Over last weekend, China has a great display of destroying 42 million pieces of pirated goods and publications showing that they are serious about stamping out piracy. In the meantime, the European Union is open the idea of suing China too as a last resort in anti-piracy case. But as though these would help, what ires me is that Bill Gates is giving away the Microsoft Student Innovation Suite to the Chinese government which supply computers to students, at the price of US$3.00 each for minimum orders of 10,000 copies. This package will include the Windows XP Starter Edition operating system, Microsoft Office and Live Mail email software. These packages regularly sell for US$100 and they are trying to give them away cheaply or free as Bill Gates say here to beat the pirated copies at US$1 each.
This is exactly the same case as Hollywood trying to release the Hollywood movies in China first and selling the DVD with features for US$3-5 instead of the US$1 price of pirated goods.
Look, if Hollywood want to give away their DVDs for US$3, I don't really care. But I care if our American kids don't get US$3 package over here in the US. Bill Gates is a rich man and he is vowed by the Chinese engineers and research capabilities of the Chinese Ph.D's. From the book I read yesterday, The World is Flat, out of Microsofts' UK base, Redmond - US base, and China base, China has the most innovation. And he thinks the future of the world is in Asia and he seems to more and more forsake America.
Fine, I'll make sure my kids understand which companies care about Americans and create jobs locally rather than exporting them.
In truth, there is a very fine line these days as to where the loyalties of a global company should rest with. Even if the President and CEO is Amercan, the company may be incorporated elsewhere, the manufacturing outsourced all over the world, the CFO Chinese. These companies care only about the bottom line.
Down the road, my ideal for at least one of my kids is that he creates a company that could outsource its jobs to Americans back here in the States much like what JetBlue, the airline, does, hiring only Utah stay at home moms to do customer service.
While Bill Gates and many multinational companies believe that globalization is good for America, because the sooner the developing countries catch up, the sooner their wage increase would level making an even playing field with the developed country, I beg to differ. This would take years just because the population in Asia is tremendous and it will always depress the wage levels. American companies have to protect its own jobs by investing locally R&D, innovation and education. If the government keeps slashing our educational budget, how could we advance? We Asian families are already doing the best we could to brace for the competition from Asia. If even the government doesn't understand the importance of education, what future would there be for our kids.
Posted April 12, 2007:
By now, you should all have heard that US has filed two complaints to World Trade Organization about the rampant piracy of American intellectual property by China. The first U.S. complaint argues that China sets too high a threshold for the value of purloined property before prosecuting the thieves. In China, they would not go after shops selling pirated DVDs, CDs unless it is over 500 units (previously 1000 units). Oivay...1 unit is still piracy. Why should the world accept 500 units of pirated goods before the Chinese police would move on them? Who are they protecting? The people who makes money off the pirated goods or the citizens' convenience to buy things cheap and thereby causing losses to overseas artists? The other contends that the Chinese at the same time are far too restrictive on allowing foreign books and movies to be sold in their country.
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