Politics, Pornography, or Property Rights

In December of 2009, suddenly and deliberately all of the top web-based, free downloadable entertainment content providers in China were shutdown. The industry came to a screeching halt with speculated forced layoffs in the thousands. The Ministry of Radio Film and Television responsible for the bold move comes (as no surprise to me) so close after US President Obama visited China (Nov. 16, 2009). Before that the fiascoes at the Group of 20 Nations talk in Pittsburg (Sept. 25, 2009). Before that, remember the tense US-China Commerce & Trade Battle over US Tire Duties placed on Sep. 11, 2009.

So, was it a crack-down on proliferating pornography and illegal content in China, as the government implies? Was it politics, to give face to the new administration’s requests? Could it be that China has decided to join the rank and file and adhere to the WTO? Consider this; when you have a third of the world’s population, a large portion of which are under-educated and predominantly makes up the labor force averaging less than $200 a month. What can you do to placate the masses when a popular movie such as “Avatar” goes for a little less than $18 per ticket? It doesn’t take an economist to imagine the administrative nightmares and financial toll attached to this scenario.

When the US Government’s trade deficit with China becomes insurmountable, imagine the magicians “sleight of hand” technique. Don’t talk about “Buy American” policy, what about your Human Rights issues and when are you going to start safeguarding Intellectual Property Rights? Until you get your act together were going to slap a duty on this… Oh, did you hear about the Hummer buy out deal crash? Reason; delays, delays, delays…waiting on Chinese government approval. No, this has nothing to do with the other, right? If I had inside scoop (ahem)…I would bet this isn’t the last deal that get’s slashed.

Oh, by the way…is it Congressional election year already (2010)?

What do you think? Post your thoughts?

PS
Wonder why the US has no Chicken Feet selling in the Supermarkets? Why do China only sells the wings of Turkeys? –Just a thought…

By: Jon Trewyn, Mba.

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