Monthly Archives: October 2010

After enduring torments in George Orwell’s 1984, Winston Smith learnt to love Big Brother. After the midterm elections, which are also likely to be painful, Barack Obama should learn to love big business.

John Gapper

I admit to having been sceptical about Alan Mulally‘s chances of turning around the ingrained culture and under-performance of Ford when he was recruited from Boeing as chief executive in 2006. But Mr Mulally has been proving me wrong.

Ford’s third quarter results put the company on track to be free of net debt by the end of the year. More importantly, Mr Mulally’s internal restructuring appears to have placed it on a long-term growth path, rather than being a short-term fix.

A lot of conventional wisdom about the industry have been proved wrong recently, including the idea that it would be a disaster for any of the Big Three to go into Chapter 11 bankruptcy. Bankruptcy was the best thing that could have happened to GM.

John Gapper

This weekend in Shanghai, I met Zhou Libo, China’s most popular stand-up comedian and, among other things, a judge on China’s Got Talent, which has just concluded its first season (the winner was a man who plays the piano with his toes).

Mr Zhou is the closest China has to a Jon Stewart, a comedian who draws his material from topical issues such as the rapid rise in house prices. He also does imitations of China’s political leaders, including Wen Jiabao, the premier.

John Gapper

I spent a comfortable hour and a quarter today on the high-speed bullet train from Nanjing to Shanghai – a symbol of China’s technological progress and the extreme lengths to which it has gone to acquire western technology.

The journey on the service that opened this summer was fast, smooth and relaxing – starting from Nanjing’s newly upgraded station and ending on time in Shanghai. Although the trains did not quite have the same polish as the TGV service in France, the ambience was otherwise  similar.

China is building one of the biggest high speed rail networks in the world, having started with the Beijing-Tianjin line, built in co-operation with Siemens of Germany in time for the 2008 Olympics.

China was introduced to its likely next leader this week when Xi Jinping was named to a top military post at the Communist party’s annual plenum. No one knows much about him and few are bothered.

John Gapper

On my visit to China with a group of journalists, I today visited Beijing Middle School 101 – a school at which 4,000 students up to the age of 18 prepare for university. It was a remarkable insight into the achievements and aspirations of China’s new generation.

I had expected to find intelligent and highly-motivated students, but what was more surprising was how immaculately many of the group of 30 students we met spoke English, and their thoughtful and open comments on Chinese society.

Here are a few things they said, first on China’s one-child policy:

“Being a single child is lonely sometimes. My parents are out and there is no-one home. There is no-one you can tell your heart to, so it really hurts.”

“I try to work hard to repay my parents. My dad is not so pushy with me. When I fail a test, my mother is not angry but she is sad.”

“Our grandparents keep saying that the past was different, that children born in the 1980s and 1990s lack the sense of responsibility for society and we do not strive hard enough. We do not have siblings so we don’t understand how to share and how to tolerate people. It is going to be tough but we will learn to share.”

On China’s economic development:

“I don’t think China is a rich country. A lot of people in China are still hungry, so how can we say it is a rich country? China is still a developing country so we need more time to to better. I think our national leaders are outstanding and they are trying to improve the situation.”

“There is a lack of spiritual belief. Sometimes I feel disheartened that materialism prevails. People chase after money and fame but it should not be the only thing that people live for. We need to develop in health and education and human rights. We need to find a creed to live for.”

On the most sensitive subject – human rights in China – the students appeared to share the official hostility toward the award of the 2010 Nobel Peace Prize to Liu Xiaobo, the Chinese dissident, but one quoted Martin Luther King in saying that reform was needed more broadly:

“People suffer because they give their opinion on sensitive issues and they go to jail for that so may I quote Dr King: ‘No we are no satisfied.’”

The Beijing 101 students are not typical of all Chinese teenagers – they are mostly the sons and daughters of doctors, lawyers and officials from the Chinese elite. Many of them have either been abroad already or want to study abroad in future.

Still it was a salutary experience to meet such well-informed and articulate (even in their second language) students of a rising economic power.

John Gapper

I am in China this week and, on my first full day in Beijing, took a trip to the Great Wall at Mutianyu. While there, I saw the following customer service declaration on the cable car. It made this visitor happy:

Two years after the collapse of Lehman Brothers, regulators are working on ways to prevent it happening again. That means finding a way to wind down a complex, global financial institution safely, while making its shareholders and bondholders suffer enough to discourage reckless behaviour.

Business blog

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This blog is mainly about business and strategy and how and why people who run companies take the decisions that they do.

Most of the time, John Gapper is in New York and Andrew Hill is in London. We occasionally debate business issues between us, but your comments and criticism are welcome.




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About John and Andrew

John Gapper is an associate editor and the chief business commentator of the FT. He has worked for the FT since 1987, covering labour relations, banking and the media. He is co-author, with Nicholas Denton, of All That Glitters, an account of the collapse of Barings in 1995.

Andrew Hill is an associate editor and the management editor of the FT. He is a former City editor, financial editor, comment and analysis editor, New York bureau chief, foreign news editor and correspondent in Brussels and Milan.

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