghai expo counters just weren’t enough. (Only one row of characters is visible in this photo, taken from a balcony at the eastern extremity of our apartment, but trust me, there are two.)

The photo really doesn’t do justice to the scale of this thing. These characters are colossal, each well over a tall building storey in height. Maybe it’s just me, but couldn’t they have simply used the money to offer the workers a bonus for finishing quickly, and spared every resident of Soho New Town, Blue Castle, China Central Place, and the old local neighborhood on the northwest corner of Dawang Qiao the tyranny of watching this thing ratchet down by days for a third of the year?

Perhaps this isn’t quite intrusive enough. I actually think they should have installed personal countdown clocks in the living rooms of all our apartments, and perhaps forced our TVs to display it as well any time the sets weren’t tuned to CCTV’s “Network News”. Perhaps a refrigerator magnet, too.

This building has actually had a troubled construction. It was going strong until the beginning of 2009. Then construction wrapped up shortly before Chinese New Year, for the holiday we originally thought. But it never started again. I can only presume the backers became victims of the financial crisis. But like that building that lay fallow on Gongti, near Dongdaqiao Rd. Sanlitun Rd., for something like three years before finally being completed, it appears to have found fresh backing in the midst of Beijing’s insane property bubble, and is now racing toward completion. One presumes the developers want to get the units offloaded before people come to their senses and realize that there is an upper limit on the investment value of a bunch of apartments nobody is living in.

At any rate, I’d like to thank them all for blotting out a big chunk of what little sky is visible from our apartment and replacing that sky with an enormous, crimson death-clock.

Also, what is up with the new CCTV tower? That thing still isn’t open. Are they waiting for something to happen with the burned-out hulk of the Mandarin Oriental? That’s a big pile of real estate to be sitting idle. But, then, when you’re an opaque, quasi-governmental entity, maybe that just doesn’t matter.

So let me tackle that by talking about one of the most striking differences between public relations in China, and public relations anywhere else. We pay journalists to come to press conferences.

I can now hear the collective, outraged gasp from my peers around the world. But, as adventurers throughout history have discovered, it is asking for a short trip to the dog-headed guillotine to judge China by your imperialist standards. Unless you have gunboats.

I have no gunboats, so I try to stay open-minded.

When we do a press conference in Beijing, we give every journalist who shows up a 200 yuan “transportation reimbursement”. I use quotation marks because you have to labor mightily to roll up even a 50 yuan taxi fare in Beijing, and the average ride probably sets you back 20. Clearly, it ain’t all going to transportation.

Before you let your imagination run wild, we do not keep a bucket full of cash behind the media reception desk. It’s all very discreet, with the money distributed in plain, white envelopes along with the press release and the naff corporate gift du jour. This is completely standard practice across China, so save your indignation.

200 yuan, or roughly $40 Singapore/$25 US, is a lot of money in Beijing. I can get through a weekend on 200 yuan if I am not crawling the decadent, five-star hotel bars like Centro or Red Moon.

But exchange rates don’t tell the real story. Having learned a lesson from that most scholarly of news magazines, The Economist, I believe international monetary comparisons are best expressed in terms of purchasing power parity (PPP), rather than straight exchange rates. So, for the benefit of my friends in Singapore (Americans, bear with me), I will make a PPP comparison using the commodity that flacks and hacks best understand: beer.

In Beijing, rock bottom for a beer out on the town (say, a pint of Yanjing at the Electric Cactus Garden in Wudaokou) is about 3 yuan. In Singapore, rock bottom for a beer out on the town (a tall Tiger at the Maxwell Road hawker center) is about $5 Sing, or 25 yuan, more or less.

So the 200 yuan we pay a journalist, after we deduct a legitimate 50 yuan for round-trip taxis, will buy about 50 beers. (150 yuan remaining divided by 3 yuan a pint. Are you following me? If not, you need to come over to my house for poker night.)

OK, Singaporean journalists, hold onto your hat. To achieve similar benefits from attending a press conference in Singapore, you’d have to receive an ang pao containing, wait for it, $270 Sing. That’s two $10 cab fares (ignoring the fact that you will claim them), and $250 to pay for your 50 tall Tigers at $5 a snort. (Other countries, insert your own math. Bloomberg exchange rate calculator here, and I know you don’t need me to tell you the price of a cheap beer.)

So, journalists, next time my peers from whatever PR firm in Singapore phone you up and ask if you will be attending their client’s unveiling of the latest in electronic toilet brushes, or whatever, I suggest you demand just compensation. If it’s good enough for the Chinese press corps, by god, it’s good enough for you.

Note: Some economically literate readers may wish to point out that PPP should be calculated using a basket of commodities rather than just one. In defense of my analysis, a beer represents a basket of agricultural and industrial commodities: hops, malt, water, packaging, the energy required for manufacturing and distribution, etc. If you still want to take issue with my analysis, get a girlfriend or a hobby for god’s sake.