hina nsight C Fostering business and culturalI harmony between China and the U.S. VOL. 14 NO. 4 April 2015 RDFZ performed at Minghua Chinese School’s Spring Festival event By Cheng RuZhao

Community, p. 4

Culture, p.5

(Photos by Jijun He and China Tribune) The famous Chinese Renmin of RDFZ and Miss Ya Na, art director of Minghua Choir performed four songs. Chinese Inventions, p. 12 University Affiliate High School troupe RDFZ. RDFZ troupe performed a string quartet (RDFZ), led by Mr. Tan DaSheng, deputy They had a wonderful visit in and two solo dances. In the evening, they director of the Foreign Cultural Relations Minnesota from February 13 - 17. The joined Minghua Choir to celebrate the Bureau, Chinese Ministry of Culture, troupe consisted of 71 performers/artists. Spring Festival with a traditional Chinese gave two spectacular local performances On Feb. 14, they had a joint Chinese New Year meal of dumplings and a for Spring Festival events in February. New Year celebration with more than variety of other delicious foods prepared Also accompanying the troupe were Miss 500 students and teachers from Minghua by Minghua Choir. Zhang Yi, director of Foreign Affairs of Chinese School, Saint Paul, and gave The Feb. 15 performance was the RDFZ; Miss Liu Xiaohui, vice principal a wonderful hour-long performance. continues on page 8

Arts & Culture, p. 15

State Exports Valued at $5.5 Billion in the Fourth Quarter

• Minnesota exports (including agricultural, mining and Figure 1. Fourth Quarter Export Growth in 35 States manufactured products) were valued at $5.5 billion, and were about the same as one year ago (up 0.1 percent between the fourth quarters of 2013 and 2014). U.S. Events, p. 16 growth was 1 percent. • Minnesota exported more than 930 different detailed In This Issue products (4-digit HS codes) to 192 different countries in the fourth quarter of 2014. Arts & Culture 6, 15 • For 2014, Minnesota exports grew 2.9 percent to Business 2, 10-11 $21.4 billion, while U.S. exports grew 2.8 percent. Community 4 • Referring to only manufactured goods, Minnesota Culture 5 exports – valued at $5 billion in the fourth quarter of Education 4,14 2014 – matched U.S. growth in manufactured exports (of 0.8 percent) during this period. Events 1, 8-9, 16 History 7 Exports Increase to North America, Africa, the Middle East; But Drop to Canada, China Chinese Inventions 12 News 3, 13 • Mexico fueled export growth to North America (up 3 percent to $2.0 billion). Sales to Mexico surged $186 million, the most among all countries. Leading growth segments were miscellaneous grains, vehicles and electrical machinery.

continues on page 13 PAGE 2 / April 2015 business chinainsight.info China to issue guidelines for ChinaInsight Publisher: Web finance companies soon Gregory J. Hugh Edited by Ma Xiaochun, China Daily, March 5 [email protected] Manager of Operations/ Circulation: Richard He [email protected] Staff Writers: Greg Hugh [email protected] CPPCC member Pan Gongsheng, also deputy governor of the central bank, answers reporters’ queries on Wednesday Elaine Dunn after a panel discussion of the ongoing annual session of [email protected] the top advisory body, which is being held in Beijing. [WEI XIAOHAO/FOR CHINA DAILY] Contributors: China will soon come out with guidelines University of Finance and Economics, said Internet financial forum in November Madeline Christensen for the healthy development of the Internet in his proposals to China’s top advisory that the central bank would adopt an open [email protected] finance sector, a top banking official said body this year. and tolerant stance while designing the on Wednesday. The ongoing financial reform must move regulatory framework. The PBOC will Raymond Lum Pan Gongsheng, deputy governor of the toward strengthening market regulations leave certain space for the development of [email protected] central bank and a member of the National to unlock the full potential, said He, who Internet finance while drawing the bottom Committee of the Chinese People’s Political is also a member of the CPPCC National line clearly, he said. Chang Wang Consultative Conference, said that the Committee. Zhang Daosheng, a spokesman for [email protected] People’s Bank of China, the nation’s central “The government should make a Zhejiang Ant Small & Micro Financial bank, will play a lead role in formulating the scientific risk assessment system for Internet Services Group Co, an affiliate of Alibaba, Patrick Welsh guidelines and also establish a regulatory finance based on quantitative indicators, told China Daily on Wednesday that any [email protected] framework for the Internet finance sector. rather than calling off financial products serious player in the Internet finance sector The upcoming regulations have sparked and services simply because they may cause would love to see detailed regulations for Production Editor: interest among members of the CPPCC relatively high financial risks,” he said. the sector. Teresa Khamlusa National Committee this year as Internet For innovative financial products “Regulations and policies are used to [email protected] financial products and services have grown with large volume, he suggested that the guide the development and direction of the rapidly in China. government should consider the relevant entire sector. We would be happy to know Graphics Design Intern: China has already become the world’s financial institution’s ability to control the dos and don’ts,” Zhang said. Dejian Tao largest peer-to-peer lending market. By the and handle the risk, instead of tightening Peng Lei, chief executive officer of Ant [email protected] end of September 2014, about 1,400 peer-to- regulations due to possible negative effects Financial, said in February that her company peer lending platforms had raised funding associated with such products. is “embracing supervision”. Peng, whose Webmaster: of 110 billion yuan ($18 billion). The total The central committee of the China Ant Financial runs Alipay, China’s largest Will Ahern assets of Yu’ebao, an online monetary fund Zhi Gong Party, one of the country’s eight online payment tool, said the size of the [email protected] operated by the Chinese e-commerce giant non-Communist parties, made a proposal company requires it to keep improving Alibaba Group Holding Ltd, amounted to to the CPPCC National Committee, urging its risk control ability and communication Honorary: 578.9 billion yuan at the end of last year. the authorities to put the various types of skills with supervisors to secure more room Jennifer Nordin, Editor Emertus With the fast development of Internet Internet financial products and services in innovation. [email protected] finance, the existing regulation system, under the financial regulatory framework She said Ant Financial will open its which relies mainly on administrative of the central bank, the nation’s banking, system to the central bank and other regulation, can no longer cater to the securities and insurance regulators as well authorities so that they will know its data growing demands of the financial sector, as local financial bureaus. in real time.♦ ChinaInsight He Qiang, a professor with the Central Pan from the PBOC said during an About C h i na Insight is a monthly English language newspaper fostering business and cultural harmony between China and Correction: the U.S.

In last month’s “Doing Business in China, pt. 3” the following text was inadvertently dropped when the article transitioned from C h i n a Insight is a Member of The p. 1 to p. 7: Minnesota Chapter of the Asian American that China is a Confucian society under Communist rule, or China is a Communist regime with Confucian values. Journalists Association (AAJA). The complete sentences should read as follows: For instance, it is commonly accepted that China is a Confucian society under Communist rule, or China is a Communist regime Submissions & with Confucian values. But Chinese - like Professor Wu Si, a leading historian and intellectual - would tell you that China is actually Correspondence China nsight a society governed by “hidden rules.” I welcomes guest articles and letters to the editor. Correspondence should be addressed to:

Editor, ChinaInsight Insight 750 Mainstreet, #230 ChinaInsight Hopkins, MN 55343 Guaranteed Tel: 612-723-4872 SUBSCRIPTION ORDER FORM [email protected] 10 issues - $24 for a domestic subscription and $40 for Letters to the editor become the property international. YES you could run to the store and pick up a copy, of ChinaInsight and may be edited for Please make check payable to ChinaInsight, length and published. Articles will not be but did you know you can published without the express consent of 750 Mainstreet, #230 Hopkins, MN 55343 the author. have ChinaInsight delivered Name______directly to your mailbox? NOTICE TO READERS: The views Address______A subscription costs a mere expressed in articles are the author’s and not neccesarily those of ChinaInsight. City/State/Zip______$24 and brings a full year (10 Authors may have a business relationship Phone______issues) of new understanding with the companies or businesses they discuss. Email______about today’s China, from Company______language to business Title______opportunities. Copyright 2015 ChinaInsight, Inc. All Rights Reserved. chinainsight.info news April 2015 / PAGE 3 Top 10 Chinese China billionaires in 2015 Briefs China Daily, March 9

Chinese women dominate Following China’s rapid economic 6. Ma Huateng fourteen of the 50 “most powerful development, more and more Chinese Ranking in the full businesswomen in Asia” are from entrepreneurs appeared on the 2015 Forbes list: 56 Hong Kong and mainland China, World Billionaires List - 11 made the top Net worth: US$16.1 according to Forbes, now partly 100 this year. Among them, five were billion owned by a Hong Kong investor. This from Hong Kong and six came from the Age: 43 year’s list included two officers from mainland. Below are the top 10. Source of income: Alibaba (Maggie Wu Wei, CFO; and Internet media Lucy Peng, co-founder) – a first for Place: Mainland any company. Others include Hong Kong’s Pansy Ho, co-chairman of # MGM-China and daughter of Macau 3# 1 # casino mogul Stanley Ho; Sun Yafang, 8 6 Huawei Technologies chairwoman and Zhang Xin, co-founder of Soho By the numbers # # China. A total of 16 countries were 4 # represented. 10 # 7 2 No iPhones for monks a Chinese 10. Lui Che Woo Shanghai: Mecca for New Year man made his New Year donation Ranking in the full list: 82 visitors After the deadly stampede of an iPhone 6 at a Foshan temple Net worth: US$13.5 billion 5. Li Hejun incident at the Bund on Dec. 31, 2014, (Guangdong Province). The monks Age: 85 Ranking in the full list: 38 where 36 were killed and 47 injured, tracked down the donor, returned the Source of income: casinos Net worth: US$21.1 billion Shanghai’s tourism authorities limited phone to him saying they can only Place: Hong Kong Age: 47 the number of people who were accept cash, and had no use for the Source of income: solar power equipment allowed to visit the Spring Festival Place: Mainland phone. The man promptly slipped holiday’s 72 attractions for public a few 100-yuan bills in instead. security reasons. Venues such as Hmm … a few hundred yuan or a 4. Jack Ma 5,000+RMB phone?? Math not the Ranking in the full The Oriental Pearl TV Tower, the monks’ strong suit? list: 33 Shanghai Wildlife Park and the Net worth: US$22.7 Shanghai Science and Technology Upfront knockoffs Apple’s iWatch billion Museum all capped their visitor ticket will be released April 24. However, Age: 50 sales based on input from planning, visually identical knockoffs are Source of income: architecture and tourism and security already available at a fraction of 9. Cheng Yu-tung e-commerce experts. the actual price at an electronics Ranking in the full list: 71 Place: Mainland shopping mall in Shenzhen, just north Net worth: US$14.4 billion 3.8 million people visited Shanghai of Hong Kong. Shopkeepers say Age: 89 3. Wang Jianlin over the weeklong Spring Festival people are snatching up 700-1,000 Source of income: diversified Ranking in the pieces at a time, at an average price Place: Hong Kong full list: 29 holiday. of 179 yuan (approx. US$30). The Net worth: unbranded timepieces are advertised US$24.2 billion 6 percent increase in the number of as “Knockoff Apple watches” and Age: 60 visitors to the top 120 Shanghai tourist cannot download apps nor support Source of income: sites from the year before, which mobile payments. (The cheapest real estate translates to 3.5 million people. genuine item will cost about US$479 Place: Mainland in China.) 971,000 visitors arrived Shanghai by train from Feb. 18-23. iWatch for the dead Chinese 2. Lee Shau Kee already can buy replica iWatches Ranking in the full in the “afterlife” gift stores now! list: 27 874,000 visitors arrived Shanghai Besides THE watch, two of the latest 8. Robin Li Net worth: US$24.8 through its two airports Feb. 18-23. iPhone models also are available Ranking in the full list: 62 billion as gifts to be burned for deceased Net worth: US$15.3 billion Age: 87 15,000 visitors allowed to visit the relatives in time for this year’s tomb Age: 46 Source of income: famous YuYuan Garden daily, with a sweeping festival. A replica Samsung Source of income: Internet search real estate limit of 3,000 at any one time. Cost phone also is available in case the Place: Mainland Place: HongKong of admission is 40 yuan. deceased prefer an Android handset! 35,000 visitors allowed to visit the Pig roast starts Year of Goat a TV tower daily, with a limit of 15,000 hog farm was accidentally set on fire in Anhui Province when a neighbor at any one time. Cost of admission is set off firecrackers on the eve of 100 yuan. The TV tower overlooks the Lunar New Year. A total of 312 the Huangpu River and is one of pigs were roasted to death and the the city’s top three national tourist entire pig farm was damaged, only a attractions. structural frame remained. The pig farmer said of his US$8,125 loss, 4.9 percent increase in tourist revenue “I can hardly lead a good life in the 7. Thomas & Raymond Kwok 1. Li Ka-shing during the week, as reported by the Ranking in the full list: 58 Ranking in the full list: 17 coming new year.” Nope, definitely Shanghai Tourism Administration, to not a good way to start the new year! Combined net worth: US$15.9 billion Net worth: US$33.3 billion Age: 63 & 62 Age: 86 the sum of 3.75 billion yuan. Source of income: real estate Source of income: diversified Place: Hong Kong Place: Hong Kong One yuan is approximately US$0.16. PAGE 4 / April 2015 education/community chinainsight.info A Talent Creative dream team for CHF’s Show “Dream of the Red Chamber”

By Madeline Christensen, contributor commission

A few weeks into my first year teaching By Elaine Dunn at Qiaotou Elementary School, it was casually mentioned that my two Chinese co- fellows and I would be in charge of putting poetry of China and Buddhism) will be together a “performance” for an inter-school creating course material (in-class and talent show of sorts. The talent show had online) to acquaint students and the public three nights - one for teacher performances, with the novel. Online course will be free one for student plays, and one for student and open to the public. The online course dance performances. Since we were in the will be in 15-minute self-contained, self- teacher division, the performance would not paced modules dealing with topics such count toward our school’s ranking in the as the love triangle, the role of the family, talent competition. how Buddhism frames the story, etc. No In the flurry of my first semester teaching, homework! I gave little thought to the performance. • K-12 outreach: The Confucius Institute Nobody seemed too concerned about it, so will be developing “digestible” material it seemed like the event might be relatively for K-12 teachers in Minnesota and San informal. Eventually, my co-fellows, Francisco. Xianming and Xiaoxia, asked me what I • 2015-2016, Chinese American Association wanted to do for the talent show. I had no of Minnesota: CAAM’s Dance Theater idea what types of acts were appropriate, will be incorporating “Dream” theme but since the show was in late November, programming into their 2015-2016 season I suggested we could sing some holiday activities. carols. About a week before the show, our • Also in the works: final stage of contracting vice principal told us we should choose a for a costume designer. song in Chinese. A foreigner singing in Chinese would be much more interesting, Funding and next steps they said. In 2014, Ben and Helen Liu, friends There was a good buzz inside the in bringing new works to the opera stage and Xianming picked out a “Red song”- a of Ming, joined Ming in becoming major Gramercy Park party room in Bloomington music director of the New York City Opera good old tune from the Revolution - and I supporters of the “Dream” project. The on March 8 where the Chinese Heritage for 14 seasons, signed on as conductor for began listening to the recording. It was a Lius issued a challenge grant of $25,000 that Foundation was going to present an update the commission. Stan Lai, one of the most pretty song. We would each sing one verse they matched dollar for dollar at the October on its “Dream of the Red Chamber” acclaimed playwright/directors in Asia, on our own. I asked Xianming and Xiaoxia 2014 CHF Open House. CHF members and commission. A dream and vision by Ming professor and founding dean of the College what the words meant. The song was called friends rose to the challenge! Bergad also Tchou, the founder of CHF, was inching ever of Theatre at Taipei National University of “Nan Ni Wan,” which is the name of a place. thanked Bruce and Ruth Dayton, who were closer to reality. the Arts, will be stage manager. The Nan Ni Wan of before was barren, the not present, for their support and whose Ming’s dream began four years ago when • Feb. 17, 2015, NY Festival of Song at mountains “yellow.” No one came to visit love of Chinese culture is well known to the National Opera Center: Sheng, host Nan Ni Wan. But after Regiment 359 came, she thought an opera, sung in English, based all in the community. She also thanked the pastures of Nan Ni Wan were filled on one of the four Chinese classic novels, and curator for the concert, introduced a the new donors whose generosity will with sheep and goats, and people wanted “Dream of the Red Chamber” by Cao duet between Jia Baoyu and Lin Daiyu certainly help move this commission closer 曹雪芹 to live there. So, the song concludes with Xueqin ( ), would be the ideal vehicle from Act 1, Scene 2, where Baoyu and to reality. However, CHF’s fundraising goal “let us walk forward and cultivate the fresh “to preserve and promote Chinese heritage, Daiyu discovered they are “like two rivers, of $300,000 has not yet been met. Those flowers.” culture, and history … and to encourage bound for one ocean; like two stars, in one who wish to make a donation can contact Xiaoxia worked hard getting the students innovation in the arts.” Today, fours year constellation.” CHF at [email protected] ready for the drama portion of the show, later, Pearl Bergad, executive director of • Feb. 20, 2015, Stanford University’s As Bergad said, the “dream team is in where they would be putting on a skit about CHF, updated the assembled guests on the Pan-Asian Music Festival: the duet was place, excitement is building!” A fall 2016 recycling. Only a handful of students out progress of the “Dream” project. performed again, accompanied by the premiere is scheduled in San Francisco. of the 700 at our school were in either the Shenzhen Symphony Orchestra. David CHF is working on a “Grand Chinese play or the dance, but as the talent show Major milestones to date Gockley, who attended this concert, was celebration banquet” for those who will be approached, the students were constantly • Linda Hoeschler and John Nuechterlein, convinced he was embarking on an exciting attending the world premiere in the city most being pulled out of class to rehearse. American Composers Forum, brought Kevin project based on the excerpt of lyrics and famous for Chinese foods in the U.S. Two days before the Wednesday Smith, the current president and CEO of the music he heard. performance, I had only sort of memorized Minnesota Orchestra (and recently retired the song. We had a practice performance for president and CEO of Minnesota Opera), the students after their morning exercises. on board as consultant. Smith, spread the It was then that we were told we could word to the opera world at large that a “tiny not use our recording of the song, because organization in Minnesota with this big idea we needed to find an instrumental-only of commissioning a Chinese opera.” version without someone already on vocal. • The San Francisco Opera had just Also, they said, we needed to add in more finished the successful world premiere of choreography. Since the teachers’ portion “The Bonesetter’s Daughter” (novel by Amy had been added as part of the competition, Tan) and its general director, David Gockley, the pressure was on to actually do a good was ready for another Chinese opera. job. The teacher in charge of the dance • Next on board: Bright Sheng as the performance, which the students seemed to composer and David Henry Hwang as the be practicing around the clock, was clearly librettist. Under Gockley’s guidance, the U of M course developers (l to r):Rouzer, Allen and Waltner. anxious about the quality of our singing two successfully reduced a 1300-page novel performance. to a manageable, coherent and dramatic continues on page 14 script suitable for opera format. • Spring 2016, adult community outreach: Watch for updates on the “Dream” • Since August 2013, the two have been University of Minnesota professors project in these pages or visit www. quite busy completing the libretto and (Joseph Allen, professor of Chinese chinesefounation.org. starting on the score. Tentative score Literature and Cultural Studies and chair For those who would like a brief intro Read the paper completion date is September 2015. At that of the Department of Asian Languages to the novel and its cast of characters, point, Sheng will visit Minnesota and take and Literatures; Ann Waltner, professor of please visit China Insight online, www. online at CHF members through all the opera scenes. History and former director of Institute for chinainsight.info, select the May 2014 issue www.chinainsight.info • Feb. 13, 2015: SFO announced new Advanced Study; and Paul Rouzer, professor from “Past Issues” under the “Home” tab. additions to the artistic team - George in the Department of Asian Languages The article is on p. 4. ♦ Manahan, best known for his vast experience and Literature specializing in poetics and chinainsight.info culture April 2015 / PAGE 5 Doing business with China and the Chinese people: a conversation on cultural challenges, part 4 By Chang Wang and Joe Pearman, contributors

Editor’s note: This is the continuation of the six-part conversation series on doing business with mainland China (excluding Hong Kong, Macau and Taiwan) and the Han Chinese living within mainland China. It describes some of the ins and outs of interacting with Chinese individuals or firms in the contexts of cross-border communications and negotiations. Through this conversation, the authors hope to help the business community become aware of the miscommunication that stems from the “parallel universes” the American and the Chinese inhabit, to expose the hidden rationales underscoring the official narratives of Chinese history, and to reveal cultural and linguistic misunderstandings that frequently occur during the process of finding “common ground.” Last month’s “Hidden Rules?” illustrated the workings of a “shadow code.” This month’s conversation on guanxi will clarify the meaning of the term; and how foreigners often miss the subtleties involved. Watch for the continuation of the series in the next two issues where the authors will discuss ti-yong, and additional resources that will help you gain a greater understanding of China and the Chinese way.

“Guanxi, 關係” by the same standard as children. Wang: Moving on to another facet Pearman: It strikes me that there of “hidden rules,” you may have heard could be another facet to the persecution of the case of GlaxoSmithKline. GSK, of GSK. I remember reading that back as it’s commonly called, is a British when Mexico was run as a one-party pharmaceutical company. Its China state, drug trafficking was much less branch is now facing a serious problem. violent than it is today. Drug traffickers In order to boost revenues, some of their would simply pay their bribes to an senior managers in China engaged in official and move their products to the some questionable practices, including U.S.A.; no muss, no fuss. But every so bribing government officials who often, the government would arrest a regulate the healthcare industry, paying major drug trafficker. It wasn’t because kickbacks to doctors for prescribing they forgot to pay or because they’d GSK drugs, and arranging vacations for gotten rebellious. It was just to show doctors and officials. that they could. In other words, it was Pearman: I take it there’s more to a reminder that the government, not the this story than a corrupt branch of big traffickers, or in this case, GSK, held the pharma getting their just desserts? upper hand in the relationship. Wang: Well, GSK’s China team Wang: Precisely: It was just to show An illustration produced by Reuters “Connected China” shows extensive networks of Chinese leaders made an interesting argument. that they could. And the most amusing According to them, they were simply thing is every time a scandal came out, finding a job is never that difficult. apparent to outsiders: playing the game according to Chinese any time a high official got busted, you Pearman: I’m reminded of the 1) Guanxi cannot be transferred. rules. Every pharmaceutical company will hear the propaganda machine praise “legacy” programs at the Ivy League 2) Guanxi must be understood within in China bribes doctors and officials. the authority and assure the people that schools. If you had an ancestor who the context of a strictly hierarchal and It’s not talked about, but an absolute this just shows how determined the went to Harvard, Princeton or Yale, you somewhat opaque system, and, prerequisite for doing business: yet government is on anti-corruption. don’t have to be nearly as smart as the 3) Guanxi is a double-edged sword. another “hidden rule.” In fact, GSK Pearman: This is kind of insulting. rest of the applicants to get in. When I say guanxi cannot be was less open about it than most Chinese They underestimate the intelligence of I understand those sort of connections transferred, I mean it in the following firms, who openly hand over cash to the people. play a major role in Chinese society, too. way. Suppose you make a contact in doctors. Wang: You may also have heard that Would you agree? the Chinese business community, and And I’d argue that GSK is less the JP Morgan Chase case is in some hot Wang: I agree wholeheartedly. this contact introduces you to a Chinese morally reprehensible than a lot of water right now. Apparently, they hired The system you just alluded to is official. Now, in the Western sense of the Chinese companies for another several Chinese nationals as full-time known as “guanxi,” and it’s one of the networking, you might assume that you reason: their drugs actually work. employees and consultants. Turned out most misunderstood aspects of doing can approach this official for help in the Many Chinese companies behave that many of them are members of the business with China. There was a future. This is not true in China. Any like the villain in “The Third Man,” “red nobility,” or the princelings, and book titled “Guanxi” about Microsoft’s contact with this official needs to be selling defective drugs that don’t help their positions were merely sinecures. operations in China, and a handful of handled through your original contact or actively harm the people to which JP Morgan is now under investigation business books have been written that in the business community. Many they’re administered. by the U.S. government for violating the mention guanxi, but very few of them businesspeople assume they can build Pearman: This begs the question: Foreign Corrupt Practices Act (FCPA). ever understand the true meaning of guanxi with people they’ve just met. why did the government single out GSK Pearman: For those readers who the term. The reality is that the links of guanxi to punish? If they were just playing the may not be familiar with the term, the At its basis, guanxi is about are only established over years, if ever, game, and behaving better than most, “red nobility” consists of the families of connections. The problem of Western and by trying to force them, you will why did they deserve punishment? the oldest Communist Party leaders: the thinking on this issue is that when alienate everyone. Wang: Closely entwined with descendants of those who marched with they hear “connections,” they think I’d like to preface my second point “hidden rules” is something called Mao. Since the arrival of capitalism to “networking,” and since they know by stating that there is not a single the “double standard.” Officials feel China, I know that the red nobility has everything about networking, they unified guanxi “system” in China. It’s perfectly entitled to both engage in leveraged its status to become extremely assume they understand guanxi. In not possible to simply start at the bottom corruption and prosecute people for rich. The “princelings” are a specific fact, if you replace “gaunxi” with and work your way to the top. There are being corrupt. In a way, this ties back subset of individuals em - the lineal “networking,” you would’ve lost thousands, if not millions, of different to the presumed benevolence of “parent descendants of the original leaders. “guanxi.” circles of connections. Some of them official.” A “parent official” may choose Many of them are seen as spoiled brats, There are three key features of overlap, but many do not. to let a citizen do something in return for enjoying the vast benefits their position guanxi that I’d like to address. But Pearman: So, for instance, could a bribe, or they make take the bribe and brings without providing anything in first, a definition. “Guanxi” describes you say that a migrant worker has no not help the citizen or even arrest them. return. the basic dynamic in personalized idea how the factory bosses make the But imply that they did anything wrong Wang: And so they get no-show networks of influence, and is a central connections that enable them to get and you’d get a blank stare. After all, positions so that JP Morgan can operate idea in Chinese society. There are three permits and supplies, and the factory they’re a parent. Parents can’t be judged in China. If you have the right ancestors, key features about guanxi, which are not continues on page 7 PAGE 6 / April 2015 arts & culture chinainsight.info Chop Suey, USA: The Story of Chinese Food in America By Yong Chen Columbia University Press, 2014, 292 pages, ISBN 978-0-231-16892-2

Reviewed by Raymond Lum, contributor

okay, even if they are invariably overcooked “Chinese” food (and it can be either good or Chinese-American food. Immigration and covered in a suspicious brown sauce: or weird, or both). The era of the elaborate and Americans’ education and travel beef or chicken slices, bean sprouts, Chinese-American restaurant is long gone abroad have expanded the experience with thinly sliced celery, perhaps tinned water but remains largely undocumented, although Asian food, which now goes far beyond chestnuts. LaChoy even puts it all into a reports cited here and in John Jung’s book chop suey, as testified by the number of can, relieving everyone of any preparation on family restaurants (see below), which Thai, Vietnamese, Japanese and Korean beyond heating. hint at past glories of red lanterns and gold- restaurants in cities and suburbs. And inscribed banners. who eats shark’s fin these days? It is What is the appeal of American expensive, banned in places, and inhumane A Chinese-American missionary nun Chinese food, whether “real” or not? The to sharks in its production. The author in New York laughed when she told ingredients are all American, although states that “The triumph of chop suey over me that after she served a Caucasian perhaps produced by Chinese farmers in shark’s fin…was based on the prevailing priest a Chinese dish he demanded to Florida or California. The flavorings are puritan/utilitarian approach of mainstream know the name of it so he could order not particularly exotic or foreign (garlic, [American] society.” It is not clear what that it in restaurants. And she told him: soy sauce, oil, ginger, some bottled sauces means. He also believes that the “rise of the Cantonese name is lop sop, which imported from Hong Kong). The initial and Chinese food performed a social service…” he said he would use to order his next still appeal of the food is its price: Chinese- in providing inexpensive meals. The author meal in Chinatown. The nun laughed American food is cheap, particularly is on firmer ground with his historic insights because we both knew that lop sop when compared with non-Chinese food. than with his socio-cultural analysis of a means “garbage.” Rarely will one find on a menu a dish simple dish that is largely rejected today in priced at $16.95, and since Chinese food is favor of more creative Asian fare, even in The story of how chop suey developed generally shared among diners, costs also take-out joints. So, then, what’s wrong with in America and how it came to represent are shared. Another appeal is availability. chop suey? Nothing, and it does not matter Chop suey, chop suey! Chinese food to Americans is the primary Where are there not Chinese restaurants or a whit if it is or is not “real” Chinese food Living here is very much like focus of this wide-ranging but somewhat take-out places? They shove their menus if you like it. disorganized book in which the author under doors and into mail boxes almost Chen’s text, which is complemented chop suey. inserts himself more than necessary into everywhere, with offers of lunch specials with extensive notes and bibliography, is Hula hoops and nuclear war, the story. Chen details how he discovered em- fried rice; combination plates in heavy, peppered with too many quotations, making Doctor Salk and Zsa Zsa Chinese American food after coming from generic gravies; along with vagaries such it annoying to try to read it straight through. China as a graduate student. His history as pu-pu platter, Crab Rangoon, egg rolls, The real contribution of this book is its take Gabor, of the food is most revealing when he chicken fingers em- all accompanied by on the origins and popularity of “Chinese” Bobby Darin, Sandra Dee, deals with the development of Chinese fortune cookies and tiny plastic packs of food and its spread across the country, restaurants in small towns and minority hot mustard, sweet-and-sour sauce, and along with the information it provides on and Dewey, neighborhoods in large cities and in suburbs, a black liquid labeled “soy sauce” that is both Chinese restaurants and the view of Chop suey, Chop suey! and how “Jewish Christmas” emerged as mostly caramel-colored water and salt. But those, both positive and negative, gleaned American Jews took to Chinese restaurants if you like it, it’s good em- and cheap, fast from newspaper accounts by non-Chinese So went the lyrics in the movie as everyone else - except the restaurant and everywhere. patrons. “Flower Drum Song,” slightly changed owners - was home for Christmas, and On the origin of Chinese-American If one were to reduce Chinese food to from those in the Broadway production. because the restaurants were open and eating food, the author makes a startling claim its lowest common denominator, that would How chop suey came to define Chinese there made the Jewish customers feel more that is not entirely convincing: “…Chinese be rice, but Yong Chen almost entirely Americans and Chinese cuisine for many American. The author does not mention restaurants played an important role in glosses over rice. There is not a Chinese decades is due to its ubiquity. Even it, but kosher Chinese restaurants are not the development of the American empire meal without rice (or wheat noodles in north today, numerous Chinese restaurants and unknown in large U.S. cities. and its way of life…” Although he goes China, where rice does not grow, but is now take-out joints feature chop suey, and in Yong Chen does good service in noting to some lengths to explain what he meant available). The rice most widely consumed the popular imagination, chop suey is the American fast food business development by “American empire,” still it is a reach. in the U.S. comes from Texas or Thailand, quintessential Chinese food. I even saw in China (KFC, for example) and even In this volume, Chen also addresses the not China. And how it is prepared (Rinsed it on a menu in Barcelona earlier this year. Chinese-American food franchises in rise of Chinese restaurants and the role of or not? Steamed or boiled? Cooked in a But is it authentic? Is it Chinese? Theories Beijing. Yet, there are some problems with Chinatowns in providing Chinese food. The pot on the stove or in an electric Japanese about the origin of that most American of this book, beginning with the title: Chop inclusion of several recipes is more odd rice cooker? Salt added or not?) is central Chinese dishes probably are as numerous Suey, USA: The Story of Chinese Food in than useful. I take issue with the author’s to successful Chinese cooking. as those about fortune cookies. But how it America. There is a lot more to the history decipherment of the Chinese character For another entertaining but shorter originated is much less important than how of Chinese food in America than chop for “home,” written as a house (or roof) take on chop suey, see Charles W. Hayford’s it has survived into the 21st century. Bobby suey and savvy marketing, much of it still above and a pig below [家] as signifying article “Who’s Afraid of Chop Suey?” Darin and Sandra Dee have not. untold: who were the restaurant workers? that “…home is where we expect to find at http://www.asian-studies.org/eaa/ If a dish is not found in China, Where did the ingredients come from? nourishing, comforting, and familiar food.” hayford_16-3.pdf, and his other writings at least in its overseas iteration, such as What was the relationship between the The character is in fact derived from an on Chinese food. John Jung’s “Sweet and General Gao’s (or General Tso’s) Chicken, restaurant owners and other local Chinese? illustration of the roof of a house, one raised Sour: Life in Chinese Family Restaurants” supposedly invented in New York by an Where did the furniture come from for the on stilts, with pigs (and probably chickens provides a great deal of well-documented immigrant from Taiwan, is it not Chinese? early elaborate interiors, some of which as well) below, which is how long-ago rural information on the origin and operations of The real question should be, “Is it good?” included dance bands? What became of houses were built in China. They can still be Chinese restaurants. ♦ Restaurateurs are not dopes: they will cook it all when restaurants closed? How has encountered in many places in Asia. what the customers want to eat and pay the introduction of non-Cantonese cuisine This tome is not really the story of for, and all the varieties and nomenclature influenced what is served in the restaurants? Chinese food in America, nor is it only about won’t make much difference, even as times How were the names of restaurants devised? chop suey. It is a chronicle of the popularity and sensibilities change. My grandfather’s Who determined what was to be on the of Chinese food in America and, as such, restaurant was named “Oriental Café” and menus? And what about alcohol served puts into a single volume numerous facts About Ray Lum his father’s place was “Oriental Inn.” Who in some restaurants’ Lipo Lounge, named that would be difficult to gather otherwise. Raymond Lum is an independent uses “Oriental” now to describe Chinese? after the famous Tang-dynasty drinker/ The author places Chinese food in two researcher and writer and is the Orientals are rugs. And my father’s eatery poet Li Po? Yong Chen does, to his credit, separate spheres: cheap and quick, like Reviews and Resources Editor of was “Chop Suey House.” What could be address so-called fusion cooking, noting chop suey; and what he labels haute cuisine TransAsiaPhotography Review more in your face than that? I have eaten Boston’s Ming Tsai. Fusion is not only a exemplified by shark’s fin. But it really is (tapreview.org). my share of chop suey. The ingredients are step beyond chop suey, but is a leap beyond the food in between that represents Chinese chinainsight.info history April 2015 / PAGE 7 Doing The Rise of Cixi business By Pat Welsh, contributor continued from page 5 were to be entrusted ruled on behalf of the young Tongzhi bosses in turn have no idea where or to his regent, Su Shun, Emperor. Despite there being no precedent and seven regents of allowing the empresses to play such a how the connections are made that bring the emperor’s retinue. political role “behind the screen,” the two multinational businesses into China? Su Shun also shifted empresses amassed considerable power. Wang: Yes, precisely. Guanxi tends the authority of the They accomplished this through a series of to be divided by hierarchy. And even if newly reestablished memorials to the throne on Nov. 8, 1861, you’ve gained access to a certain group, Grand Council (軍 advocating that the two empresses serve you need to understand the hierarchy 機處) to himself as regents to the young emperor. Prince within that group. and the seven other Gong, a supporter of the two empresses, For instance, I once witnessed the regents. Nonetheless, was named as chief political advisor. catastrophic effects of failing to understand in issuing decrees, Edicts on the following day removed six hierarchy as it relates to guanxi. A man the eight regents more high officials thereby allowing the I knew in New York hosted a banquet were to obtain the two empresses free to form new internal for a Chinese trade delegation. He had consent of the two and foreign policies. One of their policies business he wanted to do in China, and he dowager empresses. was that of strengthening the power of was trying hard to build guanxi. He took In Rehe the two provincial governors. Another was that each delegate’s business card em- with two empresses became of decentralizing most of the military, hands, like all the business etiquette books very resentful of leaving behind local provincial troops say em- and proffered his own, again in the Su Shun and his that would eventually either be used by approved two-handed fashion. overbearing attitude revolutionaries or become the ancestors of Having read the cards, he zeroed in toward them and minor warlords in the various provinces. on the delegate who was (apparently) the Prince Gong. About These policies became a major factor in highest-ranking. As it happened, this man a month after the downfall of the Qing Dynasty in 1911. spoke English, and the host plied him with Xianfeng’s death, a In January 1875, about two years after conversation and attention. And by the censor in Shandong the young emperor Tongzhi had reached time we reached the dessert course, he was Province had the legal age at which he could govern the pushing hard to get the approval he needed submitted a memorial empire by himself, he died (at 19 years for his projects in China. That was another recommending that of age) without producing an heir to the thing he’d read, you see em- all business in the two empresses throne although there had been rumors that China is done at the dinner table. In the early fall of 1860, Xianfeng (咸 listen to reports on state affairs from his wife, the Empress Jia Shun (嘉顺皇后) But the official the man was speaking 豐) Emperor fled to the imperial hunting behind screens (垂簾聽政). (A memorial was pregnant. She died, however, a few to never gave him a straight answer. And lodge (避暑山庄) at Rehe (熱河, presently is a formal submission of a letter to the months later. Their deaths were convenient the dinner ended without the man making located in Chengde , 承德, in Hebei emperor that will recommend an action be for the two empresses as the young Tongzhi any progress. Still, he was confident that, Province north of the Great Wall) to avoid taken, criticize someone for something done Emperor was proving to be an obstinate, all things considered, he’d built some good capture by the English and French allied already or give advice about a matter.) After quarrelsome and dissolute young man, and guanxi. armies. Among those with him were the empresses received this memorial, they his wife stood to outrank them. The 3-year- In fact, that was the end of his deal. Su Shun (肅順), Zai Yuan (載垣) and put this and other recommendations into old nephew of Cixi, Zaitian (載湉) - the Why he was finished has to do with the Duan Hua (端華). Although these men practice despite Su Shun’s protestations second son of Prince Chun (醇親王) - was opacity of the Chinese system. The host were not of the emperor’s family, they that there had been no such precedent in chosen to succeed to the throne by Cixi of the dinner had read all of the business had become his most trusted advisors. this dynasty for the empresses to attend over the objection of the Eastern Empress. cards and assumed that actual power was In 1858 the emperor’s younger brother, state affairs. A serious dispute arose He was to become the Guangxu Emperor vested in the man who was ostensibly the Prince Gong (恭親王) was ordered to between the empresses and Su Shun. (光緒帝). Prince Chun had been a close highest ranking – partly because the English stay behind in Beijing and negotiate the In October 1861 Prince Gong was sent to political ally of Cixi and the second son of translation of their titles. The man with subsequent peace treaties of Tianjin with Rehe to pay respect to his deceased emperor the former Dao Guang Emperor (道光帝), real power had an unassuming title – again, England and France. Upon the conclusion brother. While there he was summoned to a who had died in 1850. Memorials were translation – and didn’t speak a word of of the new treaties, Prince Gong requested meeting with the two empresses during which accepted that urged the resumption of the English; he’d been left alone to stew all the emperor to return to Beijing. Taking the Xinyou Coup (辛酉政變) was plotted to two empresses as regents to the new young through the dinner while the host lavished the advice of his advisor, Su Shun, the execute Su Shun and his followers. The emperor with Prince Gong as a chief advisor. attention on his de facto subordinate. emperor remained in Rehe. The result was two empresses, accompanied by Zai Yuan, On April 8, 1881, the Eastern Empress, The powerful was eager to connect with a temporary split in the imperial court with Duan Hua and the young emperor returned Ci’an (慈安皇太后), died suddenly of a Americans but he felt vulnerable and two centers of competing power, the hard- to Beijing by a different route and awaited stroke leaving Cixi as the sole regent of embarrassed after the dinner. liners headed by Su Shun and Zai Yuan and the return of Su Shun shortly thereafter. the young emperor Zaitian. Through him, My third point about guanxi is that the more moderate Prince Gong, who had That month, Su Shun along with the dead behind the screen Cixi effectively ruled possessing it incurs risk. The CPC is come to the conclusion that the western emperor’s remains returned to Beijing. China until her death in November 1908. In constantly racked with power struggles, big powers were too strong for China. Prior At the same time, four Chinese ministers my next offerings, I will discuss important or small. Whenever an official goes down, to the final ratification of the Treaties of in Beijing submitted another joint memorial events occurring during her regency. ♦ foreigners with whom he’d built guanxi Tianjin, Prince Gong had sent assurances again requesting that the two empresses tend to be hit with a wave of corruption to Harry Parkes, the British Consul at listen to state affairs from behind screens. charges. Being tied to someone has risks Guangzhou, that the policies of the “war They were further supported by the imperial as well as rewards. party” headed by Su Shun and Zai Yuan had commissioner and general Shengbao (勝 Pearman: So any time you build guanxi been abandoned and that future treatment 保), who also advocated the appointment of About Pat Welsh with someone, you’re backing a horse, and of foreigners would be courteous and just. the closest prince to assist in state affairs. In 2009 while teaching English at the trick is to pick winners - or at least, When the Xianfeng Emperor died in Shengbao’s support put the critical support Sichuan University, Welsh was asked to bigger winners than your losers. August 1861 in Rehe, he left behind a wife, of the military behind the two dowager give a speech where he was introduced Wang: Exactly. ♦ the Eastern Empress Ci’an (慈安皇太后), empresses. Then by a secret decree, Prince to the audience as a “pioneer of Chinese but no son. Xianfeng’s concubine, Yehonala Gong was made prince counselor. Upon American relations” as a result of his co- also known as the Western Empress (西太 entering Beijing via the MiYun Entrance, operative work in international banking 后), Concubine Yi (懿貴妃) or Dowager Su Shun was arrested by Shengbao and during the Deng Xiaoping era. For more About the authors Cixi (慈禧), did have one son, Zai Chun selected officers, unaware of the plot than 65 years, Welsh has been learning Chang Wang, a native of China, is (載淳). They were all with the deceased against him. Zai Yuan and Duan Hua were Chinese and has used this knowledge the chief research and academic officer at emperor in Rehe. On Zai Chun’s 5th also arrested and were forced to commit both professionally and personally to Thomson Reuters, the world’s leading source birthday, he was made the heir apparent suicide. Su Shun was beheaded on Nov. enhance his understanding of Chinese of intelligent information for businesses according to Xianfeng’s last will and 8, 1861, in a public vegetable market. and Asian affairs. He currently resides and professionals. Joe Pearman, a native testament. Zai Chun would later become After Su Shun’s death, political authority in Georgia and occasionally lectures on Minnesotan, is an undergraduate student better known as the Tongzhi Emperor (同 was not returned to the Grand Council ( China to classes in World History and majoring in business at the University of 治帝 軍機處 Minnesota. ). Also included in the emperor’s will ). Instead, it was given to the World Literature. were provisions stating that affairs of state two empresses and to Prince Gong, who PAGE 8 / April 2015 events chinainsight.info Kimberly Lane Elementary celebrates diversity with International Night By Chen Zhou, parent organizer

One by one, visitors headed into music and dance from the Twin Cities dressing up in costumes representing Kimberly Lane Elementary, Plymouth, Chinese Dance Center and many others. ancient dynasties to showcase China’s and out of the cold on Feb. 20. After “There has been such great energy long and progressive history warming up with foods representing around Kimberly Lane Elementary With their support and the help from 17 different cultures from around the first International Night … Hopefully other Chinese parents at Kimberly Lane, world, guests filed into the school’s this is the start of a wonderful, annual China was well represented at the first gymnasium. From there, students, tradition at our school,” said Kimberly International Night. families and friends were treated to a Lane Principal Kari Wehrmann. I hope events like this will offer globetrotting gala as the school kicked I got involved with this event at my Kimberly Lane families new to the off its first-ever International Night wife’s encouragement. I know how country a better sense of community celebration. important it is for a young person to and belonging. ♦ The festival’s goal was for guests have a sense of belonging. to learn more about the homelands When I first arrived in Minnesota of fellow Kimberly Lane families. from Shanghai at the age of 13, I Students, some dressed in their was a young, awkward foreigner who country’s traditional attire, stamped did not speak the language and did their “passports” as they traveled to not know anyone. In addition, I was booths representing countries such as going through the awkward stage of Bangladesh to Italy to China. Guests puberty! School was a challenge. It also enjoyed performances featuring was hard to find my place in the world.

China booth However, through the English as a Second Language program, I made a few friends and began to feel better about my new surroundings. My thanks to: • the two local Chinese restaurants, Grand Szechuan and Ocean Buffet, for providing Chinese food • local artists Huang Ningsheng, Liuguangqing, Wang Wenjuan and Wang Yuan for performing traditional Chinese music to kick off the event • Twin Cities Chinese Dance Center for its two dances Student from Yucai Chinese School in Lauren Moy performing on guzheng, a Chinese string instrument • Yucai Chinese School students for traditional costume RDFZ performed at Minghua continued from page 1

the most important “mission” for in Minnesota, and some said the RDFZ of the Chinese Consulate in Chicago, After the wonderful time in RDFZ in Minnesota. The RDFZ troupe performances are second to some U.S. Senators Amy Klobuchar and Al Minnesota, the troupe returned to China troupe performed at the famous famous professional troupes. Even Franken sent special congratulations and on Feb. 17, in time to enjoy the Spring O’Shaughnessy Theater in the front of though the outdoor temperature was welcome letters. The representatives Festival with their families in China. an audience of more than 1600. The minus 20, the audience inside definitely from Minnesota State government, City Thanks to all of them for bringing audience was not disappointed by the felt early spring in Minnesota. They of Saint Paul, City of Minneapolis, high warmth to cold Minnesota in the depth beautiful and amazing performances. responded to the performance with loud, school principals and 85 blood cancer of winter. We look forward to another Some said it was the most exciting warm and exciting cheers. patients and their relatives from local visit and performance from them in the dance performances in a few decades Mr. Wang YongDai, Consul General communities attended the performance. near future. ♦ chinainsight.info events April 2015 / PAGE 9 “Jewish Refugees in Shanghai (1933-1941)” exhibit opens, a journey of hope for more than 18,000 Jews to China By Greg Hugh

The grand opening of the “Jewish who escaped Europe and made Shanghai Shanghai in 1931. Much of this is illustrated Refugees in Shanghai (1933-1941)” exhibit their temporary home. In Minnesota, this in a very nice brochure that exhibit visitors took place on March 19 at the Sabes Jewish exhibit has been enhanced with additional will receive. Community Center (SJCC), 4330 Cedar stories of four Shanghailanders with deep Schools are encouraged to organize Lake Road, St. Louis Park, Minn. The Minnesota connections. Those fortunate Exhibit is a collaborative effort involving enough to attend the grand opening were the Confucius Institute at the University able to hear their stories as part of the of Minnesota (CIUMN), the Jewish evening’s panel discussion, which will be Community Relations Council of Minnesota noted further in this article. and the Dakotas (JCRC) and the SJCC. The Following the reception hour, Joshua exhibit will continue until May 7, 2015. Wert, CEO, SJCC, delivered welcoming remarks. Joan Brzezinski, executive was moderated by Hunegs. Panel members director of CIUMN and Steve Hunegs, were Shanghailanders Manny Gabler, Ellen executive director of JCRC, then introduced Wiss, Kurt Hort and Helen Bix (via Skype the speakers : Zhao Weiping, Consul from Florida). It was a very informal General of the PRC in Chicago; Tony affair and the participants freely shared Leung, magistrate judge, U.S. District their recollections of their experiences Court, District of Minnesota; and Senior during their time in Shanghai. As it turns Vice President and Provost Karen Hanson, out, Gabler and Wiss learned they actually University of Minnesota. lived several doors away from each other Brzezinski and Hunegs both in Shanghai and were on the same ship that acknowledged the contributions of the eventually brought them to America and field trips to see the exhibit. Please contact The evening’s program began with a many people that help support the exhibit, only met for the first time as they prepared Robyn Awend at [email protected] or reception during which attendees were able including Ming Tchou, founder of the for this panel discussion! Hort and Bix also 952-381-2416, to schedule. to view this historic traveling exhibit created Chinese Heritage Foundation, and Gary graciously shared their recollections of their Also, as part of this exhibit outreach, by the Shanghai Jewish Refugees Museum. Gandrud, the Norwegian Honorary Consul time spent in Shanghai and didn’t want to there will be an academic lecture on The exhibit provides a snapshot about General in Minneapolis. Both were present dwell on the negative aspects. They shared Monday, April 13, 2015, by Professor Xu the unique story of Jewish refugees in at the grand opening event. the good memories they had. It was a very Xin, Diane and Guliford Glazer chair, Shanghai from 1933-1941 when Shanghai During this brief transition period uplifting. The panel members answered professor of Jewish and Israel Studies and opened its doors to more than 18,000 Jewish before the start of the panel discussion, the questions from the audience and made Dean of the Institute of Jewish/Israel Studies refugees fleeing persecution and war in gathering was able to view the exhibit and themselves available afterwards, including at Nanjing University. The topic of his Europe, transforming the city into an “open enjoy a variety of tasty Asian hors d’oeuvres Bix, who was still on Skype. lecture will be “Jews in Modern China.” city for Jews” at a time when much of the and beverages prepared and presented by the The exhibit does include special banners For information about the lecture, go to rest of the world was closed to them. The Tea House in St. Paul. that portray the Minnesota connection along www.confucious.umn.edu. For additional 40-panel exhibit highlights historical content The final segment of the opening event with some parallel stories by Doug Lew, a information, go to www.minndakjcrc.org/. ♦ and biographies of many “Shanghailanders” program was the panel discussion, which current resident of Edina who was born in Chinese propaganda posters, politics as art By Elaine Dunn

“You say you want a revolution …We From the 1950s – 1970s, radio and all of us as to see how China conducted all want to change the world…” John television were not widely available to itself 40, 50 years ago.” Prices of the Lennon/Paul McCartney, 1968 the majority of Chinese, especially the exhibit posters, which were all for Those of us growing up in the height ones in the rural area, which made up 80 sale, ranged from around US$388 to of Beatlemania most certainly recognize percent of the population. Posters were about US$4,500 each, with most in the the lyrics to Lennon and McCartney’s cheap to print and distribute, so they US$650-1,300 range. “Revolution.” And most of us probably became the main communication tool Poster designs and function also remember the ongoing turmoil for the Communist Party to spread its messages to the masses. Approximately Within the Chinese political caused by the Cultural Revolution system, the posters’ artistic expression within China in those days - a revolution a billion of these posters were produced over the span of three decades. was ultimately not for aesthetics, promoted to the collective mind of its but to impart “correct” behavior and citizens with its ubiquitous propaganda Picture This Gallery has been dealing in vintage posters for well over a thought among the masses. With the posters. decade. They acquire posters from establishment of the Communist Party This past winter, Hong Kong’s private collections all over the world. in 1949, the propaganda posters became Picture This Gallery exhibited what And, as a member of the International the de facto communication tool to every might be the world’s largest collection Vintage Poster Dealers Association, level of society, especially the multitude of original vintage Chinese propaganda other dealers and collectors are aware of illiterates. In an impoverished posters in Hong Kong. The posters in of their interest and their specialization environment where every resource the “Revolutionary Fervour” exhibit in Asian-related posters. A recent available went to the government’s gave visitors a fascinating insight into acquisition is “The Commune’s Fish effort to repel the West and Western the work of the mainland’s propaganda Pond,” which is a great example of the thought, where basic life necessities machine from the early 1950s through wonderful artistic achievement of the were scarce, a colorful poster to decorate a 1958 poster shows a Chinese on a the handover of two former colonies Chinese Propaganda poster artists. one’s walls was much welcomed, no white horse racing past an overweight - Hong Kong (British) and Macau “I think this exhibition is an important matter the content. soldier in a pith helmet, supposedly a (Portugal) - in the 1990s. Themes varied part of history and the recent history of Propaganda posters usually show British soldier, on an ox. It was a subtle from urging the masses to observe better China,” said Christopher Bailey, gallery triumphant vignettes with political nod to Mao’s Great Leap Forward (the hygiene to the North Korean War to the owner. “It’s a very graphic way for us slogans below. Never mind that many Communist model of industrialization) condemnation of western imperialism to see what was going on in China at the events that were depicted actually had in the late 1960s. time. I think it’s certainly insightful for disastrous results. For example, continues on page 15 PAGE 10 / April 2015 business chinainsight.info

1163832_10716

10x7 bw Financial options for every phase of your life

Whether you want to save for the future, secure a personal loan, utilize exclusive online and telephone banking services, or enjoy the convenience of our ATMs and many locations, we are here for you. Call, click, or stop by and talk with a banker.

wellsfargo.com

All loans are subject to application, credit qualification, and income verification. © 2013 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. (1163832_10716)

1163832_10716 10x7 bw.indd 1 12/5/13 12:17 PM Reducing Your China Sourcing Costs By Chris Devonshire-Ellis, China Briefing, Feb. 17

China is going through changes. Slowing age of a Chinese worker (now 37) to your potential Double Tax Treaty complete assembly lines – to Vietnam. This growth, increasing costs, more restrictions increasingly expensive levels. While this benefits? migration of factories has been a response on international online access are all having is slowly creating new consumer class in Double Tax Treaty benefits may apply to rising China production costs. Yet at the an effect, even for small businesses that the country, it is also now permitting other to your business if you set up an operation, same time, import duties into China have essentially just trade with China. In this young Asian nations to compete in terms even a trading company such as a FICE, largely been eradicated, at least from the article we examine some tips for shaving of wages. or WFOE or other legal entity and are nearby ASEAN trade bloc, and China’s costs from your China sourcing model and Of these countries, India has the largest using it to source product and pay in use of Double Tax Treaties offers a more perhaps enable you to save some money worker population with wages about a RMB. Although the name “Double Tax” tangible yet technical solution to stripping over the year as the business environment third of that in China. Although India can is off-putting, these bilateral agreements out tax costs. Sourcing product from becomes tougher. be ‘in your face’ as a country to visit, it actually contain mechanisms that can help China should never have been as easy or 1) Shop around the China trade fairs is also becoming increasingly organized. you reduce Corporate Income Tax (CIT) in inexpensive as it is now. Following these Many foreign buyers have been dealing The Indian Trade Promotion Organisation China (25 percent, plus another 10 percent trends will help you retain a competitive with the same supplier for many years. website (www.indiatradefair.com) list all dividend tax). edge. ♦ Many relationships have been built from trade fairs for the year. They do this by including provisions for attendance for example at the hugely Vietnam is emerging as a serious light Withholding Tax – sometimes also known influential Guangzhou Trade Fair, which has manufacturing alternative to China, and may as “Technical Service Fees,” which means been displaying goods to overseas buyers be less hectic and perhaps more familiar to that service fees charged to your China Chris Devonshire-Ellis is the since 1957. The next fair – the 117th – is buyers used to China. Its trade fairs can subsidiary such as Royalties, Trademarks, Founding Partner of Dezan Shira & in April. The Fair began life as the Canton be seen at http://10times.com/vietnam/ Patents or “Technical assistance” by your Associates – a specialist foreign direct Trade Fair (as Guangzhou was then known) tradeshows, while the excellent Asian parent company are subject to a lower tax investment practice providing corporate and began its evolution as a manufacturing Sourcing portal (http://www.globalsources. rate than would be the CIT rate. Double establishment, business advisory, tax hub for China, financed mainly by money com/ST/Asia-Sourcing.html) is always Tax Treaties would commonly allow for a advisory and compliance, accounting, from Hong Kong entrepreneurs. useful. 10 percent Withholding Tax fee to be paid payroll, due diligence and financial Yet today, most of the Fair is 3) You can negotiate, and – a rather better deal than leaving the profit review services to multinationals dominated by middlemen, who add a knowledge is key in China for the China Profits Tax man to investing in emerging Asia. Since its large percentage to the real buying price, The costs of purchasing in China should get his hands on. Does your country have establishment in 1992, the firm has often now manufactured by factories in have reduced over the past five years, the a Double Tax Agreement with China? Visit grown into one of Asia’s most versatile China’s industrial heartland. Many Chinese reason being that the China-ASEAN Free the Dezan Shira & Associates Resource full-service consultancies with opera- production facilities are now based in cities Trade Agreement came into effect in 2009 Library (www.dezshira.com) to find out. tional offices across China, Hong Kong, such as Changsha, Chengdu, and Wuhan, and eliminated import tariffs on 90 percent What has for nearly three decades been India, Singapore and Vietnam, in addi- where wages are far cheaper but production of products coming from ASEAN into an exclusively China play is now showing tion to alliances in Indonesia, Malaysia, and quality levels comparable. In China China. Did any tariff reductions get passed signs of wear and tear. New suppliers, in Philippines and Thailand, as well as today, it pays to shop around. The China on to you? As many China manufactured both less expensive cities in China, and liaison offices in Italy, Germany and the Exhibition website (www.chinaexhibition. products now contain components sourced throughout Asia, are springing up. Many United States. For further information, com) lists all trade fairs upcoming across more cheaply from other parts of Asia, feel China factories have simply upped sticks please email [email protected] or the year. free to play hardball if those production from Guangdong and Shanghai – previously visit www.dezshira.com. 2) Do you have to source in China? cost savings are not being passed on. And the main hubs for China manufacturing – Alternatives to China are now springing if your China purchase prices have risen, and left for China’s second and third tier Chris can be followed on Twitter at @ up across Asia. China’s population find a new supplier. cities, where labor costs are lower. CDE_Asia. demographics are pushing the average 4) If in China, did you examine Others have relocated – sometimes with chinainsight.info business April 2015 / PAGE 11 China in New Zealand: Chinese investments stoking fear By Elaine Dunn

If not U.S. Government Treasuries, Simultaneously, the Chinese are no what? That’s the question New Zealand longer content just to import New Zealand’s dairy companies aren’t asking. They don’t dairy products. Chinese are interested to need to ask because they know. It’s them! securing its supplies. In 2010, Natural A Nov. 25, 2014, Global Times headline Dairy (NZ) Holdings, a Hong Kong- read, “Chinese dairy giant opens first major based investment group, made plans to overseas factory in New Zealand.” buy New Zealand’s Crafar dairy empire, “New Zealand farmers cautious on creating much public alarm. According to Chinese firm’s spreading dairy plans,” Natural Dairy, its interest “was met with a said another in the New Zealand Herald in xenophobic response from some farming October 2013. Yet another in April 2013 interests.” announced, “Chinese infant formula maker New Zealand’s Green Party claimed the wins approval for New Zealand dairy plant.” country’s dairy industry risked “autumning New Zealand is a two-island nation with into the hands of overseas investors.” a sheep-to-human ratio of 20:1. Of its 4.5 The Productive Economy Council million population, approximately 4 percent spokesperson said it was “nonsense” to think are Chinese. The first ethnic Chinese it did not matter with whom ownership of were immigrants from southern China’s New Zealand’s productive assets resided. Guangdong Province who arrived during the This led market commentator Arthur gold rush days of the 1850s. And according Lim to question the basis of the “fear.” to a report from the Education New Zealand He mentioned that New Zealanders have infant formula plant in South Canterbury Ideological and political differences agency, Chinese students currently make up bought farms in the United States, Uruguay in a deal that will see it take over Oceania are very real. However, what better way to the largest number of foreign students and and China. “What are we saying here?” he Dairy Group. expose China to democracy than working account for 29.1 percent of international asked. “It’s OK for New Zealand companies Fast forward to 2015. While Chinese with the Chinese? Increased awareness and student spending. and New Zealanders to buy overseas but not trade and investment in New Zealand had understanding of their circumstances as a What makes New Zealand so attractive good for them to buy into New Zealand?” been credited with sheltering the country developing country can only improve the to the Chinese? New Zealand has an The Federated Farmers president stated from the worst of the global recession, the dialogue about democracy. “outsized” dairy sector that exports 95 “fear that foreign ownership meant benefits worry that New Zealand may be losing its To demand stricter oversight of or alter percent of its production. Its output far were lost overseas was misplaced. Putting economic sovereignty, especially where the the regulatory framework around Chinese exceeds the demand of its 4.5 population. up barriers through compliance regimes or dairy industry – the jewel in the crown – is investments would put New Zealand in a It is the world’s largest dairy trader. China, restrictions and things like that is not going concerned, is prevalent. bad light in the international investment on the other hand, cannot produce enough to make us a wealthy country … land could And the dairy industry is not the community. Making it harder for Chinese to to meet its own domestic demand. On top not be taken away,” he said. “The person only concern either. Accompanying its invest in New Zealand will be taking a step of that, the 2008 melamine-laced infant that owns the land works the land, abides investment in dairy plants, Chinese are in the wrong direction. Can New Zealand formula scandal has Chinese citizens by New Zealand laws, pays taxes in New gobbling up farmland and real estate along afford being labeled racist? preferring milk products from overseas. Zealand, employs New Zealand people ... the way. Chinese from Hong Kong and Currently, all foreign investments The Chinese authorities see New Zealand that’s surely a good thing.” the mainland also are accused of creating a already need approval from the Overseas as a relatively safe haven. Investing there is At an August 2012 Conference on property bubble in Auckland, New Zealand’s Investment Office, which require the a good way to diversify their international Contemporary China organized jointly largest city, raising the warning that New persons/companies behind the investment be bond holdings beyond U.S. Government by the Victoria University and Peking Zealanders may become “tenants in their of good character. All property transactions Treasuries. Besides dairy plants, China University, New Zealand’s Finance Minister own land.” In actuality, only an estimated must show that the foreign investment can also has invested in New Zealand forestry, Bill English welcomed more foreign 8 to 9 percent of residential property sales add value to New Zealand’s economy over manufacturing, agriculture and in New investment, especially by China, stating that in Auckland in 2013 were to foreigners; of and above one by a New Zealand investor. Zealand government bonds, contributing New Zealand’s standard of living would be that, Australians accounted for 22 percent A senior New Zealand corporate attorney to the record-low borrowing rates New lower without it. FDI had benefits for New and 20 percent went to the Chinese, with the well versed in Chinese commercial issues, Zealand currently enjoys. Zealand in three broad areas: British claiming 13 percent. However, only said, “Given the integrity of New Zealand’s The yeas and the nays • As a source of capital to supplement New the Chinese were singled out in the hue and regulatory framework and the opportunity Foreign direct investments (FDI) had Zealand’s domestic savings cry, “Chinese money should not [be allowed China represents to New Zealand I do not been integral to the New Zealand economy • As a driver of growth in wages, employment to] negatively affect local residents’ socio- think New Zealanders have anything to em- to achieve economies of scale, and and output economic welfare.” fear from further investment by Chinese for access to ideas and consumer markets. • And for the transmission of technology, On the other hand, there may be some enterprises in New Zealand.” Early on, FDI was mostly from Britain. skills and know-how to New Zealand and semblance of truth to the following blame: Besides bringing needed capital to New There also had been significant investments for improving NZ’s connections to valuable Chinese are disrupting the New Zealanders’ Zealand businesses, Chinese investments from Europe, the U.S., Japan and its closest international markets. placid way of life. In idyllic Pokeno, the ultimately connect the two countries’ neighbor, Australia. However, the growth of “There will be many more people in the heart of New Zealand’s dairy country with a economies, providing an entry for New Chinese investments in New Zealand these Asia-Pacific region with growing incomes population of 400, stands a gigantic Chinese- Zealand into an expanding Chinese market days are fueling fears of a foreign take-over. who want more of New Zealand’s products. owned infant formula factory. Production and China’s production network, which Are these fears misplaced or legitimate? Our trading partners, led by China, have began last month. Until Yashili’s US$165 will increase production capacity in New In 2009, Chinese appliance manufacturer opened the door for us,” said English. million plant was built, the biggest structure Zealand - a win-win.”and above one by a Haier bought a 20 percent stake in Fisher & By spring 2013, the Chinese dairy in town was a 14-room motel! Reaction New Zealand investor. Paykel Appliances and Chinese agricultural footprint in New Zealand had grown from the plant’s reluctant neighbors range A senior New Zealand corporate attorney company Agria bought 13 percent of PGG significantly: from “Yuck!” to “Moving to a quieter spot well versed in Chinese commercial issues, Wrightson, a leading agricultural sector Shanghai Bright Dairy owns 51 nearby” to “They’ve got wealth that we said, “Given the integrity of New Zealand’s supplier. Both of these acquisitions were per cent of Synlait Milk and markets the don’t understand in New Zealand.” regulatory framework and the opportunity considered to have “staved off fears of Canterbury Pure brand of infant formula in Does the fear mongers’ China represents to New Zealand I do not collapse for the local companies.” China and elsewhere in Asia. rationale hold water? think New Zealanders have anything to By 2011, Chinese investments in New Shanghai Pengxin paid US$157.5 The growth in Chinese ownership in fear from further investment by Chinese Zealand totaled US$1.35 billion, but still million for the 16 Crafar farms and had been industry and property is casting suspicion enterprises in New Zealand.” nowhere close to being the top foreign in talks with Miraka on an off to produce among the Kiwis. Some may be racially Besides bringing needed capital to New investor. (That honor goes to Australia. UHT for the Chinese market. based, but some may be legitimate. Among Zealand businesses, Chinese investments China was no. 11.) On the flip side, by 2013, Yashili will build a US$165 million the latter are: ultimately connect the two countries’ China passed Australia as New Zealand’s milk processing plant at Pokeno. This will • China’s human rights record economies, providing an entry for New largest trading partner. New Zealand be the first full-fledged standalone Chinese • Its well-known levels of corruption, and Zealand into an expanding Chinese market exports to China tripled since the two dairy investment in NZ. (More on this later.) • It’s a Communist state and China’s production network, which countries signed the Free Trade Agreement Yili, China’s largest dairy company, • Chinese-owned entities competing with will increase production capacity in New in 2008. will spend US$160.5 million building an wholly New Zealand-owned companies Zealand - a win-win.” ♦ PAGE 12 / April 2015 Chinese inventions chinainsight.info Chinese invention: seismoscope for earthquake detection

By Elaine Dunn

This month marks the 109th anniversary Zhang Heng There is speculation that Zhang got of one of the worst natural disasters in the Zhang Heng (A.D. 78-139), a brilliant his ball-drop idea from interacting with U.S. – the giant San Francisco earthquake. scientist, was also an astronomer, the travelers along the Silk Road because At 5:12 a.m., April 18, 1906, residents mathematician, engineer, and painter who records show that Aristotle, who suffered of the northern California city by the bay lived during the Eastern Han Dynasty (東 from ulcer, had to have an early contraption were awakened by a violent shake from 漢朝, A.D. 25-220) in what is the current- like a hot water bottle laid on top of his Mother Nature. The earthquake registered day Luoyang, in Henan Province. He was stomach to ease the pain. However, if 7.8 on the Richter scale, flattened 80 percent born in Nanyang to a good, but not affluent, left on for too long, the hot oil inside the of the city and resulted in fires all over the family. His grandfather was the governor of contraption may burn him. In order to avoid city. In October 1989, another equally a prefecture. His father, though, died while being burned, Aristotle would hold a bronze devastating quake hit the Bay Area under the Zhang was young and he was brought up by ball above a bronze bowl and, should he eyes of millions as the World Series between his mother and grandmother. At 17, he left doze off, the ball would fall and make a loud two California teams was about to take for the capitals of Luoyang and Chang’an clanging sound to wake him up. place! The Loma Prieta Quake registered a to pursue his studies. At 23, he returned Since Zhang’s seismoscope and records magnitude of 6.9 and devastated areas from to Nanyang with the title of “Officer of of how its mechanism works were lost, the Santa Cruz mountains to San Francisco’s Merit in Nanyang,” serving as the master many questions remain. How did the dragon marina district to collapsing a vital stretch of of documents. mouths open and shut? Can more than one an Oakland freeway, and the broken upper Because of his expertise in mathematics, ball be dropped at a time? deck of the Bay Bridge with a car dangling the emperor summoned him to court. He Chinese scholars have tried to reconstruct precariously above the San Francisco bay! rose through the ranks and was Chief Zhang’s seismoscope through the centuries. on what a Japanese scientist had come up China, too, has had its share of Astronomer from A.D. 115-132. Based on available technology during the with in the 1930s. His illustration shows earthquakes. Records show it’s been He was one of a long line of state Easter Han era, they concluded the dragon’s an inverted pendulum with a weighted bob, plagued by earthquakes as early as Sept. astronomers who was responsible for mouth was controlled by cranks and levers. which can slide along one of eight channels 27, 1290, in Inner Mongolia by a 6.8 creating and maintaining calendars, to push the dragon’s mouth open so the ball On June 13, 2005, an article in People’s magnitude. On Feb. 2, 1556, more than predicting celestial events, and recording would drop out of the dragon’s mouth. Daily announced, “Chinese seismologists 800,000 people were said to have been killed events observed in the skies. The belief The sound from the ball dropping into and archeologists have announced that in three provinces by a violent quake. On in those days was that disasters were the frog’s mouth would notify attendants they’ve created a replica of ‘Didong Yi,’ the Jan. 4, 1970, a 7.2 magnitude quake shook punishments from the heavens, so it was that some sort of seismological event had world’s first seismograph.” Nevertheless, Yunnan Province, which appears to be a very important to pay careful attention to occurred. The direction of where the there are still “some scholarly disagreement active earthquake zone. From 2012-2014, events that might influence government. earthquake occurred was based on which about the exact scientific principles applied the province experienced five earthquakes However, contrary to this popular belief, with magnitudes ranging from 5.6 – 6.1. Zhang maintained that earthquakes were Although Yunnan Province is frequently hit, not signs of Heaven’s anger but natural earthquakes happen all across China from disasters. His uncompromising positions Shanxi Province to Szechuan to Ningxia to on this and certain other historical issues Gansu, to name just a few areas. made him a controversial figure, which also When earthquakes happened, not only prevented him from rising to the status of were supplies distribution disrupted and Grand Historian. lives lost, it also meant, in earlier times, that The stability of the Han Dynasty the central government would not receive promoted the growth of knowledge and the its taxes in the form of grains. As a result, resources to support them. Trade along the it was imperative to have early warning. Silk Road to India and beyond brought new The seismograph is the instrument ideas from other cultures and great wealth. that records when, where and how violent Zhang took full advantage of the exposure to the earth shook. A Chinese invention, the foreigners; he soaked in the influences from seismoscope, which records the ground’s every source and excelled in most fields. In shaking but not the length of the quake, mathematics, he estimated the value of pi. was invented by a Chinese astronomer from He invented a cart ( the first odometer?) to Henan Province, Zhang Heng (张衡). measure lǐ (里), the Chinese mile. (Three Chinese li are roughly equivalent to one English mile.) Temple’s illustration, “The Genius of China” Zhang Heng’s dragon jar In A.D. 132, Zhang invented the hòufēng dìdòng yí (候風地動儀), the first dragon’s mouth the ball was dropped. Some on the seismograph and how precisely the seismoscope. It was called his “dragon surmised that the sound notification of an instrument originally worked.” jar” because it was a bronze jar shaped like event may be the precursor of the alarm Some foreign seismologists argue that if a wine jug with some sort of a pendulum clock. Zhang’s seismoscope worked on principles within. The jar stands about 5.5 feet tall Of course, there were skeptics of inertia, then two (not one) “pearls” should and approximately three feet in diameter. It about Zhang’s apparatus as indicator of fall out from the dragon’s mouths situated on had eight dragonheads arranged around its earthquakes! However, records showed opposite sides of the device. A few western top rim; each dragonhead had a ball in its that one day the ball fell from the mouth of scholars even suggested that since Zhang’s mouth. There were eight frogs at the foot of the west-facing dragon, but no one in the apparatus was “lost,” perhaps it never really the jar with their mouths pointing upwards court felt anything. Then, a few days later, existed! located directly under each of the eight a runner arrived to inform the Emperor that Feng Rui, a China Seismological dragonheads. When an earthquake took there had been a devastating earthquake in a Networks Center research fellow who place, the internal pendulum would swing, village 400 miles away in Gansu Province. heads the restoration team, believes he and causing a ball from the dragon’s mouth to Therefore, the skeptics were converted! his colleagues can testify to the existence drop into the frog’s mouth below. Latter day records showed that this was of Zhang Heng’s seismoscope through The exact mechanics of how it works the Dec. 13, 134, quake with a magnitude collection of historical data and simulated are unknown because the machine itself of seven. Its epicenter was in Tianshui, analysis. and drawings of it have been lost. Robert approximately 400 miles from Luoyang. The seismograph in use today was Temple, a British scholar, offered an While Zhang ‘s seismoscope couldn’t based on a 1703 design by French physicist illustration of his own reconstruction of predict an earthquake, it could notify the Jean de Hautefeuille (1647-1724), a good Zhang’s “likely” mechanism in his “The court when one had occurred so aid could 1,571 years after Zhang came up with his Genius of China.” His illustration is based be sent to the affected area. seismoscope! ♦ chinainsight.info news April 2015 / PAGE 13 Small and simple is fine, but glitter remains key By Wu Yiyao, China Daily, Feb. 18

prepare for the surge - but younger people getting married and auspicious animal such as a tiger or for sure, smaller, simpler newborn babies. an elephant were quite popular, even items are going fast,” said “Giving gold jewelry as gifts is a though they might cost at least 30,000 Liu Caifeng, the manager tradition in Chinese culture,” Sun Lizhi, yuan,” said Cao Yuanyuan, a shop of Yayi Jewelry Co Ltd in a 72-year-old Shanghai resident, said. assistant at Shanghai’s China Gold Co Shanghai’s Yu Garden, one “I have already sent three sets of gold Ltd. of the city’s shopping hubs rings to my grandchildren as wedding “But this year that kind of gold for gold jewelry. gifts, and my first great grandchild is craftsmanship is proving less popular The price of gold about to be born.” because consumers are less keen to climbed to a five-month Sun has just chosen a gold bracelet flaunt their wealth by putting gold items high of $1,306.2 per ounce for her great-grandchild, who is due on show in their sitting room or office.” in mid January, or 262.5 this month. Smaller items such as miniature yuan ($42) per gram. “In the past, I would have chosen kittens or puppies, Cao said, are In some jewelry stores something with complicated patterns replacing the more traditional larger in Shanghai, the precious such as a phoenix or a peony flower. animals on China Gold’s “best-seller” metal’s price is about 330 But young people have their own tastes list. yuan per gram, about 10 these days, so I chose simple designs to As 2015 is the Year of the Sheep, Women check gold bars at a department store in Beijing. higher than the physical play safe. Giving gold items are not just many gold jewelry brands have Gold jewelry prices haven been rising since the start of price after factoring in the about giving your best wishes but also introduced sheep-themed products. this year. [Provided to China Daily] craftsmens’ costs. passing on wealth.” Hong Kong-based Chow Sang Sang A year ago, some stores For the lucky recipients, gifts of the Holdings, for instance, has developed were mobbed with buyers glittering metal themselves are now a gold pendant in the shape of a sheep, Traders say demand for precious looking for a bargain after the price of good enough, without too much carving while Shanghai-based Lao Feng Xiang metals on the rise as nation’s gold took an unexpected tumble, which or shaping. has introduced a gold stamp celebrating annual retail rush takes shape effectively absorbed what turned out to “Gold items are valuable and they the animal. Spring Festival is normally a be a year’s worth of consumption. last forever. I can put one in my safe, or The makers said both designs, have glittering season for gold traders and Sales do normally rise at this time of turn it into cash if I really need money attracted young buyers particularly, who dealers, but this year is less heated than year because giving gold is a tradition in an emergency,” Xu Yifan, 26-year-old despite normally preferring diamonds previous ones, with market insiders during Spring Festival, with price often office worker in Shanghai, said. and crystals, were snapping up the saying consumers are favoring simpler barely a consideration. In the past, gold was often common sheep-themed items as lucky charms. designs and smaller, inevitably cheaper, Rings, necklaces and bracelets are on items, such as paperweights, products. among the most popular items, as they sculptures or vases, but sellers say the “As Chinese new year falls in can serve as gifts to all kinds of people, demand is falling. February, we have had more time to but the most popular recipients are “In the past, gold statues of an Continues on page 14 Minnesota Exports Stats continued from page 1

• Increased sales of soybean products (to • Between the fourth quarters of 2013 and • Growth in sales of electrical machinery in centrifuges/filters, gas turbines, engine Israel) and machinery (to the U.A.E. and 2014, miscellaneous grains (up $67 million), focused on integrated circuits (up 29 percent motor parts and transmissions helped Saudi Arabia) contributed to growth to the optics/medical (up $59 million), electrical to $157 million) – for which the Philippines mitigate declines in computer parts, and Middle East (up 21 percent to $120 million). machinery (up $51 million), cereals (up accounts for 67 percent of exports – and moving and sorting machinery. Gains in wheat exports (to Algeria) drove $49 million), plastic (up $27 million) and insulating wires/cables (up 68 percent to • Ores, slag, and ash exports fell by half growth to Africa (up 36 percent to $80 vehicles (up $26 million) – for which Mexico accounts (down 51 percent) to $98 million. Sales million). $26 million) showed the strongest gains. for 69 percent of exports. to China plunged from $127 million to • Exports fell 4 percent to $1.1 billion to • Miscellaneous grains, including soybeans • Exports of cereals doubled to $99 million $10,000 but the decline was mitigated by the European Union, and 13 percent to and soybean flour surged 99 percent to during this period, due to explosive growth strong growth to Canada (up 26 percent to $230 million to Central and South America. $134 million, driven by the largest markets, in sales of wheat, grain sorghum and rice $91 million). However, strong regional markets included Mexico (up 1,662 percent to $43 million) to markets that had no such exports in the • Growth in exports of vehicle products Belgium (up 16 percent), Austria (up 45 and China (up 17 percent to $36 million), fourth quarter of 2013. Wheat exports was strong in Mexico (up 71 percent to percent to $31 million), Costa Rica (up 70 and smaller markets such as Israel (up 3,071 jumped 161 percent to $36 million, with $86 million, mainly due to vehicle parts), Algeria driving most of the growth (up about Belgium (up 219 percent to $45 million, Figure 2. Double-Digit Export Growth in Five of Minnesota’s Top 10 Markets, Fourth $24 million). Virtually all grain sorghum mainly due to motor vehicles and tractors) Quarter 2014 was sold to China (up $14 million), and and the United Kingdom (up 413 percent virtually all rice was sold to Turkey (up to $14 million, mainly due to tractors). about $12 million). Although exports to Canada fell 8 percent, • Machinery was the second-largest growth in demand for public transit vehicles exported product, as sales fell 7 percent helped offset weaker sales of tractors and to $884 million. While exports performed special purpose vehicles. well in the Philippines (up 324 percent to • Although exports of food by-products fell $20 million) and Mexico (up 14 percent 17 percent, Chile had notable growth (up $9 to $112 million), they fell significantly to million to $10 million). ♦ China, Belgium and Korea. Strong growth Figure 4. Moderate to Strong Growth in Most Major Product Groups, Fourth Quarter percent to $27 million) and Chile (up 37 percent to $9 million) and Indonesia (up 866 2014 percent to $30 million). percent to $6 million). • Sales to China dropped sharply (down • Optics/medical products exports grew 7 $168 million). Excluding China, exports percent to $948 million. Leading growth to other Asian markets grew 15 percent products were optic fiber (up 69 percent to overall, including to Korea, the Philippines, $120 million, including strong growth to India (up 37 percent) and Singapore (up 19 Korea) and medical/surgical instruments (up percent). 12 percent to $337 million, including strong growth to Belgium and Costa Rica). Exports Soybeans, Optic/Medical Products, of orthopedic/artificial parts dropped Electrical Machinery, and Cereals Lead 14 percent to $130 million as demand Export Gains weakened in Canada and the Netherlands. PAGE 14 / April 2015 education chinainsight.info A Talent Show continued from page 4

repeating the lyrics over and over in my head. Now I had more Chinese lyrics to remember. But then we walked onstage. The crowd applauded, and our clunky, electronic music began to play. And the humor of the situation really dawned on me. There was nothing left to do but camp it up as much as I could. I slapped on a big, dumb smile and sang “Nan Ni Wan” like it was my favorite song ever. People started clapping to the beat and singing along - everybody knew this song! It was great to see people enjoying it. The following night, we performed at our own school, and many of the students’ parents came. It was fun to watch the impressive dance acts, which often looked like gymnastics routines with girls holding each other up cheerleader-style, and even wheeling each other on a giant replica of a straw farmer’s hat. Finally, our feet frozen, we got to go home for the night. All the performances were over. We never had to sing “Nan Ni Wan” again. Actually, we had to sing it one more time, for a music festival celebrating the canola blossoms. Xiaoxia and I decided With just two days before the The students put on the dress rehearsal I was actually pretty nervous. I stood that next year, we would have to pick a performance, we scrambled to find an at the school. It was an adorable show - backstage while some kindergarteners different song. ♦ instrumental version of “Nan I Wan.” Different types of garbage plotted against in frilly leotards performed before us, All the karaoke versions online were the trees and flowers. The students saved of the clunky, synthesized variety, like an the day by learning about recycling. The skit army march written for robots. And none ended with everyone singing a song about of them matched our rendition of the song. protecting the environment. Small and simple is So, the night before the performance, the That night, we all went to watch the principal’s wife took us to the middle school, students perform. Their faces were all fine where a teacher waited with a keyboard and painted white with bright circles of red a Chinese songbook. He helped us record a blush and colorful blue eye shadow. They continued from page 13 march-like, electronic rendition of the song. performed their play with gusto. We were I was not excited to perform this song so proud of them. good fortune in the new year.” in Chinese, with our half-hearted dance I was glad that all the performing was Gold items sold by banks have proved steps, in front of hundreds of community over and we could finally focus on our popular too. members. classes. And then … about three weeks Guo Kaiming, 56-year old, said he had The day of the performance, I practiced later, at another staff meeting, our principal just spent around 120,000 yuan buying gold the words over and over, afraid that I would announced that we would have to perform coins and banknotes at a branch of Shanghai get up on stage and my flimsy grasp of the at least twice more in a sort of traveling Pudong Development Bank. Chinese language would fail me. The three “best-of” show of the students’ and teachers’ The notes, made of gold foil in the of us also had colds, so I was downing hot performances. Also, instead of just singing pattern of a banknote, are especially popular water and local honey. My 40-student one verse by myself, I now had to sing among investors, not only as gifts by also an classes were doing nothing to save my voice. almost the whole song. investment, Chen Chen, a wealth manager Finally, after a day of classes, the night Now, I consider my afternoon naptime at the bank, said. of the teachers’ performance arrived. We to be a major perk of my job. From noon to Analysts are predicting that this year’s threw on whatever nice-ish clothes we had. 1:20 p.m., it’s xiuxi time, when I can recover modest consumer habits will have an impact Xianming, my male co-fellow, was abducted from the hallways of screaming children in on the gold market, especially in Asia. and returned caked in make-up. Xiaoxia and my room. So when I found out at lunch on The falling sales of lavish gold jewelry I declined the professional make-up artists Tuesday that we had to practice “Nan Ni is no surprise to Albert Cheng, managing and did our own. Wan” instead of napping, I had to make an director for the Far East at the World Gold It was a cold night. The acts were effort to hide my grumpiness. Of course, we Council, who is already calling this year’s already underway when we arrived at the ended up sitting outside for an hour waiting trends a natural market correction after the school. We quickly realized that the other for various people and eating fruit, which is over-zealous demand of previous years. teachers’ acts had taken the event rather how things are done in rural Yunnan. I was The gold price kept rising last month. In seriously - as in, rented ball gowns and fancy still sick with a cold, because by this point Shanghai, selling premiums were about 20 updos. We watched the coordinated dances in the semester, my immune system was yuan an ounce by the end of January, about of the other teachers, the Chinese romance pretty run-down. 45 yuan higher than the global benchmark. ballads, the prom dresses, and I felt like An official from another school Alex Thorndike, senior precious metals our song and simple choreography would suggested some new choreography for us. dealer at MKS Group, told Reuters that be out of place. She was dressed in a frilly black dress with he thought seasonal demand in China into Two hours later, we finally stripped off toile that flared out like a tutu. Put your the new year is likely to serve as a cushion our winter coats and went onstage. Our arm out, then bring your hand to your chest. against any downside swings in the global dorky little performance was fun, and I was With more emotion. Hen hao (Very good). “Wearing a gold necklace or a pair of market. relieved when it was over. Probably because Now bob your head. Bob your head, bob golden earrings is something my aunts or Liu Feng, senior vice-president and our act had a foreigner in it, we got fourth your head. Hen hao. grandma would do,” Zhang Qi, 20-year-old analyst with CreditEase, a credit and wealth place out of all the acts. I gleefully threw A few days later, we were out in the cold college student in Shanghai, said. management services provider, predicted away the lyrics to “Nan Ni Wan,” glad I once again for our Friday night performance “Young people like me prefer crystal that investors looking to earn from gold never had to sing that song ever again. in the town of Jietou, about five kilometers ear studs or diamond rings, however gold is this year can expect the price to fluctuate The next day, classes were canceled so from our school. The event had a big always considered a lucky item to wear so between $1,100 and $1,350 per ounce over that the students in that night’s performance turnout, and our students did a great job I have this tiny gold locket attached to my the coming 12 months.♦ could get into their make-up and costumes. once again with their skit. purse, and I am hoping that it will bring me chinainsight.info arts & culture April 2015 / PAGE 15 Haircut for this New The Minnesota State Year! Arts Board Public Forum Date: Wednesday, April 8, 5:30-6:30 p.m. Locations: Minnesota History Theatre, 30 East Tenth St., Saint Paul Speaker: Jane Chu, chair, National Endowment for the Arts RSVP by Monday, April 6, to [email protected] or (651) 215-1600 | (800) 866-2787 Chu, the eventually receiving bachelor’s degrees 11th chair of in piano performance and music education the NEA, will from Ouachita Baptist University. She share her vision also holds master’s degrees in music and for the arts in piano pedagogy from Southern Methodist America at this University and a Master of Business free event. Administration from Rockhurst University. Born in Additionally, Chu also has a doctorate Oklahoma in philanthropic studies from Indiana and raised in University, as well as an honorary doctorate An enterprising hairdresser in lunar year) into the heads of his customers. Arkansas, Chu in music from the University of Missouri- Changchun city, Jilin Province (吉林), is A dollar sign also in included to bring wealth studied music Kansas City Conservatory of Music and shaving images of a horned goat/sheep/ram and prosperity! ♦ growing up, Dance. ♦ (depending on what you choose to call this Chinese propaganda posters continued from page 9 in 15 years. In reality, Mao’s Great Leap the common folks or peasants, inspecting Forward resulted in decades of catastrophic factories, standing by the Yangzi River famine, with an estimated toll of 30 million in a bathrobe, presiding over the bow of dying of hunger! a ship, or floating over a sea of red flags. The posters were designed by Other people in the posters, usually chubby, professional artists trained at the Chinese healthy peasants and muscular women in art academies and publishing houses. They “role model” poses, would be looking in drew their designs from three main sources: his direction with adoration, and often with social realism, traditional Chinese folk art the little Red Book held in their hands. and, believe it or not, Western advertising Everyone was always smiling, toiling away from the 1950s, which embodied a happy happily and selflessly, in pursuit of a better life of prosperity - a message the Chinese life and for mother country. The posters government desperately wanted to convey. were to provide examples for the masses Overall, the majority of the Chinese to emulate, to persuade them with ideas of propaganda posters (until the beginning of leadership in a subliminal way. the Cultural Revolution in 1966) showed Jiang Qing, Mao’s wife, pretty much the desire of the common Chinese to have controlled what was allowed on the posters a better life with the overall message: “to as the Cultural Revolution got underway. be a good Chinese person and to be a good Under her supervision, physical attributes patriot,” was how Bailey put it. between males and females were blurred. Political 10 little Indians and Everyone had boxy body shapes, absurdly ideology big hands and feet in order to portray “every There is a series of three posters at a subject as a hero.” the people aware of the modernization “Welcome the People’s Volunteer Army” relatively unknown museum in Shanghai, policies. Poster images during this period (above) from 1951 fetching the highest the Shanghai Propaganda Poster Art Center. were less militant and more impressionistic, price. Buyers included expats residing The three posters in this series show with colors that were more subdued. in Hong Kong, local Hong Kongers, and Chairman Mao standing at the top of Accompanying slogans encouraged a more overseas buyers such as libraries, museums Tiananmen Square in Beijing, flanked by cultured, courteous and hygienic way of life. and private collectors. Picture This Gallery a number of officials. On first glance, the The struggle theme was replaced by a theme continues to see interest for these vintage posters appear pretty much identical until that aspired to personal success. Chinese propaganda posters. you look closer at the “bit players,” the Future of propaganda posters Katherine Fung, manager of Picture officials in Mao’s background. In the first This Gallery, says, “China’s economic With the exponential growth in “edit,” Gao Gang (高崗), a senior party importance in recent years has certainly ownership of television sets in the 1980s, official, disappeared from the poster. Gao helped bring interest to the vintage posters the prominent role of the propaganda was purged and committed suicide in 1954. we have been showcasing, but we do poster diminished. The number of posters The second “edit” removed Liu Shaoqi (劉 At the height of the Cultural Revolution carefully curate our collections to include produced declined dramatically as people 少奇), the Chinese president at the time. from the late 1960s through the 1970s, the posters with strong graphics and which are considered them old-fashioned. Liu fell out of Mao’s favour; was purged images and mood became ugly. Smiling able to provide insight into socioeconomic and labeled a traitor in the late 1960s. By faces gave way to images reflecting hate. Alas, the government visual tool that and political happenings of the time. The 1968, Liu had disappeared from public life. Even children displayed fierce and hateful built and controlled national identity for condition and rarity of the posters are So in this third poster, Liu’s image had been expressions in their quest of purging the almost half a century, THE tool that guided another two factors that we will take into replaced by an unidentified man. As one “Four Old Evils” – old ideas, old culture, old the Chinese in morals and in achieving account when putting together collections.” New York visitor to the museum commented customs and old habits – best exemplified utopia, could not withstand the age of radio However, when asked about the recent on NPR‘s 2012 program, “It’s the political by the 1970 poster titled, “Grow Up Amid and television. And now, social media! “Chinese Dream” posters, she said, “Sadly, equivalent of the children’s song “Ten Little Struggles.” (above) But wait …when President Xi Jinping I don’t see the same level of creativity in the Indians.” When Deng Xiaoping succeeded Mao, launched his “Chinese Dream” in 2012, recent “Chinese Dream” posters. They are Between 1959-1976, Mao and his Red he focused on economic rejuvenation of what was used to promote the concept? lacking in quality of design, production and Book seemed to dominate the posters! the country, better known as “realize the You guessed it! Big posters and wall creativity, so I don’t personally feel they will Mao’s image, with his round, red-toned face Four Modernizations” (實現四個現代 murals. Perhaps these, too, will one day be incur the same level of interest in the future.” was everywhere. He was the Great Teacher, 化). China also started opening up to the collectors’ items? Tip for all you would-be collectors out there! the Great Helmsman, the Great Leader and West and the posters’ objective shifted to More than half of the posters in the To see the gallery’s collection, visit the Supreme Commander. He appeared supporting the new, multifaceted policies three-week-long “Revolutionary Fervour” www.picturethiscollection.com and click in all kinds of situations interacting with for the reform package, and to making exhibit were sold, with the one titled on the “Original Posters” tab. ♦ PAGE 16 / April 2015 events chinainsight.info The 8th annual “A Passage to China” continues to draw large crowds at Mall of America By Greg Hugh

Unlike previous years, the 8th “A or perhaps cancel this year’s event. In the Committee kicked into gear, doing what afternoons. A newly opened entrance from Passage to China” came in March instead end, the Passage Committee decided to they have consistently done in the past: Nickelodeon into the Rotunda also attracted of April. It may also have fooled Mother continue with the event given the level of transformed the MOA Rotunda and Sears new visitors to Passage for the first time. Nature since it was an unusually warm security present at MOA, for which they Court into a festive Asian atmosphere. Other enhancements included weekend with temperatures that reached are grateful. Extra security during Passage The semi-circular arrangement of tables in technological improvements by volunteer 70 degrees one of the two-day event. In in both the Rotunda and Sears Court the Rotunda continued to attract and build Will Ahern on the jumbotron that attracted addition to competing with the weather that throughout MOA were present. on the positive energy generated by the many more onlookers on the upper levels may have affected attendance, Passage had Pearl Bergad, executive director of steady stream of thousands of appreciative in the Rotunda, and improved logistics to deal with a terrorist threat that specifically CHFF, stated, “The Passage Committee attendees who came through during the for performing groups that eliminated the named Mall of America as a target. is also grateful to the many participating two-day event. The central ‘palazzo’ crowdedness around the stage area. The recent terrorist threat on MOA organizations and committed volunteers proved to be a wonderful gathering spot For additional photos and videos resulted in a slightly smaller number of who opted to participate. Together, we for old friends and new acquaintances to of “A Passage to China,” visit www. participating organizations. In the month made a stand for peace and understanding, further their connectedness. So was the chineseheritagefoundation.org. ♦ preceding the event, there were some anxious as proclaimed in our Gates of Mutual festively decorated kiosk between the days during which the Passage Committee Understanding and Mutual Courtesy.” Rotunda and Nickelodeon. Many attendees of the Chinese Heritage Foundation Friends Once the decision to move forward found a welcome respite there, entertained deliberated as to whether or not to continue with Passage was made, the Passage by Lauren Moy on the guzheng in the

Photo credits to Jessica Fang