China’s Push for the Future Creates PR Whirlpool

In our special 2002 Year Ahead issue, one PR NEWS advisor predicted that we would see tremendous growth in the globalization of American business - and the globalization of PR
along with it. In this article, Annabelle Warren, EVP of Hill and Knowlton Asia Pacific, offers PR NEWS readers an exclusive look inside public relations in the world's most
populous nation. Global businesses poured an estimated $50 billion into China last year, according to Warren. Add a national desire for magnificent Olympic Games in 2008, and you
have what Warren terms "a whirlpool of PR opportunities and challenges."

The PR industry in China is growing somewhere between 30 percent and 50 percent per year, according to a survey conducted in 2000 by the China International Public Relations
Association (CIPRA). So, it's no surprise that the role of the professional communicator in China today is dynamic. Business management, finance systems, legal requirements and
market structures are in constant flux. Communicators are promoting corporations and products that are completely new to the Chinese market.

For example, not long ago private car ownership was virtually non-existent. Now Beijing citizens are buying family cars, and the cascade of PR opportunities includes lifestyle
and brand promotions, educational initiatives on safety, and the development of associated industry activity such as the introduction of insurance programs.

Generations of Markets

Public relations in China has evolved incredibly since Hill and Knowlton first opened its doors in the country 17 years ago. Clients at that stage were early-entry
multinational firms like McDonald's and Motorola. At that time, PR in China was focused on market entry - public affairs, ceremony-type activities and media publicity.

As China's economy became more open, the focus changed to market development and educating Chinese consumers about products new to their lifestyle - coffee, burgers, credit
cards and insurance. Public affairs and media publicity were still important, but direct-to-consumer events started to develop a strong profile. Business-to-business communication
programs also developed.

The public relations industry in China has grown with the market into specialized practices such as investment relations, crisis communications, employee relations, sports
marketing and corporate citizenship.

Multinationals sometimes enter the Chinese market with a weak understanding of the importance of public affairs and community relations: That's a big mistake! A strong
government relations program is needed to ensure that the company has a license to operate from all necessary departments and government organizations. This can be a complex
process that requires specialist "navigators." In China, government relations specialists that operate much like media relations specialists in the United States help identify the
appropriate targets, develop personal contacts and relationships with government officials, and often have spent time on the government or media side. This is a task that requires
deep knowledge - both of China and of China's government.

Working with the Media

Another reason to focus on public affairs is that the Chinese government has a lot of influence with the media. The media in China falls into two general categories - state and
privately owned. The majority is state-owned, but this too is changing. One of the most-respected financial publications on the mainland, Caijing Magazine, has earned a reputation
for independent reporting.

Advertorials are also used extensively throughout China, and they are generally not differentiated in any way from the independently written editorial. However, the Chinese
reader does understand that much material is placed for commercial or policy purposes. It's a complex situation that must be analyzed with care by professionals who have worked
with the Chinese media for many years. It is important to understand that the news agenda may not be driven by readers, but by government policy and mandates.

Last year, the First Annual Media Conference saw executives from television, radio, magazines, newspapers, Internet, advertising, film, book publishing and public relations
come together to address critical industry issues. These included intellectual property, censorship, ownership and media convergence. It was a sophisticated policy debate.

As professional communicators, we can contribute to this debate by bringing international ideas and standards to China. We represent and work with corporations who stand to
benefit from dialogue and WTO reforms. Our role will be to identify the opportunities for PR industry development, as well as to help build knowledge.

Things to be aware of when working with the Chinese media

  • Chinese media is increasingly resistant to overtly commercial media pitches.
  • Chinese reporters, especially the general and business media, are searching for issues with social or business importance to China.
  • Chinese media tend to ask less aggressive questions than their Western counterparts.
  • Chinese editors and reporters pay close attention to the spokespersons' title and openness at interviews.
  • Contacting an executive directly after meeting at a function is a usual practice for Chinese journalists.
  • Relations between China and the home country of all foreign companies operating in China, especially American companies, can affect media relations. For example, during times
    of strained relations, Chinese reporters often seek commentary about a country's position or a company's position on current issues. Reporters tend to play up a company's
    opposition to the home country's action or policy and expressions in support for China on the issue. Great care should be taken in responding to inquiries as the Chinese media is
    no longer isolated. Reports in People's Daily or Chinese trade media can be published in The New York Times or the Washington Post within days or even hours. Government relations
    and perceptions in both the home country and in China must be taken into consideration.

Annabelle Warren is EVP, Hill and Knowlton Asia Pacific. She can be reached at: [email protected].