Live 'Vining a U.S.-China Videoconference -- It's Here!

The event is just beginning. On the screen behind the panelists, you can see the live video feed from SIAS University in China.

Okay, guys, I am here, and we're about to begin. Everyone has filed in and we have a decent crowd for the event. Stay tuned here for future updates -- the event is beginning in just a few minutes.

Update 1 - 7:33

We're up! The President of Whittier College, Dr. Herzeberger, is introducing the event.

Update 2 - 7:36

The President of the school has just introduced the American panelists. Now Dr. Duran, of Whittier College, is welcoming us to the event.

Dr. Chen, organizer on the Chinese side, in China is now speaking. "There are more than three hundred students, professors, businessmen, and politicians here for this event in China"

Update 3 - 7:40

Dr. Chen is introducing the Chinese panelists:

- Sherry Liu: She has 11 years' experience working with Motorola in China.

- Song Jun: Leading environmental activist for the private sector in China; led many environmental changes in northwestern China

- Alex Liu: Started the largest hair company in China; "and he has fake hair!" ha!

- Ms. Lubilie: Organized many international conferences, director of a board for SIAS University

Update 4 - 7:42

Richard M. Nixon, Whittier College alumnus, changed the world by visiting China and helping open China.

This is the first time we have had a live videolink at Whittier College, and partnered with such a prestigious institution.

Dr. George DaRoza of WC is introducing the event in Mandarin.

Update 5 - 7:45

Dr. Duran is introducing the American panelists:

- Tony Liu: Attorney, and is key in putting together many U.S.-China joint ventures. He will be addressing a question on intellectual property rights

- Joy Kovaleski: Founder of Fun Toys Inc., graduate of UC Berkeley Haas School of business. Has 25 years of experience doing business in China. She will be addressing the recent quality problems of products sourced to China

- Mike Saxon: Founder and heavily involved for more than 20 years doing business in China, and current owner of 4 ventures in China.

Update 6 - 7:50

The keynote speaker, Ed Shannon, founder of Santa Fe Drilling Co., one of the first companies to do business in China, is now taking the stage.

"My present claim to fame is being Ruth Shannon's husband."

"We were known for doing drilling in remote and hard to get to areas; the Chinese government heard that we did this work. The Chinese gov. suspected there was oil in a remote desert near the Russian border. They sent a seismologist and he never came back, so in 1978, the Chinese gov. invited us to make a presentation to the PRC on how we could drill there.

"We told them that we wanted to make a profit. The PRC didn't quite understand this. [Laughter} It took two weeks to hash out a deal.

Update 7 - 8:01

The first Chinese panelist, Sherry Hue, is now speaking:

"I wish to comment on current U.S.-China trade.

"Thirty years ago, Nixon went to China, and since, China has changed from a country of isolation to a country with a robust economy, a more open political system, and is becoming more powerfully. China's entering into the W.T.O. marked another event in China's integration into the world.

"China and U.S.'s economies are intricately linked. Hong Kong alone is the U.S.'s third largest export partner; U.S. exports to China have doubled since 2001.

"China's economic growth is helping China move toward a more open political system. However, it has created new problems in evironmental disasters. The key word in China today is "sustainability." With global warming, this is they key issue for China and the U.S. The Chinese government is trying to move toward economic sustainability, to create a balanced, harmonious society, enhance its political and legal system, and integrate into the world.

"Sustained, harmonious economic relations between the U.S. and China are paramount. Politicians on both sides must collaborate to move toward a more sustainable relationship.

"I am very optimistic about the future. Thank you."

Update 8 - 8:10

Joy Kovaleski:

"China has led toy manufacturing for years, but there are issues in this industry for the future.

"The first issue is labor. Demand for labor in Shenzen has increased incredibly. Workers there are more able to choose better working conditions. Moreover, the one-child policy in China is creating a labor shortage in Southern China.

"Regulation and oversight in employment in China will increase the living standards, but also increase export costs. The gov. plans to raise the minimum wage and create mandatory health coverage for workers. This will increase their disposable income, and thus boost China's economy, but will increase the cost of exports. I believe China is trying to decrease exports so they can focus on their own economy.

"Many factories that rely on low-wage workers are moving Western into China to find more low-wage workers. You will see some companies moving to Vietnam for this same reason.

"The Chinese government wants to remove subsidies for investments; I think this will increase prices of products further.

"Floating the Chinese currency will more balance out the U.S.-China trade deficit.

"These factors have worked to increase cost of toy products, which the U.S. will see soon."

Update 9 - 8:15

A Chinese panelist is speaking now through a translator.

"We have many things in common. The U.S. and China are the fastest resource-consuming economies, and number 1 and 2 greenhouse gas emitters; thus, China and the U.S. have the most responsibility to help improve the government.

"Environmental legislation in China is not in good condition; people do not follow the law. In this area, China is behind the U.S. Environmental technology corporations must develop innovations to help the environmental conditions of China.

"I sincerely believe that we must work together to help better the environment. Thank you."

Update 10 - 8:20

Mike Saxon is now speaking:

"To figure out the future, we need to see what happened in the past.

"20 years ago, the U.S. was the manufacturing capital of the world; in less than 20 years, we have become a country that manufactures barely anything.

"China's labor cost advantage, which was 10-1, built up their manufacturing base. Their underemployed economy attracted many companies to China for manufacturing.

"As this happened, people in the rural areas flocked to the cities. The amount of people migrating was more than the entire U.S. population.

"As China's labor costs increase, many manufacturing jobs will move from China to other parts of the world.

"China's own culture may hurt them in the future. Within 6-7 years, we will see a big turnaround in who is doing business with China.

Update 11 - 8:25

Jerry Jubille is now speaking from China:

"At the heart of most people's concerns with China is intellectual property rights. This issue complicates and delays investments in China.

"There are several issues connected to IP. While China has sufficient existing laws to comply with all international standards, there is a gap between the law and the enforcement of it. Laws are not equally and uniformly applied. Remarkable progress has been made since China's entrance into the W.T.O. The Chinese gov. is increasing punishments for violators, which is increasing efficiency."

Update 12 - 8:30

Tony Liu, U.S. panelist, is now speaking:

"My biggest concern is how can we protect our IP and other rights while doing business in China? While I think China has done a very good job in making laws to do so, their enforcement has been slow; I do know, though, they are improving rapidly."

Update 13 - 8:35

A Chinese panelist is now speaking:

"Outsourcing is not new at all. The CEO of Boeing said that Boeing is no longer a plane manufacturer, but a design company; Mercedes has said they will not manufacture C-class cars; IBM does not manufacture computers -- Lenovo does. What are they doing? Outsourcing.

"Friedman says that outsourcing is contracting with another company to do work for them. In my personal experience, outsourcing is to ask someone else to do a part of your work better, faster, and more professionally for a lower cost.

"In China, outsourcing is focused on manufacturing and services, including information technology and software development.

"In 2005 the business volume of outsourcing for software develop. was 925 million dollars; in 2006, that figure reached 1.3 billion dollars. it is estimated that by 2010 it will reach 7 billion dollars.

"I think that in China, labor is not only cheap, but we also have sufficient skills to manufacture these products, and I think this is why many people outsource manufacturing to China.

"My company was a joint-venture in 1993. We had 300 workers then, and now we have 3,000 employees.

"We cannot neglect the problems of outsourcing. One problem is pollution. In past years, most of the outsourcing industry was focused on manufacturing, which has cost air and water pollution. I believe in the future China will select projects for outsourcing, which will include more high technology and environmentally-friendly projects. They will not take all as before.

"I also believe China will go to other developing nations to outsource our projects to them to increase our profit. I am very positive about the future of U.S. and China relations. Thank you all."

Update 14 - 8:46

Sorry all: for the next few minutes, I will be busy filtering audience questions in. Please bear with me.

Update 15 - 8:56

A Chinese speaker is answering the question "What advice do you have for U.S. businesses doing business in China?"

Her response: "Know the policies and regulations of China. Keep up with changes in laws. If you have the right product and it fits into the trend, it will make it easier for you.

Having the right Chinese business partner is paramount. With my experience with Motorola, I have helped set up more than 10 joint-ventures.

Do you have the right technology for China? The right licensing model taken care of?

People are the key asset for a company. Without the right people, you are going to fail. In advising U.S. businesses in China for 11 years, I have seen a tremendous increase in the quality of Chinese workers as education increases here."

Update 16 - 9:00

To Tony Liu: "How can U.S. businesses protect IP in China?"

Answer: "Need to know how to minimize the risk of proprietary information. Protecting IP relies on your Chinese partner. The responsibility is on their management team.

"You must closely monitor information flow that relates to IP and who will be using it. Have due dilligence with who you will be working with, too."

Update 17 - 9:09

Mike Saxon is speaking on how U.S. businesses can better do business there.

"We need to understand their culture. The Chinese have different customs and ethics than us, and to more effectively do business, we need to understand them.

"We also need to know how to do what we are asking of them better than they do."

Update 18 - 9:12

A Chinese panelist is now speaking on Mattel and their recalling of Chinese-made products.

"Mattel has now apologized to the Chinese gov. for recalling its products. They have stated that the recall was not a result of Chinese deficiencies, but of a design deficiency.

"My company, the largest whig manufacture, has 95% of our products made by hand. This helps insure the quality of our products. When we have received complaints about our products, we solved them through friendly negotiation with our clients.

"I am not sure what the U.S. media's interest is in making "made in China" an issue -- I hope it is not a political interest, because purely speaking of business, it is an easy problem to solve. Many of my American friends are becoming afraid of using Chinese products. I want to say to America, do not be worried.

"We need also to streamline quality standards. Many problems arise in misunderstanding which country's standards are supposed to be met, whether American, Chinese, or European.

Update 19 - 9:21

We're all done! Everyone's exciting! Thanks to all of you who were reading this.

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