“Looming crisis for PR in China”

Or so says respected China watcher and geek David Wolf on his great blog Silicon Hutong. This post is based on the same story I referred to last week, namely the scandal of China dairy giant Mengniu using its PR agency to damage its competitors with outrageous smears.

David lists 8 PR practices in China “that, while they would be considered unethical or illegal elsewhere, are accepted practices here.” At the top of the list are the red envelopes, a topic I address in this video, followed by 7 other practices that would absolutely be considered sleazy anywhere else but China, such as paying for advertorials to ensure publications don’t write negative things about you, or reporters asking companies to pay them for not running negative stories. It’s a great list and it’s a must-read post.

One point of disagreement I have with David is the inclusion of the red envelopes with practices that are out and out unethical. I’d like to see red envelopes ended, but I don’t see them being on a par with blatant bribery. And I’ve talked with more than one Chinese reporter about them, and they don’t see it as anything sleazy, just business as usual (which doesn’t make it right). With a bribe, the reporter does what they’re paid for. With the red envelopes, you never know. I see it more as an unfortunate and obsolete custom and one that is absolutely not going away anytime soon. I counsel clients to grin and bear it, because reporters see it as their right and might simply ignore your story without it.

I realize this crosses into thorny ethical areas, muddied and grey and difficult. But again, I see it as being in a different category from a reporter threatening a company with a negative story if they aren’t paid a hefty bribe. One’s criminal, the other’s a part of the media culture, like it or not. I’m also ambivalent about item No. 2 on his list – writing favorable stories for reporters to simply cut and paste and publish. The blame in this case, in my eyes, lies with the reporter, not the PR agency. Every PR practitioner hopes the media picks up their press releases verbatim. That’s why they write the press releases in article format. I can’t blame the reporters’ laziness on the PR people.

David wants to see all of these 8 practices abolished, and I do, too; China’s PR industry will have a big cloud over it as long as they persist. Maybe the current uproar over the Mengniu scandal will force the industry to go through some retrospection that ultimately leads to change. But as with all things in China, expect that change to be implemented very, very slowly.

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Sinica podcast on China’s PR scene and public image

If you’re interested in China and the media, you have to subscribe to the Sinica podcasts over at Popup Chinese (which is also a great site for learning Chinese).

This week’s podcast was especially interesting because it’s all about China’s image, and public relations in China. It deals with two separate but topical issues, first the now notorious “Chinese professor” political ad that blew onto the scene a few days ago. If you haven’t seen it yet, watch it now.

Here’s my quick take on the ad, and then go listen to the podcast: This is an effective, well-made ad that is totally wrong on a number of levels. We don’t all work for China – not even close. Contrary to what the ad implies, China did indeed take drastic steps to stimulate its economy in the wake of the financial crisis. To imply the US and Europe borrowed and spent while China kept its purse-strings tight is simply false. I also have to criticize the ad for putting China in such a sinister, xenophobic light, delighting in an America crippled by debt and spending.

The other half of the podcast deals with a topic I touched on a couple of days ago, the darker side of PR in China as exemplified by a dairy company (through their PR agency) making up horrifying stories about their competitor, including posts by fake consumers claiming the rival’s milk had hormones that were causing children to grow breasts. And that’s just a part of it. This has become a national scandal, and I have to give the Chinese media credit for shining a spotlight on it. The podcast focuses on what makes this problem unique to China and compares it to dirty tricks that have been played by PR agencies in the West. Absolutely fascinating.

As usual with the Sinica podcasts, the conversation transcends the subject at hand to offer all kinds of great insights into China. Download and enjoy the whole thing.

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China Media Strategies gets profiled

My local paper, The Arizona Republic, has just published a profile of China Media Strategies. Funny comments, somewhat “artistic” photo of me.

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“The murky side of Chinese PR”

Forbes’ Beijing bureau chief Gady Epstein today posts on his blog a story of how some Chinese companies use public relations unethically. Not a little bit unethically, but blatantly, over the top unethically, in a way that would be literally inconceivable in the US. Here’s the gist of it:

Police are investigating whether the dairy industry leader, China Mengniu Dairy, was involved in spreading false rumors that certain milk products for children and infants, at the number two industry player, Yili Group, and a lesser-known competitor, Synutra International, caused premature sexual development, including the growth of breasts.

The story went viral this summer in China in a particularly damaging way for Synutra, whose stock took a beating. Now the head of Mengniu’s child dairy department and staffers of a Chinese PR firm that has long worked with Mengniu have been detained in the investigation into the made-up claims.

Trying to capitalize on negative news that comes out about your client is fair game. Companies in the West do it all the time. But making up the bad news out of thin air and then actively promoting the false information via fake consumers and fake blogs to ruin your competitors’ brands – well, that’s serious stuff, and I’m glad to see that many in China find it reprehensible. However, as Epstein says, this isn’t nearly as shocking a story as it deserves to be:

Disturbing, but not shocking: With the aid of some pliant members of the state media, these kinds of dirty tricks are still practiced and effective in China, part of the arsenal companies are prepared to use to bludgeon their competitors.

There’s often an anything goes, Wild Wild East sort of mentality in the China marketplace when it comes to taking on the competition. I’m happy to say that I’ve never had to deal with such a company, but I know they’re out there.

China’s media are slowly beginning to adopt best practices we take for granted in the West, and they still have a long way to go. The same with China’s PR industry, which, we need to remember, is still in its infancy. Thirty years ago there was no PR industry there. That’s no excuse for their participation in acts of slander, but it helps put into perspective how and why this sort of thing can happen.

A dog-eat-dog mentality continues to permeate the world of domestic competition in China. If you plan to compete head-on with Chinese companies, know in advance how vicious things can get.

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My interview with the Valley PR Blog

Please have a look at my interview in Phoenix’s Valley PR blog, in which I talk about what I’ve done in China, and how I dealt with the reverse culture shock of moving back to Arizona after nine years in Asia.

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The great debate over guanxi continues

One of the best and most prolific bloggers, Dan Harris over at China Law Blog, has put up a detailed post contrasting the differing views of other China bloggers on what guanxi is and how much it really matters. Dan makes reference to my own recent post on guanxi, and boils the issue down to ten basic points:

1. It takes time to cultivate.
2. It is not a substitute for good business sense.
3. It does not make a bad business deal a good one.
4. It should not be used as a way to skirt the law.
5. It makes sense to have good relationships with people in China, just as it makes sense to have good relationships with people everywhere.
6. Guanxi does sometimes make things go more smoothly.
7. None of us have any real clue as to whether guanxi should or should not be capitalized when written in English.
8. Most who claim to have serious guanxi do not.
9. An even greater percentage of foreigners who claim to have serious guanxi do not.
10. The value of guanxi varies from industry to industry. For instance, I understand that guanxi is critical to the media business in China and to securing government contracts; it is of virtually no importance in getting your trademark or WFOE registered in China.

There’s nothing there that I disagree with. No. 6 is key; I’ve seen what my Chinese colleagues with good guanxi with certain reporters can do (like get stories changed or killed pronto). So while guanxi gets over-hyped all the time, that doesn’t mean it isn’t real. But if you think guanxi will see you through every business challenge you face in China, you’ll be disappointed. Dan methodically proves just how risky it can be to look to guanxi as a panacea.

Wherever you do business you want to cultivate strong relationships (duh). And in China, where transparency can often be lacking and where foreign businesses face unique challenges when it comes to access (especially with the government), guanxi needs to be at least a part of your business plan.

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China’s mystifying holiday system

Last week I arrived in Beijing after a few days in Hangzhou and met up with some old colleagues, at our old office. It was a Saturday, but they were all working – the price they had to pay for the three-day Mid-Autumn Festival holiday. Get three weekdays off, but pay back one of those days by working on the weekend. One Chinese colleague lashed out at the government for what she called the world’s most irrational holiday system.

I was delighted to see a piece in yesterday’s NY Times that captures just how strange a system it is.

Beyond the frustration of overloaded transportation and jam-packed tourist attractions, there is the problem of figuring out what has become a decidedly confusing rubric of work and vacation days.

According to a government-mandated holiday schedule that took effect in 2008, workers were given three consecutive days off last week for the Mid-Autumn Festival, but they were required to make up two of those by working the Saturday and Sunday on either end of the holiday.

This give-and-take arrangement is then repeated for the National Day holiday, with employees enjoying seven straight days off — Friday through Oct. 7 — except only three of those are official free days. (The four “gifted days” will be made up over the weekends before and after.)

If you have trouble with the math, you are in good company…. A cheat sheet that has been making the rounds on the Internet sums up the pattern as such, beginning Sept. 18: One day off, three days on, three days off, six days on, seven days off, two days on, one day off.

Confusion aside, many Chinese resent having to pay back some of their vacation days.

The article does a good job of explaining how China’s “Golden Weeks” got started and how they’re being changed, and why so many Chinese feel exasperated with such a complicated mess.

I first experienced Golden Week-induced culture shock back in October 2002, and it never really went away. Being forced to work on weekends to make up for mandatory holidays was something I’d never fully get used to.

If you’re planning events in China, always be sure to take these holidays into account. During the Golden Weeks China essentially shuts down and there’s no point in even thinking about holding a media event during or even near to these holidays.

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Chinese photo opportunity

I totally love this post by the great PR guru Lou Hoffman. This is a gob-smacking example of a wasted PR opportunity. It’s the equivalent of the Met announcing the acquisition of a great painting, and sending out a photo of the museum’s board of directors, without including a shot of the masterpiece itself.

As Lou says, PR is all about story telling, and nothing helps make a story more real and tangible than a good photo. Especially for a story like this, all about wrapping cars in China – I mean, what could be more visual than that? Whoever decided to put out a photo of the executives, with no photo of an actual wrapped car, was definitely asleep at the wheel.

Be sure to read the post and look at the photos. Unbelievable.

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Censored

I’m in the gorgeous city of Hangzhou, a candidate for most beautiful place on the entire planet. The vast West Lake surrounded by sloping hills and, further back, mountain ranges, is something you can just sit and stare at for hours and feel you’re as close to heaven as it gets. There’s a Chinese saying, Above there’s heaven, below there’s Hangzhou. That’s about right.

I haven’t been active on Facebook or Twitter for two weeks now, mainly because both are blocked by the Chinese government, and even using Viscosity, an industrial strength VPN, I was having trouble getting access.

A censored Internet is a source of culture shock that you never really get used to. Entire blog hosting domains such as blogspot are blocked, as are Facebook, Twitter, countless news sites and many popular blogs, whether written in Chinese or English. Some refer to this phenomenon as the Great Firewall of China, others as the Net Nanny, determined to handpick what the Chinese people can read and where they can congregate to socialize. Once you give the Chinese an open forum that the government can’t control, like Facebook, the Chinese Communist Party seems to get antsy.

The Nanny is fickle and inscrutable; one never knows exactly why a site is available one day and blocked the next. And often sites that were blocked for years, like the BBC News and Wikipedia, suddenly become available again.

On the other hand, there’s a lot of content on China’s Internet that is provocative and critical of the government. But they can only go so far. Criticizing local officials is okay. When you turn the guns on the central government in Beijing, you are waving a red flag at the Net Nanny.

For Westerners, this is an aberration and something to denounce unequivocally. But it’s important that we see the censorship through the eyes of the Chinese people. To us, the glass appears half-empty – the Internet’s very purpose is destroyed by censorship, and it’s unfair that the Chinese are deprived of so much information. The Chinese, on the other hand, see the glass as more than half full. Much more. To them, more information than ever before is at their fingertips and they are grateful for what they have. Most brush off the blockages as a nuisance. So don’t feel sory for the Chinese people suffering under the oppression of censorship. Most Chinese simply don’t see it that way. And that’s not to excuse the censorship; it is abhorrent, but we hve to see it from all sides.

If you’re coming to China for the first time and you want full access to the Internet go here and pay the $69 or so for Viscosity. There are free VPNs out there but none seem to be as dependable and secure. But as I said, I’ve still had problems getting onto certain sites, and some hotels in China seem to be VPN-resistant. So don’t be surprised by the frustration of not being able to go exactly where you want to on China’s Internet. You’re not in Kansas anymore.

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You know you’re back in China….

I’m having serious Internet issues, and to those of you who’ve been sending me messages on both Twitter and Facebook I need to apologize for the silence (and I hope you’re reading this): despite my using industrial-strength VPN Witopia I cannot get onto either FB or Twitter. I can get on all the other blocked sites I tried, including my personal blog, with no problem. Friends tell me they’re not having the same problem with Witopia so I’m guessing it’s an issue with my hotel, if that’s possible.

Whenever I visit China after a few months in the States the pattern is the same: Things here are so shiny and new and up-to-the-minute, I forget state control permeates much (or at least some) of what you can and cannot do, like freely surf the Internet. So minutes after I arrived last night I set up my computer, jumped to Facebook, and zam, the great Net Nanny reminded me I’m not in Arizona anymore.

For business travelers new to China I think this has to be one of the rudest sources of culture shock, as free Internet access is something you take totally for granted everywhere else. You get used to it, but stiil, each time I return it’s a temporary jolt. China’s censorship mechanism also directly impacts the media campaign you’re planning in China, and must be taken into account on multiple levels – the content you intend to distribute and the media you’ll be using. It’s wonderful to be back in China, but the Nanny is a perennial thorn in one’s side.

So to repeat, if you tried to contact me by Twitter or FB messages, please understand I can’t access either right now. Please try email. Thanks.

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