Author: Lisa Gu

  • Livable China

    Recently, the McKinsey Global Institute published its report ‘The Most Dynamic Cities in 2025‘ in Foreign Policy, a highly respected US journal. On this list, 27 mainland Chinese cities as well as Hong Kong took top spots alongside Shanghai and Beijing, leaving many other world-renowned metropolises far behind.

    As a Chinese who has lived through China’s transformation over the past two decades, I was hardly surprised by the results of this report. What really shocked me was the doubt and controversy that this report generated in western media, especially the negativity in the heated discussions published in the very same issue of Foreign Policy.

    Among these, I was most taken aback by Mr. Isaac Stone Fish’s article ‘Unlivable Cities’. Having lived in several different Chinese cities over a 7-year period, Mr. Fish should be able to provide an objective prospective about China. Unfortunately, the takeaway from his article, in his own words is: ‘For all their economic success, China’s cities, with their lack of civil society, apocalyptic air pollution, snarling traffic, and suffocating state bureaucracy, are still terrible places to live.’

    First of all, when it comes to civilization, there are very few countries where civil society can be traced back 5000 years like China. Today’s China may be in some aspects less civilized compared with the more developed countries, but China has come a long way in creating a more civilized society in recent years. When the People’s Republic of China was founded in 1949, the illiteracy rate was more than 80% in China, but as of today, the illiteracy rate among Chinese born after 1980 is under 1%. In cities, 80% of students go on to post-secondary studies. These highly educated young Chinese will undoubtedly redefine China’s civilization. When it comes to parenting, the 80s generation, now mostly young parents, are studying how to be a parent, which would have been unheard of just a decade ago.

    The new Chinese parents are teaching their kids to use polite expressions like ‘thank-you’ and ‘sorry’, something generally neglected in the past. Pioneer cities like Shanghai and Guangzhou opened ‘Manner and Etiquette’ classes in most of their primary and high schools starting in 2006. Our education system is changing as well, gradually switching from being purely exam-oriented, to cultivating students with all around abilities. Our future generations will continue to bring China into a new era of civil society. It is ironic for Mr. Fish to call China ‘unlivable’ by describing China as having ‘lack of civil society’, yet in his own narration later he wrote: ‘Chinese cities have little crime, one can stroll safely through Beijing’s magnificent Temple of the Sun park at midnight’. How many of today’s ‘livable’ and ‘civilized’ North American cities can claim that?

    Air pollution is an issue in China, but no different than the smog that hung in the sky in Pittsburgh, London, or Los Angeles when those cities were going through their own vast development phases.   China is generating the greatest total greenhouse gas emissions in the world, but its greenhouse gas emission per capita in 2008 only ranks 78th of 214 countries in the world, while Australia ranks 11th, followed by USA (12th) and Canada (15th). China is manufacturing for the whole world, so in a sense it’s a scapegoat for countries that don’t want to or cannot make things for themselves. Yet even with that, air pollution in China never reaches the level described in Mr. Fish’s article. Take Nanjing (300 km northwest of Shanghai) as an example: in the one week Mr. Fish spent there, the only thing he saw was ‘smog the color of gargled milk’.

    Having lived in Nanjing for almost 10 years, I do not find Nanjing’s air quality unbearable. On the contrary, I love wondering on the streets of this ancient yet modern city, breathing the fresh air and enjoying the sweet scent given off by the Wutong Shu (Phoenix trees) erected on both sides of the streets. Every morning, citizens go outside to exercise in the mountains and parks. At night time, people take walks outside after dinner. Never would I suggest that Nanjing is an ‘unlivable’ city.


    Phoenix Trees in Nanjing

    In 2011, 14.5 million cars were sold in China. It has overtaken America as the largest automobile market. This has and will continue to cause significant traffic congestion, a worldwide issue most metropolises face today. However, China is very proactively providing solutions to this problem. In Beijing, Shanghai and Guangzhou, the local municipality limits the licenses plates issued every year in an attempt to relieve the burden caused by new traffic. Of course, China knows better than anybody that nothing will stop its citizens’ desire for car ownership as they get richer, so the only way to prevent future traffic problems is to invest in more quality highways, cleaner cars and better public transit systems.

    With China now spending approximately half a trillion dollars annually on infrastructure (9 percent of its GDP), visitors should not be surprised to see numerous highways and subways under construction in most Chinese cities. In 2010, Shanghai had the world’s most extensive subway system (429 km), followed by London (402 km) and then Beijing (372 km). By 2020, the total length of Shanghai’s subway lines will reach 877 km, more than double of New York’s current total length of subway lines. Meanwhile, China provides large subsidies to the taxi and bus industries. On top of that, with the world’s longest rail network, China’s high-speed rail system is changing the way people travel between Chinese cities. The newest bullet train from Beijing to Shanghai can bring passengers to their destination in less than five hours, while flying over the terrain at a maximum speed slightly over 300 km per hour.

    Bureaucracy has been rife in China literally for millennia, and the onset of a market economy has not changed that sad fact. Much of the criticism of China relates to censorship. Yet this is less an issue for most Chinese than for either westerners and some Chinese intellectuals. With the fast development of information science and the enormous variety of media available, people can freely choose what movie, play or art show they wish to watch, discuss anything they are interested in with their families and friends, and most importantly live the life styles they want. The ‘pervasive fear of censorship’ described by Mr. Fish literally does not exist for today’s average Chinese citizen.

    Mr. Fish also gave specific examples of ‘unlivable’ cities in China. Among them, Harbin, the capital city of Heilongjiang province, was voted the least livable metropolis mainly due to its cold winter. Personally, during my own time there, I was fascinated by Harbin’s characteristic Russian architecture, the massive and astonishingly beautiful ice sculptures, and the fun winter activities that were available. All these temperaments make Harbin an extraordinary city. I am currently studying in Canada, a country justly famous for freezing winters. Constantly hearing Canadians complain about their ‘unbearably cold’ winters makes me realize that if winter temperature is a key criteria to judge whether a city is livable or not, Winnipeg, Manitoba would probably be crowned the most unlivable city in the Western hemisphere. I can only imagine what Mr. Fish would have to say about cities like Oslo, Helsinki, Copenhagen, or Minneapolis.

    China clearly is no paradise, yet the world should recognize how significantly the quality of life has improved over the stereotypes of the past. Growing up in 40 square meter (430 square feet) ‘Dormitory Style Housing’ (as Mr. Fish put it), with my parents and grandparents, I remember vividly how our neighbors nearly burst through our door to see our newly purchased color TV, the first they had ever seen. My happiest moment was licking a popsicle to its last frozen drop in the summer heat. Considering my parents’ combined monthly salary about 20 USD in the 1980s, this popsicle was quite a treat. Two decades later, in the same summer heat, my husband and I moved into a brand new three-bedroom condo in Nanjing, fully equipped with the most modern electronic appliances. Our condo is surrounded by a beautiful pond, a gymnasium, a supermarket and a nearby subway station. We make 3400 USD a month, eat out often and travel every year. This is not atypical for most middle-class Chinese people now. The welfare system is improving, people are less worried about getting sick, a retirement fund is in place, people now travel not only domestically but also internationally, and many send their children abroad to receive higher education. Where we are now would have been unthinkable to most people only a few decades ago.

    I’m often deeply saddened by the way in which China is so often portrayed in western media. China’s growth and development over the past few decades has been vast, and it possesses potential for a more affluent future. Westerners may refer to China as ‘unlivable’ but for me, and hundreds of millions of people like me, China today is more than simply livable, and it will continue to improve as time goes by.

    Lisa Gu is a 28 year old Chinese national who lived in Nanjing, China. She is currently studying at Wilfrid Laurier University in Waterloo, ON, Canada.

    Photo by Wikicommons user shakiestone.

  • Getting Married Naked

    One of my girlfriends just invited me to attend her wedding ceremony next month. In our short conversation, I learned that she and her husband have already moved into their brand new, three-bedroom condo (we barely have any detached houses, called villas, in China), purchased a new car, and will have three separate wedding ceremonies: in the groom’s hometown, the bride’s hometown, and the city where they currently live. Based on this description, you are probably picturing a couple in their late 30s who must hold high-paying respectable jobs.

    But that assumption would be wrong. They are an average young Chinese couple in their mid-20s who’ve only just graduated from university a couple of years ago.  However, what they are planning for their wedding is typical in China today.

    So how can they afford all this? Even in go-go China, many in reality can’t afford, and increasingly some are eschewing, the wedding-related expenses.

    But how did we end up in the first place with a situation where pressures force some Chinese couples to disappoint their families, their friends and maybe themselves?  Why have the wedding game become so patently insane even for the relatively affluent.

    To answer this question, we must first become familiar with some Chinese wedding traditions. Primarily when it comes to the cost of a wedding, the groom’s family is expected to provide accommodations for the couple and pay for the wedding ceremony, while the bride’s family provides what could be loosely referred to as a dowry.

    For my parents’ generation (those born between 1955 to 1965), the above mentioned wedding traditions translate into:

    • The newlyweds live with the groom’s parents after getting married. Since housing was provided by the state owned companies in the 1980s, and younger generations were expected to show their filial obedience through living with their parents, no couple would even consider having a place of their own.
    • In respect that China was still going through an extreme resource insufficiency phase in the early 1980s, my mother’s dowry only consisted of two brand new red quilts.  
    • Wedding ceremonies usually took place in the courtyard where people lived. Good friends would come to help cook a “feast” for a relative handful of guests.


    Wedding ceremony in the 1980s

     

    Now, after the massive economic changes that have happened over the past two decades, these three wedding traditions tend to follow a somewhat different pattern:

    • The new couple absolutely must have their own home. In most cases the groom’s parents pay for this housing. It does not matter whether it is a three-story villa or a 40 square meter (425 square feet) bachelor apartment, whether it’s brand new or 20 years old. The key thing is that the property be ready for the new couple to move into. Depending on the family’s financial status, they either pay the full amount or at least the down payment on a mortgage, with the ownership under the new couple’s name. To pay for this, parents usually start saving as soon as their son is born.
    • The dowry given by the bride’s family is either in the form of a brand new car, a hefty deposit into the newlywed’s bank account, or payment of the cost of interior decoration for their new home (new properties in China are usually delivered as little more than a concrete shell).
    • Wedding ceremonies are commonly held at the best hotels in town, often with about 500 guests in attendance. The guests will be seated at tables of 10, while the new couple spends most of the time standing on a stage in front.  Chinese wedding ceremonies have shifted from pure traditional Chinese style to a kind of bizarre formality. It is neither traditionally Chinese nor Western and typically includes: wedding rings, glamorous wedding pictures taken at a professional studio, multiple dresses worn by the bride, a lavishly decorated dining room and reception area in the hotel, fancy cars to transport the newlyweds and their entourage, hiring a famous host (MC), a huge feast, copious quantities of alcohol, firecrackers, and party favors that include chocolate and cigarettes.


    Modern wedding ceremony

    Don’t feel surprised if you are feeling dizzy just glancing at the list, you are not alone. Newlyweds often start preparing for their wedding ceremony several months in advance. Whether decorating their condo or taking wedding photos, or huddling with the wedding planner about the details of the ceremony, there’s pressure to get everything ready for the big day.  By the time they can go on honeymoon, most couples would rather just stay home and rest.

    The reality is, everybody knows and complains about how tiring it is to organize a wedding, yet most couples still repeat the same motions. Are they sacrificing their efforts for tradition? Not at all. They do it because weddings have become a way for people to show off their social status.

    For the newlyweds it is like a competition with their peers. For the parents however, a fancy wedding ceremony seems to have more symbolic meaning. Due to the fact that they barely had anything when they got married, and most families only have one child, this seems a chance to realize their fantasies in ways virtually impossible for them to achieve 25 years ago. It is also a perfect occasion to show their old friends what a great life they have now.

    Yet, no matter how exciting a Chinese wedding might sound, we all have to face a cold fact: there are many people in China – even among those ensconced in the middle class – who cannot afford these new wedding traditions.

    According to some unofficial calculations, in 2009 the total expenditure directly related to weddings was 600 billion CNY (92 billion USD). In 2010 the average wedding expenditure (excluding housing costs) for a Shanghai couple was 187,000 CNY (28,600 USD).

    For people who do not have the luxury of being able to afford such tremendous costs, it is not uncommon for them to borrow from their friends and relatives in order to have an “unforgettable” ceremony.

    Others see the problem from a different angle. If their daughter were to fall in love with a poor boy, some parents would not grant their permission for them to get married. At the same time, arranged marriages, blind dates and nationwide broadcast dating shows have started to pick up in popularity. The most frequently asked question for the involved parties is: do you have a house under your name?

    Still others are attempting to break free from those so called social norms and traditions, by standing up and saying no to the modern social pressure.

    A new word – “Luohun” (which directly translates as “getting married naked”) – emerged in 2008. It means that two people get married without buying a house, a car, wedding rings, having a fancy wedding ceremony or an exotic honeymoon. Instead, they spend only 9 CNY (1.4 USD) to get registered and obtain their marriage license from the state. Considering two people only get recognized in the community as a couple after their wedding ceremony in the old days, this represents a monumental shift in thinking.

    Over the past 3 years, “Luohun” has won more favour, especially with those born after 1980. According to an online survey regarding marriage trends, 60% of those polled aged 20 to 35 indicated that they can accept this new concept. It’s a matter perhaps of re-adjusting to the realities of an economy that, while growing rapidly, has also become more expensive.

    And there’s certainly some benefit in getting hitched without all the debts and encumbrances that are hard to bear for a young couple. After all, who wouldn’t want to get married naked?

    Lisa Gu is a 26-year old Chinese national. She grew up in Yangzhou (Jiangsu) and lives and works in Nanjing (Jiangsu).

    Photo by sheilaz413

  • Are Chinese Ready to Rent?

    In 2010 “House price” ranked third on the list of the top 10 most popular phrases used by Chinese netizens. It came to no one’s surprise. In most Chinese cities housing prices have increased significantly over the past decade, with an especially sharp rise over the past three years.

    “House Price” is a term used loosely, due to the fact that the vast majority of Chinese real estate is made up of apartments or condominiums, while only a small few are town houses or fully detached homes. However, terminology aside, owning a property is the greatest life-goal for most Chinese citizens.

    It is worth mentioning that in China property ownership does not mean land ownership as it does in the West. According to Chinese law, what people are buying is similar to a land-use right, which in the case of residential property, expires after 70 years (40 years for commercial property). The countdown begins on the date that the real estate developer signs for the land, and not on the homeowner’s date of purchase.

    So why do Chinese people have such zest for real estate?

    Different from the western mentality: “Home is where your heart is” or “home is where you hang your hat;” the traditional Chinese concept is: “home is where your house is.”

    Prior to the 1980s, people still followed the custom of living with their parents after getting married. It was not uncommon to see a three-generation family living together in a single home. At that time renting was unheard of, as most apartments, if needed, were provided for free to a person or family by their employer, typically a state-owned entity.

    With China’s transformation from a strictly planned economy to a market economy, many state-owned companies became limited companies which restricted    free housing provision. However, employees were given the option of buying their current residences at a very low price, and most people did.

    Increasingly today, when a young couple gets married , both sets of parents make their utmost effort to help their children purchase a home. For many young people who do not live in their original hometown, it is  essential that they buy a property in the city where they work, as that is the easiest way for them to obtain a local hukou (urban residence permit). Without this, they cannot enjoy the same rights and social benefits as the locals. 

    People in China refer to the demand from young couples as “rigid demand,” meaning they must bear the social pressure to purchase a house before they can get married.

    For middle-aged Chinese, buying a house is seen as a relatively simple and secure investment, because as indicated in Figure 1, housing prices have increased steadily over the past decade.

    This may now be getting out hand and the Chinese government has identified housing prices as a serious national issue. Some macro restrictive policies on home buying were issued in April 2010. Figures issued by the National Statistical Bureau, Figure 2, prove these restrictive policies did relieve somewhat the rate of house price increase.

    Immediately following the New Year, the Chinese central government announced that its top priority for 2011 would be controlling inflation. Shortly afterwards, a more stringent policy designed to limit speculation was issued on January 26th, 2011. Subsequently, each city issued its own policies based on this, with Shanghai and Chongqing, two Zhixiashi (provincial level municipalities administrated directly under the central government) taking the lead.

    Shanghai issued the following policies on February 1st, 2011.

    1. Any household purchasing a second home must provide a 60% down payment on a mortgage; and the interest rate on the mortgage will be 110% of the benchmark rate.
    2. From the publication date of this policy, households who already own one house will only be allowed to purchase one additional home.
    3. From the publication date of this policy, households who already own two or more houses will not be allowed to purchase any additional homes.
    4. Individuals selling a home less than five years since the date of purchase will be charged an additional sales tax of 5.5% of the full sales price.

    Many more cities followed in step, and announced their own sets of policies in the following weeks.

    Only one month after these policies came into effect, it is difficult to determine their effectiveness as house prices are still increasing compared with last year, although rate of change has dropped.

    The steady price has led to a renewal of interest in rented public housing. Chongqing became the first city to respond to the central government’s call with plans to build 40 million square meters  in public-rent housing units, which will provide accommodation to 1-2 million people within the next three years and to 800,000 families by 2015. In total, Chongqing will invest 120 billion RMB (18.3 billion USD) on public-rent housing construction.

    By 2012, Chongqing will also grant the urban hukou to 3 million farmers (10 million by 2020) with rural Hukou. In exchange, these farmers will give up their agricultural land, most of which will be developed into public-rent apartments.

    Who will be eligible to apply for public-rent housing?

    Chongqing’s criteria are as follows:

    1. Applicants must be over 18 years of age.
    2. Applicants must have a job which provides steady income.
    3. Monthly income must be under 2000 RMB (305 USD) for individuals and 3000 RMB (457 USD) for families. (These two numbers will fluctuate according to other economic index changes.)
    4. Families must not already have housing or have housing in which the average space per family member is lower than 13m2.

    One thing worth pointing out is that there is no hukou limit for public-rent housing applications, which means that citizens from other cities are equally qualified. All eligible applications will be placed into a lottery and public-rent apartment allocations will go to the lottery winners.

    These public-rent apartments range from 39m2 or 420 square feet (1 bedroom, 1 living room) to 53 m2 or 570 square feet (2 bedrooms, 1 living room) with the corresponding monthly rent around 390 to 530 RMB (59 to 81 USD). When you consider that the current average price of residential property per square meter in Chongqing is 5700 RMB (868 USD), that means a person could rent a 53 m2 apartment for 47.5 years before paying the equivalent cost of purchasing an apartment of the same size.

    Following suit, many other cities in China have also started to construct public-rent apartments.

    Are all the problems solved?

    Certainly this can help most lower-income citizens to find a place to live, but there are other problems. Tenants in China are not protected by laws that uphold renter’s rights as in the west. This is largely due to the fact that there are few apartment buildings owned by a single company or person. Citizens can only rent directly from home-owners with virtually no regulatory controls over the personal renting market.  Long-term leasing contracts are nearly impossible to negotiate, and landlords are able to demand large increases in rent, or even eviction at a whim. This means that renters have no stability, and usually have to face the difficulty of moving frequently.

    More buildings designed specifically for renting, and regulations protecting both tenants and home-owners are desperately needed.

    China has a long way to go when it comes to providing accommodation for its 1.3 billion citizens. Although one clear problem lies with the resources to construct the ”hardware”, this country’s development cannot continue without also upgrading its “software”: people’s way of thinking. In this case, that means convincing people to accept the idea of renting, reversing centuries of preference for ownership.

    Lisa Gu is a 26-year old Chinese national. She grew up in Yangzhou (Jiangsu) and lives and works in Nanjing (Jiangsu).

    Photo by Charles Ryan

  • Is China About to Decentralize?

    More than a car, plane or train tick, the “Hukou” (the residential permit system) is the key to mobility in China.

    I can still remember what my junior high English teacher said to my classmates and I, “I really worry about you guys; if you don’t study hard, not only will you not be able to get a job, you will probably have nowhere to stay, while the kids from the countryside; at least they will have some land to grow plants on and a house to live in!” (In my junior high school, all of my classmates had an urban hukou.) Looking back, I can’t help but admire my teacher’s far-reaching vision.

    I remember about two decades ago, my relatives from the countryside spent a fortune to get their kids an urban hukou. At that time, the “value” of one’s hukou was measured by the rank and scale of that city/town. As one can imagine, hukou for major cities such as Beijing, Shanghai, or Guangzhou are more “expensive” than my hometown Yangzhou.

    However, in the past couple years the trend has reversed, especially in the suburban areas of some cities. With the massive real estate development here in China, many lucky “farmers” with rural hukou have received enormous relocation compensation packages, which translate into millions of yuan and several brand new apartments.

    Yet despite these changes, the hukou system creates enormous boundaries for us.

    For someone like me, having a Yangzhou hukou and living in Nanjing, I have to go back to my hometown when I apply for a visa or any documentation related to my hukou. My future offspring will have to pay special fees and higher tuition to be admitted by the local schools. Even when I go to pay my internet bill, I have to pay a year in advance instead of monthly payments just because I do not have a local hukou. Still, I am fairly lucky because Yangzhou and Nanjing are in the same province. People holding a hukou belonging to another province have to overcome even greater difficulties and inconveniences, to say at the least.

    However, do not take it for granted that citizens who have a hukou for the big cities have it made. In Shanghai for example, the local government requires private car owners to pay 40,000 yuan for their license in order to limit the number of automobiles on the roads. Recently, one of my friends who has a Shanghai hukou bought a car in Nanjing, and he could not get a license for his car because the Nanjing authorities worried that he would secure a Nanjing license and actually drive his car in Shanghai in order to avoid paying the 40,000 yuan that the Shanghai municipality requires. He did eventually get his license by proving he is currently working and living in Nanjing and, of course, by pulling some important strings. This is rather ironic when looking back at how people valued a hukou several decades ago.

    The shifts in the value of a hokou parallels another interesting shift: many migrant workers are returning to their hometowns much earlier. In the previous years, migrant workers would usually return home right before Lunar Chinese New Year, which typically falls in February, but a large number of them have started to return home in December this year.

    The driving factor behind this change is that the cost of living in the cities has risen so dramatically over the past few years, and the money migrant workers earn barely covers their living costs. So rather than struggle through the holiday season, more and more are deciding to go home early and enjoy the time with their families. If these workers can secure work in the countryside, then the big cities could suddenly be facing a significant shortage of cheap labor as the Chinese New Year approaches.

    Although China’s urbanization will likely continue, the patterns might increasingly be to smaller cities and towns. In this sense, China’s development may, sooner than any expected, begin to take on the dispersion pattern that has occurred in the Western countries for more than a half century.

    Lisa Gu is a 26-year old Chinese national. She grew up in Yangzhou (Jiangsu) and lives and works in Nanjing (Jiangsu).

    Photo: South Gate, Nanjing