Tuesday, November 21, 2006

Zhongguancun Dissertation Published

Taking the spotlight for myself, my dissertation on Zhongguancun has finally been published. Hooray!

Check it out at UMI (click "Continue").

Very 牛X, if I do say so myself.

BTW, if you purchase a copy, all the pictures are indistinguishable because the copies are in black and white, not grey-scale. If you purchase a copy, email me with your address and I will send you paper copies of pages with pictures.

Sunday, October 29, 2006

Zhongguancun 2006 Six Month Economic Statistics (Parks)

Zhongguancun Science and Technology Zone
Management Committee

July 24, 2006

(Translated and adopted from Chinese, found at ZGC official government website, here, on October 29, 2006)

Zhongguancun Science and Technology Zone is composed of seven individual parks: Haidian Park, Fengtai Park, Changping Park, Electronics City, Yizhuang Park, Desheng Park, and Jianxiang Park. The following chart gives the breakdown of revenue by park.

Zhongguancun Science & Technology Zone 2006, January-June (Half Year) Economic Development Statistics (By Park)
























2006 1/2 Year(% ZGC Revenue)2006 1/2 Year(Revenue in billion yuan)2005 1/2 Year(Revenue in billion yuan)
Haidian Park48.4124.393.2
Fengtai Park11.128.522.3
Changping Park6.717.212.5
Electronics City8.221.018.5
Yizhuang Park24.863.839.1
Desheng Park0.51.30.8
Jianxiang Park0.20.60.4
Total100.0256.6187.2

Zhongguancun 2006 Economic Statistics

Zhongguancun Science and Technology Zone
Management Committee

July 24, 2006

(Translated and adopted from Chinese, found at ZGC official government website, here, on October 29, 2006)

In the first half of the 2006 year, the total economy of the Zhongguancun Science and Technology Zone continued its high-speed, steady growth. The rate of growth of industrial production was relatively large and rate of growth of created export reserves slowed a little. There was steady growth in the amount of taxes paid, while newly recognized enterprises had clear decline. The entire economic trend was stable.

Zhongguancun Science & Technology Zone 2006, January-June (Half Year) Economic Statistics



2006 (1st Half)2005 (1st Half)% Increase
Newly Recognized Enterprises19162236-15.3
Revenue (billion yuan)256.6187.232.6
Total Industrial Production Value (billion yuan)141.7102.933.6
Taxes Paid (billion yuan)9.46.624.8
Exports Created (billion USD)9.05.468.1


The structure of total revenue is worthy of note. Sales of products accounted for 162.6 billion yuan or 63.4% of the total. Technology revenue was 35.3 billion yuan or 13.7% of total revenue. And other revenue accounted for 58.7 billion yuan or 22.9% of total revenue.

Thursday, September 07, 2006

New Oriental 新东方 IPO, Take Two

Of course, New Oriental sells dreams along with solid English teaching to children, college students, and young professionals. One of the major dreams that New Oriental peddles is chuguo 出国 or “leaving the country”, usually for New Zealand or Australia. Indeed, English education has this as one of its primary goals (and the ultimate endpoint, improving the self, making money, and becoming successful, is still achieved with chuguo). Many students, including one of my friends from 2000, swallow this dream whole and take classes, buy supplies, and pay tuition to New Oriental to achieve the dream. My friend from 2000 indeed did make it to New Zealand, although instead of a rigorous overseas education, he found a party-like atmosphere where rich children from China went to sow their oats.

A coin has two sides and education is a commodity, as difficult as it is to make teaching, learning, testing, and studying into a thing, much less a product or commodity. But that’s my two cents.

New Oriental Vignette

Along the Fourth Ring Road, to the east of Zhongguancun Avenue, is an enterprise that some of my friends only half-jokingly referred to as the most successful enterprise in Zhongguancun: New Oriental English-language school. On an otherwise inauspicious day in May, 2004, some poverty-line migrants, as they often do, were selling pirated English-language teaching and testing materials on bed sheets in front of New Oriental. As I passed the school I saw a sudden movement -- one of migrants grabbed his blanket and ran down a nearby alleyway. The others quickly followed. One unlucky migrant was too slow: several dozen CD-ROMs and teaching books spilled on the ground. He did not stop to retrieve them. Next, a police car and van pulled up, out of which four police officers emerged. They looked around, picked up the pirated CD-ROMs and books, and put them in the van.

Wondering what would happen next, I stopped and stood in front of the school. The police officers looked around and milled about for a few minutes. Then they drove off. Moments later, a young man standing in front of the school went to the corner of the alleyway, stood on top of a street post, and motioned down the alley. Minutes later, the migrants returned to the front of New Oriental to continue plying their pirated wares.

While piracy is ubiquitous in Zhongguancun, I argue here and elsewhere that neither ubiquity nor criminality is piracy’s greatest significance. Instead, one could even view these education material-peddling migrants as promulgaters of pedagogy.

I thought this vignette might be relevant to write about in light of today’s happenings.

新东方 (Xin Dongfang) or “New Oriental” Lists on NYSE

New Oriental is, according to Zhongguancun technocrati, the most successful enterprise in Zhongguancun. This is partially a joke since the most well-known companies in Zhongguancun are all technology companies: Sina, Lenovo, UFIDA, Founder. Further, Zhongguancun is a high-technology development zone, so the fact that New Oriental, an educational company that focuses on English, is so profitable is a little embarrassing but eminently understandable.

Peking University, Tsinghua University, Renmin University, and other famous universities, as well as national academies such as China Academy of Sciences and China Academy of Agricultural Sciences, are all located in Zhongguancun. The need for extracurricular education, such as that offered by New Oriental on nights and weekends, is one way to stay ahead at these education institutes.

Further, parents, with disposable income and no place to spend it, focus their financial might on singletons?the only children who have resulted from decades of the one-child, one-family policy. Singletons and New Oriental are another happy synergy, where children learn English and the school plies its wares.

Another level is migrants. Migrants come to Beijing, and to Zhongguancun in particular, for a variety of reasons. Mostly, it is to improve their lives, make some money to send back some, and become successful. One way to improve and succeed is to study English (or accounting). Hence, many migrants who are hesitant to spend their paltry pittances on consumer goods will instead opt for New Oriental hoping for a skill that will push them up and help them succeed.

All of these levels converge in Zhongguancun. Hence, despite the rise and fall of high-tech companies, the Internet wave, portals, and blogs, the one constant in Zhongguancun has been New Oriental. After so many years, a listing on the NYSE (and not tech-heavy Nasdaq) seems appropriate. New Oriental is reaching places that Sina and Lenovo perhaps cannot.

In any case, I welcome another Zhongguancun enterprise to the world.

Zhongguancun Enterprise Strikes Again

This morning, the most profitable, and some would say the most successful, enterprise in Zhongguancun listed on the New York Stock Exchange. The reasons for this, and a story about New Oriental piracy are forthcoming this evening… Stay tuned.

Friday, July 28, 2006

Article on Zhongguancun Published

After a long wait, I have finally published an article on Zhongguancun. It is not free, but fairly priced. If you have disposable income, feel free to purchase.

The article, "Technology as Practice in the Silicon Valley of China," is not focused solely on Zhongguancun. Instead it is about technology, and how viewing technology at the level of everyday life (the location of ethnography) yields insights into how technology comes to exist. I argue that companies and markets are necessary for technology to occur. In turn, technology's existence implies company and market.

This may seem to be a very specific definition of technology. However, I believe it to be general. For example, anthropologist Levi-Strauss analyzes a club that is used to hunt fish. The intricate, particular design and existence of the club is a objectification of the practice of killing fish (solving a problem) that comes into existence as a result of company (the people who make clubs and can make a living off that) and market (the demand for eating fish).

As you can see, this article is a little theoretical, and perhaps not suited to everyone. It does take place in Zhongguancun, and the three technology practices that I analyze come from my 2 years of fieldwork in Zhongguancun. In the article, I give some context to my fieldwork and describe the companies where I made observations. Technology, using my definition, is a key component of how Zhongguancun serves as a context for everyday life. Zhongguancun is also inseparable from technology practices that make it the Silicon Valley of China.

Eppur si mouve.

http://theuniversitypressjournals.cgpublisher.com/product/pub.42/prod.102

Wednesday, June 21, 2006

Newly Minted Ph.D. Returns from Beijing-Changzhou-Shanghai Trip

In late May and early June, 2006, I returned to visit all my old friends from Zhongguancun, the Silicon Valley of China, where I did the fieldwork that earned me a Ph.D. in anthropology of University of California, Santa Cruz, in cultural anthropology on June 16, 2006 [obligatory pat on own back].

Of more interest than me, of course, were the people and what they were doing. And, given the hyper-speed of life in China's city of cities (Beijing) and the hyper-ferocity of competition in a nominally socialist market economy, my experiences were fast and furious.

Upon returning to the IT/electronics markets of Zhongguancun to visit people from the Hilon photocopier company that I worked with for 6 months in 2004, I learned that the original company composed of 8 people had deconstructed in the literal sense. To visit my friends, I had to visit four different companies. The original company had met the fate of so many companies in Zhongguancun -- dissolution based on divergent interests and a sense that one can make more money if one goes out on one's own (despite the fact that the perennial topic of conversation among Zhongguancun IT/electronics markets bosses is the microscopic profit margins on sales).

One of the former members of the company I worked with in the markets, who I shall call Young Guo, is a fax machine specialist. I have seen him completely dissemble a laser fax machine in search of a problem. His hands are dirty, his manners uncouth, and his language peppered with expletives. But he is a dear friend and key source for the inner workings of the IT/electronics markets.

Young Guo had moved to Dinghao Electronics Market and rented a 6 square meter, glass-enclosed shop on the second floor underground at Dinghao. He continued to sell photocopiers, fax machines, and perform service and maintenance, as he had in the former company.

Besides catching up on the two years that had elapsed since we had worked to together, I had sought out Young Guo with a goal: I had a Cingular Nokia phone that I wanted to use in China. Who can de-encrypt this phone, I asked, so I can use it in China. Apparently, phones sold in the U.S. only work in two frequencies, and they need to be de-encrypted with a special device to work in China. If it could be done and had to do with IT or electronics, I knew, it could be done in Zhongguancun's IT/electronics markets.

Young Guo's neighbor, it turns out, could provide the service (not herself, mind you, but she had a connection with another guy who could). Before she de-encrypted, she warned me that there was a possibility that the phone might simply short-circuit. Since I had no other use for the phone, I was willing to accept the risk.

When Young Guo and I returned from lunch, the neighbor approached beaming with success. The phone de-encryption had worked! She then asked for payment: 80 yuan (10 USD). I paid it.

In a few minutes, Young Guo led me away to smoke and chat with a few friends in another neighboring store. Young Guo left to check on his store and then returned with a smile on his face. "She thought you were a customer," he grinned. "She tried to give me 20 yuan as a profit." Young Guo explained that since the woman thought I was just a friendly customer, not an ethnographic insider, she should make a profit for Young Guo and then give it to him -- her fee was waived for similar fees made when she introduced customers to Young Guo and he paid her part of the profit.

The woman insisted on keeping the 20 yuan so Young Guo tried to give me 20 yuan. I refused. Although I am sufficiently worried about losing 20 yuan, I did not think it important enough to have Young Guo pay it out of his pocket. I chalked it up to "tuition". At least it would make a good blog entry, I reasoned.

In the IT/electronics markets, life, exchange, reciprocity, and technology all go on through the social forms of entrepreneurs and companies. This is modern China, and especially urban, IT/electronics market China. But these relationships, between neighboring stores, stores and customers, and de-encryption devices, go beyond a particular time and place. I would even hypothesize their existence throughout China, even its villages and hinterlands.

And by the way, I didn't see the state in these markets. So much for totalitarianism.

Tuesday, May 23, 2006

How Lenovo is Like Microsoft and Dell

According to several managers I know in Zhongguancun, they are running a Linux software company that is mostly funded by China's government in order to create products (such as word processing software, operating systems) and services (such as training). Yet most entrepreneurs in Zhongguancun and, indeed, in China do not like this MO. Why? China's entrepreneurs love the market. The market, not the government, should decide who makes money, what is a good product, and the trends in industry.

It is quite comical, then, that Representative Frank Wolf (a Republican no less), Larry Wortzel, and Michael Wessel have determined that using Lenovo's computers in the State Department is unwise, due to potential espionage concerns. The reason the State Department chose Lenovo in the first place is that there is a competitive bid process, and Lenovo's computers were the cheapest, the fastest, and the best value. In times of budget deficit and current account deficit (not to mention trade deficit), the State Department should be commended. But it is being condemned.

Back to China. Why would the government fund its own Linux-based operating system and programs? Among many reasons, one is that there are existing fears about Microsoft and Dell, both American companies, that their software code and computers, respectively, contain secret code and hardware that will email secrets to Washington. What a far-fetched, feckless fear, I used to think.

As much as I relish being able to excoriate a member of the Republican party, it is disconcerting that Representative Wolf is so ready to capitulate to xenophobic fears. The market is not a panacea. Zhongguancun entrepreneurs' faith in competition and free market values is certainly idealistic. Yet, as one entrepreneur I interviewed once told me, "the government is a little slow. Making a PC these days is like making a TV -- it is not technology. If the government knew that, they wouldn't place so much importance on Lenovo." At the time, he referred to China. Now, I refer to the U.S.

Friday, March 10, 2006

Zhongguancun Zone 2005 Economic Indicators

Zhongguancun Science & Technology Zone 2005 Summary of Economic Development

Department of Science & Technology
Torch High Technology Industry Development Center

February 27, 2006

http://www.chinatorch.gov.cn/dtxw/dtxw_News_info_26421.aspx

2005 was the year after Zhongguancun Science & Technology Zone “Five Year Phase of Taking the Platform.” Various construction projects of the Zone achieved substantial results: economic development grew at a fast yet stable rate; in total economic quantity, indicators doubled from 2001; revenue in technology-industry-trade broke 480 billion yuan; industrial production and foreign currency increased mightily; there was a steady increase in the amount of taxes paid; the development trends in key industries was stable; core enterprises had a positive total development form; and there was a beneficial increase in key projects of the central area.

Zhongguancun Science& Technology Zone 2005 Economic Development Status
(Preliminary Statistics)


20052004% Increase
Newly Recognized Enterprises4,4344,2663.9
Revenue (billion yuan)481.9369.230.5
Total Industrial Production Value (billion yuan)255.2187.636.0
Taxes Paid (billion yuan)16.814.218.1
Exports Created (billion USD)9.05.468.1



Separated according to Zhongguancun’s individual Parks, Haidian Park had an estimated total revenue of 248.5 billion yuan, Fengtai Park a total revenue of 60.0 billion yuan, Changping Yuan an estimated total revenue of 23.7 billion yuan, Electronics City an estimated total revenue of 41.0 billion yuan, Yizhuang an estimated revenue of 96.5 billion yuan, Desheng Park 2.22 billion yuan, and Jianxiang Park 1.0 billion yuan. Compared to last year, aside from Changping Park whose growth rate declined to 4.8%, other Parks all grew at a rate of 18% or higher, and Yizhuang Science and Technology Park grew at the highest rate: 97.1%.

Thursday, February 16, 2006

Doesn't It Seem Strange?

The U.S. Congress is holding hearings on Google, Yahoo, and MSN aiding the Chinese government in the suppression of human rights.

But on January 25, 2006, an article in the New York Times reported that Google is refusing to execute a subpoena by the U.S. government to surveil the Internet searches of U.S. citizens.

The justification given, by both U.S. and China governments, is that they are trying to find information on illegal activities, including terrorism and pornography, to ensure the stability and security of its citizens. What are the differences?

In the U.S., terrorism is defined mostly as those related to al Qaeda, which attacked the United States by hijacking airplanes.

In China, terrorism is defined mostly as those related to Falungong, which is a cult that tricks its followers into giving up their money, any sort of health care, and even into self-immolation.

Both governments want to protect the safety and security of their citizens. They do it by filtering web sites and search results. That is right, the U.S. government also blocks web sites if it deems those sites to violate the laws of the U.S. government, including not only terrorists but intellectual property scofflaws.

Why should "free speech" be able to trump the human rights to safety and security? The publication of cartoons of Prophet Muhammad has caused several people to die, while others have been injured. Perhaps the publishers did not know this would be the result. Hence they are not technically liable for the results. But it is clear that publication is not necessarily a right guaranteed under "free speech". In fact, the New York Times did not publish the cartoons. Perhaps Congress will convene a hearing to investigate why the Times censored its reporting? Unlikely.

There is something more going on in the House Subcommittee on Africa, Global Human Rights and International Operations, lead by Christopher Smith. I implore Congress to stop these hearings. Instead, criticize the very fact of surveillance and filtering, and investigate the U.S. Justice Department and the myriad local police forces that have used the Internet to put people in jail. There are more than a few.

Why should Google, Yahoo, and Microsoft be held at fault for complying with the same exact laws that exist in both China and the U.S. -- the right for society to be free from intimidation, violence, and attack?

Wednesday, February 15, 2006

Hypocrisy of Chris Smith

In the New York Times today, an article reported that Congress, and specifically the House, is excoriating tech companies Google, Yahoo, Microsoft, and Cisco for their business operations in China.

From my perspective, I wonder why it is that most mp3 files, movies, and software can be distributed freely over the internet in China but not in the U.S. Those sites in China, infringing on copyrights of the record industry, Hollywood, and Silicon Valley (among others), are frequently blocked by the U.S. government. Yup, your right to access free content on the internet is restricted not in China but in the U.S. Is this a violation of your human rights?

The companies that go to China are bridging a divide. Gaining access to China, remember, only occurred in the past 25 years.

When I lived in China in 2000, the New York Times was blocked. Then, one day, it wasn't. People in China can and do read about news from the U.S. They know much more about current events in the U.S. then we do about events over there. They also know about censorship.

I understand the argument that "freedom of expression" is a fundamental right in the U.S. Indeed, without it, I might not be able to write this weblog. However, in China, it is not a fundamental right. This is not a human rights question, but a question of the relation between ideal and real.

Schooling and health care are universal human rights. But many people in the U.S. do not have health care. Does that mean the U.S. government is violating our human rights? If I have to work after high school instead of going to college in order to pay for food and living expenses, is that a violation of my human rights by the U.S. government?

In China, many pornographic and cult websites are blocked. Most news sites are not. Does this make a difference? Doesn't it matter what is blocked? Falungong is legally a (terrorist) cult in China, so its websites are blocked. Is this unreasonable?

In China, everyone knows the law is not to openly criticize the government in print, since everyone does it in daily conversation everyday (if you don't believe it, learn Chinese, go to Beijing, and take a few cab rides -- there are quite a few disgruntled cabbies). When a blogger violates this law, he/she must pay the price, just as anyone else does.

In reality, media changes nothing. The law is still the law.

If the House of Representatives wants to challenge Chinese law, that is fine. But why on earth are Google, Yahoo, Microsoft, and Cisco being raked over the coals? Aren't we violating their (human) right to do business?

Sunday, February 05, 2006

Superbowl Halftime

First, go Sprint. Halftime show brought to you by Sprint (together with Nextel). Buy a cell phone!

Also, I created a Chen Chunxian entry at Wikipedia. Check it out if you get a chance.

Professor Chen was an amazing person. We all know about Liu Chuanzhi, one of the founders and current Chairman of Lenovo. But Liu Chuanzhi walked down the road blazed by the late Professor Chen in 1980. Without him, Liu Chuanzhi would still be trying to determine who to promote in the cadre department of the (China) Academy of Sciences.

I think it would be worthwhile to create a Chen Chunxian monument in Zhongguancun -- probably in front of Hilon Market, the busiest market in Zhongguancun.

I met Professor Chen on October 26, 2003. Professor Chen passed away on August 11, 2004. Perhaps I was the last foreigner to visit him. Perhaps Professor Chen created the idea that high-tech, technology, was a project aimed to get science out of the lab and into people's hands. Professor Chen created the idea that a privately-run enterprise in China could use scientists to make money. Making money put technology on the street, with all the civil society and life-improvement consequences that therewith.

I will miss him.

No Negative News

I just wanted to report that there is no negative news from China today.

Perhaps it is a general trend in news reporting, or simply the nature of news itself, but the vast majority of news I get about China these days (and for the past 5 years) is negative. I do not question the "objectivity" of reporting, just the selection of topics. The site I get a lot of China stuff from is China Digital Times. Check it out for daily emails on China-related reports in the media. But let's think a little before we report another peasant uprising.

In one of the best classes I ever took, Maria Lepowsky taught us about "Anthropology by Women" (my emphasis). Although the class was 30-3 female-male, the focus was not on feminism per se, but on women: what women anthropologists have done, their influence in the field. Focusing on women is a choice of topic. Feminism, properly speaking, attacks domination and defines mainstream institutions as patriarchical. Instead, in Lepowsky's class at the University of Wisconsin, we chose to study the work of women.

In Zhongguancun, a million wonderful things happen everyday. Computers are assembled, migrants learn technical skills to fix photocopiers, the local government assists new start-up companies, and people live their lives. Most of them are happy. There is no ominous specter looming over everything.

Of course, Zhongguancun is not the countryside, which is the new "darling" of Western media reports on China. But Zhongguancun is surrounded by the countryside. In my travails in and around Zhongguancun, I had occasion to visit the countryside many times. What I encountered was not anger over land grabs or vitriol at the government. Instead, people yearned for a bigger piece of the pie. At the same time, countryfolk are extremely cognizant that life in China today is better, far better, than it was in the past.

The point of this post is only to draw attention to the fact that all the news out of China today is extremely negative. Perhaps happy peasants are not very interesting. But they far outnumber the unhappy ones. Is there a motive in reporting the bad rather than the good?