Grab morning latte from Starbucks, conduct satellite hook-up
from boardroom of skyscraper office, pick up imported cheese and
wine from convenience store on way home to loft apartment. It is a
snapshot of executive life that could as easily be from New York or
Shanghai.
This sense of familiarity has, since the onset of China's
economic miracle, been a major factor in attracting international
business to the big centers of Shanghai, Beijing and Guangzhou.
Each city's economy took off at lightening pace, creating an
enticing environment for thousands of foreign expats, with vibrant
international communities and amenities on par with developed,
Western societies.
But a shift is occurring, with foreign investors increasingly
turning to China's comparatively untapped second-tier cities.
Chinese second-tier cities,
such as Wuhan (top) in Hubei Province, now are home to thousands of
expats: (above, from left) Amanda Marfise, Barb Sturges and Caio de
Araujo. (file photos from China Daily)
As the primary markets continue to mature, and regulatory
measures to cool the economy take effect, inland provinces eyeing
east coast prosperity have raced to improve infrastructure,
bringing a more favorable environment for international business
and higher standards of living.
Consequently, a growing number of expats are shunning China's
traditional hotspots for the provincial capitals and more remote
areas.
Caio de Araujo, of Brazil, is an engineer with a firm from the
United States, in Ningbo, East China's Zhejiang Province. The
45-year-old moved to the industrial city and foreign trade port
with his wife and teenage daughter last year, and has since
witnessed an increased international presence.
"Ningbo is growing a lot. There are huge business opportunities,
and every day more foreigners are coming to town to develop new
businesses or work for companies," de Araujo says.
"When I got there, the expat community was not that big.
Nowadays, you see more foreigners popping up everywhere... there
are six 5-star hotels under development at this moment."
Yet, despite the frantic pace of change, de Araujo says the
city's expat scene is far removed from Shanghai or Beijing.
"Those big cities in China, as any other big city in the world,
have a lot of influence from all over the world. They have a lot of
places you can go and kind of feel at home. So it is easy for
expats to still live their lifestyle, or at least close to it," he
says.
When you live in small cities, the lifestyle is completely
different, even simple tasks turn out to be difficult to adjust to.
Chinese culture is more present. Chinese lifestyle is there and
somehow you have to understand, respect and adjust to it, he
adds.
"I think this is very good because it gives you a broader vision
of the world. I guess you kind of understand you are not the only
human race on earth," de Araujo says.
China business analyst Richard Brubaker predicts the number of
foreigners working in major cities will drop off as infrastructure
in fledgling markets becomes more sustainable.
"It will create opportunities for foreign companies to spread
across China. Expats don't have to be in Shanghai, and they can be
spread across other cities that are more strategic from a marketing
perspective," says the managing director of international business
consultancy, China Strategic Development Partners (www.chinasdp.com).
In a report aimed at foreign investors, Brubaker examined real
estate investment in the three "showcase cities" of Shanghai,
Beijing and Guangzhou, which fed an overheated property market with
potential returns of more than 200 percent in just a few years.
"As the cities most accessible to foreign businessmen, they
offered a degree of familiarity unique in China, and as such,
distracted investors from looking to other markets as investment
destinations. Unlike second tier provincial capitals, these cities
were considered to be safe bets in a country littered with buyer
beware stories," Brubaker says.
"Historically less developed than Shanghai, Beijing and
Guangzhou, second-tier cities sought to catch up by rushing to
build the infrastructure necessary to attract large sums of
investment.
"So, while the primary markets commanded the attention of many
foreign investors, new airports, central business district,
arterial highways and universities were being planned and
constructed in the provincial capitals. The result has been nothing
less than the complete transformation of these cities (and) real
estate investment has followed."
Chongqing resident Amanda Marfise is one of just a few thousand
expats in a city of some 31 million people. The American
schoolteacher says Chongqing Municipality is a large city
undergoing rapid development, but is still without a strong foreign
presence.
Since arriving in the manufacturing hub in Southwest China
earlier this year, Marfise has been struck by the dichotomy of old
and new China, characterizing Chongqing.
"Forks and knives are seldom found. English menus are a complete
rarity, and imported liquor and food is only found in a couple of
specific stores and restaurants," the 26-year-old says.
"After going to Shanghai for National Day holiday, I wrote to
family and friends saying I felt as though I had returned to
America for a few days. When I was in Shanghai, I could have easily
pictured myself staying there. I made friends within five days of
visiting.
"But, after returning to Chongqing, I realized, for right now,
experiencing this - this is China. While there have been many
difficult days, the people are as hardworking as anyone I have ever
seen. They are, for the most part, friendly and warm-hearted,"
Marfise says.
Among China's provincial capitals, Chengdu of Sichuan Province
and Chongqing have emerged as frontrunners in attracting foreign
manufacturers, that benefit from lower labor and rental costs, as
well as proximity to raw materials. In the north, Dalian, home to
one of Asia's best ports, is an up-and-coming center for trade and
tourism, and had already drawn more than 10,000 foreign
ventures.
Brubaker says Xi'an, in Northwest China's Shaanxi Province, and
Chengdu have established themselves as centers for hi-tech
investment, while Chongqing and Wuhan have capitalized on their
history as heavy industry bases to attract investment in auto and
steel.
While opportunities in these larger provincial centers are
drawing foreign attention, other expats are attracted by the
lifestyle offered in rural parts of China. Though now based in
Beijing, long-term China resident Barb Sturges found unexpected joy
living in isolated areas, including Qufu, East China's Shandong
Province, and Lhasa, in Southwest China's Tibet Autonomous
Region.
"Although I was raised as a city girl in the US, I have found
that I actually like living in rural areas and being surrounded by
farmlands. In Qufu, I remember the corn being scattered everywhere
to dry, and I thought this was so fascinating," the 58-year-old
teacher says.
"Life was simpler there, and I remember being very happy. It was
also easy to connect with my students because they lived so close.
An additional reason I liked living in the countryside was because
I had more time to prepare for teaching - no time spent with
shopping or traffic!"
Following her first post at Qufu Normal University, Sturges
taught at the Holiday Inn in Lhasa, and later at the police
university located in an isolated part of Daxing County, outside
Beijing. In these rural settings, she felt "a sense of genuine
immersion in the culture" and forged strong personal
connections.
"I believe it may be easier to get to know people in smaller
towns, primarily because people are living closer and therefore it
is easier to connect. However, whether you are living in a large or
small place, I have found it is important to be the one to take the
initiative and reach out," Sturges says.
(China Daily November 16, 2007)
