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The 10 Different Types of Foreigners in China

As a foreigner here in China, today I’ve decided to (over)generalize my experiences with other foreigners and have a little fun with those of us that are of the paler persuasion.

When I first arrived in China my wife and I walked down the Bund in Shanghai and there were almost no other foreigners there! We were mobbed by Chinese people dying to speak English and touch my hairy arms and my wife’s blond hair. Everyone wanted to take pictures with us (of course they didn’t have any cameras, they wanted to use mine—don’t ask me how I was going to get the photos to them). We couldn’t find any shops selling bottled water or Cokes and the domestic flight was a prop-plane with seats that weren’t bolted down. That was my first day in China. Wow! Talk about overwhelming.

Since then I’ve had the opportunity to work all over China and meets hundreds of foreigners of various abilities, education and attitudes. Generally, the people I meet are good ambassadors for their home countries—kind (if not a little impatient), generous (if not a little condescending), and typically good salt-of-the-earth kind of folks. I will admit, though, I have often been shocked at how little they know about China or how few speak Chinese. It’s always impressive to me to see someone who is both good at what s/he does and fluent in Chinese. And even more impressive to find a foreign spouse and kids that can speak Chinese too.

Now, before you send me hate email and call me a racist pig, you need to know that I readily admit that at least 7 of these are/were me at some point in time in the last 10 years. People learn and life changes us all. Just because someone is a Pollyanna today doesn’t mean they won’t be a McCarthy Holdover next month.

So here it is. My totally biased analysis of foreigners in China. Feel free to add to the list. I’ll post the additions next week.

1. The Clintonite—Don’t ask, don’t tell. This guy has typically been here a couple years but doesn’t speak any Chinese. He visits factories twice a year and willingly believes it’s this clean all the time. Reads the social compliance reports and accepts that all is well. It’s much easier to not question the other 364 days of the year or talk with all the subcontractors that supply the one factory that submits to the social compliance inspection. Typically he knows that he’ll get what he asks for and so just doesn’t ask. AKA The Floydian—Comfortably Numb, if he’s Republican.

2. The McCarthy Holdover—Red Scared. Still sees anything “red” as a threat. Can’t get over the army’s involvement in the Chinese Govt. See’s the economy as feeding the military for it’s eminent take over of Taiwan (and then Korea, Japan, Hawaii, etc..). Still talks incessantly about the Cultural Revolution, Mao, Chicoms, Tiananmen ’89 and Tommy Huang. Typically can’t distinguish between Chinese and any other Asian. Could be a guest on King of the Hill (“Are you Chinese or Japanese?”).

3. The Pollyanna—Don’t you just love China!? “Look at the growth! Look at the opportunities! Just step over that body laying there, no problem. Look at the development. The Chinese will be the biggest (insert any industry here) in the world in just 10 years!” If he lives in China he’s a Taoist “convert” who practices fengshui learned from Wikipedia. Responds to anyone that says anything bad about China with: “Oh, yeah! And your government doesn’t do that too?!” Has never been outside of the big cities on the East Coast. Most books written about China in the last 10 years fit into this category. If he’s a frequent business traveler he buys the pro-China books in the Hong Kong Airport and purports to have great guanxi.

4. The English Teacher—Unteachable; great photo album. Thinks he’s The Pro because he’s taught in three cities in his one year in China. Can obviously out debate anyone that disagrees with him since he only communicates with folks speaking Pidgin English—self confirmation of his Pro status. Often a “North American” (i.e. a Canadian) who hates the fact that Chinese people only want to learn “American” (i.e. US) accents. Teaches on the side, but is really a full time backpacker that expects to turn his experiences into big money in import-export “as soon as he learns Chinese.”

5. The Pessimist—Hate is a core value. Nothing works and every problem is confirmation that China is going to hell in a hand basket. Everything is better somewhere else and everyone knows he hates it here (but he won’t leave). Differs from The Leftover in that he can be a newly arrived professional, a spouse or even an Overseas Chinese. Talks about the Chinese like they aren’t all around and can’t understand English. Thinks that guanxi is the root of all evil.

6. The Fam—What, me speak Chinese? For all intents and purposes, the families of most expats in China still live in the West. They live in a private villa in a gated community, shop at the import stores exclusively, travel back to their home country at least as often as to other provinces or cities in China. Knows all the TV schedules for home TV programming and are Slingbox devotees. They only interact with Chinese in English and then only with maids, the nanny, the driver, the pizza dude and the security guards.

7. The Native—been there, done that. Chinese spouse, speaks Chinese, has been here for years (and will be here for years more). In-laws live with him in a Chinese community/complex. Typically a cross between The Pessimist and The Pro. Acutely aware of the fact that he will never be Chinese but has also been away from his home country for long enough that he doesn’t quite fit in there either. Has never seen the new orange/green ten-dollar bills in the US. Fantasizes about “home cooking” and “the way it was back home.”

8. The Tourist—Loves the scenery, hates the bathrooms. Loves the people, hates the bones in the food. Still thinks the bar girls really do think he’s cute. Loves the fact that he can cut 20% off the starting prices of knock offs in the markets. Can’t quite figure out why anyone still calls China a “Developing Country.” Is sometimes here on 10-day trips to “check up” on his Chinese manufacturer—spends most of the trip eating, shopping and golfing.

9. The Left-Over. Probably came as a Tourist and is now an English Teacher. Loves wallowing in the underground economy of Yunnan. Hates the Chinese, hates China, hates Chinese food and hates his own job. Speaks barely enough Chinese to order beer, get taxis and impress tourists. Has a Chinese ex-wife (or two) and a current girlfriend half his age. Used to live in Thailand but the black market there is too expensive nowadays. Usually found in bars, complaining. Likely to have legal issues back in his home country that prevent him from returning.

10. The Pro—Fluent in Chinese and works as a professional in Shanghai, Hong Kong or Beijing. Would be a native except for The Fam are all Westerners. Has a degree from Thunderbird and has been in China since graduation. Lives on an “expat package” that could support a small Chinese village.

Rest easy, the campaign is finally over.

We can all now sleep without the fear of jack-booted thugs breaking down our doors. Now that the “100 Day Campaign Against Piracy” has officially ended. That’s right, as of last week, October 25th, the campaign is officially over and we can all go back to our regularly scheduled lives.

What? What do you mean you didn’t even know there was a campaign against piracy?! You didn’t notice that all the shops selling pirated DVD’s and clothes were closed? Didn’t see all the knock off computer equipment dealers shuttered for the last three months?

Yea, I didn’t either.

In case you want to know how the campaign went you can check here. But if you don’t want to take (waste) the time I’ll give you a free review of the People’s Daily report: millions of illegal DVD’s destroyed! Thousands of illegal shops closed down! Hundreds of illegal manufactures arrested! There are no more illegal goods in China. None!

Ok. The reality is that most, if not all, those who were affected by the government’s campaign are already back in business this week. At least they already are here in SZ. Lohu Commercial Market (featured on 20/20 last year as one of the biggest illegal goods markets in China) is going strong and actually never slowed down at all in the last 90 days. In fact, I would dare say that business is up as Hong Kong, Shenzhen and Guangzhou all host international trade fairs this month.

Why isn’t anything done about this is China, you might ask. The answer, I might tell you, is money. Pure and simple.
• China is the #1 source for illegal goods and the #2 market ($63.5 billion) in the world.
• At $334 billion annually, the US has the largest market fore illegal products in the world (larger than all the rest of the world combined!!).
• Total world market for illegal goods is approximately $1.085 trillion USD/year (China’s GDP is estimated at $2.22 trillion/annually).
• For more status see this. or this.

A conservative estimate is that China’s market (domestic/international) for illegal goods is going to be somewhere over $200 billion USD annually. With a GDP of $2.2 trillion ($8.89 trillion when adjusted for purchasing power), that’s almost 10% of China’s GDP in illegal goods annually. It’s obvious that for Chinese officials, who are numbers and development/growth addicted, there is little incentive for enforcement of copyright laws. In fact there are hundreds of billions of reasons NOT to do anything. Which is exactly what happens as soon as the campaign is over.

Utah’s (Chinese) Governor

I had a fun/interesting evening in Utah last week at the Governor’s Gala. Governor John Huntsman has quite an extensive history in Asia—speaks Mandarin, served as the (temporary) Ambassador to Singapore, has an adopted Chinese daughter and another adopted Indian daughter (in process). He claims that he is the only Chinese speaking governor in the US–probably true since most American’s don’t know China from Japan. My wife (who is Chinese) was duly impressed with his fluency too.

By far my favorite part of the evening was the justification from MC and local talent, Kurt Bestor, for his (in the future) support for Gov. Huntsman. He said he likes him because: “1. He rides a Harley, 2. He looks good in a leather jacket, 3. He plays the piano, 4. He has a great looking wife.” No mention of political positions, but if you have a “hot wife” and look good in leather, who needs political positions!?

Regardless of my views on his (lack of) politics, I believe that he has the vision that politicians and businesspeople need to have to work effectively in the new-increasingly-international world. He knows that Asia, China and India in particular, are important to domestic Utah business and consumers and he leads bi-annual “trade missions” to China and other Asian Countries (he’s in China this week). He doesn’t see China as a threat to Utah jobs, but as an opportunity for the future of Utah’s economy.

Chinese Word Games

The Head of the Chinese Ministry of Religious Affairs was speaking at a conference about law and religion at BYU last week and made a couple interesting comments that I think apply to anyone doing business in China.

First, when ask directly how many people died in the 1989 Tiananmen incident he said: “Not a single person died.”

Second, when asked why, if there is freedom of religion in China, are there underground Christians and Christian churches. He said: “There aren’t really any “underground Christians or churches.” Those types of people just don’t want to go out to a church because it’s too inconvenient. They would rather just have church in their own homes.”

While the legal system isn’t well developed in China, lawyer-speak (apologies to my friends who are lawyers) is a time honored art in Chinese. These two statements are representative of what you will be told and how business/politics is conducted in China.

So what do these two responses really mean?

First, the official line on Tiananmen is that no one died. So there is no way that a government official is going to reverse 17 years of stated position on what was easily the biggest mistake of the last 25 years. Bottom line? In public announcements, documents and the speeches of government officials the Party Line is the reality and will NOT be second guessed.

Second, the Chinese constitution states clearly that Chinese people have “freedom of religious belief” as opposed to freedom of religious practice. Since Chinese can believe anything they want, there is no reason (in the minds of Communist Party policy makers) for there to be any “underground” religions. The Chinese people have religious freedom so anyone that is not going to a “real” church must have reasons other than belief issues, or so the logic goes.

What does this mean for you doing business in China? It means that just as in the US, you’ve got to be very clear and very specific about what you want and what you are expecting/getting in return. Ideas for clarifying details include:

• If you don’t speak Chinese (very very well) and don’t have a good relationship with your factory you need to make the default contract in English and make sure that you get professional (and accurate) translation of the Chinese contract. Don’t ever let your supplier translate the contract for you.
• What ever is official policy or the law for your situation/industry is what you need to default to. You WILL be told that you can get whatever you want, even if it’s not legal, but you don’t want to go there. Ever. If there are problems, and there will be, you need to make sure that you have (at least) the threat of legal force behind you.
• Get your Chinese supplier to confirm back to you, in English, what they are going to be giving you. Get it in writing, get a sample of the product, get photos, get everything you can with dates and signatures, etc. Keep records of all conversations (electronic, verbal, everything) and make sure that all parties have copies of these. The Chinese know that collecting and recording information takes time. They know that you are (probably) on a trip with limited time. And they would rather do business at a bar or over dinner than at the factory. All of these things give them the advantage in (not) recording details. Make sure you do it—they will NOT.
• Work with someone you trust—this is the best way to get specific, honest information. Working with someone that has a stake in your success (i.e. the successfull completion of your product) means that they are invested in seeing you get all the information that you need. Many people recently are saying that guanxi is over rated in China and that you don’t need it any more. I beg to differ. I don’t care where you do business, it is ALWAYS better to know and trust who you work with. Maybe you don’t need a government official in your back pocket any more, but you do need connections with people who you can trust and who have connections to people who can get things done. It’s just as true in the US as it is in China—“it’s not what you know, it’s who you know.”