More Questions Related to Disney's New Park in Shanghai

Advertisement for the Shanghai Disney Resort near an entrance to Guomao Station in Beijing

A few weeks ago I posted about how Disney's new resort in Shanghai isn't only a sign of American influence but of Chinese influence as well.

Since then I have been thinking about questions such as:

• How much of the resort's "distinctly Chinese" aspects are a result of appeasing government officials' worries about American cultural imperialism versus tailoring the park to best meet visitors' needs and desires versus creating a unique park?
• To what degree were Chinese officials more or less concerned about American cultural imperialism compared to having a park distinct from Disney's parks elsewhere in the world?
• Do the localizations conflict with visitors' desires to have a Western / American experience?
• Exactly how much of an effort has China made to reduce piracy specifically affecting Disney and how effective has it been?
• Will Disney open a Beijing roast duck restaurant with Character Dining including Donald Duck?

In future posts, possibly scattered among others, I will touch on some of these questions and related issues. I will also say more about the shirt in the earlier post's photo. I nearly didn't use it and was careful with how I described it (or didn't describe it). Notice why?

Disney a Channel for Both American and Chinese Influence, Cares About Another Type More

Shirt worn by a woman in Hengyang, Hunan

In minutes Disney will open a new park to the public in Shanghai. Some see it as an opportunity with deeper implications than an increased number of authentic Mickey Mouses in China. Last month, Graham Webster, a senior fellow of The China Center at Yale Law School, briefly commented on a tweet about a meeting between Disney CEO Robert Iger and Chinese President Xi Jinping:

Western influence https://t.co/qTxSZdrZmG

— Graham Webster (@gwbstr) May 5, 2016

I replied to Webster's tweet with a similarly brief comment:

Chinese influence https://t.co/7bRyjvvCd2

— Brian Glucroft (@BrianGlucroft) May 5, 2016

My aim wasn't to refute Webster's point but to highlight the other side of the coin. It isn't clear how this coin is balanced.

David Barboza and Brooks Barnes in The New York Times recently provided an example from the past showing how Disney accepted the influence couldn't go just one way:

[In 1997] Disney agreed to back the director Martin Scorsese, who wanted to make “Kundun,” about China’s oppression of the Dalai Lama, the Tibetan spiritual leader. The Chinese government, which considers the Dalai Lama a separatist, denounced the project and pressured Disney to abandon it.

In the end, Disney decided that it could not let an overseas government influence its decision to distribute a movie in the United States. “Kundun” was released, and China retaliated by banning Disney films . . .

In October 1998, Mr. Eisner met Zhu Rongji, who had just been named prime minister, at China’s leadership compound in Beijing. Mr. Eisner apologized for “Kundun,” calling it a “stupid mistake,” according to a transcript of the meeting.

Disney's change of heart raises the question of how much of the content in Disney's movies has since been influenced to some degree, directly or indirectly, by a desire to not hurt the feelings of the Chinese government.

And Disney is now aiding Chinese influence in other ways:

Disney is going to extraordinary lengths to prove its commitment to China and the Communist Party. During a 2010 meeting with China’s propaganda minister, Mr. Iger pledged to use the company’s global platform to “introduce more about China to the world.” And he has done just that.

Barboza and Barnes also provide examples of how Disney has made a park that is "authentically Disney and distinctly Chinese." Some of this is similar to how other American companies have localized their products or services in China, such as Pizza Hut's durian pizza or Walmart's larger selection of live seafood. Yet with its movies and its parks' immersive experiences, Disney has the power to influence in ways Pizza Hut or Walmart can't. The Chinese government clearly appreciates this and wishes to contain Disney in a variety of ways, though other factors are at play, such as wanting local companies to receive a large piece of the profitable opportunities Disney generates.

So not only is it uncertain what any success for Disney in China would mean for Western, or more specifically American, influence, Disney shows how an American company's ambitions can lead to China having more influence beyond its borders. This isn't necessarily a bad thing. China undoubtedly has much it can positively contribute to the world. But most Americans don't want the Chinese government to have any ability to restrict the content of movies which appear in the U.S.

As the full NYT piece details, Disney has made a number of unusual sacrifices in order to operate in the mainland China market. For them to pay off, Disney's ultimate concern won't be the balance of American and Chinese influence it facilitates. They are simply pieces of a puzzle in reaching another goal.

Disney cares about Disney influence most.

Pizza Hut Introduces Its Own Durian Pizza in China

Last month I tried an unusual and odoriferous pizza at La César in Shenzhen. One half had a black mushroom topping, and the other half, more notably, had durian — a strong-smelling fruit people often describe as either glorious or revolting. Although I would be happier with just plain durian, my first experience with durian pizza was mostly a success, especially when eating the leftovers for breakfast.

About a week ago in Jieyang, I noticed Pizza Hut is getting into the durian pizza craze too for a limited time.

Tempted by this durian pizza?

Normally in a city such as Jieyang I would want to immerse myself in the local food offerings as much as possible. But I have been here long enough that I found it reasonable to sacrifice a meal to give Pizza Hut's durian pizza a try. So I stopped by for lunch today.

Partially-opened durian sans pizza

The menu included a special for a half and half pizza. I went with the durian and "New Orleans style" toppings.

Can't say I found the photo enticing

I took a seat on the second floor, which offered a great perch to watch the flow of traffic at the adjacent street intersection. Happily, no accidents occurred, and soon my pizza arrived.

As expected, a bit different from the photo

It was smaller than the La César pizza I ordered, not surprising given the lower cost, and the durian appeared to be distributed in larger chunks.

Like before, I started with the less sweet non-durian side. Also like before, one drawback to the split pizza was the strong durian smell somewhat interfered with enjoying the other side. Disappointingly, the New Orleans toppings reminded me far less of the American city than the New Orleans roasted chicken street food I ate last year in Hunan. Unlike most food in New Orleans, the pizza tasted rather bland. After just one bite I made a dash for Tabasco sauce. It didn't help that much. The durian side was also rather unspectacular, though the large chunks of durian on two of the slices were appreciated. I didn't consider adding any Tabasco sauce to it. One positive is all of the pizza had plenty of cheese.

This is an easy call. I don't expect to order the pizza again. Both halves of the pizza I had at La César were far superior in taste and texture. In all fairness to Pizza Hut's durian pizza, I am not a big fan of their style of pizza in general. There are other places for pizza I prefer in cities such as Shanghai, Hong Kong, or even Zhongshan. I am not familiar with Jieyang's pizza world, though, and could imagine Pizza Hut is one of the better options here.

So if you like Pizza Hut and also durian, their durian pizza may still be worth a try. But if I develop cravings for a durian pizza, I will hold out for somewhere else. And for dinner tonight, I will be returning to Jieyang's local delicacies.

More Watery Walmart Scenes in China

Earlier this year at a Walmart in Zhuzhou, Hunan, I saw a man removing a number of large fish from a tank.

He seemed to be choosing those near death, if not already there. It was not what I would call a thriving fish community, and I wondered what would be done with the removed fish. I wasn't able to come back the next day to see if there was a special on spicy fried fish.

A couple weeks before that at a Walmart in Loudi, Hunan, I saw a boy who appeared interested in catching a fish.

I wasn't able to stick around to see if he gave it a try. But at least most of the fish were swimming in a relatively normal fish-like manner.

Although these scenes aren't as dramatic as an escape attempt I saw in Chongqing, they too capture some of how Walmart has localized its groceries in China.

Tasting Something Local: Lemon Cheesecake Oreos

As reported in USA Today earlier this week:

[A Colorado mother] packed her 5-year-old daughter a ham and cheese sandwich, string cheese and a 4-pack of Oreos on Friday. The child came back home from Children's Academy with the Oreos and a note from her teacher which read, in part:

"Dear Parents, it is very important that all students have a nutritious lunch. This is a public school setting and all children are required to have a fruit, a vegetable and a heavy snack from home, along with a milk. If they have potatoes, the child will also need bread to go along with it. Lunchables, chips, fruit snacks, and peanut butter are not considered to be a healthy snack. This is a very important part of our program and we need everyone's participation."

The child said her teacher didn't allow her to eat the cookies during lunch, because they don't have enough nutritional value.

I am not sure about the statute of limitations in such cases, so to avoid any potential jail time for my mother I will refrain from sharing details of my own snacks as a child.

I liked Oreos as a kid, but now I now lean towards other items when I indulge in sweets. One exception occurred about two years ago in Shaoxing when I tried one of the localized flavors available in China. I discovered "peach-grape Oreos were not my thing".

Recently in Hengyang, I decided to try another flavor targeting China's consumers:



Thin Oreos with chocolate wafers and lemon cheesecake cream didn't sound appealing. But to my surprise, not only did I prefer them to peach-grape Oreos, I actually liked them. The mix of flavors worked in a manner similar to mint-chocolate. The lemon added a refreshing quality to the chocolate.

Maybe I should send a few packs to Colorado. I would be more than happy to receive some string cheese in return.

Local Flavors: Red Bean and Black Sesame Seed Ice Cream

In response to a post about milk ice cream, wallaby78 commented:

Beats the green/red bean ice cream, but not by much. Haikou has a Baskin Robbins and I loved it at first but last time the pralines and cream was so badly freezer burned that I won't be back any time soon.

A Baskin-Robbins previously opened near where I once lived in Shanghai. I never noticed many customers anytime I walked by, and it eventually closed. I assume I have tried their ice cream at their other, presumably more successful, stores in China, but I don't have any specific memories.

I do remember eating green bean and red been ice cream numerous times though. I enjoy both flavors, though there is a great range in quality. One recent source I saw was unexpected: McDonald's.

The above sign was at a small McDonald's outlet inside Chongqing's Niujiaotuo metro station. Unlike some other cities, eating food doesn't appear to be forbidden inside Chongqing's stations. This McDonald's is conveniently located in the path of passengers changing between two metro lines which intersect at Niujiaotuo.

Since red bean is commonly used in deserts or pastries in China, the ice cream represents another way McDonald's has localized its menu. Not only did I enjoy it far more than McDonald's Year of Fortune and Year of Luck Burgers, I ordered it on a number of occasions. It was a great way to follow up one of Chongqing's famous spicy & numbing meals, and for 5 RMB (about U.S. $0.80) it's a reasonable deal. Although the ice cream has a distinct red bean flavor, I wasn't able to detect a noticeable flavor in the cone. A McDonald's employee explained that was because there was no added flavor, just food dye to make it green.

The red bean ice cream was a temporary offering which recently ended while I was in Zhongshan. Fortunately, it was replaced with another localized ice cream flavor I enjoy: black sesame seed.

Like red bean, black sesame seed can be found in a number of desserts and pastries. And McDonald's wasn't the first place I have had black sesame seed ice cream. One of my favorites was at Very Thai Noodles in Taipei last year.

They named it the "black volcano". My recollection is that it tasted better than the McDonald's version but had a higher price. Of all the new flavors of ice cream I have tried in Asia which are not common in the U.S., black sesame seed is probably my favorite. So I heartily recommend trying a black volcano.

There are other flavors of ice cream more common in Asia than in the U.S. Someday I will write an ode or a post about the fruit which is another favorite flavor of mine — durian.

McDonald's Celebrates in China With Year of Fortune and Year of Luck Burgers

Last year, I wrote about McDonald's "incomparable" Prosperity Burgers — a special localized menu item available only near the Lunar New Year in places such as Hong Kong, Indonesia, Malaysia, and Singapore. For some reason, they are not available in mainland China.

Instead, for the holiday this year in mainland China McDonald's offers two other special burgers.

Image from McDonalds.com.cn

They don't look anything like a Prosperity Burger. Nor do they look like something I would want to eat. But I have been deceived by appearances of food in China before, so I decided to give them a try in Chongqing.

I started off with the Year of Fortune Burger (年年有利堡).

The main ingredients are a slice of chicken with a layer of skin topped by two fried shrimp sticks, lettuce, and a mayonnaise-based sauce.

After one bite, I wasn't feeling the fortune. After a second bite, I removed the shrimp sticks, took the skin off the chicken, and scraped off the mystery sauce. I found it passable after that, somewhat.

I left the McDonald's. After walking a couple of blocks, I worried if I waited much longer I would not be able to convince myself to finish this important project. So I stopped by another McDonald's.

Now was time to try the Year of Luck Burger (年年有福堡). It was not packaged in a box like the Year of Fortune Burger, possibly because it did not require as much structural support or shielding.

I thought the main ingredients were two pork sausage patties topped by a tomato, lettuce, and mystery sauce. I thought . . .

I took one bite into the burger and was overwhelmed by unexpectedly high levels of pork flavor. That is not a tomato on top of the sausage patties but instead something like a ham patty. I took a second bite, considered whether I could rescue the burger, and determined my luck had run out for the moment.

Fortunately for McDonald's, I am probably not their target customer for these burgers. Perhaps others in China enjoy them. But for me, the Prosperity Burgers far outshine their cousins in mainland China.

Mr. Panda's Inkfish Pizza in Shanghai

If people were told there is a restaurant in Dallas named Mr. Panda and asked what type of food it served, how would they respond? I would guess many Americans would guess "Chinese food", and they'd be correct.

If those same people were told there is a restaurant in Shanghai named Mr. Panda and asked what type of food it served, how would they respond? I am less sure of the response, but I would guess not many would say "pizza". However, "pizza" would indeed be a correct answer for Mr. Panda's seven locations in Shanghai.



Mr. Panda's pizzas are large, 18 inches in diameter, and can be bought whole or by the slice. Like a number of other pizza restaurants in China, some of its pizzas include toppings tailored to local tastes. Unlike a number of other pizza restaurants in China, if offers the "Inkfish Pizza" (the more dramatic Chinese name: 酷炫墨鱼汁披萨).




Yes, it has a black crust with yummy cephalopod ink. Unlike the squid ink breakfast hot dog I saw promoted at a Macanese restaurant in Hong Kong, I decided I had to give it a try. I bought a slice at 18 RMB (slightly less that U.S. $3) and found myself a place in the small seating area at Mr. Panda's location in the SML Center shopping mall.




I looked up for motivation and noticed that none of the people portrayed above me were eating the inkfish pizza.




And then I considered my slice of pizza.



The visual was not exactly inspiring and expectations for the pizza's taste were sinking. Based on some reactions from passersby, I could tell I was not the only one who found the pizza to be a bit unusual.

I might have stared longer, but I didn't want the pizza to get cold. So I took a big bite.

It definitely was not what I expected. I really liked it—as in I came back for another slice when I had a craving a week later. The crust had a very light flavor similar to the squid ink breads sold in some bread shops in China. It blended surprisingly well with the toppings, which included peppers, shrimp, and presumably either dried squid or cuttlefish. I suspect if people were blindfolded while tasting the pizza, many wouldn't notice anything unusual about the crust.

Mr. Panda is not the only restaurant in the world serving a squid ink pizza. But Mr. Panda does serve as an interesting example of how both pizza restaurants and their customers in China are changing. More on that topic later.

European Union Wants More "Effective and Complete" Censorship for the "Right to be Forgotten"

Several months ago in a deep look at the European Union's online "right to be forgotten", Jeffrey Toobin described what put it into place:

In 1998, a Spanish newspaper called La Vanguardia published two small notices stating that certain property owned by a lawyer named Mario Costeja González was going to be auctioned to pay off his debts. Costeja cleared up the financial difficulties, but the newspaper records continued to surface whenever anyone Googled his name. In 2010, Costeja went to Spanish authorities to demand that the newspaper remove the items from its Web site and that Google remove the links from searches for his name. The Spanish Data Protection Agency, which is the local representative of a Continent-wide network of computer-privacy regulators, denied the claim against La Vanguardia but granted the claim against Google. This spring, the European Court of Justice, which operates as a kind of Supreme Court for the twenty-eight members of the European Union, affirmed the Spanish agency’s decisions. La Vanguardia could leave the Costeja items up on its Web site, but Google was prohibited from linking to them on any searches relating to Costeja’s name. The Court went on to say, in a broadly worded directive, that all individuals in the countries within its jurisdiction had the right to prohibit Google from linking to items that were “inadequate, irrelevant or no longer relevant, or excessive in relation to the purposes for which they were processed and in the light of the time that has elapsed.”

As a recent press release clarifies, the ruling doesn't require the complete removal of applicable links:

The judgment expressly states that the right only affects the results obtained from searches made on the basis of a person’s name and does not require deletion of the link from the indexes of the search engine altogether. That is, the original information will still be accessible using other search terms, or by direct access to the source.

Google has since complied by censoring search results on a case by case basis only on its relevant European websites, such as Google.de for Germany. The "localization" of the censorship is similar to how Google once censored, and Bing continues to censor, search results for China — censorship specific to China's regulations only occurred/occurs on their China-based services. There would be an incredible outcry in places such as the U.S. and Europe had China insisted on their censorship rules applying elsewhere.

However, this is essentially what the E.U. now expects in regards to its "right to be forgotten". Mike Masnik sums up a key aspect of the new guidelines:

Specifically, it argues that if a person's privacy rights are violated by having results show up in search engines in Europe, then those same rights are violated if they show up in any non-EU search results as well (all emphasis in the original):

The [data protection working group] considers that in order to give full effect to the data subject’s rights as defined in the Court’s ruling, de-listing decisions must be implemented in such a way that they guarantee the effective and complete protection of data subjects’ rights and that EU law cannot be circumvented. In that sense, limiting de-listing to EU domains on the grounds that users tend to access search engines via their national domains cannot be considered a sufficient means to satisfactorily guarantee the rights of data subjects according to the ruling. In practice, this means that in any case de-listing should also be effective on all relevant .com domains.

Under EU law, everyone has a right to data protection.

The key line here is not actually bolded in the original. It's the "this means that in any case de-listing should also be effective on all relevant .com domains." Basically, if it can be reached from Europe, it has to be blocked. Or, in even shorter form, "EU regulations apply around the globe online."

Even if Google could address the E.U.'s concern by limiting E.U. users to local versions of Google or by censoring across all domains only for requests coming from the EU, either of these methods would likely be easily circumventable through use of a VPN, similar to how VPNs are used in China to access blocked websites. So, even though .com domains are specifically mentioned, it's hard to see how Masnik's summary for the guidelines, "E.U. regulations apply around the globe online", isn't accurate in the end since the search service providers are expected to guarantee "effective and complete protection".

In general, the related issues I've been pondering fall into two categories: 1) the merits and practicality of the "right to be forgotten" and 2) the E.U.'s apparent attempt to unilaterally apply it globally. I will have more to say about both later and will end this post with a question related to China which feels somewhat surreal to even have to ask.

Is it simply a matter of time until the E.U. demands a Chinese online search service accessible in Europe, such as Baidu, selectively "forget" something?

In other words, could the E.U. cause even more censorship in China?

The Pizza Dog at KFC in Hong Kong

As I walked down Nathan Road in Hong Kong one recent day, I noticed this sign:

It was the first time I had seen mention of KFC's pizza dog. Curious about the culinary fusion, I decided to eat at a KFC in Hong Kong for the first time.

Amazingly, I didn't see a single person order a pizza dog while I was in line. That didn't discourage me though. When it was my turn to order I said with great confidence, "One pizza dog!". I could tell the cashier was duly impressed by the conviction in my voice.

She then asked, "What would you like with it?"

With conviction again I replied, "I just want a pizza dog. Nothing else." She then told me I had to order something else with the pizza dog. The cashier pointed to the promotional sign which listed three different options and explained I would need to at least order a drink as well.

This requirement threw me for a loop, but life is life. And I now really wanted to try the pizza dog.

So I looked at the options, which appeared to be mostly Pepsi products. There is (or was) a building at Disney World's Epcot park in Florida where Coca-Cola offered free samples of its drinks from around the world which are not normally available in the U.S. Unfortunately, I didn't see anything equally exciting at the Hong Kong KFC. I went with a Diet Pepsi. I figured I was already taking in enough extra calories for the day.

Very soon after paying, I had a tray with a pizza dog (and a Diet Pepsi).

The pizza dog didn't look as glorious as it had in the sign, but at least it came in a big basket. Based on the texture of the cheese and its temperature, the pizza dog appeared to have been sitting at a lukewarm temperature for a while. I don't think they even bothered tossing it into a brick oven to reheat it. It tasted pretty much like a hot dog pizza without much tomato sauce. I wouldn't call it incomparable, but it was OK. I only ate half, but that's mostly because I wanted to save room for a more proper Hong Kong meal later.

Like McDonald's special Prosperity Burger, I have not seen the KFC pizza dog in mainland China. I don't think I'll go out of my way to eat one again soon, especially since I still need to try the squid ink hot dog.

McDonald's Offers Prosperous Chinese New Year Burgers

[Update at end]


Just over a year ago, I saw this McDonald's advertisement in Penang, Malaysia:

I had written about McDonald's customizing its menu for local markets before, but this was the first time I saw the McDonald's Prosperity Burger -- a special offering for the Chinese New Year holiday. It's back in Malaysia this year, as announced on the McDonald's Malaysia website.

Adam Minter, author of Junkyard Planet, recently expressed his excitement over the Prosperity Burger's return:

Best part of Malaysia during Chinese New Year is the Double Prosperity Burger @ McD's. Cc @MaraHvistendahl pic.twitter.com/2NZ88Cu813
— Adam Minter (@AdamMinter) January 25, 2014

He also provided a brief review:

The greatness of the Double Prosperity Burger is the black pepper sauce. Incomparable, and better than it looks. pic.twitter.com/gXYxtCXfev
— Adam Minter (@AdamMinter) January 25, 2014

Minter isn't alone in his opinion of the Prosperity Burger (see here and here), and he may be thrilled to hear it's available outside of Malaysia. For example, today in Hong Kong I saw an advertisement for the incomparable burger.

The McDonald's Hong Kong website has a similar promotion.

McDonald's in Hong Kong not only has the beef and chicken Prosperity Burgers found in Malaysia but also a pork version. Given that Islam is the state religion in Malaysia, it's not surprising McDonald's has not introduced the pork version there.

As the McDonald's Singapore website ...

and the McDonald's Indonesia website ...

... show, the Prosperity Burger is also available in Singapore and Indonesia. And it can be found in Brunei as well. McDonald's does not appear to have a website dedicated for Brunei, but in an article seeming more like an advertisement the Brunei Times noted the Prosperity Burger's "highly anticipated seasonal return":

Nothing is more mouth-watering than the anticipation of biting into the Prosperity Burger’s succulent, juicy beef patty, dripping with lip-smacking black pepper sauce, topped with silvered onions on a sesame seed bun, and many Bruneians look forward to its return every year.

Bruneians (and Adam Minter) rejoice!

Despite all of these countries offering the Prosperity Burger, most Chinese in the world will still have to seek another way to celebrate the Chinese New Year. McDonald's in mainland China does not offer the Prosperity Burger.

Perhaps people there can enjoy a McDonald's breakfast hot dog instead.



Update: Links to more recent posts here about the Prosperity Burger and other Lunar New Year burgers:

• "McDonald's Celebrates in China With Year of Fortune and Year of Luck Burgers" (2015)
• "Lunar New Year Burger Wars in China: Prosperity Burgers, Shrimp Burgers, and (Good) Luck Burgers" (2017)
• "McDonald's Brings Out the Prosperity Burger in Taiwan" (2018)

Chinese Twists to American Fast Foods

One of the joys for me of living in China is trying its broad variety of local culinary delights. Since I like much of the food in China, I find it curious when I find myself less accepting of localized American food products, which seems to mostly happen with what could be classified as junk food.

For example, although I have never tried the yogurt-cucumber or tomato-beef flavored Lay's potato chips I saw advertised in Beijing, I did once try Lay's blueberry-flavored potato chips. I stress "once". They weren't really that bad, but I'm not motivated to choose them again. I'll stick with barbecue-flavored potato chips. Or if I eat Chicken McNuggets at McDonald's in China I'll typically choose the garlic-chili sauce. It's OK, but I am almost embarrassed to admit how happy I was when I once discovered a McDonald's in Changsha with some American-style barbecue sauce. It appeared to be a leftover from days long past, but I figured the sauce probably had a rather long shelf life.

To show this isn't just about barbecue sauce, in another case one day late last year at a supermarket in Shaoxing, Zhejiang province, the localized version of an American cookie caught my attention.

It had the typical two chocolate wafers, but instead of white cream the filling was peach and grape flavored. I was curious, so I bought a box and tried one cookie. Again, I stress "one" — all I needed to realize that peach-grape Oreos were not my thing. Other Oreo flavors and versions of the cookie can be found in China as well. I have not tried them all, but someone else' review of them can be found here.

Whether it is potato chips, chicken nugget sauces, or cookies, I suspect some of these localized products would have a better chance of appealing to me if I didn't associate them with specific food items I have enjoyed long before (an intriguing issue to me). I can think of exceptions, though. For example, I prefer McDonad's taro pie, available in Hawaii as well, over its apple pie.

And no barbecue sauce is needed.

New Potato Chip Flavors in China

When I saw the above advertisement for Lay's potato chips at a subway station in Beijing, I recalled some of my personal experiences in China trying the local flavors of items common in the U.S., whether Oreos or toothpaste. I will say more about at least one of those experiences later.

For more about Lay's attempts in China to find the perfect flavors, whether they might be cola-chicken or blueberry, see an article by Abe Sauer on Brandchannel here.

Students Selling Christmas Apples in Quanzhou, China

Tonight I met five college students at a popular shopping street in Quanzhou, Fujian province.

They were all selling apples in paper bags with various designs for about 10 yuan (US $1.60) each. Why? Because it was Christmas Eve.

One of the ways some Chinese celebrate Christmas Eve is to give apples to their friends. The explanation usually given is that the Chinese word for "apple", "píngguǒ (苹果)", sounds somewhat similar the word for "peace", "píng'ān (平安)", and "Christmas Eve", "píng'ānyè (平安夜)". The apple simply represents goodness, happiness, or safety, and like wearing a Santa hat, the Christmas eve tradition has no religious connotation for these students. The apple giving practice is an example of how a Western holiday has been "localized" in China.

As I spoke to one of the students, further evidence of the tradition appeared when a young woman who was selling clothing nearby received an apple as a gift from her friend.

The students weren't just selling the apples to help others celebrate the holiday. They were all members of a business club at their university. Like many other students I have spoken to, they are concerned about gaining the "real world" experience they feel their school does not provide. The club helps to arrange such opportunities, even if it involves selling apples on the street and avoiding the local chengguan (城管), urban management officials whose responsibilities include cracking down on unlicensed street vendors. The occasionally appearing chengguan weren't perceived as a significant obstacle, but the students still found their job to be rather difficult. It didn't seem that many passersby needed a tastefully packaged 10 yuan apple. But at least the students had already sold 15 that night, including 7 to one woman alone.

In a later post, I will share a religious aspect to the Christmas holiday that I stumbled upon in Quanzhou. I didn't see any apples or chengguan involved, but there were plenty of police.

The New York Times in Chinese with Twitter & Facebook

The New York Times has unveiled a new Chinese-language web site at cn.nytimes.com. As Christine Haughney reported, the Times will not adjust its news coverage despite targeting readers in a place where there is significant censorship, mainland China:

The Times Company, which is well aware of the censorship issues that can come up in China, stressed that it would not become an official Chinese media company. The Times has set up its server outside China and the site will follow the paper’s journalistic standards. Mr. Kahn said that while the Chinese government occasionally blocked certain articles from nytimes.com, he was hopeful that the Chinese government would be receptive to the Chinese-language project.

“We’re not tailoring it to the demands of the Chinese government, so we’re not operating like a Chinese media company,” Mr. Kahn said. “China operates a very vigorous firewall. We have no control over that. We hope and expect that Chinese officials will welcome what we’re doing.”

Although the Times claims it will not be "tailoring it to the demands of the Chinese government" there are several signs that design changes have been made to better suit Chinese readers. One obvious example is the ability to easily share articles on popular online services in mainland China such as Sina Weibo, QQ, and Renren.

As seen in the above example (from the article here), options are also available to share on Twitter and Facebook -- notable since both of these services are currently blocked in mainland China. If either of those options are selected while behind China's Great Firewall it is not possible to post the article. It is also notable that there does not appear to be a button to share articles on Google+, an option that is readily available on the main www.nytimes.com site.

However, people in mainland China may not be the only Chinese readers being targeted with the site as evidenced by the option for displaying the text in Traditional Chinese. That is the style of characters commonly used in a number of Chinese-speaking areas outside of mainland China, such as Taiwan and Hong Kong. In those places Twitter and Facebook are freely available.

I tested posting articles onto Twitter while using a VPN in China to get through China's Great Firewall and had no problem. However, I ran into a problem when I tested the Facebook option. For any article I tried I was brought to this page:

I have never heard of Paulie Sharer, and I wonder whether his last name is somehow tied to this obvious error. A quick online search suggests that the problem is not specific to me nor the Times, but at this point there is not much more I can say definitively. Although I am sure this is not the result the Times desires, I can only imagine whether Paulie Sharer is noticing an unusual number of friend requests.

Regardless, I consider it a positive that The New York Times will be able to reach more readers in mainland China. And many will be watching to see if China later blocks the site -- just like what recently happened to Bloomberg's news site (H/T Edward Wong).

Insights and Headaches for Apple: The iPncne in China

As I mentioned before, unauthorized Apple stores are common in many regions of China. At the moment it appears that Apple will only respond to "fake Apple Stores" that take extreme measures to imitate a genuine Apple Store. A related area of concern for companies such as Apple is protecting not how their trademarks are used in stores but on products being sold.

I previously shared an example of a Chinese mobile phone that appeared to inappropriately use some of Apple's trademarks. I will call it the "Think Different Phone". It certainly is not alone in China. For another example, here is a phone I saw for sale in Yinchuan, Ningxia:

It would be hard to believe that the resemblance of the apple logo and the iPncne name to Apple's trademarks is accidental. In the post about the Think Different Phone I discussed how despite their possible trademark infringements such phones can provide insights about features possibly desired in the local market. As an example, similar to the Think Different Phone the iPncne has a dedicated button for QQ -- a popular social networking service in China:

But what I believe can be an even more important feature is found inside the phone:

The capability of this iPncne to hold dual SIM cards would matter to many Chinese mobile phone users. For an example of why, see my post from last year "Mobile Phones in China: Local Rates, Fashion, and Fakes".

Even for the many Chinese-designed phones not noticeably violating any trademarks, "localizations" such as the above can indicate features desired not only in China but elsewhere as well. But regardless of any insights the iPncne may provide, Apple is probably still concerned about protecting its trademarks. Even if the apple logo and iPncne name do not cross the line for Apple, I think there is something on the back of the phone that would be hard for them to accept:

In small print below the iPncne name is written:

Designed by Apple in California Assembled in China

At least the second half of the line seems true. I have not contacted Apple for comment about the first half. I suspect their private comments would be much more interesting.

Imitators Show There is Room to Grow in China for McDonald's and KFC

In an earlier post, I discussed McDonald's localized offerings in China and shared an example of how it was providing a positive impression of the U.S. to some Chinese. Kenneth Chan, McDonald's China CEO, in a recent interview on Fortune pointed out that not only is McDonald's localizing its products and services for China as a whole but also for specific segments of Chinese consumers:

We are reinventing ourselves to adapt to the changing constituency. By the end of 2013, about 80% of our restaurants will undergo reimaging. The design will vary by areas. In business districts with many young professionals, we have kiosks for coffee and pastries. In areas with young families, we reserve places for kids to play or host parties. We also offer customer-friendly amenities like free Wi-Fi and McCafes. We want to stay relevant to the younger population and make them stay longer.

He also discussed his plans for growth:

Opening new restaurants is another top priority. In addition to opening our own restaurants, we have stepped up our franchise programs. After all, McDonald's is a franchise company. At present, 80% of McDonald's worldwide are owned by franchisees; in China, only 36 restaurants were franchised by 2011. We are working hard on this.

In addition to the conventional franchise model in mature markets like the U.S., we also implement what we call a "developmental licensee" model. In certain provinces where we don't have the capacity to reach out for many years, we are looking for licensee partners who have strong financial backgrounds and strong business experience. China had seven conventional licensees and two developmental licensees as of 2011. It's still a very low percentage and over a very short time that will change. The pace of franchising in China depends largely on finding the right partners.

Chan's comments suggest that there remain challenges for McDonald's to grow in China, even if they know of additional markets where their restaurants would be welcomed by Chinese consumers. There are many reasons to believe additional demand exists in China for McDonald's and KFC, who has a larger presence and is also localizing in China. In fact, I believe I have seen relevant evidence during my explorations of China's different regions.

For example, I saw the following restaurant at a pit stop between Guangzhou and Wuzhou, Guangxi:

I am not sure what to call this restaurant since there are both "Wichael Alone" and "Michael Alone" signs. Regardless, I think it is fair to say that McDonald's served as an inspiration.

More often, I have seen stores that are very similar to KFC -- whether in Southeast China in Shanwei, Guangdong province:

Northeast China in Dunhua, Jilin province:

Or Southwest China in Chongzuo, Guangxi:

The KMC is my current favorite. Like the CBCs and other KFC-lookalikes its menu appeared to be nearly identical to a KFC menu. But the KMC went the extra distance to bring a KFC-like experience:

As I pondered KFC's "it's finger lickin' good" slogan on the wall of the restaurant I sipped at a Pepsi. I then began to wonder if the Pepsi was real. The Pepsi sat untouched after that.

Although I cannot say whether such restaurants run afoul of any laws, I find it notable that wherever I see a (what appears to be) genuine KFC or McDonald's I rarely see an obvious imitator nearby. For example, at the time of my visits I did not see a KFC anywhere in Shanwei, Dunhua, or Chongzuo. Given that pattern, I suspect it is only a matter of time before KFC or McDonald's enter such markets and push out any imitators who have kindly shown that a demand exists. Even if legal action is not an option, there is good reason to believe that Chinese consumers will want an authentic experience, especially since there does not appear to be a significant difference in price (if any). Apparently, KFC agrees that authenticity will matter:

Sign inside a real Chinese KFC in Yinchuan, Ningxia

Donuts China Style

I have commented before on how Western companies, such as McDonald's, KFC, and Dairy Queen, have localized their products for China's market. Writing for Reuters Eveline Danubrata reports about a another food localization:

Pork donuts may not be palatable to Americans or Europeans, but the parent company of Dunkin' Donuts and the Baskin-Robbins ice cream chains is catering to local tastes in China, where it aims to open another 100 stores in the next two to three years...

"Donuts are a very flexible product. You can do savory donuts, you can do donuts with shredded pork -- that's in China," Chief Executive Officer Nigel Travis told Reuters in an interview.

"We also have a range of other savory products that we have been testing and introducing country by country."

Danubrata also notes that pork donuts probably would not work well is Muslim countries due to religious rules forbidding the eating of pork. In that light, I suspect Dunkin' Donuts is not planning to introduce them in Israel as well.

In The Washington Post Keith B. Richburg also commented on donut localizations in his article about the "doughnut wars" in Shanghai:

...Chinese customers seem more interested in the drinks than the sugary doughnuts. And following the lessons of other American retailers, the doughnut shops are finding that some of their best-sellers would be barely recognizable back home, like Dunkin’s dried pork and seaweed doughnut, or the doughnut made with dried Bonito fish...

Dunkin’, like some of the other chains, is discovering that coffee and other drink offerings, including jasmine green tea and lichi green tea, are more popular than doughnuts.

Krispy Kreme, meanwhile, is offering its quarters, with easy chairs and quiet surroundings, as a place to relax, surf the Web and enjoy a huge variety of cream-filled doughnuts at a more leisurely pace.

“People stay a long time,” Lim said. Here in Shanghai, he said, “we position ourselves differently than in the West.”

However, he also questions whether donuts are a good fit for China:

But what isn’t at all clear is whether Chinese consumers particularly like doughnuts.

The average Chinese breakfast might consist of congee, or rice porridge, maybe some soybean milk, sometimes fried noodle, or perhaps a dry roll or bun. The idea of something as sweet as a glazed or cream-filled doughnut in the morning would seem an anathema to many local palates.

Based on my own food explorations I am not as skeptical about the future of donuts in China. Here is one reason why:

A pile of deliciousness

These tasty objects are called xián jiānbing (咸煎饼) and roughly equivalent to a large bagel in size. I am not aware of a English translation (and a literal character by character translation does not seem to do the trick) so I will call them Chinese donuts. They go especially well with a tasty bowl of congee (a Chinese rice porridge) but can be happily enjoyed on their own. The Chinese donuts cost less than US 50 cents each, are much denser than typical Western donuts, and are very filling. The ones above are from a simple but wonderful local restaurant -- Wuzhanji (伍湛记). I would list the restaurant as a must visit for foodies (they also have excellent steamed rice-flour rolls) and is perfect for a morning meal. Based on the crowds I regularly saw at Wuzhanji, they certainly have no problem selling plenty of Chinese donuts.

Of particular relevance is that these Chinese donuts are not very sweet and instead fit more in the "savory" category. Based on it and many other similar foods I have had in China, when I read about the localized products at Dunkin' Donuts I was not at all surprised (I have yet to try any of them though). I think the Chinese donuts provides a useful example of how understanding what is available in China can provide some hints to foreign companies about how they can best localize their offerings in China or how some offerings may not require any changes (see here for a similar discussion about mobile phones).

I should point out that you cannot find Wuzhanji and its special Chinese donuts in just any city in China. As far as I know it only exists around Guangzhou -- a city where the density of Western donut shops currently appears to be far less than Shanghai. But I suspect Wuzhanji and its Chinese donuts could fare well in Shanghai. If Wuzhanji opens branches in Shanghai there could be yet another twist in China's donut wars.

McDonald's in China - Localized, Growing, and Influencing

When I compared a KFC and McDonald's in Yueyang, China, I mentioned that KFC has had much success in China and that one of the possible reasons is its localized menu. While McDonald's success hasn't been as great, that doesn't mean McDonald's hasn't localized its menu or that it is doing poorly in China.

Some examples of its localized menu include a taro pie and some different dipping sauces for its Chicken McNuggets -- such as chili garlic. See here for more examples of McDonald's food offerings in China (in Chinese and may not load in some browsers). I haven't bothered to try quantifying it, but my impression is that KFC's menu has been more modified from its US version than McDonald's. Whether that could be a key reason KFC has seen more success in China is another question.

And although the McDonald's in Yueyang wasn't busy at the time I visited, I've seen plenty of others that were. For example, recently I passed by a McDonald's in Hengyang, Hunan province:

and another in Chenzhou, Hunan province:

Both were full of customers eating and drinking. There are also broader signs of McDonald's success in China. As reported on Bloomberg News this past summer:

McDonald’s Corp. (MCD), the world’s largest restaurant chain, should open an outlet a day in China as it challenges Yum! Brands [owner of the KFC and Pizza Hut brands] for dominance in Asia’s largest economy as rising salaries boost spending on fast food.

“We should be opening a restaurant every day in the next three to four years” in China, Peter Rodwell, company president for Asia excluding Japan, Australia and New Zealand, said in an interview in Singapore today. “We’re now opening a restaurant every other day.”

Even with that growth rate, though, McDonald's has its work cut out if it wants to surpass KFC. Not only is KFC currently far ahead of McDonald's in terms of number of stores in China, but it's likely to expand further. In fact, I've seen signs of potential new locations for KFC that I'll share in a later post.

McDonald's growth isn't good just for the company, but it has benefits for China as well. Again, from Bloomberg News:

The Oak Brook, Illinois-based company has said it plans to recruit 50,000 employees in China this year, including 1,000 university graduates as management trainees. McDonald’s, which trails Yum in number of Chinese locations, moved its China training center from Hong Kong to Shanghai last year.

Furthermore, the benefits aren't limited to McDonald's and China. For example, last April I had the opportunity to speak with these two employees of a McDonald's in Nanning, Guangxi:

Happy McDonald's employees

The young lady on the left was a college student and working part-time. The extra income was useful for her, and she preferred the job to what she did the previous year when I first met her -- promoting a brand of tea at a large park in Nanning:

Green tea promotion

What was most notable, though, was how she absolutely gushed about how much she enjoyed working at McDonald's -- the friendly atmosphere, the supportive management, etc. She didn't think she could have such a positive work experience in most similar Chinese companies, and her experience clearly influenced her view of the US in a positive manner. I can't provide any numbers, but based on other conversations I've had I know she isn't alone in her feelings. This is yet another example of America's "soft-power" that I have mentioned before in a very different context.

So, if McDonald's is localizing its menu for China and is playing a role in shaping Chinese people's opinions of the US it raises an important question.

Should McDonald's ever offer the McRib in China?