In 2008 following the financial crisis, a paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” was published, detailing the concepts of a payment system. Bitcoin was born. Bitcoin gained the attention of the world for its use of blockchain technology and as an alternative to fiat currencies and commodities. Dubbed the next best technology after the internet, blockchain offered solutions to issues we have failed to address, or ignored over the past few decades. I will not delve into the technical aspect of it but here are some articles and videos that I recommend:

How Bitcoin Works Under the Hood

A gentle introduction to blockchain technology

Ever wonder how Bitcoin (and other cryptocurrencies) actually work?

Fast forward to today, 5th February to be exact, authorities in China have just unveiled a new set of regulations to ban cryptocurrency. The Chinese government have already done so last year, but many have circumvented through foreign exchanges. It has now enlisted the almighty ‘Great Firewall of China’ to block access to foreign exchanges in a bid to stop its citizens from carrying out any cryptocurrency transactions.

To know more about the Chinese government stance, let’s backtrack a couple years back to 2013 when Bitcoin was gaining popularity among the Chinese citizens and prices were soaring. Concerned with the price volatility and speculations, the People’s Bank of China and five other government ministries published an official notice on December 2013 titled “Notice on Preventing Financial Risk of Bitcoin” (Link is in Mandarin). Several points were highlighted:

1. Due to various factors such as limited supply, anonymity and lack of a centralized issuer, Bitcoin is not a official currency but a virtual commodity that cannot be used in the open market.

2. All banks and financial organizations are not allowed to offer Bitcoin-related financial services or engage in trading activity related to Bitcoin.

3. All companies and websites that offer Bitcoin-related services are to register with the necessary government ministries.

4. Due to the anonymity and cross-border features of Bitcoin, organizations providing Bitcoin-related services ought to implement preventive measures such as KYC to prevent money laundering. Any suspicious activity including fraud, gambling and money laundering should to be reported to the authorities.

5. Organizations providing Bitcoin-related services ought to educate the public about Bitcoin and the technology behind it and not mislead the public with misinformation.

In layman’s term, Bitcoin is categorized as a virtual commodity (e.g in-game credits,) that can be bought or sold in its original form and not to be exchanged with fiat currency. It cannot be defined as money- something that serves as a medium of exchange, a unit of accounting, and a store of value.

Despite the notice being dated in 2013, it is still relevant with regards to the Chinese government stance on Bitcoin and as mentioned, there is no indication of the banning Bitcoin and cryptocurrency. Rather, regulation and education about Bitcoin and blockchain will play a role in the Chinese crypto-market.

A similar notice was issued on Jan 2017, again emphasizing that Bitcoin is a virtual commodity and not a currency. In September 2017, the boom of initial coin offerings (ICOs) led to the publishing of a separate notice titled “Notice on Preventing Financial Risk of Issued Tokens”. Soon after, ICOs were banned and Chinese exchanges were investigated and eventually closed. (Hindsight is 20/20, they have made the right decision to ban ICOs and stop senseless gambling). Another blow was dealt to China’s cryptocurrency community in January 2018 when mining operations faced serious crackdowns, citing excessive electricity consumption.

While there is no official explanation on the crackdown of cryptocurrencies, capital controls, illegal activities and protection of its citizens from financial risk are some of the main reasons cited by experts. Indeed, Chinese regulators have implemented stricter controls such as overseas withdrawal cap and regulating foreign direct investment to limit capital outflow and ensure domestic investments. The anonymity and ease of cross-border transactions have also made cryptocurrency a favorite means for money laundering and fraudulent activities.

Since 2011, China has played a crucial role in the meteoric rise and fall of Bitcoin. At its peak, China accounted for over 95% of the global Bitcoin trading volume and three quarters of the mining operations. With regulators stepping in to control trading and mining operations, China’s dominance has shrunk significantly in exchange for stability.

With countries like Korea and India following suit in the crackdown, a shadow is now casted over the future of cryptocurrency. (I shall reiterate my point here: countries are regulating cryptocurrency, not banning it). Without a doubt, we will see more nations join in in the coming months to rein in the tumultuous crypto-market. Indeed, some kind of order was long overdue. Over the past year, cryptocurrencies are experiencing price volatility unheard of and ICOs are happening literally every other day. In 2017, the total market capitalization rose from 18 billion USD in January to an all-time high of 828 billion USD.

Nonetheless, the Chinese community are in surprisingly good spirits despite crackdowns. Online and offline communities are flourishing (I personally have attended quite a few events and visited some of the firms) and blockchain startups are sprouting all over China.

Major blockchain firms such as NEO, QTUM and VeChain are getting huge attention in the country. Startups like Nebulas, High Performance Blockchain (HPB) and Bibox are also gaining a fair amount of traction. Even giants such as Alibaba and Tencent are also exploring the capabilities of blockchain to enhance their platform. The list goes on and on but you get me; it’s going to be HUGGEE!

The Chinese government have also been embracing blockchain technology and have stepped up efforts in recent years to support the creation of a blockchain ecosystem.

In China’s 13th Five-Year Plan (2016-2020), it called for the development of promising technologies including blockchain and artificial intelligence. It also plans to strengthen research on the application of fintech in regulation, cloud computing and big data. Even the People’s Bank of China is also testing a prototype blockchain-based digital currency; however, with it likely to be a centralized digital currency slapped with some encryption technology, its adoption by the Chinese citizens remains to be seen.

The launch of the Trusted Blockchain Open Lab as well as the China Blockchain Technology and Industry Development Forum by the Ministry of Industry and Information Technology are some of the other initiatives by the Chinese government to support the development of blockchain in China.

A recent report titled ” China Blockchain Development Report 2018″ (English version in the link) by China Blockchain Research Center detailed the development of the blockchain industry in China in 2017 including the various measures taken to regulate cryptocurrency in the mainland. In a separate section, the report highlighted the optimistic outlook of the blockchain industry and the massive attention it has received from VCs and the Chinese government in 2017.

In summary, the Chinese government have shown a positive attitude towards blockchain technology despite its enforcement on cryptocurrency and mining operations. China wants to control cryptocurrency, and China will get control. The repeated enforcements by the regulators were meant to protect its citizens from the financial risk of cryptocurrencies and limit capital outflow. As of now, it is legal for Chinese citizens to hold cryptocurrencies but they are not allowed to carry out any form of transaction; hence the ban of exchanges. As the market stabilizes in the coming months (or years), we will see undoubtedly see a revival of the Chinese crypto-market. Blockchain and cryptocurrency come hand-in-hand (with the exception of private chain where a token is unnecessary). Countries thus cannot ban cryptocurrency without banning blockchain the awesome technology!

One thing we can all agree on is that blockchain is still at its infancy. Many exciting developments awaits us and right now is definitely the best time to lay the foundation for a blockchain-enabled world.

Last but not least, HODL!

When the nation of China, is the way in which the American accent makes a mockery of (or takes the piss out of) American sexual intercourse (not gender, but sexual intercourse as it pertains to life in the United States), a type of culture is the way in which a type of accent makes a mockery of a type of sexual intercourse; when a type of culture is the way in which a type of accent makes a mockery, of a type of sexual intercourse, the result is a type of sexual intercourse having nothing to do with a type of accent attempting to befriend a type of culture.

A type of accent is not accent. A type of culture is not culture, and finally, a type of sexual intercourse is not sexual intercourse: when non-sexual activity is detached from no accent trying to support no culture, the very simplicity of sexuality is detached from communication trying to destroy culture – communication trying to end culture is culture trying to help communication.

Culture trying to help communication is the inability to try to help communication. The inability to try to befriend communication is communication being the avoidance of the inability to try – the inability to try is just avoidance, and so, communication can mean the avoidance of avoidance, or more plainly the sheer and utter fact of interaction.

When communication is actual communication (when communication is what it’s supposed to be), it means that sexuality is detached or is an enemy of communication: so what could this mean?

When sexuality is opposed to communication being itself, communication being itself is the friend of sexuality: communication being itself is self being avoidance, and self as an avoidance means to engage in sex.

The self is an opposite. An opposite that’s an opposite is an opposition which isn’t possible – the impossibility of hostility is what it means to have sex.

The impossibility of hostility is the hostility of possibility. The hostility of possibility is a resistance toward magic – sex is what it means to suppress magic.

If such is the case, and magic is oppressed by sexual intercourse, it then must stand to reason that sex and all that’s connected to sexual intercourse is the cause of magic – magic wants to help sexual intercourse, to keep onto its dignity.

Sex is the cool. Cool is dignity, and as such, magic is the endeavour to help coolness keep onto itself (which in effect means that magic is the embodiment of the absence of coolness).

The absence of cool is the victimised; the victimised is the mocked, and the shunned – the mocked and the shunned aspects of reality exist to prop up the non-mocked and the non-shunned.

In other words: slavery and homelessness are intended by reality as a device to protect mansions and exploitation, but only from the perspective that it’s only slavery and homelessness and neither mansions or exploitation which mean consciousness and reflection.

In order for reality to protect mansions, and to protect taking the piss, the price that reality pays is to only give self-awareness and morality to homelessness and slavery.

The world is a dynamic place and nothing is static. Nations produce leaders who make their countries great and some do not have the vision and let their countries down. A classic example is China and India in Asia. The 19th and 20th century saw a see-saw between the two for a prominent position in Asia and as things stand the Chinese dragon is breathing fire all around while the Indian elephant scurries to find a place for itself.

Background

At the turn of the century, the omnipotent power in Asia was the British. They were astute and had de-fanged the dragon. By virtue of they ruling India, the country was much ahead of China. It was a safe period with Tibet a classic buffer state between India and China. Industry began to thrive in India and the British set up a network of rail and roads that was unrivaled in the world. Jamshedji was allowed to set up the first steel plant outside of Japan and an aircraft factory was operational in Bangalore. China at that time was involved in internal strife as warlords with massive private armies ruled and battled each other. There were near anarchy and no industry worth the name existed. There was also another two players in China namely the Kuomintang and Communist party who battled it out with each other.In contrast, India was peaceful and making progress.

Shifting Fulcrum

Towards the middle of the last century, the fulcrum began to shift towards China. The communists under Mao Tse Tung won a decisive victory and General Chiang Kai Shek fled to Formosa. At that time in 1948, even a bicycle was manufactured in China and agriculture management was primitive. In India, a steel plant was functional and cars and airplanes were being made.There was no comparison with China as the rupee had near parity with the British pound. The Chinese currency was worthless.

India also inherited all the rights of the Imperial British power. Tibet was a buffer state and the Indian army was allowed to station troops at strategic places in Tibet. Logically India, under Nehru, should have built on this platform, but within a decade China stole a march over India.The Chinese communists under Mao had one track vision to undo the wrongs of history and make China a great power. In contrast, this strategic vision was lacking in the Indian leadership led by Nehru and his successors. Almost all the rights the British had so meticulously built up in Tibet were given up. The right to maintain troops in Tibet was squandered and Nehru fearing a military coup decided to give the military the lowest priority.

Chinese supremacy

China attacked Tibet and occupied it and Nehru just sat and watched. This was the turning point in Asia and established China as the major power. A short border war in 1962 followed with a decisive Chinese victory and all at once India was reduced to a fifth-rate power. All the gains of the British built up over 100 years were squandered as the Chinese began a massive military buildup. China also started a massive military-industrial base while Nehru wasted time in trying to be a “great non-aligned leader”.

Rise of China

Within another 5 decades, the Chinese following Mao’s Red Book encircled India, occupied vast tracts of Indian land and claimed the entire North East state of NEFA (now Arunachal Pradesh) as part of China. China concentrated hard and followed a system of reverse engineering that saw it catch up with the west. They took a head start as a nuclear power and in contrast, the Indian president Dr. Rajendra Prasad talked of disbanding the army and getting all duties to be done by a police force. One cannot think of anything more ludicrous than this. Successive Indian prime ministers like Morarji Desai failed to understand the geopolitical power and let India slide down. Now China is supporting a hostile Pakistan and has weaned away Nepal and Lanka from Indian influence. The Chinese are surrounding India and their military-industrial base is 2 decades ahead of India. Considering that in 1948, China’s industry was primitive this is a tremendous achievement. They are now the dominant power in Asia while India looks for ways and means to assert itself. Things won’t be easy and the Chinese may well have the last laugh in this scenario.

Introduction of Case Study:

This case introduces the basics of monetary economics and demonstrating practical applications of monetary policies and exchange rates that pertain to business decisions. Supporting this case study will be a discussion on the exchange rate policy that China has adopted preceding and following 1978, a year in which significant economic liberation took place. Events within the past couple of years that took place in China concerning their exchange rate regime were deemed highly controversial by members of China’s trade partners. The first objective of this essay is to trace the history of this discord surrounding China’s currency, the Renminbi (RMB), which translates literally into English as “the people’s currency”. Next, questions from the case will be discussed. Lastly, the case will be made up-to-date with a brief excerpt concerning the current state of affairs surrounding this issue.

Background on Case:

In 2006, many countries that conducted trade with China made strong allegations against China’s exchange rate policy. The major complaint was that China’s currency was undervalued due to China’s manipulation of exchange rates to suppress the prices of its exports. Among other damages, these countries have claimed that this action has cost them thousands of jobs. The U.S., which had a $233 billion trade deficit with China in that year, threatened to impose tariffs on Chinese imports if China did not revalue its currency. Japan and newly industrialized economies, such as Taiwan and Singapore, were less vocal, as they have been trying to strengthen their economic ties with China. Developing Asian countries, however, supported a revaluation in order for them to be better equipped to compete with China. One collective group that stayed relatively mute on the lively debates that ensued in the media between 2005 and 2007 were multinational companies. These companies benefited from low operating costs in China, which, for them, meant cheaper land and more competitively priced China-made exports.

China’s exchange rate was deemed to be out of synch with market forces, with several reasons to support this conclusion. First, China’s economy experienced 9% annual growth over the past decade. According to the Balassa-Samuelson hypothesis, rapid economic growth is accompanied by real exchange rate appreciation because of differential productivity growth between tradable and non-tradable sectors. Secondly, China has become the world’s third-largest exporter with at least $970 billion in 2006. China’s exports have experienced approximately 30% growth in recent years. Lastly, there has been a compilation of $1.2 trillion in foreign currency reserves. These build-ups are claimed to be the result of manipulation of the RMB against natural forces of the market.

Chinese officials strongly oppose the idea of a revaluation of their currency on several grounds, the strongest of which is probably that they are a country that is highly reliant on trade and growth of their exports is vital. Secondly, over two hundred million rural dwellers have left their farms to find work in urban centers. Higher economic growth is necessary to absorbing these workers into a functional economy. Apart from the economic reasons against changing the exchange rate policy, officials in China turn to several counterarguments. First, the RMB, according to them, is not really undervalued and China’s economic growth has nothing to do with manipulation of the currency. Secondly, the U.S. is running a large trade and budget deficit, which is partially attributable to capital inflows from China, and should look to the weakness in their economy before pointing fingers elsewhere. Also, China is a sovereign country with a right to choose its own exchange rate policy. Lastly, Chinese officials brought up the little known fact that despite its large trade surplus with the U.S. and Europe, it also has large deficits with others, especially Asian countries.

As mentioned in the introduction, China began liberalizing its country in 1978. Prior to then, it followed central planning and was reliant on economic self-sufficiency. China’s foreign trade was negligible and there were hardly any foreign companies doing business in China. The RMB, at that time, was pegged to a basket of currencies and an exchange rate was set at an unrealistically high level. The currency was virtually non-convertible. After 1978, China followed an “open door policy” and special economic zones were opened to foreign investments. A tiny private sector emerged. The RMB was devalued in 1981, 1985 and 1993 to the U.S. dollar in order to promote Chinese exports. The RMB was revalued by 5% in 1995, which held until July 2005.

The squabbles started in July 2005 when China reformed its exchange rate regime. The RMB was revalued by 2.1% to the dollar. The peg to the dollar was replaced by a peg to a basket of currencies with an allowed fluctuation of a 0.3% band against the dollar each day. This basket was dominated by the U.S. dollar, euro and yen. The currencies of baskets and weights were selected on the basis of trade volume conducted with China’s partners, the sources of foreign direct investment (“FDI”) and the composition of China’s debt. In May 2007, the Chinese central bank announced a widening of the RMB’s daily fluctuation against the dollar to 0.5%. This followed an appreciation of their currency by 7.2% against the dollar.

Chinese officials site several alternatives that could be taken in place of a revaluation of their currency. The first suggestion is to reform the banking sector, where up to 40% of loans are underperforming and nine out of ten banks are state-owned. Secondly, they have proposed a “go abroad” policy, encouraging Chinese companies to invest abroad and thus stimulating outward FDI. Lastly, Chinese officials have suggested imposing a voluntary export tax. Unlike with a revaluation, a tax would not affect the value of foreign currencies. Furthermore, the Chinese government would receive much needed tax revenues.

Analysis and Discussion of Case Issues:

Now this essay will discuss responses to questions from the case itself. The first two questions from the case are concerned with how much further China should let its currency appreciate and to determine whether or it is not undervalued as of the time of writing this piece. First, China should never have let the currency fall this far. It has an abundant source of cheap and skilled labor, with a generally high educational attainment level, and does not need to manipulate their currency in order to benefit from strong exports. Yet, this is precisely the action Chinese officials took. This should be immediately corrected before more trading partners are forced to suffer. Regarding the second question, it is clear from the evidence that the currency was undervalued. Given the high level of FDI entering China and its significant trade surplus, the RMB should have appreciated relative to this basket of goods, especially given that the U.S. dollar and Euro have both weakened lately.

The next questions are concerned with the consequence of a revaluation on China and its trade partners and whether any profound reform should be gradual or not. Also, the case study asks about how a floating RMB would impact the exchange rate. In simple terms, a revaluation would benefit most trade partners and come at a significant cost to China. Trading partners, including the U.S. and the Euro Zone will benefit by not losing thousands of workers to the Chinese markets, as had been the case when domestic companies relocated to China under favorable economic considerations. Developing Asian countries will be better able to compete with Chinese exports if a revaluation takes place. Multinational corporations will not favor such a move, as maintaining the status quo allows them to continue benefiting from the low operating costs in China. China would lose in the sense that its economy would likely slow. One could argue, however, that this will happen anyways, given the current state of affairs in the global economy. Current business and political journals and magazines have pointed to the fact that Europe is now in a recession and that the U.S. is not far behind. The credit crunch has not left China unaffected-its economic growth is expected to reduce to only approximately 8% in 2009 according to analysts at the Economists and the Financial Times.

As mentioned before, China is heavily reliant on trade and growth of its exports is vital. A revaluation will eat into its competitive position. This will also likely have a negative impact on their labor market, as fewer jobs may be available in the cities for those leaving the rural communities and entering the urban areas.

To answer the second question, the revaluation should be gradual in order to give the market forces a chance to react intelligently to the change properly and for affected constituents to adjust their business practices accordingly. In response to the final question, a floating of the RMB would cause it to strengthen relative to the other basket of exchange rates because it is currently undervalued due to market manipulation on behalf of Chinese officials.

The last two questions refer to different exchange rates and ask which one is most appropriate for China. There are six major exchange rate regimes. The first is an exchange arrangement with no separate legal tender regime. In this regime, the currency of another country circulates as the sole legal tender, or the member belongs to a monetary or currency union in which the same legal tender is shared by the members of the union. Adopting this regime implies the complete surrender of the monetary authorities’ independent control over domestic monetary policy. The second regime is called the currency board arrangements. This is a monetary regime based on an explicit, legislative commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate, combined with restrictions on the issuing authority to ensure the fulfillment of its legal obligation. Some flexibility may be allowed, depending on how strict the banking rules of the currency board arrangements are. The third regime is the other conventional fixed peg arrangement.

Countries that adopt this regime peg its currency at a fixed rate to another currency or a basket of currencies. The basket is formed from the currencies of major trading or financial partners, and weights reflect the geographical distribution of trade, services or capital flows. There is a limited degree of monetary policy discretion, depending on the bandwidth.

China has adopted the fourth exchange rate regime into its monetary policy, which is known as the crawling peg. The currency is maintained within a bandwidth around a central rate, which is adjusted periodically at a fixed pace or in response to changes in selective quantitative indicators. Maintaining the exchange rate within the band imposes constraints on monetary policy with the degree of policy independence being a function of the bandwidth.

The fifth regime is the managed floating with no predetermined path for the exchange rate. The monetary authority attempts to influence the exchange rate without having a specific exchange rate path or target. Lastly, there is the independently floating regime, which has been adopted by the U.S. The exchange rate is market-determined, with any official foreign exchange market intervention aimed at moderating the rate of change and preventing under fluctuations in the exchange rate, rather than at establishing a level for it. This is the regime that the Chinese government should follow because it is market-determined and not open to manipulation, while maintaining flexibility regarding monetary policy.

Third Party Opinions on Case Issues:

This last section will discuss the current situation regarding this debate. According to the latest news articles from such sources as Bloomberg, the Wall Street Journal and the Financial Times, the Chinese economy has experienced weakening exports because of the U.S. housing slump and the international credit squeeze. China’s GDP growth is expected to slump, too. The Chinese government has options to stimulate the economy and protect exporters. Reports claim that officials at China’s central bank plan on slowing the appreciation of the RMB. Indeed, this is a decision that should have been made a long time ago and would be a major breakthrough in the ongoing debate, which may actually reach a conclusion given the state of affairs in the global economy.

According to Professor Pan Yingli of Shanghai Jiao Tong University, the RMB was undervalued since the 1997 Asian crisis and such a foreign exchange policy has been used to finance exports and imports sectors at the cost of non-trading industries. Basically, the crawling peg regime adopted by China allows it to manipulate exchange rates in its own favor in order for it to sell more products abroad, as exports are the lifeblood of China’s economy.

The Asian financial crisis involves four basic problems or issues: (1) a shortage of foreign exchange that has caused the value of currencies and equities in Thailand, Indonesia, South Korea and other Asian countries to fall dramatically, (2) inadequately developed financial sectors and mechanisms for allocating capital in the troubled Asian economies, (3) effects of the crisis on both the United States and the world, and (4) the role, operations, and replenishment of funds of the International Monetary Fund.

Concluding Remarks:

In conclusion, this case showed how trading partners could be both positively and negatively influenced by the economic decisions by one or more of the players. It is important for countries to realize that we live in an interconnected, increasingly global environment in which important decisions are not made in isolation. In fact, China’s decision to pursue exchange rate reform has, for better or worse, greatly impacted billions of people throughout both the developed and developing world.

In ancient China, sick people went to see a healer. Healers were like doctors although thousands of years ago, healers knew less about the science of medicine than we do today. They sought the help of magical spirits; the people called them “shaman”, “medicine man” or “folk doctor.” But about 1,100 years ago, Chinese doctors began to go to medical school.

As civilization advanced, magic played less of a role in healing.

In time, healers learned various techniques that they utilized to help their patients. They used techniques such as Tui Na’ (massage therapy); acupuncture; moxabustion; herbs; nutrition; Qigong (breathing techniques and meditation); Tai Chi Chuan or other martial arts, Feng Shui (the practice of positioning objects based on yin and yang and the flow of chi or energy) and Chinese astrology. This knowledge was handed down from one generation to the next.

Philosophies such as Confucianism, Taoism and Buddhism, also influenced Chinese medicine. The concept of yin and yang was part of the philosophies of Taoism and Confucianism. Ancient Chinese healers believed that nature was made up of two opposing forces, yin and yang, which must be in harmonious balance for good health.

Yin and yang are cosmic energies or qi (chi). They reside in the universe and in the human body. Yin is negative energy: cold, dark and female. Yang is positive energy: light, warm and male. Even though they are opposites, yin and yang are inseparable. Everything contains yin and yang in varying degrees but they were part of an overall unifying force, Tao. (Beshore, 1998, p. 11)

Visually, yin and yang are represented by a circle. Within this circle are two curved forms, one black and one white, and both shaped like tadpoles. Yin and yang never exist individually yet one may be in excess of the other. It is this imbalance that causes ill-health.

If yin and yang are in balance or in harmony within a person, good health prevails. But if the balance is disturbed, the job of the Chinese healer is to restore harmony. Common treatments used included the treatments stated previously.

The Five Elements or the Five Zangs, was another belief system which stated that everything is made of earth, wood, water, fire and metal which are interrelated to each other and with human structure and function. Human organs each have a corresponding element: fire, metal, water, wood, and earth. Illness indicates disharmony among the elements. So, a healer utilized the philosophy of the Five Elements by treating a patient based on the element or elements in discord. (Ross, 1982, p. 29 – 31)

Complex philosophies such as the doctrine of yin and yang and the five elements became the basis for diagnosing and treating illness. According to historians, these practices dated back to the 6th Century BC.

The cosmos had to be taken into account when diagnosing a patient. The stars, season of the year and even the hour of the day of the start of the illness, had to be determined before treatment could begin. Medicine was needed.

Early alchemists, or chemists, mixed various materials together to form potions that could cure humans of various diseases. (Beshore, 1998, p. 15-17)

They used the theory of the five elements to make and prescribe the drugs. (Ross, 1982, p. 50)

Herb and other plants were made into medicines. Sometimes, animal and mineral elements were also used. A book on drugs written in the sixteenth century lists over two thousand substances used to make over sixteen thousand medicines. Ancient Chinese doctors could not always explain why so many of their drug potions worked, but they keenly observed the positive reactions of their patients when the herbal medicines succeeded.

All parts of an herb were used including the stem, seeds, leaves, fruit, and roots. Different processes were used involving drying, roasting and soaking in water. Some herbs were used in their natural state. Ginseng was especially popular because the ancient Chinese believed the root of the plant had magical qualities for prolonging life.

They also used the ephedra plant which was esteemed for reducing excessive bleeding and relieving coughing caused by asthma. Medicines of animal origin were also popular. The secretion of toads was used for stimulation purposes. Minerals like mercury and sulfur were often used in drugs that proved effective for the treatment of many ailments. For example, arsenic was used in an ointment for treating skin rashes and sores; zinc sulfate was prescribed for bladder disorders.

Acupuncture is believed to have existed during the Stone Age of China when flint needles used in acupuncture were discovered. Shamans may have used acupuncture to drive demons from the body of a sick person. During the Iron and Bronze Ages, flint needles were replaced by metal.

Acupuncture is a form of therapy in which one or more needles are inserted into the patient’s skin. The needles penetrate the skin in varying depths and at various meridians or points of the body. Acupuncture restored the yin and yang to a balanced state within a patient’s body. The needles released an excess of yin or yang depending on which force was out of balance. Most illnesses required more than one treatment of acupuncture.

Acupuncture has endured as a healing art in China for more than 3,000 years. Moxa or moxabustion requires the use of fire instead of needles. The healer or doctor would pound the dried leaves of the mugwort plant and roll them onto a cone shape.

Several cones would be placed at specific spots on the patient’s body and then ignited. The burning cones would be removed just before the fire actually touched the skin. Moxa caused an intense stimulation of the blood and nerves in the areas treated, leaving a red spot where the burning cone had been. Mugwort leaves were eventually replaced by mulberry leaves, ginger and monkshood.

Ancient Chinese healers were also interested in preventative medicine. Nutrition was considered important as were exercise and mental serenity. They also developed ways to stop the spreading of disease. They destroyed germs by burning a chemical that disinfected a deceased person’s home and steamed the clothes of sick people so that others would not get sick. They also developed a primitive form of vaccination for smallpox. It wasn’t until the eighteenth century that Western medicine discovered the fundamental idea of immunization against disease. (Beshore, 1998, p. 31)

The ancient Chinese discovered certain diagnostic techniques which were not used in the West until centuries later. These techniques included: checking the patient’s pulse; examining the patient’s tongue, voice and body; observation of the patient’s face and ear; observation of the patient’s body for tenderness; examination of the vein on the index finger on children; and comparisons of the relative warmth or coolness of different parts of the body. Traditional Chinese Medicine developed as a noninvasive therapeutic medicine rooted in ancient belief systems and traditions.

Beshore, George. Science in Ancient China. New York: Franklin Watts, 1998

Ross, Frank, Jr. Oracle Bones, Stars and Wheelbarrows: Ancient Chinese Science and Technology. New York: Houghton Mifflin, 1982.

China has weird rules for using the Internet. It is quite complex, and Chinese lawyers are always on their toes to explain things to their clients regarding the Internet usage in the country. Internet usage, particularly, for the gaming companies is even more difficult and they usually hire lawyers to talk about the pros and cons. China’s Internet rules are absolutely different from that of the western countries and that is hard for the foreigners to understand. Having a clear idea about the Chinese rules and regulations makes everything easy for clients and foreign companies.

Registering Trademark in China

Trademark registration in China for the purpose of using the Internet is again complicated. It is not wise to confuse the process with that of United States and Vietnam since the story is totally different over here. To begin with, one has to find out the class or category under which the trademark has to be registered. Preferably, putting it under the right class will prevent any kind of confusion and will aid in the registration process. The biggest loophole in the process and its intent is that the company registering the trademark will not receive any kind of protection from duplicity. If the trademark logo is used by a book or T-shirt, the company does not have any power to do anything about it. Moreover, the company applying for trademark registration will only be registered when it submits the documents in Chinese.

In China, this is almost like an unwritten rule; all the legal processes should be carried out in Chinese language. Otherwise, there is a big chance that it will not be completed and the purpose will fall through. Moreover, one has to digest the fact, that, there is no copyright protection in China.

The Special Treatment for Gaming Industry in China

The Internet gaming industry in China suffers from loads of deficiencies. The rules and regulations are numerous and they are almost impossible to fathom. To be precise, any kind of foreign content published on Chinese websites is illegal. Foreign content on their own website is also illegal. However, this illegal business runs in China but some people have been put behind bars for this as well. Sometimes, few of the business owners or website owners earn a big amount from this flawed system. This is a huge defect in Chinese law system. Some people land up in a soup due to this, while others take illegitimate advantage of the flaws.

The most unfortunate part is that, there is no consistency in the system which is harming the entire Internet fraternity and the supported industries. Such confusing rules and disparity within the system has led to havoc and distrust among companies towards the government.

Monetary Expense for Registration

Registering trademark in China is expensive. Setting up the Internet and also using it altogether costs a lot. This is another big disadvantage of using the in China. This is especially true for foreign companies. There is another option for business people to get the entire thing done at a cheap rate. However, that could take them in the wrong direction. Every cheap transaction cannot be of good quality. The business owners can definitely be taken down by the people helping through the registration process. It is not safe to get this done at a cheap price. You might have to pay in the end for that. Some of these people are fraudsters and thieves who can indulge in identity theft. This is obviously harmful for the practicing companies.

Retrieving trademark is a very difficult, convoluted and complex process. It takes a lot of money and time on the part of the business owner if his trademark is stolen even once. People are advised to be careful lest they have to face this dire consequence due to ignorance. Consulting with a capable lawyer well versed with the Chinese system could help the foreign business owner regarding the Internet theft and fraud in China. It is always advisable to work with an experienced lawyer. Also, doing research on your own could be helpful. One has to be extremely careful while setting up business in China and also during the use of the Internet. Nothing is simple over there and nothing should be taken at their face value.

China’s Ministry of Education created a foreign language policy in 2001 The policy is entitled, “The Ministry of Education Guidelines for Vigorously Promoting the Teaching of English in Primary Schools.”

This policy has so many positive and negative effects on the society of china. An analysis of policy is given below please read.

The policy states that primary school students are required to start learning English in the third grade. This marked the implementation of a new foreign language policy in the country. The policy included a plan implementation schedule, curriculum design guidelines, textbook selections, training teachers and governing structures. There have been several concerns about the implementation of this policy and for a country with the largest primary school population, the practicality of the policy’s implementation raised several eyebrows. One of the concerns were whether the policy was only geared towards gaining the favor of hosting the 2008 Summer Olympic games or whether the policy promoted education equality in the country. Learning English has become high importance for internal and external examinations within the school systems.

n China, there is an exam for students to take to enter into college, called the National University Entrance Qualifying Exam. This exam requires students to test in three subjects: Chinese, English, and Math. Some parents in China find learning English so necessary, they hire tutors to start teaching their children English before they are taught in school

The English language has evidently shown linguistic impacts to all parts of the world. The effects do not only transpire in the micro socio-political lens, but it already holds a significant role that fuelled both the political and social development of societies. These developments then result to the involvement and transpiration of policy efforts and the discussions of language planning as part of the pedagogical component of national educational systems. One interesting case is that of the English Language Teaching (ELT) policy in the People’s Republic of China.

It is noted that China’s educational system has suffered from its unstable policies in foreign language education during the 1950s to 1990s – after the establishment of the People’s Republic of China in 1949. In other words, the English Language Teaching in China was influenced by differing political, economic, social, and educational needs at different times.

Also, the massive drive in the expansion of English proficiency in formal education has in Hertling’s words “the most ambitious language-learning campaign in history”

Made in China. If you are a consumer anywhere in the world, you have seen this label on thousands of different products. For many consumers, this label can mean that the product they buy is going to have a lower price than a regional item of the same kind.

For others, the name implies sweat shops, cheap labor, shoddy workmanship and greedy retailers. Most of us have something in our homes or in our wardrobes made in China.

The country of China produces just about any type of merchandise you can think of; including dance shoes for all genres of the performing arts. One of those performing arts is ballet.

The most important accessory for a professional ballet dancer is her pointe shoes. Because pointe shoes wear out quickly, cheaper models are incredibly tempting to try.

Pointe Shoes Are Expensive For A Reason

The skills of a professional pointe shoe cobbler cost money. It is typically a generational skill that takes decades of experience to perfect. The best pointe shoes come from manufacturers that use cobblers who take pride in their work.

Lasts or forms are expensive as well as labor costs. Pointe shoes made the traditional way using hand pasting and turning require critical attention to detail. Successful manufacturers understand what a dancer needs and wants from her shoes in the way of support, ease of break in, beautiful lines and comfort.

How Cheap Is Too Cheap When It Comes To Pointe Shoe Construction?

Few manufacturers are going to share where they source their materials. Many use satin from one country, thread from another, leather from another and so on. If a pair of dance shoes only cost ten dollars when comparable products cost ten times as much, you need to worry about the quality of materials used.

The Pros And Cons Of Low-Cost Pointe Shoes From China

The Pros:

• Good for decorating and arts/ crafts projects.
• An option for collectors or curiosity seekers.

The Cons:

• One generic shape isn’t practical for all the foot types that dancers have.
• Cheap prices are passed on to the consumer due to cheap materials used and low-cost labor.
• A dancer will never really save money; the shoes will wear out quickly.
• The shoes will not have the right support.
• Aesthetics can be a nightmare with off-brand pointe shoes.

Professional Shoe Choices Encompass A Small Range Of Brands

Professional theatres spend thousands and thousands of dollars each year supplying shoes for their corp members. However, you never see a top-notch academy skimping on expensive brands or buying cheaper no-name versions from China.

It is usually the opposite. They make sure their principal dancers, soloists and corp members have the very best quality shoes to dance in. This includes custom-made shoes for a perfect fit. Shoes are chosen from a few elite brands that are known the world over for quality, support, aesthetics and custom design features.

A professional ballerina can become very selective about her cobbler. Impeccable fit is number one for an art as physical as pointe work. Having shoes designed specifically for her unique foot shape by the same manufacturer guarantees consistency of fit and function.

The Odds Of A Low-Cost Mass-Produced Shoe Gaining Popularity With Dancers

This article is certainly not intended to bash authentic Chinese pointe shoe brands that are produced by reputable companies well-known for quality dance apparel.

The inexpensive models that are found online through global marketplaces and sold without a brand name are buyer beware products. They are not affiliated with professional schools, ballet training academies or dance theaters.

Cheap, discounted pointe shoes of questionable origins are never recommended by the ballet elite. They may be tried by students on a budget, but never a choice for a professional.

With the advent of the Internet and global competition for business, China has tried to fill the dance wear market with low-cost ballet shoe alternatives. However, professional ballet training demands high standards of construction when it comes to pointe shoe design. Quality goods costs money.

If top-quality pointe shoes only last a dancer one performance, a cheaply made alternative will never take its place.

Abstract

In this paper I intend to explore the phenomenon of empathy or the lack there-of amongst the Chinese population. The evidence is mostly through observational techniques and interviews with Chinese commentaries about the findings. Empathy is the ability to understand the feelings of others by recognising their emotions, behavioural action and situation. This method of cognitive ability is lacking in Chinese thinking styles and causes social impairment and behavioural problems in not recognising or understanding another person’s perspective when they interact socially. The findings show two possible conclusions, the first, the one-child policy of China causing interference with normal sibling learning experience and secondly, over-population, parenting advice and social learning situations.

Introduction

Empathy is the ability to understand the feelings of others through observation of their actions, behaviour and situations. For example seeing someone fall off a bicycle causes the observer to wince at the thought of the person’s pain or discomfort. It is as if we fell off the bicycle instead. However we cannot fully understand or feel the person’s indignities or pain at that moment but can clearly try to imagine those feelings and thoughts of the other. In counselling empathy is an important component of the therapist’s armoury. Without this ability the counsellor would be ineffective in trying to understand his client’s situation. While the counsellor may not have personally experienced the same behaviour they can at least understand the client’s discomfiture, pain, thinking, feelings and cognitive reasoning. This ability to empathise enables the counsellor to enact transference with the client in a positive manner.

Research into social situations can reveal some aspects of empathy or at least its component of the compulsion to act in social situations where altruism is a required action to a situation. Coke et el (1978) showed that the increase in emotional empathy helps to change behaviour of the observer to help or assist another person. He believed this was because of the natural reaction cognitively of the observer, “What if that happened to me” thinking. This he reported showed that even empathy with good intentions can be selfish in motivation. Cialdini et al (1987) alternatively felt that people may feel saddened by the plight of others and in turn changed their mood to a more altruistic stance. Batson et el (1981) suggests empathy is a genuine desire to reduce other peoples distress rather than your own. Batson tested this by allowing observers to change places with victims who received electric shocks. He found that the observer’s distress was reduced by taking the victims place.

Social impact theory clearly shows empathy can be situational in that people are influenced by those around them in response to a distressing situation. On the Metro system if many people turn away from a beggar then you are more likely to conform to that behaviour rather than break the pattern and give money. In other words we follow the lead given by others when we are not sure ourselves how to act. Latane and Rodin (1969) and Latane and Darley (1968) in two experiments showed clearly that in a crowd situation people tend to observe others first then decide on an action. People more often when alone will act on their own violation rather than what others are demonstrating. Latane called this a diffusion of responsibility that occurs when many people are together witnessing a victim’s plight, in fact most research found that the more people are together the less helping behaviour happens and a sense of pluralistic ignorance abounds by people behaving badly together.

In China there seems to clearly be a lack of empathy understood between people and therefore their everyday actions cause distress to others not directly associated with kinship or social circle. For example queuing is a common activity in most societies and politeness tells us that we should wait, take our turn and be patient. Where do we learn such behaviour? As children we observe through social learning that our parents wait in line at the supermarket, give up their seat to the elderly or pregnant women that they do not push-in or complain impatiently while waiting for someone else to finish ahead of them. This starts the process of cognitive thinking in that when these social rules are broken they see people getting up-set, shouting, complaining and punishing the wrong-doer. In time they take on the cognitive social rules internally and apply them in their own situations through behaviour, this is the beginning of an understanding of empathy. So why then in China do people push-in, ignore others when entering buses, trains, the metro excreta? Why do they read a newspaper in a crowded trains causing others to be uncomfortable, inconvenienced or pushed aside? Why do they shrug their shoulders at others distress or misfortune?

There are two aspects of Chinese society that may indirectly attribute to the lack of empathy for others in their character. The first is the one-child policy introduced by the Chinese government to control the population rise and avoid starvation and poverty amongst its people. The second is over-population itself in which too many people are vying for too little recourses such as, food, seats on a bus, room on a train, and long queues at the supermarket.

Methodology

In order to investigate this hypothesis the researchers interviewed subjects about recent tragedies, incidents such as accidents, fires, deaths and general day to day activities in which understanding another’s feelings was essential to good citizenship. Examples were the Sichuan earthquake, the frequent death of miners, minor bicycle accidents and road death.

Results

In almost all the interviews the majority of Chinese respondents conferred a lack of empathy towards others and an inability to understand distress in other people accept in a very artificial way. For example when asked about a recent road death in which a taxi passenger opened a door to exit and killed a bicyclist who was trying to pass on the inside of the traffic. Most replied the cyclist should have been more careful. When asked how the passenger felt do you think at killing the cyclist – most replied I have no idea. When Westerners were asked the same question almost all replied the passenger would feel, scared, guilty, fearful of consequences and sorry about the victim. When this was pointed out to the Chinese respondent – they often shrugged their shoulders and replied how would you know this? In China many State owned mines and illegal mines operate on safety standards that would make a Western miner shudder with apprehension. Every week a report of miner’s deaths appears in the press, sometimes hundreds die in one incident. When asked how the miners families would feel at a time like this, the Chinese respondents replied mostly that the families would seek money for the death and worry about compensation. This matter of money was also mentioned in the bicycle incident. When further questioned as the feelings of the family most Chinese said something astonishing to most Western ears, and I quote, “What does it matter we have too many people in China”. It is as if the death of someone is actually a benefit to the whole society. When question about this callous view most Chinese felt that Westerners did not understand the culture and the need for the survival of the majority over the minority (those killed). This was however demonstrated by the Government here, when the need for land to accomplish major civil construction, that those people who lost their homes and land where doing so for the greater good of the country and it is their loyal duty to suffer so that many can benefit from their sacrifice. (The compensation for loss of farms, homes etc. were minimal and no social support was considered such as farmers relocated to modern apartments with no work and a lifestyle they did not understand). Finally most were questioned on the recent earthquake in China that killed over 80,000 people. Again most of the interviewees, felt that this was a major tragedy. When asked about how they felt about the people’s plight, most gave stereotypical answers that they recited from Government state issued sentiments and media sound bites. In other words – they were not feeling but simply reciting the sentiments they had been hearing from the media. When asked how they would feel in the same situation they found it very difficult to understand the question and its meaning. There were some comments that coincided with kinship, such as losing their own family members. In a group discussion with Shanghai students about the earthquake most also gave sound-bite replies however when asked if they had any feeling about the people who survived they felt they did not know these people so how could they feel anything for them? This did remind the interviewers about Princess Diana’s death in France, despite the public out-pouring of grief shown in the media; many British admitted in private they actually did not like her at all. So showing a mass hysteria approach to a tragedy, as a false type of empathy, rather than a personally felt empathy.

Discussion

In conclusion it can be seen that the hypothesis can be supported in that Chinese people seem to lack basic empathy toward another person’s position. In trying to understand this difference in social learning the author looks at two phenomenons that exist in China and not in other countries. The first is the psychological and social problems with the one-child-policy, introduced to reduce the population strain on recourses in China and the second over-population itself as a source of attitude towards others on a daily basis. The one child policy has many social problems but in the case of empathy the author points out why a lone child growing up in a home with adults only can lack the social skill of empathy when dealing with adult situations later in life. In the West where two of more children grow up together as siblings, many social lessons are learned through observation. When a father is shouting at your brother/sister the observing child can understand the fear response from the other sibling by knowing what it is like to be the recipient of the same punishment. The child might be thinking, “I am glad that is her and not me” in other words the child is identifying the emotional feelings of the other sibling. These types of episodes happen daily as we are growing up from casual incidents to the more serious ones. To a child any incident can be serious even if we as adults would not class it as such. This observational learning is the founding of empathy in the child that when growing to adult uses this childhood emotional learning to exercise empathy when observing others who are in trouble or plight. Under China’s one-child policy the child often has no-one to observe and therefore can only internalise their own feelings about their experience without seeing that others might have the same feelings. With out this observational social learning the Chinese child becomes more selfish in it orientation – ego-centred for life – and so as an adult merely observes without a feeling of empathy to help understand another’s point of view or plight. The second area is over-population itself, here you can see daily in the cities particularly, that people do not wait patiently in line, are constantly complaining about others, push and shove when buying train or bus tickets that maybe in limited supply not just at holiday time but anytime (even when supply exceeds demand) and the scurry for seats on crowded trains and buses. Even in the traditional thinking of many countries, that while on a bus you should stand for women, babies, the elderly, the infirm here is Chine the government had to advertise polite behaviour prior to the 2008 Olympics to tell Chinese how to behave in public places such as not spitting, emptying their nose in public and standing up for other people on buses and trains. These advertisements had to show people actually smiling while giving way to others. However this is not the real situation in China, as the cites are so crowded, that people push and pull others in the attempt to gain seat (even when travelling a short distance). Often healthy young men sit while old women stand next to them. They do not give up their seats for anyone as this is their privilege. When challenged by researchers on buses many would indeed get up but this was merely social conditioning to follow authority figures demands. When asked why they should give up the seat again they often repeated government slogans from the media but rarely showed any actual insight into the person’s plight at standing when old or pregnant. Again the lack of real empathy is astonishing but once again people responded with a frequent reply. “There are just too many people to care about so you must look after yourself and your family first”. This reference to over-population is often quoted as an excuse for selfish behaviour and a lack of empathy to other people. Many said, “They do not care about me why should I care about them?”

Summary

The lack of empathy then in China can be seen from two social aspects, the first is the one-child-policy in which psychological social learning cannot take place within sibling observation leading to adult understanding of others feelings and the second, over-population itself in a society where a perceived shortage of recourses leads to selfish behaviour that prevents the showing of real empathy. It should be pointed out that this research was not exhaustive in that interviews were conducted often informally and at times of opportunity sampling as apposed to more rigorous techniques, however most Chinese who proof read the main content agreed with the findings from their own personal experience of growing up and living in China. So the author feels that although further research is desirable to confirm these findings the over-all lack of empathy is so obvious in everyday activities here that it leaves little room for doubt.

References

Graham Hill (1998) Advanced Psychology – Oxford Guides Pgs. 116 – 118.

Richard Gross (2001) Psychology of Mind & Behaviour, 4th Ed. Hodder & Stoughton Pgs. 440 – 444

China is a vibrant country with busy cities and peaceful riverside towns. The natives speak in a surprisingly complex language, but there is a problem. Even with a top-class economy, the people do not have much knowledge of the English language. Thus, it makes the country a rewarding and popular place for teaching purposes. Belonging to a native English speaking country and possessing a thorough knowledge of the language will prove to be a worthwhile place for the job of a teacher.

1. Get in touch with a recruiter: There are two main ways to teach in China, ESL academies, and public schools. Seek the help of a recruiter. You can always choose to apply for these jobs from home via the internet. The trouble starts when most schools cannot get foreign teachers through recruiters. Only then will your online application prove fruitful. These reasons make recruiters the favorable choice to teach in China.

2. Attain TEFL certification: Achieving Teaching English as a foreign language or TEFL certificate ensures a quick response to your application to teach in China. Being a university diploma holder or having professional teaching experience can also make your task easy. There is an exclusive benefit with TEFL. Arriving in the country with certificate in-hand will get you a much higher paying job. It won’t matter if you are a would-be teacher or a professional one.

3. Teach at private schools: Are you already an experienced teacher or maybe a certificate holding would-be teacher? If you are qualified enough, go for individual or international organizations. A large number of these schools post online listings. You can teach in China with ease by applying for the position from your home

4. Attend interviews: To apply for a teacher’s job in China from home you have to take the help of phones and Skype. This process begins once you are already attending TEFL classes. Most interviews happen over the phone or Skype. The Student Affairs Department will aid you in the interview process and preparations.

5. Signing the contract: After receiving a job offer worth accepting, you will have to sign a contract. Your employer and recruiter will arrange all the required documentation processes. Your new organizational employer will also make arrangements for your travel and visa.

6. Plan lessons methodically: The exposure to a native English speaker like you will prove satisfactory to your students while learning your accent. It is also equally essential to create new ways of learning. As a teacher, you must give your students a sneak-peek of your home and culture along with basic grammar and vocabulary.

Last but not the least

Going to a different country requires you to be mentally prepared. China is a tolerable country, and you will not have any issues. Just be good at your job as a teacher. If you have experience, then it is fine, but if not, as a would-be teacher you will only have to adjust yourself to a new country. There shouldn’t be any other problems. The job is proven to be satisfactory.