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Shopping For Tea in China
After crossing Asia, I discovered that the word for “tea” was the only universally common word across all the major language groups and local dialects on the continent – cha(i). All tea is actually made from the leaves of one plant – Camellia sinensis, but each ethnic group has its own preparation methods and China is no different. So within China, which is a few square miles short of the United States in land area, there are many variations. As a result, buying tea in China can be somewhat of a bewildering experience – but a cultural experience that a visitor must have! Some shops have sales people thrusting Dixie cups filled with tea at you, while other shops are tucked away in anonymous alleys with miscellaneous drums of tea stacked silently along a wall. If you are wary of getting a bad deal, you can head to a Wuyutai – a tea shop chain of sorts that is a well-respected brand in China. It is not just for foreigners; Chinese people definitely shop there too. You won’t find the best prices at Wuyutai, but you will get good service and top-quality product.
If I could give a foreigner three pieces of advice before going tea shopping in China, they would be:
Know the Different Kinds of Teas - People in tea shops don’t speak English (not even at Wuyutai) and I would be wary of those that do have staff who speak English. So it is important to at least know the variety of tea that you are interested in as a starting point. In China, there are seven different varieties of tea – they are:
Lù chá (lue-chah – lue is pronounced like ‘lieu’tenant): Green tea. If you can’t think of what kind of tea you want or want to buy tea as a gift, a safe bet is to ask for xī hú lóng jĭng (shee-hoo-lohng-jean). This was the Dowager Empress’s favorite tea and is a favorite throughout China. The best way to prepare it is to pour water at just-sub-boiling temperatures over the leaves in an uncovered cup. The leaves will unfurl and when they sink to the bottom, the tea is ready to drink. Most Chinese teas and all green teas come in two different forms: míngqían chá (ming-chien-chah) and yŭqían chá (yu-chien-chah). Míngqían chá is the most expensive and is the first picking of the season. Yŭqían chá is less expensive and is from “after the rains” or later in the season. A reasonable price for good quality green tea of the former is about 150 yuan for 50 grams and a reasonable price of the latter is about 40 yuan for 50 grams. Although truth be told, yŭqían chá can have such low prices that it is basically free. If you are going to go for it and buy some míngqían chá, make sure that it is refrigerated or otherwise temperature controlled.
Gōngfu chá (Gong-foo-chah): Ceremonial tea. This type of tea is used for ceremonial purposes (and also casual drinking) in China and Japan. Oolong tea, which is known in China by that name, is the most common kind of tea of this variety.
Heī chá (hey-chah): Black tea. The most common kind is pu-er and in China, it is also known by that name. Objectively speaking, pu-er kind of tastes like subtley-flavored dirty water. So it is an acquired taste and this is coming from someone who likes it.
Hóng chá (hong-chah): Red tea. This tea is found throughout the Middle East. In most places outside of China and Japan, if you are served tea – it is either black or red. Within China and Japan, it is available, but not commonly served.
Baí chá (buy-chah): White tea. Recently popular in the United States, this tea is not very popular in China. You can find it in some stores, but not all. White tea is very subtle. If you aren’t a tea drinker, this tea will always taste like you didn’t put enough leaves in the strainer.
Huáng chá (hwang-chah): Yellow tea. Like white tea, you can find it in China, but it isn’t very popular. The yellow tea that I have tried has been pretty plain, but I do not want to give it a bad reputation. If you have had a yellow tea that you particularly like, please leave me the name in the comments below.
Huā chá (Hwaah-chah): Flower tea. This is the only tea variety that does not come from a tea plant. This variety consists of flowers that are added to water to give flavor. The most common types of flowers are rosebuds (they make for a somewhat bitter tea) and chrysanthemums. While attractive, flower tea is some of the cheapest tea that you can buy, so if you are being quoted a price that seems expensive or along the lines of the average tea – you are being taken.
Don’t Be Afraid to Ask to Try The Teas – Trying the teas is often central to the shopping experience. Shop-keepers will not begrudge you the opportunity to try different teas and indeed, will welcome the opportunity to push you into more expensive categories once they reveal to you the merits of trading up. If you are in a store that seems to have the infrastructure to allow you to sample teas (i.e. not at a counter in a shopping mall) – such as oddly shaped wooden tables that allow water to runoff into one place – ask to try certain teas. The way to ask to try a tea is to say – cháng yī cháng (chahng-ee-chahng) or more properly wŏ kĕyĭ cháng yī cháng (woe kuh-yee chahng-ee-chahng). This question may lead you to be escorted to a seat to try the teas or the response may be – nĭ kĕyĭ kàn yī kàn – which means you can’t try the teas, but you can look at them. If you aren’t permitted to try a tea, don’t be afraid to get up close to the tea and smell it. If you do get a chance to taste the teas, the process will allow you to note the differences between the varieties and to determine whether you can tell the difference between a good tea and a bad tea before you spend $1 per gram on a first-class xī hú lóng jĭng tea. I am always amazed by how much tea is spilled while sampling; it is a sight to see.
Prices Are Not Quoted In The Metric System – The prices quoted on the tea drums will be per 500 grams in the metric system not per kilo. The standard Chinese weight (jīn) is half a kilo. So if you are buying a good tea that costs a 1,000 yuan per the quoted price on the drum – this price corresponds to one jīn. So if you ask for 100 grams (kè), you are actually asking for 20% of a jīn, rather than 10% of a kilo. In other words, you will be buying 200 yuan worth of tea rather than 100 yuan worth. To make things more confusing, the scales used throughout China are on the metric system, so it will show that you are buying 100 grams, but you will be quoted a price that is double what you thought it would be. This is the case from Xinjiang to Shanghai whether you are buying fruit, fish or anything by weight. Understand that this is the case – you aren’t being screwed because you are a foreigner.
While I am usually a voracious bargainer, tea is one area where I usually restrain myself from bargaining. This is particularly the case if I have tried many teas in the shopping process. At places such as Wuyutai, negotiating is not an option and the prices are clearly posted. At a more humble store, where there may be no prices clearly posted, a subtle way of negotiating would be to ask for prices of teas you don’t really want and be silent or look somewhat displeased. And then ask for prices on the teas that you do want. If the prices seem outrageous in comparison to some of those discussed above, you should feel free to walk away.
After crossing Asia, I discovered that the word for “tea” was the only universally common word across all the major language groups and local dialects on the continent – cha(i). All tea is actually made from the leaves of one plant – Camellia sinensis, but each ethnic group has its own preparation methods and China is no different. So within China, which is a few square miles short of the United States in land area, there are many variations. As a result, buying tea in China can be somewhat of a bewildering experience – but a cultural experience that a visitor must have! Some shops have sales people thrusting Dixie cups filled with tea at you, while other shops are tucked away in anonymous alleys with miscellaneous drums of tea stacked silently along a wall. If you are wary of getting a bad deal, you can head to a Wuyutai – a tea shop chain of sorts that is a well-respected brand in China. It is not just for foreigners; Chinese people definitely shop there too. You won’t find the best prices at Wuyutai, but you will get good service and top-quality product.
If I could give a foreigner three pieces of advice before going tea shopping in China, they would be:
Know the Different Kinds of Teas - People in tea shops don’t speak English (not even at Wuyutai) and I would be wary of those that do have staff who speak English. So it is important to at least know the variety of tea that you are interested in as a starting point. In China, there are seven different varieties of tea – they are:
Lù chá (lue-chah – lue is pronounced like ‘lieu’tenant): Green tea. If you can’t think of what kind of tea you want or want to buy tea as a gift, a safe bet is to ask for xī hú lóng jĭng (shee-hoo-lohng-jean). This was the Dowager Empress’s favorite tea and is a favorite throughout China. The best way to prepare it is to pour water at just-sub-boiling temperatures over the leaves in an uncovered cup. The leaves will unfurl and when they sink to the bottom, the tea is ready to drink. Most Chinese teas and all green teas come in two different forms: míngqían chá (ming-chien-chah) and yŭqían chá (yu-chien-chah). Míngqían chá is the most expensive and is the first picking of the season. Yŭqían chá is less expensive and is from “after the rains” or later in the season. A reasonable price for good quality green tea of the former is about 150 yuan for 50 grams and a reasonable price of the latter is about 40 yuan for 50 grams. Although truth be told, yŭqían chá can have such low prices that it is basically free. If you are going to go for it and buy some míngqían chá, make sure that it is refrigerated or otherwise temperature controlled.
Gōngfu chá (Gong-foo-chah): Ceremonial tea. This type of tea is used for ceremonial purposes (and also casual drinking) in China and Japan. Oolong tea, which is known in China by that name, is the most common kind of tea of this variety.
Heī chá (hey-chah): Black tea. The most common kind is pu-er and in China, it is also known by that name. Objectively speaking, pu-er kind of tastes like subtley-flavored dirty water. So it is an acquired taste and this is coming from someone who likes it.
Hóng chá (hong-chah): Red tea. This tea is found throughout the Middle East. In most places outside of China and Japan, if you are served tea – it is either black or red. Within China and Japan, it is available, but not commonly served.
Baí chá (buy-chah): White tea. Recently popular in the United States, this tea is not very popular in China. You can find it in some stores, but not all. White tea is very subtle. If you aren’t a tea drinker, this tea will always taste like you didn’t put enough leaves in the strainer.
Huáng chá (hwang-chah): Yellow tea. Like white tea, you can find it in China, but it isn’t very popular. The yellow tea that I have tried has been pretty plain, but I do not want to give it a bad reputation. If you have had a yellow tea that you particularly like, please leave me the name in the comments below.
Huā chá (Hwaah-chah): Flower tea. This is the only tea variety that does not come from a tea plant. This variety consists of flowers that are added to water to give flavor. The most common types of flowers are rosebuds (they make for a somewhat bitter tea) and chrysanthemums. While attractive, flower tea is some of the cheapest tea that you can buy, so if you are being quoted a price that seems expensive or along the lines of the average tea – you are being taken.
Don’t Be Afraid to Ask to Try The Teas – Trying the teas is often central to the shopping experience. Shop-keepers will not begrudge you the opportunity to try different teas and indeed, will welcome the opportunity to push you into more expensive categories once they reveal to you the merits of trading up. If you are in a store that seems to have the infrastructure to allow you to sample teas (i.e. not at a counter in a shopping mall) – such as oddly shaped wooden tables that allow water to runoff into one place – ask to try certain teas. The way to ask to try a tea is to say – cháng yī cháng (chahng-ee-chahng) or more properly wŏ kĕyĭ cháng yī cháng (woe kuh-yee chahng-ee-chahng). This question may lead you to be escorted to a seat to try the teas or the response may be – nĭ kĕyĭ kàn yī kàn – which means you can’t try the teas, but you can look at them. If you aren’t permitted to try a tea, don’t be afraid to get up close to the tea and smell it. If you do get a chance to taste the teas, the process will allow you to note the differences between the varieties and to determine whether you can tell the difference between a good tea and a bad tea before you spend $1 per gram on a first-class xī hú lóng jĭng tea. I am always amazed by how much tea is spilled while sampling; it is a sight to see.
Prices Are Not Quoted In The Metric System – The prices quoted on the tea drums will be per 500 grams in the metric system not per kilo. The standard Chinese weight (jīn) is half a kilo. So if you are buying a good tea that costs a 1,000 yuan per the quoted price on the drum – this price corresponds to one jīn. So if you ask for 100 grams (kè), you are actually asking for 20% of a jīn, rather than 10% of a kilo. In other words, you will be buying 200 yuan worth of tea rather than 100 yuan worth. To make things more confusing, the scales used throughout China are on the metric system, so it will show that you are buying 100 grams, but you will be quoted a price that is double what you thought it would be. This is the case from Xinjiang to Shanghai whether you are buying fruit, fish or anything by weight. Understand that this is the case – you aren’t being screwed because you are a foreigner.
While I am usually a voracious bargainer, tea is one area where I usually restrain myself from bargaining. This is particularly the case if I have tried many teas in the shopping process. At places such as Wuyutai, negotiating is not an option and the prices are clearly posted. At a more humble store, where there may be no prices clearly posted, a subtle way of negotiating would be to ask for prices of teas you don’t really want and be silent or look somewhat displeased. And then ask for prices on the teas that you do want. If the prices seem outrageous in comparison to some of those discussed above, you should feel free to walk away.
Buying a house in China: The laowai Experience
Mark, 28, China
American metalhead tattoo enthusiast teaching English in China. Loves God, his wife and son, sunshine, and orange soda.
For most Chinese people, owning a home is an extreme priority (though "owning" really means "a 70 year lease from the government.") In the West, owning a homeis a big priority, though not essential. In the Western mentality, houses are for owning, apartments/flats are for renting. And since there are very few houses in China, most Westerners are happy to rent when they come to China to live, even if they're going to be here for a long, long time.
A few months after my wife and I got married in February 2009, we decided it was time to buy a home. I was well aware of the Chinese inclination (read: obsession) with home ownership, and this is actually a valid perspective in China, where distrust and paranoia of being cheated reign supreme, and no one wants a landlord literally lording over you. I was also aware of the huge responsibility and cost that comes with purchasing a home. But we decided to take the plunge nonetheless, and so far, I'm glad we did.
For one thing, it makes my wife very happy, and happy wife=happy life :-). But seriously, women crave stability, particularly in China, and while my wife isn't like the hordes of money-minded materialistic sirens prowling around, having a home to call your own is a big relief.
Another reason is the investment opportunity. We live on Xiamen Island for the time being while we're waiting for our new home to be constructed, but our new home is outside the island, on the mainland. This means its drastically cheaper and quieter than if we had purchased a home on the island. It's still only a 45 minute bus ride and if we get our own car, a 20 minute ride back to the island, which is the hub for Xiamen's shopping, restaurants, and nightlife. There are several shopping centers, parks, etc. around where our new home is, but it's still mostly countryside. But that is actually what we would like, since Xiamen Island is quickly becoming too crowded. Right now, the home we are renting is right next to Zhong Shan Road, Xiamen's top tourist hot spot, and while the convenience is nice, the crowds and traffic is not.
So, back to the investment opportunity. As I said, our new home is waaay cheaper than on the island. It's on the 21st floor, 90 sq. meters, two bedrooms/one bath, looking out to the sea, though there are some industries and businesses around the building, but no smoke stacks or pollution. It's also right across from a yet-to-be-finished bridge that will let me zip over to my university in about 15 minutes. All this for 2990 RMB/sq. meter. That's right. We put down our deposit in May 2009, and already it has appreciated to over 4200 RMB/sq. meter. As I said before, it's still in the countryside, but there are several developments and apartment complexes going up around it, so in the next 3-5 years, that area will probably be a decent suburb of Xiamen.
Now I often have people asking me about the process of buying a house, so let me share my experience. My wife and I are quick decision-makers, and we were lucky enough to find this home that suited us, was in a good location, and had a great price, so we jumped right in. The down payment was a bit of an expense, and we used my wife's savings for that, since I had drank, shopped, and traveled away most of my money in my three previous years in China *looks sheepish.* I chipped in a bit though too. The law stated that if a house is under 90 sq. meters, then the down payment is 20% of the total house value, if over, then it's 30%. Our home came to around 89.40 sq. meters so we just bared squeaked in at the 20% mark.
Getting the loan from the bank was a bit of a nail-biter, since my wife didn't have a job, but we couldn't tell the bank that I, her husband, did have a job and was therefore capable of repaying the bank, since the bank wouldn't give her the loan if they knew that we were married. The reason is that the bank would be naturally squeamish about loaning money to a Chinese person with a foreign spouse, since the couple could easily take the loan, make their purchase, and then zip off to the foreigner's home country, leaving the bank empty-handed. But since my wife also owned a small storefront that she rents out, the bank saw her as low-risk (and still single), so they granted the bank loan to her at a fixed interest rate.
I thought this was interesting but understandable. From what I hear, foreigners can only own one piece of property in China, usually a factory or other business. I'm a teacher, not a businessman, so I don't need to worry about this, but without something significant tying me to China, the bank wouldn't give her the loan, so we needed to keep our marriage under wraps.
So now we've got a ten-year mortgage at a fixed rate, and the payments are quite reasonable, only about 20% of my monthly income. My wife doesn't work (her current job is incubating our little bundle of joy, due to arrive in August). The construction should be finished in July of this year, but all we're really getting is an empty concrete box. We have to take care of all the interior design ourselves, which is what we're saving up for at the moment. We expect to move to our new home by next summer. All in all, it's been a relatively low-stress situation, and I really feel that we got lucky. I would encourage other married foreigners to purchase homes outside of large cities, since urban areas are severely over-priced, though this could change quickly. Suburban homes tend to be quieter, less expensive, and the appreciation will probably be less erratic than city homes.
I think purchasing a home is a good idea, especially if you're going to be in China for the long haul and plan to have a family here. My wife and I expect that we'll stay in China until it's time for our child to begin his/her education, and a Western education is definitely the better choice- can I get an "Amen." But even while we're gone, we can rent our home, and we'll always have a home to come back to.
In unrelated news, I haven't gotten a new tattoo in several months, so I went to the beach and got sunburned to get that peeling and itching feeling that I know and love so well. Just thought I'd share.
American metalhead tattoo enthusiast teaching English in China. Loves God, his wife and son, sunshine, and orange soda.
For most Chinese people, owning a home is an extreme priority (though "owning" really means "a 70 year lease from the government.") In the West, owning a homeis a big priority, though not essential. In the Western mentality, houses are for owning, apartments/flats are for renting. And since there are very few houses in China, most Westerners are happy to rent when they come to China to live, even if they're going to be here for a long, long time.
A few months after my wife and I got married in February 2009, we decided it was time to buy a home. I was well aware of the Chinese inclination (read: obsession) with home ownership, and this is actually a valid perspective in China, where distrust and paranoia of being cheated reign supreme, and no one wants a landlord literally lording over you. I was also aware of the huge responsibility and cost that comes with purchasing a home. But we decided to take the plunge nonetheless, and so far, I'm glad we did.
For one thing, it makes my wife very happy, and happy wife=happy life :-). But seriously, women crave stability, particularly in China, and while my wife isn't like the hordes of money-minded materialistic sirens prowling around, having a home to call your own is a big relief.
Another reason is the investment opportunity. We live on Xiamen Island for the time being while we're waiting for our new home to be constructed, but our new home is outside the island, on the mainland. This means its drastically cheaper and quieter than if we had purchased a home on the island. It's still only a 45 minute bus ride and if we get our own car, a 20 minute ride back to the island, which is the hub for Xiamen's shopping, restaurants, and nightlife. There are several shopping centers, parks, etc. around where our new home is, but it's still mostly countryside. But that is actually what we would like, since Xiamen Island is quickly becoming too crowded. Right now, the home we are renting is right next to Zhong Shan Road, Xiamen's top tourist hot spot, and while the convenience is nice, the crowds and traffic is not.
So, back to the investment opportunity. As I said, our new home is waaay cheaper than on the island. It's on the 21st floor, 90 sq. meters, two bedrooms/one bath, looking out to the sea, though there are some industries and businesses around the building, but no smoke stacks or pollution. It's also right across from a yet-to-be-finished bridge that will let me zip over to my university in about 15 minutes. All this for 2990 RMB/sq. meter. That's right. We put down our deposit in May 2009, and already it has appreciated to over 4200 RMB/sq. meter. As I said before, it's still in the countryside, but there are several developments and apartment complexes going up around it, so in the next 3-5 years, that area will probably be a decent suburb of Xiamen.
Now I often have people asking me about the process of buying a house, so let me share my experience. My wife and I are quick decision-makers, and we were lucky enough to find this home that suited us, was in a good location, and had a great price, so we jumped right in. The down payment was a bit of an expense, and we used my wife's savings for that, since I had drank, shopped, and traveled away most of my money in my three previous years in China *looks sheepish.* I chipped in a bit though too. The law stated that if a house is under 90 sq. meters, then the down payment is 20% of the total house value, if over, then it's 30%. Our home came to around 89.40 sq. meters so we just bared squeaked in at the 20% mark.
Getting the loan from the bank was a bit of a nail-biter, since my wife didn't have a job, but we couldn't tell the bank that I, her husband, did have a job and was therefore capable of repaying the bank, since the bank wouldn't give her the loan if they knew that we were married. The reason is that the bank would be naturally squeamish about loaning money to a Chinese person with a foreign spouse, since the couple could easily take the loan, make their purchase, and then zip off to the foreigner's home country, leaving the bank empty-handed. But since my wife also owned a small storefront that she rents out, the bank saw her as low-risk (and still single), so they granted the bank loan to her at a fixed interest rate.
I thought this was interesting but understandable. From what I hear, foreigners can only own one piece of property in China, usually a factory or other business. I'm a teacher, not a businessman, so I don't need to worry about this, but without something significant tying me to China, the bank wouldn't give her the loan, so we needed to keep our marriage under wraps.
So now we've got a ten-year mortgage at a fixed rate, and the payments are quite reasonable, only about 20% of my monthly income. My wife doesn't work (her current job is incubating our little bundle of joy, due to arrive in August). The construction should be finished in July of this year, but all we're really getting is an empty concrete box. We have to take care of all the interior design ourselves, which is what we're saving up for at the moment. We expect to move to our new home by next summer. All in all, it's been a relatively low-stress situation, and I really feel that we got lucky. I would encourage other married foreigners to purchase homes outside of large cities, since urban areas are severely over-priced, though this could change quickly. Suburban homes tend to be quieter, less expensive, and the appreciation will probably be less erratic than city homes.
I think purchasing a home is a good idea, especially if you're going to be in China for the long haul and plan to have a family here. My wife and I expect that we'll stay in China until it's time for our child to begin his/her education, and a Western education is definitely the better choice- can I get an "Amen." But even while we're gone, we can rent our home, and we'll always have a home to come back to.
In unrelated news, I haven't gotten a new tattoo in several months, so I went to the beach and got sunburned to get that peeling and itching feeling that I know and love so well. Just thought I'd share.
Chinese Dream
Talented foreigners with an eye for opportunity are heading eastward to realize their potential in a wide range of fields, reports Todd Balazovic
While China may have once been a favored destination for expats seeking exotic experiences such as teaching English or learning Chinese, an increasing number of people are flocking eastward to realize their dreams. As the Chinese economy continues to grow, success is flourishing not only for entrepreneurial Chinese, but also for foreign residents with an eye for opportunity. This is the story of some of those intrepid foreigners who have shared in the "China dream" - the philanthropist, the actress, the restaurateur and the playwright.
For Charlotte Macinnis, also known as Ai Hua when she is hosting the China Central Television (CCTV) program Growing up with Chinese, the "China dream" started as a child when her family moved to the city of Nanjing to follow her father's career in publishing.
In 1988 at the age of 7, Macinnis was pushed out of a comfortable life in the United States and placed in a land that, at the time, few people in the West knew anything about.
"We didn't have the option of living a Western lifestyle in China, so we adopted a Chinese one," the 30-year-old actress said.
Gaining high proficiency in Mandarin after just two years in a Chinese middle school, Macinnis and her sister Mika began making a local name for themselves as the only expat performers to share the stage with China's well-known Little Red Flowers performing troupe.
After more than a decade in China, Macinnis returned to the US to attend Columbia University where her quirky Chinese mannerisms earned her the nickname "weird white Chinese girl" among her classmates, a title that sticks to this day.
Now, Macinnis is a recognized face in many Beijing households as the host of several programs on CCTV and a regular guest on Chinese talk shows.
"This is exactly where I want to be," she said. "I wouldn't know life anywhere else."
While her opportunity came at a young age, when there was still "an element of wow associated with being a foreigner", Macinnis said China is still teeming with possibilities for those looking to realize their dreams in showbiz.
"Definitely in entertainment there's a better chance at getting somewhere or being on TV here than you would in the United States," she said, adding that while many opportunities remain available for foreigners, employers are gradually getting more stringent regarding who they hire.
"But the caliber of people coming to China has risen, people are expecting more now. And that's good, that's what it should be."
For some the "China dream" is not about realizing their own potential, but instead about helping others realize theirs.
Tom Stader, founder of the Library Project, a Xi'an-based non-governmental organization that donates libraries to poor rural schools, first came to China as a marketer for an English-language school in the northeastern city of Dalian, Liaoning province.
Following two years working in Dalian, Stader's life took a dramatic shift after he was charged with finding a charity for the school to participate in as part of its corporate responsibility program.
The 36-year-old American responded by putting a plan into motion to host a book drive that would bring learning materials to a Dalian orphanage, where literature was scarce.
The public's response to the fundraiser was overwhelming, bringing in more than 3,400 yuan ($518) and 600 books over the course of just two days.
Seeing the good he could do for those in need, Stader left the school and began the project which has grown into a massive organization that has donated hundreds of libraries across 21 provinces in China.
"I started this organization with $500 and a couple of friends. Building an organization over years from the ground up has really been a dream come true," Stader said.
He attributes his success to China's warm reception for those with good intentions, as well as the relatively cheap startup costs for businesses.
"The barrier of entry in China is quite small if you look at it in business terms, you don't have to have a lot of money to start something big here," he said.
"We did it slow, we did it grassroots, we showed results, we took risks and those risks played out in a very positive manner."
Stader said if he had remained in the US, the chances that he would have been able to start an NGO would have been quite slim due to the overabundance of organizations already operating there.
"It comes down to the need. There are great organizations already on the ground in the US, I am not sure we'd have been able to provide the impact there that we can here," he said.
It was seeing the need in an untapped market that led Briton Will Yorke, owner of the Vineyard Caf, one of Beijing's up and coming Western restaurants, to venture from life as a club DJ to being a respected business owner in a budding Beijing hutong.
Coming to China in 1997 to study Chinese, Yorke was among the first of the city's expats to bring the electronic art of disc jockeying to the capital, earning him a minor celebrity status in the city's club scene.
After finishing his studies and exploring a variety of jobs, including running a kungfu school, the 35-year-old eventually tapped into his experiences working in restaurants as a youth and found himself in the unlikely position of being a restaurant owner.
"It was a mixture of sheer brilliance and a number of random events that kind of led to this end result," he said.
"It was never my intention to open a restaurant in Beijing, I never thought this is what I'd be doing."
The Vineyard, in Beijing's quickly developing Wudaoying Hutong, was the first Western enterprise to open in the area, catalyzing a boom in boutique businesses along the old alley.
Yorke attributes his success to the fact that China is still a relatively young market for Western concepts.
"It's a matter of saturation, the market isn't as saturated as it is in London. You can still take an idea that might be quite old in the UK and make it quite new here," he said.
Though the "eastern front" may be a ripe market for ideas considered commonplace back home, Yorke admits that this was not what he had in mind when he found himself in the restaurant business.
"It was a series of random circumstances that led me here. I didn't consciously do that, I didn't do it like that. I just opened a restaurant and cooked the food I liked," he said.
While meeting success in China may come by chance for some, for American Elyse Ribbons, a host for China Radio International and a resident of China for almost a decade, the "China dream" is for young professionals seeking a unique early-career experience and willing to push themselves with hard work.
The 30-year-old first came to Beijing in 2001 following a trip with classmates from the University of North Carolina. Though at the time she aspired to work for the US State Department using her language skills in Arabic, China's charm won her over and, after finishing her Chinese-language degree in the US, she was determined to return.
"All of us, myself included, fell in love with Beijing and China," she said.
After returning to China in 2002 intending to study traditional Chinese medicine in order to use her skills in the West, Ribbons quickly realized that the medical field was not for her and began experimenting with the varying job opportunities Beijing had to offer, from English teaching to working as a translator for the American Center for Disease Control in Beijing.
Ribbons finally found her niche in the theater in 2006 after spending three weeks in Paris writing her own screenplay I Heart Beijing examining the social stereotypes of foreigners and Chinese in China.
Following the success of her play, Ribbons established herself in the capital's drama scene and has since put on six more productions.
She said while China may offer expats a quicker chance of success than in the West, the room for career growth, especially in the theater, is often limited.
"There's more opportunity in China to get your foot in the door, but once your foot's in getting the rest of your body through is difficult," Ribbons said.
"You've got to be stubborn and have perseverance, that's how you push yourself through the door."
She said while expats in China may be given unique chances, such as playing the role of a TV host simply based on the fact that they're foreign, the opportunities often have little room for advancement.
"You get the introductory opportunities, but to break through the glass ceiling takes a lot of work," she said. .
For Charlotte Macinnis, also known as Ai Hua when she is hosting the China Central Television (CCTV) program Growing up with Chinese, the "China dream" started as a child when her family moved to the city of Nanjing to follow her father's career in publishing.
In 1988 at the age of 7, Macinnis was pushed out of a comfortable life in the United States and placed in a land that, at the time, few people in the West knew anything about.
"We didn't have the option of living a Western lifestyle in China, so we adopted a Chinese one," the 30-year-old actress said.
Gaining high proficiency in Mandarin after just two years in a Chinese middle school, Macinnis and her sister Mika began making a local name for themselves as the only expat performers to share the stage with China's well-known Little Red Flowers performing troupe.
After more than a decade in China, Macinnis returned to the US to attend Columbia University where her quirky Chinese mannerisms earned her the nickname "weird white Chinese girl" among her classmates, a title that sticks to this day.
Now, Macinnis is a recognized face in many Beijing households as the host of several programs on CCTV and a regular guest on Chinese talk shows.
"This is exactly where I want to be," she said. "I wouldn't know life anywhere else."
While her opportunity came at a young age, when there was still "an element of wow associated with being a foreigner", Macinnis said China is still teeming with possibilities for those looking to realize their dreams in showbiz.
"Definitely in entertainment there's a better chance at getting somewhere or being on TV here than you would in the United States," she said, adding that while many opportunities remain available for foreigners, employers are gradually getting more stringent regarding who they hire.
"But the caliber of people coming to China has risen, people are expecting more now. And that's good, that's what it should be."
For some the "China dream" is not about realizing their own potential, but instead about helping others realize theirs.
Tom Stader, founder of the Library Project, a Xi'an-based non-governmental organization that donates libraries to poor rural schools, first came to China as a marketer for an English-language school in the northeastern city of Dalian, Liaoning province.
Following two years working in Dalian, Stader's life took a dramatic shift after he was charged with finding a charity for the school to participate in as part of its corporate responsibility program.
The 36-year-old American responded by putting a plan into motion to host a book drive that would bring learning materials to a Dalian orphanage, where literature was scarce.
The public's response to the fundraiser was overwhelming, bringing in more than 3,400 yuan ($518) and 600 books over the course of just two days.
Seeing the good he could do for those in need, Stader left the school and began the project which has grown into a massive organization that has donated hundreds of libraries across 21 provinces in China.
"I started this organization with $500 and a couple of friends. Building an organization over years from the ground up has really been a dream come true," Stader said.
He attributes his success to China's warm reception for those with good intentions, as well as the relatively cheap startup costs for businesses.
"The barrier of entry in China is quite small if you look at it in business terms, you don't have to have a lot of money to start something big here," he said.
"We did it slow, we did it grassroots, we showed results, we took risks and those risks played out in a very positive manner."
Stader said if he had remained in the US, the chances that he would have been able to start an NGO would have been quite slim due to the overabundance of organizations already operating there.
"It comes down to the need. There are great organizations already on the ground in the US, I am not sure we'd have been able to provide the impact there that we can here," he said.
It was seeing the need in an untapped market that led Briton Will Yorke, owner of the Vineyard Caf, one of Beijing's up and coming Western restaurants, to venture from life as a club DJ to being a respected business owner in a budding Beijing hutong.
Coming to China in 1997 to study Chinese, Yorke was among the first of the city's expats to bring the electronic art of disc jockeying to the capital, earning him a minor celebrity status in the city's club scene.
After finishing his studies and exploring a variety of jobs, including running a kungfu school, the 35-year-old eventually tapped into his experiences working in restaurants as a youth and found himself in the unlikely position of being a restaurant owner.
"It was a mixture of sheer brilliance and a number of random events that kind of led to this end result," he said.
"It was never my intention to open a restaurant in Beijing, I never thought this is what I'd be doing."
The Vineyard, in Beijing's quickly developing Wudaoying Hutong, was the first Western enterprise to open in the area, catalyzing a boom in boutique businesses along the old alley.
Yorke attributes his success to the fact that China is still a relatively young market for Western concepts.
"It's a matter of saturation, the market isn't as saturated as it is in London. You can still take an idea that might be quite old in the UK and make it quite new here," he said.
Though the "eastern front" may be a ripe market for ideas considered commonplace back home, Yorke admits that this was not what he had in mind when he found himself in the restaurant business.
"It was a series of random circumstances that led me here. I didn't consciously do that, I didn't do it like that. I just opened a restaurant and cooked the food I liked," he said.
While meeting success in China may come by chance for some, for American Elyse Ribbons, a host for China Radio International and a resident of China for almost a decade, the "China dream" is for young professionals seeking a unique early-career experience and willing to push themselves with hard work.
The 30-year-old first came to Beijing in 2001 following a trip with classmates from the University of North Carolina. Though at the time she aspired to work for the US State Department using her language skills in Arabic, China's charm won her over and, after finishing her Chinese-language degree in the US, she was determined to return.
"All of us, myself included, fell in love with Beijing and China," she said.
After returning to China in 2002 intending to study traditional Chinese medicine in order to use her skills in the West, Ribbons quickly realized that the medical field was not for her and began experimenting with the varying job opportunities Beijing had to offer, from English teaching to working as a translator for the American Center for Disease Control in Beijing.
Ribbons finally found her niche in the theater in 2006 after spending three weeks in Paris writing her own screenplay I Heart Beijing examining the social stereotypes of foreigners and Chinese in China.
Following the success of her play, Ribbons established herself in the capital's drama scene and has since put on six more productions.
She said while China may offer expats a quicker chance of success than in the West, the room for career growth, especially in the theater, is often limited.
"There's more opportunity in China to get your foot in the door, but once your foot's in getting the rest of your body through is difficult," Ribbons said.
"You've got to be stubborn and have perseverance, that's how you push yourself through the door."
She said while expats in China may be given unique chances, such as playing the role of a TV host simply based on the fact that they're foreign, the opportunities often have little room for advancement.
"You get the introductory opportunities, but to break through the glass ceiling takes a lot of work," she said. .
Foreigners difficult to buy house in China
Buying a house in the city you adopt is a major commitment. In China, that decision may embroil you in situations you never imagined. Shi Yingying examines the pros and cons.
While local residents complain about escalating property prices from Guangzhou to Beijing, the comparative value for money still tempts foreign investors, especially those who have lived and worked in Chinese cities for a long time. With China's growing importance as a major international financial power coupled with the property boom post-Olympics and post-World Expo, more and more foreign buyers are considering riding on the dragon's tail. What holds them back, however, is the bizarre paperwork, the obscurity of the Chinese real estate market and ever-changing regulations and controls.
"Those not really committed simply avoid the mess and just rent," said American David Sutton, who has gone through the process of buying and selling properties in Shanghai and Sanya in Hainan. "Foreigners who buy here are more committed to China and they believe it is worth taking the risk."
But for those who are unfamiliar with the minefields in real estate, they may end up getting into trouble, like Christopher Palmer did.Palmer had already put a down payment on his Baoshan property in 2008 and completed all the necessary paperwork. But, the bank refused to complete the transaction for the mortgage because it said Palmer did not have the proper visa. He was on an L or tourist visa.
"They sprung this on me after I had signed the contracts," said the 35-year-old American who works as an English teacher in Shanghai.
"I understand they want to make sure I will stick around but they had seen all the visas and they knew I had been here for several years, and would not be leaving anytime soon."
While Palmer's frustration is understandable, his story emphasizes the importance of doing enough homework before commitment. The expatriate wanting to put down roots must meet one fundamental principle.
"They must have lived in the city on a residence permit (known as the Z visa) for more than one year ahead of the date of purchase, according to the Opinions on Regulating the Access to and Administration of Foreign Investment in the Real Estate Market (Decree No 171) issued in 2006," says Liu Si from the Real Estate Trading Center in Luwan district.
Related legal documents must also be submitted. These include the work contract, work permit or the proof of one's status as student. All these also need to be notarized, if they are not already in Chinese.
"Imagine a foreigner coming into your country with the intention of buying an apartment with only a tourist visa. Do you think it should be allowed?" Liu says. "This is China, and if you want to buy a property here, you have to follow the proper procedures."
There may be other restrictions, depending on the city. In Shanghai and Beijing, foreigners are only allowed one residential property each.
"The property is to be used for living in and buyers here are required to sign a letter of commitment, stating they wouldn't buy more, with the signatures of their official Chinese names (this can be arranged at the notary office if expatriates don't have one) on the paper," says Liu.
At least property buyers in Shanghai and Beijing can refer to the set of guidelines. Expatriates in Sanya are less lucky.
"The lack of standard, consistent information is a major problem, especially in Sanya. It seems to be very arbitrary," says David Sutton who bought a 209-square-meter ocean-view apartment and had an unpleasant encounter with the local real estate agency.
"Sanya is an outlaw frontier," says Sutton. " I found that the real estate agents' main concern was how to make the most money. They do not serve as advocates for their clients, neither buyer or seller and they are looking out only for themselves. Don't even think of getting into this process without some help of a Chinese friend whom you trust."
Once a buyer is past the initial hurdles and all the papers are delivered, it usually takes another 45 to 90 days to get the process completed. In Beijing, property agents say it normally takes 30 days to get the process completed. If buyers pay off the whole sum at once, the process may take just seven days.
"It is so much easier than in Western countries. I am a European and it took me less than a week to do all the paperwork once I decided to buy my place," says 33-year-old Spanish Mark Larsen who bought a one-bedroom apartment in Xin Zhuang.
"Limit your choice of locations and find a trusty agent," says Yan Ai, who started looking at apartments around Jing'an district last August with her German husband.
Some of the more popular areas that attract foreigners in Shanghai are centralized around Xin Tiandi, Lu Jiazui, Gu Bei and Lian Yang, according to Howard Zhang from Crispins Property Investment.
For Beijing property buyers, high-end apartments in Chaoyang district or luxury villas in Shunyi are preferred by expatriates, says Wang Xiangjing, general manager of Century Realty.
There are a number of real estate companies who specialize in helping expatriates but they may charge more.
The average commission for completing a sale is around one percent of the property price in Shanghai, but Beijing property agents normally charge three percent, which is the upper limit regulated by law. For those who can speak Chinese, a smaller or local real estate agency chain is more affordable. If in doubt, ask a Chinese friend for advice.
After making an offer, the owner and buyer will sign a stamped sales contract. Armed with this piece of paper, foreign buyers can then start shopping around for the best mortgage deals. Loans are available to foreigners from large Chinese banks such as Bank of China, China Construction Bank and international banks such as HSBC and Standard Chartered.
"Expatriates actually enjoy certain advantages in terms of applying for the loans as certain international banks will not consider lending money to Chinese," said Howard Zhang from Crispins.
Once the loan is finalized, all the necessary documents are checked once more by both the agent and the bank. If everything is in order, buyer and seller can then proceed to the district property trading center to transfer the name on the title deed.
And once the name is on the deed, the happy expatriate will have successfully cleared all the hurdles and would now join the ranks of proud owners hanging on to the fastest appreciating pieces of real estate in the world.
While local residents complain about escalating property prices from Guangzhou to Beijing, the comparative value for money still tempts foreign investors, especially those who have lived and worked in Chinese cities for a long time. With China's growing importance as a major international financial power coupled with the property boom post-Olympics and post-World Expo, more and more foreign buyers are considering riding on the dragon's tail. What holds them back, however, is the bizarre paperwork, the obscurity of the Chinese real estate market and ever-changing regulations and controls.
"Those not really committed simply avoid the mess and just rent," said American David Sutton, who has gone through the process of buying and selling properties in Shanghai and Sanya in Hainan. "Foreigners who buy here are more committed to China and they believe it is worth taking the risk."
But for those who are unfamiliar with the minefields in real estate, they may end up getting into trouble, like Christopher Palmer did.Palmer had already put a down payment on his Baoshan property in 2008 and completed all the necessary paperwork. But, the bank refused to complete the transaction for the mortgage because it said Palmer did not have the proper visa. He was on an L or tourist visa.
"They sprung this on me after I had signed the contracts," said the 35-year-old American who works as an English teacher in Shanghai.
"I understand they want to make sure I will stick around but they had seen all the visas and they knew I had been here for several years, and would not be leaving anytime soon."
While Palmer's frustration is understandable, his story emphasizes the importance of doing enough homework before commitment. The expatriate wanting to put down roots must meet one fundamental principle.
"They must have lived in the city on a residence permit (known as the Z visa) for more than one year ahead of the date of purchase, according to the Opinions on Regulating the Access to and Administration of Foreign Investment in the Real Estate Market (Decree No 171) issued in 2006," says Liu Si from the Real Estate Trading Center in Luwan district.
Related legal documents must also be submitted. These include the work contract, work permit or the proof of one's status as student. All these also need to be notarized, if they are not already in Chinese.
"Imagine a foreigner coming into your country with the intention of buying an apartment with only a tourist visa. Do you think it should be allowed?" Liu says. "This is China, and if you want to buy a property here, you have to follow the proper procedures."
There may be other restrictions, depending on the city. In Shanghai and Beijing, foreigners are only allowed one residential property each.
"The property is to be used for living in and buyers here are required to sign a letter of commitment, stating they wouldn't buy more, with the signatures of their official Chinese names (this can be arranged at the notary office if expatriates don't have one) on the paper," says Liu.
At least property buyers in Shanghai and Beijing can refer to the set of guidelines. Expatriates in Sanya are less lucky.
"The lack of standard, consistent information is a major problem, especially in Sanya. It seems to be very arbitrary," says David Sutton who bought a 209-square-meter ocean-view apartment and had an unpleasant encounter with the local real estate agency.
"Sanya is an outlaw frontier," says Sutton. " I found that the real estate agents' main concern was how to make the most money. They do not serve as advocates for their clients, neither buyer or seller and they are looking out only for themselves. Don't even think of getting into this process without some help of a Chinese friend whom you trust."
Once a buyer is past the initial hurdles and all the papers are delivered, it usually takes another 45 to 90 days to get the process completed. In Beijing, property agents say it normally takes 30 days to get the process completed. If buyers pay off the whole sum at once, the process may take just seven days.
"It is so much easier than in Western countries. I am a European and it took me less than a week to do all the paperwork once I decided to buy my place," says 33-year-old Spanish Mark Larsen who bought a one-bedroom apartment in Xin Zhuang.
"Limit your choice of locations and find a trusty agent," says Yan Ai, who started looking at apartments around Jing'an district last August with her German husband.
Some of the more popular areas that attract foreigners in Shanghai are centralized around Xin Tiandi, Lu Jiazui, Gu Bei and Lian Yang, according to Howard Zhang from Crispins Property Investment.
For Beijing property buyers, high-end apartments in Chaoyang district or luxury villas in Shunyi are preferred by expatriates, says Wang Xiangjing, general manager of Century Realty.
There are a number of real estate companies who specialize in helping expatriates but they may charge more.
The average commission for completing a sale is around one percent of the property price in Shanghai, but Beijing property agents normally charge three percent, which is the upper limit regulated by law. For those who can speak Chinese, a smaller or local real estate agency chain is more affordable. If in doubt, ask a Chinese friend for advice.
After making an offer, the owner and buyer will sign a stamped sales contract. Armed with this piece of paper, foreign buyers can then start shopping around for the best mortgage deals. Loans are available to foreigners from large Chinese banks such as Bank of China, China Construction Bank and international banks such as HSBC and Standard Chartered.
"Expatriates actually enjoy certain advantages in terms of applying for the loans as certain international banks will not consider lending money to Chinese," said Howard Zhang from Crispins.
Once the loan is finalized, all the necessary documents are checked once more by both the agent and the bank. If everything is in order, buyer and seller can then proceed to the district property trading center to transfer the name on the title deed.
And once the name is on the deed, the happy expatriate will have successfully cleared all the hurdles and would now join the ranks of proud owners hanging on to the fastest appreciating pieces of real estate in the world.
In China, Money Can Often Buy Love
by New York Times
BEIJING — Money really can buy you love in China — or at least that seems to be a common belief in this increasingly materialistic country.
Many personal stories seem to confirm that the ideal mate is the one who can deliver a home and a car, among other things; sentiment is secondary.
However widespread this mercantilist spirit, not everyone thinks it is a good thing. A spate of Chinese films, plays and television shows have raised the question: What is love in an age of breakneck economic growth?
Many Chinese were shocked this year when a female contestant on a popular TV dating show, “If You Are the One,” announced: “I’d rather cry in a BMW than smile on a bicycle.” But others insisted that the contestant, Ma Nuo, now popularly known as “the BMW woman,” was merely expressing a social reality.
Rocketing property prices in recent years have contributed to such feelings, with many people in Beijing and other cities accepting the idea that a woman will pursue a relationship with a man only if he already owns an apartment.
Feng Yuan, a 26-year-old who works in a government education company, tried to set up a friend with a man she thought suitable.
“When she heard he didn’t own an apartment, she refused even to meet him,” recalled Ms. Feng. “She said, ‘What’s the point? Without an apartment, love isn’t possible.”’
Fueling these attitudes is a drumbeat of fear. After three decades of fast-paced, uneven economic growth, there is enormous anxiety among those who feel they are being left behind, lacking the opportunities and contacts to make big money while all around them others prosper and prices soar.
The new creed can be hard, as a 26-year-old cultural events organizer learned.
The man, who asked for anonymity to protect his privacy, earns about 4,000 renminbi, or $600, a month, making even a modest apartment in an unfashionable district of Beijing unaffordable. These homes can cost about $3,000 per square meter, or about $280 per square foot. Housing inflation is severe. Ten years ago, a similar apartment cost about $345 per square meter.
Instead, he tried to impress his girlfriend of three years by saving for a year to buy an iPhone 3. The newer iPhone 4 — a hot status symbol — had just gone on sale. But at about $900, that was beyond his means.
The phone was not enough. Last week, she left him, citing pressure from her parents to find a richer mate.
He is heartbroken, believing, despite all, that his girlfriend truly loved him. “Why else did she live with me for three years?” — albeit in a rented apartment. Yet, he is philosophical, too.
“I understand her situation and the pressure from her family,” he said. “I also understand that her parents want their daughter to find someone who can give her a better life.”
The only way to find love, he said, is to become rich. “The most important thing for me now, is to work and earn a living.” he said. “I need to grow stronger, support myself and my parents, and then my future girlfriend can have a good life.”
Such calculations have their critics. The hard-nosed attitude of Ms. Ma, the BMW woman, earned her a gentle reprimand recently from the film director Zhang Yimou. In an interview in The South China Morning Post, a Hong Kong newspaper, he urged young people to re-examine their values.
“I don’t think economic advancement and our yearning for love are mutually exclusive,” he said.
Mr. Zhang, who turns 59 on Sunday, represents an older generation that remembers the more egalitarian, if also poorer and more politically repressive, Maoist era, before the economic changes that unleashed the scramble for material advancement.
His latest film, “Under the Hawthorn Tree,” depicts the innocent love between a teacher, Jing Qiu, and a geologist, Lao San. Set in 1975 toward the end of the Cultural Revolution, and without a BMW in sight, the film shows the teacher spending quite a lot of time smiling on her sweetheart’s bicycle. Love is the thing, it concludes.
Other productions have joined the debate.
“Fight the Landlord,” a play by Sun Yue that premiered in Shanghai last month, is another ringing defense of love in an age of materialism.
A character known as B, grilled by a potential mother-in-law about her very ordinary income, yells: “Don’t think that because I have nothing to be proud of you can insult and destroy me!”
“I have my dignity and pride,” B says, “and I don’t want to turn love, which I value so much, into something vulgar and pale!”
A new film, “Color Me Love,” celebrates the cult of materialism but also comes down, somewhat, on the side of love. Modeled on “The Devil Wears Prada,” and with product placement for Hermès, Versace and Diesel, it follows poor but gorgeous Fei as she arrives in Beijing to intern at a fashion magazine.
“Fei, one day you’ll understand,” Zoe, her glamorous editor, cautions her. “Nothing is as important as the person you’ll spend the rest of your life with.”
A tumultuous courtship with a wacky artist named Yihong ends up with the couple united in New York. A closing shot shows her in his arms, a diamond on her finger. The real fantasy, perhaps, is love plus money.
Ms. Feng, who had failed to find a match for her apartmentless friend, said the demands that many Chinese women make on prospective mates reflected weakness, not power. Lower in status, they fear not getting what they want in life, and look to men to provide it.
“Women are very dependent,” she said. “I blame them. Why can’t they work hard and buy a house together with their man? But very few women today think like that.”
Few Chinese men do either, reinforcing the rules of the game. For the 26-year-old events organizer, losing his love to money was justifiable.
“We didn’t need to waste time on a relationship that was doomed to vanish,” he said.
Many personal stories seem to confirm that the ideal mate is the one who can deliver a home and a car, among other things; sentiment is secondary.
However widespread this mercantilist spirit, not everyone thinks it is a good thing. A spate of Chinese films, plays and television shows have raised the question: What is love in an age of breakneck economic growth?
Many Chinese were shocked this year when a female contestant on a popular TV dating show, “If You Are the One,” announced: “I’d rather cry in a BMW than smile on a bicycle.” But others insisted that the contestant, Ma Nuo, now popularly known as “the BMW woman,” was merely expressing a social reality.
Rocketing property prices in recent years have contributed to such feelings, with many people in Beijing and other cities accepting the idea that a woman will pursue a relationship with a man only if he already owns an apartment.
Feng Yuan, a 26-year-old who works in a government education company, tried to set up a friend with a man she thought suitable.
“When she heard he didn’t own an apartment, she refused even to meet him,” recalled Ms. Feng. “She said, ‘What’s the point? Without an apartment, love isn’t possible.”’
Fueling these attitudes is a drumbeat of fear. After three decades of fast-paced, uneven economic growth, there is enormous anxiety among those who feel they are being left behind, lacking the opportunities and contacts to make big money while all around them others prosper and prices soar.
The new creed can be hard, as a 26-year-old cultural events organizer learned.
The man, who asked for anonymity to protect his privacy, earns about 4,000 renminbi, or $600, a month, making even a modest apartment in an unfashionable district of Beijing unaffordable. These homes can cost about $3,000 per square meter, or about $280 per square foot. Housing inflation is severe. Ten years ago, a similar apartment cost about $345 per square meter.
Instead, he tried to impress his girlfriend of three years by saving for a year to buy an iPhone 3. The newer iPhone 4 — a hot status symbol — had just gone on sale. But at about $900, that was beyond his means.
The phone was not enough. Last week, she left him, citing pressure from her parents to find a richer mate.
He is heartbroken, believing, despite all, that his girlfriend truly loved him. “Why else did she live with me for three years?” — albeit in a rented apartment. Yet, he is philosophical, too.
“I understand her situation and the pressure from her family,” he said. “I also understand that her parents want their daughter to find someone who can give her a better life.”
The only way to find love, he said, is to become rich. “The most important thing for me now, is to work and earn a living.” he said. “I need to grow stronger, support myself and my parents, and then my future girlfriend can have a good life.”
Such calculations have their critics. The hard-nosed attitude of Ms. Ma, the BMW woman, earned her a gentle reprimand recently from the film director Zhang Yimou. In an interview in The South China Morning Post, a Hong Kong newspaper, he urged young people to re-examine their values.
“I don’t think economic advancement and our yearning for love are mutually exclusive,” he said.
Mr. Zhang, who turns 59 on Sunday, represents an older generation that remembers the more egalitarian, if also poorer and more politically repressive, Maoist era, before the economic changes that unleashed the scramble for material advancement.
His latest film, “Under the Hawthorn Tree,” depicts the innocent love between a teacher, Jing Qiu, and a geologist, Lao San. Set in 1975 toward the end of the Cultural Revolution, and without a BMW in sight, the film shows the teacher spending quite a lot of time smiling on her sweetheart’s bicycle. Love is the thing, it concludes.
Other productions have joined the debate.
“Fight the Landlord,” a play by Sun Yue that premiered in Shanghai last month, is another ringing defense of love in an age of materialism.
A character known as B, grilled by a potential mother-in-law about her very ordinary income, yells: “Don’t think that because I have nothing to be proud of you can insult and destroy me!”
“I have my dignity and pride,” B says, “and I don’t want to turn love, which I value so much, into something vulgar and pale!”
A new film, “Color Me Love,” celebrates the cult of materialism but also comes down, somewhat, on the side of love. Modeled on “The Devil Wears Prada,” and with product placement for Hermès, Versace and Diesel, it follows poor but gorgeous Fei as she arrives in Beijing to intern at a fashion magazine.
“Fei, one day you’ll understand,” Zoe, her glamorous editor, cautions her. “Nothing is as important as the person you’ll spend the rest of your life with.”
A tumultuous courtship with a wacky artist named Yihong ends up with the couple united in New York. A closing shot shows her in his arms, a diamond on her finger. The real fantasy, perhaps, is love plus money.
Ms. Feng, who had failed to find a match for her apartmentless friend, said the demands that many Chinese women make on prospective mates reflected weakness, not power. Lower in status, they fear not getting what they want in life, and look to men to provide it.
“Women are very dependent,” she said. “I blame them. Why can’t they work hard and buy a house together with their man? But very few women today think like that.”
Few Chinese men do either, reinforcing the rules of the game. For the 26-year-old events organizer, losing his love to money was justifiable.
“We didn’t need to waste time on a relationship that was doomed to vanish,” he said.
Laura A. Williams, Ann Veeck (1998), "AN EXPLORATORY STUDY OF CHILDREN’S PURCHASE INFLUENCE IN URBAN CHINA", in Asia Pacific Advances in Consumer Research Volume 3, eds. Kineta Hung and Kent B. Monroe, Provo, UT : Association for Consumer Research, Pages: 13-19. Asia Pacific Advances in Consumer Research Volume 3 , 1998 Pages 13-19
AN EXPLORATORY STUDY OF CHILDREN’S PURCHASE INFLUENCE IN URBAN CHINA
Laura A. Williams , San Diego State University, U.S.A.
Ann Veeck , Louisiana State University, U.S.A.
ABSTRACT -
The one-child policy in the People’s Republic of China has created a generation of only children in many urban areas. Popularly called xiao huang di, or little emperors, these only children are widely believed to be an important market force. For this reason, urban China offers a unique environment in which to study the influence of children in family purchase decision-making. The objective of this study is to explore to what extent U.S. findings related to the purchase influence of children are applicable in the newly emerging market economies of urban China. To this end, research propositions are developed and preliminary results from a study of food consumption activities are presented.
INTRODUCTION
In the late 1970’s in the People’s Republic of China, two radical sets of policies were initiated, each with dramatic, nation-transforming results. The first was the wide-sweeping economic reforms that have opened the Chinese economy to the outside world and led to a remarkable growth in GNP, averaging near 10% annually in the last fifteen years. The second was the draconian population control measures that, while showing very recent signs of relaxation (Kahn 1997), have led to a generation of urban dwellers growing up as only children.
While numerous interesting outcomes are associated with each of these sets of policies, the interaction of these effects has led to a particularly intriguing phenomenon. Stated plainly, precisely when Chinese adults are suddenly experiencing a new environment of consumption choice and are enjoying increased spending power, 50 million urban Chinese children are growing up in the singular position to enjoy the benefits of a consumer culture, with no siblings to compete for the spoils. Popularly called xiao huang di, or little emperors, these only children are widely believed to be spoiled by doting parents, grandparents, other relatives, and friends (Goll 1995; Johnstone 1996). Hoping to reap the benefits of this phenomenon, many manufacturers and retailers, both Chinese and international, are zeroing in on urban children, targeting youngsters with a large assortment of goods and services, from Sesame Street (Tung 1997) to Wahaha nutritional drinks (Kaye 1993) to Barbie dolls (Parker-Pope and Bannon 1997).
Indeed, there is evidence that a large proportion of the spending money of urban Chinese families is allocated to expenses associated with their children, with estimates hovering near 50% (Davis and Sensenbrenner 1999; Xi 1996). But, to what extent the popularly-believed myth that these spoiled children hold their parents’ pocketbooks in their hands holds true is unclear. There is some evidence that parents’ sensibilities may prevail over the selfish desires of children. The presence of strong family values that place a high priority on children’s educational and physical development may lead to parents being much more willing to spend money on products that enhance their offsprings’ education and health rather than on those that are coveted by their children (Chu and Ju 1993; Davis and Sensenbrenner 1999; Scary 1996). Altogether, there remains a need to examine the extent and in what ways urban Chinese children influence their families’ spending patterns.
Given this backdrop, urban China offers a unique environment in which to study the influence of children in family purchase decision-making. Largely investigated in the U.S., this area of research would benefit greatly from the additional understanding of cross-national nuances. One important study by McNeal and Ji (1996) of 626 urban Chinese households suggested that urban Chinese children may have the highest purchasing influence in the world, pointing to the need for further investigation as to how and why Chinese children exert these influences.
The objective of this study is the explore to what extent U.S. findings related to the purchase influence of children are applicable in the newly emerging market economies of urban China. To do so, the paper will proceed as follows. First, using the research conducted to date on American children as a framework, a number of propositions related to the purchase influence of urban Chinese children will be developed. Then, the verity of the propositions will be examined for consistency with the findings of preliminary data collected on food consumption behaviors in urban China. It is hoped that this research will begin to uncover similarities and differences between American and urban Chinese children’s influence on purchase decisions.
LITERATURE REVIEW AND RESEARCH PROPOSITION DEVELOPMENT
Research on the influence of American children in family purchase decision-making dates back to the 1960s when Berey and Pollay (1968) conducted a study on the child’s role as influencer in cereal purchase decisions. Since that time, several studies have examined children’s influence. It has been found that children exert varying degrees of influence on family decision processes and that children’s influence varies by product, child, parental and family characteristics (Mangleburg 1990).
Although these findings have been replicated across studies, the samples have largely been only in the United States. To date, few studies have examined the universality of these findings with samples from other cultures. This research begins to address this issue by developing research propositions for the study of urban Chinese children. In order to develop research propositions, the following procedure will be followed. First, a summary of the theory developed to date will be provided. This will be followed by a discussion of what variation is expected in urban Chinese families.
Product Decisions
Numerous studies of American children have shown that child influence on family purchase decisions varies by product. For example, Foxman and Tansuhaj (1988) studied the impact of product category and product importance on the relative influence of family members in purchase decisions. They found that children have more influence in the selection of products for which the child is a primary user or consumer. For example, research indicates that children are influential in the purchases of cereal (Belch et al 1985), vacations (Belch et al 1985; Jenkins 1979), toys (Burns and Harrison 1985), and movies (Darley and Lim 1986).
As with American families, it is expected that urban Chinese children will exert great influence on purchases of products for their primary consumption. A recent survey of urban Chinese families’ grocery shopping behavior revealed that children select almost half of the products bought, almost double the amount of influence typically accorded to American children. On average, an urban Chinese family was found to spend $1077 on groceries per year, $448 of which was determined by the child. The products with which children were shown to have a large amount of influence included beverages, snacks, and dairy products, all product categories in which children are the primary consumers (McNeal and Wu 1995).
In addition, it is expected that Chinese children will also have a large amount of influence on purchase decisions that affect the entire family. Research has found urban Chinese children to be influential in the selection of leisure activities for the family. Since the introduction of the long weekend, a decree by the Chinese government changing the workweek from 48 to 40 hours, and the change in the school week from 34 to 30 hours, families have had more leisure time. The choice of how to spend that time has been primarily left to the child (McNeal and Ji 1996). In fact, one study shows that children decide on leisure destinations in 80 percent of urban Chinese families (McNeal and Ji 1996). Another stdy, conducted in Beijing, found that children often selected restaurants on behalf of their families, with fast food restaurants often being the first choice (Yan 1999). Other evidence of the influence of children is implied by the amount of advertising dollars spent promoting directly to children. Asian Business magazine reports that in 1995, $13 million was spent in advertising targeted toward children aged 4 to 12. Thus, the following research proposition is suggested:
P1: Urban Chinese children will exert great influence in the selection of products for their own and their families’ consumption.
Decision-Making Processes
A number of studies have assessed American children’s influence on family decision processes. Across these studies, American children exerted the most influence during problem recognition and search stages (Szybillo and Sosanie 1977; Nelson 1978) and the least influence during the choice stage (Szybillo and Sosanie 1977; Nelson 1978; Belch et al 1985). In addition, children exerted little influence on the decisions of how much to spend (Szybillo and Sosanie 1977; Jenkins 1979; Belch et al 1985), where to go (Belch et al 1985; Jenkins 1979), and transportation mode (Jenkins 1979).
In contrast, urban Chinese children are expected to exert influence in all stages, including problem recognition, search, and choice. In addition, it is felt that urban Chinese children will exert influence in decisions of where to go and the transportation mode. In a study of 626 urban Chinese families, McNeal (1996) found that children were said to recommend the transportation mode for the family in 69% of family travels. In addition, children were accorded influence in many aspects of shopping decisions. In 70% of the families, children decided when to shop and where to shop. Only the decision of where to stay during travel was found to be primarily a parental decision, although children expressed opinions in 26% of the families. Thus, the following research proposition is suggested,
P2: Urban Chinese children will exert influence in all stages of the decision-making process.
Child and Family Characteristics
A number of studies have examined how demographic variables specific to the child and his/her family affect children’s influence. For example, research indicates that American children have more influence in purchase decision making as they grow older (Atkin 1978; Darley and Lim 1986; Moschis and Mitchell 1986; Nelson 1978; Ward and Wackman 1972). In addition to the child’s age, the gender of the child may affect his/her influence in family decisions. One study found that female children are more influential than male children and that children who earn income have more influence in purchase decisions than those children who do not (Moschis and Mitchell 1986).
Other results from the U.S. indicate that children who are members of middle class and higher income families may have more influence in purchase decisions than children in low income, low social class families (Atkin 1978; Moschis and Mitchell 1986; Nelson 1978). In addition, children who live in single parent households may have greater influence than children in dual parent households (Darley and Lim 1986). Finally, in large families, children are more likely to be involved in decision-making processes (Nelson 1978).
Some of the U.S. findings concerning child and family characteristics are expected to hold in China, some are expected to be irrelevant, and at least one is expected to vary. One of the U.S. findings that is irrelevant for urban Chinese families is the finding involving family size. For the past seventeen years, virtually all urban families have been restricted to one offspring. With little variation in family size, it is not appropriate to examine the effect of number of children on purchase influence. However, it is important to point out that as of quite recently, in select areas including the huge metropolis of Shanghai, the one-child policy is being revised to a two-child policy (Kahn 1997). As such, in the future, family size could become an important variable in the purchase influence of children in urban China.
Another U.S. finding that is largely irrelevant compares single-parent to dual-parent households. At present, too few single parent households exist in China to merit study. Again, however, change is afoot. With the enactment of more liberal divorce laws, the divorce rate has been steadily climbing in urban areas. In the cities of Shanghai and Beijing, the current divorce rate is reportedly as high as 25% (Chen 1995). This too may merit study in future years.
One of the U.S. findings that can be expected to hold in urban China is that children from higher income families will exert more influence on purchase decisions than will children from lower income families. Lower income families in China are still struggling to pay for basic necessities such as staple foods and rudimentary clothing. As such, these families will spend little on the products with which children typically have the most influence, such as leisure activities and snack foods. While the one-child phenomena ensures that child-related expenditures will be more uniform across income levels than would be the case with larger families (Davis and Sensenbrenner 1999), lower income families do not have the luxury of allowing their children to contribute to purchase decisions. This leads to the following proposition:
P3: Urban Chinese children from higher income families will exert more influence on purchase decisions than will children from lower income families.
Further, similar to the U.S. finding, it is expected that as urban Chinese children growolder, they will have more influence on family purchase decisions. This follows from the fact that the purchase decisions on which children may exert influence, such as expenditure of leisure time and transportation, require knowledge and experience that can only be acquired with age. That proposition can be stated as follows:
P4: Older urban Chinese children will exert more influence on purchase decisions than will younger urban Chinese children.
One important difference from the U.S. findings related to child characteristics is expected for urban Chinese children. Given the fact that most urban Chinese children are currently only children, it is expected that male and female children should have equal influence in purchase decisions. That is, with no competition from siblings, the gender of the child should not affect a child’s influence. This proposition is supported by a study of Shanghai children that found that parents of boys and girls spent approximately equal amounts on educational expenses and toys (Davis and Sensenbrenner 1999). Thus, the following proposition should follow:
P5: Male and female urban Chinese children will have equal influence in purchase decisions.
In summary, studies have found that American children exert varying degrees of influence on family decision processes and that American children’s influence varies by product, child, and family characteristics. However, as discussed previously, research has not explored how these relationships may vary across cultures. It is suggested that some variation may be expected in the urban Chinese population. Primary areas where differences from American children are expected include influence exerted in decision processes and the effect of gender on influence.
METHODOLOGY
The data examined in this study originates from a larger study of food consumption patterns that occurred during the 1995-96 academic year in Nanjing, China and involved joint research with the School of International Business of Nanjing University. Nanjing, population 2.8 million, was selected as the site for the study, as it is fairly representative of cities in China that are experiencing change in the 1990s. While the primary purpose of the research was not to investigate the purchase influence of children, it became a secondary theme as the study unfolded. The major study used multi-method ethnographic field methods to place consumption influences in their full environmental context. Thedata from three of these methods-nonparticipant observations, focus groups, and in depth interviews-were analyzed to uncover themes related to the purchase influence of children. Each of these methods will be briefly described as follows.
The nonparticipant observations involved accompanying twenty informants as they conducted routine food shopping trips. Informants were selected through purposive sampling, i.e. selecting respondents sequentially and judiciously according to issues and questions that arose as the research unfolded (Lincoln and Guba 1985). Variety and contrast was used as a guide to recruitment of respondents (Penaloza 1994), with contrasts including young/old; large household/small household; low income/high income; busy/not busy; household with baby/household with older child. Each formal observation started and ended at the informants’ homes. These consumers were questioned on every step of their shopping trips, including the influences of each consumption choice. The informants were then accompanied home and observed as they and other household members participated in the preparation of a meal. All of these observations were audio-recorded and later important descriptions and quotations were translated and transcribed.
In addition to the observations of these 20 shopping trips, three focus groups, incorporating a total of 26 primary food shoppers, were recorded. Each focus group represented a different age range of consumer, i.e. 25-35, 36-45, and 46-65. Aside from age and food shopping experience, there were no specific requirements for participation in the groups, but an attempt was made to find respondents who were diverse in location (within the city of Nanjing) and profession. The focus groups allowed the in-depth exploration of particular areas of interest, including the effect of the preference of children on consumption. Each focus group was translated and transcribed.
The study also included twenty in depth interviews with retailers, such as a bakery owner, a KFC manager, a McDonald’s manager, and a supermarket manager. As with the nonparticipant observations, the subjects were chosen via purposive sampling, with evolving research interests dictating the choices. Those interviewed addressed a number of topics, including trends in the retail environment and characteristics of consumers. Again, all interviews were translated and transcribed.
To examine the research propositions, data from the observations, focus groups, and interviews were examined to uncover evidence related to the influence of children on consumption activities. Next, these items were assessed vis-a-vis the propositions to examine to what extent the data substantiated the propositions. The findings related to this analysis are presented in the following section.
PRELIMINARY FINDINGS
The overall finding from examination of the data is that, at least in Nanjing, China, children appear to have an overwhelming influence on the their families’ food consumption behavior. Time and time again, parents attributed their choices in food purchases to a desire to please their children. For example, during the focus group for respondents aged 26 to 35, when asked who had the most influence on food buying decisions in their family, the respondents chorused, "My child." Following is a sample of quotes from all three of the focus groups that represent the substantial influence that children appear to have on food buying decisions:
I serve what my child wants. Almost every meal, I ask her what she’d like. (Female, 30)
First we meet the desires of our grandchild, and then our daughter and son-in-law. We don’t care what we eat. Our grandchild likes her meals to be varied, so I try to change the food and breakfast to satisfy her. (Female, 67)
I buy food every day after work...I mainly consider what my child wants when I buy food. (Female, 40)
Each time I buy food, my first consideration is my son. I seldom think of myself. I like what my husband and my son like. (Female, 31)
My husband’s family is Hui minority, so beef is our main food. My son also likes to eat beef. Pork never enters my home. Along with beef, I will buy chicken or anything else my son likes to eat. (Female, 33)
The prevalence of making food purchase choices in view of pleasing children is represented particularly poignantly by a 57-year-old female retiree, who, upon being left with an empty nest, expressed bafflement at making food choices:
I am often puzzled when I have to decide what to eat every day. At our age, we have neither old parents nor young children living with us. Since before we always cared about them more than we cared about ourselves, it is only in recent years that we’ve been able to think of ourselves. One should not save money from one’s mouth. I think it’s true that you look after your children by looking after yourselves. So, I pay a lot of attention to nutrition. I will not buy fashionable food. (Female, 57)
Note that the woman has solved her dilemma by continuing to frame her food choices in terms of meeting the needs of her children, even in their absence.
In the following sections, evidence corroborating each of the propositions will be examined.
Product Decisions
The first proposition suggests that children will exert a great amount of influence over products that are primarily for their personal consumption. In addition to the evidence already presented related to food buying, the data also contained a number of examples in which parents felt pressure to buy food items solely for their children. One mother noted that she shopped in supermarkets exclusively to buy products for her 4-year-old son:
I don't use supermarkets very much because they are expensive. I use them to buy packaged food for my child. I buy him potato chips, chocolate, candy, jellies, and salted snacks. I don't like my child to eat too much of that stuff, though, because it will make him lose his appetite and then he won’t eat nomal foods. (Female, 29)
Several parents noted that food advertisers often target their products, particularly snack foods, candy, and, beverages, toward children. Their children would subsequently beg them to buy those products. One mother told the following story related to one advertiser’s hold on her daughter:
I’ve noticed that there are more and more advertisements for children’s food. .. For example, my daughter once bought a kind of candy, a jumping ball, after she saw a commercial for it. She found out that if you collect 28 balls, you can participate in a lottery and have a chance to win a grand prize. So she bothered us to buy her one every day. Once she lost one and then she even cried. (Female, 32)
Another mother seemed to feel that products directly targeted to children were priced artificially high to take advantage of a child-centered society:
Children’s food is getting more and more expensive. Advertisers know that it’s easy to get money from parents in a one-child family. Only children want everything that they see other children with. (Female, 33)
One mother lamented that because children’s products are so expensive, she finds herself sacrificing her own desires to cater to her daughter’s wishes:
Everything for children-what they eat, what they wear, what they play with-are all very expensive. Sometimes we adults want to buy something for ourselves, but in the consideration of what our child needs, likes, etc., our needs get degraded to second place. (Female, 32)
While there was a great deal of evidence that many children successfully apply pressure to obtain products for their personal consumption, there was evidence that children also have a substantial influence on consumption decisions affecting the whole family. This phenomenon will be discussed further in the next section.
Decision-Making Processes
The second proposition relates to the stages in decision-making in which children have influence. The proposition that urban Chinese children exert influence in all stages of the decision process appears to have tentative support from the data. There was evidence that children apply their influence not only during the problem recognition and search stages, but also during the choice stage. Children in Nanjing often accompany their parents on food shopping trips and tend to be quite vocal about their preferences. For example, the mother of a 7-year-old said that she almost always goes shopping with her daughter and involves her in the decisions:
We have fun shopping. My daughter comes with me and it becomes like an adventure. We have fun looking around and choosing things. (Female, 35)
Of course, a child does not have to be physically present during a shopping trip to have influence on choice. One man observed:
Before a family goes to the market, they always ask their children what they want to eat and what they like. (Male, 25)
The son of a man who was a rather accomplished cook went to even more extreme lengths to get what he wanted:
Once my son bought a cookbook. Then he looked through and selected some dishes and asked me to cook them for him. So I did. (Male, 49)
There is also a great deal of evidence that Nanjing children influence where families go to eat. According to parents, the children typically choose Western or Western-style fast food restaurants, particularly KFC. At the time of the study, KFC had a prominent presence in Nanjing, featuring six branches throughout the city. The first McDonald’s opened in Nanjing in January of 1996, halfway through the data collection period, but quickly achieved name recognition with children. The American owner of a Western-style restaurant that had recently closed for lack of business stated that the most certain way to have a successful operation is to cater to children:
...And then there’s the children. If you want to make money in this market, appeal to the children. That’s why the fast food restaurants will be successful. (Owner of failed Western-style restaurant)
The general manager of KFC in Nanjing agreed that children were the key to success in the business:
Now we are trying to establish a reception system at every branch, targeted toward children. Children are our major consumers. Many adults come to KFC just because their children want to. We have opened up a birthday celebration area and added playground equipment to attract children. (General Manager, KFC-Fuzimiao Branch)
Child and Family Characteristics
The final three propositions explore how characteristics of children and their families affect children’s influence on purchase decisions. The first of these propositions, suggesting that children from higher income families will have greater influence on purchase decisions than will children from lower income families, was difficult to evaluate via the data set. Unquestionably, with the newly developed consumer market in Nanjing, all families are bound to be experiencing pressure from their children to buy products that were not available to the parents when they were young. But how the widening income gap affects consumption choice is unclear. One older woman described these recent changes in the consumer environment quite eloquently:
The burden for the younger generation of raising children is quite different than our’s. In our time, tuition was free, and you only had to pay for books. And since everyone had the same standard of living, it wasn’t common to compare one another. So children didn’t have all these desires. That is quite different from now. Children from poor families tend to compare themselves with those from rich families, who wear brand-name clothes and shoes and sing karaoe. They then ask their parents to give them the same things, although their families don’t have high-level salaries. Considering that there is only one child per family and the tradition that parents must try their best to satisfy their children, these parents have a tough burden. So, income gaps are becoming larger and larger. (Female, 56)
Among the respondents, it was observed that the two children from the highest income families were able to successfully influence their parents to buy higher priced products. One was the 7-year-old child mentioned previously who always accompanied her mother on shopping trips, upon which "it becomes like an adventure." This pair was observed on a shopping trip in which the daughter requested, and received, a rather expensive donut. The other high-income family included the mother who bought her four-year-old son "potato chips, chocolate, candy, jellies, and salted snacks." These are all relatively high-ticket items that are difficult for the average Nanjing family to afford to buy regularly.
On the other hand, the parents from the two lowest income families among the respondents both stated that they would not allow their children to eat snack foods or candy for nutritional reasons. The female adult of one of these families stated:
I never buy processed food. It’s too expensive. My teeth are very bad. I ate candy and chocolate when I was little, and they destroyed my teeth. I only want my children to eat fruit. (Female, 29)
The male adult of the other low-income family said:
I don’t shop in supermarkets. All the food is wrapped up and you can’t see in it to know if it’s good or not. It’s hard to choose. Plus, most of the food in the supermarkets are just snacks, and my child doesn’t like snacks. Eating snacks isn’t a good habit. (Male, 35)
Note, however, that according to this father, his daughter has no interest in eating the relatively expensive snack foods. Altogether, while these scant observations do not provide conclusive support, they offer tentative support to the proposition that children have greater influence in higher income families.
The next proposition, related to the characteristics of the child, suggests that older children have more purchase influence than do younger children. Certainly, given that age brings greater purchase experience and knowledge, this proposition makes intuitive sense, regardless of the consumer environment. While all of the parents in the Nanjing sample seem to cater to their children’s desires, the older children’s food requests seemed to be formulated more specifically. For example, the father of a 17-year-old said:
I buy pork chops just for my son. My son, like all young people, likes to eat meat. So, we buy pork and chicken just for him. He doesn’t like fatty product so we buy him lean meat. Also, my son is picky-he likes his chicken stir-fried, not boiled in broth. (Male, 45)
Similarly, the mother of a 15-year-old child stated:
I buy meat about every other day. I buy a lot of meat, because my son is so tall and he eats a lot of meat. Yesterday I bought 15 yuan worth of meat. Our son is the center of our lives. I plan meals with our son’s desires in mind. (Female, 42)
The purchase influence attempts of younger children, on the other hand, tend to be more spontaneously influenced by point-of-purchase cues. Several parents of children in the 59 age range noted that they felt pressured by their children on family outings and shopping excursions to buy snacks and other treats that were prominently displayed. Thus, the proposition that older children affect purchase decisions more than younger children is also tentatively supported by the data.
The final proposition suggests that, given that urban Chinese families are almost exclusively one-child families, female and male children should exercise equal influence on purchase decisions. While this important proposition merits further exploration, there was no evidence among the data that specifically identified the gender of the child as a factor that affected the amount of a child’s influence. Rather, as implied by the data, the overwhelming finding from this study is that most respondents’ children, regardless of gender, exerted substantial influence on food consumption decisions.
DISCUSSION AND FUTURE RESEARCH
The findings of this research support the need to further explore urban Chinese children’s influence on purchase decisions. From a tentative and preliminary examination of research propositions, it is felt that there are important similarities and differences between American and urban Chinese children’s purchase influence. First, urban Chinese children are similar to American children in that they are allotted much influence in purchase decisions where the product is for their primary consumption. American and urban Chinese children are also similar in the amount of influence that they exert on the beginning stages in the decision-making process; that is, both American and urban Chinese children are accorded influence in problem recognition and search stages. Finally, there is also some limited support for the notion that American and urban Chinese children from higher income families exert greater influence in purchase decisions than children from lower income families and that older children have more influence than younger children.
Differences between American and urban Chinese children were also identified. First, as well as influencing decisions related to purchases for their primary use, urban Chinese children are also believed to be influential in purchase decisions involving the whole family. Second, there is some support that urban Chinese children exert influence in more stages of the decision-making process than do American children. Whereas American children are not accorded much influence in choice and decisions about how much to spend, where to go, and transportation mode, urban Chinese children appear to influence these facets of purchase decisions. Third, urban Chinese children may also differ from American children in the amount of influence that is related to the gender of the child. The tentative support for this proposition follows from the fact that urban Chinese families are restricted to one child and from the lack of evidence to the contrary in the present data set.
It is important to point out the limitations of these findings before suggesting avenues for future research. The purpose of this study was an exploratory look at the influence exerted by urban Chinese children. The sample utilized for this study is not considered to be representative and is, therefore, not generalizable to the urban Chinese population. The information provided herein is instead offered as an initial step in the ongoing study of children’s influence in urban China.
The insights provided by this exploratory study ca be utilized to identify areas for further research. First, the research propositions asserted herein should be further investigated with a larger, more representative sample. A second area which may offer interesting insight is to examine the degree to which urban Chinese children’s influence is attributable to direct versus indirect influence. Given the cultural differences present, it is reasonable to believe that urban Chinese children may exert considerable indirect influence. Another interesting research question would be to compare only-children in the United States to urban Chinese children. This comparison would highlight whether or not only-child status is the operant factor in influence differences or whether there is an underlying cultural difference which merits further investigation.
Altogether, these findings and future research suggestions are significant in that they highlight the importance of considering how geographical differences affect children’s influence in family decision-making. This need is supported by the potency of children in the global marketplace. Across twenty-seven industrialized nations, children represent a marketing segment of three-quarters of a billion consumers, equaling almost a quarter of the total population (McNeal 1992). In terms of dollar allocations, these children are conservatively accorded purchasing power of over $86 billion. The sheer size of the market segment of children and the important national differences that are likely to exist related to children’s influence of purchase decisions make this a burgeoning area for research.
The one-child policy in the People’s Republic of China has created a generation of only children in many urban areas. Popularly called xiao huang di, or little emperors, these only children are widely believed to be an important market force. For this reason, urban China offers a unique environment in which to study the influence of children in family purchase decision-making. The objective of this study is to explore to what extent U.S. findings related to the purchase influence of children are applicable in the newly emerging market economies of urban China. To this end, research propositions are developed and preliminary results from a study of food consumption activities are presented.
INTRODUCTION
In the late 1970’s in the People’s Republic of China, two radical sets of policies were initiated, each with dramatic, nation-transforming results. The first was the wide-sweeping economic reforms that have opened the Chinese economy to the outside world and led to a remarkable growth in GNP, averaging near 10% annually in the last fifteen years. The second was the draconian population control measures that, while showing very recent signs of relaxation (Kahn 1997), have led to a generation of urban dwellers growing up as only children.
While numerous interesting outcomes are associated with each of these sets of policies, the interaction of these effects has led to a particularly intriguing phenomenon. Stated plainly, precisely when Chinese adults are suddenly experiencing a new environment of consumption choice and are enjoying increased spending power, 50 million urban Chinese children are growing up in the singular position to enjoy the benefits of a consumer culture, with no siblings to compete for the spoils. Popularly called xiao huang di, or little emperors, these only children are widely believed to be spoiled by doting parents, grandparents, other relatives, and friends (Goll 1995; Johnstone 1996). Hoping to reap the benefits of this phenomenon, many manufacturers and retailers, both Chinese and international, are zeroing in on urban children, targeting youngsters with a large assortment of goods and services, from Sesame Street (Tung 1997) to Wahaha nutritional drinks (Kaye 1993) to Barbie dolls (Parker-Pope and Bannon 1997).
Indeed, there is evidence that a large proportion of the spending money of urban Chinese families is allocated to expenses associated with their children, with estimates hovering near 50% (Davis and Sensenbrenner 1999; Xi 1996). But, to what extent the popularly-believed myth that these spoiled children hold their parents’ pocketbooks in their hands holds true is unclear. There is some evidence that parents’ sensibilities may prevail over the selfish desires of children. The presence of strong family values that place a high priority on children’s educational and physical development may lead to parents being much more willing to spend money on products that enhance their offsprings’ education and health rather than on those that are coveted by their children (Chu and Ju 1993; Davis and Sensenbrenner 1999; Scary 1996). Altogether, there remains a need to examine the extent and in what ways urban Chinese children influence their families’ spending patterns.
Given this backdrop, urban China offers a unique environment in which to study the influence of children in family purchase decision-making. Largely investigated in the U.S., this area of research would benefit greatly from the additional understanding of cross-national nuances. One important study by McNeal and Ji (1996) of 626 urban Chinese households suggested that urban Chinese children may have the highest purchasing influence in the world, pointing to the need for further investigation as to how and why Chinese children exert these influences.
The objective of this study is the explore to what extent U.S. findings related to the purchase influence of children are applicable in the newly emerging market economies of urban China. To do so, the paper will proceed as follows. First, using the research conducted to date on American children as a framework, a number of propositions related to the purchase influence of urban Chinese children will be developed. Then, the verity of the propositions will be examined for consistency with the findings of preliminary data collected on food consumption behaviors in urban China. It is hoped that this research will begin to uncover similarities and differences between American and urban Chinese children’s influence on purchase decisions.
LITERATURE REVIEW AND RESEARCH PROPOSITION DEVELOPMENT
Research on the influence of American children in family purchase decision-making dates back to the 1960s when Berey and Pollay (1968) conducted a study on the child’s role as influencer in cereal purchase decisions. Since that time, several studies have examined children’s influence. It has been found that children exert varying degrees of influence on family decision processes and that children’s influence varies by product, child, parental and family characteristics (Mangleburg 1990).
Although these findings have been replicated across studies, the samples have largely been only in the United States. To date, few studies have examined the universality of these findings with samples from other cultures. This research begins to address this issue by developing research propositions for the study of urban Chinese children. In order to develop research propositions, the following procedure will be followed. First, a summary of the theory developed to date will be provided. This will be followed by a discussion of what variation is expected in urban Chinese families.
Product Decisions
Numerous studies of American children have shown that child influence on family purchase decisions varies by product. For example, Foxman and Tansuhaj (1988) studied the impact of product category and product importance on the relative influence of family members in purchase decisions. They found that children have more influence in the selection of products for which the child is a primary user or consumer. For example, research indicates that children are influential in the purchases of cereal (Belch et al 1985), vacations (Belch et al 1985; Jenkins 1979), toys (Burns and Harrison 1985), and movies (Darley and Lim 1986).
As with American families, it is expected that urban Chinese children will exert great influence on purchases of products for their primary consumption. A recent survey of urban Chinese families’ grocery shopping behavior revealed that children select almost half of the products bought, almost double the amount of influence typically accorded to American children. On average, an urban Chinese family was found to spend $1077 on groceries per year, $448 of which was determined by the child. The products with which children were shown to have a large amount of influence included beverages, snacks, and dairy products, all product categories in which children are the primary consumers (McNeal and Wu 1995).
In addition, it is expected that Chinese children will also have a large amount of influence on purchase decisions that affect the entire family. Research has found urban Chinese children to be influential in the selection of leisure activities for the family. Since the introduction of the long weekend, a decree by the Chinese government changing the workweek from 48 to 40 hours, and the change in the school week from 34 to 30 hours, families have had more leisure time. The choice of how to spend that time has been primarily left to the child (McNeal and Ji 1996). In fact, one study shows that children decide on leisure destinations in 80 percent of urban Chinese families (McNeal and Ji 1996). Another stdy, conducted in Beijing, found that children often selected restaurants on behalf of their families, with fast food restaurants often being the first choice (Yan 1999). Other evidence of the influence of children is implied by the amount of advertising dollars spent promoting directly to children. Asian Business magazine reports that in 1995, $13 million was spent in advertising targeted toward children aged 4 to 12. Thus, the following research proposition is suggested:
P1: Urban Chinese children will exert great influence in the selection of products for their own and their families’ consumption.
Decision-Making Processes
A number of studies have assessed American children’s influence on family decision processes. Across these studies, American children exerted the most influence during problem recognition and search stages (Szybillo and Sosanie 1977; Nelson 1978) and the least influence during the choice stage (Szybillo and Sosanie 1977; Nelson 1978; Belch et al 1985). In addition, children exerted little influence on the decisions of how much to spend (Szybillo and Sosanie 1977; Jenkins 1979; Belch et al 1985), where to go (Belch et al 1985; Jenkins 1979), and transportation mode (Jenkins 1979).
In contrast, urban Chinese children are expected to exert influence in all stages, including problem recognition, search, and choice. In addition, it is felt that urban Chinese children will exert influence in decisions of where to go and the transportation mode. In a study of 626 urban Chinese families, McNeal (1996) found that children were said to recommend the transportation mode for the family in 69% of family travels. In addition, children were accorded influence in many aspects of shopping decisions. In 70% of the families, children decided when to shop and where to shop. Only the decision of where to stay during travel was found to be primarily a parental decision, although children expressed opinions in 26% of the families. Thus, the following research proposition is suggested,
P2: Urban Chinese children will exert influence in all stages of the decision-making process.
Child and Family Characteristics
A number of studies have examined how demographic variables specific to the child and his/her family affect children’s influence. For example, research indicates that American children have more influence in purchase decision making as they grow older (Atkin 1978; Darley and Lim 1986; Moschis and Mitchell 1986; Nelson 1978; Ward and Wackman 1972). In addition to the child’s age, the gender of the child may affect his/her influence in family decisions. One study found that female children are more influential than male children and that children who earn income have more influence in purchase decisions than those children who do not (Moschis and Mitchell 1986).
Other results from the U.S. indicate that children who are members of middle class and higher income families may have more influence in purchase decisions than children in low income, low social class families (Atkin 1978; Moschis and Mitchell 1986; Nelson 1978). In addition, children who live in single parent households may have greater influence than children in dual parent households (Darley and Lim 1986). Finally, in large families, children are more likely to be involved in decision-making processes (Nelson 1978).
Some of the U.S. findings concerning child and family characteristics are expected to hold in China, some are expected to be irrelevant, and at least one is expected to vary. One of the U.S. findings that is irrelevant for urban Chinese families is the finding involving family size. For the past seventeen years, virtually all urban families have been restricted to one offspring. With little variation in family size, it is not appropriate to examine the effect of number of children on purchase influence. However, it is important to point out that as of quite recently, in select areas including the huge metropolis of Shanghai, the one-child policy is being revised to a two-child policy (Kahn 1997). As such, in the future, family size could become an important variable in the purchase influence of children in urban China.
Another U.S. finding that is largely irrelevant compares single-parent to dual-parent households. At present, too few single parent households exist in China to merit study. Again, however, change is afoot. With the enactment of more liberal divorce laws, the divorce rate has been steadily climbing in urban areas. In the cities of Shanghai and Beijing, the current divorce rate is reportedly as high as 25% (Chen 1995). This too may merit study in future years.
One of the U.S. findings that can be expected to hold in urban China is that children from higher income families will exert more influence on purchase decisions than will children from lower income families. Lower income families in China are still struggling to pay for basic necessities such as staple foods and rudimentary clothing. As such, these families will spend little on the products with which children typically have the most influence, such as leisure activities and snack foods. While the one-child phenomena ensures that child-related expenditures will be more uniform across income levels than would be the case with larger families (Davis and Sensenbrenner 1999), lower income families do not have the luxury of allowing their children to contribute to purchase decisions. This leads to the following proposition:
P3: Urban Chinese children from higher income families will exert more influence on purchase decisions than will children from lower income families.
Further, similar to the U.S. finding, it is expected that as urban Chinese children growolder, they will have more influence on family purchase decisions. This follows from the fact that the purchase decisions on which children may exert influence, such as expenditure of leisure time and transportation, require knowledge and experience that can only be acquired with age. That proposition can be stated as follows:
P4: Older urban Chinese children will exert more influence on purchase decisions than will younger urban Chinese children.
One important difference from the U.S. findings related to child characteristics is expected for urban Chinese children. Given the fact that most urban Chinese children are currently only children, it is expected that male and female children should have equal influence in purchase decisions. That is, with no competition from siblings, the gender of the child should not affect a child’s influence. This proposition is supported by a study of Shanghai children that found that parents of boys and girls spent approximately equal amounts on educational expenses and toys (Davis and Sensenbrenner 1999). Thus, the following proposition should follow:
P5: Male and female urban Chinese children will have equal influence in purchase decisions.
In summary, studies have found that American children exert varying degrees of influence on family decision processes and that American children’s influence varies by product, child, and family characteristics. However, as discussed previously, research has not explored how these relationships may vary across cultures. It is suggested that some variation may be expected in the urban Chinese population. Primary areas where differences from American children are expected include influence exerted in decision processes and the effect of gender on influence.
METHODOLOGY
The data examined in this study originates from a larger study of food consumption patterns that occurred during the 1995-96 academic year in Nanjing, China and involved joint research with the School of International Business of Nanjing University. Nanjing, population 2.8 million, was selected as the site for the study, as it is fairly representative of cities in China that are experiencing change in the 1990s. While the primary purpose of the research was not to investigate the purchase influence of children, it became a secondary theme as the study unfolded. The major study used multi-method ethnographic field methods to place consumption influences in their full environmental context. Thedata from three of these methods-nonparticipant observations, focus groups, and in depth interviews-were analyzed to uncover themes related to the purchase influence of children. Each of these methods will be briefly described as follows.
The nonparticipant observations involved accompanying twenty informants as they conducted routine food shopping trips. Informants were selected through purposive sampling, i.e. selecting respondents sequentially and judiciously according to issues and questions that arose as the research unfolded (Lincoln and Guba 1985). Variety and contrast was used as a guide to recruitment of respondents (Penaloza 1994), with contrasts including young/old; large household/small household; low income/high income; busy/not busy; household with baby/household with older child. Each formal observation started and ended at the informants’ homes. These consumers were questioned on every step of their shopping trips, including the influences of each consumption choice. The informants were then accompanied home and observed as they and other household members participated in the preparation of a meal. All of these observations were audio-recorded and later important descriptions and quotations were translated and transcribed.
In addition to the observations of these 20 shopping trips, three focus groups, incorporating a total of 26 primary food shoppers, were recorded. Each focus group represented a different age range of consumer, i.e. 25-35, 36-45, and 46-65. Aside from age and food shopping experience, there were no specific requirements for participation in the groups, but an attempt was made to find respondents who were diverse in location (within the city of Nanjing) and profession. The focus groups allowed the in-depth exploration of particular areas of interest, including the effect of the preference of children on consumption. Each focus group was translated and transcribed.
The study also included twenty in depth interviews with retailers, such as a bakery owner, a KFC manager, a McDonald’s manager, and a supermarket manager. As with the nonparticipant observations, the subjects were chosen via purposive sampling, with evolving research interests dictating the choices. Those interviewed addressed a number of topics, including trends in the retail environment and characteristics of consumers. Again, all interviews were translated and transcribed.
To examine the research propositions, data from the observations, focus groups, and interviews were examined to uncover evidence related to the influence of children on consumption activities. Next, these items were assessed vis-a-vis the propositions to examine to what extent the data substantiated the propositions. The findings related to this analysis are presented in the following section.
PRELIMINARY FINDINGS
The overall finding from examination of the data is that, at least in Nanjing, China, children appear to have an overwhelming influence on the their families’ food consumption behavior. Time and time again, parents attributed their choices in food purchases to a desire to please their children. For example, during the focus group for respondents aged 26 to 35, when asked who had the most influence on food buying decisions in their family, the respondents chorused, "My child." Following is a sample of quotes from all three of the focus groups that represent the substantial influence that children appear to have on food buying decisions:
I serve what my child wants. Almost every meal, I ask her what she’d like. (Female, 30)
First we meet the desires of our grandchild, and then our daughter and son-in-law. We don’t care what we eat. Our grandchild likes her meals to be varied, so I try to change the food and breakfast to satisfy her. (Female, 67)
I buy food every day after work...I mainly consider what my child wants when I buy food. (Female, 40)
Each time I buy food, my first consideration is my son. I seldom think of myself. I like what my husband and my son like. (Female, 31)
My husband’s family is Hui minority, so beef is our main food. My son also likes to eat beef. Pork never enters my home. Along with beef, I will buy chicken or anything else my son likes to eat. (Female, 33)
The prevalence of making food purchase choices in view of pleasing children is represented particularly poignantly by a 57-year-old female retiree, who, upon being left with an empty nest, expressed bafflement at making food choices:
I am often puzzled when I have to decide what to eat every day. At our age, we have neither old parents nor young children living with us. Since before we always cared about them more than we cared about ourselves, it is only in recent years that we’ve been able to think of ourselves. One should not save money from one’s mouth. I think it’s true that you look after your children by looking after yourselves. So, I pay a lot of attention to nutrition. I will not buy fashionable food. (Female, 57)
Note that the woman has solved her dilemma by continuing to frame her food choices in terms of meeting the needs of her children, even in their absence.
In the following sections, evidence corroborating each of the propositions will be examined.
Product Decisions
The first proposition suggests that children will exert a great amount of influence over products that are primarily for their personal consumption. In addition to the evidence already presented related to food buying, the data also contained a number of examples in which parents felt pressure to buy food items solely for their children. One mother noted that she shopped in supermarkets exclusively to buy products for her 4-year-old son:
I don't use supermarkets very much because they are expensive. I use them to buy packaged food for my child. I buy him potato chips, chocolate, candy, jellies, and salted snacks. I don't like my child to eat too much of that stuff, though, because it will make him lose his appetite and then he won’t eat nomal foods. (Female, 29)
Several parents noted that food advertisers often target their products, particularly snack foods, candy, and, beverages, toward children. Their children would subsequently beg them to buy those products. One mother told the following story related to one advertiser’s hold on her daughter:
I’ve noticed that there are more and more advertisements for children’s food. .. For example, my daughter once bought a kind of candy, a jumping ball, after she saw a commercial for it. She found out that if you collect 28 balls, you can participate in a lottery and have a chance to win a grand prize. So she bothered us to buy her one every day. Once she lost one and then she even cried. (Female, 32)
Another mother seemed to feel that products directly targeted to children were priced artificially high to take advantage of a child-centered society:
Children’s food is getting more and more expensive. Advertisers know that it’s easy to get money from parents in a one-child family. Only children want everything that they see other children with. (Female, 33)
One mother lamented that because children’s products are so expensive, she finds herself sacrificing her own desires to cater to her daughter’s wishes:
Everything for children-what they eat, what they wear, what they play with-are all very expensive. Sometimes we adults want to buy something for ourselves, but in the consideration of what our child needs, likes, etc., our needs get degraded to second place. (Female, 32)
While there was a great deal of evidence that many children successfully apply pressure to obtain products for their personal consumption, there was evidence that children also have a substantial influence on consumption decisions affecting the whole family. This phenomenon will be discussed further in the next section.
Decision-Making Processes
The second proposition relates to the stages in decision-making in which children have influence. The proposition that urban Chinese children exert influence in all stages of the decision process appears to have tentative support from the data. There was evidence that children apply their influence not only during the problem recognition and search stages, but also during the choice stage. Children in Nanjing often accompany their parents on food shopping trips and tend to be quite vocal about their preferences. For example, the mother of a 7-year-old said that she almost always goes shopping with her daughter and involves her in the decisions:
We have fun shopping. My daughter comes with me and it becomes like an adventure. We have fun looking around and choosing things. (Female, 35)
Of course, a child does not have to be physically present during a shopping trip to have influence on choice. One man observed:
Before a family goes to the market, they always ask their children what they want to eat and what they like. (Male, 25)
The son of a man who was a rather accomplished cook went to even more extreme lengths to get what he wanted:
Once my son bought a cookbook. Then he looked through and selected some dishes and asked me to cook them for him. So I did. (Male, 49)
There is also a great deal of evidence that Nanjing children influence where families go to eat. According to parents, the children typically choose Western or Western-style fast food restaurants, particularly KFC. At the time of the study, KFC had a prominent presence in Nanjing, featuring six branches throughout the city. The first McDonald’s opened in Nanjing in January of 1996, halfway through the data collection period, but quickly achieved name recognition with children. The American owner of a Western-style restaurant that had recently closed for lack of business stated that the most certain way to have a successful operation is to cater to children:
...And then there’s the children. If you want to make money in this market, appeal to the children. That’s why the fast food restaurants will be successful. (Owner of failed Western-style restaurant)
The general manager of KFC in Nanjing agreed that children were the key to success in the business:
Now we are trying to establish a reception system at every branch, targeted toward children. Children are our major consumers. Many adults come to KFC just because their children want to. We have opened up a birthday celebration area and added playground equipment to attract children. (General Manager, KFC-Fuzimiao Branch)
Child and Family Characteristics
The final three propositions explore how characteristics of children and their families affect children’s influence on purchase decisions. The first of these propositions, suggesting that children from higher income families will have greater influence on purchase decisions than will children from lower income families, was difficult to evaluate via the data set. Unquestionably, with the newly developed consumer market in Nanjing, all families are bound to be experiencing pressure from their children to buy products that were not available to the parents when they were young. But how the widening income gap affects consumption choice is unclear. One older woman described these recent changes in the consumer environment quite eloquently:
The burden for the younger generation of raising children is quite different than our’s. In our time, tuition was free, and you only had to pay for books. And since everyone had the same standard of living, it wasn’t common to compare one another. So children didn’t have all these desires. That is quite different from now. Children from poor families tend to compare themselves with those from rich families, who wear brand-name clothes and shoes and sing karaoe. They then ask their parents to give them the same things, although their families don’t have high-level salaries. Considering that there is only one child per family and the tradition that parents must try their best to satisfy their children, these parents have a tough burden. So, income gaps are becoming larger and larger. (Female, 56)
Among the respondents, it was observed that the two children from the highest income families were able to successfully influence their parents to buy higher priced products. One was the 7-year-old child mentioned previously who always accompanied her mother on shopping trips, upon which "it becomes like an adventure." This pair was observed on a shopping trip in which the daughter requested, and received, a rather expensive donut. The other high-income family included the mother who bought her four-year-old son "potato chips, chocolate, candy, jellies, and salted snacks." These are all relatively high-ticket items that are difficult for the average Nanjing family to afford to buy regularly.
On the other hand, the parents from the two lowest income families among the respondents both stated that they would not allow their children to eat snack foods or candy for nutritional reasons. The female adult of one of these families stated:
I never buy processed food. It’s too expensive. My teeth are very bad. I ate candy and chocolate when I was little, and they destroyed my teeth. I only want my children to eat fruit. (Female, 29)
The male adult of the other low-income family said:
I don’t shop in supermarkets. All the food is wrapped up and you can’t see in it to know if it’s good or not. It’s hard to choose. Plus, most of the food in the supermarkets are just snacks, and my child doesn’t like snacks. Eating snacks isn’t a good habit. (Male, 35)
Note, however, that according to this father, his daughter has no interest in eating the relatively expensive snack foods. Altogether, while these scant observations do not provide conclusive support, they offer tentative support to the proposition that children have greater influence in higher income families.
The next proposition, related to the characteristics of the child, suggests that older children have more purchase influence than do younger children. Certainly, given that age brings greater purchase experience and knowledge, this proposition makes intuitive sense, regardless of the consumer environment. While all of the parents in the Nanjing sample seem to cater to their children’s desires, the older children’s food requests seemed to be formulated more specifically. For example, the father of a 17-year-old said:
I buy pork chops just for my son. My son, like all young people, likes to eat meat. So, we buy pork and chicken just for him. He doesn’t like fatty product so we buy him lean meat. Also, my son is picky-he likes his chicken stir-fried, not boiled in broth. (Male, 45)
Similarly, the mother of a 15-year-old child stated:
I buy meat about every other day. I buy a lot of meat, because my son is so tall and he eats a lot of meat. Yesterday I bought 15 yuan worth of meat. Our son is the center of our lives. I plan meals with our son’s desires in mind. (Female, 42)
The purchase influence attempts of younger children, on the other hand, tend to be more spontaneously influenced by point-of-purchase cues. Several parents of children in the 59 age range noted that they felt pressured by their children on family outings and shopping excursions to buy snacks and other treats that were prominently displayed. Thus, the proposition that older children affect purchase decisions more than younger children is also tentatively supported by the data.
The final proposition suggests that, given that urban Chinese families are almost exclusively one-child families, female and male children should exercise equal influence on purchase decisions. While this important proposition merits further exploration, there was no evidence among the data that specifically identified the gender of the child as a factor that affected the amount of a child’s influence. Rather, as implied by the data, the overwhelming finding from this study is that most respondents’ children, regardless of gender, exerted substantial influence on food consumption decisions.
DISCUSSION AND FUTURE RESEARCH
The findings of this research support the need to further explore urban Chinese children’s influence on purchase decisions. From a tentative and preliminary examination of research propositions, it is felt that there are important similarities and differences between American and urban Chinese children’s purchase influence. First, urban Chinese children are similar to American children in that they are allotted much influence in purchase decisions where the product is for their primary consumption. American and urban Chinese children are also similar in the amount of influence that they exert on the beginning stages in the decision-making process; that is, both American and urban Chinese children are accorded influence in problem recognition and search stages. Finally, there is also some limited support for the notion that American and urban Chinese children from higher income families exert greater influence in purchase decisions than children from lower income families and that older children have more influence than younger children.
Differences between American and urban Chinese children were also identified. First, as well as influencing decisions related to purchases for their primary use, urban Chinese children are also believed to be influential in purchase decisions involving the whole family. Second, there is some support that urban Chinese children exert influence in more stages of the decision-making process than do American children. Whereas American children are not accorded much influence in choice and decisions about how much to spend, where to go, and transportation mode, urban Chinese children appear to influence these facets of purchase decisions. Third, urban Chinese children may also differ from American children in the amount of influence that is related to the gender of the child. The tentative support for this proposition follows from the fact that urban Chinese families are restricted to one child and from the lack of evidence to the contrary in the present data set.
It is important to point out the limitations of these findings before suggesting avenues for future research. The purpose of this study was an exploratory look at the influence exerted by urban Chinese children. The sample utilized for this study is not considered to be representative and is, therefore, not generalizable to the urban Chinese population. The information provided herein is instead offered as an initial step in the ongoing study of children’s influence in urban China.
The insights provided by this exploratory study ca be utilized to identify areas for further research. First, the research propositions asserted herein should be further investigated with a larger, more representative sample. A second area which may offer interesting insight is to examine the degree to which urban Chinese children’s influence is attributable to direct versus indirect influence. Given the cultural differences present, it is reasonable to believe that urban Chinese children may exert considerable indirect influence. Another interesting research question would be to compare only-children in the United States to urban Chinese children. This comparison would highlight whether or not only-child status is the operant factor in influence differences or whether there is an underlying cultural difference which merits further investigation.
Altogether, these findings and future research suggestions are significant in that they highlight the importance of considering how geographical differences affect children’s influence in family decision-making. This need is supported by the potency of children in the global marketplace. Across twenty-seven industrialized nations, children represent a marketing segment of three-quarters of a billion consumers, equaling almost a quarter of the total population (McNeal 1992). In terms of dollar allocations, these children are conservatively accorded purchasing power of over $86 billion. The sheer size of the market segment of children and the important national differences that are likely to exist related to children’s influence of purchase decisions make this a burgeoning area for research.
Buy China Stamps
People’s Republic of China Stamps
Chinese stamps printed by the People’s Republic of China (PRC) started with the issuance of a four-piece set in October 1949. Marking the first session of the Chinese People’s Consultative Political Conference, depicted on the stamps were a lantern and the Gate of Heavenly Peace.This first printing also marked the beginning of a unique numbering system for Chinese commemorative and special stamps, with a denotation comprised of the stamp issuance series and which part of the series it represented. Regular, definitive stamps continued to use the standard value markings.
First Printing of People’s Republic Of China Definitive Stamps
While the early years of the PRC saw initial use of surcharged stamps from the previous regime, the new government put out its first series of definitive stamps in early 1950. Featuring the Gate of Heavenly Peace against a cloud backdrop, the nine values assigned to the new issues ranged from $200 to $10,000. Following years several modifications of the stamp designs were instituted, six in all, with the final alterations issued in 1954.
Chinese Stamps of the 1950’s
The 1950’s saw the issuance of several commemorative stamps, marking conferences and denoting political goals of the young government. Particularly noteworthy was a set of 40 stamps depicting various physical exercises, illustrating the different stances used in performing them. Issued in 1952 and paired with a radio program promoting fitness, it demonstrated the central government penchant for innovativeness in marketing to its citizens.
Modern Era Chinese Stamps
Moving into the modern era beginning in the 1960’s, Chinese stamps enjoyed impressive growth as the nation’s postal network grew exponentially. Modernization of postal services resulted in a big increase of postage stamp usage, with Chinese stamp issuances continuing to mark important historical dates and figures, as well as geographical and political highlights.
Acquiring Chinese stamps allow a collector to assemble a virtual philatelic history album of one of the world’s great cultures. Collecting contemporary PRC issuances offers even new adherents a means to own an affordable and colourful Chinese stamp collection.
Japanese Occupation China Stamps Japanese Occupation China Stamps
Upon the invasion of Manchuria by the Japanese in 1931, the newly created Manchukuo state created and disseminated its own stamps in China.With the arrival of World War II, many Chinese stamps, older issues, were surcharged.
As the Nationalist government struggled with Communist forces at the end of World War II, postal authorities were able to release issues honouring these events:
Imperial China Stamps Imperial China Stamps
Imperial China Stamps have become a point of great interest to stamp collectors the world over and many online stores have a large section dedicated specifically to this unique sector of philately.Whether you are just starting a China stamp collection or already collect stamps and are starting to consider choosing from the diverse and colorful China stamps available, you will not be disappointed in their connection with history.
The postal service in China began using official government-issued stamps in February 1897 with the establishment of the ‘Imperial Chinese Post Office.’ Prior to that, the Chinese postal service was reserved for subscriber mail and for official correspondence within the diplomatic and governmental service as part of the Customs Postal Service.
The initial stamps utilized by the new Imperial Post Office consisted of overprinted versions of stamps used by the defunct Customs Postal Service. New stamps for the brand new national postal service were printed and distributed only in the latter part of 1897.Surviving stamps from before this period are of course very valuable finds.
Dragon, Carp, and Wild Goose China Stamps
The new stamps issued by the Imperial Post Office, with the words ‘IMPERIAL CHINESE POST’ inscribed, commenced sale in August of 1897, offered in prices ranging from one half cent to five dollars. Etched with images of a dragon, carp and wild goose, respectively representing the low, middle and higher value stamps, the lithographed issues used watermarked paper. These first Imperial China stamps were actually printed in Japan.
The next year brought about subtle changes in the appearance of the three stamp versions with printing switching to London and the inscription changing to ‘CHINESE IMPERIAL POST’. The watermarked paper was thicker and the lithographic quality of the inscriptions improved.
New prints issued in 1899 saw the commencement of non-watermarked stock for the stamps, which continued untill the abolishment of the Empire in 1911. The use of the three basic values continued with some cosmetic changes, including the change of some of the colors used.
Emperor Xuantong Commemorative Stamps
The Imperial China Post Office issued its first commemorative stamps in 1909, marking the anniversary of Emperor Xuantong’s first year of reign. Stamps depicting the ‘Temple of Heaven’ in Beijing were issued in three different values with distinctive colors.
Chinese Stamps for Tibet Occupation
Beginning in 1909 until the latter part of 1911, Imperial China occupied Tibet, resulting in the Dalai Lama fleeing to India with his government. The Chinese Post opened five offices in Central Tibet during the first two years, followed by several more in eastern Tibet in 1913 and 1914. The Imperial Post Office issued a special set of 11 stamps for Tibet in 1911.
In October 1911, Dr. Sun Yat-Sen overthrew the Imperial Dynasty and the Republic of China was established. In 1912 Imperial China and the Imperial Post Office were disbanded. Imperial Post Office stamp issues a coveted inclusion for any Chinese stamp collection. Their rarity and uniqueness as the first modern postal stamps in China make them highly sought after for any serious collector.
Imperial China Stamps continue to delight with both their colorful designs and their strong connection to history.Even modern day China stamps add a complex and dazzling diversity to any stamp collectors treasure.
How to obtain China postage stamps?
How to Obtain China Postage Stamps: Building Your New Collection
Putting together a China stamps collection is a rewarding process, but for someone new to the hobby, they may not even have the first idea of how to obtain China postage stamps.They just see all those beautiful designs and get a glimpse of the history of China stamps, and they are hooked.Well—not to worry, my friend, because you as you discover the process of unearthing great finds you will realize that this is where the hobby really becomes addicting.
Here are some great places to find your China stamps.
China Post Office
Buying stamps at post offices in China, or knowing someone who can, is the best way to purchase newly minted stamps.While they may not be as valuable as vintage China stamps or overprints that make for rare China stamps, they are still beautiful and closely tied to the history of this great country.And you mustn’t forget that every stamp was once new.Stamps today will at some point be worth a lot of money, and who knows—you might get lucky and get a hold of a rare error stamp before it is discovered.
Local Stamp Dealers
Though rapidly being replaced by online dealers, there are still many offline shops that focus on collectable stamps- many of whom also conduct business online as well. Finding these dealers in your area can be as easy as an Internet search or browsing through a business telephone directory, and if are ever fortunate enough to visit China you will have a blast exploring these places on foot and searching for good deals.
Internet Stamp Dealers
Perhaps the most popular way to obtain China postage stamps is from dealers that can found on the Internet. Online dealers have virtually replaced the mail order format that was popular in the past.
The great advantage of online catalogs is that you can browse your choices at your own pace, with no pressure, and in the comfort of your own home. Search engines for stamps are available to help you identify stamps that you already have or that you are thinking about buying.
The visual presentation of stamps available can be enhanced with enlarged pictures that highlight details- a feature that may make one dealer preferable to another, making buying China stamps online preferable to many.
China Stamp Auctions
Stamp auctions can be an exciting way to buy collectable stamps. Before trying to participate in an auction you should plan to visit one first and get a solid idea of how the operate. It is important that you be knowledgeable about the stamps you might want to bid on, so do online research and figure out about how much you should consider bidding.
Mail Order
Buying stamps through mail-order catalogues is a traditional way of collecting. Mail-order catalogues, however, are interesting in that they allow you to use the collectable item as its own means of delivery. Catalogues are available at local dealers and can be requested online.
Stamp Shows
Stamp shows offer an opportunity to mix and mingle with fellow collectors. You can find collectors who are hobbyists or serious connoisseurs of very expensive, rare stamps. Finding shows that feature Chinese stamps can present a great opportunity to network and learn more about them.
When considering how to obtain China postage stamps and putting together the beginning of a great collection, you may want to try all of these at one point or another.One of the fascinating aspects of this hobby is how it all ties together.You have to remember that collecting was not the original intent of stamps, so the industry has evolved on its own and is an enigma in itself.Enjoy!
Chinese stamps printed by the People’s Republic of China (PRC) started with the issuance of a four-piece set in October 1949. Marking the first session of the Chinese People’s Consultative Political Conference, depicted on the stamps were a lantern and the Gate of Heavenly Peace.This first printing also marked the beginning of a unique numbering system for Chinese commemorative and special stamps, with a denotation comprised of the stamp issuance series and which part of the series it represented. Regular, definitive stamps continued to use the standard value markings.
First Printing of People’s Republic Of China Definitive Stamps
While the early years of the PRC saw initial use of surcharged stamps from the previous regime, the new government put out its first series of definitive stamps in early 1950. Featuring the Gate of Heavenly Peace against a cloud backdrop, the nine values assigned to the new issues ranged from $200 to $10,000. Following years several modifications of the stamp designs were instituted, six in all, with the final alterations issued in 1954.
Chinese Stamps of the 1950’s
The 1950’s saw the issuance of several commemorative stamps, marking conferences and denoting political goals of the young government. Particularly noteworthy was a set of 40 stamps depicting various physical exercises, illustrating the different stances used in performing them. Issued in 1952 and paired with a radio program promoting fitness, it demonstrated the central government penchant for innovativeness in marketing to its citizens.
Modern Era Chinese Stamps
Moving into the modern era beginning in the 1960’s, Chinese stamps enjoyed impressive growth as the nation’s postal network grew exponentially. Modernization of postal services resulted in a big increase of postage stamp usage, with Chinese stamp issuances continuing to mark important historical dates and figures, as well as geographical and political highlights.
Acquiring Chinese stamps allow a collector to assemble a virtual philatelic history album of one of the world’s great cultures. Collecting contemporary PRC issuances offers even new adherents a means to own an affordable and colourful Chinese stamp collection.
Japanese Occupation China Stamps Japanese Occupation China Stamps
Upon the invasion of Manchuria by the Japanese in 1931, the newly created Manchukuo state created and disseminated its own stamps in China.With the arrival of World War II, many Chinese stamps, older issues, were surcharged.
As the Nationalist government struggled with Communist forces at the end of World War II, postal authorities were able to release issues honouring these events:
- President Lin Sen, who died in 1943
- The anniversary of Chiang Kai-Shek in October 1945
- The Allied victory in 1945
Imperial China Stamps Imperial China Stamps
Imperial China Stamps have become a point of great interest to stamp collectors the world over and many online stores have a large section dedicated specifically to this unique sector of philately.Whether you are just starting a China stamp collection or already collect stamps and are starting to consider choosing from the diverse and colorful China stamps available, you will not be disappointed in their connection with history.
The postal service in China began using official government-issued stamps in February 1897 with the establishment of the ‘Imperial Chinese Post Office.’ Prior to that, the Chinese postal service was reserved for subscriber mail and for official correspondence within the diplomatic and governmental service as part of the Customs Postal Service.
The initial stamps utilized by the new Imperial Post Office consisted of overprinted versions of stamps used by the defunct Customs Postal Service. New stamps for the brand new national postal service were printed and distributed only in the latter part of 1897.Surviving stamps from before this period are of course very valuable finds.
Dragon, Carp, and Wild Goose China Stamps
The new stamps issued by the Imperial Post Office, with the words ‘IMPERIAL CHINESE POST’ inscribed, commenced sale in August of 1897, offered in prices ranging from one half cent to five dollars. Etched with images of a dragon, carp and wild goose, respectively representing the low, middle and higher value stamps, the lithographed issues used watermarked paper. These first Imperial China stamps were actually printed in Japan.
The next year brought about subtle changes in the appearance of the three stamp versions with printing switching to London and the inscription changing to ‘CHINESE IMPERIAL POST’. The watermarked paper was thicker and the lithographic quality of the inscriptions improved.
New prints issued in 1899 saw the commencement of non-watermarked stock for the stamps, which continued untill the abolishment of the Empire in 1911. The use of the three basic values continued with some cosmetic changes, including the change of some of the colors used.
Emperor Xuantong Commemorative Stamps
The Imperial China Post Office issued its first commemorative stamps in 1909, marking the anniversary of Emperor Xuantong’s first year of reign. Stamps depicting the ‘Temple of Heaven’ in Beijing were issued in three different values with distinctive colors.
Chinese Stamps for Tibet Occupation
Beginning in 1909 until the latter part of 1911, Imperial China occupied Tibet, resulting in the Dalai Lama fleeing to India with his government. The Chinese Post opened five offices in Central Tibet during the first two years, followed by several more in eastern Tibet in 1913 and 1914. The Imperial Post Office issued a special set of 11 stamps for Tibet in 1911.
In October 1911, Dr. Sun Yat-Sen overthrew the Imperial Dynasty and the Republic of China was established. In 1912 Imperial China and the Imperial Post Office were disbanded. Imperial Post Office stamp issues a coveted inclusion for any Chinese stamp collection. Their rarity and uniqueness as the first modern postal stamps in China make them highly sought after for any serious collector.
Imperial China Stamps continue to delight with both their colorful designs and their strong connection to history.Even modern day China stamps add a complex and dazzling diversity to any stamp collectors treasure.
How to obtain China postage stamps?
How to Obtain China Postage Stamps: Building Your New Collection
Putting together a China stamps collection is a rewarding process, but for someone new to the hobby, they may not even have the first idea of how to obtain China postage stamps.They just see all those beautiful designs and get a glimpse of the history of China stamps, and they are hooked.Well—not to worry, my friend, because you as you discover the process of unearthing great finds you will realize that this is where the hobby really becomes addicting.
Here are some great places to find your China stamps.
China Post Office
Buying stamps at post offices in China, or knowing someone who can, is the best way to purchase newly minted stamps.While they may not be as valuable as vintage China stamps or overprints that make for rare China stamps, they are still beautiful and closely tied to the history of this great country.And you mustn’t forget that every stamp was once new.Stamps today will at some point be worth a lot of money, and who knows—you might get lucky and get a hold of a rare error stamp before it is discovered.
Local Stamp Dealers
Though rapidly being replaced by online dealers, there are still many offline shops that focus on collectable stamps- many of whom also conduct business online as well. Finding these dealers in your area can be as easy as an Internet search or browsing through a business telephone directory, and if are ever fortunate enough to visit China you will have a blast exploring these places on foot and searching for good deals.
Internet Stamp Dealers
Perhaps the most popular way to obtain China postage stamps is from dealers that can found on the Internet. Online dealers have virtually replaced the mail order format that was popular in the past.
The great advantage of online catalogs is that you can browse your choices at your own pace, with no pressure, and in the comfort of your own home. Search engines for stamps are available to help you identify stamps that you already have or that you are thinking about buying.
The visual presentation of stamps available can be enhanced with enlarged pictures that highlight details- a feature that may make one dealer preferable to another, making buying China stamps online preferable to many.
China Stamp Auctions
Stamp auctions can be an exciting way to buy collectable stamps. Before trying to participate in an auction you should plan to visit one first and get a solid idea of how the operate. It is important that you be knowledgeable about the stamps you might want to bid on, so do online research and figure out about how much you should consider bidding.
Mail Order
Buying stamps through mail-order catalogues is a traditional way of collecting. Mail-order catalogues, however, are interesting in that they allow you to use the collectable item as its own means of delivery. Catalogues are available at local dealers and can be requested online.
Stamp Shows
Stamp shows offer an opportunity to mix and mingle with fellow collectors. You can find collectors who are hobbyists or serious connoisseurs of very expensive, rare stamps. Finding shows that feature Chinese stamps can present a great opportunity to network and learn more about them.
When considering how to obtain China postage stamps and putting together the beginning of a great collection, you may want to try all of these at one point or another.One of the fascinating aspects of this hobby is how it all ties together.You have to remember that collecting was not the original intent of stamps, so the industry has evolved on its own and is an enigma in itself.Enjoy!
Group Buy Craze in China
Two weeks ago, while surfing the Internet in a carefree mind, I came across a
website broadcasting tickets for Inception, Christopher Nolan’s latest
blockbuster. It was a release show for the highly-anticipated movie at a local
cinema, but surprisingly the ticket was priced at just 20 yuan, as much as 1/3
of a normal fare. Intoxicated by the debut as well as the appealing bargain, I
purchased two special vouchers for the movie. The next evening I went to the
film with a friend of mine and the service lived up to our expectations
regardless of the low price.
My experience
of watching Inception serves as a good example of how online group-buying works
and why it has drawn a large, loyal following recently. So far, I have been
keeping a close eye on various group-buying websites and have bought products
ranging from shopping vouchers to restaurant coupons. All of them were nice
experiences with the convenience and economy taken into consideration.
In general,
group-buying websites function by negotiating deals with retailers and other
businesses. They agree to deliver a large number of customers, mostly in the
hundreds, and in exchange get big discounts on products or services. They make
money by taking commissions, usually a portion of the revenue generated by the
deals, and also through some advertising.
Most of the
sites offer one deal a day. Some guarantee the deals they offer, while others
require that a certain number of customers purchase a product before confirming
the sale. Users can sign up to get notices through e-mail and SNS services like
Twitter and Facebook. After a deal is finally sealed, buyers typically print out
vouchers on the site and take them to the retailer to receive their
discount.
The
group-buying trend first caught on in the United States, where one of the most
popular sites is Groupon.com. It offers deals in around 100 cities and almost
two dozen countries. Groupon, a new word formed by the combination of the
English words "group" and "coupons", refers to the network through which to get
a product or service at a higher discount.
The Groupon
model is also considered as social-based group-buying, since the users tend to
interact effectively across the network in order to achieve the minimum number
of deals that may yield greater discount. The mass self-organized participation
in publicizing a particular group-buying product is usually completed through
SNS sites and instant messaging services. Furthermore, while the number of
participants is increased to a certain extent, this information itself can
enhance the other users’ trust. Therefore, news of the deal spreads around the
cyber world virally
Many SNS
services including micro-blogging sites struggle to demonstrate their value and
profitability model, and even search giant Google has also gone a long time to
explore the advertising revenue model. But Groupon appeared to find a clear
profit model of service charge the moment it came into being. Above all, both
customers, who benefit from group-buying undoubtedly, and businesses in peril of
bringing in losses due to low prices are willing to cooperate. The action of the
latter, though risky, is in reality quite understandable and reasonable. As the
costs of human resources, daily maintenance and other factors at places like
restaurants and spas are fixed, even if no one comes to patronize, the
expenditure per day is still generated.
Thanks to the
relatively simple business model, coupled by the low entry barriers, a large
number of competing sites have emerged as actual replicas of Groupon.com in
China. It is estimated that the current number of group-buying sites in the
country has exceeded 1000. According to Analysys International, trade promoted
by these sites will reach 980 million yuan in 2010. Recently, even the
traditional Internet web giants such as Tencent, Sina, Sohu, and the leading C2C
player Taobao have got the idea of playing the bulk purchase and launched their
independent group-buying services in succession.
Despite the
fierce competition, such sites are confronted with another fundamental problem.
As the key to getting and retaining users is to offer products that they want,
these sites, however, are having trouble building up a sufficient user base
because the immature market in China makes it difficult to add new
products.
To sum up, in
a fast-growing Internet and shopping trend that is proving to be highly
beneficial to both consumers and businesses, the Groupon mode encountered
rampant in China with “1000 war groups” in full swing. The other side, however,
is that the shuffle has started: a lot of lack of resources of sites will
gradually be marginalized and dying.
Custom Search
Property Buyers’ Guide to China
China’s property laws are not easy to see through if you have never been there or are not familiar with local laws and customs. On our journey through the online world of information we came across many contradicting messages and while trying to sort through all the stuff we came up with the following information. To stay true to all the sources we have quoted many and hope the result is a somewhat informative guide to buying real estate in China.
According to a recent report by WorldBank, 120 cities and regions within China have been surveyed for their overall investment climate.
Taken into account were differences in the importance of state-owned enterprises (SOEs) in local industries, over staffing of labor, firm access to bank loans, confidence in protection of property and contract rights and overall adequacy of local transport and power.
Some losses appear measurable since the last survey taken in 2001/2002. Some losses of power in southern China as well as increased taxes and fees have been noted.
We have gathered some information that should help you look in the right directions if you consider investing into the Chinese property market.
According to the report by WorldBank, some of the regions in China have performed better than others. They are ranked according to the best investment climates in the country.
In 2007, 66 out of the 88 land transactions identified by Knight Frank involving foreign investment were located in second tier cities. Nine out of the 66 cities are located in the Pearl River Delta, 18 in the Bohai Rim Region and 13 in the Yangtze River Delta.
The Knight Frank 2008 Report indicates that China’s first tier investment cities are mainly Shanghai, Beijing, Guangzhou and Shenzhen. But with surging land prices and the lack of urban land availability in those cities, property developers have gradually shifted their attention to China’s second tier cities instead.
Buying real estate in China is regulated by strict laws. if you buy through a property agent from overseas, your agent will negotiate on your behalf with the vendor. Once a price has been agreed on, a Customer Confirmation Agreement is signed by all parties and the deposit is held by the agent until all conditions have been met by the parties.
Now, a visit to the Realty Transaction Department will begin the official transfer process. A Property Purchasing Registration Form and a Property Selling Registration Form will have to be completed and filed with the Property Ownership Certificate. Once this has been fulfilled, the Realty Transaction Department will give the vendor and investor a date for the official Realty Transfer Notice to be given.
When this date arrives, all parties or their representatives (lawyers, notaries) meet at the Realty Transaction Department for the finalization of the transaction.
Buying from developers will still invite similar procedures as before. The process might vary from city to city and you are advised to seek legal counsel before you sign anything.
Buyers of Chinese property also need to be aware of the following additional costs:
The legal aspects of property ownership in China are quite detailed. So much so in fact that it is impossible to list them all in this post. The new law has made it a lot harder for overseas investors to buy property in China.
We suggest you use the following site as a starting point to shed light on the whole structure:
The cost of ownership could become massive if buyers were to lose their right to live in China while owing property. If legal battles ensue, they could lose their property in an instant.
Since the law is very strict, it might not be possible for an alien resident to keep hold of the property once they are extradited from the country for any reasons.
Cost of legal counsel, stamp duty, taxes and the cost of property will have to be considered by potential buyers.
Investors who have international residence and want to buy Chinese property for the purpose of renting and building a portfolio need to observe the Chinese rule of property investment. Foreign individuals and foreign companies can buy commercial real estate in China only if they do so in the name of a Chinese corporation either as a Wholly Foreign-Owned Enterprise (WFOE) or Joint Venture (JV) established for this purpose.
This clearly establishes that individuals cannot own Chinese property unless they live in the country by means of legal resident status. Even then, the rule clearly indicates that only one property can be bought and only if the resident has been living in China for longer than one year, either being employed, or as a student. Remember that a way around this is to own commercial property (which can be a buy-to-let property) either as a WFOE or JV.
Many foreign owners of real estate in China ignore the Chinese requirements of individuals income tax law. Therefore they fail to file the appropriate tax returns which can have serious implications. According to the taxation law, taxes are owed on the income earned from the sale of real property and the Chinese government will not approve the property’s sale until the tax issue is resolved (hence paid in full).
Also, in accordance to some rules regarding the forex method, we have an excerpt of the China Blog, explaining the detailed process of converting foreign monies to RMB.
To further step up the fight against “hot money” coming into China for fast and short term profits, three Chinese central governmental departments started a trial check on July 14th to control foreign exchange receipts and exports settlements.
China’s tax rates are progressive and as of March 2008 they are as follows:
According to a recent report by WorldBank, 120 cities and regions within China have been surveyed for their overall investment climate.
Taken into account were differences in the importance of state-owned enterprises (SOEs) in local industries, over staffing of labor, firm access to bank loans, confidence in protection of property and contract rights and overall adequacy of local transport and power.
Some losses appear measurable since the last survey taken in 2001/2002. Some losses of power in southern China as well as increased taxes and fees have been noted.
We have gathered some information that should help you look in the right directions if you consider investing into the Chinese property market.
According to the report by WorldBank, some of the regions in China have performed better than others. They are ranked according to the best investment climates in the country.
- Southeast (Jiangsu, Shanghai, Zhejiang, Fujian, and Guangdong;
- Bohai (Shandong, Beijing, Tianjin, and Hebei);
- Central (Anhui, Henan, Hubei, Hunan, and Jiangxi);
- Northeast (Heilongjiang, Jilin, Liaoning);
- Southwest (Yunnan, Guizhou, Guangxi, Sichuan, Chongqing, and Hainan); and
- Northwest (Shanxi, Shaanxi, Neimenggu, Ningxia, Qinghai, Gansu, and Xinjiang).
In 2007, 66 out of the 88 land transactions identified by Knight Frank involving foreign investment were located in second tier cities. Nine out of the 66 cities are located in the Pearl River Delta, 18 in the Bohai Rim Region and 13 in the Yangtze River Delta.
The Knight Frank 2008 Report indicates that China’s first tier investment cities are mainly Shanghai, Beijing, Guangzhou and Shenzhen. But with surging land prices and the lack of urban land availability in those cities, property developers have gradually shifted their attention to China’s second tier cities instead.
Buying real estate in China is regulated by strict laws. if you buy through a property agent from overseas, your agent will negotiate on your behalf with the vendor. Once a price has been agreed on, a Customer Confirmation Agreement is signed by all parties and the deposit is held by the agent until all conditions have been met by the parties.
Now, a visit to the Realty Transaction Department will begin the official transfer process. A Property Purchasing Registration Form and a Property Selling Registration Form will have to be completed and filed with the Property Ownership Certificate. Once this has been fulfilled, the Realty Transaction Department will give the vendor and investor a date for the official Realty Transfer Notice to be given.
When this date arrives, all parties or their representatives (lawyers, notaries) meet at the Realty Transaction Department for the finalization of the transaction.
Buying from developers will still invite similar procedures as before. The process might vary from city to city and you are advised to seek legal counsel before you sign anything.
Buyers of Chinese property also need to be aware of the following additional costs:
- 3% stamp duty
- 2% maintenance taxation
- 1.5% contract tax
- 0.1% stamp duty for a resale property
The legal aspects of property ownership in China are quite detailed. So much so in fact that it is impossible to list them all in this post. The new law has made it a lot harder for overseas investors to buy property in China.
We suggest you use the following site as a starting point to shed light on the whole structure:
The cost of ownership could become massive if buyers were to lose their right to live in China while owing property. If legal battles ensue, they could lose their property in an instant.
Since the law is very strict, it might not be possible for an alien resident to keep hold of the property once they are extradited from the country for any reasons.
Cost of legal counsel, stamp duty, taxes and the cost of property will have to be considered by potential buyers.
Investors who have international residence and want to buy Chinese property for the purpose of renting and building a portfolio need to observe the Chinese rule of property investment. Foreign individuals and foreign companies can buy commercial real estate in China only if they do so in the name of a Chinese corporation either as a Wholly Foreign-Owned Enterprise (WFOE) or Joint Venture (JV) established for this purpose.
This clearly establishes that individuals cannot own Chinese property unless they live in the country by means of legal resident status. Even then, the rule clearly indicates that only one property can be bought and only if the resident has been living in China for longer than one year, either being employed, or as a student. Remember that a way around this is to own commercial property (which can be a buy-to-let property) either as a WFOE or JV.
Many foreign owners of real estate in China ignore the Chinese requirements of individuals income tax law. Therefore they fail to file the appropriate tax returns which can have serious implications. According to the taxation law, taxes are owed on the income earned from the sale of real property and the Chinese government will not approve the property’s sale until the tax issue is resolved (hence paid in full).
Also, in accordance to some rules regarding the forex method, we have an excerpt of the China Blog, explaining the detailed process of converting foreign monies to RMB.
To further step up the fight against “hot money” coming into China for fast and short term profits, three Chinese central governmental departments started a trial check on July 14th to control foreign exchange receipts and exports settlements.
China’s tax rates are progressive and as of March 2008 they are as follows:
- The tax on an individual’s income is progressive. As of 2008, an individual’s income is taxed progressively at 5% – 45%.
- The 2008 corporate tax rate for domestic and foreign companies is 25%.
- Companies which started their operations before 2008 can enjoy the previous 15% tax rate, or tax holidays for a period defined.
- Small companies pay 20% corporate tax in certain cases.
- An individual’s capital gains taxes in China are at the rate of 20%.
- Capital gains tax for a Chinese company is added to the regular tax.
- A 10% deduction at source is made from the capital gains of a foreign company in China.
- On taxing capital gains from the sale of real estate, when calculating the capital gain the purchase cost is deducted from the sale price at the 20% rate. When the capital gains are in excess of 50% of the purchase price, the rate of capital gains tax fluctuates between 30% – 60%. (It is 60% when the capital gain is over 200% when compared to the cost).
- Individuals and companies who are Chinese residents and are also taxed on their income outside China receive a credit for overseas taxes paid.
- Here are the qualification for residence for an individual:
Permanent residence in China while an individual who has no permanent residence in China but has lived in China for less than 5 years is taxed on his income in China, or overseas income that has its origins in China.
