Tuesday, November 14, 2017

The political dimension of China's religious awakening - Ian Johnson

Ian Johnson
Most reviewers of Ian Johnson's latest book The Souls of China: The Return of Religion After Mao focus on religion, while his book also has a profound political dimension. "Interesting that only a religious journal gets the deeper meaning of my book--not only as a challenge to religion and values, but also to China's political order," writes Johnson on Facebook.about the review in Voegelinview.

Voegelinview:
“For I saw it was impossible to do anything without friends and loyal followers; and to find such men ready to hand would be a piece of sheer good luck, once our city was no longer guided by the customs and practices of our fathers, while to train up new ones was anything but easy.”[1] 
Ian Johnson argues, with considerable evidence, that the People’s Republic of China is undergoing a great awakening, comparable to that experienced by the United States in the nineteenth-century. This is in some sense inevitable in the generation after the Great Leap Forward and Cultural Revolution, where religions, including Daoism, Buddhism, Islam, Christianity, and especially folk religions (most of which are Daoist), were brutally suppressed. Totalitarianism led, in China’s post-totalitarian (and still officially atheist) phase, a spiritual and moral crisis that manifests itself in low social trust. In this regard, Johnson cites Peking University ethicist He Huaihong’s observation: “We can feel the overlay of savagery in our ordinary lives” (88). Johnson argues the Chinese are turning to faith as a way of filling the spiritual and moral void they experience in their culture. He combines first-rate journalism and interviewing with the most recent social science studies to show that, in discussing “China’s rise,” one must also account for its spiritual awakening that comprises, in a rough estimate, approximately 300 million believers (31). 
Johnson focuses on the lively activities of a handful of religious groups, including the Protestant Early Rain Reformed Church in Chengdu that is led by a former democracy advocate, Wang Yi; a group led by Li Bin in Shanxi province that is world-renowned for its musical performances of Daoist rituals; Beijing’s Ni family that is the custodian of the temple dedicated to Our Lady of the Azure Clouds, an important Daoist goddess, along with several other representative samples of religious believers. 
Johnson uses the term, “religion” for his Western readers but at the outset he explains this term is misleading. Researchers know not to ask the Chinese if they are religious because the answer will be overwhelmingly negative (28-29). But their response is not a sign of atheism. It is a problem of methodology and terminology because “religion” is too Western and implies something separate and alien to daily life, as well as dogma. Before the twentieth-century, the Chinese lacked a term for religion. The contemporary term, zongjiao, is a Japanese import (20-21).  Instead of religion, Johnson notes that China is seeing an awakening of ritual and of faith (xinyang). He understands ritual the same way Plato has the Athenian Stranger discuss nomoi, the customs and mores of a society. Indeed, the book is structured around the annual cycle of traditional festivals that are returning.
Much more in Voegelinview.

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Manipulating figures, part of the Single's Day game - Shaun Rein

Shaun Rein
The top-2 e-commerce players Alibaba and JD.com accused each other of manipulating the turnover they recorded at China's Single's Day. Business analyst Shaun Rein would not believe either of them, he tells the Sixth Tone.

Sixth Tone:
Behind the quarrel is an all-out war to conquer the world’s largest and fastest-growing e-commerce market, industry analysts say. According to iResearch, a Chinese internet consulting firm, Tmall accounted for 56.6 percent of all business-to-consumer e-commerce sales in 2016, while JD.com came in second with 24.7 percent of all sales. 
“Both companies are manipulating the numbers to make themselves look good — for reporters and brands, and to get consumers excited,” said Shaun Rein, author of the upcoming book “The War for China’s Wallet” and founder of China Market Research Group, a strategic market intelligence firm in Shanghai. Winning the annual shopping festival “is really like a trophy,” he told Sixth Tone.
More at the Sixth Tone.

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Monday, November 13, 2017

Trump: a bit of business, few jobs from China - Paul Gillis

Paul Gillis
The result of Donald Trump's visit to China has been underwhelming, especially when some of the published deals were put under scrutiny. Beida accounting professor Paul Gillis looks at the Washington Post and the opening of financial markets where foreign firms could get a majority share.

The Washington Post:
The changes could be good news for U.S. companies, though experts said they need to know more about the rules and the timing of the changes. “It is a positive step forward,” said Paul Gillis, a professor at Guanghua School of Management in Beijing. “Fifty-one percent [joint ventures] offer control to the foreign investor, although the devil is in the details as to how management and the board are structured.”... 
“China likes to throw bones to foreign visitors, so it was expected that Trump would be given some good news,” Gillis said. “I doubt it is significant, however. It certainly won’t create any U.S. jobs.”
More at the Washington Post.

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Thursday, November 09, 2017

Why e-readers are doing well in China - Shaun Rein

Shaun Rein and his books
The Hong Kong IPO by Tencent's China Literature, driving on a Chinese e-reader, was a big hit, while e-readers like Amazon Kindle are clearly over their highpoint. Business analyst Shaun Rein explains in CNNMoney why e-readers go like crazy in China.

CNNMoney:
Compared with other smartphone distractions like video games and streaming TV, e-books may seem a bit low-tech. 
But they appeal to many Chinese, as they are subject to less stringent government censorship rules than movies and TV. 
"There's a lot more flexibility and freedom," said Shaun Rein, managing director of China Market Research in Shanghai. The most popular genres are romance and fantasy, he added. 
Rein said that local e-reading platforms are also more popular than foreign entrants, like Amazon's Kindle. That's despite the U.S. behemoth's e-book store having been in China for almost five years. 
Apple's iBooks service in China was abruptly shut down last year, reportedly on government orders. 
China Literature's Qidian.com portal lets users buy individual chapters for the equivalent of a couple of U.S. dollars, rather than forking out for an entire title. 
"It's seen as virtually free and it builds up momentum" for the following chapters, Rein said. Unlike Amazon's Kindle Store, the titles on Qidian.com are mostly written by enthusiastic amateurs hoping to strike it rich as the next J.K. Rowling. Part of China Literature's long-term strategy is licensing out this steady flow of content into other media, like TV series, games and movies.
More in CNNMoney.

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Wednesday, November 08, 2017

Why China did not hit a wall - Zhang Ying

Zhang Ying
Some analysts believe China's fast development has hit a wall. RSM professor Zhang Ying is not one of them, she writes in the Finance Monthly."China’s economy does not hit the wall. Instead, it is on drive with much more power."

Zhang Ying:
China’s economic growth from the factor-driven to an efficiency-driven in the past 3 decades has not only brought China to be the world manufacturing center in the past, but also leveraged China as one of the important “spinal joints” of the world-body for the future. The reason of its importance is consistent with the global phenomena and world economy integration, as well as the interdependence between China and the rest of the world. 
China’s supply-driven and quantity-based catch-up model is very effective, particularly to bring China to the category of middle-income countries; however, once stepping into such a territory, the historical evidence already shows that the chance to be trapped in there is be very high, if without proper in-time transformation. 
Due to the high-interdependence, China’s reduced economic growth rate, though not pulling China’s economy moving down, has pulled exponential impact on some countries in terms of their employment rate and economic performance. Such symptom calls for worries and blaming to China, with two different messages: one, China hits the wall; second, China is transforming and preparing for the innovation-driven economic growth model. 
China’s current transformation, in terms of being inclusive and quality-based and dramatic rising evidence in domestic consumption and prosperous service sector, implies that China will not be falling into the first proposition. It is also supported by the vision and the joint effort of Chinese citizens, global participants, and Chinese government to build China as an inclusive society and sustainable economy for the sake of world integration and global sustainability. In principle, this direction is presented as a paradox where China’s transformation is empowered by massive entrepreneurship and innovation in the current technology-driven and digitalization era ,while presented with a reduced GDP growth rate. 
The underlying matter is our perception and the angle to view it. 
China’s economy does not hit the wall. Instead, it is on drive with much more power. With corrected understanding on the relationship between what China is working on and what the statistics simply presented, there would be more space for the world to grow together, for the world economy to be more stabilizing, sustainable and integrative.
Other opinions in the Finance Monthly.

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China's financial strategy to take over Hong Kong - Victor Shih

Victor Shih
Hong Kong has been taken over silently by mainland China in financial terms already before the handover by the UK in 1997, says financial analyst Victor Shih to AFP. But what has gone wrong is the lack of tools to control that take-over, especially when Xi Jinping defined corruption as the major evil to be addressed, Shih says.

AFP:
Some analysts say the shopping spree in Hong Kong is also part of Beijing's strategy to tighten its grip on the territory. 
State-owned enterprises began to buy up properties to boost their businesses in Hong Kong in the 1980s, ahead of the 1997 handover from Britain, says Victor Shih, associate professor of political science at the University of California, San Diego. 
"It's to integrate the economies of Hong Kong and that of China, to make the whole process of reunification smoother," he argues... 
Corporate filings reveal a Chinese Communist Party organisation is at the top of the ownership chain of The Center. 
A statement from Li's CK Asset Holdings named the buyer as C.H.M.T. Peaceful Development Asia Property Limited, incorporated under the British Virgin Islands and set up as a "special purpose vehicle" specifically for the acquisition. 
Its largest shareholder is Beijing-based China Energy Reserve and Chemicals Group, according to the South China Morning Post and Wall Street Journal. 
The energy behemoth links back to the party -- one of its four major shareholders, China Hualian International Trade Company, is owned by the China Economic Cooperation Center, corporate filings show. 
The entity, according to various Chinese government sites, is controlled by the International Liaison Department, a Communist Party arm known for handling its foreign affairs. 
Shih said such big deals could challenge the party's internal governance at a time when President Xi Jinping is warning against corruption and profligate spending. 
He points out The Center will generate millions of dollars of rent each year. 
"The challenge for (the party) is whether they have the personnel and the framework to audit and monitor what must be enormous cash flows going through them," says Shih.
Numerous mainland officials, their family members and businesses have set up shell companies in Hong Kong to siphon wealth to an off-shore location to diversify their risks, Shih added, creating a mutual dependency between the two economies. 
"Hong Kong remains one of the biggest loopholes in China's capital control," he said.
More in AFP.

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Tuesday, October 31, 2017

Journalism and fiction: some common ground - Zhang Lijia

Zhang Lijia
Fake news has become rightfully a problem for journalists, but the relation between journalism and fiction is a bit more complicated. Beijing-based journalist Zhang Lijia, author of Lotus: A Novel covered some of the common ground at the literary festival at Ubud, Indonesia, she writes on her weblog.

Zhang Lijia:
Journalism and fiction cover a lot of common ground. There’s little wonder that some successful writers come from journalistic background, Mark Twin, Ernest Hemingway, Joan Didion, to name just a few. 
Some journalists got into the profession because they love writing. Then some find journalism frustrating and limiting. There’s a fundamental difference between the two: one is pure imagination and the other pure documentation. In journalism, you have to stick to what has actually happened. You can’t allow your imagination go wild. That’s a major restriction for some literary minded journalists. That was why in the 60s the so-called ‘New Journalism’ was launched in US where journalists generously borrowed techniques commonly used in faction writing, setting the scenes, good conversation, sense of suspense, character development. One good example is in Cold Blood by Truman Capote
I’d like to think that I’ve become a slightly better writer after spending years in completing the novel and I hope I can better apply the fictional techniques I’ve learnt in my future non-fiction books.
More at Zhang Lijia's weblog.

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Monday, October 30, 2017

Pay back time for foreign companies - Shaun Rein

Shaun Rein
American and European companies in China are complaining they are less welcome than in the past. That might be a correct feeling, says business analysts Shaun Rein to Bloomberg, for example when it comes to a higher living standard for their workers in China.

Bloomberg:
The push to improve the living standards of employees comes as Western firms are still clamoring for greater market access. In a January survey of 462 U.S. companies by the American Chamber of Commerce in China, 81 percent said they felt less welcome in China, while more than 60 percent have little or no confidence the country will further open its markets in the next three years. 
Chinese officials, meanwhile, counter such complaints by pointing to the years of tax breaks and other special treatment afforded to large foreign companies to encourage them to invest in China, according to Shaun Rein, managing director of Shanghai-based China Market Research Group. 
“There’s a feeling among the government that foreign companies have made a lot of money on the back of poor Chinese,” said Rein. “Now the government feels foreign companies need to give back.”
More in Bloomberg.

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Honouring Zhejiang entrepreneur Lu Guanqiu - Rupert Hoogewerf

Rupert Hooogewerf
The iconic Zhejiang entrepreneur Lu Guanqiu, founder of China's largest automotive parts company Wanxiang Group, passed away last week, 72 years old. Hurun China rich list founder Rupert Hoogewerf remembers him as "industrious, down-to-earth and low-profile" , he tells in Asia One.

Asia One:
His success in managing Wanxiang helped Lu rise high in the nation's rich list. Rupert Hoogewerf, founder and chief researcher of Hurun Rich List, rated Lu as "evergreen" on the list. In the 2017 Hurun Rich List, Lu and his family ranked No 37, with a net wealth of 49 billion yuan (S$10 billion). 
"Lu is the first name that popped into my mind when asked about a model of Zhejiang entrepreneurs, although his wealth has been overtaken by Zong Qinghou from Wahaha and Jack Ma from Alibaba," Hoogewerf said. 
"He is industrious, down-to-earth and low-profile. He was the first private company owner who could make his wealth transparent to the public," he added. 
Wanxiang was founded in 1969 with 4,000 yuan by Lu and six other local farmers in rural Zhejiang as a maintenance depot for farm machinery. It began focusing on producing universal joints in 1980, which is a key component in automobiles' driving systems.
More in Asia One.

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Thursday, October 26, 2017

Why China aspires to be a global power - Howard French

Howard French
China denies being a colonial power, like the West has been. But the country's imperial traits are never far away, warns Howard French, author of Everything Under the Heavens: How the Past Helps Shape China's Push for Global Power. "The world best keep its eyes on China, said French, who believes that China’s imperialist history will lead it to push for global power," French said according to The Sun.

The Sun:
(French) said that during a speech at Columbia University, some Chinese students said his account of the situation contradicts their understanding of Chinese history, which does not consider China as a colonial power. 
In reality, French said, China constantly used its sheer size to force nearby nations into accepting Chinese superiority through the tributary system. He believes that this way of dealing with peripheral countries in Northeast Asia is the deeply embedded default in Chinese culture. 
“China was in this business two thousand years ago, and has been in this business with notable interruptions in the last couple hundred years,” he said. 
The world best keep its eyes on China, said French, who believes that China’s imperialist history will lead it to push for global power. 
“I think the strangest thing of all would be for a country as big as China not to have ambitions about reshaping the world in its own terms,” he added. 
French pointed out that there is already “no country in Southeast Asia that is not heavily dependent on trade with China and is not deeply in sync with [it] in terms of politics, except Japan.” 
He also predicted that the high anxiety between Japan and China will erupt in the future as China gains momentum in its aim for global power. 
In the near future, China will continue to gain strength and expand its desired international system. “It won’t be stopped unless something catastrophic happens to China’s economy,” French warned.
More in the Sun.

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The anti-corruption drive changed China - Arthur Kroeber

Arthur Kroeber
After the closure of the 19th Party Congress this week, analysts try to figure out what happened during the meeting. It's not about internal party fighting, as some claim, says economist Arthur Kroeber. President Xi Jinping changed the country through his all-out anti-corruption drive, and that started already five years ago, he tells NPR.

NPR:
In August 2012, Chinese politician Xi Jinping suddenly disappeared for three weeks. China's 18th Party Congress was weeks away, an event where Xi would be anointed as China's next leader. To this day, nobody but key members of China's top leadership knows why. 
"One story that's popular among the 'chatterati' of Beijing is that there was a lot of concern about the Bo Xilai situation and what it meant for the party," says Arthur Kroeber, managing director of Gavekal Dragonomics. 
The year 2012 was a tumultuous one for China's Communist Party. Top politician Bo Xilai was under investigation after his wife was convicted of murdering a foreigner, and corruption within party ranks was spiraling out of control. 
Kroeber says the rumor behind Xi's disappearance that summer begins with Xi's going to China's Communist Party elders. 
"And the story goes that he said, 'Look. We've got a serious problem here. This requires very serious measures to rein in corruption and impose more discipline, and I'll do that, but you need to give me carte blanche to do what I want,' " says Kroeber. 
If party elders weren't prepared to give Xi these powers, the tale goes, then he wasn't interested in the job. 
This, of course, is a rumor. But if true, it would help explain Xi's rise to become one of the world's strongest leaders. 
"I think the evidence that we have is that (building his own faction) ... is not his aim," Kroeber says. 
He points to how far-reaching Xi's campaign has become, permeating every level of government. 
"His aim is much broader," Kroeber says. "He wants to create a system that will survive after him. And in that sense, he is a kind of member of this Chinese elite that has a sense of mission about the country as whole."
More in NPR.

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Wednesday, October 25, 2017

Prosperity causes China's religious revival - Ian Johnson

Ian Johnson
An upsurge in  folk religions, Buddhism, Taoism, Christianity and other forms of spirituality is caused by China's development into an industrial superpower, argued journalist Ian Johnson, author of The Souls of China: The Return of Religion After Mao earlier this week at a speech at , according to the Yale Daily.

Yale Daily:
Johnson spoke before a crowd of about 50 students and faculty Monday about this six-year venture. 
“I’ve been thinking about writing this book for over 30 years, since I first went to China in 1984,” Johnson said. “I had gone to China to learn Chinese and look at this country that was just opening up.” 
During China’s period of economic reform, foreign media mostly focused on the nation’s rise as it joined the World Trade Organization, hosted the Olympics and came into the world as an economic superpower, Johnson said. 
However, he explained that these global perceptions failed to accurately represent the national sentiment at the time. 
“For many Chinese people, I think China was already entering a newer era, an era of uncertainty and anxiety,” he continued. 
At the start of the 21st century, Chinese citizens’ excitement about their massive gains in material wealth began to fade, Johnson noted. As scandals about tainted food and political corruption hit the country, Chinese people began to question cultural values, he said. 
At the same time, China’s economy was soaring and rates of urbanization were picking up. Racked with uncertainty about the grounding of their society, moving from agrarian lives with familial and community support to big cities, some Chinese citizens began to see religion as a means of adjusting to a more complex world. 
“What religion is for a lot of people in China is a way to recreate community,” he said. 
“People are moving to these big, anonymous cities, and they feel that they lack something. These religious communities, whether they’re Christian or Daoist or Buddhist, in some way help recreate structure.”

More at the Yale Daily.

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Internet giants crush the smaller ones - William Bao Bean

William Bao Bean
Who will survive in the travel industry: the global giants or the local ventures, was a question for William Bao Bean, managing director of the Shanghai-based Chinaccelerator, at the WIT 2017 Conference in Singapore. William, who guided hundreds of startups, believes the big internet firms will crush the small ones, writes WebinTravel.

WebinTravel:
One critical question on everyone’s mind was who would emerge victorious in the online travel market: Local or global players? 
Bean offered a slightly pessimistic view, remarking, “the big is getting bigger and the small are getting crushed,” and citing the example of how Facebook and Google currently control the majority of global advertising; or how payments and e-commerce are now owned or invested in by Tencent and Alibaba
He did also add that “travel is insulated,” but nevertheless, its turf will be harder to defend from global players over time. “If they don’t have a short, they’ll use money as a weapon and acquire” businesses that will let them get ahead... 
So, the big are getting bigger, but “they can be quite myopic”. It grants smaller companies and startups with a slim but existent window of opportunity to sneak ahead. But they must also be aware of common pitfalls, to avoid common mistakes that befall many entrepreneurs. 
Bean argued, “the dumbest thing entrepreneurs do” is trust their gut when trying to expand their brand globally from the get go. “You cannot go with your gut, because it will take you in the wrong direction.” 
Instead Bean recommended “focusing on data and trying things,” encouraging “companies to use data to back up their decisions.” He continued, “you will fail, but it will help you to fail faster” and recover sooner.
More in WebinTravel.

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Stabilizing risks: key for financial reforms - Sara Hsu

Sara Hsu
President Xi Jinping has promised more financial reforms, but financial analyst Sara Hsu says managing risk is key, over the need for reform. Fintech, debts and due diligence are some themes in the next five years of China's financial development, she adds at the state broadcaster CGTN.

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Tuesday, October 24, 2017

Timing and resilience, key for success startups - William Bao Bean

William Bao Bean
Many cities, including those in China, are teeming with startups. Many will fail, some will succeed. Timing and resilience are two factors that are crucial for the success of startups and their founders, says William Bao Bean, managing director of the Chinaccelerator at the WIT Bootcamp 2017, according to Web In Travel.

Web in Travel:
“The best founding teams are like cockroaches, they get stepped on and go crunch a little but then keep on running,” a quote by William Bao Bean, general partner of SOSV and managing director of Chinaccelerator best sums up what make a better startup, and perhaps set it on the road to being a unicorn. 
Speaking at the panel session on “What makes a better startup” at WIT Bootcamp 2017 in Singapore yesterday Bao Bean used this example to show the resilience of a startup in Shanghai which, despite a few difficult years on surviving on little income, difficulty in finding investors and a host of other factors working against them. 
The question of timing is also important as this startup was five years too early, he added.
More in Web in Travel. 

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Are you looking for more tips on the Chinaccelerator by William Bao Bean? Check out this video.

Why China is a Ponzi scheme - Victor Shih

Victor Shih
Calculating China's debt has been a major political game, and political analyst Victor Shih claims the country's debt "around 328% of GDP in May", writes Livemint. The central bank overcalculated banking assets, he says.

Livemint:
Prof. Victor Shih at the University of California at San Diego thinks that the PBoC estimates of banking system assets are overstated because there could be double-counting. He has come up with his own calculations in a new brief for the Mercator Institute for China Studies in Germany (Merics’ China Monitor: “Financial Instability In China: Possible Pathways And Their Likelihood”, 20 October). According to him, overall credit to the non-financial sector (including households, Central and local governments) from banking and non-banking channels (including shadow-banking channels) was around 328% of GDP in May. For comparison, the Bank for International Settlements puts this number at 257.8% as of March. Given this huge debt burden, China’s interest payments are rising much faster than its nominal GDP. He notes tersely, “China as a whole is a Ponzi unit.” That does not leave much room for doubt.
More at Livemint.

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A man's world in China - Zhang Lijia

Zhang Lijia
When the official China Daily reported that a scandal like Harvey Weinstein's sexual escapades could not happen in China, many raised their eyebrows.  Author Zhang Lijia, of Lotus: A Novel on prostitution in China, sets the record straight for AFP.

AFP:
The litany of alleged crimes in corruption cases can sometimes be cover for factional score-settling. But official data shows that men in power hand ample ammunition to their critics. 
A 2013 study from Renmin University in Beijing found that 95 percent of corrupt officials had extramarital affairs, and at least 60 percent had kept a mistress, which typically involves providing an apartment and an allowance. 
"It's definitely still prevalent," said Beijing-based writer Zhang Lijia, who conducted research on China's sex industry for her novel, "Lotus". "The traditional practice of men showing their social standing with numerous concubines has returned in the form of mistress culture."
More in AFP.

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Monday, October 23, 2017

How Alipay, WeChat became top-brands in China - Tom Doctoroff

Tom Doctoroff
Alipay, WeChat and Android are top brands, the Chinese consumer could not live without, says a recent report. Looking at brands works in China pretty different from the rest of the world, says branding expert Tom Doctoroff in the South China Morning Post. “There is no way in America that you are going to have PayPal [the western equivalent of Alipay] to rank No. 1,” Doctoroff adds.

The South China Morning Post:
All three Chinese companies on the top 10 brands list are technology related, with the music app NetEase Cloud Music coming in at No. 10, the global branding and marketing consultancy Prophet said on Thursday as it unveiled its 2017 brand relevance index for China. 
“Chinese consumers today live, work and play in a connected, digital world, so the brands that deliver useful, easily accessible and enjoyable experiences are going to be the most relevant to their lives,” said Tom Doctoroff, a senior partner at Prophet. 
The rest of the list is dominated by brands that include Ikea, Apple, Nike, Estee Lauder, BMW and Marriot hotels. 
The consultancy surveyed more than 13,500 Chinese consumers in 39 cities on the mainland about which among 235 household brands in 30 industries were most relevant to them this summer... 
“Overall, the relationship between digital and individual in the West is significantly more functional,” Doctoroff told the South China Morning Post in Shanghai. “But In China, where ambitions are huge but social regimentation keeps people from [expressing themselves or] realising their ambitions, people project a lot of their emotions onto their digital selves. 
“So that’s why I think these tech brands are all so rich and meaningful for people – it is not just an utilitarian, convenient relationship,” he said. 
“There is no way in America that you are going to have PayPal [the western equivalent of Alipay] to rank No. 1,” Doctoroff said, stressing the more apparent emotional connection between tech brands and Chinese consumers.
More in the South China Morning Post.

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