Jon Huntsman, Former U.S

C hina Fostering business and culturalI harmonynsight between China and the U.S.

VOL. 13 NO. 5 MAY 2014 Jon Huntsman, former U.S. Ambassador to China, part of UM’s China 100 Symposium Asian-Americcan heritage, page 2 By Greg Hugh

exchanges, partnerships and opportuni- Barack Obama and George H.W. Bush ties that exist today. Collectively, the and is noted for his ability to infuse various themes tell the stories of people issues of global importance into key and events that help us understand the political and economic concerns facing development of engagement between audiences today.” the University and China. This writer was granted a very brief, During the Opening Plenary held in personal interview with Huntsman prior Memorial Hall, University representa- to his scheduled presentation: Following China Briefs, page 3 tives greeted the gathering, announced are two of the questions time allowed: that Governor Mark Dayton had issued CI: Do you have any advice for Max John Huntsman a proclamation in recognition of the Baucus, the current U.S. Ambassador China 100 Symposium declaring April to China? The McNamara Alumni Center on 22, 2014, as Minnesota China Education JH: I would tell him to do what he the Minneapolis campus of the Uni- Exchange Day. Also introduced was knows best. As the former chair of the versity of Minnesota was abuzz with a panel of Chinese alumni, including Senate Finance Committee, he oversaw activity on the afternoon of April 22. Lawrence Pan, grandson of Pan Wen- tax and trade policy so he could use It was one of the University’s China ping, one of the first Chinese students this experience to develop mutually Passage to China, page 8-9 100 events, followed in the evening by to attend the University in 1914. beneficial trade relations between the the 13th annual Bob and Kim Griffin Next on the schedule were breakout U.S. and China. Building Bridges Lecture featuring Jon sessions that covered the following CI: Why did you decide to join the At- Huntsman, former U.S. Ambassador to topics: lantic Council now as its chair? China. China 100 is a yearlong celebra- • Dialogue between business leaders: JH: After politics, there was not much tion honoring the first students from China business strategies and growth that was worthwhile pursuing. By China and the wealth of connections that trends serving on the Atlantic Council, there have come since. The University noted • Minnesota and China: global agricul- is an opportunity to be involved with that as a result of the more 80 memo- ture and food safety international affairs by addressing the randums of agreement signed with some • PM2.5 health effects and control global challenges with which we are Nankan cliff grottoes, page 10 30 Chinese universities as strategic part- • Medical research collaboration be- presented. ners, the University’s world-renowned tween Minnesota and China Prior to Huntsman’s talk, Joan faculty are working with Chinese re- • Pioneers in educational exchange: Brzezinski, executive director of the searchers to address some of the world’s How the University established mean- China Center and Confucius Institute welcomed the gathering and introduced most pressing problems. ingful partnerships with China Eric Kaler, president of the University During registration for the sympo- • Sustainability efforts for China’s of Minnesota, followed by Meredith sium, attendees were able to view an future. McQuaid, associate vice president and exhibit that depicts the deep history Each session included a discussion by a distinguished panel of experts. Un- dean for international programs. Eric Sustainable urbanization, page 14 between the University and China in fortunately, attendees could only attend Schwartz, dean of the Humphrey School the past century. It highlights remark- two sessions and there was not enough of Public Affairs, introduced Huntsman able moments that led to the wealth of time to properly explore these topics. and the title of his lecture: China: Op- In This Issue The China 100 Symposium con- portunities and Challenges. cluded with a social hour. Huntsman presented what he per- Jon Huntsman was the highlight ceived to be the opportunities and Celebrations...... 2 of the Bob and Kim Griffin Building challenges China faces in a manner Politics...... 3 U.S.-China Bridges Lecture. The Grif- that most people would understand, not Culture.....4,8,9 fins’ substantial gift to the China Center about hard-to-understand political and Business..5,13,15 reflects their commitment to promoting economic issues. mutual respect between the U.S. and According to Huntsman, China is Finance...... 6 China and their passion to connect basically in control of its own destiny. Geopolitics...... 7 Its future will depend on how it handles people to China. Travel...... 10 According to the program’s bio, the urbanization of its population while Huntsman is “A distinguished diplomat, dealing with the dominant state-owned Food...... 11 successful businessman and twice-elect- enterprises and the mega players. He Government...... 12 stated that while he feels Xi Jinping, ed governor of Utah. Jon Huntsman Education...... 14,15 brings a bipartisan global perspective president of China, is a most impres- Events...... 16 in elevating the discussion on the key sive leader, Xi nevertheless is in the issues and challenges facing the world “hot seat” that needs to deal with a 21st century U.S.-China relationship Proclamation today. He served as U.S. Ambassador to China and Singapore for Presidents Continues on page 7 PAGE 2 > MAY 2014 celebrations www.chinainsight.info Celebrate Asian-Pacific ChinaInsight Publisher/Editor: American Heritage Month Gregory J. Hugh [email protected] By Greg Hugh May is Asian-Pacific American Heri- Heritage Month is Diverse Leadership + Manager of Operations/ tage Month – a celebration of Asians and Expanding Opportunity: An Imperative Circulation: Pacific Islanders in the United States. A for America. Richard He rather broad term, Asian-Pacific encom- There are 3.8 million Asians of Chi- [email protected] passes the entire Asian continent and the nese descent, excluding Taiwanese, in Pacific islands of Melanesia (Fiji, New the U.S. in 2010. Chinese-Americans Caledonia, New Guinea, the Solomon were the largest Asian group, followed Marketing: Islands, Vanuatu), Micronesia (Guam, by Filipinos (3.4 million), Asian Indians Yin Simpson Kiribati, Marianas, Marshall Islands, the (3.2 million), Vietnamese (1.7 million), [email protected] Federated States of Micronesia, Nauru, Koreans (1.7 million) and Japanese (1.3 million). These estimates represent Wake Island, Palau) and Polynesia Staff Writers: (Cook Islands, French Polynesia, Easter the number of people who reported a specific Asian group alone, and people Greg Hugh Island, Hawaiian Islands, Midway Is- [email protected] lands, New Zealand, Rotuma, American who reported that Asian group in com- Samoa, Samoa, Tonga, Tuvalu). bination with one or more other Asian Elaine Dunn groups or races. A 1978 joint congressional resolu- [email protected] Whether you are Asian American or tion established Asian-Pacific American non-Asian, you can celebrate APA Heri- Whitney Clark Heritage Week to be observed in May, tage Month by eating at Asian restau- [email protected] a month chosen to coincide with two rants or attending one of the numerous important anniversaries: the arrival in Census Bureau lists more than 25 such APA Heritage events organized by local Contributors: the United States of the first Japanese groups – Australians, Bangladeshi, Bur- Asian American community organiza- Anthony James immigrants on May 7, 1843, and the mese, Cambodian, Chinese, Filipinos, tions. Taste the different foods from [email protected] completion of the transcontinental rail- native Hawaiians, Indian, Indonesian, Asian countries, watch cultural per- road (work of many Chinese laborers) Japanese, Korean, Laotian, Malaysian, formances and learn more about Asian Jodi Yim James on May 10, 1869. In 1992, Congress ex- New Zealanders, Pakistani, Polyne- American history and culture. The [email protected] panded the observance to a month-long sians, Taiwanese, Thai, Sri Lankan and Chinese community in the Twin Cities celebration during which the achieve- Vietnamese. As Americans, they con- recently celebrated their heritage by Raymond Lum ments of American ethnic groups with tribute to the strength of the U.S., help holding the seventh annual A Passage to [email protected] roots in Asia and the Pacific Islands are shape its future and share in its promise China event at Mall of America, which Patrick Welsh honored and their contributions to the and opportunity. you can read about on pages 8-9. u [email protected] United States recognized. The U.S. The theme for this year’s APA

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A PooPoo Smoothie Not sure if Burger King intends this to be some cruel joke, but new on its menu in China is the PooPoo Smoothie. Disgusting as the English name may sound, people who’ve tried Last fall, the Chinese government court. And, of these 1,068 are 14 who it says the mango-flavor bubble tea-like announced two new national holidays. were directly linked to “crimes against concoction tastes delicious. Its Chinese Cause for celebration, right? Wrong. peace” in China during WWII. In addi- name implies “cold drink with blow-up The two national holidays fall on Sept. tion, since the present PM Shinzo Abe’s pearls.” 3 and December 13. visit to the shrine late last year, several What is the significance of these Japanese officials have made public two dates? The Sept. 3 holiday is to be statements alluding to the fact that the # Become more Chinese in think- called Victory Day, a day to celebrate Nanjing Massacre “never happened.” # 1 ing the 1945 success of Chinese resistance This has given cause for the Chinese # 6 Approximately 100 million Chinese against Japanese aggression during the government to try and delegitimize and 3 8 citizens are expected to travel overseas Second World War. Dec. 13 is the date isolate Japan, an approach approved by in 2014. To attract more Chinese tour- picked to commemorate the victims and popular with South Korea. By the numbers# of the Nanjing Massacre (aka Rape of Why does Abe visit the shrine # 4 ists, an April 1 press release from the # 7 # 2 Chinese Friendly International organi- Nanking) of 1937. amidst such international controversy? 10 Partly because his own grandfather zation urged European tourism experts Why would Beijing introduce these two national holidays now, decades is enshrined there and partly because to go beyond crossing the language after the incidents? It’s understandable it plays well with his political base, barrier and to pay attention to Chinese had they started commemorating either especially the younger generation who 30.5 culture and way of thinking; have event when the feelings were still raw. appear quite ignorant of the nature of the Cars owned per 100 resi- more Chinese food on menus, employ But now? Many observers suspect some war, which supports Chinese and South dents in Xiamen, the highest Chinese-speaking staff and make infor- of the reasons being Beijing’s: Korean claims that Japan’s history edu- (in per capita terms) in China. mation available in Chinese. • Annoyance with Japan’s increasingly cation takes a “historical revisionist” New York City is at 22 cars right-wing government approach. To this younger generation of per 100 residents. Japanese, Abe’s ambition to remilitarize Wealthy Chinese buying up U.S. • Attempt to deflect attention from the slowing economy and increasing official Japan has stirred up nationalistic pride. homes corruption scandals, and, On the other hand, the Japanese are Wealthy Chinese looking to diver- • Ploy to turn up the heat on the Diaoyu right to question China’s motives for 12.2 sify out of China bought up 12 percent Islands dispute with the Japanese. inaugurating these two commemora- MPH was the average driving of all U.S. homes sold to foreign citizens This is not to say that there is no tive holidays more than 60 years after speed in downtown Kunming last year. The National Association of merit to either of the new holidays. the war. However, a Japanese Cabinet during rush hour. Kunming Both the Chinese and South Koreans, minister said that the holidays are “a do- Realtors noted that more than half the has a population of 14 million homes were in California. More than a fellow victim of Imperial Japan, have mestic matter for China, so the government declines to comment on it. Japan’s permanent residents. two-thirds of the Chinese buyers paid in long accused the Japanese of ‘white- washing” their war history. The fact position on WWII has not changed a cash! However, some of these Chinese that generations of Japanese students bit, and Japan has followed the path of buyers may be in for a shock: property know little of the atrocities committed peaceful nationhood since the end of the value may be a bargain, but many did 200 by their ancestors irritates both of her war, which has been highly commended New cars are added daily to not take property taxes and home main- by the international community.” Asian neighbors. the roads of Lhasa, Tibet. tenance into account – a foreseeable Since 2006, Japanese Prime Min- Whatever the intention is behind problem. isters have visited the infamous (and China’s two new holidays, this move controversial) Yasukuni War Shrine, serves as a reminder that despite ongo- ing diplomatic and trade relations be- First 24-hr Beijing bookstore throwing salt onto an old wound. Ya- 2020 sukuni is where the souls of those who tween these two Asian nations, there is opens Is the year when mainland served Japan are honored. Among an underlying and, maybe overshadow- China will account for one- The first 24-hour bookstore, Sanlian ing, distrust and dislike for each other. u those are 1,068 who were convicted third of all auto sales world- Taofen Bookstore, in Beijing opened of war crimes by a post-World War II April 8. If the 10-day trial of the 24-hour wide. bookstore goes smoothly, the store may never close again. According to a survey by the Chinese Academy of Press and 2191 Publication in 2013, Chinese people Advertisers Bentleys were shipped to read 4.39 books per capita in the past (and presumably sold in) year, a figure that trails far behind major China in 2013. developed countries. Your potential customers are reading hina nsight Generation of “losers” C I . Recent research found a cross-sec- Shouldn’t you be bringing them in the door tion of office workers saw themselves with an ad? as losers. More than 90 percent of pro- Read grammers and journalists and about 80 Contact: Greg Hugh ChinaInsight percent of food and service industry and (952) 472-4757 marketing workers said they did. Those E-mail: online who least identified with being losers [email protected] were civil servants, working for the www.chinainsight.info government or the Communist Party. PAGE 4 > MAY 2014 culture www.chinainsight.info

What’s the story? Classic Chinese novel “Dream of the Red Chamber” (紅樓夢) By Elaine Dunn In case you haven’t heard, The When the novel begins, the son, Jia with them. Chinese Heritage Foundation Friends Baoyu (贾宝玉), was about 12 or 13. Qingwen (晴雯): Baoyu’s personal has initiated and is underwriting the He loved to keep company with his girl maid. Brash, haughty and the most beau- commission of a new opera based on cousins. He has a special affinity with tiful maid in the household, Qingwen is the classic Chinese novel, “Dream of one of them – the sickly Lin Daiyu ( said to resemble Daiyu very strongly. the Red Chamber,” featuring music by 林黛玉). But he was slated to marry She’s the only one who dares to argue world-renowned Chinese-American another cousin, Xue Baochai (薛宝钗). with Baoyu when reprimanded, but is composer Bright Sheng and an English- The two girls have completely different also extremely devoted to him. language libretto by the composer and personalities. Jia likes them both, but Yuanyang (鸳鸯): The Dowager’s Tony Award-winning Chinese-Amer- loves Lin, who shares his love of poetry chief maid. She rejected a marriage pro- ican playwright David Henry Hwang and music. Xue, on the other hand, is posal (as concubine) to the lecherous Jia (China Insight, February 2014). The sensible and tactful - a model Chinese She, the Dowager’s eldest son. commissioned opera to be produced by feudal maiden. The novel is about the It’s perfectly understandable if your the San Francisco Opera Company and romantic rivalry and friendship among head is spinning already. But I hope a fall 2016 premiere is planned. the three. you’ll hang in there for the intrigue and I thought it would be nice to retell In the words of Pauline Chen, an treachery to come. It’ll be worth the this Chinese classic in the next few author who wrote a “retelling” of the trouble! months. Yes, a few months! “Dream novel, these three form “the most fa- BTW, follow-up to last month’s col- of the Red Chamber” is a very LONG mous love triangle in Chinese literary umn, I received no emails from anyone Cao Xueqin (曹雪芹). novel, 120 chapters in all! One English history.” telling me they’ve heard of Shangqiu ( translation ran 2,500 pages. (That will 商丘). not be the version I’ll be re-reading!) Cast of characters Till next month! u Even though it was considered one of There are some 400-plus characters the greatest Chinese classics, “Dream of in the novel. In addition to the three the Red Chamber,” unlike “Romeo and who form the love triangle, the follow- Stages Theatre Company brings Juliet” or “The Scarlet Letter,” was not ing list includes some of the other main required reading as I went through sec- characters: ondary school in Hong Kong. However, Grandmother Jia (贾母), aka author Grace Lin’s Chinese out of curiosity, I did read an English Lady Dowager): Grandmother to both translation over Christmas break my Baoyu and Daiyu, she is the highest fantasy to the stage freshman year in college. Since that was living authority in the Rongguo house eons ago, I’m ‘fessing up that I don’t and the oldest and most respected of the HOPKINS, Minn. – Stages The- remember much of the details. I will entire clan. atre Company (STC) in collaboration check another copy out of the library Jia Yuanchun (贾元春): Baoyu’s with Mu Performing Arts, presents and reread it. I will then do a “retell” in elder sister, becomes an Imperial Con- “Starry River of the Sky,” based on the the next few issues. sort and is a favorite of the Emperor. children’s book, “Where the Mountain For now, I will give a brief intro to Wang Xifeng (王熙凤): Baoyu’s Meets the Moon” by Newbery Award- the author, a synopsis of the novel for elder cousin-in-law, young wife to winning author Grace Lin. The story those who are unfamiliar with it, and a Baoyu’s paternal first cousin Jia Lian. was adapted for the stage by Jeannine partial list of the key characters. She’s the worldliest woman in the novel Coulombe, and directed by Sandy and is in charge of running the house- Boren-Barrett, STC’s artistic director, Cao Xueqin hold, therefore wields remarkable power and Rick Shiomi, former artistic director The author is Cao Xueqin (曹雪芹). within the family. at Mu Performing Arts. His birth and death dates were not well Jia She (贾赦): The elder son of the “Starry River of the Sky” is filled documented, but were supposed to be Dowager, Baoyu’s uncle and father of with Chinese folklore, fascinating char- around 1715 or 1724 to1763 or 1764. Jia Lian and Jia Yingchun. He is treach- acters and exciting new adventures and He was born into a wealthy clan and his erous, greedy and a womanizer. and is recommended for ages 7 and up. grandfather was a childhood playmate Jia Lian (贾琏): Xifeng’s husband The moon is missing from the remote of the emperor Kangxi (康熙). How- and Baoyu’s paternal elder cousin, also Village of Clear Sky, but only a young ever, after the death of his grandfather, a notorious womanizer. He and his boy named Rendi seems to notice! and because of the political upheaval wife are in charge of most hiring and Rendi has run away from home and is of the times, the family lost its wealth monetary allocation decisions, and often now working as a chore boy at the vil- and stature. Cao was said to have lived fight over this power. lage inn. He can’t help but notice the the last years of his relatively short Jia Yingchun (贾迎春): A kind- village’s peculiar inhabitants and their life in poverty in the western suburbs hearted, weak-willed person with a problems. Where has the innkeeper’s of Beijing. It was under these adverse “wooden” personality. Her most famous son gone? Why are Master Chao and conditions that he wrote “Dream of the trait is her unwillingness to meddle in Widow Yan always arguing? What is the through Saturday from noon to 6 p.m. Red Chamber.” the affairs of her family. crying sound Rendi keeps hearing? And Tickets are $15 for adults, and $12 for Intelligent and talented, he was also a Jia Zheng (贾政): Baoyu’s father, how can crazy, old Mr. Shan not know children (ages 5 to 17) and seniors (60+). drinker, a painter, a progressive thinker the younger son of the Dowager. He is if his pet is a toad or a rabbit? Performances run through May 18. and a writer. He used the tragic love a disciplinarian and Confucian scholar. STC is hosting a book signing with STC was founded in 1984 and has story as a commentary on the hypocrisy Afraid his one surviving heir will turn author Lin on Saturday, May 3, from grown to become one of the largest pro- and decadence of the feudal society in bad, he imposes strict rules on his son, 12:30-1 p.m. (prior to the 1 p.m. perfor- fessional theatres for young audiences which he once lived. There is an on- and uses occasional corporal punish- mance) and 6:30-7 p.m. (prior to the 7 in the country. We engage young artists going debate whether his protagonist, ment. p.m. performance). Both signings will with themes relevant to their lives and Jia Baoyu, was a self-portrait. Lady Wang (王夫人): Buddhist, be at the Hopkins Center for the Arts, involve them in creating magical works primary wife of Jia Zheng and Baoyu’s home of STC, and are free and open to featuring young people in meaningful The story mother. Appears to be a kind mistress the public, no ticket to the performance roles. Through theatrical productions, As you already know, it’s a love story and a doting mother, she can be cruel is required. workshops, conservatory classes and with an unhappy ending. It takes place and ruthless when her authority is chal- Visit www.stagestheatre.org for other outreach programs, Stages The- within the confines of the Jia family lenged. She pays a great deal of attention performance dates and times, and to atre Company annually serves more compound. The Jias is a wealthy and to Baoyu’s maids to make sure Baoyu purchase tickets; or call the Box Of- than 130,000 young people and their powerful family. does not become romantically involved fice at 952-979-1111, option 4, Tuesday families. u www.chinainsight.info business MAY 2014 > PAGE 5 An overview of China’s retail industry By Eunice Ku, Dezan Shira & Associates

into consumer behavior. Key factors Chinese consumers conducted by the and willing to pay a premium for bet- identified were better job prospects and Samsung Economic Research Institute, ter quality and unique products and stronger purchasing intentions. Figures the young new consumers of China are services, as well as discretionary goods for tier-two and tier-three consumers in a unique class. As a result of the one- that are beyond the basic necessities. particular witnessed big jumps com- child policy implemented since 1979, Competition in the consumer markets pared with the start of 2013. All this parents are generous in giving financial sector is also set to intensify as more supports predictions that consumption support to their children, affording them multinational companies increase their will overtake investment as the largest more comfortable financial prospects presence in China. Companies should contributor to China’s GDP growth. and larger budgets. devote time to understanding what According to Nielsen, the top four Unlike the older generation, China’s consumers are doing, how preferences areas where tier-two and three consum- youth have little experience with hard- are evolving, and the underlying motiva- Changing Consumer Market ers are using their spare cash are on new ship and more exposure to different tions of their behavior. As the growth Moving towards a consumption clothes, dining out, education funds, and cultures; as a result, they are more opti- of the urban labor pool slows due to the – and service – focused economic into saving deposits. For 2013, these mistic, open-minded and individualistic, country’s aging population, companies model two tiers contributed almost half of the caring more about their own indepen- will need to enhance their efficiency and total fast-moving consumer goods sales. dence, freedom and distinctiveness. productivity by planning more strategi- Underpinned by the steady rise of Health and wellness-related sectors They judge themselves and others by cally, providing appropriate training and household income, China’s retail market maintained robust growth in 2013. A what they buy and have been exposed improving employee loyalty, as well has become one of the most lucrative few cities with huge growth potential to foreign and domestic brands. They as utilizing high-tech equipment for and rapidly growing in the world. China were chosen by Nielsen as examples of love big brands and spend money to automation. is currently the world’s second largest the so-called “emerging tier-one cities,” reflect their personal tastes, sensibilities In addition to the traditional physical retail market, and Asia’s largest. It is including Chongqing municipality and and sense of individuality, pursuing self- retail stores, e-commerce and mobile expected to surpass the U.S. to become Suzhou, which are expected to become expression in their purchases. commerce are both boosting retail sales. Digital marketing and in particular so- the world’s largest retail market by the powerhouses of China’s future They are also better educated and cial media are playing dominant roles in 2016. After years of accelerated growth economy. informed than previous generations, impacting consumer’s on their purchas- and annual expansion rates of 10 percent with a broader vision of the world, moti- ing decisions, with influential social or more, China’s growth in 2013 slowed Class demographics vating them to pay much more attention media websites, such as Sina Weibo down to 7.7 percent – level with the fig- McKinsey’s research suggests that to environmental and social concerns and Meilishuo, providing exposure to ure for 2012. This slowdown in growth the upper middle class is poised to than previous generations. Companies a tremendous variety of goods as well is consistent with China’s effort to carry become the principal engine of con- should adapt to this new generation of as opportunities to share reviews and out a major overhaul aimed at weaning sumer spending over the next decade, young consumers by differentiating feedback among friends and users, its economy off its decades-long reli- labeling consumers with household their offerings and adjusting their brand- thus encouraging more customers to ance on heavy industry, export-oriented incomes in the RMB 106,000 to 229,000 ing and marketing strategies to attract purchase online. manufacturing, state-driven investment, (US$17,538 to 37,893) range the up- younger consumers. Given the growing importance and as well as investment in infrastructure. per middle class. By 2022, the upper huge potential of the country’s retail in- Meanwhile, to rebalance the nation’s middle class is estimated to account for Strategies for market entry 54 percent of urban households and 56 Potential of second and third tier dustry, China’s retail market has become economy, policymakers are attempting too big for international businesses to to shift toward a more consumption- and percent of urban private consumption. cities Middle-class growth rates are ex- Currently, China’s retail sector is ignore. For foreign investors eager to service-driven model, hoping to foster grab a share in the booming retail mar- and sustain more productive growth pected to be far greater in the smaller fragmented. Small independent stores and less-developed third- and fourth- dominate the retail landscape, with the ket, setting up a physical retail shop in over the next decade and beyond. the country is perhaps the most direct In recent years the Chinese govern- tier cities of the north and west, where top 100 retailers accounting for only 11 u ment has been pushing for pay increases disposable incomes are rising rapidly. percent of total retail sales. For a long way to tap into the local retail market. to retain public support and boost do- In particular, the share of upper-middle- time, companies only set up stores in mestic consumption. Wages have also class households in third-tier cities is the downtown areas of first- and second- risen as millions of Chinese move from expected to reach more than 30 percent tier cities of the Chinese mainland. the countryside into the cities, and as by 2022, up from 15 percent in 2002. However, with rising rent costs and employers struggle to find and retain Meanwhile, the ratio of China’s urban increasingly fierce competition, large workers amidst China’s rapidly aging middle class in the four tier-one cities, retailers are gradually losing their price population. According to Bloomberg, i.e., Beijing, Shanghai, Guangzhou, and advantage. Meanwhile, in the wake salary figures from the first three quar- Shenzhen, is also expected to decrease of China’s rapid urbanization, former ters of 2013 showed an increase of about substantially by 2022. Sustained growth small and medium-sized cities have 11 percent from the comparable period in the size and diversity of China’s gradually developed into large cities, in 2012. Urban residents saw their dis- middle class will create new market providing tremendous opportunities. posable income increase 9.7 percent opportunities for both domestic and This combination of concentration of last year, or 7 percent when factoring in international companies. populations and gradually improving inflation; in the same period, rural resi- In addition to affluent and ultra- infrastructure are attracting the attention dents’ net income rose 9.3 percent after wealthy consumers, McKinsey’s re- of the international retail giants. adjusting for inflation, as per official search finds that upper-middle-class Some retailers are therefore shifting This article is an excerpt from the statistics released by China’s statistics ones are stimulating rapid growth in their business focus in China from first April 2014 edition of China Brief- bureau. In 2014, China’s wages are set luxury-goods consumption, which has and second tier cities to third and fourth ing Magazine, titled “China Retail to increase by 10 percent or more, which surged at rates of 16 to 20 percent per tier cities. In fact, 58 percent of newly Industry Report 2014.” In this spe- is expected to further boost consumption annum for the past four years. Accord- opened stores across China are found in cial edition of China Briefing, we and drive low-cost manufacturers out of ing to Hurun’s 2012 Report, the number tier-two and tier three cities. provide an overview of the retail in- the country. McKinsey’s research sug- of Chinese individuals worth more than Companies need to keep in mind dustry in China and the procedures gests that by 2022, more than 75 percent RMB10 million broke the one million the varied needs of rapidly expanding for setting up a retail shop, focusing of China’s urban consumers will earn mark for the first time, while China’s smaller cities. Rather than a cookie- specifically on brick-and-mortar RMB 60,000 to 229,000 (US$9,000 to super-rich, defined as individuals with cutter approach, companies should physical retail stores. Further, we 34,000) a year. wealth greater than RMB100 million, design city-specific solutions, includ- With more money flowing into Chi- increased to 63,500 individuals. This ing product portfolios, marketing ap- have invited our partner Direct HR nese households, consumption levels means that there is one millionaire for proaches, and operating models tailored to offer some insights on the talent have experienced a marked increase. In every 1,300 people in China. to the unique demographics and culture landscape in the retail industry, December 2013, retail sales increased of these cities and the needs of increas- as well as tips for recruiting retail 13.6 percent compared to the previous Generational change ingly sophisticated consumers. personnel in China. year. Chinese consumer confidence Companies should also keep in mind - See more at: http://www.china- reached a record high of 111 points in generational change and the effect of Adapting to the China market briefing.com/news/2014/04/16/ the last quarter of 2013, according to differently held values on the con- With higher incomes and increas- overview-chinas-retail-industry. findings from Nielsen, a leading global sumption behavior of China’s younger ing affluence, consumers are becoming html#sthash.v0Z5Ui5K.dpuf provider of information and insights generation. According to a study on increasingly sophisticated, demanding, PAGE 6 > MAY 2014 finance www.chinainsight.info

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Bitcoin1183834_11609 10x7 bw.indd 1 exchanges scramble after PBOC 4/4/14 12:37 PM crackdown By Elaine Dunn financial institutions to stop PBOC directive and the increasing scru- directive and rules.” It also said yuan dealing in bitcoins is lame. tiny of virtual currencies worldwide, withdrawals and deposits in bitcoins On March 27, PBOC was said Chinese interest in bitcoins would will continue. OKCoin, China’s largest to have notified banks and diminish. Not so. One of the beauties virtual currency trading center, indicated payment companies to close of bitcoin is that it is good for getting that if Chinese exchanges can’t accept bitcoin trading accounts by around capital controls and other mon- money into corporate accounts, they April 15. This new directive etary regulations. By buying bitcoins could incorporate themselves overseas prohibits clearing, account with yuans and selling into other cur- and move their servers overseas. opening and other services rencies, Chinese bitcoin owners can BTC China mentioned customers for bitcoin exchanges. As a successfully evade capital controls. The could use cash to make direct deposits to result, bitcoin prices dropped increasingly intolerant attitude toward BTC China. As of April 10, BTC Chi- more than 10 percent that day. bitcoin by the Chinese government and na’s CEO Bobby Lee said bitcoin trad- Even though two of the is current regulations may be its way of ing volume at his exchange was down largest Chinese bitcoin ex- stopping cross-border capital outflow. by 80 percent from its peak. BTC China Bitcoins have taken a beating ever changes, Shanghai-based BTC China And, unlike other investors, Chinese launched “Picasso ATM,” a Web-based since the late-February bankruptcy fil- and Shenzhen-based BTC38, said bitcoin investors are mostly speculative, app that allows the exchange’s clients ing of Tokyo-based Mt. Gox exchange. they had not received any notifica- in it short-term to turn a quick profit, to sell their own bitcoins. The transac- From a peak value of $1,145.25 in De- tion by their banks or processors, by prompting the Chinese government to tions are completed with confirmation cember 2013, it’s fallen approximately April 3 they had suspended some say in December that bitcoin is not a codes via smartphones and transferred to the exchange’s customer accounts. 60 percent to $350 early-April, but has money transfer services. Two other legal currency and people who buy and BTC China has taken a further step rebounded to $505 Easter weekend. exchanges, Beijing-based OKCoin and sell it so do at their own risk. toward cash transactions - it unveiled At a trading rate of 10,000 bitcoins Shanghai-based FXBTC, announced on Will the new regulations signal the the country’s first ATM bitcoin machine per hour, China bitcoin trading far ex- their respective websites that they had end of bitcoin in China? Not likely. In in a Shanghai coffee shop. ceeds any other country. However, with received notification from their bank the near future, the exchanges’ activities So … Chinese bitcoin exchanges renewed clampdown on the virtual cur- and processor. OKCoin said it would will no doubt be negatively affected; may be inconvenienced, but definitely rency from the People’s Bank of China stop servicing deposits via prepaid cards but as they have demonstrated after the not beaten! The Chinese exchanges will (PBOC), Chinese bitcoin exchanges while debit cards and yuan withdrawals December PBOC ruling, they probably certainly take a wait-and-see approach are not affected. FXBTC said it would will come up with some creative way(s) are once again bracing themselves for to see how the regulations will be en- stop debit-card deposits as of April 3 and to circumvent the latest restrictions. another blow to their survival. forced before devising different ways to temporarily halt withdrawals by April 6. BTC38’s website says it “will com- Compared with the current decree, bypass them. u PBOC’s December 2013 warning for One would think after the December ply strictly with the central bank’s www.chinainsight.info geopolitics MAY 2014 > PAGE 7

along with Yuan’s decision, the Chinese a deep sense of despair in China, with population as a whole felt humiliated and nationalist feelings running higher than The Twenty-One their frustration showed itself in mini- ever before. movements and an angry press. Seeing Western support for Japan’s seizures from the Chinese press that Japan had of German territories in Shandong Demands only won a Pyrrhic victory in China, and Manchuria served as a primary By Pat Welsh, contributor Japan’s Army Chief Yamagata used motivation for the next great event his political resources to force Foreign of Chinese history – the May Fourth On July 28, 1914, World War I broke future economic development in that Minister Kato to resign in September Incident, which will be in next month, out in Europe, which spread to other region. 1915. Yamagata had hoped for a strong in the wider context of The May Fourth continents soon thereafter. During the 3. Regarding finance: China must first Japanese-Chinese alliance against the Movement. following month Japan’s Prime Minis- come to Japan for all future loans. China West. With The Twenty-One Demands, Sources: (1) Japan’s Imperial Conspiracy by ter Ōkuma Shigenobu directed Foreign also must deliver as collateral for past Yamagata’s anti-Western dreams had David Bergamini, Wiiliam Morrow & Minister Kato Taka-aki to throw Japan’s loans supervisory control of Chinese evaporated. Co. Inc 1971 as reprinted by Pocket lot with Britain and France against the industry. After President Yuan’s death in June Books, a division of Simon and Schus- Central Powers, Germany and Austria- 4. Regarding the European Powers: 1916 and during the peace negotiations ter in New York, 1972. (2) The Political Hungary. The motivation for this lay China must cede no more harbors, is- at Versailles in 1918-1919, Chinese ne- gotiators, with the help of pressure upon History of China, 1842-1928 by Li Qi- not so much with the idea of helping lands or bays to “the barbarian powers.” Japan from the United States and Eu- annong, translated and edited by Deng Britain and France as it was to head 5. As to China’s future: China must rope, were able to recover a substantial Siyu and Jeremy Ingalls, Stanford Uni- off any future objections that Britain employ Japanese advisors for all im- part of the ground that Yuan Shikai had versity Press, Stanford, California, 1956 might have toward advancing Japan’s portant political, financial and military temporarily conceded to Japan. None- (3) The May Fourth Movement, Intel- future activities in China. It was hoped development programs. China also theless, the Japanese seizure of German lectual Revolution in Modern China that Britain would provide diplomatic must purchase more than 50 percent of interests in China remained despite by Chou Zezong, Stanford University interference for a Japanese seizure and her army and naval supplies in Japan. Chinese objections. The attempt to re- Press, Stanford, California, 1959. Also permanent possession of all German Furthermore, China must allow Japan to establish their pre-war colonial policies included are the Twenty-One Demands mandates and leaseholds in the Pacific build and operate a network of railroads at the Paris Peace Conference resulted in themselves. u and in China. in Central China. Hard pressed as Britain was, she re- In effect, these demands, if met, had a fused to give Japan a carte-blanche for serious potential of rendering China into these planned seizures. In October 1914, little more than a puppet state of Japan. Jon Huntsman Japan went ahead anyway. Japanese When Foreign Minister Kato presented Continued from page 1 Imperial Marines took over nominally these demands to President Yuan, he German islands in the western Pacific. advised Yuan to keep them secret – es- At the same time, units of the Japanese pecially the fifth set. Showing some army landed on the Shandong Peninsula, backbone, President Yuan promptly fanned out and mounted a campaign to leaked them to America’s ambassador take over the German-held port city of in Beijing. The result was Kato’s being Qingdao. In the process, they seized the embarrassed by his receipt of diplomatic entire Shandong Peninsula. inquiries from all over the world. Kato In December 1914, China’s Presi- thereupon responded to the Western dent Yuan Shikai diplomatically ad- Powers with a summary of the first four vised Tokyo that since its campaign groups of demands but a denial of the in the Shandong Peninsula had been fifth group. To China, Kato responded completed, Japanese troops should stop with the dispatch of 30,000 troop re- parading themselves across Chinese inforcements for Japan’s continental territory, and that the Japanese forces garrisons. should be restricted to police activi- After President Yuan continued to resist that adapts to the evolving world order, China’s need to focus on the rule of law. ties in the former German leaseholds. these demands, Foreign Minister Kato which continues to be the unwritten part • As for a lesson the U.S. could learn Japan’s reaction to this admonition advised him on May 7, 1915, that the of this story. Consider the fact that the from China, Huntsman stated that there from President Yuan was an expression fifth set could be delayed for future ne- U.S. is surrounded by friendly and good should be respect for teachers. of indignation from Foreign Minister gotiations. Additionally, Kato warned neighbors while China is surrounded by Questions were gathered from the Kato. This was followed up by a note China that if China did not agree to the competitors. Can China transition from audience and presented to him by delivered directly to President Yuan by first four sets of demands in 48 hours, a producing nation to a consuming na- Schwartz. Two of the questions were: Hioki Eki, Japanese Minister to China, Japan would begin an invasion of China. tion? Can confidence be built or should What is the biggest misunderstand- on January 18, 1915, for the purpose of Under this threat, President Yuan gave you invest in Sri Lanka real estate? ing that China has about the U.S? “clarifying the situation.” Suggestive in on May 9, but made it known to all Huntsman also pointed out that Huntsman answered that China feels of intimidation, the papers upon which that he had acted under duress. There there were some geopolitical issues the U.S. wants to contain China and these documents were submitted were exists some speculation that Yuan Shikai that influence a peaceful rise of China, he says that this is absolutely not true. watermarked with images of machine may have used this threat of Japanese which he described as an oxymoron. What would he recommend for guns and dreadnoughts. expansion to try and to obtain Japanese Common ground needed to be found, someone interested in pursuing a diplo- This note, which was accompanied support for his (Yuan’s) own plans to what would bring the U.S., and China matic career? Huntsman complimented by several reference documents, came to establish his monarchical ambitions. together needed to be defined. He felt the 2,000-member staff at the U.S. Em- be known as The Twenty-One Demands. Yu Huiyuan in his “History of China’s that China knows it cannot go to war; it bassy in China as being one of the most These documents explained and clari- Rebirth” [ Zhongguo Zaizaoshi] claimed knows where the red lines are and will dedicated group of civil servants with fied what was to be demanded of China. that Yuan had said that he would com- not cross them. which he has ever served, He stated one The 21 demands have been broken down ply with Japan’s 21 demands if Japan After his formal talk, Huntsman con- needs to be well-trained in all kinds of into five groups: would support a monarchical system in tinued a conversation with Schwartz on disciplines be it in economics, security, 1. Regarding Qingdao: China was to China. As these diplomatic discussions these topics, notably: language or whatever. A career diplo- accept whatever settlement Japan might were held in secret, this speculation can- • The Chinese population is frustrated. mat needs to maximize his/her time and make with Germany. China must also not be verified. What did happen was • The Chinese government needs to build learn a specialty in order to serve in a let Japan build and operate a 200-mile that Japanese Premier Ōkuma later did greater trust and must deliver on its an- diplomatic position. long railroad inland from Qingdao to give an interview that appeared to be ticorruption drive and “clear the decks.” The evenings talk ended with Bob Jinan, thereby cutting the Shandong a lure for Yuan’s cooperation with the • It also appears that the U.S. Congress Griffin presenting Huntsman with token territory strategically into two halves. demands. In this interview, Ōkuma ex- does not have any interest in China now of appreciation. 2. Regarding Manchuria: China must pressed support for Yuan’s ambitions, as and is more concerned about what it can extend the Japanese lease there another such an event would create two closely do TO rather than WITH China. Editor’s note: The China Center plans 99 years. China also must give Japan aligned political systems. • As for human rights, Huntsman to post a video of the breakout. Please veto power and first-option rights in all Even if Yuan’s supporters went suggested human empowerment and check www.chinacenter.umn.edu. u PAGE 8 > MAY 2014 www.chinainsight.info A Passage to China

A Passage to China draws large crowds at Mall of America By Greg Hugh As in years past, the seventh annual Passage to China organized by the Chinese Heri- tage Foundation Friends (CHFF) and China Insight newspaper drew huge crowds at Mall of America over the April 5-6 weekend. In addition to the Rotunda and Sears Court, the event was expanded into the Southeast Court this year. Visitors to Mall of America on April 5-6 immediately noticed something special was taking place as they approached the Rotunda, which was festively decorated with large red lanterns and bamboo floral panels suspended from the soaring ceiling. Framing the entrance to the Rotunda, guests passed through twin gates that were inscribed with the terms “mutual understanding” and “mutual courtesy” written in Chinese and English, setting the tone of the event’s mission: to promote mutual understanding and mutual courtesy between the Chinese community and the greater Twin Cities community. More than 45 participating organizations held interactive activities to promote Chi- nese culture. Children earned a prize by having their (activity) passports stamped for completing the number of age-appropriate activities. At the Rotunda, younger children made paper dragons, lanterns, porcelain necklaces, water paintings and paper cuts. Older children took on the challenge to learn Chinese, spoken and written, or to learn how to use the abacus, or to master the seemingly inexhaustible variations of tangrams or Chinese chess. Since the Chinese invented printing, a new printing activity was added that allowed individuals to experience the printing process by inking a block and then printing it on paper. Depending on skill level, participants were able to produce a simple reproduction or more elaborate piece to take home. There also were cooking demonstra- tions as well as traditional food and tea for purchase. Sears Court featured continuous entertainment throughout both days that included many types of performances by musical and dance groups, lion dances and martial arts. Many of the participating organizations were local schools that look forward to show- casing their students at this annual event. This year also included the Carleton College Singers and Carleton College Music Ensemble led by world-renowned Chinese pipa performer/instructor, Gao Hong. The Southeast Court featured a special China 100 Exhibit by the University of Min- nesota and a display of ethic Chinese clothing arranged by Yin Simpson, chair of the Pas- sage Decorating Committee. An occasional mahjong game/lesson were also presented. Aided by strong mainstream advance media and print coverage, attendees at this year’s event started lining up more than an hour before the Passage gates were opened. Performances in Sears Court literally filled the space to the rafters as audiences lined the upstairs balconies at least two deep. This was also the case in the Rotunda where the jumbotron was utilized to visually project videos of various activities along with slides about Chinese culture, history and geography. According to the organizers, A Passage to China would not be possible without the support and cooperation of the entire Chinese community. “This is an event that brings the community together and put aside any differences they may have about their origins or other loyalties so all could celebrate their Chinese heritage together,” said Pearl Ber- gad, CHFF executive director. It was further noted that Passage would not be possible without the support of Mall of America and the unbelievable support of the many volunteers from all of the organizations and those who assisted the organizers. These volunteers included students, senior citizens and people from many backgrounds and professions. To them, a hearty and sincere “Thanks!” For additional photos and videos of A Passage to China, visit www. ChineseHeritage- Foundation.org or www.chinainsight.info. Editor’s Note: Unless otherwise noted, all photos provided by Jijun He. PAGE 10 > MAY 2014 travel www.chinainsight.info Bazhong – A city of tranquility and beauty By Wu Meiling & Li Zhouxi, China Today, Feb. 27, 2014 In northeastern Sichuan Province, China was known as a land of poetry, diminutive Bazhong City exudes a pas- especially during the Tang Dynasty toral sparkle and tranquility. It makes (618-907), when poetry reached its one wish to blend in with its unique height. Beautiful Bazhong is also a fer- natural environment. A walk through tile land that has nurtured fine poetry. Bazhong, it is said, is like a hazy drizzle Famous Tang poets such as Li Bai and that awakens people’s memories. Wang Bo all cited Bazhong in their The picturesque city, resembling a poems. As early as the pre-Qin period, Monet oil painting, lies inlaid within Bayuge, an ancient folk song with love the southern foothills of the towering as its main theme, was created by the Ba Inscribed steles on Yinling Mountain. and extensive Daba Mountains. Situ- people, becoming an important feature representations of a flourishing period inlaid into the heart of the country. The ated at the center of three large cities of Han-style folk songs and ballads. of Chengdu, Chongqing and Xi’an, in the Tang Dynasty. Of course, this re- Micang Mountains are a transitional splendent view is not without accretions zone linking the Qinling Mountains to Bazhong also sits along the dividing Amazing grottoes from later dynasties. the west and the Daba Mountains to line between south and north China. During the Sui and Tang dynasties “The Mogao Grottoes are the envy of the east. As an east-west arc of moun- Covering 12,000 square kilometers, (581-907), not only trade caravans tra- the city combines both the grandeur the world because they are an accumula- tains, the northern side of the Micang versed the ancient Micang Road in an tion of more than 1,000 years,” stated fa- of northern China and the warmth of Mountains is the Hanzhong Plain, an endless stream, but also itinerant monks. mous Chinese scholar and writer Yu Qi- southern China, with distinctive vistas abundant locale in Shaanxi Province, The picturesque landscape led them uyu. “To appreciate the Mogao Grottoes of mountains and rivers, as well as and the southern side is the Sichuan Ba- to sojourn with no thought of leaving, is not to look at specimens from 1,000 places of historical and cultural allure. sin, known as “the land of abundance.” remaining to produce wall paintings in years ago, but to observe 1,000-year-old It has also been a historical channel for Located in the intersectional zone of the grottoes using local natural minerals living things.” The Bazhong Grottoes cultural exchanges between north and cold and warm currents, the Micang as pigment. Now known as the Bazhong are similar. Moreover, these grottoes south China, witness to the Qin and Han Mountains are rich in unique vegetation, Grottoes, they are the best examples of in the open air have experienced wind dynasties, the Three Kingdoms, and the rare birds and unusual animals, with a painted sculptures from the flourishing and rain over a long history, inspiring Red Army. People here easily sense the forest coverage of more than 95 percent. Tang Dynasty. emotional responses from visitors, many pulse and echoes of history. If the Micang Mountains are a vast and Bazhong enjoys a fine reputation who prostrate themselves in veneration. glorious oil painting of a mountain vista, More than 5,000 years ago the an- as the “hometown of grottoes,” having cient Ba people lived and flourished then Guangwu Mountain is the finish- an extensive spread of numerous rock Magnificent Guangwu Mountain on this land – and the joss-sticks and ing touch. caves. The largest and best preserved Located in northern Sichuan Prov- candles burning within Baling Village Our first impression of Guangwu are the Nankan Grottoes, with 179 ince, Guangwu Mountain derives its Mountain was its vastness and abun- in the high mountains and lofty hills numbered caves and about 2,700 Bud- name from the panorama of clouds and have never been extinguished. The dance, taking us about five hours to dhist statues. Most of the statues are mist curling up throughout the year. 3,000-year-old ancient Micang Road drive along the mountain road from its found on the eastern cliffs of Nankan Lush with dense vegetation, the beauti- extended through the Daba Mountains, base to the very top. If the Huangshan Mountain, including Sakyamuni, the ful peaks, strangely-shaped rock forma- where the Yellow River civilization and Mountains are like a bonsai cherished by Buddhas of the Past, Present and Future, tions, cliffs, valleys, streams, waterfalls Bashu culture intermingled. Although the heavens, then Guangwu Mountain and Maitreya. and natural greenery all merge into a this road has now been abandoned, re- is a great garden favored by the gods. lated historical memories have always Taking about a week for an in-depth lingered among the people. The most tour, many visitors return several times, famous tale about this ancient road to not only see “the tip of the iceberg” recalls the early Western Han Dynasty again and again, but for the different (206 BC - AD 220) prime minister, vistas during the four seasons. Xiao He who pursued and persuaded Many people favor single adjec- the strategist Han Xin to remain, thus tives to describe different mountains, altering the final outcome of the war for example, “elegant” for Mount between the Chu and the Han. Emei, “strange” Zhangjiajie National Ancient villages along the route Forest Park, and “dangerous” Mount also bear witness to the prosperity of Hua; Guangwu Mountain, however, is Bazhong. Bazhong was once an im- noted for its range of peculiar peaks, portant hub for political, economic and bizarre rocks and secluded valleys. If cultural exchange between north and one appreciates the pines on Huangshan south China. Mountains, worships the heavens at From ancient times, Bazhong pos- Taishan Mountain, and prays at Mount sessed strategic consequence, with Jiuhua, what does one do at Guangwu feudal lords vying for dominion. The Ba Mountain? Watch the clouds and mist? people were not only brave and adroit One would love to remain immersed in in battle, but also good at singing and The Nankan Mountain cliff grottoes. the wonderland of cloud and mist all dancing. Ba people assisted in numer- about. But after the clouds melt and the ous ancient wars, including aiding King People recall, “The Yungang Grot- complete whole. mists disperse, the red autumnal leaves Wu to defeat Tyrant Zhou, supporting toes are famous for their grandeur, while The best season to visit Guangwu all over the mountains take your breath Ying Zheng, the first emperor of the the Nankan Grottoes are renowned Mountain is autumn, because the moun- away. Qin Dynasty (221-206 BC) to unify for painted sculptures.” Indeed, while tain is adorned in a fairytale world with If only one word could be used to China, and helping Liu Bang found the walking towards the peak to view the red leaves everywhere. Visitors are describe Guangwu Mountain, we think Western Han Dynasty. This ancient and 200-meter-long cliff, the bright-colored awed by the graceful and gorgeous view it should be “noble,” for its flamboyant mysterious land also gave birth to such statues sat closely side-by-side offer – a masterwork of elegance. scenery and integral history. eminent persons in history as astrono- a magnificent vista. These statues, To appreciate this mountain one The most beautiful view has to mer Zhang Sixun of the Song Dynasty unifying form and spirit, and perfect needs to take a grand and wide point be the blurred and hazy mists arising (960-1279), Wang Jian, first emperor of in texture and scale, are decorated and of view. Guangwu Mountain is the from treetops and merging into the the Former Shu (907-925), and famous painted with natural pigments of green, hinterland of the Micang Mountains. If clouds. Throughout the four seasons, educator Yan Yangchu (1890-1990), red, white and blue. The magnificent you look at the Micang Mountains on a the mountain is covered in cloud and among many others. and splendid grottoes showcase social map of China, they resemble an emerald Continues on next page www.chinainsight.info food MAY 2014 > PAGE 11

Jiaozi) on Lizhi Alley, Ma Hongshu city’s cultural foundation and charm. As (Ma’s Sweet Potato) on Jiaojia Lane and the heart of Sichuan cuisine, Chengdu is A taste of Chengdu Zhang Liangfen (Zhang’s Bean Jelly) in one of the essential hubs of fine cuisines By Zhu Hong, China Today, Feb. 7, 2014 Dongzikou. in China, and lives up to the reputation Small restaurants also play an im- of “go for food in China, go for taste in portant role in promoting Chengdu Sichuan.” Chengdu has been a city of food. These restaurants, often around originality and innovation throughout 10 square meters in size, look nonde- history. It holds dozens of “firsts” in script, sometimes even a little shabby. China and the world including the first Rather than putting out advertisements Chinese winery, the first tea culture to promote their food, they build their center and the first cuisine museum. popularity on word of mouth. They pro- Chengdu’s food culture speaks for its vide customers with authentic Chengdu spirit of originality. flavor and use decent ingredients but The spirit of innovation in Chengdu’s charge low prices. For example, there food culture is rooted in local people’s is a small place called Hou’s Maocai deep love for food. In Chengdu, or- in the center of Chengdu that only sells dinary householders, men and women boiled and steamed vegetables at low alike, love to share their thoughts about prices. You can feed yourself well on new cuisine, bouncing ideas around as a tiny budget while enjoying a peaceful if they were professional cooks. Each and happy mood under the sycamore family has its signature dishes such as bouilli and steamed pork with rice flour. trees outside. Some recipes are handed down from As the saying goes, “Good wine their forefathers and have evolved over needs no bush.” There is a small, shabby generations. restaurant in a suburb outside Chengdu Chengdu people’s love for food is Chengdu Hotpot. that has been a stop for many tourists for fervent. People who live in the “food more than 60 years. There are only three Benefiting from the Dujiangyan Ir- in the bowl. This demands of the cook capital” have the palates of natural gour- items on the menu – RMB 2.5 beef offal rigation System that was constructed exemplary chopping skills. mets. It is more than common to hear in 256 BC, Sichuan Province is re- Chengdu cuisine has a wide range soup, RMB 1 rice flour-coated steamed them talking about which restaurant is puted as “Tian Fu Zhi Guo,” a place of choice when it comes to cooking beef and RMB 1 guokui (large, round, the best, where and how good a new richly endowed with natural resources. ingredients. The color, smell, taste and baked wheat cake). It is located near restaurant is, or “hey, I came up with Chengdu, the capital, is extremely pro- shape of a certain ingredient all matter an ancient site and is only two square something new in my kitchen today!” ductive, providing its people with cozy in cooking, but most of all the taste. meters big. Yet the owner has worked for Ms. Fuchsia Dunlop’s love for and relaxing lives. The first impression of Chengdu food more than 60 years on this one project. Chengdu cuisine started with mapo tofu Chengdu people are known for their might be that of oil, chili, pepper – and He uses only fresh beef to make the when she first visited the city in 1993. love of life. They know just how to relax a sweaty brow afterward! However, dishes and sticks to the traditional food Then she began to learn to cook Sichuan and have fun. And they know better than authentic Chengdu food relies not only culture of his home. This makes his cuisine and speak Sichuanese Mandarin. anyone how to transform raw ingredi- on the heat of chili and pepper but the little place a must for anyone who comes Now she comes to Chengdu at least once ents into irresistibly delicious cuisine, combination and balance of a fresh, to Chengdu for a dining experience. a year and has written two books about the renowned Chengdu fare. UNESCO mellow taste sprinkled with Sichuan Sichuan cuisine – “Shark’s Fin” and (United Nations Educational, Scientific, flavor. Its flavoring is complex as well Passion for food “Sichuan Pepper and Sichuan Cook- and Cultural Organization) has officially as hot. If you go to a Cantonese restau- With the increasing popularity of ery.” “It is fascinating how Chengdu recognized Chengdu as a “City of Gas- rant, you can expect to find only three Chinese food culture around the world, cuisine has such abundant ingredients tronomy.” This accolade is awarded for kinds of fish dish – boiled, steamed and Chengdu has gained reputation for its and flavors,” said Ms. Dunlop, “I am a city’s rich food culture and customs, fried. But at a Chengdu restaurant, you important role in the Chinese treasury of fascinated with Chinese food culture and Chengdu is the first Asian city ever would have more than 10 flavor options cooking techniques. The food culture of and the people’s dietetic life-nourishing to receive such an honor. for one cuisine: hot and spicy, salt and Chengdu makes up a major part of the ideas.” u pepper, lychee, you name it. For this 100 dishes, 100 flavors reason Chengdu cuisine is famous for Continued from page 10 Sichuan cuisine has a long history the unique flavor of every single dish. Bazhong dating back to the Qin Dynasty (221-206 BC) and is known as one of the four ma- Neighborhood restaurants – the jor Chinese cuisines. As the capital city soul of Chengdu cooking of Sichuan Province, Chengdu has an It is said that neighborhood res- extensive food culture. During the Han taurants scattered in the back alleys Dynasty (206 BC-AD 220), Chengdu of Chengdu played a vital part in the was the business center of southwest evaluation of UNESCO’s “City of Gas- China. The city was filled with taverns tronomy” award. and restaurants. Pictures on bricks un- Hidden in the streets and lanes of earthed in Chengdu’s suburbs show how the city, snack bars emit savory aromas. people in the past enjoyed feasts and And you can find such snacks almost made wine. They depict a mature food anywhere. Vendors and peddlers carry- culture in which the pairing of ingredi- ing loads or buckets set up all over the ents and nutritional balance were crucial place, come rain or shine. Every day, and music was essential for creating a from dawn till dusk, the bustle of hawk- suitable ambience. ers and the aromatic flavors of this street The Nankan Mountain cliff grottoes. The long and profound history of food entice passersby to stop and try. Chengdu cuisine denotes a high level The street chefs’ trade has developed mist: sometimes resembling a delicate on fire. And in cold winter, the mountain of culinary skills. Take the famous over the years. At first, they would sell fairy wandering about at leisure, or wide and trees of ice and snow resemble a boiled cabbage dish for example. What homemade traditional food. As their sleeves entwining the mountainsides, at world of jade and silver. Nevertheless, seems to be plain boiling water in this businesses grew bigger, they would ex- other times like wrapping paper fully there is one difference from other moun- dish is actually broth from dozens of pand their operation and open up small swaddling the summit, or a coy maid tains, especially in the spring: flowers on chickens and ducks. Another example restaurants named after themselves or veiling half of the peak in jest. the mountain do not bloom in profusion, is the mixed stew of shredded pork, pork the name of the street where the restau- As with other mountains, sceneries but blossom gradually based on differ- tripe, chicken, bamboo shoots, sea cu- rant was located. The most renowned change with each season. In spring, ent altitudes. Often, when flowers at the cumber and tofu. All these ingredients snack bars in Chengdu include Lai Tang- mountain flowers are in full bloom, and foot are in full blossom, flowers at the are chopped into threads a little thicker yuan (Lai’s Glutinous Rice Ball) on in summer the trees offer pleasant shade. top are just in bud. u than human hair and arranged neatly Zongfu Street, Zhong Shuijiao (Zhong’s Late autumn features bright leaves as if PAGE 12 > MAY 2014 government www.chinainsight.info China: A new approach for efficient, inclusive, sustainable urbanization

Research Center. “Good management value can encourage land-intensive in- of urbanization is essential to unleash dustries to move to smaller, secondary the potential of cities to improve ef- cities. Cities can also make better use of ficiency and promote innovation. The existing urban land through flexible zon- key is to ensure good governance at the ing, with smaller plots and more mixed city level, while meeting the challenge land use, which would lead to denser to strengthen urban environmental pro- and more efficient urban development. tection and control pollution. It is vital Linking transport infrastructure with to develop institutional mechanisms urban centers and promoting coordi- for efficient, inclusive and sustainable nation among cities would encourage urbanization.” better management of congestion and pollution. The report includes six priority 5. Managing environmental pres- areas for a new model of urban- sures. China already has tough environ- ization: mental laws, regulations and standards, 1.Reforming land management and so the most important task for achieving institutions. Because most of the ur- greener urbanization is enforcement. ban expansion in recent years was on Market-based tools, such as taxes and converted rural land, the report says trading systems for carbon, air and BEIJING, March 25, 2014 – A new of the fiscal and tax system as well as currently the amount of farmland avail- water pollution, and energy, can also report recommends that China curb investment and financing mechanisms, able is close to the “red line” of 120 be used more to meet environmental rapid urban sprawl by reforming land promote the application of the public- million hectares, which is considered targets. China needs to focus on “green requisition, give migrants urban resi- private partnership (PPP) model, to help to be the minimum necessary to ensure governance” by improving institutions, dency and equal access to basic public build a diverse and sustainable urban food security. as well as the incentives and instru- services, and reform local finances by financing mechanism. We need to gradu- More efficient use of land will ments that enable better environmental finding stable revenues and by allowing ally address the issue of basic public require stronger property rights for management. local governments to borrow directly services for rural migrants, and create a farmers, higher compensation for 6. Improving local governance. The within strict central rules. mechanism to link the financial payment land requisition, new mechanisms for performance evaluation system of lo- As China’s people are increasingly system for rural migrants transferring converting rural construction land to cal officials could be adjusted to give concentrated in cities, with 200 million to urban areas, in order to achieve the urban uses, and market-driven pricing greater incentives for a more efficient, more urban dwellers than a decade ago, goals for people centered urbanization.” for urban land allocation. Legal limits inclusive and sustainable urbanization the government needs to strengthen the In the last 30 years, China’s record should be set up on rural land taken for process. Local governments can also enforcement of environmental legisla- economic growth lifted half a billion public purposes by local governments. improve their financial management tion and reduce the number of pollution- people out of poverty, with rapid ur- The report also recommends market- and transparency with tools such as a related health problems, according to banization providing abundant labor, based pricing for industrial land and medium-term expenditure framework the joint report by the World Bank and cheap land and good infrastructure. shifting the zoning of industrial land to and the full disclosure of financial ac- the Development Research Center of While China has avoided some of the commercial and residential use. This counts. China’s State Council. common ills of urbanization, strains are would encourage the development of the “China, in the overall process of The report was prepared over the showing as inefficient land development services industry and provide a stronger deepening reforms, needs to draw on last 14 months and the interim reports leads to urban sprawl and ghost towns, economic base for smaller cities and the useful experience of other countries. were shared on a continuous basis with pollution threatens people’s health, lower housing costs. Our cooperation with the World Bank China’s top policymakers as input to and farmland and water resources are 2. Reforming the hukou household- Group not only provides China with rec- the government’s policy discussions on becoming scarce. With China’s urban registration system to provide equal ommendations for its reform agenda, by urbanization, providing an important population projected to rise to about one access to quality services for all drawing on the Bank’s rich knowledge basis for the formulation of policies on billion – or close to 70 percent of the citizens and create a more mobile resources and global development best China’s new model of urbanization. country’s population – by 2030, China’s and versatile labor force. The hukou practices, but it also allows for a plat- “The reform agenda the report pres- leaders are seeking a more coordinated system needs to evolve into a residency form to contribute to the sharing of de- ents would boost revenue for farmers urbanization process. system providing a minimum standard velopment experiences between China in land sales, provide more services for “More than any other country in the of public service to all residents. It and other countries,” said Shi Yaobin, migrants and encourage more respon- world, China has made huge progress in should remove barriers to labor mobil- Chinese Vice Minister of Finance. sible financing by local governments. ending extreme poverty. It now has an ity from rural to urban areas, as well as “Our close cooperation with the It would also mean greener urban opportunity to make further gains by im- between cities, to help boost workers’ Development Research Center on this planning, and stronger environmental proving the lives of the hundreds of mil- wages. report has allowed us to combine our management so everyone can breathe lions residents moving into its cities,” 3. Placing urban finances on a more global knowledge on urbanization with easier,” said Jim Yong Kim, World Bank said Sri Mulyani Indrawati, Managing sustainable footing, while creating in-depth understanding of China’s poli- Group President. “China has already Director and Chief Operating Officer of financial discipline for local govern- cy challenges and provide policy advice made big progress with experiments at the World Bank Group. “If China stays ments. The report recommends moving in real time,” said Klaus Rohland, World the local level that can be expanded on committed and implements the neces- to a revenue system that would ensure Bank Country Director for China. u a huge scale.” sary reforms, it could become a global a higher portion of local expenditures “Urbanization is a powerful engine model on urbanization, while winning is financed by local revenues, such as for China’s sustained and healthy eco- the war on pollution, sustaining high property taxes and higher charges for Read nomic growth,” said Lou Jiwei, Chinese growth rates for its economy, making urban services. Local governments, Minister of Finance. “It is necessary to cities more livable and allowing more the report says, should be allowed to ChinaInsight put people at the core of urbanization, people to benefit from development.” borrow directly, but within strict central supported by institutional and systemic “Managing urbanization is funda- government rules. online innovation, and unleash the develop- mental for China to achieve its goal to 4. Reforming urban planning and www.chinainsight.info ment potential of urbanization through become a high-income country,” said Li design. In cities, basing the government reform. We need to accelerate reform Wei, Director of China’s Development prices for industrial land on market www.chinainsight.info business MAY 2014 > PAGE 13 Economic transformation through industrial restructuring By Li Yuan, China today, March 2014 ON the morning of November 24, ers Think: The Inside Story of China’s to promote the healthy development Steel and Iron Energy Conservation 2013, the Hebei provincial government 30-Year Reform and What It Means for of strategic emerging industries and and Emission Reduction Forum held took action to demolish 10 shaft fur- the Future of the World, maintains that advanced manufacture industries, and in 2013, Liu Bingjiang, member of the naces and 16 converters at eight steel China has no choice but to transform its to accelerate the transformation and National Committee of the CPPCC and and iron plants in Tangshan, Handan economic growth mode, as it is the only upgrade of traditional industries. This vice director of the Department of Total and Chengde, reducing the overcapacity way for the country to sustain economic latter is particularly significant today, as Pollutants Control of China’s Ministry of iron production by 4.56 million tons development, improve people’s liveli- it has become apparent that the Chinese of Environmental Protection, said that and steel production by 6.8 million tons. hood, achieve trade balance, save energy economy can achieve sustained devel- in order to prevent the recurrence of Prior to this, by the end of October 2013, and protect the environment. opment only through transformation and large-scale smog, the focus of energy the province had cut down on steel and China’s 12th five-year plan (2011- upgrading. conservation and emission reduction of iron overcapacity by 2.38 million tons. 2015) on national economic and social “The key to realizing quality, effi- the 12th Five-year Plan period would be Steel and iron has long been a pillar development, approved at the Fifth cient and sustainable economic devel- on the steel and iron industry. Many ex- industry for the Chinese economy; how- Plenary Session of the 17th CPC Cen- opment is to deepen strategic industrial perts also suggest that while setting the ever, it has become common practice to tral Committee, explicitly states that restructuring, with the focus on reform- entry thresholds for this industry, more cut down overcapacity of the industry. fast-tracking transformation of the ing and upgrading traditional industries. thought should also be given to factors The government work report released nation’s economic growth pattern is a Overcapacity has become a stumbling relating to environmental protection, at the First Session of the 12th National main channel for China’s development block to our economic development. It such as energy saving and emission re- People’s Congress explicitly stated that in the coming five years. The core of is time to take action,” said Li Yizhong, duction, rather than to economic indexes efforts should be made to promote the economic growth pattern transformation member of the National Committee of such as production capacity and volume. transformation of the nation’s economic lies in three aspects: Firstly, demand the Chinese People’s Political Consulta- Hebei Province’s steel and iron out- growth mode and accelerate industrial structure. Economic growth should tive Conference (CPPCC) and former put has ranked first in the country for restructuring. Structural adjustment to depend on consumption, investment Minister of Industry and Information 12 consecutive years. On November the steel and iron industry now epito- and export rather than just on invest- Technology. According to statistics, 24, 2013, a blare marked the start of the mizes China’s wider economic trans- ment and export. Secondly, industrial province’s move to cut its 6.8 million formation. structure. Economic growth should be tons of overcapacity as the shaft furnace boosted by the coordinated development of Tangshan Xingye Industry and Trade Upgrading Chinese economy of primary, secondary and tertiary indus- Co., Ltd was demolished. “Of course, Since reform and opening-up, Chi- tries rather than mainly by secondary eliminating ‘high energy consumption’ na’s GDP has seen an average annual industry. Finally, input of multiple fac- and ‘high pollution’ capacity is like growth of 9.8 percent, with the eco- tors. Economic growth should depend cutting our own flesh. It will hurt and nomic aggregate expanding more than on scientific advancement, high quality even damage our ‘sinews’ or ‘bones’; 24-fold. In the past six years, China labor and innovated management rather however, it is also like removing toxins has contributed as much as 33 percent than mainly on consumption of material to cure illness. Only by cutting down to the world’s economic growth, creat- resources. overcapacity can we emancipate ad- ing a “China miracle” that continues to When he assumed office in 2013, vanced production capacity. Therefore, astound the world. Chinese Premier Li Keqiang empha- The demolition on May 2, 2012, of an we should organically combine ac- Alongside the stable and relatively sized that the Chinese government obsolete cement shaft kiln in Xiji Town, ceptance, transference, integration and fast development of China’s economy, would strive to promote sustained Zaozhuang City, Shandong Province elimination and enhance the surveil- its ranking in world economy has con- economic growth. “There are many lance and prediction of overcapacity of tinued to climb; however, problems problems facing China because it is such China’s industrial capacity utilization different industries to make adjustment entailed in the imbalance, incoordina- a large country, but the priority is still rate in the first half of 2013 was at its plans according to different practical tion and unsustainability of its economic sustaining economic development. If we lowest since the fourth quarter of 2009. conditions,” said Yang Jing, president development have become increasingly want to achieve the goal set for 2020, What is worrisome is not only the dif- of the Chinese Academy of Governance. obvious. The outbreak of the global we must realize an estimated average ficulty in completely eliminating over- financial crisis made the central au- annual growth of 7.5 percent. That will capacity, but also the fact that certain Ways to transform and upgrade thorities aware that continuing along not be easy. But we have the advantage industries are still knowingly creating At the outset of 2014, the Chinese an economic growth path that relied on of strong domestic demand. So the key overcapacity. Take the steel and iron government stipulated in its open external demand, lacked innovation and is to promote transformation of our industry as an example. Statistics from files that the industrial restructuring, featured high input and low output was economic growth pattern and form a the China Iron and Steel Association transformation and upgrading would no longer an option. The need for China new driving force with the combination show that from January to November be sped up this year. At the same time, to transform its economic growth mode of dividends of reform, the potential 2013, China produced a total of 710 the focus of the next step is on making has become more pressing. of domestic demand and innovative million tons of crude steel, a year-on- industrial development more coordi- Robert Lawrence Kuhn, China ex- activities to build an upgraded Chinese year increase of 7.8 percent. A report nated, reconstructing and upgrading the pert and author of How China’s Lead- economy,” said Premier Li. released by the China Metallurgical In- manufacturing industry, and propelling Against the backdrop of the global dustry Planning and Research Institute development of the service industry. economic recession, the world is seek- forecast that China’s total crude steel “Rather than abandoning tradi- ing to glean more opportunities from production in 2013 would hit 780 mil- tional industries, economic transfor- the development of the world’s sec- lion tons, while its consumption would mation aims at innovation. There are ond largest economy – China. French be about 690 million tons, representing no declining traditional industries, but Ambassador to China Sylvie Bermann an overcapacity of nearly 100 million rather declining industrial traditions,” Li said that the measures adopted by the tons. China’s iron and steel industry is Yizhong stated. He believes that China’s Chinese government meet the needs of suffering medium to serious overcapac- economic development has entered the a world in plight. The upgraded Chinese ity and what is more, this is predictable. phase of significant industrial, tech- economy is of great significance to the He Daping, deputy to the National nological, organizational and market world’s interests, Bermann said. People’s Congress and vice chairman restructuring. of the board and secretary of the Party Wang Chang, deputy to the National Eliminating overcapacity Committee of Jiangsu Shagang Group’s People’s Congress and head of the In- The Decision on Major Issues Con- Huaigang Special Steel Co., Ltd, sug- dustry and Information Technology cerning Comprehensively Deepening gested a solution to the problem of Department of Hebei Province, also Reforms that was approved at the Third overcapacity, namely, to eliminate ca- pointed out that a large part of emerg- Plenary Session of the 18th CPC Central pacity that can’t meet the requirements ing industries springs from traditional Committee explicitly states that China of technology, energy consumption and industries. Many have undergone tech- A textile mill equipped with state-of-the-art must build on the paramount reality that environmental protection. nological innovation and transformation machinery (upper) that was constructed it is in the primary stage of socialism Recently, the severity of smog in to upgrade to new industries. on the site of a small brick and tile factory and will long remain so while compre- China’s cities has enhanced decision- At present, iron and steel enterprises (lower) in Linchi Town, Zouping County, hensively deepening reforms. In light makers’ resolve to accelerate the elimi- Shandong Province. of the Decision, efforts should be made nation of overcapacity. At the 4th China Continues on page 15 PAGE 14 > MAY 2014 education www.chinainsight.info Cool for school China’s growing study abroad market By Li Yuan, China today market in China developed quickly. investing in an expensive year or two develop without talented individuals that As of March of 2012, total visits made of foreign study. have an internationalist world outlook. abroad for study purposes amounted to Every year, Aoji helps thousands It needs more professionals who have 2.3 million person-times, ranking China of Chinese students gain admission received international education that are as the largest source country of overseas to overseas tertiary institutions. The able to understand and adapt to interna- students in the world. choices the company offers in terms of tional cultural differences and associate In order to help more students enter location, university and program have freely with international colleagues. foreign universities, a large number of expanded from a few hot destinations Among all requirements of China’s study abroad agencies have emerged. and “in-vogue” majors to almost any younger generations, study abroad is a Li Ping has gradually expanded his area of study. strong advantage. Today Aoji is an influential player in China’s company’s business to cover more Li maintains that the aim of studying study abroad market, its services covering prestigious universities and colleges in Not just the wealthy abroad is never just to gain a foreign language training, preparatory courses, Australia, Europe and America. Today, “I like what I am doing and that’s diploma, but rather to lay down concrete international summer programs and im- Aoji is an influential player in China’s why I haven’t switched professions,” foundations for future career develop- migration services study abroad market. Li said. “Although it is not a massively ment. “Successfully gaining admission to Li’s memory of his study abroad profitably business, there is meaning in a foreign university is just the beginning; OVER the last decade, the number of experience is still fresh. “In 1985, helping Chinese students from normal the most important thing once you’re Chinese studying abroad has ballooned. when the Internet was not yet the phe- families get a great education.” actually in the country is to gain tangible Besides providing an economic boost nomenon it is today, students usually For a long time in China, studying skills and learn from the experience of to the host countries, returned Chinese learned about countries and institutions abroad was considered a privilege of being abroad,” Li said. students from overseas are benefiting from the students who had gone before the elite class. Since 1985, the Chinese Aoji Education Group has set up many their own country with newly gained them. Returned students brought back government has been encouraging overseas branches to help students with knowledge, skills and experience. a limited amount of information about students to study abroad at their own any problems they encounter once they’re Australia was the first country open- the universities they attended. Students expense. Student numbers were slow abroad. If Aoji places the student, the ing to Chinese students on a large scale. wanting to study abroad would simply to pick up, probably due to the costs service is totally free. “Sometimes, it’s Li Ping, CEO of Aoji Education Group, write an application letter and post it to involved. But as China has become the small issues that can lead to big prob- was an early trailblazer and headed to the university they decided on. It was richer, the number of average families lems later down the track,” Li said on the the country in 1985 for self-funded considered very lucky to get an offer making the investment in overseas importance of the overseas help service. study. In the following years, as Li went from any university at all. Obtaining study for their children has shot up. Globalized Education, Local Chal- from student to CEO of a study abroad visa approval was also an issue. This The appreciation of the RMB has lenges service agency, he bore witness to great process, which relied on second-hand been a significant factor in the rising Industry insiders are confident the changes in the study abroad market in knowledge and hearsay, meant students popularity of studying abroad. As popularity of overseas study will continue China. had a very limited understanding of the value of the RMB has risen over to grow in China. Estimates project that In the late 1980s and early 1990s, foreign universities,” Li said. the last decade, the cost of study- the number of annual visits should reach a few thousand Chinese students went Nowadays the situation is differ- ing overseas has fallen dramatically. 1.1 million by 2017. abroad for study each year. Most re- ent. The Internet and other information Other factors that have spurred more The industry has not grown without ceived government funding. One of tools make it easy for Chinese students self-funded study abroad applications controversy, however. The average age very few self-funded students, Li Ping to learn about universities and colleges include rising incomes and the cultural of Chinese students studying overseas studied in Australia for two years. It was around the world. Educational consul- importance Chinese families attach to has fallen. Many fret that a student sent during his time “down under” that he tancy services and study abroad agen- education. abroad too young will fail to develop a came up with the idea of starting a busi- cies are also available should potential China’s Overseas Study Devel- sufficient understanding of his or her own ness serving Chinese students studying students wish to seek out professional opment Report (2012) shows that culture. The prevalence of fake diplomas overseas. advice. from 2000 to 2011 the total number has also become an issue, as has the in- Today Aoji is an influential player Moreover, many universities have of Chinese students who had studied creasing difficulty returned students face in China’s study abroad market, its launched Chinese versions of their overseas reached 1.91 million, among in finding jobs. services covering language training, websites. Some have even established whom 91.3 percent, or 1.75 million, According to statistics from the U.S. preparatory courses, international sum- offices in China to ease the application studied at their own expense. The pro- Department of Homeland Security, only mer programs and immigration services. process. Various international education portion of self-funded students from 65 Chinese students holding private “At the time I noticed that many exhibitions also provide a platform for working-class families rose from two passports were enrolled in American high Chinese students didn’t know what to do schools and students to communicate percent to 34 percent. schools during the 2005-2006 academic to transfer to another school, if their visa directly with each other. According to Li Ping, the increas- year. By 2010-2011, the number reached expired or if they were sick or in an ac- For example, at the Aoji 2012 Fall ing number of students from working- 6,725, a 100-fold increase. cident. Because of the language barrier International Education Fair, Carnegie class families is due to foreign uni- Though Chinese educators worry about the falling average age of overseas and other issues, many students would Mellon University made it possible for versities’ providing scholarships and Chinese students, Li Ping maintains that find themselves needing help dealing admissions officers to interview attend- high quality programs designed for concerns are overblown. “We should with the unfamiliarity and difficulties of ing students, rather than conducting those with limited means. There are never judge if a child is ready for overseas overseas life,” said Li. After graduating interviews on the telephone or by Skype. greater “budget” study abroad options study based on his or her age. If the child in 1988, Li put his idea into action. He’s The French Culture Center in China also than ever before. Examples include has a solid foundation in Chinese and a been in the business for over 20 years. had a booth at the fair. One representa- community colleges in the U.S. where foreign language and is able to adapt to The U.K. and U.S. opened to Chi- tive, responsible for promoting French annual expenses amount to no more new environments, that’s plenty enough. nese students on a larger scale in 2001 study programs, told China Today that than RMB 150,000. We shouldn’t be the ones to admonish and 2006 respectively. As the financial some French universities have begun The Chinese government has also parents for trying to better their son or crisis swept the world in 2008, an in- adding English-language programs to launched a scholarship program for daughter’s education.” creasing number of developed countries self-funded students to reduce their their syllabuses specifically to attract In order to help younger – usually have opened their doors to students from Chinese students. economic burden. Many banks and mid-teen – students better understand the the world’s most populous country. With greater access to information, foreign embassies in China also co- language, culture and course programs of They have developed their education Chinese students are more rational operate to provide students with loans the country to which they are heading, sectors to cater to greater numbers of and pragmatic in their study abroad and other funding opportunities. many schools in China have launched international, and particularly Chinese, decisions. Up until the turn of the mil- The government is keen to see “international classes,” which teach students, who generally pay higher fees lennium, many were satisfied just to greater numbers of Chinese students at Advanced Placement (AP) programs or than domestic students. This has given have the opportunity to study abroad. top international institutions. It knows A-level subjects. Li says that in his ex- a boost to many countries’ economic Career benefits, it was assumed, would the upcoming generation of Chinese perience they are generally effective in growth prospects. The situation is mu- follow. Since then, as a great number business and scientific leaders will helping young students prepare for their tually beneficial – these days, more and of students have started heading over- need an internationalist outlook to overseas study. more Chinese students want to study seas, many have begun to think more ensure the country is competitive as Another problem associated with the abroad. carefully about their objectives, choice the 21st century progresses. From 2001 to 2011 the study abroad of program and career prospects after In a globalized world, China can’t Continues on next page www.chinainsight.info education, business MAY 2014 > PAGE 15 Character study UCBC May meeting By Whitney Clark Navigating chaos: effectively engaging 行 xíng or háng ambiguity and paradox in the Chinese The character 行, when pronounced xíng, typically refers to something passing marketplace through; sometimes in a literal sense, sometimes in a figurative sense. When Wednesday, May 7 pronounced háng, it is typically used in reference to something business-related. 7:30 - 9:30 a.m. Radical Pinyin Meaning University of St Thomas 彳 chì Small step with left foot Minneapolis campus 亍 chù Small step with right foot Room MOH 201

Although this is a very simple looking character, it can be used in a multitude of This half-hour seminar will discuss a ways. As you can see from the character breakdown above, its primary purpose is high-level framework for understanding related to movement of some sort. For example: the interpersonal dynamics that govern typical interactions with the Chinese. 我们晚上吃中餐行不行？Wǒ men wǎn shàng chī zhōng cān xíng bù xíng? The focus will be on ways in which busi- Can we eat Chinese food tonight? (i.e., can we move forward with this plan?) nesses and business people can use this 行！OK! framework to improve productivity and 我想去泰国旅行。Wǒ xiǎng qù tài guó lǚ xíng reduce opportunity costs when engaging I would like to go visit (旅行lǚ xíng) Thailand. the Chinese marketplace. Presenter is Dr. Peter J. Stark, who is When pronounced as háng, the character 行 usually means business or industry. recognized internationally as a passion- 你毕业之后，想在什么行业工作？Nǐ bǐ yè zhī hòu, xiǎng zài shén me hang ate and engaging educator as well as a yè gong zuò? culturally sensitive, insightful and ac- After you graduate, what industry do you want to work in? complished strategist/”change master” Dr. Peter J. Stark of cross-cultural leadership and change Phrases with 行 include: with specific expertise in cross-cultural organizational effectiveness/culture in Visiting Professorships at both the Phrase Pinyin Meaning change initiatives and cross-cultural Helsinki School of Economics and the leadership. Honored as “Professor of the Berlin Institute of Management. 人行道 rén xíng dào crosswalk Year” in 2007 at the University of Min- Please bring brochures and informa- 行为 xíng wéi action; behavior nesota, he currently teaches strategy, tion to share on the member table during 银行 yín háng bank leadership, organization behavior and our meeting! Email ucbcgroup@gmail. 行业 háng yè industry global business in Augsburg College’s com to register. u In everyday colloquial Mandarin, 行 xíng is frequently used to simply mean MBA program as well as in the areas “OK,” as in agreeing to a request. As stated earlier, the written simplicity of this character belies its myriad uses and functions. For Mandarin learners, it is an ex- Economic transformation cellent character to learn because it will allow them to decipher the meanings of other unknown words by understanding the basic function of 行. Continued from page 13 Clark began studying Mandarin at Breck School 20 years ago and is still interested in Hebei are undergoing a positive trans- one such example. In addition, the first- in it. He eventually spent five years in Sichuan enjoying the subtropical climate and formation. Some extend the industrial phase construction of Wanjia Trade and culinary expertise of the locals. He is now back in Minnesota and teaching Mandarin chain to consume their productivity lo- Logistics Park in Qian’an and Wanli to the next generation of interested learners. u cally. Others make use of mines in other Shopping Center in Tangshan has been places or venture into the equipment completed and put into use. manufacturing industry. More impor- “The labor-intensive service indus- tantly, the enterprises now pay more try is able to create more job opportuni- attention to upgrading technologies and Cool for school ties that better integrate the low-income Continued from page 14 products as well as innovations so as to raise added value and reduce resource population into a region’s economic consumption. development and could also stimulate rising popularity of studying abroad is buy the service once. It’s the industry’s “Today, steel and iron is the leading domestic demand,” Wang Chang said. the emergence of companies that fake responsibility to ensure that a student’s industry of Hebei, followed by equip- Industrial upgrading and economic application materials for prospective study abroad experience – which may be ment manufacturing and petrochemi- transformation must be supported by students. his or her only such experience in their cals. By the end of the 13th Five-year deepening reform and optimizing the Demand for fake application materi- life – is a good one,” Li said. Plan period, the equipment manufactur- external environment. The Chinese als comes from Chinese students’ – and The world financial crisis of 2008 ing industry is expected to be elevated government has lowered its GDP growth usually, their parents’ – fixation on had far greater impact on developed to the province’s pillar industry. In the target to 7.5 percent in recent years to attending only top-flight universities. countries than on China. But one pecu- future, industries involving electronic enhance the effect of economic devel- Generally “fakes” are spotted. But even liar effect of the economic fallout was information, biological medicine and if they are not, students who gain admis- that large numbers of Chinese students opment and send a message to “seek new energy will be greatly encouraged improvement in stability” to Chinese sion to the most competitive institutions abroad chose to head straight back to as well,” Wang Chang said. enterprises that are faced with indus- under false premises are wasting their China after finishing their programs, On top of that, development of the trial transformation and upgrading. time. They are probably not cut out for rather than stay on in their host coun- service industry is encouraged to fa- the course, and will struggle to pass. tries to join the local workforce. As a cilitate economic transformation and According to Zhang Qingwei, deputy “They’re wasting their own time and result, fresh graduates with overseas upgrading. Among 200 major projects to the National People’s Congress and their parents’ money,” Li said. experience have found it increasingly launched in Tangshan in 2013, 95 were Hebei provincial governor, realizing The market is coming of age slowly. difficult to secure work in China. Many industrial projects, 71 were modern an upgraded economy in the province There is a growing understanding that have started to question the value of service projects, 15 were modern agri- requires a sacrifice in economic growth it’s more important to choose the right study abroad. cultural projects and 19 involved infra- rate. university for the potential applicant, Li, for his part, is still convinced of structure and basic energy resources. Li Yizhong stated, “China is now rather than the most prestigious uni- the value of study abroad. “There are Ventures in modern service and modern versity to which the student can gain still so many experiences to gain from closer than ever to reaching its goal acceptance. going abroad. You learn about a foreign agriculture accounted for 43 percent of great rejuvenation. It is important “The study abroad service industry culture and a different set of values. of major projects. In the meantime, to seize strategic opportunities, seek is unlike other industries. We’re selling You become independent. It’s never just continued constructions are under way. new sources of growth and accelerate a product, but, most of the time, the about getting a diploma.” u Luanzhou ancient town cultural and industrial upgrading to finally achieve ‘customer,’ i.e. the student, will only tourism project in Luanxian County is economic transformation.” u PAGE 16 > MAY 2014 event www.chinainsight.info

Meda 43rd Annual Recognition Luncheon

Help Celebrate! Minnesota’s successful entrepreneurs of color - and their contributions to a diverse economy & Honoring the Leadership of Yvonne Cheung Ho

Wednesday, June 4, 2014 PRESENTING SPONSOR 11:00 a.m. - 1:00 p.m. Hilton - Minneapolis 1001 Marquette Avenue South, Minneapolis, MN 55403

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