China's Large Packaging Nation, follow Japan's lead

Coming back from a trip to China, I can't help noticing a sea change of packaging to everything, even the street vendor who were selling stick rice balls packaged his stuff in a gift package!

Heck, a few years ago, that would have been imaginable. Back then, substance was the king, how cared what it comes in, what mattered was the stuff inside.

What's happening reminds me of a ancient story, a Zheng Kingdom merchant packaged his peal in a scented wood box, decorated with all kinds of jade. One buyer purchased the jewelery, but returned the pearl later but kept the box. In Chinese, the so called Maizhuhuandu (buying the pearl but keeping the box) has since stayed in writings and speakings.

The importance of packaging to a product is not new, in Japan, people have long desired a gift bag that is from a well-known department stores in Ginza, Tokyo. Some times, people just like a gift simply because it came with a Seibu or Hankyu logo on it.

Now, China has followed up with a even fierce force. The gift-exchange trend is such that you have to carry a nicely printed package to go with everything. Street walkers during the New Year season all carried around various kinds of packages, whether they contain rice cakes or yogurt, they all come with a nicely printed bag.

Could it be a repeat of history or a new trend?

China's image problem in Japan

According to a just released poll conducted by Japanese Cabinet, a combined 77.8 percent Japanese said they don't consider Chinese are friendly or they don't have a positive feeling towards Chinese. The number rings alert as it's the highest ever percentage since 1978 when the poll was started. It's also a big jump from the last poll, which recorded 55.8 percent in 2009.

Japanese Cabinet has since blamed the Chinese fishing boat clash around disputed area Senkaku/Daioyu island as the reason for the deterioration in China's image among Japanese people.

I personally think the bottom of the problem is that more Japanese have felt the growing strong Chinese presence and China's muscle flexing style, more evident entering this year. Not only there was the boat clash and subsequent Youtube videos which stirred up nationalism in both countries, but also the rare earth issue. As China is increasing its reach to more areas, the clash could become more and frequent, but not less.

The real issue here is a lack of trust and transparency, and in the surface, a lack and communication among top leaders. To solve the issue, more calm diplomacy, initiative taking and less rhetoric needed.

China Stands Strong, Everyone Wondering Why Now?

Following the release of the Chinese fishing boat captain, Beijing did not back down from its strong stance, requiring twice from Tokyo to apologize and compensate, which Japan has flatly refused. Beijing's strong stance has everyone wondering, why now?

According to one analysis by Adam Segal of Council on Foreign Relations, Chinese has been showing strong stance over the disputed marine territory for a while, at least can be traced back to 2005, when itfired on Vietnamese ships. Beijing has been building on Mischief Reef, which sits in water claimed by the Philippines as part of its Exclusive Economic Zone since 1999.

The strong stance has stirred some unspoken fear from Chinese neighbors. According to Japanese media TBS report, Korean media compared to the release as a surrender from Tokyo to Chinese strong-hand diplomacy.

In my previous analysis, and echoed by the New York Times article, the U.S. seems to be getting the rare opportunity to reassert itself in Asia, especially among countries with maritime territorial dispute with China.

Special Interests Behind Sino-Japan Dispute?

There is an interesting piece by New Yorker's Evan Osnos, on his Letter from China (the inspiration for my own Letter from Ghana blog). Evan said that the current dispute between Beijing and Tokyo could be works of Chinese special interest groups.

Just how powerful are these special interest groups? According to an insider account, a billionaire could buy his classmate a vice-mayor position in China.

However, there is still questions yet answered. The clash with Japan over the fishing boat is involved with gas, energy and territorial dispute, but there should have a carrot that motivated the groups to press hard. It could be the gas reserve in the Eastern China Sea or something else.

Washington Post John Pomfret said in his piece, "the explosion of special interests shaping China’s worldview".

Japan Releases Chinese Fishing Boat Captain

Tokyo announced the release of Chinese fishing boat captain, after Chinese protests getting stronger and more retaliation measures are expected to come, besides already announced real earth export ban and Chinese tourists urged not to go to Japan.

The release will certainly a relief sign for Sino-Japan watchers who have been concerned about the further worsening relationship. The long term impact of the incident, including physiologic shadows it casts have yet to emerge.

One certain thing is a closer collaboration between Tokyo and Washington. The two leaders just held a one-hour meeting in New York on the sidelines of the UN summit. Japan PM Kan and President Obama discussed about China and expressed a desire to strengthen the ties, which have been weakened by dispute over Futenma base transfer.

On the other hand, burdened by domestic economic slowing down and upcoming mid-term election, Obama administration certainly has more in stake in dealing with China. A recent stronger stance taken by Washington, including a tough tone on Chinese currency issue, has drawn attention.

As Chinese President Hu Jintao is going to visit the U.S. next January, and President Obama will be hosting a state dinner to welcome Hu, the third one under his presidency, it's really up to Washington to balance the act.

Sino-Japan Relation Spiral Down Further

The prolonged fishing boat clash didn't work out as both sides hoped, "calm and care", it seems the China-Japan relationship is entering winter in the mid-autumn of 2010.

First Tokyo has decided to delay the release of the captain of the fishing boat by ten days, which caused a uproar from the Beijing side, who has insisted on an immediate release. More than 10,000 Chinese tourists have already canceled their planned trips to Japan, more cancellations are pouring in, according to Japanese media reports.

Around one hundred Chinese protesters demonstrated in front of the Japanese Embassy in Beijing, smaller crowded also gathered in Shanghai's Japanese Consular office. Even in NYC, Chinese immigrants and students protested.

Top level exchanges between Japanese politicians and ministers have seen further set backs. Following the abandonment of a NYC meeting between Wen Jiabao and Naoto Kan, who are attending UN General Assembly, Tokyo announced that a meeting between Chinese minister and Japanese counterparts on the side of APEC tourist ministers meeting, which is scheduled to be held in Nara, Japan has been scrapped.

The cold wind also blew to cultural exchange scene. A concert in Shanghai featuring Japanese pop group SMAP has been called off for now, the organizers cited safety concers for concert goers. Tokyo governor Shintaro Ishihara also said he wouldn't go to a meeting in Beijing in October.

The three-day mid-autumn festival holiday hopefully will calm the situation a bit, when everyone comes back to the table, a fresh start will return.

China-Japan Relationship Worsens Due To Fishing Boat Clash

The ongoing clash between Beijing and Tokyo over a fishing boat near Sengaku (Daiyutai) islands and Chinese public outcry have further strained the fragile bilateral relationship.

Although the sides have emphasized "calm and care", the ties have cooled down quickly since Sept. 13, when Chinese fishing boat was detained by Japanese Coast Guide. According to Japanese media report, tour groups numbered around 10,000 visitors from China have canceled their original plan traveling to Japan, at least for now. That's on top of a scrapped submit between Chinese President Hu Jintao and Japan PM Naoto Kan on the sidelines of UN General Assembly this month. Another planned meeting between the two countries to discuss the joint development of the gas field in the East China Sea has also been axed.

Adding more pouch to the wound, Japanese today said Chinese have shipped drilling equipments to the disputed gas field.

As the traditional Moon Festival coming, and a long weekend to start soon in China, will the time allow the both sides to sit down and come up solutions, instead of more tensions?

I certainly hope so.