China's Labor Market opportunities look like they are cooling for outsiders, Economist discusses Chinese Nationals returning

The Economist has a post on Chinese Nationals returning to China after a foreign education and work experience.  Given many Chinese Nationals have a hard time returning for a job makes you wonder how easy it is for foreign companies to do business in China.

The author did a good job of tying in the idea of Sea Turtles returning.

Plight of the sea turtles

Students coming back home helped build modern China. So why are they now faring so poorly in the labour market?

Jul 6th 2013 | SHANGHAI |From the print edition

“I LEFT in 1980 with only three dollars in my pocket,” recalls Li Sanqi. He was one of the first allowed to study overseas after the dark days of the Cultural Revolution. Like most in that elite group, he excelled, rising to a coveted position at the University of Texas, while launching several technology firms. Now he is a senior executive at Huawei, a Chinese telecoms giant, enticed back by the chance to help build a world-class multinational.

Mr Li seems the perfect example of a sea turtle, or hai gui (in Mandarin, the phrase “return across the sea” sounds similar to that animal’s name), long applauded in China for bringing back advanced skills. In the past such folk reliably reaped handsome premiums in the local job market, but no longer. Sea turtles are not universally praised, the wage differential is shrinking and some are even unable to find jobs. Wags say they should now be called hai dai, or seaweed. This is a startling turn, given their past contributions.

To read the story you need to keep in mind that the turtles are the foreign nationals returning.  But, part of the problem for the returning is they picked up bad western habits.  Like, transparency, meritocracy, and ethics.

As China has boomed, its managers have started to shed their inferiority complex. A senior executive at Tencent, a Chinese social-media giant, says he still poaches sea turtles from foreign firms, but finds they have difficulty managing local engineers. A European investment banker says turtles often cling to quaint Western notions like transparency, meritocracy and ethics, which puts them at a disadvantage in China’s hyper-Darwinian economy, where locals are more willing to do whatever the boss or client wants.

The article closes going back to the beginning of Mr Li who joined Huawei as an executive.  His wife and children choose to live in America.

The hard truth is that Chinese abroad often have ambivalent attitudes towards their homeland. The wife and children of Huawei’s Mr Li, the seemingly archetypal sea turtle, still live in America. Rather than just shovelling out subsidies, Chinese officials might do better to strengthen the rule of law, root out corruption and clean up China’s air, water and food. Sea turtles would be sure to notice.

Hong Kong is thinking of going underground for data centers

Register has a post on Hong Kong's investigate of going underground for data centers.

Hong Kong plans cavernous underground data centres

Going underground

Free whitepaper – EMA advanced performance analytics report

Engineering hurdles

According to Amod Jayawant, director of critical environments at real estate services firm CBRE, digging a data bunker won't be easy.

“It’s a great idea – as you know underground rock formations, caves, caverns etc. maintain an even all year round cool temperature,” he told El Reg. “However, the technical side of this equation is not so pretty. It’s really a bunch of questions, the answers to which are sometimes not feasible or extremely expensive.”

These questions revolve around how to supply power and fit generators; how to vent diesel fumes and get fresh air in; how to get diesel tanks underground; and how to dehumidify the area, he explained.

Microsoft launches China Cloud Services

Microsoft and 21Vianet have partnered to provide Microsoft Cloud services in China.

Microsoft Partners With 21Vianet to Offer China-Based Cloud Services

 

By Paul Mozur

BEIJING--Microsoft Corp. (MSFT) said it is partnering with Chinese data center services provider 21Vianet Group Inc. (VNET) to offer cloud services based on data centers within China.

In a post on its website Thursday, Microsoft said it licensed its cloud-based Office 365 and Windows Azure software to Nasdaq-listed 21Vianet, which will allow clients in China to store data in Chinese data centers.

Microsoft added that it would offer clients in China the option to choose between hosting their data within or outside China. The decision about where to host data for a company can be highly sensitive as it is effectively outsourcing the storage of often critical data to a third party. Chinese storage centers are also subject to Chinese laws, which analysts say can at times provide less protection.

GigaOm's Barb Darrow points to the original Microsoft blog post that announces the new services.

Microsoft takes Azure to China

Chasing a potentially huge market, Microsoft has inked a pact with the municipality of Shanghai and with ISP 21Vianet to offer Windows Azure services in China. The deal could be huge but also problematic, given problems Google and other U.S. companies have had in China.

Here is the Microsoft post.

Cloud OS is coming to China

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Today, I’m pleased to announce that Microsoft is bringing our premier public cloud platform Windows Azure to China.  Following our recent launch of Windows Server 2012, this represents the next step in delivering our Cloud OS vision to China by delivering multi-tenant public and private cloud services to millions of businesses in China.

We believe customers should have a choice in how and when they move to the cloud, and Windows Server 2012 and Windows Azure give customers the ability to choose the right cloud solutions for them. Whether it is on premise in their own datacenter or using the public cloud capabilities of Windows Azure, we are committed to giving our customers and partners the best solutions to meet their business needs.

Today, we signed a Memorandum of Understanding (MOU) with the municipality of Shanghai; and we have signed a landmark agreement to license Microsoft technologies to 21Vianet, who will offer Windows Azure services in China from local datacenters. This will meet the demands of customers in China.  

We’re excited to soon be able to satisfy the enormous appetite in China for a public cloud platform with the security and reliability features that customers demand from Microsoft.  A recent Forrester Research report on cloud computing (Forrester Research, Sizing The Cloud Markets In Asia Pacific, Feb. 3, 2012) found that the public cloud market in China will grow from $297 million in 2011 to $3.8 billion in 2020. With today’s announcement, Windows Azure is well positioned to have a strong presence in China and to serve local businesses seeking to take advantage of the cloud on their terms.

- Doug Hauger, General Manager, Microsoft Server and Tools Division

Some articles on China Data Center market

It can be hard to figure out what is going on in China's Data Center Market.

Here are three articles that a friend sent that happen to be all from DatacenterDynamics.

Tencent's data centers is one.

Company profile: China’s Tencent

Tencent is one of the largest cloud providers in China, a country with an insatiable appetite for internet-based services

2 August 2012 par Laura Luo -   

 
   
 
 
 
 
Company profile: China’s Tencent
Design sketch for Tianjian cloud computing data center of Tencent

Tencent, one of the largest internet service providers in China, has been taking aim at China’s cloud computing market, building new cloud computing data centers using advanced environmentally friendly and energy-efficient technologies. It has also been focusing heavily on research and development.

China's Cloud market.

China’s growing cloud industry

China’s cloud computing market is estimated to reach US$31.6bn in the next three years, thanks to investment from public and private players

21 May 2012 par Penny Jones - DatacenterDynamics

 
   
 
 
 
 
China’s growing cloud industry
China's cloud computing industry is preparing for growth

Cloud computing is emerging as one of the China’s fastest growing industries. The nation may account for less than 3% of global cloud computing market share – valued at US$90bn in 2011) but it is growing with an annual rate of 40%, according to analyst firm Gartner.

And some of the cloud build out.

China cloud computing roundup: R&D and newbuilds

Alcatel, Insigma, Inspur, Microsoft and more

26 July 2012 par Laura Luo -   

 
   
 
 
 
 
China cloud computing roundup: R&D and newbuilds
 

Xijian, a province in Northwest China, will build one of the largest cloud computing data center clusters in China in the next 10 years, according to the Tianshan Cloud Plan for the Xinjiang Province.

Two cloud computing industrial bases will be built in Urumqi and Karamay respectively. Once complete, the data center cluster will host a total of 250,000 cabinets and have an annual turnover of 32bn CNY.

Tencent the 800 lb Gorilla of China, resistance is futile

WSJ has an article on how well Tecent is doing in China.

 

Internet Breadth Helps Buoy Tencent

As Western social-media and Internet companies from Facebook Inc. FB +2.99% toGroupon Inc. GRPN -2.81% struggle to meet investor expectations on earnings and share price, their biggest peer in China is still going strong.

The share price of Tencent Holdings Ltd., 0700.HK -0.17% China's leading Internet company—with businesses from online gaming to instant messaging—has soared 48% this year in Hong Kong. Analysts expect that its results for the quarter ended June 30, to be released Wednesday, will show healthy growth, despite slowing online advertising outlays as the Chinese economy softens.

 

How big is Tencent?  It is referred as "life, death, or Tencent"

Tencent's speedy execution of new projects like WeChat has led Chinese technology entrepreneurs to coin the phrase "life, death or Tencent"—meaning the choice is between cooperating with Tencent or being crushed by it, so unlikely is the option of outcompeting it.

When upstart smartphone company Xiaomi launched a mobile-chat service in 2010, Chief Executive Lei Jun told a conference in May, it expected Tencent to take a while to launch a rival service.

"We thought maybe it would take six months," he said, but in fact WeChat was out within two months—and it has proved far more popular than Xiaomi's service.

At first I thought of the 800 lb Gorilla 


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But, in the WSJ article it sounds more like tho Borg.

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