Audit Faults Apple Supplier

In China, labor laws mandate a 40-hour work-week with a maximum of 36 hours of overtime per month.  Translation: working 50 hours or more per week, on average, is against the law in China.  To put that in perspective, I think probably a quarter or more of U.S. workers are breaking Chinese law.  Investment bankers, management consultants, CPA's, lawyers, doctors, most entrepreneurs, Brother Carpenter, etc. are all breaking Chinese laws.  However, I checked and it turns out the construction crews working on I-15 near Provo are erring on the side of safety with an average of 20 hours per week. (yes, that last statement was completely made up, but I bet it isn't far from the truth).
Anyway, now that things are in perspective, Apple found that some of its factories in China were not complying with Chinese law and CEO Tim Cook has laid down the law.  Apple is committed to sustainable labor policies in regards to their manufacturing.
Why include this article?  Well, I feel that we have heard so much about sweat shops and people working 500 hours per week (if that were possible), that I have this stereotype in my mind that people living in Asian countries do nothing but work in factories all day and all night and never sleep or eat (except for rice).  If you also struggled with this same misguided view, this article provides hope that you too can one day overcome false stereotypes, at least when it comes to Chinese workers in Apple's supplier's manufacturing facilities.

Cheers!
Jeff Carroll
http://online.wsj.com/article/SB10001424052702303404704577311943943416560.html

Shanghai Gets Rich As It Gets Old

"There’s an old saying: China will get old before it gets rich. Shanghai is turning that adage on its head: The city is both rich and old."  
One-fourth of Shanghai's residents were at least 60 years old last year.  What this means is that there is more wealth in Shanghai per individual than most other Chinese cities and that in parks you will see more elderly people walking around in the mornings.
Although a bit random, I thought this was interesting because now I will probably notice more the age demographics of the cities we visit and pay more attention to it.  
Jeff Carroll
http://blogs.wsj.com/chinarealtime/2012/03/30/shanghai-gets-rich-as-it-gets-old/

Thailand Becomes a Connecting Country

Thailand is beginning to look like it will become a key connecting country across the region. Companies are beginning to invest millions of dollars to meet the needs of the increase internet demand in the country. Thailand is also in high demand because they just opened up to foreign investors. I thought this was interesting because I never thought as Thailand as a country that would link countries together. They have a bigger impact on the world then I was ever aware.

http://www.bangkokpost.com/business/economics/286652/thailand-could-become-internet-gateway-for-region

Stacy Collyer

Thailand Raises Minimum Wage

Thailand has recently raised their minimum wage. Their main purpose in doing this was because of the rising cost of living for the people. However, this rise has had a negative effect on firms. Firms need workers to increase their skill level in order to offset the higher cost of running a business. The Government also agrees with businesses in hopes that the higher skill levels will attract more advance industries to Thailand. I thought this was interesting because the article also mentions that despite everything unemployment is not a problem for Thailand. I think it is fascinating that they are able to keep unemployment so low even with the rising minimum wage.

http://www.themalaysianinsider.com/business/article/thai-minimum-wage-jumps-from-april-as-central-bank-frets

Stacy Collyer

Hong Kong Airlines new flight to London

Within this article, it talks about Hong Kong Airlines new flight from Hong Kong to London. It is only business class and only flies from each direction 1 time a day. It is comparably cheaper than its competitor, Cathay Pacific Airlines. Hong Kong Airlines is  £2,360 and Cathay Pacific Airlines is £6,830. They are hoping that this new plan will help the company. I have heard from previous articles that Hong Kong Airlines has been struggling a little bit. This interested me because it was fun to what the inside of the plane looked like.

http://www.economist.com/blogs/gulliver/2012/03/hong-kong-airlines

Brandon Wise

Hong Kong's newly elected Chief of Executive

Within this article, it talks about Hong Kong’s newly elected Chief of Executive, Leung Chunying. He was a former cabinet member when he was on election and received 689 votes out of the 1,193 ballots that were cast to elect the new Chief of Executive for Hong Kong. He is Pro-Beijing and has rumored to be part of the Communist party but he steadily defies this. After he was elected, he gave a speech that pretty much says that the freedoms and rights that people in Hong Kong enjoy today will be preserved. This really intrigued me because I have always wondered what kind of government Hong Kong had. Cant wait to go to Hong Kong!
 http://www.forbes.com/sites/robertolsen/2012/03/25/hong-kongs-elite-selects-citys-new-leader-amid-protests/
Brandon Wise

A Debut in New York, 20 Years in the Making L’Arc-en-Ciel’s New York Debut at the Garde

L'Arc-en -Ciel, sold out Madison Square Garden withits NYC debut on Sunday night. They are Japanese rock band, they became very popular when I was in Junior High. Then after a few years  later, they kind of disappeared from TV. I knew that they had been back, but I never thought that they would become so successful. I'm interested to see how they can be successful in the U.S..

http://www.nytimes.com/2012/03/27/arts/music/larc-en-ciels-new-york-debut-at-the-garden.html?scp=4&sq=japan&st=Search

A new player on the London-Hong Kong

Hong Kong Airlines has launched a unique service only for business class between London and Hong Kong. Only one flight a day is operating is each direction. Its price is actually very nice comparing with other airlines' business class ticket. Hong Kong Airlines will start at £2,840, where Cathay Pacific costs £6,830. each Yang Jianhong, the president of Hong Kong Airlines says "expects the route to break even in its first six months ata a target 75% load factor." I' interested to see how this service will help the airline.

http://www.economist.com/blogs/gulliver/2012/03/hong-kong-airlines

Cambodia PM in Trouble

The nephew of the Prime Minister of Cambodia has been accused of involvement in aheroin trafficking and money laundering syndicate targeting Australia. Though plans have been made to arrest the nephew, Hun To, those plans are not going to happen because Australia simply denied him a visa there. The Australian embassy did not want to deal with a diplomatic incident. The article says that this is only one of many incidents that suggests a strong link between local crime figures and Cambodia.

Read more: http://www.theage.com.au/national/investigations/drugs-our-man-in-cambodia-20120325-1vsiz.html#ixzz1qQr7Tcoj

Lauren Neeleman

Competition for Worlds Largest Economy

In a recent prediction by economy experts, China is supposed to take over the US's spot as the largest economy by 2020 but only for so long before India is predicted to take that title away from China by 2050. Based on the predicted GDP's of the countries in 2050, the U.S. will only have a GDP of 39 trillion while China will double that with 80 trillion and India will even do better with an 85 trillion GDP. These numbers are just educated guesses, not fact, but I thought it was interesting that China and India should produce so much more than us in such a short time.Linyi, Kelamayi and Guiyang in China; Surat and Nagpur in India are cities we should follow in the future according to the article.

http://economictimes.indiatimes.com/news/economy/indicators/india-to-surpass-china-will-become-worlds-largest-economy-by-2050-report/articleshow/12443008.cms

Lauren Neeleman

Cheap China

In China, wages have been rising more rapidly then before.  Many are wondering if soon China will no longer be able to produce cheaper goods. It is said that the overall wages in China increased by 20% in the last year.  While some believe that China will no longer be such a prominent manufacturer if their wages continue to increase, many argue otherwise.  They have found that wages have been increasing because production has become more efficient. Additionally, China's coast has many advantages and already established manufacturing that continues to give them advantages over other countries.  This is interesting because it relates to other articles I have read including the increasing textile industry in Cambodia.  It is fun to see how China is developing so rapidly.

Kimberly Young
http://www.economist.com/node/21549956

Not so popular in Japan?

The Japanese founded Uniqlo clothing store has not been received with much success.  The Japanese feel that it lacking color and sparkle. This has not phased this company much because of the success that they have been having globally.  Japan is hoping to improve their reputation locally and then spread into close countries such as China.  I have personally witnessed how Uniqlo is trying to improve their image and appeal to more customers.  Just this last month they released new clothing containing bright spring patterns which contrasts so much to their solid basics that they usually carry. This is interesting to me because it demonstrates problems that new companies can face, and it interests me that the company is having better success abroad then in Japan.

Kimberly Young
http://www.economist.com/node/21551062

Chinese Firms, Regulators in Talks on Yuan-Fund Program (By Lingling Wei March 22, 2012):

There is a proposed program that could increase capital flow while helping China's stock market grow.  The program would allow approved investors to use yuan funds raised in Hong Kong to invest in Hong Kong exchange-traded funds that track mainland-listed stocks.  Originally it was proposed by China’s Securities Regulatory Commission and would require approval from the country's cabinet and council. The proposal would enlarge a recently launched trial program that allows approved parties to invest in China's stock and bond markets with yuan raised offshore. This will make the yuan more of an international currency.

The current program leans more toward bonds than stocks. Under the guidelines issued by Chinese authorities, at least 80% of the yuan funds raised must be invested in fixed-income securities traded on the mainland, with no more than 20% for equities. Since this issue has been addressed, several fund managers cited uncertainties over China's markets and they are still in the process of piloting this program.  It could mean some big things for the future of China, Hong Kong, and the Worlds economy.

~Chet Matsuura

http://online.wsj.com/article/SB10001424052702304636404577297000038186824.html?mod=HK_MIDDLETOP

China’s economic slowdown may impact Thailand’s export sector (By Zhong Li - Mon, Mar 26th, 2012):

This article talks about China’s predicted economic slowdown may lead Thailand’s export sector into recession while also preventing the worlds’ as well as Thai economy from achieving their targeted growth for this year.  It covers both Thailand and China.  FPO Director-General stated that the fact that foreign investors are pulling out of the Chinese stock market has hinted that an economic in China’s real estate sector is looming near.

In Thailand it is believed that China will soon suffer a severe economic setback, which will see its growth decline to only 6% from the previous estimation of 8-9%. The FPO Director-General of Thailand stated that his office is bracing for the struggles, which may be brought on by China. In addition, they are also looking for measures to deal with the oil situation in the global market, which has pushed the initial cost of transportation up by 0.3-0.4% along with an increase in goods prices and cost of living.It is predicted that China’s economic slowdown will happen in a gradual rather than an abrupt manner despite the Chinese government’s data pointing to a weak growth in the country’s economy.  This may help countries like Thailand prepare as best as they can.

~Chet Matsuura

http://thailand-business-news.com/business/36809-chinas-economic-slowdown-may-impact-thailands-export-sector

Another Japan reactor shuts down; only one left

Before Japan's devastating earthquake and subsequent tsunami last year the country had 54 functional nuclear reactors.  However, due to the destruction caused by the tsunami, only one reactor remains.  This final reactor is expected to be shut down for maintenance in the coming weeks which leaves many worried about a possible shortage of power during the upcoming hot summer months when power is in higher demand.

I am interested to see if there will be any noticeable damage leftover from last year's earthquake.  It truly must have devastated the country, especially since only one of the 54 reactors is up and running.

http://newsonjapan.com/html/newsdesk/article/95508.php

Tsai blasts proposed ‘one country, two areas’ policy

A Taiwanese government official blasted Taiwanese President Ma Yingjiu for his "One Country, Two Areas" policy.  This is referencing President Ma's recent political stance with China. The two countries have been estranged since WWII, and tensions between the two were always high until recent years.  Now, some Taiwanese officials are worried that the current president is taking too friendly of a stance with China, and by so doing will cause instability to the country.  President Ma was also accused of bullying the opposition parties is public and making important political decisions without them in private.

I find this article interesting because it shows a new dynamic that is arising between China and Taiwan.  I believe that this is mainly due to the increasing economic advantages that can be enjoyed by Taiwan if they form closer ties with China.

http://www.taipeitimes.com/News/taiwan/archives/2012/03/27/2003528816

Hong Kong appoints new leader

Hong Kong just elected a new chief executive for the city-states, Leung Chun-ying. This new leader is under an invesitgation for a conflict of interest case in which he was involved in a construction project while holding a position in the office. While this a problem that he might not be the most honest politician an even bigger problem exists. There are many students and activist groups protesting that they don't have the right to vote for the chief executive. In the article it says, "Hong Kong's population of seven million people isn't asked to vote for the chief executive. The decision is made by the 1,200 members of the Election Committee, a group of people selected from pro-business and pro-establishment circles." I think it should be interesting to see if these protests will cause any changes to be made.

Sarah Bilton
http://www.cnn.com/2012/03/25/world/asia/hong-kong-election/index.html?npt=NP1

On the Menu in Taiwan? U.S. Beef with a Dash of Ractopamine

March 7, 2012
In this article it talks about meat in the US and Taiwan.  The beef in the US has ractopamine in it.  Taiwan has a policy against chemical that harm people.  The US states that ractopamine is not harmful for humans.  Only for beef, the government says there will be a partial ban. The views of this subject is interesting.

http://blogs.wsj.com/chinarealtime/2012/03/07/on-the-menu-in-taiwan-u-s-beef-with-a-dash-of-ractopamine/?KEYWORDS=taiwan
McKenzie Carpenter

Taiwanese Sakura - A Symbol of Japanese Influence

This was a very interesting article about the influence of Japanese culture and infrastructure on Taiwan. The country was ruled by Japan for 50 years up until Japan’s defeat in World War II, but, unlike Korea (who also were ruled by harsh Japanese taskmasters), the Taiwanese have embraced much of what Japan infused in them. The article focuses on one example in particular, the fact that Taiwanese have made sakura (cherry blossom) planting and sightseeing a major event. In a quote directly from the article, “Analysts say the obsession with sakura -- a key symbol of Japanese civilization -- is a measure of the enormous cultural clout Japan wields on the island, second only to China in its impact.” The article ends with a submission that while Taiwan has embraced much of Japan for themselves, they are still Chinese by culture.

There were a few points I found particularly interesting about this article. First, the fact that Korea and Taiwan had such drastically different reactions to the Japanese occupations of the early 20^th century. Second, the fact that Taiwan has managed to infuse the form of Japanese culture into their own culture without loosing their distinct Chinese identity. I have never been to Taiwan before, but friends who have served missions in Taiwan often told me about the Japanese influences they experienced there. I am really looking forward to going there! But too bad we won’t be in Japan or Taiwan for sakura season…

http://www.naharnet.com/stories/en/34617-the-empire-smiles-back-taiwan-s-japanese-cherry-festival

Trevor Habermeyer

Ma's Trade Leadership

February 7, 2012

Although Taiwan had experience a tusnumi in the year 2008, there has been some improvements.  In 2009 the unemployment rate was at 6.13% and by Novemeber of 2011 it went down to 4.28%.  As far as the economy, it grew an average of 3.2% every year from 2008 to 2012. It also says the preliminary estimate grew to 4.51% for 2011.  This is interesting to see where Taiwan is at. 

http://online.wsj.com/article/SB10001424052970204369404577208284259490226.html?KEYWORDS=taiwan
McKenzie Carpenter

The death of trust

Japan has passed its one year mark of 3/11. The after effects of this disastrous tsunami are still causing many civilians major problem. The reason why so many are still suffering is because Japan’s response to the disaster has been unbearably slow. The government’s Reconstruction Agency, the agency in charge of deciding where money is spent for rebuilding towns and villages, didn’t open its doors until 11 months after the disaster! Many people have not been able to return to their villages because of the nuclear chemicals that are still in the air because of the exploded power plant. I think this is interesting because many Americans complain how slow the government was in giving aid to those harmed from hurricanes. It seems like we are leaps and bounds ahead of the response effort that happened in Japan.

http://www.economist.com/node/21549917

Sarah Bilton

Taiwan: Noble Efforts Towards Eliminating Corruption

This article discusses the efforts of Taiwan’s ACC, or the Agency Against Corruption, which was launched last July. The organization aims to increase “cleaner government”, or government that is not tainted by corrupt politicians and practices. The head of the organization made an interesting observation about their efforts, saying that “if Taiwan expects to be seen as a responsible member of the global community, corruption must be eradicated.” The ACC sees greater transparency as one of the main functions needed towards “cleaner” government.

I was fascinated that such an organization exists in Taiwan—do we have an equivalent in America? Forgive me for being ignorant. I am just impressed that Taiwan would go to such great lengths to ensure greater equality and non-corruption in their government. One point I found personally interesting was made by the head of the ACC, in which he said that we often believe officials commit crimes out of greed or some internal flaw, but their actions are actually often a reflection of their desire to appease gangsters and other organized crime units that may threaten their lives and property. I wonder how often this is a problem for governments around the world.

http://www.taiwantoday.tw/ct.asp?xItem=188254&ctNode=427

Trevor Habermeyer

Google’s Street View Debuts in Thailand

Google Inc. today officially unveiled its new Street View service for Thailand, releasing online a vast collection of panoramic street-level images of the country. Reading this sparked my interest for two reasons. #1. As technology continues to expand, and Google continues to take over the planet, it is interesting to see countries adapt to and adopt the new technology. As far as business travel is concerned, this should make things a lot easier on foreign travelers unfamiliar with the territory. #2) We are going to Thailand, so once we get our itinerary (hopefully soon) we can maybe check out the street view just for fun. It will be interesting to see how some of these developing countries in Asia (such as Thailand and Cambodia) have adapted to technology.

http://blogs.wsj.com/searealtime/2012/03/23/googles-street-view-service-debuts-in-thailand/?mod=WSJBlog&mod=WSJ_SEA_Blog

Ben Rindlisbacher