March 17, 2012
Packed up all belongings and met the group in the lobby of the YMCA- Salisbury Hotel at 5 am. Bus takes us to Hong Kong airport. Saw the first sunrise of the day.
9:45 flight on Delta 777 back to Detroit. 14.5 hour flight. See second sunrise of the day from the plane.
Arrive in Detroit 12:25 pm local time. Layover until 6 pm when catch flight back to Greensboro.
Arrive in Greensboro at 7:30 pm on same day, Saturday, March 17 after over 20 hours of travel.
Like the movie Groundhog Day.
But, we made it!
Stop by my parents' house in Salisbury to pick up George our dog.
Back to Shelby for long winter's nap.
What an adventure!
I have much respect for China and Chinese people after visiting. I think many Americans are afraid of the Chinese and believe they are stealing all our jobs and will take over the world or something. After meeting Chinese people you see that they have no such intentions. Chinese people are submissive and polite. They simply want a better life. They look at Americans and think we have it all. They want a house, a car, a cellphone and clothes with American brand names on them. I wish we could have seen the country and farmland to see how the majority of the Chinese really live. We saw only city life and the wealthiest Chinese who all had cell phones and Ipads and cars. They are a small, but growing percentage of the entire population. I would have also liked to have seen the mountains to the west. Supposedly beautiful mountains that rival our Rocky mountains. Don't know if I will ever make it back to China. There are so many other places I would like to visit first- Japan and Tibet, for instance. So glad we went though.
Saturday, April 7, 2012
March 16, 2012- Hong Kong, Big Buddha
March 16, 2012
Free day in Hong Kong. Lex, Nirav, Shridhar and I decided to take a trip to see the Big Buddha at the Po Lin monastery on Lantau Island. This would require transport on the subway from Hong Kong island west to Lantau Island. Then we would take a bus to the top of the mountain to see the Buddha. Normally, a cable car would be available to take us up the mountain, but it is closed for repairs.
Free day in Hong Kong. Lex, Nirav, Shridhar and I decided to take a trip to see the Big Buddha at the Po Lin monastery on Lantau Island. This would require transport on the subway from Hong Kong island west to Lantau Island. Then we would take a bus to the top of the mountain to see the Buddha. Normally, a cable car would be available to take us up the mountain, but it is closed for repairs.
We start our day at 8 am and head to StarBucks for breakfast in Hong Kong. Then we head to the subway station. The subways are VERY nice and clean. Ticket purchase is very easy and all automated. You simply enter your final destination, it tells you how much it will cost, you add money, and out pops your subway ticket!
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| Lex purchasing subway ticket |
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| Nirav, Lex and Sridhar on subway. Mind the gap! |
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| Bus ride to Big Buddha |
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| The Big Buddha |
After about 1.5 hours traveling, we arrived at the Big Buddha at the Po Lin Monastery. This is the largest Buddha in the world, made of bronze and weighing 250 tons. 260 steps up to the Buddha.
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| Bodhisattva statues |
Six Bodhisattva statues, saints who gave up their palace in heaven to help us mere mortals get a place ourselves, surround the Buddha with offerings. Spectacular view from the mountain top with the Buddha.
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| View of Po Lin monastery from Buddha |
On the way back we stopped at a large Chinese grocery store in to check it out. Lots of fresh vegetables and live fish.
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| Deep fried duck feet- hard to resist! |
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| Largest ginger and carrots in the world! |
Arrived back in Hong Kong and headed over to the Ladies Market to do some shopping. Shopping in Hong Kong is much more enjoyable than the markets in mainland China. All the products have prices and very little haggling is required. I bought several silk scarves and a silk table runner as cheap as in Beijing.
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| Ladies market in Hong Kong |
Back to the YMCA for a quick shower and then off with the group for our last group dinner and harbor cruise.
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| Hong Kong harbor cruise |
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| Andy- HA |
We had an extended river cruise in order to enjoy the light show in downtown Hong Kong. Ate dinner at a seafood restaurant on neighboring island. Then back to dock in Hong Kong where bus met us to take us back to the YMCA. This concluded our last day of the China adventure. Amazing what we did in just a single week!
Sunday, April 1, 2012
March 15, 2012- Hong Kong
March 15, 2012
Breakfast early in the hotel and then board bus to transit to Hong Kong.
Entry to Hong Kong was very confusing. We exited the bus and were officially processed out of mainland China. Then we boarded the bus again for entry into Hong Kong. Waited in a very crowded line for about an hour, in order to get through Hong Kong customs. Many Chinese vacation to Hong Kong for just one day and are in a hurry. We got to see first hand the fact that Chinese do not hold any regard for lines or queues. We had a hard time keeping our group together in line as the Chinese would move into any gap available. This situation was pretty funny really. We managed to keep the group roughly together until we got to customs. Shew!
Back on a new bus with our new guide, Andy- ha! He said that a lot. Driving around Hong Kong reminded me a lot of New York. Luxury buildings, brands, cars, etc. by the water. Stopped for Dim Sum lunch with many Chinese tourists.
Stopped for a bit to see Hong Kong harbor. Weather was a bit cloudy, but still very impressive. Water was emerald green.
Lecture at Hong Kong University by Doug Vogel, professor of Information Systems.
Breakfast early in the hotel and then board bus to transit to Hong Kong.
Entry to Hong Kong was very confusing. We exited the bus and were officially processed out of mainland China. Then we boarded the bus again for entry into Hong Kong. Waited in a very crowded line for about an hour, in order to get through Hong Kong customs. Many Chinese vacation to Hong Kong for just one day and are in a hurry. We got to see first hand the fact that Chinese do not hold any regard for lines or queues. We had a hard time keeping our group together in line as the Chinese would move into any gap available. This situation was pretty funny really. We managed to keep the group roughly together until we got to customs. Shew!
Back on a new bus with our new guide, Andy- ha! He said that a lot. Driving around Hong Kong reminded me a lot of New York. Luxury buildings, brands, cars, etc. by the water. Stopped for Dim Sum lunch with many Chinese tourists.
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| Dim Sum lunch in Hong Kong |
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| Dim Sum lunch |
Dim Sum lunch was very good. The difference between other meals we had was the dumplings- many trays of dumplings of all types. All were delicious.
Lecture at Hong Kong University by Doug Vogel, professor of Information Systems.
He began with this slide, Chinese view of GDP, purchasing power parity. China's PPP is the red line, Europe is blue, Japan is violet and the US is green. This chart starts in the year 0 AD. Until around 1840, China dominated world trade, controlling over 25% of the world GDP. China's decline in the world economy began with the Industrial Revolution, to which they were very late to the party. The point is that the decline in the Chinese economy since the mid-1800's is just a blip in Chinese history. The Chinese see the world through their rich history which is 5,000 years old. They see their very recent rise in prosperity (during the past few decades) not as a new "emerging" economy, but as a return to the norm. Interesting perspective which we must recognize in order to understand their culture, I believe. The Chinese see the US as newcomers to the world stage.
Here are some notes from the lecture:
Doing business in China is relationship driven- Guanxi is the Chinese word for relationships between business people. The concept is that guanxi is a tit-for-tat relationship between two people and the idea is that of establishing relationships with people that could be beneficial down the line. This definitely happens in US buisness, but we don't really have a word for it. We might refer to someone as "connected" which means the same thing.
Doing business in China is relationship driven- Guanxi is the Chinese word for relationships between business people. The concept is that guanxi is a tit-for-tat relationship between two people and the idea is that of establishing relationships with people that could be beneficial down the line. This definitely happens in US buisness, but we don't really have a word for it. We might refer to someone as "connected" which means the same thing.
54 different cultures in China- as complex as Europe
Need a license to do business in each province in China
Environmental problems:
electricity produced mostly by coal, high sulfur coal
Hong Kong/ China relations- 2 systems
July 1997 transition
British had 100 year lease on HK mainland
One country now with 2 legal systems and seperate legislature
Question as to who had the right to live in Hong Kong after the transition- children born in HK have right to Hong Kong identity card. Pregnant women from Chinese mainland enter Hong Kong to have their children so they will have HK citizenship
Hong Kong has prospered after the handover even though it had been predicted that it would not
Hong Kong is dependent on mainland China for water
Taxes ar 15% maximum in HK
Hong Kong taxes companies and government owns the land- has torn down many buildings and rebuilt
Housing costs very high in HK
60% of HK is parks and is land protected
Taxis in HK run on natural gas
HK converting cars to low sulfur diesel
Recycling is a new idea in China and HK
Lots of jobs available for educated Americans in HK
Industries in HK:
-previously an industrial base, during the cultural revolution industry moved from China to HK
-manufacturing has now moved back across the border into China mainland
-HK is now the financial center for China
-shipping and transport was centered in HK, ports are now declining in HK, HK port is very shallow- 36 ft.
-HK airport- largest freight airport in the world
Labor shortage on the mainland
FoxConn has 900,000 employees!
One child policy is adding to labor shortage problems
Labor is becoming expensive
Manufacturers are moving to Vietnam because of rising labor costs
Chinese realize they are living on success of exporting which will not last forever. They realize they must learn to innovate and create to compete long-term with rising labor costs
Very interesting lecture with Dr. Vogel
Checked into the YMCA- Salisbury right in the heart of downtown Hong Kong. Very nice hotel. I was exhausted and headed straight for bed. Lex went to Indian restaurant with Nirav and Shridar.
Question as to who had the right to live in Hong Kong after the transition- children born in HK have right to Hong Kong identity card. Pregnant women from Chinese mainland enter Hong Kong to have their children so they will have HK citizenship
Hong Kong has prospered after the handover even though it had been predicted that it would not
Hong Kong is dependent on mainland China for water
Taxes ar 15% maximum in HK
Hong Kong taxes companies and government owns the land- has torn down many buildings and rebuilt
Housing costs very high in HK
60% of HK is parks and is land protected
Taxis in HK run on natural gas
HK converting cars to low sulfur diesel
Recycling is a new idea in China and HK
Lots of jobs available for educated Americans in HK
Industries in HK:
-previously an industrial base, during the cultural revolution industry moved from China to HK
-manufacturing has now moved back across the border into China mainland
-HK is now the financial center for China
-shipping and transport was centered in HK, ports are now declining in HK, HK port is very shallow- 36 ft.
-HK airport- largest freight airport in the world
Labor shortage on the mainland
FoxConn has 900,000 employees!
One child policy is adding to labor shortage problems
Labor is becoming expensive
Manufacturers are moving to Vietnam because of rising labor costs
Chinese realize they are living on success of exporting which will not last forever. They realize they must learn to innovate and create to compete long-term with rising labor costs
Very interesting lecture with Dr. Vogel
Checked into the YMCA- Salisbury right in the heart of downtown Hong Kong. Very nice hotel. I was exhausted and headed straight for bed. Lex went to Indian restaurant with Nirav and Shridar.
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| YMCA Salisbury lobby in Hong Kong |
March 14, 2012- Dongguan, Bernhardt tour
March 14, 2012-
Breakfast at the hotel which was delux. Met at the Bernhardt Chinese headquarters in the hotel. Amazing that only 5 employees are responsible for co-ordinating the manufacture and shipment of Berhardt furniture in China. Toured Mike and Steve's offices.
Cathy took over as our tourguide. Headed off to Lacquer Craft furniture manufacturing facility on Dongguan. Dongguan is an amazing NEW city of 12 million people that has popped up in only the past 15 years. This is manufacturing outsourcing mecca. Passed many manufacturing facilities and apartment buildings. Arrived at Lacquer Craft, a Taiwanese company which produces Bernhardt furniture. This is an enormous plant which produces furniture from raw lumber to finished product. Employees live in barracks at the plant.
Cathy and Bernhardt Furniture treated us to lunch at hunan style restaurant. Food was much spicier than what we had had before. Some was too spicy. Sat next to Cathy at lunch and learned some interesting things about manufacturing in China. Most interesting was that workers are hard to keep. In Dongguan, there are lots of choices for employment. Workers are free to change jobs and do so for small increases in wages. This is becoming a problem in China as it is causing wage inflation. Most interesting to me was the fact that all Bernhardt furniture is produced by Lacquer Craft and if Bernhardt wants to move production to Vietnam, for instance, it would not be too hard to do. They have very little invested directly in Dongguan.
On the way back to the hotel, we did a quick stop in downtown Dongguan. Amazing skyscrapers, gardens and municipal buildings. This whole town is brand-new.
Got back to the hotel early with afternoon off. I took a quick nap then met up with Atul, Bryan, Brittany and Nirav to hike over to Buddhist monument on top of nearby hill. Sridhar was not feeling well. Walked around the lake close to hotel and then through an enchanting Buddhist garden up to monument on top with amazing view of Dongguan.
Breakfast at the hotel which was delux. Met at the Bernhardt Chinese headquarters in the hotel. Amazing that only 5 employees are responsible for co-ordinating the manufacture and shipment of Berhardt furniture in China. Toured Mike and Steve's offices.
Cathy took over as our tourguide. Headed off to Lacquer Craft furniture manufacturing facility on Dongguan. Dongguan is an amazing NEW city of 12 million people that has popped up in only the past 15 years. This is manufacturing outsourcing mecca. Passed many manufacturing facilities and apartment buildings. Arrived at Lacquer Craft, a Taiwanese company which produces Bernhardt furniture. This is an enormous plant which produces furniture from raw lumber to finished product. Employees live in barracks at the plant.
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| Host showing us the layout of Lacquer Craft plant in Dongguan |
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| Furniture production begins with treatment of raw wood |
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| Large warehouse for wood cutting |
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| Finished product |
Cathy and Bernhardt Furniture treated us to lunch at hunan style restaurant. Food was much spicier than what we had had before. Some was too spicy. Sat next to Cathy at lunch and learned some interesting things about manufacturing in China. Most interesting was that workers are hard to keep. In Dongguan, there are lots of choices for employment. Workers are free to change jobs and do so for small increases in wages. This is becoming a problem in China as it is causing wage inflation. Most interesting to me was the fact that all Bernhardt furniture is produced by Lacquer Craft and if Bernhardt wants to move production to Vietnam, for instance, it would not be too hard to do. They have very little invested directly in Dongguan.
On the way back to the hotel, we did a quick stop in downtown Dongguan. Amazing skyscrapers, gardens and municipal buildings. This whole town is brand-new.
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| Building shaped like a ship in Dongguan |
Got back to the hotel early with afternoon off. I took a quick nap then met up with Atul, Bryan, Brittany and Nirav to hike over to Buddhist monument on top of nearby hill. Sridhar was not feeling well. Walked around the lake close to hotel and then through an enchanting Buddhist garden up to monument on top with amazing view of Dongguan.
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| Path around lake to buddhist monument |
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| Nirav, Atul, Bryan, Brittany, Michelle and Lex at Buddhist monument |
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| View of Dongguan from monument |
Had sushi dinner at hotel and off to bed. Another eventful day!
March 13, 2012- Flight to Shenzhen, Huawei tour, Dongguan
March 13, 2012
Meet at 5 am in lobby of SunWorld hotel for check out and transfer to Beijing International airport.
Beijing International airport is one of the world's largest and we leave from the newest terminal built for the Olympics. Terminal looks literally like a city with a roof on it. It's huge! Ticket counter is amazingly efficient. We are able to pick our seats the day of the flight. Once on Shenzhen airliner, we are amazed at how nice the stewardesses are. Reminds me of air travel in the states 30 years ago. Dr. Cazier reminds me that flying is new to most Chinese who are ascending to the middle class. Food on the plane is very good and stewardesses perform a "hand" song at the end of the flight. Nice touch! Flight was about 3 hours to Shenzhen.
Shenzhen is a new manufacturing city where most employers are in technology business. Everything is new and nice. We stop at a small mall to have lunch. Lex, Nirav, Shridhar and I go to hotpot restaurant which smells really weird. I am not that hungry.
Next, we head to Huawei for a tour. Huawei is China's AT&T and largest telecommunications company. The schedule has been changed and we get a very short tour. I didn't learn too much there.
Back on the bus to Dongguan. Arrive at Hotel Sofitel Dongguan Royal Lagoon. This is a VERY nice hotel! What a treat. Bernhardt employees picked us up for dinner in town at a Western Chinese- Muslim restaurant which was delicious. This was one of my favorite meals in China. Food had Indian/ Pakistan/ Afghanastan influence and was spicy. Main meat was lamb and kabobs which were delicious. We also had a sweet ice wine from China. Grapes are picked after the first freeze, making the wine sweet. Steve and Mike were our hosts and we sat at their table. Steve is from Lenoir and went to Gardner Webb in Boiling Springs. He now has a Chinese wife and 2 children in China. He also has a few children in US from a previous marriage. He doesn't think he will ever go back to the states. Mike is Chinese and from one of the southern provences. We were talking about the bijeo tradition and he pointed out that southern Chinese are much more civilized and don't expect you to get drunk to get to know them! He had worked previously for a Canadian company in supply chain management, getting shipments across the Pacific. He said that was a very difficult job and he is much happier working for Bernhardt. Bernhardt's office which is in the hotel, consists of 5 people who work directly with the manufacturers in China to make sure the designs are handled correctly. then they co-ordinate the shipments.
Mike and I got into a political discussion about American workers vs. Chinese workers. All in all, dinner was a great experience to have real discussions with the Chinese and experience wonderful cuisine. One of my favorite experiences of the entire trip for sure.
Meet at 5 am in lobby of SunWorld hotel for check out and transfer to Beijing International airport.
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| Beijing airport |
Shenzhen is a new manufacturing city where most employers are in technology business. Everything is new and nice. We stop at a small mall to have lunch. Lex, Nirav, Shridhar and I go to hotpot restaurant which smells really weird. I am not that hungry.
Next, we head to Huawei for a tour. Huawei is China's AT&T and largest telecommunications company. The schedule has been changed and we get a very short tour. I didn't learn too much there.
Back on the bus to Dongguan. Arrive at Hotel Sofitel Dongguan Royal Lagoon. This is a VERY nice hotel! What a treat. Bernhardt employees picked us up for dinner in town at a Western Chinese- Muslim restaurant which was delicious. This was one of my favorite meals in China. Food had Indian/ Pakistan/ Afghanastan influence and was spicy. Main meat was lamb and kabobs which were delicious. We also had a sweet ice wine from China. Grapes are picked after the first freeze, making the wine sweet. Steve and Mike were our hosts and we sat at their table. Steve is from Lenoir and went to Gardner Webb in Boiling Springs. He now has a Chinese wife and 2 children in China. He also has a few children in US from a previous marriage. He doesn't think he will ever go back to the states. Mike is Chinese and from one of the southern provences. We were talking about the bijeo tradition and he pointed out that southern Chinese are much more civilized and don't expect you to get drunk to get to know them! He had worked previously for a Canadian company in supply chain management, getting shipments across the Pacific. He said that was a very difficult job and he is much happier working for Bernhardt. Bernhardt's office which is in the hotel, consists of 5 people who work directly with the manufacturers in China to make sure the designs are handled correctly. then they co-ordinate the shipments.
Mike and I got into a political discussion about American workers vs. Chinese workers. All in all, dinner was a great experience to have real discussions with the Chinese and experience wonderful cuisine. One of my favorite experiences of the entire trip for sure.
Saturday, March 31, 2012
March 12, 2012- Beijing- Lenovo, US Embassy and Quanjude Rd. Duck Restaurant
March 12, 2012
Trip to Lenovo
Got a very nice tour of Lenovo in Beijing. Lenovo is the world's second largest PC manufacturer and the single largest producer in Asia. Lenovo was incorporated in Hong Kong in 1988 with its previous name, Legend. Lenovo purchased IBM's PC business in 2005. Lenovo is mostly owned by the Chinese governement. I could not get a straight answer as to what percentage is publicly traded, but I do know that shares trade on the Hong Kong stock exchange. It was explained to us in the tour that Lenovo is focusing on bringing new products to Asia that satisfy the Asian consumer. They believe that this is where their largest potential market is. They test new products on the Asian market first. We got a short tour of the assembly plant, but workers were off, so not much to see really. Did get to see the warehouse which was 100% automated. Pulleys pluck components from the shelves. Lenovo does not pay for any of the parts until they are pulled from the shelf for production. Very efficient. Dr. Crandall would have loved to have seen it!
On the way, we got some stratistics form Wendy.
Literacy rate in China now- 93%
Life expectancy now- 74
Before 1949, life expectancy- 36
Farmers now- 55% or population
Before 1949, farmers- 85% of population
Chinese characters- 9 basic strokes, Mao simplified Chinese characters, young people not learning all the Chinese characters because of computers
unemployment rate now- 3.7% but this does not include farmers who consider themselves self-employed and are not counted
Medical insurance was only available to city workers, last year was offered to farmers
1 million trees are planted each year in Beijing to keep dust storms down and protect city from desert outside city.
Lunch at Hua Jia yi Yuan- Hot Pot- Restaurant. Was very good. Typical to most meals, but Hot Pot centered at the middle of the table was a little different. Hot Pot cooking with pork, peppers, vegetables, etc. Lotus root included in hot pot which was very good. Like a potato but unique shape.
After passing through security, we got inside the US Embassy in Beijing where we heard a lecture from Landon Loomis- Commercial Officer at the US Embassy in Beijing.
Loomis works with small and mid-size US companies that are trying to get established in China. For a small fee, they can help with their connections and knowledge of the Chinese system for much less cost than consultants.
Loomis' presentation was very interesting. He and his wife are both diplomats currently in Beijing. He will be moved to Mexico City in the next year. He gave us a nice overview of Chinese business and relations with the US.
US trade with China- $503 billion in 2011
US exports to China up 13%- 2010- 2011
China is US second largest trading partner after NAFTA
Chinese FDI into US- over $4 billion in 2010
77% of US debt owned by Americans
Only 1% of total US debt owned by Chinese
170 cities in China with populations over 1 million
Middle class now 23%- in 2020 will be 48%
Chinese reaction to 2008 Financial crisis- Total stimulus- $586 billion- $1.45 trillion from banks
Goals of stimulus- to stimulate economy, fund infrastructure
Problems with the stimulus- non-productive assets, debt horizon not matching, $250 billion unrecoverable
US- China Relations:
Xi Jinping- Vice Chariman- will be next president
Hu Jintao- current president
China's Challenges:
healthcare- no quality
inequality
affordable housing
food prices
demography
inflation
pollution
corruption
Per capita disposable inccome:
urban- $3,454 / year
rural- $1,105 / year
70% of electicity produced by coal
50% of water resources are severely polluted
12th Five Year plan:
Focus on Quality Growth
moving up value chain
Addressing Inequality
Enabling Consumption
Economic Restructuring:
7 strategic Industries- Technology 3%- 8%
Services- 47% of GDP
urbanization 51.5%
Innovation:
R&D funding to 12.5%
2.2% of GDP
Livelihood:
Healthcare
Housing
Population Control
Obstacles to US companies in China:
rising labor costs
protectionism
unclear regulatory environment
Website- www.buyusa.gov/china
Back on bus to Quanjude Rd Roast Duck Restaurant
The Quanjude Road Duck Restaurant is Beijing's most famous roast duck restaurant. We had several courses including scorpion appetizers. Scorpions were very good- deep fried. Duck was delicious. Skin was crispy and duck was not greasy. Duck is carved into 12 * 9 pieces, since both are lucky numbers. Typically served with hoisin sauce on a pancake with scallions. Best part of dinner was that students from BISU joined us and we got to see Icy again. She is so sweet. Lex has attempted to email her several times since we got back. She has not responded, so we are afraid our emails are being censored. We really wanted to keep in touch with her.
End of our last day in Beijing.
Trip to Lenovo
Got a very nice tour of Lenovo in Beijing. Lenovo is the world's second largest PC manufacturer and the single largest producer in Asia. Lenovo was incorporated in Hong Kong in 1988 with its previous name, Legend. Lenovo purchased IBM's PC business in 2005. Lenovo is mostly owned by the Chinese governement. I could not get a straight answer as to what percentage is publicly traded, but I do know that shares trade on the Hong Kong stock exchange. It was explained to us in the tour that Lenovo is focusing on bringing new products to Asia that satisfy the Asian consumer. They believe that this is where their largest potential market is. They test new products on the Asian market first. We got a short tour of the assembly plant, but workers were off, so not much to see really. Did get to see the warehouse which was 100% automated. Pulleys pluck components from the shelves. Lenovo does not pay for any of the parts until they are pulled from the shelf for production. Very efficient. Dr. Crandall would have loved to have seen it!
Headed back to US Embassy, got to see modern Beijing. Many new skyscrapers and apartment buildings. This town is being rebuilt. Real estate bubble for sure as Chinese are investing all their savings into apartments hoping to flip them.
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| Modern building construction everywhere in Beijing
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Literacy rate in China now- 93%
Life expectancy now- 74
Before 1949, life expectancy- 36
Farmers now- 55% or population
Before 1949, farmers- 85% of population
Chinese characters- 9 basic strokes, Mao simplified Chinese characters, young people not learning all the Chinese characters because of computers
unemployment rate now- 3.7% but this does not include farmers who consider themselves self-employed and are not counted
Medical insurance was only available to city workers, last year was offered to farmers
1 million trees are planted each year in Beijing to keep dust storms down and protect city from desert outside city.
Lunch at Hua Jia yi Yuan- Hot Pot- Restaurant. Was very good. Typical to most meals, but Hot Pot centered at the middle of the table was a little different. Hot Pot cooking with pork, peppers, vegetables, etc. Lotus root included in hot pot which was very good. Like a potato but unique shape.
After passing through security, we got inside the US Embassy in Beijing where we heard a lecture from Landon Loomis- Commercial Officer at the US Embassy in Beijing.
 |
| US Embassy in Beijing |
Loomis' presentation was very interesting. He and his wife are both diplomats currently in Beijing. He will be moved to Mexico City in the next year. He gave us a nice overview of Chinese business and relations with the US.
US trade with China- $503 billion in 2011
US exports to China up 13%- 2010- 2011
China is US second largest trading partner after NAFTA
Chinese FDI into US- over $4 billion in 2010
77% of US debt owned by Americans
Only 1% of total US debt owned by Chinese
170 cities in China with populations over 1 million
Middle class now 23%- in 2020 will be 48%
Chinese reaction to 2008 Financial crisis- Total stimulus- $586 billion- $1.45 trillion from banks
Goals of stimulus- to stimulate economy, fund infrastructure
Problems with the stimulus- non-productive assets, debt horizon not matching, $250 billion unrecoverable
US- China Relations:
Xi Jinping- Vice Chariman- will be next president
Hu Jintao- current president
China's Challenges:
healthcare- no quality
inequality
affordable housing
food prices
demography
inflation
pollution
corruption
Per capita disposable inccome:
urban- $3,454 / year
rural- $1,105 / year
70% of electicity produced by coal
50% of water resources are severely polluted
12th Five Year plan:
Focus on Quality Growth
moving up value chain
Addressing Inequality
Enabling Consumption
Economic Restructuring:
7 strategic Industries- Technology 3%- 8%
Services- 47% of GDP
urbanization 51.5%
Innovation:
R&D funding to 12.5%
2.2% of GDP
Livelihood:
Healthcare
Housing
Population Control
Obstacles to US companies in China:
rising labor costs
protectionism
unclear regulatory environment
Website- www.buyusa.gov/china
Back on bus to Quanjude Rd Roast Duck Restaurant
 |
| Lex and Icy at Quanjude Road Duck Restaurant |
The Quanjude Road Duck Restaurant is Beijing's most famous roast duck restaurant. We had several courses including scorpion appetizers. Scorpions were very good- deep fried. Duck was delicious. Skin was crispy and duck was not greasy. Duck is carved into 12 * 9 pieces, since both are lucky numbers. Typically served with hoisin sauce on a pancake with scallions. Best part of dinner was that students from BISU joined us and we got to see Icy again. She is so sweet. Lex has attempted to email her several times since we got back. She has not responded, so we are afraid our emails are being censored. We really wanted to keep in touch with her.
End of our last day in Beijing.
March 11, 2012- Beijing- Forbidden City and Great Wall
March 11, 2012
Up early for breakfast at the hotel.
Tour of Tian'anmen Square- Very crowded. Cold crisp day with clear blue skies
Took the luge down the mountain. Great fun!
On the way back to Beijing, stopped by a Jade factory. I bought a beautiful set: bangle, ring, earrings and necklace. My favorite purchases from the trip.
Up early for breakfast at the hotel.
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| Entrance to Forbidden City |
Forbidden City was Amazing. Went on, and on, and on, through 9 gates (9 is a lucky number to Chinese), until we finally got back to emperor's living quarters.
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First Gate in Forbidden City |
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| Entrance to Emperor's Private Quarter |
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Emperor's throne room
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| Emperor's private bedroom |
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| Concubine's quarters |
Left the Forbidden City which was breathtaking. Amazing to think that the last emporer- Puyi, was only 2 when he became emporer. Can imagine him riding his bike around the palace oblivious that the almost 200 year reign of the Qing dynasty is about to come to an end.
Back in the bus on route to the Great Wall. Stopped close to the top of the mountain for lunch in a country style place. This area appears to be a vacation destination for Chinese with many small hotels and restaurants. Mountains are beautiful.
Lunch is very good, served family style. Mushrooms, chicken, rice, etc. All very good.
Bus stops at top of hill. Got on chair-lift to the top. Most of modern Great Wall was constructed during the Ming Dynasty in 1300's to protect against Mongol invaders. Total wall is 5,500 miles in length. Many sections are in disrepair. The section we saw close to Beijing had been renovated.
On the way back to Beijing, stopped by a Jade factory. I bought a beautiful set: bangle, ring, earrings and necklace. My favorite purchases from the trip.
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| Jade factory |
Got back to Beijing and stopped by the Silk Market. Large mall with many vendors. I was too tired to deal with the negotiations and pushy vendors. Lex and I waited in the pizza place for the bus back to the hotel. Beat. Long day and adventurous day. I needed a good night's sleep.
Sunday, March 25, 2012
March 10, 2012- First day in Beijjing
March 10, 2012- Up at 6 am, local time. Showered and went down for breakfast at the Hotel restaurant. HUGE breakfast salad bar with American eggs and bacon, as well as fruit, salad and a few Chinese entries. Tried the "marinated"eggs and liked them. Back to the room to get our things and then on the bus for our first day in Beijjing where plan was to go to Beijing International Studies University.
In the bus on the way to BISU- Wendy gave us some information on modern China as we were taking a look out the window at our new surroundings. Noticed lots of new high-rise buildings a lots of traffic. Many nice new sudans on the road including Mercedes, BMW, toyotas and hondas. In China, common greeting in addition to Ni Hao( hello) is Chi la ma? (have you eaten?) This goes back to the days of starvation and shows concern for your neighbor by asking, "Have you eaten?" Only 15% of China's land is ariable, so food production has always been a problem. 1.3 billion people live in China. 90% of population is Mandarin Chinese with 10% other minority groups.
"Have you gotten your personal problem solved?" Means- "Have you gotten married?"
4 things a Chinese man needs to get married:
1. - good income
2. - 2 languages spoken
3. - 3 bedrooms
4. - 4 wheels (car)
Chinese can not own the land, but can buy right to use land for up to 70 years. Cost of real estate in Beijing has gone up 3-4X in past 5 years. Chinese are investing in real estate and flipping. Definite sign of bubble. Cost of apartment is 40,000 yuan / meter or about $4 million yuan for a house. This is about $666,666. Must put 25% down. Housing is becoming unaffordable to all but the wealthiest Chinese.
20,000 licenseplates released each year. Rotate which day of the week you are not allowed to drive to cut down on traffic.
1949 PRC founded-
1949- 1997- 1 million cars on the roads
1997-2003- 2 million cars on the roads
2003-2007- 3 million cars on the roads
2007- 2009- 4 million cars on the roads
2009 - 2010- 5 million cars on the roads
1 child policy: During the Chinese revloution, Chairman Mao encouraged as many children as possible. 1976- 1 child policy introduced. Chinese prefer to have son. Now young children are all only children and are spoiled. Overall population 106 men / 100 women. Young population 117 men / 100 women.
This will become a problem.
Schooling in China:
Elementary School- 6 years
Intermediary School- 3 years
Students can go to assigned government school or pay 20,000 yuan - volunteer pay for another school
Entrance exam for middle school
High School- common high shool for university- 1/2 go to technical school- no univeristy
only 1/2 middle school grads will go to high school
Entrance to university now 69%- was 5% that passed 20 years ago
high school- 8,000 yuan per year
vocational school- about 8,000 yuan / year
college- 20,000 yuan per year
evening school for adults
Arrived at Beijing International Studies Univeristy- Lecture with Professor Wang Lei
Warm welcome for the Americans
Stopped by the Pearl Market that evening. Upstairs was mostly jewlery and pearls. Required much negotiating. We liked the basement area and purchased several Buddhas and jade Buddha necklaces.
Back to Sunworld hotel. Wandered around downtown Beijing to food market. Lots of interesting foods there like eels and donkey somethings ??? Ate dinner in Chinese restaurant next to hotel.
In the bus on the way to BISU- Wendy gave us some information on modern China as we were taking a look out the window at our new surroundings. Noticed lots of new high-rise buildings a lots of traffic. Many nice new sudans on the road including Mercedes, BMW, toyotas and hondas. In China, common greeting in addition to Ni Hao( hello) is Chi la ma? (have you eaten?) This goes back to the days of starvation and shows concern for your neighbor by asking, "Have you eaten?" Only 15% of China's land is ariable, so food production has always been a problem. 1.3 billion people live in China. 90% of population is Mandarin Chinese with 10% other minority groups.
"Have you gotten your personal problem solved?" Means- "Have you gotten married?"
4 things a Chinese man needs to get married:
1. - good income
2. - 2 languages spoken
3. - 3 bedrooms
4. - 4 wheels (car)
Chinese can not own the land, but can buy right to use land for up to 70 years. Cost of real estate in Beijing has gone up 3-4X in past 5 years. Chinese are investing in real estate and flipping. Definite sign of bubble. Cost of apartment is 40,000 yuan / meter or about $4 million yuan for a house. This is about $666,666. Must put 25% down. Housing is becoming unaffordable to all but the wealthiest Chinese.
20,000 licenseplates released each year. Rotate which day of the week you are not allowed to drive to cut down on traffic.
1949 PRC founded-
1949- 1997- 1 million cars on the roads
1997-2003- 2 million cars on the roads
2003-2007- 3 million cars on the roads
2007- 2009- 4 million cars on the roads
2009 - 2010- 5 million cars on the roads
1 child policy: During the Chinese revloution, Chairman Mao encouraged as many children as possible. 1976- 1 child policy introduced. Chinese prefer to have son. Now young children are all only children and are spoiled. Overall population 106 men / 100 women. Young population 117 men / 100 women.
This will become a problem.
Schooling in China:
Elementary School- 6 years
Intermediary School- 3 years
Students can go to assigned government school or pay 20,000 yuan - volunteer pay for another school
Entrance exam for middle school
High School- common high shool for university- 1/2 go to technical school- no univeristy
only 1/2 middle school grads will go to high school
Entrance to university now 69%- was 5% that passed 20 years ago
high school- 8,000 yuan per year
vocational school- about 8,000 yuan / year
college- 20,000 yuan per year
evening school for adults
Arrived at Beijing International Studies Univeristy- Lecture with Professor Wang Lei
Warm welcome for the Americans
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| BISU- Lecture with Wang Lei |
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| Lex with Lily and Icy- Students at BISU
Lecture at BISU by Wang Lei covered aspects of Chinese history which dates back 5,000 years
Spring Festival the most important in China- January or February, 15 day celebration, most Chinese return home during this time, fireworks
Beijing opera- Singing, dancing, Sheng- main character, masks
Wushu- exercise and philisophy
Architecture- balance and symmetry, 2 wings to every building
Great Wall- built to protect from invaders- Mongolians, 1,500 miles
Cuisine- 8 regional cuisines
Religions- Buddhism, 166 AD- Indian- dominant
Taoism- cooperation and natural forces
Confuscism
Daoism- to be moral- those who know are silent
dao- first cause of universe, goal to be one with nature
We Wei- let nature take its course, art of doing nothing, go with the flow
Man is unhappy because he lives with man-made laws
To escape: reject formal knowledge and learning, rely on senses and instincts, discover rhythm of the universe, yin-yang balance
Confucianism- philosophy of Confucious, Stable society
1. Li- Rite, rituals, rules, be polite
2. Ren- benevolence, humility
3. Shu- empathy, do unto others what you want others to do to you
4. Yi- righteousness
Principal relationships in China:
1. Ruler/ Subject
2. Father/ Son
3. husband/ Wife
Legalism- Use of Law, Law reflected way of Emperor
Chinese care more about social relationships than legal relationships
Patience and persisitance, friendly, sense of humor and honesty
Giving face important- social image
Chinese do not like confrontation
Modesty and humility still main values
hierarchy- respect for elders important
Clocks- associated with death
Knives- associated with severing relationship
4- number of death
Green hat- symbol of adultery
Give preactical gifts
Dining Etiquette- wiat to be seated, host starts with a drink
Issues: Gap between rich and poor
Chinese Communist Party- corruption a big problem
Pension- State employees receive pension, but farmers do not
Housing reform- limited to 2 apartments - permits required
housing seen as a good investment
If buy a house, can use for 70 years, what happens after that? no one knows, governement owns land
Lunch with students at BISU:
Very nice Chinese meal. Students were very anxious to talk with us. I sat with Lily. She is from Wu Han Pe in Sezhuan province. mountains there and small towns. she is in Beijing to study English as BISU.
Games after lunch with students. Ice breaker kinds of games. Chinese students were very good singing and playing games in english. very impressive.
We were late finishing lunch, so did a quick trip in the bus to Olympic Village. Got out of the bus and it was VERY cold and Windy. Walked to the Bird's Nest and saw Water Cube Swim Center.
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| Water Cube Swim Center at Olympic Village |
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| Lex in front of Bird's Nest at Olympic Village |
Stopped by the Pearl Market that evening. Upstairs was mostly jewlery and pearls. Required much negotiating. We liked the basement area and purchased several Buddhas and jade Buddha necklaces.
Back to Sunworld hotel. Wandered around downtown Beijing to food market. Lots of interesting foods there like eels and donkey somethings ??? Ate dinner in Chinese restaurant next to hotel.
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| Evening group exercises in Beijing |
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| Fish market |
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