Category Archives: Travel

Hangzhou and Disruptive Technology

Hangzhou is regarded by many Chinese people as the country’s most beautiful city. Its Xili (West Lake) is garlanded by stunning villas that have inspired artists and poets for centuries. Its delicate pagodas are filled with newlywed couples spooning over the water. The lake’s sub-divided waters are criss-crossed by delicate stone and wooden bridges and garrotted by a 3km grassy causeway. Around it but within the city’s boundaries are lovely restaurants, mountains, many excellent museums, rice fields and tea plantations all easily accessed by bus or bike. It’s always been famous within China and was even briefly capital during the Southern Song dynasty.

But apart from plaudits from Marco Polo it is little appreciated by westerners. For those that follow these sort of things – it briefly made primetime news when in hosted the G20 Summit last year. But few of our gweilo friends knew about it, or had visited it.

Maya and I went there during the mid-autumn festival in October. Along with Chinese New Year it is the biggest migrations of mammals anywhere in the world, no matter what David Attenborough silkily tells you about his wildebeest. Shockingly, Maya and I weren’t Hangzhou’s only visitors that week. Hangzhou’s gazetted must-see tourist attractions were rammed with tourists from seven in the morning till bed-time. I’ve always been baffled by how Mao persuaded his fledgling People’s Liberation Army to tour China’s inhospitable southern perimeter in Long March. Then I saw Chinese
mass tourism in action. Being frog-marched by a flag touting commander is in the genes.

As well as being beautiful Hangzhou has been punching above its weight in communications, trade and technological disruption for two thousand years. Fourteen hundred years ago it became the southern-most point of the Grand Canal. This immense and extraordinary engineering feat was constructed to transfer food from the arable Yangzi water basin to the hungry northern Yellow River basin. The canal is a 1000 miles long and its locks allow boats to climb 40 metres to bridge the different water sheds, thus integrating the North and South Chinese economies which has been so important in holding the immense state together the past two millenia.

More recently it has become a technology powerhouse. Not quite Shenzhen but it is the city where Jack Ma was born, studied and set up Alibaba. This US$460 billion market company is by some measures the world’s biggest internet company. Not only does this company own Taobao the world’s largest online market place by volume, it also runs Alipay China’s biggest online payment system as well as a whole swathe of other concerns including the second largest instant messaging site in China, a share in Didi the ride sharing app that beat Uber as well as my local paper the South China Morning Post. (You can hear so-so talk show host Barack Obama speak to Jack Ma about innovation, business and environment here).

But the real disruption I wanted to write about is the humble bicycle. Private ownership of bicycles was an emblem of communist China. Seas of clanking bikes threading through packed Chinese streets was a cinema cliché. Then it became car choked congestion. But in Xi Jinping’s communism with a Chinese flavour market economy bikes have made a comeback, and they’re shared. It seems a paradox but the sharing culture and other forms of communal ownership are displacing private vehicles in China. Bike sharing is being bankrolled by the tech giants: Alibaba (Ofo), Tencent (Mobike) and in Hangzhou half a dozen others. The industry is hugely competative with network economies of scale similar to online market places, and it’ll take time for the industry to settle down.

Our hotel owner suggested Maya and I download one of the app. (We communicated with him via Wechat’s incredibly effective speech translator.) For the next three days we’d pick up and drop off bikes bikes where we liked. Holding our phones over the bikes’ QR code unlocked it, when we were done we locked the bikes up again. There were occasional hitches but it worked pretty smoothly. It is obviously hugely popular with young and old. In some locations people scrambled for our bikes the moment we disembarked. (Hong Kong’s service GoBee.bike set up by Raphael Cohen is good but still glitchy, without the big-bucks backing of its Chinese rivals, that operates in Hong Kong’s New Territories.)

The same as many other cities in China a fast growing subway system is being rolled out in Hangzhou. Two lines are open so far, another eight are planned. The bus service is already incredibly cheap and effective. Why own a car? This is where the disruption comes in. The public transport system in China combining high-speed trains for inter-city travel, excellent subway for intra-city, and shared-bikes for the last mile is getting to be so good why own a car. It is hard to overstate what an immense impact this will have on the economy. The manufacture of cars, petrol/diesel extraction, their refining and sales, and the allied industries like car insurance, private car hire / taxis are a mainstay of every economy. But in a decade or so they may be superseded by vastly smaller public equivalents. And it will have effects on the topography of streets may change. Cars like wide roads and acres of parking, their socialised equivalents like narrow shady lanes and smaller compact city forms. It’s healthier too providing us around two hours of aerobic exercise each day.

Zhejiang (the province containing Hangzhou) GDP per head is US$12,000, California’s GDP per head is about five times higher. But the difference in living standards is far from correlated. The Chinese city is safer, less congested, its 2000-year heritage rapidly being restored, and had visibly less income inequality at least in the 50 or so miles we cycled. If this is what relative poverty looks like it doesn’t seem so bad.

2 Comments

Filed under Economics, History, Technology, Travel

Vladivostok: the edge of the Belt and Road

IMG_8141Vladivostok is a city of 600,000 in the Far East of Siberia. Russia grabbed it opportunistically in 1860, back when the Qing Empire had been enfeebled by the Opium Wars and the vicious Taiping Rebellion that left 20 million dead. Russia quickly consolidated its grip expelling the Chinese and transferring people from Ukraine and Belorussia: first by land and ship and by rail once the Trans-Siberian Railway was built.

Even though it’s only a stone’s (or perhaps a Scud missile’s) throw from North Korea, there’s no hint of the East in the local gene pool. Lonely Planet calls it San Francisco of the East, I suppose, because of its steep, low hills and wide roads, but the gaudy, mid-19th Tzarist buildings in the center, ringed by newer Soviet concrete blocks make it look more like Aberdeen or Edinburgh.

IMG_8149I’ve long wanted to go to Vladivostok. The word Vladivostok conjures a far-away, mystic place of exile like Timbuktu, Mandalay or Coventry. Over summer I read A Day in the Life of Ivan Denisovich vicariously commenting on many drafts of my son’s school essay. In the book the bleak Siberian gulag is set in a vast open terrain and a bitterly cold climate. The book gets the vast, openness right. Far East Russia is 20 times bigger than UK, but its population of 6 million (and declining) is but a tenth of UK’s.
IMG_8151
I came to the city to attend a WWF meeting about the Belt and Road Initiative. In a sense this Chinese policy is a reversal of 19th century balance of power. The Trans-Siberian Railway was totemic of Russia’s colonisation of the East; BRI’s signature investments are a series of railway lines and maritime routes linking China to Europe, Africa and Asia. Once upon a time all roads led to Rome, today Xi Jinping’s big idea is for Beijing to assume a similar co-ordinating role in the world’s nervous system.

Certainly you smell Asian money everywhere. Our hotel had Chinese, Korean, Japanese TV channels and a single English one (checkout the excellent RT state sponsored propaganda channel: my fave is the witty show Redacted Tonight). The menus and museum proffer information in Cyrillic, Chinese and Kanji scripts, Roman letters is fast vanishing.


IMG_8158I found the contrast between Hong Kong and Vladivostok jarring. The flight is only four-hour but you land in an alien environment. Everyone on the plane was young, Slavic and athletic looking, or they were me. The lack of diversity is at least in part due to Russia’s anti-tourism policy, you couldn’t invent a more Byzantine process to get a visa. The other big difference is Vladivostok has space to burn. There’s no jostling for territory on the roads, pavements, lifts, or restaurants. You can finally stretch your wings. Instead of Hong Kong’s fastidious maintenance of its infrastructure we have Russia’s worrisome neglect. Outside the center’s conference-friendly ambit roads are cratered and the paint on the old buildings peeling. A funicular rattles and creaks as it climbs from the touristic shore – where you can explore the inside of Submarine S-56 – to the hill-top’s viewing point. The people have so much environment, trashing it doesn’t seem to matter. Unlike Hong Kong’s 24/7 work culture, Vladivostok is more interested in having fun on the beach, going for a beer, playing football with the kids.

IMG_8131I liked the phlegmatic can-do-ness permeating the culture. Channel surfing you can catch Putin looking inscrutable and insouciant, not harangued and shifty like a Hong Kong politician. Instead of a shopping channels, I found a DIY channel where the presenter showed us how to repair a broken pair of glasses with glue and Sellotape (you too can sport the Michael Foot look).

But the trip left me curiously depressed. Vladivostok’s pocket museum reminds us that over the last 35,000 years the fertile lands were denuded of mammoths and the other megafauna by the aborigines: Udege. These were conquered by dynasties of Chinese, white Russian, communist USSR, Japanese finally reverting to Russia. Does wildlife have a chance within Xi Jinping’s Ecological Civilisation? My excellent WWF colleagues helped rescue a tiny Siberian community of Amur Tiger from extinction, as part of our wider Tx2 programme. Can the WWF network reverse the millennia long trends for development to obliterate wildlife and worsen climate change? I hope so.

2 Comments

Filed under History, Politics, Travel

Cycling holiday to Kaiping

I spent Easter holidays cycling in Kaiping, Guangdong – a city of 0.7 million which was scarcely known by anyone at work. China is a hierarchical place and cities are categorized as tier 1, 2 or 3 depending on their significance. Kaiping is less a tier and more an illegal extra floor.

Rice paddiesWhen I told my co-workers about my plans they feared for my life. Hong Kong is such a safe place it has warped people’s concept of danger. So far this year HK has had two murders, 12 suicides, and one Darwin Award entrant short-listed for falling 400m off Lion’s Rock while taking a self portrait. No one is attacked in HK; harm is largely self(ie) afflicted.

The biggest danger I faced in Kaiping was my tendency to drift onto the wrong side of the road while cycling the quiet country roads.

Kaiping’s correctly famous for its Diaolous. These quirky fortified houses look ancient but are less than 100 years old. There are around 1000 scattered around the county. Four clusters are in particularly good nick all less than 20 km from Kaiping – they have collectively been designated as UNESCO sites.  Kaiping and nearby villages were used as a location for two well known Hong Kong movies: the beautifully shot Grandmaster about Ip Man, Bruce Lee’s Kung Fu teacher, and A Better Tomorrow once Hong Kong’s biggest grossing film. It also has familial connections to many western countries as the county was a major source of migrants fleeing the bandits, recession and opium addiction that marked the end of the Qing dynasty at the turn of last century.  Their remitted wealth was used to build the Diaolou a fascinating series of follies, which are so numerous they became the vernacular. Its other claim to fame is it’s the sanitary wares capital of the world.Kaiping diaolou

There aren’t many foreign looking tourists and people spontaneously came and practised their English on me. Typical dialogue: Where are you from? Hong Kong. Where are you really from? London before Hong Kong. Where are you really, really from? I was born in India, then moved to England. I had the feeling this still left their yin and yang out of kilter.

I stayed in the imaginatively named Kaiping Hotel. It was brilliant – the bathroom was bigger than our Hong Kong flats bedroom. It of course had exemplary sanitary-ware. I had an entire western restaurant to myself and was serenaded by a sultry jazz singer who crooned Nora Jones at me.

China’s got many interesting smaller cities like Kaiping, where the old hasn’t yet been pulled down and replaced. Well worth a visit.

Leave a Comment

Filed under Travel

Relatives over and Japan and Macau

After months of relative solitude Maya and I have had a series of visitors over the past few months. After school broke up Satish came for three weeks, Ayeisha came in late August and Prabhat and his wife Judith in September. Skype and Facetime is all very well, but you don’t realise how quickly your children grow from a four inch screen.

FujiFrom a certain angle, Satish now appears taller than me. From any bathroom scale, I still appear heavier than him. This is the two of us on Mount Hakone with Fuji 25 kilometres behind us. The crater on Hakone has been murmuring since April, but on June 30th (about five weeks before we arrived) there was a small eruption of ash and steam and it has been spewing ever since. We all dutifully walked up to the candela to see the lava but the Japanese are nowadays as health and safety conscious as the Hong Kongers and the area was all taped off. The beautiful resort was almost empty and the three of us had a 600 seat Mississippi paddle-steamer to ourselves.

I’d been to Japan once before, in mid-90s just when its quarter century long economic ‘malaise’ started. You all know the story – low growth, ballooning Government debt (largely owed to its own citizens so IMF has demurred from doing a Greece on the country), ageing and shrinking population (1 million fewer people each year from now on), and an endless series of Governmental macroeconomic defibrillations to get spending going. I had expected the country to resemble some economic ghost town – another France, except with decent food. But it wasn’t like that at all. It’s the most fantastic country. The shrinking population of young (there are almost twice as many 60-64 year olds as 0-4 year olds) have ceased to worry about getting a salaryman jobs since there are none, and seem content to mooch around on bikes and hang out in excellent coffee shops and cheap cafés.

The Japanese put thought and pride into the most mundane objects and everyday places. Look at the first two pics below: the first is an immaculately manicured and reasonably priced restaurant in Uneo, the second shows the torrent of technology bestowed into this renewably powered, LED lit, heat-pump cooled beverage dispenser in Ikebukuro. But the third pic shows Japan getting it horribly wrong, demonstrating why middle age men should not run records labels. It was taken in a pub in the basement of the Sony Building in Sinjuku. Last time I went there in the 90s it was a temple to Sony’s creative fizz. Now all six floors were themed around Maria Carey, linked no doubt to her recently signing to Epic records. I am not joking – look at the album covers behind and the beer mat! I wish her better luck on Epic than enjoyed by Michael Jackson and Witney Houston.

IMG_3992 Uneo Mariah

There’s a great book “Bending Diversity” about Japan by David Pilling written in the aftermath of the Tsunami showing how modern Japan copes with the its legacy of being the first non-Western developed country, being reviled and still living down its role before and during the Second World War and its stoicism in the face of its vulcanic and typhoon prone geography.

In August Ayeisha briefly visited. We all went to the excellent Nan Lian garden and then a Venetian piazza in Macau complete with gondolas.

IMG_4227 IMG_4266

Macau is a weird place. It’s about an hour’s high-speed boat ride from HK and soon to be linked to HK by a 50 km bridge. It is now, like Hong Kong, a Special Administrative Region of China. It was administered by the Portuguese between 1557 to 1999, a far longer span than the Brits occupied HK. It’s much smaller than HK. At the moment its reported to have the second or fifth highest GDP per head in the world depending on who’s counting. But much of this economic activity is in the gambling sector. The gamblers are drawn from highly regulated Mainland China and Hong Kong, but Xi Jinping’s crackdown on corrupt officials has resulted in a massive drop in tourist flows. Much of the ‘domestic production’ anyway gets whisked away by the owners of the huge casinos: Las Vegas Sands who own the Venetian, the Hong Kong listed Galaxy. There is still some culture here – a rather good museum and the poetically superficial façade of the St Paul’s church, which echoes the relative importance of the Church to Mammon. Macanese food (in Hong Kong) is great but Ayeisha and I struggled to find a Macanese restaurant on the gambling island of Cotai.

IMG_4352 IMG_4363In September my brother and sister-in law arrived for a conference cum holiday. It was their first time in HK and thanks to the city’s compactness we managed to cram in a diverse programme of culture, food, beach and hiking activities in their three days of free time. Prabhat, armed with a guidebook bought my ex-colleagues from NEST, exposed me to a whole bunch of places in Wan Chai that I didn’t know existed; even a temple in Wan Chai, next they’ll build a cathedral in the City of London!

On the Saturday before the mid autumn festival we climbed a small hill in Kowloon, with a band of couch surfers, and watched the full moon. We fingered Hong Konger’s beloved moon cakes and discretely threw them away when backs were turned cursing their calories and awful taste.

Everyone’s gone back now. Maya wore jeans over the weekends. Despite my higher-spec insulation, I will only be able to sustain shorts and T-shirts for a couple more weeks. As Ned Stark so ominously and repetitively points out in Game of Thrones – “Winter is coming.”

 

 

Leave a Comment

Filed under Travel

Manufacturing scarcity

Until I came to Hong Kong I thought debenture was a fancy word for pretty-young-things’ first grown-up party. It is only when I arrived here that I found out otherwise. Elite schools use debentures to borrow for free from wannabe students’ parents, and exclude the hoi-polloi. Try googling debenture and you’ll get sent straight to www.topschools.hk. There’s a thriving secondary market in debentures – prices vary from $25,000 for the not so grand schools to $10million for the most sought after. This is on top of the annual fees of around £15k.

Baby_crawl2

Competition in my building

As the photo to the left shows education is where the rat race starts. And as the second picture reminds us there’s no need to wait till a kid gets is at school to start tutoring. Kindergarten kids can cram in another language while they are being potty-trained. (To be fair the nursery did also have some very nice climbing frames).

Education could be the great leveller, but money is able to frustrate such egalitarianism.

Why are so many expats, and wealthy local people, prepared to pay so much to avoid the local schools? Anyone who’s watched BBC’s fascinating reality show on Chinese education applied to UK schools knows that Chinese kids do incredibly well in international student comparisons. But ambitious Chinese aren’t interested in learning the syllabus. They want their kids to be taught in English and gain internationally recognised qualifications rather than the HK Diploma of Secondary Education so they have an exit strategy to a better life via a foreign university. A quarter of the state schools language of instruction is English but entry is highly competitive – and the educational regimes hellish with too much homework, boring rote learning and a lack of opportunity to develop creative skills.

Kinder garden in mid-levels

Kinder garden in mid-levels

It’s incredibly competitive getting a place in one of Hong Kong’s seven public universities. Government funds just 20,000 new enrolments per year, far less than the demand from the 100,000 young people that will reach 18 this year. Given that so many young Hong Kongers want to go to university many have no choice but to attend HK’s private universities or go overseas.

But it’s not just education where manufactured scarcity is driving up prices. You have similar secondary markets for membership of the Hong Kong’s elitist private clubs. Getting hold of a membership for Clearwater Bay Golf Club – the swish-est in the territory – will set you back a million sterling. By way of comparison the cost of private clubs in London is around £1500. In UK allocation is by queue, or through obscure nomination procedures.

Large plots of new space has to be created either as newly manufactured islands or reclaimed shoreline. It is used to site airports, motorways and high-end offices. No-one is likely to set up a new golf club or cricket club anytime soon. Instead membership to the existing ones is traded. The private clubs are great places to entertain clients or take the family on Sundays when the helper gets her day-off.

Cartoon from South China Morning Post

Cartoon from South China Morning Post

Uber has been in the Hong Kong news the last week after the police arrested several drivers for providing taxi services without a permit, and raided Uber’s offices taking several staff away for questioning. The number of red taxi permits in Hong Kong has remained fixed for twenty years. This is despite souring demand through increase in tourism and people’s income. This means the costs of the permit has now risen to over £600,000 and there is such a healthy secondary market in the permits. Investors treat them as another asset class to buy and sell.

So what else have I been up to? I took my bike on the ferry at Sai Wan Ho to Kowloon a few weeks ago. I had a vague ambition to see some of Kowloon’s more spiritual and ancient sites. Weaving through traffic and carrying your bike over six lane motorways wasn’t the most relaxing way of travelling but it was fast and exhilarating. Stupidly I had picked the hottest day ever recorded, in some parts of HK the temperature hit 38°C.

chi_lin_nunnery

Chi Lin Buddhist nunnery

Nan Lian garden

Nan Lian garden

The most photogenic place was the Nan Lian Garden near to Diamond Hill MTR. It looks ancient but was actually created from a brownfield site in 2006. The stunning buildings use traditional wood construction techniques. You can, for an hour or two, from the right angle, totally forget you are in Kowloon surrounded by 2 million people in 50 square-km. The buildings are held together using clever joints instead of nails. There is a small exhibition in one building showing models of such traditionally built temples from the Mainland, some are almost a thousand years old and six or seven storeys high.

The garden was designed and is operated by the Chi Nin nunnery, which is situated right next door. Again this seemingly ancient building was constructed in the 1990s. There are some terrific Buddhas in the shrine rooms but no sign of nuns and little evidence of anyone practising religion.

Roof in Plaza Hollywood shopping mall

Roof in Plaza Hollywood shopping mall

Here is a photo is of the stain-glassed roof of Plaza Hollywood. The mall is over the road from the nunnery. Thousands of retail devotees take part every week in their weekly pilgrimage to the 130 retail outlets. Shopping must surely be Hong Kong’s truest religion.

A few miles from Diamond Hill is the fascinating Kowloon walled city. This tiny patch of space, just 2.6 hectares, used to be a Chinese enclave following the leasing of the New Territories in 1898. For a few years the Chinese maintained a garrison inside the walled city in the 19th Century but they very soon pulled out and the tiny plot of land became stateless and a safe haven for triads, drug manufacture and even some legit manufacture

Kowloon Walled City

Kowloon Walled City

(apparently a big centre for making toilet plungers!). Its population mushroomed and tens of thousands lived there. In 1994 the British Government agreed to sort it all out and the buildings were levelled and the land converted into a park. A few of the oldish

buildings still stand but they have no roofs, which made them less than ideal to hide from the 34°C. Memo to myself – check the weather forecast next time I go cycling.

2 Comments

Filed under Economics, Travel