Bloomberg in China: It's Not About the Terminals, It's About the Data

Either way, there's a tension with the company's journalistic operations.
Bloomberg Terminal ( Museum of American Finance )

In an item yesterday about the latest Bloomberg-in-China flap, I quoted a note I'd received late last year from someone inside the company:

Outsiders think the worst explanation for this controversy is that it's concerned about selling terminals within China. It's bigger than that. Really it's about continuing sales all around the world, if Bloomberg can't promise having the fastest inside info from China.

Just now this note arrived, in the same vein:

I don't work for Bloomberg.  But I do work for a competitor.

The primary reason for the suppressing China investigating reporting is not about terminals.  It is about DATA.

Bloomberg terminals are clunky and old, but what makes the terminals valuable is the timeliness of information and data that the terminal delivers.

The data part is the most important asset for financial professionals that use Bloomberg terminals.

Bloomberg is afraid of being shut out of access to economic indicators and statistics for China.  Granted this information/data as of today is unreliable and sketchy, but as China is forced to become more transparent (i.e. globalization of the yuan as a currency) it is going to have to provide more transparency on economic/financial indicators and statistics.  

Bloomberg pulling back is not primarily because of terminal sales, although this is important,  but access to financial information.

For the record: I've asked for on-the-record responses from Bloomberg spokespeople or officials; the one person I have heard back from said that the company declined to comment. Also, check out this ChinaFile conversation on the topic. 

Previous post                                                                          Next post

Presented by

James Fallows is a national correspondent for The Atlantic and has written for the magazine since the late 1970s. He has reported extensively from outside the United States and once worked as President Carter's chief speechwriter. His latest book is China Airborne. More

James Fallows is based in Washington as a national correspondent for The Atlantic. He has worked for the magazine for nearly 30 years and in that time has also lived in Seattle, Berkeley, Austin, Tokyo, Kuala Lumpur, Shanghai, and Beijing. He was raised in Redlands, California, received his undergraduate degree in American history and literature from Harvard, and received a graduate degree in economics from Oxford as a Rhodes scholar. In addition to working for The Atlantic, he has spent two years as chief White House speechwriter for Jimmy Carter, two years as the editor of US News & World Report, and six months as a program designer at Microsoft. He is an instrument-rated private pilot. He is also now the chair in U.S. media at the U.S. Studies Centre at the University of Sydney, in Australia.

Fallows has been a finalist for the National Magazine Award five times and has won once; he has also won the American Book Award for nonfiction and a N.Y. Emmy award for the documentary series Doing Business in China. He was the founding chairman of the New America Foundation. His recent books Blind Into Baghdad (2006) and Postcards From Tomorrow Square (2009) are based on his writings for The Atlantic. His latest book is China Airborne. He is married to Deborah Fallows, author of the recent book Dreaming in Chinese. They have two married sons.

Fallows welcomes and frequently quotes from reader mail sent via the "Email" button below. Unless you specify otherwise, we consider any incoming mail available for possible quotation -- but not with the sender's real name unless you explicitly state that it may be used. If you are wondering why Fallows does not use a "Comments" field below his posts, please see previous explanations here and here.

Saving the Bees

Honeybees contribute more than $15 billion to the U.S. economy. A short documentary considers how desperate beekeepers are trying to keep their hives alive.

Video

How to Cook Spaghetti Squash (and Why)

Cooking for yourself is one of the surest ways to eat well.

Video

Before Tinder, a Tree

Looking for your soulmate? Write a letter to the "Bridegroom's Oak" in Germany.

Video

The Health Benefits of Going Outside

People spend too much time indoors. One solution: ecotherapy.

Video

Where High Tech Meets the 1950s

Why did Green Bank, West Virginia, ban wireless signals? For science.

Video

Yes, Quidditch Is Real

How J.K. Rowling's magical sport spread from Hogwarts to college campuses

Video

Would You Live in a Treehouse?

A treehouse can be an ideal office space, vacation rental, and way of reconnecting with your youth.

More in Global

From This Author

Just In