The Daily Nightly began on May 31, 2005. As Brian wrote in his first post it aims to provide a narrative of the broadcast day and a window into the editorial process at NBC Nightly News. Brian weighs in every weekday and NBC News correspondents and producers post regularly.
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Editor's note: Mark will have a full report on this topic Sunday on NBC Nightly News.
BEIJING - You can love Chinese food and eat it everyday. But after living in Beijing for a while, there's a point when the occasional craving for American fast food -- even a Big Mac -- sneaks up on you. As you take your first bite into the iconic burger from a box and taste un-pickled cucumbers and a very spicy special sauce, you realize, 'I may be in McDonald's, but I'm in China.'
Western businesses scrambling to do business in China are adapting to Asian tastes -- literally. Whether it's McDonald's selling their spicy Big Mac alongside a tall clear plastic cup of corn and bean curd dessert pies; or one Shanghai Wal-Mart selling eels and turtles as food, not pets; or Starbucks, with its 220 mainland China stores selling mooncakes and providing waiter service, U.S. companies are glad to cater to Chinese customers because the business potential in China is enormous.
The Yums! corporation, which owns 2,000 China KFCs and more than 300 Pizza Huts and which just launched a new chain of noodle eateries, firmly believes their China business will easily surpass their U.S. operation.
Yes, the average income of a typical Chinese worker is a fraction of that of an American. And the products sold here in China sell for less than what they do in America. But companies have done the math and know the labor costs to staff their China business are also low and the potential is high -- based on the fact that 1.3 billion people live here.
And what also helps Western business here is that many Chinese consumers now want to eat, dress and live the lifestyle of America, which many view here as a symbol of success and sophistication. At the Starbucks near my Beijing home, probably 95 percent of the products on that overhead menu are the same as any Starbucks in the States. People are looking for popular American products, which is why Starbucks is doing good business selling coffee to a nation of tea drinkers.
So, if it's so easy to make money here, why isn't China flooded with Western companies? Truth is, it's not always easy to do business here. U.S. corporations complain of huge government hurdles. Firms which provide media content say that despite improved crackdowns by China's government, theft of intellectual property is still out of control. The U.S. secretary of commerce, on a trade mission here, told me recently that "pirates" are outpacing government efforts to crack down on them. And there are other hurdles as well.
So why bother if you are a U.S. company looking to expand? There are 1.3 billion reasons. The hassles are a small price to pay to do business with the biggest customer base in the world.
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Iran Connection?
The Mc Donalds and KFC here in TEDA are always hopping with customers. My husband and I drop in about twice a month to have our fill of fries, big macs, chicken...Its really tasty, but we know the downside...so we do it rarely. The Chinese are all very thin...the bike is still the #1 means of transportation, and the value of exercise is highly regarded. Coke is not the #1 choice of drink, tea is.
Yes, the Chinese love western culture. But they love their culture even more. The Chinese may get more obese in the younger generations, but not with the total abandon from health concerns with which Americans did, and certainly not in the same high numbers.
And, have you ever noticed how much oil is used in Chinese cooking, they've been eating that way for centuries without getting fat. They are just a super active society.
Tiffany, Tianjin (Sent Feb 13, 2007 10:59:31 PM)
Isn't China one of the most fittest countries in the world? Now that America stepped in with their fast foods restaurants, China is going to be one of the most obese countries in the world. America should at least thought about the problems the fast food nation is going to cause and should have thought about another business they could do in China. Studies show that America has the most obese people in the world. Do they want the rest of the world to be obese? America is controlling what is being put into our mouths by banning Trans Fats and junk foods from most places. America couldn't think a single thought about fast food being a situation in a another country?
A.Jaber Pal. Park, N.J (Sent Feb 12, 2007 9:28:49 PM)
It is true that the U.S. are making money in China market. Even products may different by time,the way of making money may not chage. For example, if Chinese people spend just one dollor for the any U.S. products, the U.S. can simply earn more than 1.0 billion dollars. However, do you think Chinese people will spend only one dollor for the U.S. products? Probably not because the U.S. never let Chinese people to spend just one dollr, but more than one dollor. Actually, the U.S. is making money in many other countries, but why the China market is so special? The large number of populaion is the truth that the U.S. comapnies want to make money in China. Imagine how much the U.S. will make money in China market, if more than 1.0 billion chinese people spend at least $1 for any U.S. products.
Gil Lee, Palpk, NJ (Sent Feb 12, 2007 8:55:24 PM)
It will be interesting to see how Western companies can adapt to the Chinese way of business. For the major brands, the American lifestyle is a big advantage right now. The internet companies are learning hard lessons; Google, ebay, and Amazon are all taking a beating by their Chinese counterparts. New resources, like those found at 9Spaces.com (interviews and networking with China business experts and China market research) and government websites can help, but it will be a long, tough road for Western companies to be successful in China.
Troy, Seattle, WA (Sent Feb 11, 2007 9:29:56 PM)
Ahhhh yes, winning their hearts and minds...one Big Mac at a time !
Art Ostrander, Concord, CA (Sent Feb 11, 2007 9:21:40 PM)
As a 4th generation Asian American and a registered nurse who has toured China twice, it was disheartening to see the intense desire of China to emulate Western culture by adding Pizza Hut and KFC to the main thoroughfares of China. As our nursing groups toured the cities, the hosts were very proud to show us their American restaurants. Our nursing groups attempted to inform them of the unhealthy aspects of eating so much pizza, hamburgers, french fries and fried chicken: obesity, hypertension, high cholesterol and diabetes. It was sad that Western culture is symbolized by those companies that can subsequently dilute a country's health and culture. Of course, they would not hear of the downsides, as they were so anxious to Westernize their cities. Our own culture does not even acknowledge that we eat too much unhealthy fast food.
A. Lim (Sent Feb 11, 2007 8:59:47 PM)
When reporting on China and talking about things that are supposedly reserved for the upper echelon there, wouldn't being able to pronounce the word "affluent" show that you have some credibility? Nothing makes me cringe more, or dismiss the person reporting faster, than hearing words mispronounced or worse, misused. If you cannot pronounce the word -- don't use it!!
(Sent Feb 11, 2007 8:43:25 PM)
In my opinion, The Daily Nightly is one of the most thoughtful and well-written blogs out there and I always appreciate all of your thoughts and opinions. That said, the misuse of the word "everyday" in Mr. Mullen's entry bugged me enough to write. You're too good for that!
Lynn Koski, Minneapolis, Minnesota (Sent Feb 10, 2007 9:01:03 PM)
Two thumbs up for the China they took the formula that made the United States great and used it to built their country to greatness. Now watch other countries follow the same plan as Bush leads the US out of the running. Most of the so called smart people in the Bush Administration are running our country like the FDR days. The world has changed but the US is now far behind. Everyone knows you can't beat something into someone look the US tried it with the slaves it didn't work. Most of the honest great leaders used their brains not weapons to make changes. Our country is being run by Bush/Cheney who don't even know how to use a simple computer you wonder why the Chinese are so far ahead that says it all.
Jackie Rawlings Riverside California (Sent Feb 10, 2007 8:30:59 PM)
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