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Chinese oversea investment AND Observations of Chinese Public Relation (PR) Chi Zhang TekirOy
Outlines ,[object Object]
 	Chinese oversea investment in Finland & Sweden
 	Development of Chinese Public Relation (PR)
 	Cases Studies: Observations of Chinese PR,[object Object]
1.2 Chinese brands in the world The importance of low price as a reason for bonding with Chinese brands decreased, while the importance of other factors such as being trendy, popular, appealing, and functional has been increasing.
1.2 Chinese brands in the world
1.3 Motivation of Chinese Foreign Direct Investment ,[object Object],-- Natural resources (non-ferrous metals, oil, forests) [e.g., China National Offshore Oil Corporation (Oil and Gas)]         -- Human resources              [e.g., HuaWei set up research center in India (Bangalore)] ,[object Object],       -- Be competitive in overseas market             [e.g., Lenovo (Computer Systems) acquired IBM PC group]        -- Obtain market advantages as locally operated business             [ e.g., Haier Group (Home appliances)  set up factories in US] 	1. Decrease transportation fees and service fee. 	2. Easy access to local market and utilize local resources
1.3 Motivation of Chinese Foreign Direct Investment ,[object Object],       -- Innovation capacity in China is not competitive            Acquire know-how from foreign companies and local workforce. [e.g., Zhejiang Geely Holding Group acquired Volvo Car Corporation] ,[object Object],[object Object]
1.3 Chinese investments in Finland & Sweden
Main reasons for Chinese investors to nordic countries  ,[object Object],          -- Resource acquisition (Minmetals)           -- Market expansion (Air China)           -- Anti-trade protection (Nipeco) ,[object Object],          -- Technology improvement (HuaWei, GEELY)           -- Resource acquisition (Neusoft, HuaWei)           -- Market expansion (GEELY, HuaWei)           -- Policy encouragement (GEELY, China Medical Center)
Characters and motivation ,[object Object],       -- Small scale, but high tech        -- Own patent, product, high market share ,[object Object],       -- Accelerate industrial upgrading        -- Enhance product quality and support technical renovations        -- Improve brand awareness,        -- Avoid anti-dumping measures set by EU        -- Investment policies are good        -- Finland is the only Euro-zone member in Nordic countries, there is no exchange risk
Potential fields ,[object Object],    -- Energy saving and environment supervision     -- Clean technology     -- Medical and health care     -- Waste management     -- Water resource and treatment     -- Telecommunication     -- Minerals  ,[object Object],    -- Forest ecosystem     -- Bio-pharmaceuticals     -- Telecommunication     -- Banking and Financial strategic knowledge     -- Car industry     -- Clean technology
Chinese public relation
Chinese public relation
Public diplomacy in China ,[object Object]
Media in China includes authoritative media and mass media
  Authoritative media works as a guidance or "wind arrow”Reference: China Public Relation association
Phenomena ,[object Object],	-- 	non-methodology, no clear logic, not enough background research ,[object Object],	--	cultural background, less personal opinions ,[object Object],	--	Beijing, Shanghai, Guangzhou, Chengdu  ,[object Object],	--	one-off events, activities, non-strategic, even non-predefined  (Emotional relationship can not be ignored in China.)
Challenges of PR Industry in China ,[object Object]
The average age of PR consultants is 25-27
Senior consultants are from outside (Singapore, Taiwan)
Government has tight control over all media outlets.
There is no guarantee that coverage will be timely.
PR industry relies heavily on PR practitioners' personal relationships with journalist. (rather than having a good story to tell)
Quantity of journalist is more important than quality of coverage

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Public Relations industry in China

  • 1. Chinese oversea investment AND Observations of Chinese Public Relation (PR) Chi Zhang TekirOy
  • 2.
  • 3. Chinese oversea investment in Finland & Sweden
  • 4. Development of Chinese Public Relation (PR)
  • 5.
  • 6. 1.2 Chinese brands in the world The importance of low price as a reason for bonding with Chinese brands decreased, while the importance of other factors such as being trendy, popular, appealing, and functional has been increasing.
  • 7. 1.2 Chinese brands in the world
  • 8.
  • 9.
  • 10. 1.3 Chinese investments in Finland & Sweden
  • 11.
  • 12.
  • 13.
  • 16.
  • 17. Media in China includes authoritative media and mass media
  • 18. Authoritative media works as a guidance or "wind arrow”Reference: China Public Relation association
  • 19.
  • 20.
  • 21. The average age of PR consultants is 25-27
  • 22. Senior consultants are from outside (Singapore, Taiwan)
  • 23. Government has tight control over all media outlets.
  • 24. There is no guarantee that coverage will be timely.
  • 25. PR industry relies heavily on PR practitioners' personal relationships with journalist. (rather than having a good story to tell)
  • 26. Quantity of journalist is more important than quality of coverage
  • 27. Different areas of China have their own economic and cultural characteristics.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32. Supor was awarded as one of the national free - inspection product.
  • 33.
  • 34. Case 2: PR war between 360 and QQ Reflection 2010.10.1, CEO of Sohu, Mr. Zhang posted on Weibo (Chinese Twitter) to express support to 360. 2010.10.05, CEO of Sdo.com(1st online game platform), Mr. Chen showed support to 360 in an interview. In addition, a prompting message was shown on the platform, asking users to close QQ software before any change and explanation from QQ. First Round 2010.10.14, Tencent sued Qihoo 360 for alleged unfair competition. Later on, Qihoo did counterclaims. 2010.10, Tencent and Qihoo 360 kept pushing fighting messages to their online users through pop-ups windows everyday. This lasted fro one month. Second Round 2010.11.03, Tencent decided to stop QQ software on all the desktops which had Qihoo 360 software installed. Immediately after that, Qihoo 360 said they would make the software run even with QQ software installed in the same machine. 360 seeked emotional support from users, saying they were the vulnerable group compared with QQ.
  • 35.
  • 36.