Home 禄 Opinion 禄 Chinese Views
Candor best response to controversial US reports
Print Edition
A famous Chinese entrepreneur鈥檚 rebuttal of a recent report by The New York Times has drawn a lot of attention across the Pacific in the past few days, reviving a long-lingering question: what makes US mainstream media鈥檚 reports about Chinese companies so controversial?
Cao Dewang, founder and president of Fuyao Glass, the world鈥檚 largest auto glass manufacturer, dismissed the NYT report about his factory in Dayton, the US state of Ohio, as inaccurate and unbalanced. During interviews with the Chinese media, Cao said that local government believes Fuyao鈥檚 investment in Dayton has brought tremendous positive changes to the local community, calling the NYT report 鈥渁 false one.鈥
The Dayton factory, which started operation in October 2016, currently employs some 2,000 American workers. In a report published earlier this month, the NYT claimed that 鈥渁t Fuyao, a major culture clash is playing out on the factory floor, with some workers questioning the company鈥檚 commitment to operating under American supervision and American norms.鈥 The report also questioned Fuyao鈥檚 labor and safety standards.
鈥淭he New York Times didn鈥檛 visit or interview any current employees at Fuyao鈥檚 Dayton factory. Instead, it only talked with a few former employees and union activists, who are biased to a certain degree,鈥 said Cao, adding that Fuyao鈥檚 factory in Dayton has been strictly observing US laws and regulations.
Fuyao is the second major Chinese company with US investment and operations that has refuted US mainstream media reports so far this month.
ICBC Financial Services, the US brokerage unit of the Industrial & Commercial Bank of China Ltd. (ICBC), is in strict compliance with local regulatory policies and risk-management rules, said ICBC USA in a statement issued shortly after a Bloomberg News report alleged the company was 鈥減rofiting from the murky world of shadow banking.鈥
The Bloomberg story claimed that ICBC Financial Services had roughly US$260 in assets for each dollar of capital at the end of 2016, over 10 times the leverage used by J.P. Morgan鈥檚 securities unit. It added that the bank has exploited 鈥渓oopholes in post-crisis (the 2008 financial crisis) rules鈥 to emerge as a major US dealer in government debt repos, which could pose a threat to financial stability.
But in its statement, which later was also published by Bloomberg, ICBC USA clarified that its brokerage unit鈥檚 leverage ratio, as calculated under requirements laid out by the US Financial Industry Regulatory Authority, has been below 20 times over the past four years, which is 鈥渃ompletely鈥 in compliance with regulatory requirements.
Not a surprise
Commenting on these two controversial incidents, Li Ji, associate professor of law at Rutgers University Newark, told Xinhua: 鈥淪uch things are no surprise to me, as US media view investigation and exposure of negative stories as their top responsibility and also a lifeline.鈥
鈥淗owever, quality journalism in the US media has been undermined in recent years due to intense competition pressure. Today鈥檚 NYT reports are not as good and solid as they were in terms of down-to-earth investigation and balanced writing,鈥 Li added.
Some experts believe that Chinese companies, which have been expanding their footprints in the United States, also have quite a few lessons to learn from such incidents. 鈥淚 have no doubt on Cao Dewang鈥檚 investment and management capabilities, but he has to learn to reach out to the local media, and try not to be dragged into domestic politics in the United States,鈥 said Wang Wen, executive dean of the Chongyang Institute for Financial Studies affiliated to Renmin University of China, who is now in New York for a dialogue on China鈥檚 Belt and Road Initiative.
鈥淲hen in Rome do as the Romans do,鈥 said Li Ji. 鈥淚t鈥檚 better for Chinese companies to have capable local consultants do their job of publicity and crisis control. The most important point is to respond quickly and make your voice heard loud and clear.鈥
The authors are Xinhua writers. Shanghai Daily condensed the article.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
