CHINA

Nick Jones Alvaro Gonzalez Mike Hopkins Michael Carmazzi Thorne Warner

Cultural, Political, and Economic Observations and Differences of

China compared to the United States

MTSE 2014

KONG

• Hong Kong was originally a colony of the British Empire.

• Hong Kong remained a part of the British Empire until 1997.

• Hong Kong is a special administrative Chinese region

because no changes will take place there within the next 50

years.

HONG KONG

HONG KONG

• The people of Hong Kong have better access to the east and western

cultures of China.

• Hong Kong has the highest population density in the world

• Hong Kong does not follow standard Chinese traditions.

• The demographic of Hong Kong is composed of Cantonese, Chinese

(mainland), British, Indian and Jewish nationalities.

• Cantonese is the main language in Hong Kong.

• Hong Kong government adopted a trilingual policy in 1997. (Chinese

mandarin, Cantonese and English).

HONG KONG CULTURE

• Chinese Lunar New Year, Ching Ming Festival (Qing Ming Festival) and

Mid-Autumn Festival.

• Good Friday, Eastern Monday, Christmas Day and other western

festivals.

• Taoism, Buddhism, Christianism, Islam and other religious beliefs.

Taoism and Buddhism are the most common in Hong Kong.

HONG KONG CULTURE Holidays &

Religious Belief

HONG KONG CULTURE Holidays &

Religious Belief

• The people of Hong Kong are more economically free than ever

before (2014)

• The minimum wage salary is $800 USD per month

• People have trade freedom, investment freedom and financial freedom

• The high level of labor freedom provides a solid economy

• Hong Kong is open to international commerce with a 0 percent

average tariff and few barriers to foreign investments

• There are no restrictions on foreign banks and they have mutual

treatment with foreign and local banks

HONG KONG ECONOMY

• The Basic Law is a constitutional document which says that Hong Kong is an

autonomous special administrative region of the People's Republic of China,

except in defense and foreign affairs.

• The Basic Law guarantees that autonomy for 50 years and create a system of

governance that is imposed by a Chief Executive and Executive Council.

• The Chief Executive is the head of the Hong Kong Region. This person is

responsible for implementing the Basic Law, promulgating laws, manage budget

and making decisions on government policies.

• Executive Council assists the Chief Executive on matters relating to the

introduction of bills and subsidiary legislation

HONG KONG POLITICS

HONG KONG POLITICS

• They have similar economic practices, such as, trade freedom, investment freedom and

financial freedom.

• The minimum salary is $800 USD in Hong Kong and $1785 USD in USA per month.

• They have different religions beliefs, such as, Taoism and Buddhism are the most

common in Hong Kong and; Christian and protestant are the most common in USA

• They have free speech

• They have differences in political system. USA has a solid democratic system and Hong

Kong does not. The Government of the Hong Kong SAR (Special Administrative Region)

is composed by the Chief Executive, Executive Council and members of mini parliament.

All are dominated by small circle of pro-Beijing elites. People would prefer to have a

democratic system there.

HONG KONG VS POLITICS

The LAS VEGAS of the Far EastMACAU

• Cultural Name: Macanese

• In China’s southern Guangdong province, it was a Portuguese colony until 20 Dec.

1999

• Founded in 1557.

• The name Macau is derived from the Chinese A-ma-gao Bay of A-Ma

• A-ma was the name of a Chinese goddess, popular with the Chinese seafarers and

fishermen

• Now, Macau is a special administrative region within the Peoples Republic of China

• Agreed to recognize the city’s special social and economic system for a period of

fifty years

MACAU CULTURE

MACAU CULTURE

• The basic law of the Macau Special Administration Region of the

Peoples Republic of China is the constitution of Macau

• Macau has special administrative region status, which provides

constitutional guarantees for implementing the policy of “one

country, two systems”.

• Macau functions directly under the Central Government of China in

Beijing, which controls the foreign affairs and defense of Macau but

otherwise grants the region “a high degree of autonomy.”

MACAU POLITICS

• GDP- 43.6 Billion (2012)

• Population- 600,000 (95% Chinese, 3% Portuguese, 2% Mixed)

• Considered an economic bridge for mainland china

• Growing extremely fast with a 20% increase in revenue from 2012-

2013 (Gambling GDP- 38 Billion- 45 Billion)

MACAU ECONOMY

• Both had reputations of struggling with prostitution, crime, and

money laundering

• Population is the same give or take a few thousand people (600,000)

• While Macau trumps Vegas in gambling, Vegas has much better

entertainment

• Different demographic

• Similar cities with different focuses

• Total GDP Gambling: Vegas 6.5 Billion Macau 38 Billion (2012)

• Total GDP: Vegas 97Billion Macau 44 Billion (2012)

MACAU VS LAS VEGAS

SHANGHAI 上海

Consumption

• China’s Middle Class spends <> $100 a day

• Malls, instead of Starbucks,

at every corner.

SHANGHAI ECONOMICS

Free Market

vs.

Mainland Censorship

• Harsh difference between HK and

Shanghai Advertisements.

Growing up, not out.

• Pearl TV Tower & the dramatic jump in the Shanghai Skyline

Insider’s Business Tip!

• From a business person

in the hotel lounge.

SHANGHAI ECONOMICS

Growing up, not out.

• Pearl TV Tower & the dramatic jump in the Shanghai Skyline

SHANGHAI ECONOMICS

Growing up, not out.

• World Expo Sites

SHANGHAI ECONOMICS

Differences in Self-Expression

• A truck vs. a handbag.

• What you own, and what you don’t.

Shopping Mentality

• Dine in, Dine out. An “Amazon” mentality.

History and it’s Different Paths

• Both young countries, but with disparate culture foundations.

SHANGHAI CULTURE

Censorship

• Advertisements Plummet, as does the range of what they portray.

• First experience of blocked mass communication mediums.

Control

• Land Ownership, leading to the value shift.

SHANGHAI CULTURE

XI’AN

XI’AN

XI’AN ECONOMY• Important industries: equipment manufacturing, tourism, and

service outsourcing

• Manufacturing makes up the largest sector (44.5%)

• Population: (2010 census)

Sub-provincial city: 8,467,837

Urban: 6,501,200

Metro: 7,168,005

• GDP: 324.15 billion RMB (~54 Billion USD - 2012)

GDP is increasing annually by 14.5%, on average

XI’AN CULTURE

• One of the oldest cities in China, with more than 3,100 years of

history, the city was known as Chang'an before the Ming dynasty.

• Thirteen feudal dynasties established their capitals in the province

during a span of more than 1,100 years, from the Zhou Dynasty to the

Tang Dynasty.

• Starting point of the famous Silk Road to the West

XI’AN CULTURE

XI’AN TERRA COTTA• Terra Cotta Warriors: Qin Dynasty 221 BC – 206 BC

• Some pottery was uncovered in 1974 by a group of farmers digging

a well.

• The Terra Cotta Warriors and Horses are the most significant

archeological excavations of the 20th century.

• Over 7,000 pottery soldiers, horses, chariots, and even weapons

have been unearthed from the three pits

• It was listed by UNESCO (United Nations Educational, Scientific, and

Cultural Organization) in 1987 as one of the world cultural heritages.

XI’AN TERRA COTTA

XI’AN TERRA COTTA

• Both one of oldest cities in their respective nations

•Boston has more revolutionary history, (independence

from England)

•Xi’an has a longer history, based on culture and politics

•Both rely on tourism as a staple of their economy. Xi’an

historical monuments and ruins. Boston universities and

historical sites

BEIJING

BEIJING The Capital of the Peoples Republic of China

BEIJING• Population: ~22 million (2nd largest behind Shanghai)

Fastest growing city in China

• Pop. rose 40% from 2000 to 2010

(According to 2013 report from JP Morgan)

• Political, cultural, and educational center of China with national

treasures dating back almost 2000 years

• Beijing Capital Airport is now the busiest in the world

• 256/500 of world largest companies are invested in Beijing

The Capital of the Peoples Republic of China

• Beijing people consider themselves as a traditional-

style, historically influenced people who are less

concerned with entrepreneurism and money;

• Rather, they focus on government, arts, and

education.

BEIJING CULTURE

BEIJING CULTUREEducation

70+ Universities

12 Universities

Tiananmen Square vs.

National MallBEIJING CULTURE

Forbidden City vs.

National MonumentsBEIJING CULTURE

18841420

Government Presence

BEIJING CULTURE

Kennedy Center vs.

Beijing ArtsBEIJING CULTURE

• Mao Zedong, Founding member of Communist Party of China

(1927) and the founder of the Peoples Republic of China (1949)

BEIJING POLITICS

• Ranked by Forbes as

3rd most powerful person

on earth

BEIJING POLITICS

• Xi Jinping, appointed in 2013 to

• General Secretary of Peoples Republic of China

• President of Communist Party of China

• Chairman of the Central Military Commission

• Studied Chemical Engineering,

Marxist philosophy, ideological

education, and Law (J.D.)

BEIJING POLITICS

• Communist Party of China (CPC) is the ruling party in China

• Beijing has a municipal government with a mayor/vice mayors

• The National Peoples Congress is located in Beijing with 2,987

members (Largest parliamentary body in the world). It is

overwhelmingly controlled by the Communist Party of China

(CPC)

BEIJING POLITICS Military Presence

Obvious PresenceRoutine / Situational

• Beijing hosts the headquarters of 44 of the world’s top 500

countries (2nd to only Tokyo)

• Foreign Direct Investment (FDI) rose $2 to $7 billion from ‘00-’11

• Personal transit grew from 600,000 cars to 5 million from ‘00-’11

• Beijing added 15 subway lines from ‘00-’11

BEIJING ECONOMICS

BEIJING ECONOMICSBuilt 6 years ago

Will double the size in 2015

• Beijing’s 2004-2020 Master Plan

• Est. Beijing as a high-profile international city by 2020

• Focus on modern services and advanced manufacturing

• Est. Beijing as the

• Center high level international exchanges

• Center for media, culture, education and scientific research

• Center of government and economic planning

• Intercontinental transportation hub

BEIJING ECONOMICS

• Both are the capital of their respective countries, and focal point

for national unity

• Both recognize and proudly display heritage

• Architecturally, both cities favor expansive cityscapes with

generally less high rise buildings (vs NYC, Shanghai)

• MEGA-Commuter cities

• DC is less industrial vs. Beijing

BEIJING VS WASHINGTON

CHINA: WHAT WE NOTICED

• Major differences from USA

• Pollution

• Sanitation (Food & Amenities)

• Water

• WIFI available everywhere, though censorship is evident

• Mobile entertainment (Watching multimedia on the go)

• Consumables are cheap

• Constant shopping, never-ending marketplaces

• Lack of Immigrants