Journalists Create Periodismo de las Americas Network

Journalists Create Periodismo de las Americas Network

LA JOLLA – Investigative journalists from eight countries in Latin America and the Caribbean who attended a Nov. 10-14 professional workshop at the Institute of the Americas have formed a network to encourage and strengthen in-depth reporting on political, economic and environmental issues confronting the region.

The network, which the journalists named Periodismo de las Americas in recognition of the IOA workshop which was the impetus for forming the journalist organization, is open to reporters and editors through

out the region, said Marjuli Matheus, who serves on the board of directors of the National Association of Journalists in Caracas, Venezuela.

“We are very excited to apply everything that we learned and to be able to put into effect something tangible as a result of the workshop,” Matheus wrote in an email to IOA Vice President and Journalism Program Director Lynne Walker. “The name that we chose for the network is to honor the Institute, which gave us this opportunity.”

Matheus was one of 22 journalists who attended the five-day workshop, which focused on reporting and interview techniques, the use of data bases to conduct investigative reporting, social media tools and techniques for reporting breaking news stories, the dangers of covering organized crime in the U.S-Mexico border region and techniques to report such stories without putting journalists lives at risk; environmental and health investigative coverage; and journalism ethics.

The journalists attended from countries throughout the Americas – from Mexico, Guatemala, Costa Rica, Panama, Colombia, Venezuela, Peru and Cuba.

Journalists who attended the November workshop at the Institute of the Americas have formed a network to encourage and strengthen in-depth reporting.

Jessica Osorio, a journalist with Siglo 21 in Guatemala, said, “Given the situation in Latin America,  providing journalists access to a workshop that equips them with the necessary tools for the exercise of their profession is essential to strengthening the processes of transparency and accountability. The media and access to information are essential tools to create public awareness and empowerment of society. If journalists continue training themselves through these activities, and even more through one of the most important organizations such as the Institute of the Americas, they will contribute to the development of their countries.”

During the week, the journalists met with expert speakers such as Andrew Becker, national security and border issues correspondent with California-based Center for Investigative Journalism; Pedro Enrique Armendares, executive director of Mexico City-based Center for Investigative Journalism; Robert Hernandez, visual journalist and professor at USC’s Annenberg School for Communication and Journalism.

They also discussed investigative journalism techniques with Alfredo Corchado, Mexico City Bureau Chief for the Dallas Morning News and author of the recently published book, Midnight in Mexico; Susan White, executive editor of InsideClimateNews.org; Lynne Friedmann, editor of ScienceWriters magazine; Victor Clark Alfaro, director of the Bi-national Center for Human Rights in Tijuana; Adela Navarro, co-publisher of the Tijuana weekly newspaper Zeta; and Vicente Calderon, founder of TijuanaPress.com.

Pedro Enrique Armendares, executive director of the Mexico City-based Center for Investigative Reporting, spoke about the use of data bases as Costa Rican journalist Arnold Zamora, far left, looked on.

Journalists attending the workshop said the veteran editors and reporters who met with them during the workshop presented  a wide range of information and professional advice that will help them as they work on in-depth stories in the future.

“Activities such as the Investigative Journalism workshop organized by the Institute of the Americas  give us the opportunity to learn from excellent journalists and professors,” said journalist Mercedes Agüero, with La Nacion in Costa Rica.  “And, perhaps more important, they allow us to create networks with colleagues from other countries with whom we can collaborate, publish our work, share experiences and spread our knowledge.”

The journalists established the Periodismo de las Americas network immediately after returning to their newsrooms from the Institute’s Investigative Journalism workshop.  They now have a blog, which can be viewed at http://periodismodelasamericas.blogspot.com/

They also established a Twitter account, which is @periodismodla

And they have a FaceBook page at https://www.facebook.com/PeriodismoDLA and a page on Google Plus at http://goo.gl/DS2igS

Matheus encouraged journalists in Latin America and the Caribbean to publish their work on the blog.  The only requirement, she said, is that journalists send a brief bio about themselves and their media organization.  Journalists can send the information to periodismodelasamericas@gmail.com

The founding members of Periodismo de las Americas hope that their efforts will expand from a regional network to training programs for journalists in the Americas.

“Our idea for the future is to be able to offer training in countries in Latin America so that we can reach more journalists,” Matheus said.

IOA Workshop Focuses on Youth Gangs as a Transnational Problem that Requires Regional Solutions

IOA Workshop Focuses on Youth Gangs as a Transnational Problem that Requires Regional Solutions

LA JOLLA – Over the past three decades, Central America has experienced an increase in violence and crime, which has largely been attributed to the emergence and proliferation of youth gangs.  Policy makers throughout the region are struggling to find the right mix of suppressive and preventative policies to confront the gang problem.

To respond to these concerns, the Institute of the Americas convened high-ranking law enforcement officials, state prosecutors, anti-narcotics agency representatives and leaders of community-based organizations working with at-risk youths in several Latin American countries  for a five-day professional workshop at its La Jolla, Ca., campus.  The workshop, organized and directed by the Institute of the Americas and titled “Gangs, Youths and Demand Reduction,” focused on five thematic areas related to this regional public security issue.

The areas of discussion included community policing strategies and the role that the education system can play; the prevalence of substance abuse as it relates to gang activity and public health responses to the problem; and alternatives for at-risk youths such as employment, arts and culture programs, religion and sports.

 

U.S. expert speakers working on both suppression and prevention policies, as well as specialists in substance abuse, met with workshop participants to discuss alternatives and approaches to the spread of gang activity.  Participants and speakers agreed that a comprehensive, regional approach to gangs is necessary to prevent further escalation of the problem.

Steven Vigil, a conflict mitigation specialist who served as the co-chair of the Transnational Advisory Group in Support of the Peace Process in El Salvador, told participants that efforts to address the gang problem are failing because “this is a transnational problem that is being dealt with on a local level. You have local law enforcement that are trying to deal with a problem that is bigger than them. Law enforcement needs to be done in conjunction with other programs. Suppression puts too much pressure on law enforcement to solve the problem.”

Panama National Police officials (l-r) Luis Ortiz, Raymundo Barroso and Samuel Nieto outside Panama’s presidential palace after a meeting on gang suppression with President Juan Carlos Varela. Photo courtesy of Raymundo Barroso

Four top-ranking Panamanian police officials who attended the workshop met with Panama’s President Juan Carlos Varela  immediately after returning to discuss implementing anti-gang measures based on models they studied during seminars  at the Institute of the Americas and during field visits to programs such as Homeboy Industries in Los Angeles.

Raymundo Barroso, deputy police commissioner of a Community Crime Prevention Unit of the National Police of Panama, attended the workshop and subsequently met with President Varela along with Panama National Police Major Samuel Nieto; Luis Ortiz, also deputy police commissioner of a Community Crime Prevention Unit; and Ayda Villarreal, Chief of Police of the Children and Adolescents Division.

“During the meeting with President Varela, I was commenting about the experiences we had in San Diego and Los Angeles,” Barroso said in an interview from Panama. “ I spoke to him specifically about Homeboy Industries. There is a program that we have here  in Panama that is similar but it seems to me that Homeboy is much better and that is the part that we need to study more closely.”

During the workshop, the participants heard in-depth presentations about alcohol and drug abuse and the role that substance abuse plays in encouraging and supporting gang activity.

Dr. George Koob, director of the National Institute on Alcohol Abuse and Alcoholism in Washington D.C., detailed the irreversible damage caused by alcoholism and drug abuse.  Dr. Carmen Pulido, adjunct professor in the University of California, San Diego, Department of Psychology, spoke about best practices to respond to substance abuse in children.

The program incorporated field visits with in-depth sessions with specialists in the areas of gang prevention and programs to assist youths who seek to abandon gang life.

At Homeboy Industries, participants met with former gang members who spoke about their reasons for joining gangs, as well as learning about the organization’s jobs program for former gang members. The participants also met with the founders of Southern California Crossroads, an organization that works with gang members in the violence-plagued city of Compton, south of Los Angeles, as well as the neighborhoods of Watts and South Central Los Angeles.

“People are getting killed every day in Los Angeles. The homicide rate has gone up,” said Paul Anthony Carrillo, director of Southern California Crossroads, who has trained more than 500 gang intervention workers over the past six years.

Dr. Michael Jiménez, a surgeon at St. Francis Medical Center, said the hospital handles an average of 2,200 trauma cases a year.  The hospital treats more penetrating wounds – bullet wounds or knife wounds – than any other hospital in Los Angeles.  Some 38 percent of the trauma cases at St. Francis are penetrating wounds. Dr. Jiménez works with Carrillo and Southern California Crossroads to persuade injured gang members to leave gang life. “When they’re in the hospital, it’s a teachable moment because they are vulnerable,” he said.

San Diego, participants made a half-day field visit to the Kearny Mesa Juvenile Detention Facility where officials explained the protocols for responding to potential gang activity in the facility. And at the San Diego County Office of Education, Student Support Coordinator Anthony Ceja engaged participants in mentoring exercises to more fully understand why youths join gangs, the signs of gang involvement and steps that parents can take to guide their children away from gang activity.

“If you have children, listen to them but don’t judge,” said Shanell Rodriguez, a former gang member who now works with Ceja’s Project AWARE program. “If they have one person in their corner who sees something good in them, then they are going to make it.”

Arcela Nuñez-Álvarez, right, founded Homie Up, a San Diego-based non-profit organization, and established a Popular University to educate Latino youths and their family members about their roots and their culture. Photo by S. Lynne Walkern

Arcela Nuñez-Álvarez founded Homie UP, a San Diego-based non-profit organization, and established a Popular University to educate Latino youths and their family members – not only in the basic academic courses but also about their roots and their culture. “We give them a positive sense of who they are,” she said.

At Writerz Blok in southeast San Diego, co-founder Sergio González talked about a program to encourage graffiti as a modern art form – on T shirts and the walls of the organization’s property instead of on the streets where taggers can be arrested. Writerz Blok offers modern art classes and a free summer camp to channel criminal tagging into marketable art.

“We are never going to end the gangs,´ said González, whose non-profit organization has received numerous awards and recognitions from the City of San Diego. “But what we can do is help those who might go into gangs change their path in life.”

Moving Mexico’s Oil Industry Forward

Moving Mexico’s Oil Industry Forward

On May 20, 2009, then-President Felipe Calderon appointed five commissioners to legally constitute Mexico’s oil and gas regulatory body, the National Hydrocarbons Commission, or CNH for its name in Spanish. Just over four years later, Mexico’s new president, Enrique Pena Nieto sent shockwaves across the global energy world as the country amended its Constitution to break national oil company Pemex’s years-old monopoly and allow private companies to search for and develop its hydrocarbon bounty.

Barely out of its proverbial diapers, CNH was thrust into the pilot seat of the country’s effort to usher in a new oil and gas future. Further establishing itself as an independent upstream regulator was critical. First and foremost was the requirement to develop capabilities to execute an aggressive campaign to develop opportunities for bid rounds and investment by private players, something that had not happened in Mexico for almost 80 years.

Today, as the second tender of private contracts under Round One is held in Mexico City we are witnessing the beginning of what can only be called a new Mexican oil industry. Indeed, financial bids will be opened to determine the winners of the five blocks offered to the private sector for extraction in fields in shallow waters off the coast of Campeche and Tabasco.

The first tender held on July 15 won plaudits for its process and transparency, but fell short in terms of contracts awarded and investment commitments. These processes, however, are organic and evolutionary. Indeed, the lessons from mid-July have greatly informed today’s bidding.

What was learned from the first tender? First, transparency and execution are critically important. But so are competitive fiscal terms as well as clear and unambiguous contractual obligations and terms.  These elements are ever more important given the continued volatility and drop in global oil prices. Regrettably, the current price environment as the second tender is held has only gotten worse.

In an effort to emphasize that the government understands the need to continue to tweak the bidding process, several changes have been made in advance of today’s bidding, beginning with announcement of the minimum value for each block. That change has already been implemented and on September 14, the minimum values of operating profit the government will receive corresponding to each block were announced.

In addition, a revised corporate guarantee has been developed. Companies will now be required to provide a $2.5 million bid security guarantee in total and not per block.

Further, the government has addressed a key concern from the first tender surrounding additional reserves. Specifically, new language will lend clarity and provide successful bidders additional exploration and production rights beyond previously discovered reserves.

Buy beyond the first tenders and Round One, the true backbone of what will constitute a major step forward and give form and function to Mexico’s oil industry in the coming years is also being created. The cornerstone that will enable growth of the new Mexican oil and gas industry is the development of an in-depth knowledge of the country’s vast subsurface.

Given the volatility and inherent high risk of the oil business, much depends upon information and particularly understanding of the country’s geology. Indeed, the industry depends upon and invests in gathering data and acquiring knowledge to better understand a country’s “below ground” opportunity.

Mexico is a notoriously underexplored oil and gas province. Moreover, the country has had a paucity of seismic and other key data. With an eye to the future and in its efforts to create a world class oil market in Mexico, the CNH is making a great deal of progress on overturning the country’s chronic lack of oil and gas data and particularly modern, 3-D seismic information.

The Mexican Congress gave CNH the responsibility to develop and manage the understanding of the country’s subsurface as it pertains to the oil industry. Indeed, the laws enacted in 2014 mandate CNH to create a formal system to deal with this issue. CNH has thus created the National Hydrocarbon Information Center. The Center already houses much of the information gathered by Pemex in the past, and it will receive the new data being generated by a wide range of companies that are currently carrying out seismic, geophysical and other studies.

To wit, CNH has granted 22 permits for 11 private companies to conduct assessments and in-depth studies of various subsoil basins across Mexico. In order to synthesize the information contained in the permit applications, CNH will integrate all the appropriate data into a single map. In short, this effort is aimed at creating a national map and profile to show the best expectation for the industry on areas with the highest prospectivity in Mexico.

All of these pieces are part of CNH’s ongoing mission to facilitate investment at the same time as regulating and rendering the utmost transparency for the nation’s hydrocarbons.

A broader, more in-depth understanding of Mexico’s oil and gas potential will not only enable the government to continue to move forward on oil and gas bidding but also deepen the understanding across all of Mexico vis-à-vis the oil and gas sector. Information is increasingly available to anyone interested. In the oil and gas business, like many other technology driven enterprises, data is king.

Moving Mexico’s oil sector forward requires indefatigable efforts and an understanding that today’s failure often greatly informs tomorrow’s success. The turbulence of today’s oil market is not for the fainthearted and demands constant reappraisal of all facets of the bidding process. But Mexico is committed.

Today’s efforts from bidding to historic data and information gathering are intended to provide a window and boost to the future of the Mexican oil industry.

Managing Energy in Boom Times in Panama

Managing Energy in Boom Times in Panama

Panama’s economy has been booming. High rise buildings and green entryways to Panama City’s new state-of-the art metro have been seemingly sprouting overnight. Foreign Direct Investment grew 32 percent in the first quarter of 2015 and over the last five years, Panama has been one of the region’s fastest growing economies, averaging annual growth on the order of 8 percent. The country’s economic growth has, not surprisingly, also led to spiking demand for energy. Some estimates project power demand growth of around 150 MW per year over the next several years.

Almost 100 representatives from Panama, the United States and across Latin America gathered in Panama City on Sep. 22 to debate how Panama can strike the appropriate balance between continued economic growth and corresponding energy supplies.

In acknowledging the boom, Secretary of Energy Victor Carlos Urrutia underscored that rapid growth has its impacts. Critical for Panama is how the government balances a market approach with continuing to provide secure, reliable access for all citizens of Panama. With the recent adjudication of a major 350 MW tender and contract for the country’s first ever natural gas fired power station, by way of LNG imports, the country is on the cusp of an energy revolution. How the government manages the next 350MW tender, set for later this year, on the heels of the first award is being keenly watched.

 

Secretary Urrutia emphasized the Panamanian government’s efforts to develop a Strategic Energy Plan and to take into account all issues and options; what many call an “all-of-the-above” energy approach. The strategic vision, supported by Roberto Meana, the head of Panama’s regulatory body, ASEP, includes the thorny issue of reducing and targeting subsidies, market competitiveness, but also a dedicated effort to diversify the country’s energy matrix.

At the heart of the discussion were four overarching themes: the role for natural gas, the role for renewable energy, how to manage energy demand, and regional integration.

But it was the role of natural gas that provoked the most debate during the course of the discussions at the Roundtable. The award of a 350 MW project to Gas Natural Atlántico, a subsidiary of AES Corporation, will bring on-line within 30 months Panama’s first natural gas-fired power plant at an estimated cost of $800 – 900 million.

Moreover, the future for natural gas in Panama’s energy matrix beyond just power generation, and more specifically the issue of open access and how the entire country will benefit from the fuel’s arrival in 2018 is a matter of debate between the government policymakers, regulators and private sector.

Adding to the discussion is the Panama Canal.

Deputy Administrator Manuel Benitez discussed the Panama Canal’s efforts underway to study the possibility of building an LNG receiving terminal for power generation and also with the aim of bunkering and providing LNG for ship borne propulsion, particularly as more stringent ship emissions come into effect in the coming years.  As a related element, the expansion of the Panama Canal is slated for inauguration in April 2016. Once the new locks enter into operation, the Canal will be able to accommodate 92% of the world’s ships according to Deputy Administrator Benitez.

It also bears noting that in the discussion of regional integration, there was much applause for the advances of Central America’s Regional Interconnection System or SIEPAC and the Regional Electric Market. Indeed, panelists underscored how critical regional integration and the regional market were for Panama as the system provided much needed relief during the 2013 drought, which hindered the country’s hydropower generation capacity.

The next step for Panama is moving forward with electric interconnection with Colombia, or the Colombia-Panama Interconnection Project. The project has been complicated by numerous environmental and indigenous concerns and broader geopolitical issues. Yet, panelists at the Roundtable concurred that the ICP would be completed by 2020.

Panama has important energy hurdles ahead, but the level of debate and seriousness of focus set forth by policymakers and market participants alike at the Roundtable points to awareness and competency to confront and manage the coming challenges.

To wit, CNH has granted 22 permits for 11 private companies to conduct assessments and in-depth studies of various subsoil basins across Mexico. In order to synthesize the information contained in the permit applications, CNH will integrate all the appropriate data into a single map. In short, this effort is aimed at creating a national map and profile to show the best expectation for the industry on areas with the highest prospectivity in Mexico.

All of these pieces are part of CNH’s ongoing mission to facilitate investment at the same time as regulating and rendering the utmost transparency for the nation’s hydrocarbons.

A broader, more in-depth understanding of Mexico’s oil and gas potential will not only enable the government to continue to move forward on oil and gas bidding but also deepen the understanding across all of Mexico vis-à-vis the oil and gas sector. Information is increasingly available to anyone interested. In the oil and gas business, like many other technology driven enterprises, data is king.

Moving Mexico’s oil sector forward requires indefatigable efforts and an understanding that today’s failure often greatly informs tomorrow’s success. The turbulence of today’s oil market is not for the fainthearted and demands constant reappraisal of all facets of the bidding process. But Mexico is committed.

Today’s efforts from bidding to historic data and information gathering are intended to provide a window and boost to the future of the Mexican oil industry.

Message From President and CEO Jamal Khokhar: Efficient Borders and the North American Integrated Economic Space

Message From President and CEO Jamal Khokhar: Efficient Borders and the North American Integrated Economic Space

Efficient, secure, frictionless borders are a cornerstone of our economic competitiveness, not only in the Cali-Baja mega-region but on the southern border and in an integrated North American economic space.

Mexico, the US and Canada mutually rank as principal partners in each other’s trade relationships and rely on smart borders to power their economies in the global context.

At the Institute of the Americas, from our particular vantage point in San Diego, we recognize the importance of responsible border management to ensuring that vehicles, machinery, medical devices, and agricultural products of Mexican origin or North American co-production cross the border at southern ports of entry and fan throughout North America to reach consumers and households.

 

This is vital not only to the economic prosperity of our region but also to enhancing North American competitiveness overall.

The Institute of the Americas applauds efforts to analyze obstacles to a fully functional border and to find sound, innovative and technologically-driven solutions.

Laurie Black, Lynn Schenk, Dr. Mary Walshok and Sally Carrillo (L-R) give background on the designing of the SENTRI program

On September 22, the Institute of the Americas co-hosted, along with UC San Diego and the Smart Border Coalition, a conference on these important themes. UC San Diego Chancellor Pradeep Khosla, wearing multiple hats as University Chancellor, as well as Institute of the Americas Board Member and Smart Border Coalition member, spoke to his vision of the border of the future. Dr. Mary Walshok, Dean of UC San Diego Extension and also an Institute Board Member, helped frame the discussion by providing vital historical context about the efforts of Congresswoman Lynn Schenk, a visionary California leader who spearheaded the SENTRI program.

We are proud to be associated with the launch of a report entitled Envision 2020 that UC San Diego and Cubic Transportation Systems produced assessing the state of the border and providing key recommendations for the future of the SENTRI program.

We commend the work and collaboration among members of the academic, business and civic communities. Find here the UC San Diego-Cubic white paper, which provides a thoughtful perspective on the border, leverages the technological expertise of UC San Diego’s academic community and serves as an example of San Diego’s public-private collaboration in problem-solving and providing models which may serve other regions as well.

Finally, speaking of the importance of safe and smart borders to shared North American economic prosperity, the Institute will be hosting a conversation October 15 with Canada’s Ambassador to the US, Gary Doer. Please click here for further details.

Chinese President Meets with U.S. Tech Giants on Cyber Issues

Chinese President Meets with U.S. Tech Giants on Cyber Issues

LA JOLLA – Chinese President Xi Jinping stopped in Seattle on the first leg of a state visit to the United States to meet with America’s technology giants and underscore China’s cooperation with U.S. companies as well as its emphasis on Internet security.

Mr. Xi attended a China-U.S. business roundtable on Sept. 23 with 15 executives from 15 companies from each country. Among the U.S. executives at the meeting were Berkshire Hathaway’s Warren Buffett, Amazon’s Jeff Bezos, and Apple’s Tim Cook.  Joining them were executives of Chinese tech giants Baidu, Alibaba and Tencent. The 15 Chinese companies represented at the roundtable have a total worth of US$1.2 trillion of market value, about one-eighth of China’s GDP in 2014. Another focus of Mr. Xi’s Seattle visit was the 8th U.S.-China Internet Industry Forum co-hosted by Microsoft and the Internet Society of China.

These cyber events, which attracted global attention, come as China’s Internet and high-technology industry are burgeoning. China now has 700 million Internet users and its high-tech industry is growing more rapidly than any other sector. The IT industry and technology generally are stimulating consumption as a crucial driving force for continued economic growth in China. Mr. Xi’s agenda in Seattle reflects this reality. As a result, some Chinese and U.S. technology companies have established cooperative partnerships, for example: Baidu will replace Bing as Microsoft’s search engine in China, and Tencent and Legendary Pictures will work together on upcoming motion pictures.

 

China’s corporate giants at Seattle business roundtable

World’s largest search engine in Chinese Mandarin
$71.4 billion market cap
Ranked #11 among innovative companies by Forbes
President Zhang Yaqin, former Microsoft corporate VP

Online and mobile commerce company
$145 billion market cap
IPO on the NYSE in September 2014
Executive chairman Jack Ma Yun, ranked #7 richest person in Tech by Forbes

 

Online social network, e-commerce and games
$181.1 billion market cap
Founded in 1998
Chairman and CEO Ma Huateng, ranked #11 richest person in Tech by Forbes

 

Computer hardware
$16 billion market cap
Acquired IBM’s personal computer business in 2005
CEO Yang Yuanqing

 

Ranked world’s largest bank for three consecutive years (2013 – 2015)
$278.3 billion market cap
Founded in 1984
Chairman & Executive Director Jiang Jianqing

 

Ranked world’s 4th largest public company by Forbes
$199.1 billion market cap
Founded in 1912
Chairman Tian Guoli

 

List compiled by Diying Wu, Institute of the Americas

China boasts about its Baidu, Alibaba and Tencent (BAT), and sees U.S.’s Google, Apple, Facebook and Amazon (GAFA) as its counterpart, though Google and Facebook are currently banned from China. After its noisy exit in 2010 against the backdrop of Chinese censorship, Google is actively preparing to re-enter China with a limited Google Play Store for Android devices as the majority of the software innovations in China are carried out on the Android platform.
Facebook is also working to regain its share of the China market, and its CEO Mark Zuckerberg has made personal efforts towards this end. Zuckerberg’s wife, Priscilla Chan, is of Chinese descent and he learned Mandarin to better communicate with her family. Now Zuckerberg is taking great advantage of this skill to push for Facebook’s reentrance into China. On Sept. 23, after having a brief conversation with Chinese President Xi in Mandarin at the Internet Industry Forum in Seattle, Zuckerberg posted on his own Facebook page that “this was the first time I’ve ever spoken with a world leader entirely in a foreign language. I consider that a meaningful personal milestone”. In fact, as early as October 2014, Zuckerberg visited Beijing’s Tsinghua University and delivered a speech in Mandarin, which greatly impressed the audience and the Chinese media.

U.S.-China Business Roundtable with 15 U.S. CEOs and 15 Chinese CEOs as part of Pres. Xi’s visit to Washington state. Photo via Paulson Institute

The GAFA success story in China is Apple. Its iPhone sales in China increased over 75% in 2014, and more than 25 percent of its latest quarter’s revenue came from China. An iPhone 6s sells at 5,288 RMB (US$830) in China, higher than the retail price in the U.S. It is considered a luxury purchase for most Chinese consumers. Yet Apple products still managed to take over market share and create trending crazes in China. In 2012, a 17-year old teenager from Anhui province sold his kidney to buy an iPhone and iPad2.

Qualcomm, based in San Diego, California, is another U.S. technology company with recent operations challenges in China. In February, Qualcomm was fined $975 million dollars according to Chinese anti-trust regulations. This is the highest fine of its kind in China’s history. China’s National Development and Reform Commission (NDRC) launched its anti-trust investigation against Qualcomm in late 2013 and the investigation lasted more than a year. The company accepted the penalty in exchange for access to the Chinese market. “We end up better-positioned as a company in China as a result,” Qualcomm CEO Steve Mollenkopf said in an interview to Bloomberg. Qualcomm’s recent episode has much to do with Chinese government’s “indigenous innovation” policy, introduced as national strategy in 2005 aiming to encourage technology innovation by domestic companies.

Interactive Timeline of China-U.S. Tech

 Timeline created by Diying Wu, Institute of the Americas

On September 23, Boeing signed a deal with Mr. Xi to sell China 300 airplanes for US$38 billion and to establish a 737 jet-completion and delivery center in China. The Chinese companies involved in the deal are China Aviation Supplies Holding Company, ICBC Financial Leasing Co., Ltd., and China Development Bank Leasing. Boeing estimates that in the next 20 years, China will be its biggest market for commercial aircraft. The company projects that China will need 6,330 new airplanes with a total worth of US$950 billion. As the Chinese middle class grows, more tourists will travel by air. According to China National Tourism Administration, in 2014 there were more than 109 million Chinese tourists travelling abroad. China’s largest low-cost airline Chunqiu said its revenue on international lines increased by 63.13% in 2014.

Interactive Timeline of Boeing and China

Timeline created by Diying Wu, Institute of the Americas

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