The first in a series of market reports by your friends at FeedBurner
You can download this report in PDF format (300 KB) from our Web site. Stay tuned to this weblog for future installments.
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Back in October of 2003, when we first started building FeedBurner with hammer and chisel, RSS was, for many people, synonymous with blogs. Now that it’s almost 2006, RSS is, for many people, synonymous with blogs. We still see quotes in major media that conflate blogs and RSS as if they were inextricably bound together. A, therefore B. Blogs, therefore RSS. In early 2003, it was probably accurate to say that almost all blogs had feeds and almost all feeds were derived from a blog. Today, however, while almost all blogs still have feeds, there are innumerable feeds that are unrelated to blogs. Commercial publishers have embraced feeds wholeheartedly; most web services and many search engines now provide subscribed results; and podcasts and videocasts are entirely feed-based while not necessarily tied to blogs.
Yahoo China's been in the news fairly often recently now that Jack Ma, Alibaba's outspoken chief, is running things. This week, though, it made headlines after it was sued over search technology company 3721's handling of rights to the "taobao" keyword. Gome's also been in the business pages a lot recently, but this week it loses out to Gree, which profited handsomely since breaking with Gome last year.
Also in papers this week was promising news about dropping housing prices, and answers to all your questions about the effects of the Jilin Chemical explosion.
More domain-name fun this week. 3721, a service owned by Yahoo China, offers browser keyword resolution. Users can enter Chinese directly into their browser's location bar and be automatically taken to the website that has registered that keyword with 3721.
Taobao, as anyone who's been following the war of words between eBay and Alibaba knows, is one of China's big auction sites. The keyword "taobao," on the other hand, was registered in 2004 to a new and used machinery trading site hosted by MachiNet. In September, 3721 cancelled MachiNet's registration because of alleged infringement on the rights of the legitimate owner of the "taobao" keyword. Alibaba's Taobao later picked up the registration through the year 2020.
So MachiNet sued, saying that 3721 had acted improperly in giving the "taobao" keyword to Alibaba, which coincidentally had just become part of the Yahoo China family that month. Since MachiNet's original registration would expire in 2009, even if it gets the keyword back, 3721 is unlikely to let the company renew its registration beyond that point.
Good news for Beijing home-buyers: statistics from the Beijing Real Estate Association predict that housing prices in the city will begin to drop by the end of the year, with a downward trend continuing througout 2006 and possibly 2007. It's a bit later than other cities - Shanghai's prices have already begun to drop - but it's still welcome after a six-year period of 20-30% annual increases.
Developers, on the other hand, are not so pleased. Beijing is already running a large commercial vacancy rate - up 21.1% over last year to 10.54 million square meters of office space - and this number is set to increase in 2006 due to the completion of 100 million square meters currently under development.
Understandably, neither developers nor the government are particularly inclined to announce that prices are falling for fear of touching off an avalanche. It's probably inevitable, though, and certain analysts feel that unless Beijingers are able to feel that their homes are investments, not just living spaces, the market won't see an upswing for three to five years. That'll be a neat trick when prices of new homes are falling.
Performance in China's air conditioning market has been pretty dismal this year. Plagued by an overcapacity of nearly 30 million units, a crowded domestic market of 69 brands, and technical barriers preventing large-scale exports, manufacturers slashed prices and hoped they wouldn't be one of the 40-some companies slated to exit the sector in 2006.
One bright spot is Gree, which last year was written off when it broke off its distribution agreement with consumer electronics chain Gome. The two companies disagreed over how Gree's products were promoted, and in March 2004, Gree pulled its air conditioners from Gome's shelves. Since this represented the loss of an important distribution channel, analysts expected Gree's sales to suffer. With its network of independent sales agents, however, Gree has managed to increase sales of its air conditioners 29% over the first three quarters of this year, lifting profits 20%.
One week ago there was an explosion at Jilin Chemical's benzene plant in Jilin city, killing five and forcing the evacuation of thousands. In the midst of this tragedy, the question in everyone's mind was "How will this affect PetroChina's plan to take Jilin Chemical private?"
The answer, said this week's business papers, was "not at all." Jilin Chemical and the two other Shenzhen-listed companies PetroChina is planning on privatizing saw their stock increase slightly after the blast.
Since Jilin Chemical is the largest domestic producer of aniline as well as a major phenyl acetone producer, other companies in the industry may be affected by the accident. Phenyl acetone producers like Bluestar New Chemical will get a boost, while companies that use aniline as a raw material, like Yantai Wanhua Polyurethane, will be negatively affected.
Also in the news this week:
These summaries were collected from the The China Perspective, which covers major business news and trends in the China marketplace.
George Bush spent Sunday in Beijing going to church, cycling on the Olympic mountain biking track and meeting Hu Jintao and Wen Jiabao.
Speaking in Pusan, Korea, prior to his arrival in Beijing, Bush talked about the need for religious freedom in China. But it seems that this was rhetoric intended for a U.S. audience. The Bush-supporters who run new right-wing blog portal Open Source Media lapped it up, headlining their story about Bush's China visit "Bush calls for religious freedom in China", and illustrating it with a cheesy photo of a burning candle (link below).
In Beijing however, Bush's tone was a little more restrained. In his official remarks made together with Hu Jintao, this is all he said:
It is important that social, political and religious freedoms grow in China. And we encourage China to continue making the historic transition to greater freedom.
Some commentators have connected the Party's recent commemoration of reformer Hu Yaobang, who is closely associated with the events of 1989, with the Bush visit.
These are the main statements that have resulted from the visit:
- China and the U.S. will work together to solve trade issues;
- China and the U.S. will work together to prevent bird flu;
- China will not accept any compromises over the status of Taiwan;
- China and the U.S. will work together against terrorism;
- China announced that Chinese airlines would buy 70 Boeing 737 aircraft (this is merely a statement until they actually fork over the cash for the planes).
Bush's churchgoing activities were not prominently reported in the state-owned press, although even the People's Daily did run a short article about it in English. Xinhua and other Chinese news organizations preferred pictures of Bush mountain biking.
However, a Chinese blogger and journalist with the punny name of Bu Zhe Si Liu sneaked into the church with Bush and wrote a short description of it. Here is a rough translation (there is another translation at ESWN - Anti's English Blog Is A Big Flop!
Bush's hairy hand:I never thought I could sneak into the church.
My alarm was set for 6am, but I woke up at 5. I had only slept for three hours, but I wanted to go early. I ate some congee, grabbed my camera and headed for Gangwashi Church. Comrade Little Bush was going there to pray.
I saw cop cars speeding towards the chruch the whole way, and sure enough they were level one armed police cars. I arrived at the gate of the church. A mob of Christians were lining upto enter the church. I joined the line. Behind me was a fucking hateful old man who called out, "He isn't carrying a bible". Fuck! What the hell has it got to do with you that I don't have a Bible?
I quickly changed to a different line, and used my limited knowledge about Jesus to chat with people around me in the line and get familiar with them. I managed to get inside the church, but when I passed the security guards, they said I couldn't take a camera in. I looked for a place to store my bag and ran to the American's "command center", but the Yank said NO, I couldn't put my bag there.I'm a journalist, you understand, just let me put it here a little while. I showed him my journalist's card, and nearly convinced him, but then a fucking traitor said, in English, Chinese journalists are not allowed to enter. Everything was screwed up by the traitor. "You must leave".
I left and found a restaurant where I could leave my bag, told the waiter I would come back in a little while. Fuck, 20 thousand yuan's worth of euqipment, I just left it like that, I've got balls.
I got back to the church and entered, took a seat in the middle. It's been a long time since I have been together with so many people singing. After starting middle school, I rarely took music classes. Next to me was a 12-year-old kid, who was baptized when he was 10. His mother works in the church. Later he will be material for the "er maozi" (Westernized Chinese).
At 7:30, Bush arrived, exactly on time. He dressed in an imposing way. Clothes make a man. Originally, quite a wretched-looking man, but he seems to have quite a demeanour, and he's neat and tidy, not bad at all. His wife was drssed completely in cream-colored clothes, two shining earrings, very elegant. As he came in, Little Bush said "Morning everyone". American politicians eh, the common people defer to them one after another, hailing and applauding them. I also saw Rice. She is not as ugly as she looks in TV, she actually looks very beautiful. Black people, the way they look, it's not easy [sic].
When it came to singing, your correspondent has really got talent. I have never learnt to sing these hymns, and the words were all new to me, but it was easy.
My voice was strong anf clear, my expression was devout. One old believer asked me how long I had been a church goer.
The little kid was very naughty, playign witb my Palm the whole time, and not singing properly. Holding the Bible was just a show. When Bush sang, he nodded his head slightly. He really got into it.
When Bush left the church, he shook hands with church goers. The people did not stop clapping and they were very happy. I have seen this kind of scene often before: when Lian Zhan visited, when Li Ao was here. Chinese people really lack a political life. Their desire for expression is deeply inhibited, so when they see a political figure putting on a show, they are deeply moved.
I was sitting on the middle. It wasn't easy to push to the front, but a kid pushed forward to wave at Bush. When he saw the kid, Bush was very happy, he came up and grabbed the kid. His words were a very official sounding "Thank you". Although his face was very sincere, but he just couldn't say another sentence or two.
"His hand, the hair is really furry", the kid screamed at me.
The below is exceprted from an official Xinhua report:
China's Kong Quan, director-general of the Information Department of Chinese Foreign Ministry, said here Sunday that US President George W. Bush's current visit to China has achieved important results......Chinese President Hu Jintao and Premier Wen Jiabao held talks or met with Bush who arrived here Saturday evening on a three-day visit...
...On human rights, Kong said, it is quite normal for the two countries to have differences in this regard as the two countries have different historical and cultural backgrounds and conditions...
...On Sino-US trade, Kong said, leaders of the two countries had an in-depth discussion, and they expressed willingness to join hands in gradually realizing a blah blah...
...On the bird flu issue, Kong said, Hu and Bush reached consensuson prevention and control cooperation and worked out a common document...