Economic Affairs
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About the seminar

As China's Internet population surges towards the half billion mark—double the United States—how are U.S. Internet companies faring in China? Google, Facebook, eBay, Yahoo and others have all faced challenges in China. These include external (competition, regulation/censorship) and internal (management, strategy). Can these firms find a viable position in China? Will emerging players such as Groupon fare any better? Although U.S. Internet companies have struggled, U.S. institutional investors have reaped rich rewards from stakes in leading Chinese firms such as Tencent, Baidu and Alibaba/Taobao. Is this approach a better bet than hoping that U.S. firms gain a foothold in China? If leading Chinese Internet firms continue to dominate their home market, do they stand a chance to succeed internationally including through expansion or M&A in the US?

About the Speaker

Duncan Clark is Chairman of BDA China, a company he founded in Beijing in 1994. Previously, Duncan was an investment banker with Morgan Stanley in London and Hong Kong, where he focused on telecommunications, media and technology (TMT) transactions.

He has guided BDA to become the leading consultancy servicing participants and investors in the TMT sectors in China and India. With a team of over 50 in Beijing and an office of 15 in New Delhi (opened in 2006), BDA has in recent years added to TMT an advisory capacity serving leading private equity firms investing in other fast-growing sectors in these countries such as education, retail and alternative energy.

Clark holds a B.Sc degree in economics with honors from the London School of Economics and Political Science, and currently chairs the school's alumni group in China. A UK citizen, Clark was raised in the UK, the United States and France.


Media X is the partner of this seminar.


Philippines Conference Room

Duncan Clark Visiting Scholar Speaker Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE)
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Thomas Crampton, who oversees social media strategy in the Asia-Pacific region for the marketing and communications company Ogilvy and Mather, spoke to a standing room only audience at a seminar hosted by SPRIE about how controls imposed by the Chinese government have created a vibrant and unique social media domestic ecosystem.

Daniel C. Sneider, associate director for research at Shorenstein Asian-Pacific Research Center, also shared his views on the issue of the role of the internet and social media in social and political change.

Much has been written of late about the PRC government's efforts to control and censor the internet. The government's censorship of websites is an important issue, but it is not the top priority of the country's 420 million internet users or netizens. Their top priority is to connect with other Chinese online. The internet has opened access to information for ordinary Chinese citizens in ways that were unimaginable just a few years ago. Coming from a world where information was pre-filtered by editors at state-run media, China's internet is freewheeling by comparison.

"China's government officials are the most savvy in understanding the power of social media and actively trying to shape its use," Crampton noted at the talk. Rather than eliminate social media, restrictions on foreign websites and social media have resulted in a flourishing home-grown, state-approved ecosystem in which Chinese-owned properties thrive. YouTube, Facebook, and Twitter have faced blockage in China, but their Chinese equivalents are expanding. According to the official statistics from the China Internet Network Information Center (CNNIC) , the number of Chinese netizens reached 420 million at the end of June 2010. But their patterns of use vary from those in other countries. Quoting a 2008 MTV Music Matters survey, Crampton showed a graph that young people across Asia have made a similar number of friends online and offline. Only in China, however, young people actually have more friends online than offline. This points to a convergence of the offline and online worlds, where it is less important to distinguish between what happens online from the "real world." In China, more than in many countries, social media has become deeply integrated into people's lives.

China's government officials are the most savvy in understanding the power of social media and actively trying to shape its use.

- Thomas Crampton, Ogilvy and Mather
In China, as elsewhere in Asia, local variations of internet usage are driven by language, culture, levels of economic development, and the underlying digital ecosystem. For example, rather than short videos popular on YouTube, China's Youku and Tudou are filled with longer form of content, up to 70 percent of which is professionally produced, though individual Chinese users produce and post videos too. Users in China spend up to an hour per day on these sites, compared with less than 15 minutes spent by Americans on YouTube. In the way they present programs, the Chinese sites seem more like online television stations or a replacement for digital video recorders.

Twitter vs. Sina Weibo

Crampton cited another difference between Chinese and foreign social media that is rooted in language. At first glance, Sina Weibo is a latecomer to the microblog phenomenon. Launched in 2009, just about three years after Twitter, it is by far the most popular microblogging platform in China.

Similar to Twitter, Sina Weibo allows users to post 140-character messages, and users can follow friends and find interesting comments posted by others. Small but important differences in the platform have made some say it is a Twitter clone, but better. For example, unlike Twitter, Sina Weibo allows users to post videos and photos, comment on other people's updates, and easily add comments when re-posting a friend's message.

Though mobile phones are used to send less than 20 percent of Twitter updates in the United States, nearly half of Sina Weibo's updates are sent via mobile phone. This phenomenon points to the growth of China's mobile internet, one of the biggest trends in China and Asia.

Perhaps the most striking difference between Chinese and foreign social media, however, is the length of communications expressed via microblogs in Chinese versus English. One measure is to look at what Dell Inc., a company skilled at social media, can communicate on microblogs in Chinese compared to English. Twitter holds messages to 140 characters, which is quite short in English, especially if users want to include a URL. Dell often uses its Twitter feed, @delloutlet, to promote special offers, such as this posting: "Today's Deal: Get FREE Eco-Lite Sleeve with the purchase of any Dell Outlet Insprion Mini 10 or 10v Netbook! http://bit.ly/77fUFG." This message came in at 136 characters, almost the maximum length.

Since each character in Chinese is a word, @delldirect, Dell's Chinese-language feed, can write much more using the Chinese-language Zuosa microblogging platform. As translated by Ogilvy's Beijing team, a similar message reads: "Dell's National Day Sale runs from Sept. 11 to Oct. 8. To celebrate the 60th anniversary with the motherland, Dell Home Computers is offering 6 cool gifts and deals on 10 computer models. These exciting offers will run non-stop for 4 weeks. Also, get a free upgrade to color casing and a 512MB independent graphics card, as well as other service upgrades. All offers are on a first-come, first-served basis. What are you waiting for? Act now!" Even with a message of this length-114 characters in Chinese-there is still enough space to put in a webpage link. In other words, 114 characters in Chinese translates into 434 characters in English, well beyond the text limit of a "tweet" in English. This language efficiency turns microblogging in China into a more blog-like platform.

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Thomas Crampton at the SPRIE seminar on March 16, 2011
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This colloquium will feature presentations by two visiting scholars from China. First, Dr. Huijun Liu will present research on health risks associated with gender imbalance in China. The problems of abnormal sex ratio at birth and high female infant mortality have plagued many Asian countries with a strong male preference and gender inequality. In China, these problems having lasted for more than twenty years and contributed to a serious gender imbalance in the population. As a direct consequence, “surplus men” or “forced bachelors,” are expected to increase to more than 30 million. Dr. Liu will discuss the potential health risks and other social problems likely to be exacerbated by this large-scale gender imbalance in China.

Second, Dr. Dahai Zhao will present “How Is Health Insurance Coverage Utilized among Migrant Workers in Shanghai, China?” According to the regulations of the Chinese national and Shanghai municipal governments, migrant workers employed in Shanghai should all be entitled to the Shanghai Migrant Worker Hospitalization Insurance (SMWHI) without premium and the vast majority should also have coverage through the New Rural Cooperative Medical System (NRCMS). Dr. Zhao will present results from research, conducted jointly with Dr. Wei Yu and Dr. Alan M. Garber, examining the status of the coverage and utilization of health insurance among migrant workers employed in Shanghai. Through their study, they found that a significant minority of migrant workers in Shanghai still had no health insurance, and that health insurance utilization among migrant workers was strongly limited by hospital location.

Huijun Liu is an associate professor in the Public Policy and Administration School at Xi'an Jiaotong University, China. She received her PhD in management science and engineering from the Management School of Xi'an Jiaotong University. Her main areas of research focus on gender imbalance, reproductive health, vulnerability, and social support. Her current research focuses on how gender imbalance and migration amplify the risk of HIV transmission in China. Liu has published over twenty papers in Chinese academic journals, including China Soft Science, Population and Economics, Psychological Science Advance, Collection of Women's Studies, and Modern Preventive Medicine.

Dr. Zhao is an assistant professor with the School of Public Economics and Administration at Shanghai University of Finance and Economics (SUFE), and a fellow with the Center for Health Policy at SUFE. He earned a master's degree in medicine in 2005 and a PhD in 2008, both from Fudan University, China.

Daniel and Nancy Okimoto Conference Room

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huijun.jpg PhD

Huijun Liu is an associate professor in the Public Policy and Administration School, Xi'an Jiaotong University, China. She received her PhD in management science and engineering from Management School of Xi'an Jiaotong University. Her main areas of research focuses on gender imbalance, reproductive health, vulnerability and social support. Her current research focuses on how gender imbalance and migration amplify the risk of HIV transmission in Chinese transformation society.

Liu has published over twenty papers in Chinese academic journals, which was featured in China Soft Science, Population & Economics, Psychological Science Advance, Collection of Women's Studies and Modern Preventive Medicine.

2010-2011 Visiting Scholar
Huijun Liu 2010-2011 Visiting Scholar Speaker Stanford University
Dahai Zhao Visiting Scholar at Center for Health Policy Speaker Stanford University
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