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why china has money to invest in other countries, but…(1)

recently, a question in quora spurred a heated discussion. that is, if china has so much money to invest in other countries, why don’t they develop the poor parts of china?

why china has money to invest in other countries, but...(1)

 

a ph.d. in the university of cambridge called janus dongye qimeng replied this question, which got 100k views. 

 

check! here is his answer. (excerpts)

 

for the complete answer, please click why china has money to invest in other countries, but...(1)

https://www.quora.com/if-china-has-so-much-money-to-invest-in-other-countries-why-dont-they-develop-the-poor-parts-of-china

 

why china has money to invest in other countries, but...(1)

 

which poor part of china do you refer to? can you give just one specific example that china has failed or ignored to develop?

 

why china has money to invest in other countries, but...(1)

 

if you are not convinced, let us just look at the situations from the poorest part of china. here are the last four provinces with the least gdp per capita (nominal) in china: list of chinese administrative divisions by gdp per capita – wikipedia:

 

gansu province ($4735, 26 million people)

yunnan province ($5612, 48 million people)

guizhou province ($6233, 36 million people)

guangxi province ($6270, 49 million people)

just for reference: india ($2036), vietnam ($2551), mongolia ($4026), albania ($5289), south africa ($6377). note that all the listed are poorer than tibet ($6550, 3m people) and xinjiang ($7476, 24m) in term of gdp per capita.

 

why china has money to invest in other countries, but...(1)

we will look at these provinces and see what china has done specifically to develop these poor provinces.

 

this will be an extremely long post. please read at your discretion. but if you read on, i’m sure you will learn a lot of new things about china:

 

1 gansu province

 

gansu is poor for a reason. on one side, you have the massive freezing tibetan plateau. on the other side, you have the deadly gobi desert.

 

why china has money to invest in other countries, but...(1)

god doesn’t want you to live here. but you insisted.

 

why china has money to invest in other countries, but...(1)

what kind of environment are we talking about? have a look at the following picture. this is what a typical village in gansu looks like.

 

why china has money to invest in other countries, but...(1)

 

red stones, golden sands, and deep valleys. gansu is the nevada state of china. there are a lot of sites just like the death valley and red canyon in the usa.

 

why china has money to invest in other countries, but...(1)

the taolai river gorge at jiayuguan pass in gansu

 

imagine you are living here. you grow your food in the valleys but you have virtually no rainfall at all. even if you managed to grow a few tons of wheat magically, where you do sell? to the nearest city? that’s fine. please drive 5 hours out of this god damn dry mountains.

 

why china has money to invest in other countries, but...(1)

 

even if you manage to find a customer to buy your wheat. he will buy your wheat for $150 per ton. but your transport and fuel cost to move the wheat out of these mountains has exceeded $100 per ton. considering other costs, okay … , so do you grow wheat just for losing money?

 

why china has money to invest in other countries, but...(1)

a mountain road in jingtai county, gansu

 

so you have no choice but to leave the village and become a foxconn worker in zhengzhou and spent your days making iphones. that’s what most gansu people would choose to do. as most people are leaving the rugged land to the cities, your village becomes deserted just like this:

 

why china has money to invest in other countries, but...(1)

an abandoned village in dingxi county, gansu

 

what has the chinese government done to address this problem?

 

for the 13th five year plan (2016–2020), the central government has poured a huge amount of money in building expressways and railways across these god damn hills. and what’s more, they are not building “level 5” bridges just enough for people to move. instead, they are building “level 50” shiny and massive bridges.

 

what are the differences between a “level 5” bridge and “level 50” bridge?

 

here is an example of a “level 5” bridge in france. short in length and height. you have to rush down, cross the bridge and climb up the mountains.

 

why china has money to invest in other countries, but...(1)

 

here is an example of a “level 50” bridge in gansu. all you need to do is to pass through at the speed of 120km/h.

 

why china has money to invest in other countries, but...(1)

 

these “level 50” bridges are indeed very expensive to build. but, on the other hand, they are very cost effective if you consider the amount of fuel saved for trucks, trains, and cars! you don’t have to go down and up again and again.

 

even if there is already a “level 5” road along the valleys, the government is still not satisfied. they want to build another high-speed “level 50” expressway along with it. in order to run at 120km/h across the mountains and valleys, the expressway has to be filled with tunnels and bridges so that it is more stretched. this makes trucks and cars to drive faster with less distance. so the fuel cost and transport costs can be reduced significantly.

 

why china has money to invest in other countries, but...(1)

provincial expressways s2 in construction in gansu (35°21’14.3″n 102°49’02.0″e)

 

in 2019, the total “level 50” expressway length in gansu has exceeded 4242km(speed limit 120km/h), which is even longer than mexico. and it is almost three times longer than india’s total length. not only expressways but gansu also has 4 lines of high-speed railways running at 250km/h to 350km/h (宝兰,成兰,兰新,兰渝).

 

in the next 14th five year plan (2021–2025), the government will promise to connect every prefecture city of gansu with high-speed railways and expressways.

 

why china has money to invest in other countries, but...(1)

lanzhou-xinjiang high-speed railways

 

why are “level 50” bridges, roads and railways are so useful?

 

imagine you are the farmer mentioned above, thanks to the village road built around you, you can transport your crops to your nearest city faster and also at a lower cost. the distributor in your nearest city can also find customers in a province that is even further away. people who are at 2000km away can buy your wheat at a higher price, thanks to the giant expressway network. overall, you can finally make profits in growing wheat in gansu!

 

still, think what i said is made-up or propaganda?

 

well, here is another real-life example. imagine you live in a distant village in gansu and you want to buy a mobile phone from taobao (chinese amazon), what does it cost to ship a package of 1kg from shenzhen to dunhuang in gansu in 2019? note that the total distance is around 3500km.

 

according to the website, the total cost for shipping over the 3500km is 15rmb ($2.2) and it promises to arrive in 3 days.

 

why china has money to invest in other countries, but...(1)

 

for comparison, the total cost for shipping one 1kg package from boston to reno in nevada (a similar 4000km) in the usa is $26.13 according to the ups shipping price calculator under the ups 3-day service.

 

therefore in the usa, it requires 10x more money to do the same thing! and note that they are both counted in the gdp calculation in both countries. is it fair? of course not. this applies to other services too.

 

that means gansu is not that “poor” as we originally thought.

 

instead, gansu is also blessed with the richness in “green” natural resources. on one side, you have the freezing tibetan plateau. on the other side, you have the hot gobi desert. boom! the temperature difference causes constant wind blowing. god doesn’t want you to live here but he really gives you another gift: the wind power.

 

therefore, gansu is the leader in its renewable energy sector. it has the world’s largest on-shore wind farm:

 

why china has money to invest in other countries, but...(1)

gansu jiuquan windfarm 40°40’31.2″n 95°24’44.5″e

 

however, despite china’s “great leap forward” in solar farm construction, they are faced with severe problems in gansu. they are generating too much electricity and it is much more than the gansu people can consume. the private sector is also investing heavily in gansu, making the government unable to control the overall supply of solar power in gansu.

 

as a result, it is estimated 40% of the wind and solar electricity is wasted in gansu. we could not store the energy because currently, we don’t have giant batteries. storing a huge amount of energy remains a problem to be solved by future technology.

 

the remaining choice is to transmit this huge amount of electricity through the ultra-high voltage power grid to the power-hungry eastern china. however, building a 3000km power grid is not an easy task and people along the grid would complain about the danger and radiation above their houses. i will write about this on-going chinese mega project and its achievements and problems in another answer.

 

in summary, these conclude the development in the poorest province of china —gansu. the gdp growth for gansu province in 2018 is 10.54%. and it is still far from enough compared to other provinces because we still have a lot of distant villages in gansu that are yet covered by decent roads and bridges. we will wait and see how china continues to eliminate poverty here.

 

why china has money to invest in other countries, but...(1)

 

yunnan & guizhou province

 

why china has money to invest in other countries, but...(1)

 

the next three poorest provinces: yunnan, guizhou, and guangxi are next to each other in the southwest of china. there are around 140 million people living here.

 

yunnan & guizhou are poor for the same reason. so let’s look at them together and later we discuss guangxi specifically.

 

if you have already been there, you might have already enjoyed those amazing tourist attractions in these areas. but they do not represent the majority of the people nor the whole poverty situation.

 

what is the real situation?

 

as the indian subcontinent continues to squeeze, terrains around here are becoming more and more similar to “wrinkles”, as mountains are squeezed higher and the rivers continue to carve valleys deeper.

 

yes, it is like the wrinkles of the skin.

 

why china has money to invest in other countries, but...(1)

 

imagine you are living in the middle of the “wrinkle”. you would be surrounded by tall mountains and deep valleys.

 

it is nearly impossible to move around without flying. building roads is also nearly impossible. you would be isolated for your whole life. to get a taste of what it is like, you can just go to google earth and experience it. (26°12’28.4″n 99°07’57.1″e)

 

why china has money to invest in other countries, but...(1)

 

even if you can climb across the mountains to the other side, you have to climb up and down another three similar mountains in order to reach a nearby city.

 

as a farmer, can you get rich if you live here? that’s nearly impossible. if you are ill, you have to call a helicopter to fly to the nearest hospital. but you have to be rich to afford a mobile phone. no signals? oh, why not just wait and die?

 

are you desperate? most likely.

but the chinese said: “hold my beer, i got this”.

 

why china has money to invest in other countries, but...(1)

beipanjiang bridge, liupanshui, guizhou (world’s highest bridge)

 

why china has money to invest in other countries, but...(1)

pu-li-te bridge, xuanwei, yunnan (world’s third highest bridge)

 

why china has money to invest in other countries, but...(1)

jin-an bridge, lijiang, yunnan (world’s fourth highest bridge, to be completed in 2020)

 

the chinese said: “hold up. there are ten more to come in the next five years”.

 

why china has money to invest in other countries, but...(1)

 

a high-speed railway arch bridge in guizhou. bullet trains pass through this bridge at the speed of 250km/h.

 

for comparison, a similar railway bridge is also being built in india. it is the chenab railway bridge in j&k. chenab bridge – wikipedia however, this bridge started in 2003 and it was originally intended to be completed in december 2009. but ten years passed the indian people have still not finished it.

 

why china has money to invest in other countries, but...(1)

 

if the indian engineers wanted to delay for another 2 years, the bridge would no longer be the world’s tallest railway arch bridge. the new king will be crown to the sichuan-tibet railway bridge.

 

why china has money to invest in other countries, but...(1)

 

think about their terrain and imagine how difficult it is to build expressways here.

 

why china has money to invest in other countries, but...(1)

 

now back to yunnan and guizhou. what kind of other developments that are worth mentioning?

 

4g network coverage

 

why china has money to invest in other countries, but...(1)

 

even in the most distant village with no good roads, you can always find 4g base stations installed. in terms of 4g, no other countries in the world can be compared with china. not a single developed country like the usa, uk nor japan can be comparable in such a scale.

 

according to the ministry of industry and it in china, there are 1.204 billion users connected to 4g stations in china. there are 3.72 million 4g base stations installed in china, exceeding 20% more than the rest of the world combined. guizhou has achieved 100% 4g coverage in all its 10k villages and yunnan reaches 65% in its progress.

 

why china has money to invest in other countries, but...(1)

in 2019, the package price for unlimited 4g internet is 98rmb ($14.5) for one person and 134 rmb ($20) for a family of three. compared to the usa, you have to spend $40 in t-mobile just to have a 10gb of internet. compared to india, although india has much cheaper internet than china, their 4g coverage is relatively low compared to china.

 

why china has money to invest in other countries, but...(1)

 

why does the 4g access useful? well, this is another answer i will write. but just to draw your curiosity, do you notice that there are more and more youtubers from yunnan and guizhou broadcasting their daily farming life?

he got caught for posting this…

a man posted a video on the internet with the headline fight, one dead and one injured” when he was waiting for a train in beijing station. then he was caught by beijing railway police.

01
alert

 

on may 9th, the beijing railway police found that someone had posted two videos with the headline “fight” and “one dead, one injured” respectively. after investigation, it’s found that there was no so-called “one dead, one injured” alert.

 

he got caught for posting this...

after the police checked surveillance, it looks like that there were only two passengers who had a quarrel in the fourth waiting room in the early morning, but they were quickly dismissed by station staff and other passengers.

the time, scene and characters were the same as those in the video. however, there was no “one dead, one injured” as mentioned in the headline.

02
rumor

the police found that there was a man shooting video at the scene, which was likely to be the suspect who posted these two fake videos.

 

he got caught for posting this...

in fact, cao, when he took a rest in the waiting room, saw two passengers who were in a quarrel, then took a video to record it. 

 

at first, he posted this video with the headline of “fight”. after one minute later, he posted this video again with the headline of “one dead, one injured in beijing railway station”.

 

he got caught for posting this...

police: why you posted it?

cao: i thought it’s interesting, so, i posted it on the internet.

police: what’s your headline in the second video?

cao: one dead, one injured in the fight.

police: why you chose this one?

cao: i thought this one was more attractive, so…

police: is it true? did you see it?

cao: no.

03
detention

 

although cao was regret for what he did to attract “click” and “view”, it’s too late!

he got caught for posting this...

 

to fabricate and spread any fake video or information will be caught by police for seriously disrupting public order and damaging society harmony.  (标题一真一假,手铐一左一右)


please pay attention to what we do on the internet, don’t fabricate, spread and believe rumors! 

 

he got caught for posting this...

under the amendment to criminal law of the people’s republic of china, a person convicted of the charge of spreading rumors online shall be sentenced to criminal detention or control for no more than 3 years; for serious consequences, it shall be sentenced to criminal detention for 3 to 7 years.

being an expat in china during the 1980s

peking in 1973 was a city of muted shades – in november a clear blue sky, the soft greys of the hutongs, and the gentle rays of a weak winter sun produced a special clear winter light.

being an expat in china during the 1980s

being an expat in china during the 1980s

1

being an expat in china during the 1980s

the omnipresent blue and khaki clothing, with few touches of color, added to the feeling of quiet.

 

being an expat in china during the 1980s

 

very young children were the exception to these shades of blue, grey and khaki, dressed in bright red jackets with matching red cheeks. an opportunity to express a difference, break the monotony.

 

being an expat in china during the 1980s

being an expat in china during the 1980s

2

being an expat in china during the 1980s

 

nevertheless, we often saw people on the streets with empty expressionless eyes, men so thin that their belts wrapped twice around their waists; big character posters denouncing officials, high and low, plastered the walls; and loudspeakers on every lamp post proclaimed the latest political campaign.  

 

we were insulated from most of this – frustrated observers trying to fathom what was happening.

 

being an expat in china during the 1980s

 

bicycles overflowed the broad peking streets, weaving their way past stolid plodding trolley buses, donkey-drawn and sometimes man-drawn carts, and the very occasional russian or polish car.

 

being an expat in china during the 1980s

being an expat in china during the 1980s

3

being an expat in china during the 1980s

 

official foreign delegations increased in number and frequency as china opened its doors wider to the “outside world” and more foreign governments negotiated diplomatic recognition of the people’s republic of china.

 

being an expat in china during the 1980s

 

travel by foreigners between cities was restricted, as was travel beyond the city’s perimeters.

 

being an expat in china during the 1980s

 

the great wall at badaling was “open“, as were several of the thirteen ming tombs, where we would spend many a lazy summer sunday on long picnics, with local ham, imported cheeses and many glasses of australian wine.

 

the summer palace was also “open“: beautiful pavilions, arched bridges, the infamous marble boat and the long external wooden corridors, their romantic traditional scenes of life in the courts roughly white-washed over in deference to the political pressures of the time.

 

being an expat in china during the 1980s

travel outside peking, even to shanghai, was not possible without a travel permit, and approvals were by no means certain.

 

shanghai had an independent and rebellious nature and there were times when it simply “wasn’t convenient” for foreign visitors to visit.  

 

being an expat in china during the 1980s

4

being an expat in china during the 1980s

 

but visits to shanghai, when they did take place, were a pleasant and decadent break from peking.

 

being an expat in china during the 1980s

colored shirts were on sale in the shanghai department stores, as were chocolates wrapped in silver foil. you could even get even pepper steak and souffle grand marnier, without the grand marnier, in the wonderful vestige of pre-1949 shanghai – the red house restaurant.

 

being an expat in china during the 1980s

today in beijing, the sky is rarely blue, the bicycles have all but gone, and the shops are overflowing with consumer products and consumers.

 

major brands are present on every thoroughfare; there is too much choice available between chinese and international cuisines, and travel, except to tibet, is unrestricted.

 

being an expat in china during the 1980s

 

the old city with its hutongs and ancient archways and the old city wall have all but disappeared. the city is taking on a new character, more befitting, perhaps, the 21st century, but there are things about the peking of 1973 that i will always miss.

 

china’s economic prosperity is spreading. from more comfortable living standards to staggering raises in salary, life for the average chinese citizen outclasses many western nations and has had a massive impact on the lives of foreign visitors to china. 

these things u must know before starting a business in china!

starting a business in china is a big feat in itself. there are a lot of considerations to factor in and a different set of laws that one must follow to be able to have smooth-sailing operations in one of the world’s leading business country.

aside from that, you would be required quite a financial and time investment. 

these things u must know before starting a business in china!

to be able to get to a level where your business can operate without being stressed with all the technical details, there are things that you need to know before you even go out and set up a business in china.

 

01
business nature in china
  • a wholly-owned foreign enterprise (wfoe)

  • a contractual or cooperative joint venture (cjv)

  • an equity joint venture (ejv)

  • a representative office (ro)

  • a foreign invested partnership enterprise (fipe)

  • hong kong company

 

02
scope and definition 

the business laws in china are quite stricter when it comes to defining the scope of business. 

 

these things u must know before starting a business in china!

the chinese local authorities reserve the right to prohibit or restrict your business if the scope and definition of your business do not align with china’s rules and regulations. 

 

it is noteworthy that they can permit and even encourage you to set up your business in china if the scope and definition have been laid out carefully and accurately. 

 

to save time and to not let your efforts go to waste, make sure you set the scope of your business first, so you don’t run into complications with the laws of china when it comes to setting up a business.

 

03
minimum registered capital 

typically, the chinese government has a definite minimum registered capital depending on the scope and nature of business. 

 

these things u must know before starting a business in china!

to avoid any future hassle due to foreign currency control policy, it is highly recommended to set a minimum registered capital based on your business scope and operation scale even though it is not required by law.

 

before you even start acting on the actual set-up of your business in china, it is important that you know about the minimum registered capital for the type of business you have to avoid financial loss.

 

04
 responsibilities as an employer

 

setting up your business, handling the employees’ payroll and statutory benefits in china, especially for foreign companies, can be a very overwhelming, complicated task. 

 

moreover, different cities in china have different policies and it is very important to adhere to them. 

 

these things u must know before starting a business in china!

 

to ease the stress and minimize confusion in this process, it is best to consult an experienced and a licensed service provider about the best way to manage this process.  

 

thus, outsourcing the administrative tasks to a local service provider with strong local know-how is very common among foreign small and medium enterprises in china.

 

05
thorough background check 

 

we cannot deny the fact that scammers exist anywhere in the world. china is not excused with this. 

 

it is very important that you check your joint venture partner’s credibility. before you even think of signing a contract with them, you should exhaust all means of research to know the truth behind your business partner.  

 

these things u must know before starting a business in china!

china is a foreign land and doing business with an offshore partner carelessly is a hassle and it can bring about complicated repercussions to you and your business.

 

an expat from shenzhen started crowdfunding (fundraising) for himself online on website gogetfunding.com to fight judgment in court because he was cheated by his partner and barred from leaving china. 

 

check! these things u must know before starting a business in china! https://gogetfunding.com/being-wrongfully-sued-in-china/

 

06
employee management system 

 

  • staff training

  • performance assessment

  • career management

  • communications policies

 

07
 company’s intellectual property

  

since you’ve gone all the way to set up a business in china, you don’t want it to be a waste by losing the intellectual property to others. 

 

these things u must know before starting a business in china!

be knowledgeable about chinese intellectual property (ip) rights. the ip protection rights will provide a business with the protection and registration of trademarks, 凯时在线 copyrights, and patents. 

 

also, be aware that disclosure and other issues might affect and limit your application and will jeopardize your efforts of securing ip protection. 

 

if you are really serious about doing business in china, you should start processing the ip protection rights of your business as soon as possible so as to avoid any conflicts and disputes.