Tag: Public Relations

  • Are PR and MNCs corrupting Chinese media?

    The week before last I had lunch with a foreign correspondent who asked me if there was corruption in PR in China. Although I was only providing background, and not speaking to him on the record, I was, to put it politely, diplomatic in my answer. Ever mindful of the brand that graces my business-card, it’s an issue that I tend to tread lightly upon. I did, however, send him on to a friend who has been here longer than me and who works independently and is, therefore, inclined to be more forthcoming about such things.

    But the topic arose again last week, courtesy of bloggers Bingfeng, of Bingfeng Teahouse, and Myrick, of Asiapundit. Bingfeng fired the first shot in a post telling foreigners who complain about China’s media restrictions to find something better to do with their time. The crux of his argument was the blocking of any individual site affects only a few thousand people. However, a pervasive culture of media corruption fostered by “foreign MNCs” (multinational corporations) affects everyone in China:

    As we all know, the blocking of these web sites, in its worst situation, influence the life of a few thousands in china, while at the same time, the corrupt journalists/media taking money from firms and various organizations and writing misleading articles to fool the public is a everyday story in china, as i know, the norm of taking money from firms to make favorable media exposures was cultivated by many MNCs in china, which bribe chinese journalists in the name of “media PR” or “marketing PR” activities, and bribe them when they have a “PR crisis”. such collusion affects the lives of millions of people and you could do something to change it, especially a lot of them are related with MNCs in china.

    There is some truth in what Bingfeng wrote. On this site I have previously written, tongue somewhat in cheek, of the “transportation claim” commonly paid to journalists who attend press events in China. According to the journalist I had lunch with, foreign technology companies originated this practice about ten years ago. I don’t know the detailed history. Anyone who does is invited to comment.

    So I agree with Bingfeng to some extent. However, before he makes me his “star of the week” again, he needs to read on, because I’m going to bite later.

    Myrick posted a rather interesting response to Bingfeng. First, he pointed out that he, a foreign correspondent by day, was recently offered 500 RMB (about US$60) himself while attending an event sponsored by a nameless European telecommunications firm. He mentioned that, although he refused the money, three Chinese journalists who were present accepted. I suspect that this was vanilla “transportation claim” (车马费) as 500 RMB is the amount typically offered to journalists who attend an event from out of town, while 200 RMB is the going rate for journalists from in town. If Myrick was attending an event in the town he is based in, then there is some inflation happening.

    I would like to point out that whoever offered Myrick the money, even if it was simply transportation claim, was an idiot or badly trained. Foreign correspondents work differently than Chinese ones on many levels. Any PR firm, local or foreign, that doesn’t train their staff on these differences is courting trouble. In my company we often dissuade clients from mixing local and foreign journalists not only because it makes things like the transportation claim awkward, but because we often have different messages for domestic and overseas audiences.

    In a rebuttal to Bingfeng that I agreed with, Myrick wrote the following:

    Bingfeng is correct that this is a serious problem for China – a 2003 study by the Institute for Public Relations [proxy link – WM] puts China dead last in a list of 66 countries in a study on the acceptability of bribery for coverage.

    Still, by citing the existence of this problem as a criticism of free-speech advocates he is making a common fallacy of argument by evading the issue.

    This is also known as the Chewbacca defense.

    That last link is from the blocked-in-China Wikipedia. I regret that readers here won’t be able to access it without a proxy.

    The problems of censorship in and press bribery in China are related issues, both shape the content of news here. But to say that censorship of a website is something that only affects a “few thousand” is a gross understatement. While it may be only a handful of residents who are affected by a block on a single blogspot site, the control of information in China promotes ignorance, retards democratic development and prevents the building of an educated civil society. This affects 1.3 billion.

    The report that Myrick points to is well worth looking at. The reason why I agree with Myrick’s response, besides correctly calling out the “Chewbacca defense”, is that it points out that there is a relationship between corruption of the media and censorship. I think that relationship is quite deep, and has to do with how the media have evolved here and what Chinese societal expectations of the media are. I also think that relationship should be looked at in terms of corruption in general.

    Not to be dissuaded, Bingfeng came back with the following:

    [The] so-called “bribery for coverage” is more than just giving money to get favorable media exposures, thanks to the cultivatons of MNCs in china, the collusion between media and business has evolved into more sophisticated forms that influence/manipulate the public and they are unfortuantely followed by more and more organizations and individuals. khodorkovski-style chinese firms are on the horizons and their agents are already very active. this imposes an immediate threat to the emerging “civil society” in china, not the censorship.

    “free speech/press fighters” could do something to change the media corruptions, but in the short term i don’t see their chant could do anything to reduce the media censorships. MNCs are the one who set the norms of media bribery, government “PR”, media “PR”, marketing “PR”, etc. and our “free speech/press fighters” could do something to ask them to change the norms or even follow a more strict business ethics. this is a more approachable goal.

    like many things in china, the dysfunctional part of the system is not removed directly through a confrontational approach, but through the cultivations of incremental parts of the system. a less corrupt media will forster an environment that leads to less censorship.

    the only disadvantage of a different roadmap is that hte process will be less satisfying for the moral superiority of some westerners and perhaps doesn’t fit into the political agendas of some of them.

    Here again, Bingfeng is half right. There is “collusion between media and business [that] has evolved into more sophisticated forms that influence/manipulate the public.” We call that public relations, and it’s what I do for a living. But no matter how distasteful you might find it, it is not necessarily corrupt, and seems not to have undermined civil society in most of the rest of the world.

    The origins of the transportation claim notwithstanding, blaming MNCs and PR companies for corruption in the Chinese media is absurd. Complicit though they may sometimes be, it’s like blaming vultures for the death of your horse in the desert. This argument is the reframing of a victimization theme I often see wielded against foreigners and multinationals when discussing problems in China. It plays well on nationalist sentiments and often does a really good job of deflecting attention away from serious, underlying issues worthy of scrutiny. The Chewbacca defense, as Myrick pointed out.

    Furthermore, to suggest that a cleaner media will lead to fewer restrictions on free speech is, quite simply, to put the cart before the horse. I believe the exact opposite is true. Free speech and a less fettered press are much more likely to be effective weapons against corruption.

    Who Are You Calling Corrupt?
    Chinese companies and institutions, as anyone who lives here rapidly learns, are quite capable of corruption without any foreign influence whatsoever. Corruption, in the media or anywhere else, isn’t something that springs up spontaneously, or as the result of the wicked influence of foreign MNCs, who are perennial favorite targets of Chinese nationalism. Corruption is like a gas. It’s always there and it expands to fill the shape and volume of the space available for it.

    The volume of space available for corruption is created by lack of transparency and by well established patterns of government and commercial behavior. While many countries, including the United States, have corruption, China leaves a comparatively wide-open space for it. For some details, sift through Transparency International’s website, which ranks China at number 78, alongside such illustrious company as Morocco, Sri Lanka, Senegal and Suriname. Or this more recent article (subscription) by Andrew Yeh, one of the Financial Times’ Beijing-based journalists, on the OECD’s assessment on the impact of widespread corruption in China.

    However, this isn’t to say that some MNCs won’t collude with corruption. MNCs tend to be amoral beasts that adapt themselves superbly to any environment in which they need to operate. Many governments are aware of this, which explains laws like the United States’ Foreign Corrupt Practices Act. Companies like mine often help to clean up the mess when MNCs get caught misbehaving. Bingfeng may be shocked to learn how often those cleanup efforts involve absolutely no bribes.

    For the record, in my time in the PR industry in China, I have never witnessed anything I felt to be corrupt. I have never seen anyone in my company do anything I felt was corrupt. Nor, in the course of their work with me, have any of my clients, all MNCs, done anything I felt was corrupt or even borderline. One of my clients’ policies on separating advertising and paid coverage from PR is so strict that we don’t even help with advertorial copy, something I did all the time in Singapore.

    If I was asked to do something I felt was wrong, I would decline to do it and warn whoever was asking me of the consequences. If necessary, I would resign before compromising myself, my colleagues or my company. I don’t think this is likely to happen, so it doesn’t keep me up nights. Our (Chinese) finance director is one of the most scrupulous and careful men I have ever met. He is constantly reminding us of our financial disclosure and probity obligations as part of a listed, international media conglomerate. Furthermore, despite the occasional ghastly scandal, there is no company as aware of the value of its reputation as a global PR company.

    None of this, however, means that Bingfeng is wrong about there being corruption in the media or in PR in China. Within our office, it’s the local, Chinese PR firms that take the most flack for corruption. Chinese consultants in my office have spoken to me many times of what they perceive as the distinctly lower ethical standards of local firms. This may simply be their pride talking, or just empty gossip. Although given how close many of our Chinese consultants are to Chinese journalists, they’d be in a position to hear about anything that happens.

    Now, allow me to pose a hypothetical scenario. If you’re MNC X, and you want to buy some coverage savaging your bitter competitor, MNC Y, in the China market, which of the two following PR firms would you use to arrange it?

    1. The SOX compliant multinational PR firm with public company accounting requirements and an international reputation to protect or,
    2. The privately held, locally owned firm with no international reputation or financial disclosure obligations.

    Simple risk management suggests the latter would be a better choice. Now perhaps, was this to actually happen, it would be a case of a wicked MNC leading an otherwise chaste Chinese PR company down the dark path of corruption. More likely, it would be willing buyer/willing seller. Furthermore, I’d be shocked Smurf blue to hear that Chinese companies, forever battling their own corruption demons, would turn up their noses at these methods. I don’t think they’d need to learn the trick from foreign MNCs.

    In case you are wondering, although I think it’s a bad idea, I don’t feel that the transportation claim is corrupt. Media corruption thrives in the dark, when its influence is hidden. The transportation claim is completely matter-of-fact and auditable. You can follow the trail, from our cost estimate for events to our invoices to clients to the list of exactly which journalists showed up at a press event, and their sign-in signatures. It’s never guaranteed us good coverage, or even attendance at events. Frankly, I think it’s a desperate waste of money, and it will be a good day for the maturity of Chinese media when it is abolished. But that will only happen when the Chinese media decide for themselves to abolish it, or when all companies with PR efforts in China, both local and foreign, decide to abolish it together. It would take a company with a large risk appetite indeed to unilaterally decide no longer offer the transportation claim, especially while their competitors still did.

    Is my position hypocrisy? Or rationalization? Maybe.

    What is this Media of which You Speak?
    I have been working in China for just over a year, and I, as an individual, am not an expert on the Chinese media. But I have been involved in media-related work, one way or another, for thirteen years, my graduate degree is in media studies, and I work in an industry whose stock in trade is an understanding of media. With that disclosure, you may take the following observations as you will.

    The problem with Chinese media is not that it is being corrupted by ne’er-do-well foreign MNCs or PR firms. Rather, it is that the Chinese media are in transition from explicit state control to something subtler and more reflective of modern Chinese society. It has become something that isn’t developed country media, but which looks like it from a distance. Bound up in this transition are the ongoing changes in China’s media regulations as the government tries to figure out what it wants Chinese media to be, and shifting public expectations of what role the media should play in Chinese society. The tremors of this transition have been documented in Chinese media, overseas media and, not least, by the China blogging community. An interesting recent example includes ESWN’s post on fraudsters representing themselves as journalists.

    If all this seems like a recipe for confusion…it is. This shows in, yes, the opportunities for corruption and, more mundanely, in how the media relate to authority, to multinationals and, of course, to PR firms.

    There is a relationship aspect to PR work everywhere. It’s formalized. We call it, surprisingly enough, “media relations”. An ability to build good relationships with journalists is one of our marketable skills. Here in China, our relationships with journalists are especially cozy. Not corrupt, mind you, just cozy.

    This coziness isn’t unique to China any more than media corruption or the influence of corporate or state parent organizations. Anyone who thinks that the US, for example, is immune to this hasn’t been following the salacious Plamegate affair. This has done wonders to illuminate the shameful coziness that greases the operations of both the Washington DC press corps and the spin-obsessed White House. But in China this coziness is more pervasive.

    Although I never did PR in the US, I did do it in Singapore, which also has state-controlled media often accused of pliancy. Even in Singapore, no matter how good my personal relationships with journalists were (and they were pretty good), there was often an adversarial quality to the professional relationship. That wasn’t necessarily expressed in hostility or bad press, but in healthy skepticism, tough questions, and wariness of spin. All qualities of a decent press corps.

    Here in China I find, on average, that it is much easier for us to control a line of questioning or set it in advance, review coverage and quotes before they go to press, suggest themes and anticipate the tone of stories. Journalists here often expect us to package stories quite completely for them, giving us yet more room to set the agenda. We have stenographers at most media events, and send complete transcripts of press conferences and round tables to the journalists who attend them, often on the same day. It is expected that we will do this. When we can package a story more completely, we can dictate its tone more effectively. Among my Chinese team members, the nickname for pliant journalists is “rabbits”. Not the image of ferocity.

    Now, I want to stress two important things. First, relationships are not a red carpet. We flacks in China are not excused from having to come up with good pitches and interesting events. And we’re not immune to bad press, by any stretch of the imagination. We also have real PR challenges that are unique to doing business in China. It’s just that the relationships are more central to how we work. In the land of guanxi, this is not so surprising.

    Second, and most important, my observations above are industry generalizations. I know many extremely bright and motivated Chinese journalists who take real pride in their work. They are capable of asking dynamite questions, picking up killer angles, and writing hard-hitting and intelligent stories. Chinese journalists have suffered and died for their commitment to their work, and for their integrity and many are worthy of the highest respect. (Contrary to what you might think, most PR people are news junkies and really appreciate dynamite journalism, as long as it isn’t causing trouble for our own clients.) Even many of the “rabbits” are good, smart people working in an established system. Please do not interpret my observations as a condemnation of Chinese journalists.

    Some Chinese media pliancy may simply be a result of a wildly booming industry that is hungry for content. The seller of a product that is in high demand, such as particular content, exerts more control. That’s why Hollywood publicists can dictate question lists for stars, whereas corporate flacks like me seldom can. But I think some of it also descends from the Chinese media’s recent legacy of control and management from above. Chinese media are still evolving their editorial standards and modes of operation. PR firms, multinationals and Chinese firms will all figure out how best to operate and achieve their goals in this environment. That might be cynical, and you don’t have to like it, but it isn’t corrupt. Ruthlessly separating my preferences as a media consumer from my objectives as a PR pro, I am under no obligation to tell a journalist to ask tougher questions of my client.

    Mouthpieces or Watchdogs?
    What does China want from its media? Let me return to the idea that started it all off: the relationship between free speech and corruption. The media can be a potent weapon in fighting corruption, given the space to do so. A few years ago, Jiang Zemin appeared to recognize this when he cited media as one of the country’s great tools in its perennial war against corruption. Of course the media themselves were fighting their own corruption demons in ways that went far beyond low-rent payola for good coverage, as 2004 busts of senior editorial staff from the well known Southern Metropolis News and Nanfang Daily Group showed.

    But beyond media’s own corruption problems, counting on them to help unmask corruption demands independence and a culture of enterprise that needs room to grow. The current government seems to have different ideas, as this recent article from The Economist (subscription) reports:

    The Chinese government’s increasingly hardline stance is encapsulated in Document 16, promulgated this spring. Among other things, this banned the practice of yidi baodao, or “reports from non-local places”, with journalists travelling to distant cities where, free of their local minders, they could write harder-hitting stories about corrupt local officials or social unrest. “This was the best hope for China developing an open press,” says Mr [Nicolas] Becquelin [of human-rights group HRIC]. In Hong Kong, papers critical of China, like Apple Daily, are complaining that advertisers are fleeing because of threats to their mainland businesses. Journalists there are suddenly finding it harder to get visas for travel to the mainland.

    These regulations were also covered nicely by the invaluable Chinese media blog, Danwei.

    Even more worrying, some suggest that anti-corruption drives in China are simply tools to clean out the lingering remnants of the previous power structure and, bizarrely, to implement monetary policy, as suggested by this Asia Times Online article. So, even in their role as corruption fighters, the Chinese media face the specter of being cynically deployed tools of state policy.

    Media can, of course, be effective weapons against corruption, whether that’s corruption in government, business or within their own industry. Even if, for no other reason than fulfilling their own business objectives by attracting eyeballs, most publications love nothing more than to break a big scandal wide open.

    But that will never happen here unless the government can decide what role the media should fill in society: mouthpieces or watchdogs. They can’t be both. You can’t state-manage a media industry to effectiveness as anti-corruption crusaders, and keep it muzzled at the same time. You have to do the opposite. Give them space, in the form of freedom of the press, which is just another way of saying freedom of speech. That will help to lift the veil on corruption everywhere including, yes, in the media itself.

    So when we arrogant foreigners rail against the restrictions on the Chinese media, we aren’t ignoring the problem of corruption in the media, or anywhere else. In fact, we are advocating for the unleashing of China’s most potent weapon against corruption.

    A truly free media.

  • The strange lunacy of translators in airliner cockpits

    Singapore is now completely infatuated with China, and the average Straits Times has about seventy-six pages of news from China. I am really good friends with two of the ST correspondents in Beijing, so I will mention that much of this coverage is of the highest standard. Now that I am done sucking up to journalists for the day, I was interested to see an article in today’s (unlinkable) ST on China’s shortage of pilots.

    Anyone who has flown domestically in China will have experienced the fallout (no pun intended) from this problem, as it’s quite clear from the vertical takeoffs and spleen-rupturing landings that many of China’s pilots are actually professional longshoremen or swineherds who are simply moonlighting as pilots for extra cash, or to make time with stewardesses.

    Like many nations with shortages of pilots, and in order to minimize the number of swineherds in the cockpit, China has looked overseas for qualified personnel. The article notes:

    There are now more than 50 foreign pilots from the United States, Canada, Switzerland and Hungary flying for Chinese airlines today. But they do not speak Mandarin, which makes it difficult for them to communicate with air traffic control.

    …and with their co-pilots and with traffic control and with their passengers, it scarcely needs be added. Perhaps I’m old fashioned, but in this era of congested airports and skylanes, and considering Beijing’s shroud of visibility-reducing pollution and southeast China’s constant supply of typhoons, the ability to communicate smoothly with air traffic controllers would seem to be…well, “friggin’ mandatory” is the phrase that springs to my mind.

    But fear not. The rocket scientists at the CAAC, China’s civil aviation authority, are on the job:

    In July the CAAC issued regulations governing the employment of foreign pilots by Chinese airlines, which included a rule stipulating that a qualified English-Mandarin speaking interpreter must be on board an airplane flown by a foreign pilot.

    I am overcome by a warm sensation of security and bliss. But that is because I am still feeling the effects of the Valium I took before my flight on Singapore Airlines this morning. If that had worn off I would now be running in circles and gibbering in terror at the thought of having to rely on translators in airliner cockpits.

    Look, when you’re barrelling along at 300 knots in zero visibility, let’s say during your typical browned-out summer approach to Beijing Capital Airport, and the shit suddenly hits the fan (or turbine blades) for some reason, I should think that every second counts. Do you really want to wait for your air-traffic control instructions to be filtered through a translator on their way to the pilot?

    Furthermore, in my industry we handle a lot of translation, both of written materials and for live speeches and interviews. There is a huge amount of what we in the industry technically refer to as “shit translation”. Now, ninety-nine times out of one hundred, that’s no big deal. We edit or clarify, and no harm is done. But, with rare exception, we in the PR industry are not landing 747s (although we do deal with the aftermath when someone else fails to land one). If I was asked to pick the one time out of that one hundred when it is a big deal to have instantaneous, one-hundred percent accuracy with no exceptions, it would be in commercial airliner cockpits. Or, possibly, nuclear reactor control rooms. It’s a toss-up.

    It really doesn’t take a huge leap of imagination to envision how the scenario of cockpit translators could go wrong, especially in a moment of extreme stress:

    Pilot: “Air China 138 heavy on approach.”
    Translator (to tower): “Air China 138 heavy on approach.”
    Tower: “138 heavy turn two seven zero and descend to 2000.”
    Translator (to pilot): “Turn to two seven zero and descend to 2000.”
    Bang!
    Pilot: “Air China 138 heavy declaring an emergency. Port engine has ingested a goose, is on fire and has lost power. Clear the runway!”
    Translator (to tower): “Air China 138 Heavy is anxiously requesting roast goose! Our sexual prowess is dimished! Please empty the promenade!”
    Tower: “138 Heavy, how much goose do you want?”
    Translator (to pilot): “Why do you want goose at a time like this? We are doomed!”
    Pilot: “Motherfucker!”
    Translator (to tower): “138 Heavy extends warm greetings to your parents!”

    Perhaps I’ll take the train.

  • Do you, uh, Yahoo? You’re busted!

    Do you, uh, Yahoo? Not, one would hope, if you’re a Chinese dissident or journalist on the wrong side of the authorities.

    It seems that American technology companies can’t stay out of trouble in China. The last two days has seen widespread coverage of Yahoo!’s alleged implication in the arrest of a Chinese journalist wanted for “releasing state secrets”, which is a euphemism for embarrassing the government, among other things. The BBC has one of the more interesting articles, because it covers the bigger picture without dwelling on the usual shopping list of scare figures, like the 40,000 lurking net monitors (cited in theTelegraph’s coverage – does anyone else notice that number inflating?):

    Yaman Akdeniz is the director of cyber-rights.net, a web-based e-mail service set up in the wake of tighter laws in the UK about the traceability of e-mail communications.

    He advises activists using the web in oppressive regimes around the world to make sure they did not set up accounts with firms which have offices in the country in question.

    “Providers with offices in China have to obey specific rules. We operate in the UK so I don’t have to reply to any requests for information made by the Chinese government,” he said.

    While cyber-rights.net collects no information about its users it is not a completely untraceable way of sending communications.

    If asked by the UK government to supply information in a fraud or terrorist investigation it is likely its parent company Hushmail would comply, even though it is based in Canada and not bound by UK law, said Mr Akdeniz.

    “But if the request was for information about the account of a journalist it is likely it would be more reluctant to comply,” he said.

    I don’t know if Yahoo! is guilty or not, but, as a PR pro, and in the wake of recent scandals concerning the conduct of fellow tech firms Cisco, Google and Microsoft in China, something is clear: there should be a whole category of crisis public relations for tech firms named as complicit in Chinese government censorship or detainments.

    It doesn’t make much difference to those firms’ business in China, of course. For one thing, not many people are likely to hear about it here. But I wonder if it will start impacting technology firms internationally. I think back to noisy, well-organized public campaigns against companies doing business in apartheid-era South Africa, or in Myanmar. So far, the calls against tech firms complicit in censorship (and now arrests) in China have been pretty scattered, and confined primarily to the digerati rather than to the great mass of customers. That might change.

    So far, most of the firms confronted have given variations on the “we comply with the laws of our host country” explanation. This is accurate and understandable, but as a PR holding statement it doesn’t do much to diffuse the perception that western tech firms are knuckling under to a repressive government in search of massive bucks. Just the thing to put college students in a righteous snit. Yahoo! hasn’t issued a statement on this situation that I can find, which is also not a great idea because NGOs like Human Rights Wach and Reporters Without Borders are busy filling the silence.

    I can see the dilemma for big, listed Internet companies. Their shareholders will punish them ruthlessly if they aren’t aggressively pursuing the Chinese market. But to do business in China, they have to submit to the Chinese government, in all it’s capriciousness. These are really media companies – the only foreign media companies allowed to do business here – with real influence over Chinese people and a commensurate level of scrutiny from the authorities. But none of them will dare foresake the market on principles, and that leaves them vulnerable to PR problems whether petty, as in the case of Microsoft’s banning of general words from it’s MSN China Spaces blogging site, or sinister, as in Yahoo!’s possible complicity in an arrest. It doesn’t seem that many of them have thought in advance about how to deal with these problems.

    Sooner or later, these companies are going to have to come up with a better explanation than “just following the law of the land”, or they will end up on the wrong side of a really aggressive, negative PR campaign that will hurt a lot. For the life of me, I can’t think of what that explanation might be; give me some time to work on it. But public statements of principle on matters of free speech and protection of the rights of journalists might be a good start. These are media companies, after all. Manufacturing companies have been down this road with China sweatshops and sketchy contract manufacturers. They’ve had to submit to independent monitoring and create codes of conduct for their contractors. And they’ve been held to account, although not often enough. Could a similar situation arise for the media companies doing business here?

    In the meantime, there is some good advice in the BBC article above. If you’re a Chinese journalist or dissident, perhaps you shouldn’t host your e-mail with a company doing business in China. Perhaps the Electronic Frontier Foundation, an advocacy group for online privacy and anonymity, would care to make some of its very good privacy information available in Chinese.

    Of course, it would probably be blocked…

    Update, Sept 9: And sure enough, Yahoo!’s defence is just as predicted above. From Reuters, via the Australian:

    “Just like any other global company, Yahoo! must ensure that its local country sites must operate within the laws, regulations and customs of the country in which they are based,” Yahoo spokeswoman Mary Osako said in a statement emailed to Reuters by the company’s Hong Kong arm.

    This is meeting the predicable response from Reporters Without Borders, who ask:

    “Does the fact that this corporation operates under Chinese law free it from all ethical considerations? How far will it go to please Beijing?” it asked.

    “It is one thing to turn a blind eye to the Chinese Government’s abuses and it is quite another thing to collaborate.”

    People who read this site know my opinions on the Chinese government’s treatment of journalists and the media. But looking at this strictly from a PR point of view, I think Yahoo! and the other firms will find their “just following the law of the land” defence progressively less tenable. That is because the NGOs and activists targeting them are attacking the morality of the laws that these companies are claiming to comply with. Go back to the apartheid comparison, above. If a company had cited compliance with the law of South Africa in submitting to apartheid, how do you think activists of the era would have responded?

    The explanation still needs to evolve. Expect more trouble ahead.

    Update 2: Other interesting links (both via Peking Duck)
    Angry Chinese Blogger translates the document that got Shi Tao busted. (Proxy link.)
    ESWN dissents on condemnation of Yahoo, although I suspect he will be a voice in the wilderness.

  • A scholarly analysis of the economics of PR in China

    It occurs to me that, despite having been a Beijing PR professional for six months, I have yet to write anything about working in Beijing, as opposed to just living here.

    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.

  • In praise of Google in China

    The BBC’s website is blocked but many international apartment buildings get BBC World. My colleague was watching the BBC in her Beijing apartment this morning when a report on Google’s agreement to censor key words and sites via its upcoming google.com.cn service aired. Needless to say, they were only moments into explaining how Google had agreed to meet Chinese content control restrictions when Nanny dropped the hammer on the Beeb, leaving legions of bewildered expats to wonder exactly what it was Google was doing with the Chinese authorities. Censoring of censorship news seems like one of those things that might cause the universe to collapse in on itself.

    For the record, Imagethief thinks that Google is doing the right thing, and taking a reasonable approach to the conundrum of operating in China. I have to confess some disagreement with RSF’s take-no-prisoners approach to complicity with the Chinese government censorship regime, despite my respect for them as an organization. I believe that American Internet firms should remain in China, but should take as many reasonable steps as they can to avoid putting themselves in untenable situations, such as turning over e-mail communications belonging to Chinese dissidents or journalists. As I wrote previously [note: this link now dead – WM], I think there are shades of grey in this situation, where the benefit of offering Chinese people more choice can be balanced against compliance with some of the Chinese government’s less onerous restrictions. Filtering keywords is bad, but it is not in same league as becoming an unwitting tool in the imprisoning of dissidents.

    As reported yesterday, Google’s approach is to post notifications that some content has been removed when search returns are filtered. It will also refrain from offering its “Blogger” blogging service and Gmail service in China, so as to avoid placing itself in a situation similar to Yahoo’s recently, when it was required by the Chinese authorities to turn over journalist Shi Tao’s e-mails. Those are reasonable steps, and, as someone who has been party to a few boardroom discussions (PR people get to be flies on lots of walls), I am willing to believe that there was substantial debate within Google as to the merits of proceeding down this path before they made a final decision.

    That being said, for any company with interests in China there will be no perfect defense. Once Google has an established business in China that they have a stake in protecting, the Chinese government will gain a degree of leverage over them regardless of whether google.com.cn in separately incorporated or where the mail or blog servers live. If the authorities wish to receive information on a Gmail user, they’ll still effectively be able to hold Google’s Chinese business hostage. What would be an interesting –and traumatic– test for Google would be how they would react in such a situation, where they have no obvious legal obligation (as Yahoo apparently did), but a clear interest in protecting their China business. That is a situation carrying substantial PR risk because the widely-used “legal obligation” PR shield, thin as it is, would no longer be available as a defense.

    As to why I support US Internet firms being in China, it’s a matter of providing choice for Chinese users, even if that choice isn’t as rich as what users in other countries would get. This is essentially what Google has offered up as an explanation, and I accept it. We need to be clear with ourselves what group we’re trying to serve by pressuring US (and European) Internet firms to withdraw from China. It certainly isn’t average Chinese users. Perhaps I see this issue through too much of a personal filter. (Perhaps all of us bloggers working and living in China do; we seem to have similar opinions on this issue.) I work with seventy Chinese colleagues, almost all of whom use Google to run searches as part of their work and 100% of whom use MSN messenger to chat with friends, colleagues etc. (Don’t ask me why; that’s what they like. I’m an AIM user myself.) I certainly wouldn’t want to be the person wandering around the office explaining that the MSN Messenger servers were no longer accessible to them because Americans felt it was inappropriate for Microsoft to offer it as a service to them as long as it meant following Chinese content restrictions. And I certainly don’t see how restricting them to Chinese Internet services only serves their interests, even though it may salve our national conscience.

    But, as I also wrote previously, US Internet firms need to be clear on where they draw the compliance line, without having to wait to be pressured into it or forced into it by a crisis. There does come a point at which the tradeoff is no longer worthwhile. Personally, I think it’s worth making concessions to content filtering to offer wider –if crippled– choice. But is it worth being complicit in the detention of journalists and dissidents? Answering at a personal level again, no. Google’s decision not to offer certain services in China is recognition of this division, even if it is imperfect and a bit risky. Other companies need to be clear where the line is for them, and explain it to their stakeholders at home. Otherwise we won’t have seen the last of this issue.

    Finally, some will be tempted to say, “they’re just doing it for the money!” Yes. That’s what listed, joint-stock corporations do, and what they should do, pursuant to sensible regulation. I’m not aware of there being any mystery or hidden agenda about that. From a business point of view it’s totally understandable that companies should want to pursue the China market. The fact that many do is directly responsible for Imagethief having a job right now (just so you are clear on my personal interest in this issue). But, at the same time, companies need to be consider what costs and risks beyond the obvious financial ones they are willing to endure to pursue the market here. And exactly what compromises they are prepared to make.

    Disclosure: Imagethief does not represent any company currently affected by Chinese Internet censorship issues. But he is damn happy Google is available in China. He is also awaiting the inevitable flames for taking the position stated above, and is aware that some bloggers he likes and respects feel otherwise.

    As always, personally I think censorship is abhorrent. But I lay it at the feet of the Chinese government, not Google, and I’d still rather have Google here than not.

    Other (blog) reading (various points of view):
    Peking Duck 1: His original post on this issue. Conflicted.
    Peking Duck 2: On Google fighting a US government subpoena. A double standard?
    Roger Simon (Via the Duck): Boycott Google.
    Rebecca MacKinnon: “Don’t be too evil.”
    Danwei: Keep cool…still.
    Fons: Yi koutou! Er koutou! San koutou!
    Life After Jiangxi: Agonizing…

    Added Jan 27th:
    Asiapundit: Dumb move by smart guys.
    Billsdue: Ka-CHING…Not.