Finally, a free afternoon to do nothing but relax and update this Beijing blog that is becoming increasingly more difficult to sustain – don’t expect another post any time in the near future. During the last two weeks, my time has been fully occupied, spending a few days each week on different business trips to the city of Shenyang.
Shenyang is the provincial capital of Liaoning Province and the transportation hub for Northeast China. This city of 7 million people was once the “Industrial Center” during China’s industrialization movement in the 1950’s focusing on steel production and chemical processing. After Deng Xioaping’s opening reforms, as the nation began to privatize, most of the state-owned enterprises in heavy industry went bankrupt in the region. This rust-belt city suffered for some time until the central government launched a set of initiatives and policy reforms to help “revitalize the Northeast” This “Pittsburg of China” is currently experiencing tremendous growth as MNCs expand into the city and as the disposable incomes of those living in the metropolitan area climb at an astounding rate.
My job is to research about Shenyang’s real estate markets (retail, residential, and office) and in doing so I have absorbed an incredible amount of information about the city. For example, Shenyang has become the retail hub for northeast China with currently more luxury and high-end retail space than Beijing. Since 90% of the companies in Shenyang are domestic firms that prioritize price of office space over quality, the majority of office buildings are crap – ugly low Grade B strata-titled towers. However, considering that all quality space is basically occupied, every developer and their mother has a Grade A office project in the works. And on the residential side of things, huge complexes are being erected to the south of the Hunnan River that bisects the city, where land is cheaper and where the Olympic Stadium (for soccer preliminaries) has been built. This second-tier city is going through a transformation that Beijing experienced maybe only 5 years ago. For someone like me, and especially for someone in real estate, this dynamic and fast-paced city is rather exhilarating. I prefer not to elaborate much further on property market activity and trends in Shenyang (mainly because that’s what I write about all week) but rather a few observations I made during my stay.
First of all, Shenyang gets a bad rap throughout China for its notorious organized crime syndicates and corrupt political leaders. In the past, I had heard of numerous shady business deals that were rooted in Shenyang, I had met a group of Shenyang gangster’s during a drunken escapade in Sanlitun (Beijing’s bar street), and before I left for the airport, my colleague advised me not to look at anybody directly in the eye unless I was indeed looking for trouble. I was expecting the worst… and was delighted to find the exact opposite. My encounters in Shenyang left me with a positive impression of the laobaixing (ordiary folk) of the city – in fact, they were friendlier and more hospitable than their Beijing counterparts. I spent a lot of time wondering the streets alone, exploring many run-down neighborhoods, chatting with old men playing chess, receiving smiles from xiaomaibu (convenient store) girls, and discussing my adoration for Shenyang with taxi drivers. One night, I stumbled upon two guys running a hole-in-the-wall chuanr (meat on a stick) joint, and because I was starving, I pulled up a stool and ordered 10 mutton chuanr. An hour and a few beers later, I found myself in a heated discussion over China’s new visa restrictions, Chinese soccer, and the pros and cons of living in Singapore. Before leaving, I told them that I would stop by during my next trip to the city and they said that a free bottle of Zero Beer (Shenyang’s local brew) would be waiting for me.
Shenyang may not be as international or as culturally dynamic as Beijing and thus the nightlife for an expat like myself may be limited to chuanr stands. However, with a bit of investigation, we were able to find one bar street – called XiTa Jie. This area, known as little Korea to the locals, is filled with Korean restaurants, Korean style bars (soju bars) and room saloons (KTVs where you can buy a girl for a night). This scene filled with neon lights and “girls for hire” did not surprise me at all. As I have mentioned before in my posts about Seoul and Dalian (another city with a high Korean population), Korean business men do not have any moral qualms with objectifying women as long as these women are not married. Korean wives, on the other hand, are expected to remain tolerant of this male-dominated practice which is deemed acceptable in a traditional society where ideology is focused around filial piety (obey thy husband, thy father, thy elder).
Lastly, I would like to say that Shenyang reinvigorated my love for life in China. Overshadowed by pollution, westernization, and of course Big Brother, Beijing has lost much of its glamour over the years. I came to China to learn Chinese, see the country modernize, and allow myself to grow with a global perspective. I believe that I have been successful in accomplishing much of this to a certain extent, but I can also see Beijing slowing down economically and beginning to plateau as a modern Asian city, too many people can speak English, and the familiarity of Beijing and its newly embraced sense of modernity is making life in Beijing somewhat monotonous. Perhaps, I’m just being a melancholy grouch today, but I am cogitating more and more how wonderful it would be to relocate to a second-tier city, where I can feel like I am in China again and find myself surrounded by the unfamiliar. Clearly, I am still at an age where personal discovery and free will are basic drivers that shape my existence – and while “stability and security” are still vying to dominate this approach to life, I should take advantage of my youth by maintaining a simple path towards personal enlightenment.
In other words, I am never complacent.
Sunday, July 20, 2008
Thursday, July 3, 2008
Stupid and Sad
Below is a post I found on a popular blog about China. It discusses the effects of China's new visa policy which has been used to deport most expats and limit visitors to the country. Clearly the author has very little respect for the cultural significance of free-lance writers and English teachers, but his portrayal of how the new visa policy is distrupting manufacturers in China is interesting... and alarming. Another reason why I am not a fan of the Olympics.
The China visa issue is now becoming more unpleasant than a stroll on a Qingdao beach (who said it wouldn't be a 'Green Olympics'?). We're not that bothered about the clear out of wannabe freelance hacks dodging tax, or the legion of Eurotrash and American trustafarians who've been slumming it in Shanghai and Beijing for years on dad's money. And we're certainly not bothered about the rumours that all chamber of commerce staff in Shanghai are having their visas denied - AmScam, BritScam, EUScam, etc. outside of Beijing (which recognises only one office per organisation and that is in Beijing), which have always technically been illegal. True or not, the world will go on without AmScam or BritScam we suspect... Indeed we suspect it will be a better place.
The real adverse effects of the visa crackdown will be felt and suffered by Chinese people and businesses. Consider the following problems we've encountered in the last couple of weeks:
A number of brands manufacturing in China need to place Xmas orders. They have policies that independent factory inspections must occur to ensure working conditions etc as part of their CSR. They don't use local inspectors given the problems with those and formula box ticking scams. However, their inspectors cannot get a visa, and so cannot approve the factory and so the contract cannot be awarded. While Beijing may think the Olympics is worth all this, the fact is that the West cannot move Xmas to late February. Even if (and there are no guarantees) things return to normal in September, it will be too late for these firms who need to get gear on boats in October for the holidays. Now many are scrambling to find capacity in Vietnam, Bangladesh, etc., while any number of Chinese garment manufacturers (two thirds of whom operate on margins of less than 1.5% already) will go under.
A number of companies with production runs already underway are having to stall or delay work as they cannot get visas for their Quality Assurance (QA) staff to enter China. Few are willing to let 500,000 leather jackets be produced without getting someone to do some QA, so delays are occurring, meaning factories will get paid late or have orders cancelled. In Hong Kong last week, Access Asia was offered US$1,000 for every referral of a qualified, experienced China-based QA person we could find as desperation sets in.
Sourcers are finding visas problematic. Canton Fair this year was a bust, and now major sourcing centres such as Yiwu and Wenzhou are empty and local traders are disgruntled as they can't get deal volume as in the past due to regular customers being denied visas.
Several language training companies we know (the sort that do specialist corporate language training so all staff can do their jobs better and remain connected with the rest of the world) cannot get visas for their trainers to travel in and run classes - contracts lost, staff not receiving training.
All of the visa problems above are of course not about twenty-something foreigners hanging out in Shanghai bars, shonky English teachers boltholing in China or tax dodging. This sort of stuff will ultimately force business failures, job losses and, ultimately, disgruntlement. Traders we talked to at Wenzhou and Yiwu recently agreed with us that none of this was worth it in the name of a couple of weeks of minority sports.
A major fall out will be that people who have talked about moving production to other countries for some time are now actually having to do it to meet deadlines. Smart manufacturers in those countries are offering keen prices and will go all out to do a good job - they know this is their moment in the sun, and a chance to win serious business away from China. For many brands (once they have made the move, and if a good job is done) the inclination will be not to bother to go through the process of moving production back to China all over again. Whether China wins the Olympics or not, the long lasting fall out from these silly Games will be serious and terminal for a lot of business people as a significant percentage of business moves elsewhere and doesn't come back once the Olympics are over.
The fact is that many good manufacturers have survived and absorbed energy costs, rising transport costs, high input and commodity costs, soaring freight costs, rising wage bills and new labour laws (not to mention tough western companies looking for cheap, cheap prices). But they may not be able to survive the actions of the visa issuing department. Stupid and sad.
Wednesday, July 2, 2008
Some Highlights
Well, let me just say that it has been a crazy few weeks packed with work, athletic contests, and a slew of social events. Clearly, I am enjoying my time here in Beijing, allowing me very little free time to update this blog – so it goes. Instead of focusing on any particular event or theme (which seems to be my style of posting) I will now give you the highlight reel of the last three weeks in chronological order...
Obama Fundraiser. I am a news junkie and during the recent primary season, I have been following the latest on each presidential candidate through an array of online media outlets including Youtube, NYTimes, CNN, Politico, and of course Drudge Report. I am also a staunch Obama supporter, having already contributed money to his campaign back in February. When I heard that two of his foreign policy advisers were hosting a fundraiser here in Beijing, I could not resist. This American-only event was held in a club at a high-end residential complex called the Embassy House featuring a band, an open bar, imported treats like hummus and Tostitos, and an outside patio dominated by a grizzly man in Red Sox hat grilling hotdogs and barbeque ribs by the dozens. It felt like home. Obama’s advisors spoke briefly followed by 30 minutes of Q&A. Most of what was said concerning policy was already known to me (and of course diplomatic answers were given when asked about Obama’s approach to China), however, I found it rather motivating when they gave personal accounts about how they were inspired to join up with Barack following his 2004 Democratic convention speech. These ex-Bill Clinton foreign policy advisors exuded hope for our country and this enthusiasm was gleefully embraced by over two hundred Americans living and studying in Beijing. I doubt that that will be the last $25 donation I make before November.
Birthday Bash. My birthday was celebrated in proper fashion: a mix of good friends, Korean barbeque, and countless pitchers of green tea and whiskey. I suppose I should stop treating every birthday like it’s my 21st (for my liver’s sake), however, in Chinese tradition every birthday that falls on your Chinese Zodiac year (occurring once every twelve years) should call for a special celebration. I am a rat, 2008 is the year of the rat, I am not 12 nor am I 36… if you can’t guess how old I am please go back to school. All in all, the party was marvelous in every way and I have many to thank for that, especially my girlfriend, who also treated me to a lovely birthday dinner the following week at a restaurant called Dali Courtyard, a hidden gem in a random hutong serving authentic and rather delightful Yunnan cuisine.
Lax Tourney. As you may or may not know from a previous blog, I belong to a men’s lacrosse league here in Beijing. We practice every Sunday morning and sometimes Thursday evenings and although we play for the love of the game and the fulfillment of camaraderie, we always talk about winning the Beijing Cup that has taken place every June for the past 6 years. This year, this weekend tournament was attended by a Japanese team, a Hong Kong Team, two Korean teams, a Chinese team (groomed by us), an under-19 California All-star team, and of course our team, the laxpats (lacrosse expats). Corresponding girls’ teams also contested on adjacent fields. Historically, our greatest challengers have been the American teams and Japanese teams – the Japanese are outstanding players and the Japanese expats on our team, including the goalie, were major assets to our squad. In fact, because of the depth on our team which included three ex-national-team players (from America, Canada, and Japan), we found ourselves overpowering every team during the first day of competition - granted we were playing in the blistering heat and many of the younger players on the other teams were suffering from jet lag, Chinese food, and Beijing smog. On the other hand, many of our guys are balding out-of-shape cigarette smokers, who preferred drinking beer on the sidelines to water. After 4 forty minute games throughout Saturday, our bodies were in complete shock, our feet were covered in blisters, and our bare shoulders were raw from the sun (I currently have the world’s worst farmer tan). On Sunday, we easily beat the Japanese team in the morning and because the fields were out far in West Beijing and we were only team without a nearby hotel, we had no choice but to find something to do for six hours until the championship game. Instead of burning alive in the sun, we spend the whole afternoon chilling in KFC followed by hanging out in the neighborhood pool club relaxing in the water and making fun of the Chinese men in Speedos – we clearly took the championship seriously. After a full 60 minutes of lacrosse against the California kids, we emerged victorious – winning the Beijing Cup for the first time ever. By the end of the weekend, my body was completely numb, my skin was peeling, and my urine was dark yellow – it was the longest, most exhausting yet most exhilarating weekend I’ve had in a long time. *Sigh*
Great Wall Rave. Last weekend, I attended the annual Great Wall Party that usually draws a crowd of over three to four hundred eccentric young Beijing expats looking for a crazy night at an unconventional venue. Imagine the Great Wall, a beach, a dance party, techno music combined with all the sinful happenings of today’s youth fused together for one night of insidious bliss. Personally, I had more fun pre-partying on the four hour bus ride on the way up defined by karaoke, baijiu (Chinese liquor) guzzling, and random stops at rest stops with enormous neon signs that said “TOILET”. At the beach (where the Great Wall ends) I vaguely remember hotdogs, blue face paint, and a monsoon type rain storm – all other disreputable details I may have witnessed in this haven of hedonistic havoc will not be disclosed on this blog. It was a blast, but let’s just say that I’m glad to be back in reality.
Not Ready. Yesterday, about to get on the subway, a security woman said something to me (in Chinese) and pointed at the X-ray machine indicating that they wanted to check my bag for explosives or other harmful materials. I smiled (already late for work) and walked past her. Beefing up security seems useless if dangerous folk could voluntarily opt out of the screening process. A little while later, about to get off the metro, I and my fellow commuters were stuck in our subway while it took 10 minutes for the driver to figure out how to open the doors. People were so mad that some threatened to break down the door. Is Beijing prepared for the Olympics? Ha.
Obama Fundraiser. I am a news junkie and during the recent primary season, I have been following the latest on each presidential candidate through an array of online media outlets including Youtube, NYTimes, CNN, Politico, and of course Drudge Report. I am also a staunch Obama supporter, having already contributed money to his campaign back in February. When I heard that two of his foreign policy advisers were hosting a fundraiser here in Beijing, I could not resist. This American-only event was held in a club at a high-end residential complex called the Embassy House featuring a band, an open bar, imported treats like hummus and Tostitos, and an outside patio dominated by a grizzly man in Red Sox hat grilling hotdogs and barbeque ribs by the dozens. It felt like home. Obama’s advisors spoke briefly followed by 30 minutes of Q&A. Most of what was said concerning policy was already known to me (and of course diplomatic answers were given when asked about Obama’s approach to China), however, I found it rather motivating when they gave personal accounts about how they were inspired to join up with Barack following his 2004 Democratic convention speech. These ex-Bill Clinton foreign policy advisors exuded hope for our country and this enthusiasm was gleefully embraced by over two hundred Americans living and studying in Beijing. I doubt that that will be the last $25 donation I make before November.
Birthday Bash. My birthday was celebrated in proper fashion: a mix of good friends, Korean barbeque, and countless pitchers of green tea and whiskey. I suppose I should stop treating every birthday like it’s my 21st (for my liver’s sake), however, in Chinese tradition every birthday that falls on your Chinese Zodiac year (occurring once every twelve years) should call for a special celebration. I am a rat, 2008 is the year of the rat, I am not 12 nor am I 36… if you can’t guess how old I am please go back to school. All in all, the party was marvelous in every way and I have many to thank for that, especially my girlfriend, who also treated me to a lovely birthday dinner the following week at a restaurant called Dali Courtyard, a hidden gem in a random hutong serving authentic and rather delightful Yunnan cuisine.
Lax Tourney. As you may or may not know from a previous blog, I belong to a men’s lacrosse league here in Beijing. We practice every Sunday morning and sometimes Thursday evenings and although we play for the love of the game and the fulfillment of camaraderie, we always talk about winning the Beijing Cup that has taken place every June for the past 6 years. This year, this weekend tournament was attended by a Japanese team, a Hong Kong Team, two Korean teams, a Chinese team (groomed by us), an under-19 California All-star team, and of course our team, the laxpats (lacrosse expats). Corresponding girls’ teams also contested on adjacent fields. Historically, our greatest challengers have been the American teams and Japanese teams – the Japanese are outstanding players and the Japanese expats on our team, including the goalie, were major assets to our squad. In fact, because of the depth on our team which included three ex-national-team players (from America, Canada, and Japan), we found ourselves overpowering every team during the first day of competition - granted we were playing in the blistering heat and many of the younger players on the other teams were suffering from jet lag, Chinese food, and Beijing smog. On the other hand, many of our guys are balding out-of-shape cigarette smokers, who preferred drinking beer on the sidelines to water. After 4 forty minute games throughout Saturday, our bodies were in complete shock, our feet were covered in blisters, and our bare shoulders were raw from the sun (I currently have the world’s worst farmer tan). On Sunday, we easily beat the Japanese team in the morning and because the fields were out far in West Beijing and we were only team without a nearby hotel, we had no choice but to find something to do for six hours until the championship game. Instead of burning alive in the sun, we spend the whole afternoon chilling in KFC followed by hanging out in the neighborhood pool club relaxing in the water and making fun of the Chinese men in Speedos – we clearly took the championship seriously. After a full 60 minutes of lacrosse against the California kids, we emerged victorious – winning the Beijing Cup for the first time ever. By the end of the weekend, my body was completely numb, my skin was peeling, and my urine was dark yellow – it was the longest, most exhausting yet most exhilarating weekend I’ve had in a long time. *Sigh*
Great Wall Rave. Last weekend, I attended the annual Great Wall Party that usually draws a crowd of over three to four hundred eccentric young Beijing expats looking for a crazy night at an unconventional venue. Imagine the Great Wall, a beach, a dance party, techno music combined with all the sinful happenings of today’s youth fused together for one night of insidious bliss. Personally, I had more fun pre-partying on the four hour bus ride on the way up defined by karaoke, baijiu (Chinese liquor) guzzling, and random stops at rest stops with enormous neon signs that said “TOILET”. At the beach (where the Great Wall ends) I vaguely remember hotdogs, blue face paint, and a monsoon type rain storm – all other disreputable details I may have witnessed in this haven of hedonistic havoc will not be disclosed on this blog. It was a blast, but let’s just say that I’m glad to be back in reality.
Not Ready. Yesterday, about to get on the subway, a security woman said something to me (in Chinese) and pointed at the X-ray machine indicating that they wanted to check my bag for explosives or other harmful materials. I smiled (already late for work) and walked past her. Beefing up security seems useless if dangerous folk could voluntarily opt out of the screening process. A little while later, about to get off the metro, I and my fellow commuters were stuck in our subway while it took 10 minutes for the driver to figure out how to open the doors. People were so mad that some threatened to break down the door. Is Beijing prepared for the Olympics? Ha.
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