go china - xiamen

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Prosperous connections The trading port is booming thanks to its close economic links with Taiwan. The city is also developing into a major tourist destination with many attractions. PAGE 4 Around the nation One of the side effects of China’s sustained economic growth is the continuing rise in office rents. In the meantime, foreign nationals are uncertain about the mainland’s new social security policy. PAGES 2 AND 3 Photo: ImagineChina Photo: ThinkStock ** /z_tabloid_sp_front_dateline_folio ** Wednesday, March 28, 2012 SPECIAL REPORT GO CHINA XIAMEN See weekly updates on http://gochina.scmp.com/

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Page 1: Go China - Xiamen

Prosperousconnections

The trading port is boomingthanks to its close economic linkswith Taiwan. The city is alsodeveloping into a major touristdestination with many attractions.

❯ PAGE 4

Around the nationOne of the side effects of China’ssustained economic growth is thecontinuing rise in office rents. In the meantime, foreign nationalsare uncertain about the mainland’snew social security policy.

❯ PAGES 2 AND 3

Photo: ImagineChina

Photo: ThinkStock

** /z_tabloid_sp_front_dateline_folio **Wednesday, March 28, 2012

SPECIAL REPORT

GO CHINA XIAMEN

See weekly updates on http://gochina.scmp.com/

Page 2: Go China - Xiamen

2 Wednesday, March 28, 2012 ** /z_tabloid_sp_inside_dateline_folio **

GO CHINA – NATION

Foreign nationals workingon the mainland are nowrequired to pay socialsecurity tax, but there is stillconfusion over the

interpretation and implementationof the new policy, which becameeffective last October.

According to the provisionalmeasures issued by the Ministry ofHuman Resources and SocialSecurity (MHRSS) in China inSeptember last year, the effectivedate for expatriate employees tostart contributing to social securityin China was October 15, 2011, saysJacky Chu, a partner in theinternational assignment services atPricewaterhouseCoopers.

“Over the past two months,social security bureaus in majorcities began implementing thescheme, though some others haveyet to take any action,” Chu adds.

Sam Pang, partner of humancapital at Ernst & Young, says:“Based on our observation, citiessuch as Guangzhou and Shenzhen

have yet to release specific, detailedmeasures regarding thecontributions by expatriateemployees to social security.”

Another point concerns whetheremployees from Hong Kong, Macauand Taiwan need to participate.Measures by several municipalitiesseem to vary.

For instance, Beijing seems toexclude employees from theseregions from the scheme for thetime being. “The situation remainsfluid,” Pang says.

China has passed the socialsecurity law to bring itself in linewith the practice of other developedeconomies, requiring foreign

nationals working there tocontribute to social security. “Manymainlanders working overseas arerequired to make contributions intheir host countries,” Chu says.

Foreign employees fromcountries with which China hasentered into TotalisationAgreements enjoy exemption. So far,China has signed this agreementwith Germany and South Korea.“However, there is only sketchyinformation on the mechanism ofthis exemption available from localsocial security bureaus,” Pang says.

The types of insurance covered inthe scheme include: basic pensionfund; basic medical insurance;

work-related injury insurance;unemployment insurance; andmaternity insurance. The amount ofmonthly contributions by theemployees and employers vary fromcity to city, so do the proportions ofcontributions from both parties. Thecontributions are calculated basedon the maximum pensionableincome (MPI), which is three timesthe average monthly salary in anindividual city and are reviewed andadjusted annually.

For instance, the MPI inGuangzhou last year was 13,623yuan (HK$16,695), 12,603 yuan inBeijing and 11,688 yuan in Shanghai,Chu says.

“Depending on the city, monthlycontributions by an expatriateemployee are from 800 yuan to 1,500 yuan, while [those] by theemployer [are] from 1,500 yuan to4,000 yuan,” Chu adds. As theenforcement of the scheme affectsmany foreign employees in China,corporations should put in placespecific administrative strategiesand effective internalcommunications mechanisms fortheir staff, Pang says.

He notes that while some firmsmay not yet participate in thescheme, they should begin toinclude the additional expenditurefor future contributions.

Some mainland cities have yet to release specific measures regarding expatriate employees’ contributions to social security. Photo: ImagineChina

New policy still fluid

Foreignnationals remainuncertain overmainland’s newsocial securityscheme, writesWilson Lau

TAX

As our Business Climate Surveymakes clear, United Statescompanies continue to view China asone of their top-three global prioritiesfor investment.

Nevertheless, some of theoptimism of the past few years hasdissipated due to an expectedslowdown in economic growth and,of greater concern, the regulatoryenvironment that keeps some doorsclosed to foreign companies andslants the playing field towardsdomestic champions.

China’s economy has grownincreasingly sophisticated. However,in some important areas, regulationshave failed to keep pace.

The issue of technology transfer –the requirement that companieshand over proprietary technology tobe allowed to do business in China –is another example. A third ofrespondents in the survey saidconcerns about forced technologynegatively impacted their view of thebusiness environment in China.

Given these concerns, wewelcome the statement in Februaryby Minister of Commerce ChenDeming, who said the Chinesegovernment would not requiretechnology transfer for marketaccess.

Nonetheless, worries remainabout how the investment processworks away from public view. As longas every foreign investment in Chinarequires approval, there will always

be an informal channel to extractpromises of technology transfer, andinvestments will be guided togeographies, product lines andequity structures that a commercialnegotiation would not have yielded.

Tackling this requires more than astatement of policy. We need to workwith Chinese partners towards moresystemic change eliminating astructure that discriminates againstforeign investment.

If a sector is open to investmentfrom a Chinese company, it ought tobe open to foreign investmentwithout additional approvals orrestrictions – except in narrowly-defined areas impacting nationalsecurity.

It is in China’s own interest toencourage competition, to help it

achieve the goals of promotingdomestic innovation and thedevelopment of service industries.Moves to level the playing field forforeign companies would also helpdefuse international trade tensions ata time when Chinese companies areinvesting abroad in greater numbers.

The US and China have much to gain from deepening theireconomic ties.

Ensuring the relationship’ssustainability requires that weredouble our efforts towards a fairplaying field for trade andinvestment.

Ted Dean, chairman of AmericanChamber of Commerce in China. The opinions expressed in this column are those of the author.

Doors should remain open to foreign firms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Ted Dean

Ted Dean

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GO CHINA – NATION

China’s boom years areshowing negative sideeffects in Shanghai andBeijing, as prices for primereal estate continue their

stratospheric rise. While major international real

estate research shows hugelydisparate figures – with estimates forBeijing grade-A office price increasesranging from Colliers’ reported 13per cent rise to an alarmist 73 percent by real estate consultancyCushman’s – the consensus stillpoints to a significant increase over last year.

Reports on Shanghai rentals werea little more in agreement, but theconsensus still showed a markedrise, with reports of increases fromanything from 15 to 20 per cent.

As much as they have risen, officeprices in the capital are well belowHong Kong’s square-footage costs,says Eric Hirsch, Jones LangLaSalle’s national director, head ofmarkets, who estimates Beijingcentral business district (CBD)prices have risen 40 per cent in thepast financial year.

Nevertheless, he says acombination of Beijing’s increasingprominence as a regional businesshub and the increased financialsway of local companies looking torent prestigious office space meanprices continue to rise.

“Beijing used to be more of arepresentative office city and, overthe years, it has grown into a truebusiness centre. What a lot of peopledon’t realise is that Beijing is also the global headquarters of over 41Fortune 500 companies, second only to Tokyo.”

DTZ’s Global Occupancy CostSurvey, published last month,showed a 10 per cent increase inoffice costs China-wide, with a spikein Beijing, at 38 per cent year-on-year, driven by aggressive rent risesby landlords on the back of limited supply.

While prices are comparativelyhigh, the market isn’t yet seeing adrop in demand, says David Ji,DTZ’s head of Greater ChinaResearch.

“I can’t see the prices drivingdown demand [yet]. It hasn’treached a point where people thinkit’s too expensive,” he says.

However, it is important to planfor this eventuality, Hirsch says.“We’re already seeing strategicplanning in terms of protectingyourself and looking into the future

as business continues to grow.” Oneway firms can do this is by lookingfurther afield. While the CBDs ofShanghai and Beijing might benearing capacity, the spacesurrounding these cities has thepotential to be exploited.

Secondary submarkets and out-of-town office parks are proving increasingly attractiveoptions for firms that don’t need to be in the CBD.

“We’re seeing constructionprojects in other locations in

[Beijing], not just in the CBD, andthe office parks continue to growthere as well,” Hirsch says.

While city centres are becomingunaffordable for all but the biggest ofcompanies, China’s adaptability willsee trends shift away from primelocations.

“People who cannot afford theprime locations still prefer thesecondary locations, or class-Bproperties, so they’re not in adesperate situation, and there arestill affordable properties,” Ji adds.

Demand continues to drive up grade-A office rentals in Beijing, with one real estate consultancy forecasting a 73 per cent rise this year. Photo: ImagineChina

Flight from the cityAnalysts advise firms to escape rising prices by considering secondarysubmarkets and out-of-town office parks, writes Euan McKirdy

OFFICE RENTALS

We’re seeingconstructionprojects in otherlocations, not justin the CBD ERIC HIRSCH, NATIONAL DIRECTOR, HEAD OF MARKETS, JONES LANG LASALLE

Sector has long-term potential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Timothy Soper

The rapid expansion of China’shospitality industry has led toconcerns over the formation of abubble in the hotel sector.

According to data from JonesLang LaSalle Hotels, the number ofinternationally branded rooms inChina climbed 62 per cent over thepast five years. However, only 61percent were filled in the first ninemonths of last year, based onseparate data from STR Global.

Despite these concerns, HiltonWorldwide believes in the long-term potential of the market, andhas outlined a goal to expand fromthe 28 properties it operates tomore than 100 by 2015.

Domestically, the proliferationof a middle class will support agreater appetite for inter-regionaltravel, which will be further boostedby the government’s strategic focuson promoting domesticconsumption.

On the international front,China is expected to surpass Spainand the United States to becomethe second most popularinternational tourism destination inthe world, behind France.

The Chinese government isencouraging the development ofintegrated urban complexes in tier-one cities and beyond, which leadsdevelopers to seek partnershipswith leading hospitality players asan integral part of their projects.

At Hilton Worldwide, we have

established a rigorous and testedprocess to assess the suitability ofpotential partners and the long-term viability of specific projects.We also ensure that projects areclosely aligned with governmentpriorities.

Recognising that there aredifferent customer profiles, HiltonWorldwide has embarked on a planto introduce new properties fromour portfolio of 10 distinct brands.

Last year, we added luxurybrands Waldorf Astoria and Conradto the existing Hilton andDoubleTree by Hilton brands, andplan to introduce the first HiltonGarden Inn in China later this year.

Significant efforts have beenmade to train our close to 12,000staff in China.

Complementing this arestrategic partnerships forged withhospitality and tourism schools tonurture industry talent to supportour expansion needs and thedevelopment of the industry.

Ultimately, China’s vast marketpotential is unquestioned. What iscritical for hospitality industryplayers is to have a clear game planthat is not only ambitious, but alsodisciplined and focused in selectingthe right opportunities anddelivering the best guestexperience.

Timothy Soper, vice-president ofoperations, Greater China andMongolia, Hilton Worldwide. Theopinions expressed in this columnare those of the author.Timothy Soper

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GO CHINA – XIAMEN

One of the first five specialeconomic zones, Xiamenis showing steadygrowth, according tofigures.

The city opened for foreigninvestment in the early 1980s and isalso a major trading port, nowaccounting for more than half offoreign trade in Fujian.

Last year, Xiamen’s economygrew 15.1per cent to 253.7 billionyuan (HK$312.7 billion). Per-capitaGDP was up 15.3 per cent to 71,808 yuan, surpassing theUS$10,000 mark for the first time,according to media reports.

Xiamen has benefited frominvestments from Taiwan, due to itsstrong economic and social ties withthe island.

The city is only 25km fromTaiwan’s Jinmen (or Kinmen) island.Many Taiwanese people originatedfrom Fujian, and the Taiwanesedialect also originated fromsouthern Fujian.

With this background, Xiamenalso plays an important role in the

central government’s policies topromote closer economic and socialties with Taiwan.

It has been approved by the StateCouncil as a pilot area for reforms to“deepen the exchanges and co-operation across the Taiwan Strait”.

Trade between Xiamen andTaiwan last year totalled US$7.24billion, up 13.4 per cent, of whichexports were up 38.9 per cent toUS$1.46 billion, while imports wereup 8.6 per cent to US$5.77 billion.The growth was attributed to thesigning of the Economic Co-

operation Framework Agreementbetween China and Taiwan inmid-2010. This preferential tradeagreement aims to reduce tariffs andcommercial barriers.

The city government plans todevelop the Haichang area into aninternational shipping hub byrelocating the logistics industries tothe area, and to develop tertiaryindustries.

The city also fosters the growth ofsmall- to medium-sized enterprises,such as lowering charges andoffering financial subsidies.

Xiamen has benefited from investments from Taiwan, due to its strong economic and social ties with the island. Cross-strait trade amounted to US$7.24 billion last year. Photo: ImagineChina

Pivotal role for port Cross-strait links play key part in the city’s development, writes Keith Chan

Gulangyu

Xiamentrain station

Xiamen GaoqiInternationalAirport

Xiamen

4km

City Xiamen (formerly Amoy) Area1,573 sq kmPopulation 3.53 millionGDP 253.6 billion yuan (2011)Per-capita GDP 71,808 yuan (2011) Total retail sales 81.069 billion yuan(2011)Disposable income of urban

residents 33,565 yuan (2011))Total industrial value: 446.483 billion yuan Foreign trade: US$69.8 billion (2010) Fixed asset investment112.628 billionyuan (2011)Foreign direct investmentUS$1.7 billion (2010)

FAST FACTS

OVERVIEW

When Xiamen residents celebratedthe 30th anniversary of the city as aspecial economic zone, they viewedthose three decades from theperspective of a city revolutionisedin size, economy and lifestyle.

As one of the earliestmultinational companies operatingin Xiamen, German firm Linde haswitnessed the ups and downs of thecity’s economy.

Inspired by a mix of politics,economics and optimism, Linde

established a joint-venture plantwith Xiamen Forklift in December1993 with an investment of 1.7 billionyuan (HK$2.08 billion). “At that timethere was a big push between bothcountries to have closer economicco-operation,” recalls C P Quek,CEO of Linde (China) Forklift Truck.

When the 1998 Asian financialcrisis hobbled the region, Linde andother companies retrenched andfocused on efficiency improvement.“Even though the group suffered alot, we were able to sustain, andopportunity always comes withcrisis,” Quek says.

Xiamen’s economy picked upstrongly in the 2000s, helped by thevibrant growth that brought Chinainto the global limelight. So didLinde, which has grown to becomethe biggest forklift truckmanufacturer in China.

For Linde, now a part of the KionGroup, China has become the firm’sthird-largest market, providingmuch-needed growth as othereconomies stagnated during theglobal recession.

“I always love crises,” Quekexplains. “It’s an opportunity tobecome better and hopefully some

of our competitors can’t make it andso we [can] win market share.”

The firm’s Xiamen businesses arefocused on growing the domesticmarket and the production valueladder. It’s a move away fromoperating as a “screwdriver plant”that simply assembles parts,according to Quek.

Companies such as Linde areinvesting heavily in research anddevelopment to become“supermarket factories”, making arange of end products and localisedcritical components built withhomegrown intellectual property.

Joint-venture plant reaps dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Enid Chen

C P Quek

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GO CHINA – XIAMEN

Xiamen will host anInternational TourismCarnival this autumn topromote southern Fujian’sculture and put the city on

the international map, says HuangGuobin, director of the XiamenMunicipal Tourism Bureau.

Huang says the carnival willinclude an international mooncakegame, a city-wide float parade and an exhibition of internationaltourist souvenirs.

The mooncake game, the first ofits kind in the region, will be heldaround the Mid-Autumn Festival.There will also be dice games attourist attractions. There will be

10,000 prize winners who will beeligible to compete for the grandprizes, including trips to Taiwan.

Xiamen is one of China’s mostpopular tourist destinations. Lastyear, the city received more than 3.5million visitors, up 16.4 per centfrom the previous year, generating45.3 billion yuan (HK$55.6 billion) in

tourism revenue. Among thevisitors, 1.8 million came fromoverseas, up 16 per cent.

Tourist arrivals are expected toincrease 20 per cent this year to 4.2million, generating 54 billion yuan.The number of overseas tourists isexpected to hit 2 million.

The tourism bureau strives to

promote the city as an internationaldestination. With an island and fourmainland districts, Xiamen has asimilar geography to Hong Kong.The tourism bureau is learning fromHong Kong about touristmanagement and promotions. Italso works closely with Nice andCannes in France, and Miami in the

United States to develop tourism ina subtropical coastal environment.

“We are eager to welcome morevisitors from Hong Kong when thehigh-speed railway from Xiamen toShenzhen is opened,” Huang says.The 502km line is underconstruction and expected to beginoperations later this year, shorteningthe travelling time to around three hours.

Xiamen is also upgrading itstourism infrastructure to cope withthe expected increase in domesticand overseas tourists. There are 71starred hotels in Xiamen, including11five-star hotels. In addition, thereare more than 1,000 smaller hotelsand family-run hostels.

“In the next two to three years,Xiamen will have more than 100additional starred hotels, at least 20of which will be five-star hotels,”Huang says.

To meet the expected demandfor senior hotel managementpersonnel, the Xiamen University ofTechnology has launched a hotelmanagement degree programme. Itwill also work with XiamenUniversity to launch a graduateprogramme in master of tourismadministration.

Huang Guobin

Carnival shows the wayGames and other major attractions highlight charmsof southern Fujian culture, writes Enid Chen

TOURISM

Nanputuo Temple is one of Xiamen’s top tourist spots. Photo: ImagineChina

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GO CHINA – XIAMEN

Xiamen is probably one ofChina’s best-kept secrets.The city is widelyconsidered by foreign anddomestic visitors as one of

the cleanest and most comfortableplaces to live and visit, and themodernisation drive that has turnedthis ancient trading powerhouse intoa modern business hub is taking the“livability” issue very seriously.

One of the keys to Xiamen’scomfortable feel is the large presenceof returnees, Amoy Chinese. Theymigrated across the globe forbusiness reasons and have returnedto bring their experience, ideas andwealth to bear upon thedevelopment of their hometown. Agood place to learn the history ofChina’s diaspora is the OverseasChinese Museum, founded by TanKah Kee, who also founded thenearby Xiamen University. Tan,known as the “Henry Ford of Asia”, is typical of many Chinese who leftFujian to make their fortunes andthen returned to give back to theiroriginal home. The museum hasmore than 7,000 artefacts dating tothe Bronze Age, including twomummies recovered in Xinjiangprovince.

Within walking distance of themuseum and the campus is theNanputuo Temple, an ancientBuddhist temple dating back morethan 1,500 years. The temple hasbeen destroyed and rebuiltrepeatedly over the centuries, buttoday’s version boasts several hallsand statues from antiquity, andsome of the best-kept and mostserene temple grounds you will findanywhere. At the back of the templeis Wulao Feng – the Peak of Five OldMen – which affords spectacularviews of the South China Sea and theuniversity campus.

Xiamen has a well-known tastefor nightlife. The whole city is awash

with blinking lights and it seems asthough the sea breeze of the daybecomes even more sultry andalluring as the sun goes down. TheBinlang Road Bar Street and HaiwanPark have several fine options, fromnightclubs such as Labomba andTrue Love filled with flashing lightsand young bodies, to mellow barssuch as the Oriental, London Bar or 1972.

Xiamen attracts young peoplefrom all over China for work, but alsofor education at the university, andfor the city’s reputation for nightlifecomparable with Shanghai andHong Kong.

Although the city does not boastas many Western-style dance clubsand bars as these major cities,venues available cater to the youngand adventurous, so in many waysthe nightlife in Xiamen representsthe New China.

This young, hip crowd is mostvisible during the day at places suchas The Coffee Club and the manycoffee houses along the banks ofLake Yuandang. The people herelook good, drive flashy cars and wantto be seen.

This is perhaps the real modern-day Xiamen, more so than the quaintlanes of Gulangyu or the Hakka andAmoy heritage: ambitious, beautifuland confident. Xiamen youngsters like to meet at the city’s many coffee houses during the day. Photos: ImagineChina

Fusion of old and newModernisation drive has turnedancient trade centre into businesshub. Reports by Sascha Matuszak

CITY LIFE

Xiamen is poised to become home toone of China’s most dynamicmarinas, joining Qingdao and Sanyain the growing yacht and luxuryboating industry. Manufacturers andbrokers from around the world aresetting up operations to takeadvantage of a new market, and theChinese themselves are movingquickly to capitalise as well.

Xiamen has poured billions ofdollars into the development of theWuyuan Bay Marina, a massiveendeavour that combines businessservices, yacht culture and tourism.The marina will include berths for600 boats, house a yacht club and

business centre, and host exhibitionsand regattas. One of the mostimportant elements of the marina issouthern China’s first bondedwarehouse. It provides storage, salesand services for buyers and sellers ofluxury yachts but, more importantly,allows them to conduct businessdirectly without having to first payprohibitive taxes.

“The bonded warehouse inXiamen is an absolute necessity,”says Gulu Lalvani, owner of Asia’smost prestigious marina, the RoyalPhuket in Thailand. “Without such awarehouse, the manufacturer andimporter must pay a 44 per cent duty.

The bonded warehouse eliminatesthat hurdle and is an important steptowards a modern and flourishingluxury boat industry.”

Xiamen, situated on an island justa few kilometres from Taiwan, isconsidered one of China’s mostbeautiful coastal cities. Xiamen hoststhe China Cup – China’s onlydomestic regatta, a race that crossesthe strait to Taiwan. The regatta,inaugurated in 2007, annuallyattracts 60 boats and is a majorselling point for Asian players in theyacht and marina industry to set upoperations in Xiamen. The co-operation with Taiwan may also

unlock tremendous potential in the future.

“We believe that in the near futureit will be possible for yacht owners tosail to Taiwan,” says Cai Zhibin,general manager of Xiamen Roadand Bridge Development Company,and vice-president of the XiamenYacht Industry Association.

“It faces some issues, including

the yacht driving licence and yachtcertification,” Cai says. “Xiamen isone of China’s most livable cities. Weare a major business centre insouthern China and the regionenjoys a mild and enjoyable climate.More and more exhibitions are heldhere every year and the governmentstrongly supports the development ofthe yachting industry.”

Full speed ahead formarina’s development

Yachting inXiamen. Thecoastal city haspoured billions ofdollars into thedevelopment ofthe Wuyuan BayMarina.

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GO CHINA – XIAMEN

puppets have as many as 36different strings of varying lengths –as long as two metres in many cases– and mastering the art ofpuppeteering can take a lifetime.

Traditional puppets are carvedfrom camphor wood and sanded tocreate a glossy, smooth texture.Puppets are then painted accordingto classic depictions of princesses,nobles or rogues, and costumes andhair are added to create as life-likean effect as possible.

The art of puppet carving isslowly dying out, as modernmanufacturing techniques thatfavour mass production take overfrom the master carvers of centuries

Xiamen is the birthplace ofthe Chinese marionette.Hundreds of small andlarge puppet troupesoperate out of Xiamen,

Gulangyu Island and the city ofQuanzhou.

The puppets are expressive andcomplex, with the ability to displaya range of characters and, in somecases, play musical instruments.

The marionette has been part ofChinese entertainment formillennia, starting as humbleshows in the countryside andprogressing into an art form forwealthy aristocrats, emperors andeventually foreign audiences. The

past. Traditional troupes, such asthe Quanzhou Puppet Troupe, keepthe old arts alive for tourists andgala events that require displays of old Amoy.

Today, the marionettes arecharacteristic of ancient Mingdynasty nobles and commoners,but new “globalised” versions of themarionette are also sold acrossGulangyu – including boxingpuppets of world leaders.

Although some of the traditionaltechniques are being replaced, therange and abilities of the puppetshas greatly increased, as poles, extra strings and moderninterpretations enter the repertoire.

There are also offshoots of the craft,such as palm puppets and headcarvings.

The palm puppets are not aspopular with audiences as themarionettes, but the exquisitelycrafted faces and attire make forgreat souvenirs.

Palm puppets are high quality,smaller renditions of their largermarionette cousins and thecomplexity and range of a palmpuppet show still impressaudiences.

The head carving and puppetcarving industries are close relativesof the marionette – small,expressive carvings of ancient

characters in classic plays andmodern renditions of peoplefamiliar to us today are sold acrossthe region and especially in touristareas around Gulangyu.

Marionette performances arenow common across China –similar to the opera traditions thatflourished in the Minnan regionsand were then taken to other partsof the country.

Sichuan and Beijing are knownfor their distinctive marionetteshows, but neither achieve the nuance and complexity of the forefather of puppets inChina, the Amoy marionettetradition.

Puppet troupes keep alive expressive and complex art form. Reports by Sascha Matuszak

CULTURE

Pulling the right stringsPuppets (above and left) have as many as 36 strings of varying lengths. Mastering the art of puppeteering can take a lifetime. Photos: ImagineChina

Xiamen’s most momentouscontribution to world cuisinebegan as a ubiquitous fish brinesauce, used by locals as a must-have additive to classic seafoodand meat dishes.

As Xiamen’s Minnan tradersextended their influence towardsthe Indonesian islands and evenfurther afar, the simple fish brinesauce collected new and moreflavourful ingredients.

In Malaysia, anise, ginger andbrown sugar are added, while theIndonesians added cinnamon andcloves. But it wasn’t until the

English passed their tomato-basedversion on to the Americans thatthe fish brine sauce took on globalproportions as ketchup, thecondiment every Westernrestaurant has in stock.

Today’s Xiamen restaurateursstick to the original fish sauce,especially in the seafoodestablishments that ring the cityand the port, but ketchup in itsmodern form also existsthroughout this modern andbustling city.

The red sauce should be thefurthest thing from your mind,

however, if you are headed toXiamen on business or for leisure.

The Minnan cuisine ofsouthern Fujian, based in Xiamen,is a rich and colourful celebrationof the ocean, which is never faraway, no matter where you standin this city of more than 5 millionpeople.

Most of the staple dishes of thecity are seafood-based, such asgrilled shrimps and clams dousedin fish sauce, or deep fried squidserved with bamboo shoots andscallions.

The outdoor grills on thesouthern tip of Xiamen and thenight market lanes along the coast

serve every possible sea creatureyou can imagine, and many thatmost Westerners have never seenbefore, such as the popular snackof tuosundong, Xiamen-style jellysea worm.

Other adventures for theaverage palette include Tong’anwrapped pork, a dish that relies onheavy marinating to create amouthwatering morsel; localFujian pies, either salty or sweet,but always a great snack while on astroll; and peanut sauce with frieddough strips that make up thestaple breakfast.

Cuisine’s rich celebration of the ocean

Tuosundong, Xiamen-style jelly seaworm Photo: ImagineChina

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GO CHINA – XIAMEN

With its friendly peopleand colonial past,Xiamen has attracteda sizeable expatriatecommunity coming to

the city to study, work or look forbusiness opportunities. It isestimated that there are about 5,000expatriates living in the city,including those from Europe,Middle East, Africa, India, SoutheastAsia and North America.

The biggest attraction is thepeople, says Bill Brown from theUnited States, a professor ofgraduate business at the XiamenUniversity who has lived in Xiamenfor the past 24 years. He was the firstforeigner to obtain permanentresidency in Fujian province, andwas awarded the title of honorarycitizen by the Xiamen citygovernment for his contribution tothe city’s promotion overseas.

“Even over 100 years ago,foreigners in Amoy [Xiamen’s oldname] remarked that Xiamenpeople, unlike other Chinese, wereopen to outsiders, whether Chineseor foreign,” Brown says. “This wasbecause most overseas Chinesecame from this area, so for centuriesthey’ve been open to peoplecoming and going.”

He says that apart from thepeople, Xiamen has the beautifulisland of Gulangyu with itshundreds of elegant old villas.

“One hundred years ago, threeforeign authors said it was the‘richest square mile on the planet’. Aminiature Hong Kong, it was so

wealthy because of the mix offoreign and Chinese talent and money.”

To explore Xiamen, Brownadvises foreigners to pick up someChinese. “Even a few words ofChinese will win friends,” he says.“Chinese are happy when people try

to learn their language, and don’tmake them feel like fools whilelearning it.”

Foreigners can meet otherexpatriates at the Association of Ex-Pats, and foreign hangouts such asthe Millennium Hotel, therestaurant area along the lake nearthe Marco Polo hotel, or at theXiamen International ChristianFellowship.

For weekends and holidays,expatriates like to go to the beachesfor windsurfing or sailing, hiking inthe beautiful mountains behind theXiamen University, visiting thebotanical gardens and exploringGulangyu. Many also hang out atthe restaurant area by the Yuandanglagoon, or Zhongshan Park, or the promenade.

Xiamen is well-known forbirdwatching and music. For shorttrips, foreigners like to visitQuanzhou (an hour to the north bybullet train), the former start of theMaritime Silk Route, with a Unesco-sponsored maritime museum, andthe walled city of Chongwu.Quanzhou is famous as the home ofChinese marionettes.

Brown says unlike in the past,Xiamen is a good place to live nowthat most foreigners have noproblem fitting in. There is aninternational school for theirchildren and health care facilitiesare improving. Websites in Englishprovide useful information such aswww.amoymagic.com, which wasstarted by Brown and his wife, Sue, 10 years ago.Bill Brown, who has lived in Xiamen for 24 years, plays with a marionette.

City’s warm welcomeenchants foreigners

Most overseas Chinese come from this area, so theyhave been open to other people, writes Keith Chan

EXPATRIATES

Chinese are happy whenpeople try to learntheir language, anddon’t make themfeel like fools whilelearning itBILL BROWN, PROFESSOR OF GRADUATEBUSINESS, XIAMEN UNIVERSITY

Xiamen University, China’s firstfounded by overseas Chinese and akey national institution since 1962,has completed the first phase of a 3.5billion yuan (HK$4.28 billion) projectfor a new 244-hectare campus inXiang’an.

When completed in 2021, thefacility will become the largest of theschool’s three campuses and willaccommodate 30,000 students.

The site will serve as a platformfor national-level science researchand co-operation with institutionsaround the world.

About 10,000 students areexpected to move to the campus thisautumn.

Xiamen University’s originalcampus is considered one of themost beautiful in the country.

The university was founded in1921by Tan Kah Kee, a leader of theoverseas Chinese community.

A key comprehensive universitydirectly affiliated with the EducationMinistry, it comprises a graduateschool, 26 colleges and nine researchinstitutions. It is home to 40,000students and 2,000 teaching staff.

Xiamen University is one of theearliest universities in China toaccept overseas students.

It now has about 2,000, with morethan half attending the university’sOverseas Education College (OEC).

Founded in 1956 and formerlyknown as the OverseasCorrespondent College, OEC is the

one of the oldest institutions inChina specialising in Chineselanguage teaching for overseasstudents, according to deputy deanLv Zixuan.

OEC offers a dozen programmesranging from short-term Chinesetraining to doctoral programmes.

It offers classroom education anddistance education. Theprogrammes focus on language,culture and trade. OEC teachers alsoencourage students to practisePutonghua in and after class.

Since its establishment, the OEChas gained a reputation for teachingChinese as a foreign language and intraining overseas Chinese languageteachers.

As a result, the China NationalOffice for Teaching Chinese as a

Foreign Language designated it asthe Southern Base of the ConfuciusInstitute Headquarters.

The OEC is responsible fortraining more than 2,000 Chineselanguage teachers every year forConfucius institutes around the world.

According to Lv, construction

began two years ago on a new 33-hectare facility at the Xiang’ancampus of Xiamen University to hostthe school’s Confucius Instituteactivities.

“When the facility is finallycompleted next year, thedevelopment of OEC will go into fullswing,” he says.

Major campus project willboost science research. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Enid Chen

Xiamen University was founded in 1921 by Tan Kah Kee. Photo: ImagineChina

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GO CHINA – XIAMEN

Xiamen, a long-establishedbase for tourism andexports, has seen an influxof new hotels in recentyears, nearly doubling the

supply of hotel rooms, and more areexpected to enter the market in thenext few years.

“The past two years were verysuccessful for Xiamen’s hotelindustry. Occupancy and averageroom rates were growing 10 to 15 percent each year,” says AchimBrueckner, general manager ofCrowne Plaza Paragon Xiamen. “Thisyear is difficult to forecast [becauseof] the global economic [crisis].However the first two months of theyear topped last year’s performanceand I am quite confident that 2012will also be a great year, despite the

economic situation and newcompetition.”

He says guest satisfaction, a safeand clean hotel, and a motivated andfriendly team are the ingredientsnecessary to stay ahead of the

competition. “Our monthly food andbeverage (F&B) highlights are tailor-made to suit our guests’ preferencesand surprising them with culinary artin all of our five fine F&B outlets. Notto forget our conference facilities withone of the biggest ballrooms in townis complemented with eightadditional meeting rooms and servingfor all kind of MICE [meetings,incentives, conventions andexhibitions] functions and weddings.”

At Sheraton Xiamen, generalmanager Maged Louis welcomesnew players. “We believe that morecompetition is always more fun; alsowe respect all our competitors andplan to co-operate with them topromote the city more. We hope thatthe demand keeps increasing at thesame pace as the supply.

“Our hotel is well known for itsgreat service, which will always makeus the best choice, and we do havesome plans to bring interesting ideasto the market.” Le Meridien is theonly international hotel in Xiamen’scity mountain park, surrounded bylush vegetation and open spaces. Ahotel spokesman expects increasedcompetition, but says the citygovernment is doing much todevelop Xiamen into a leading MICEand travel destination.

“From the very beginning of ourhotel construction, we foresaw thehuge MICE market here. Therefore,our pillarless grand ballroom featuresa10-metre ceiling, the highest inXiamen, and beautiful design,providing a stunning atmosphere forany banquet.”

Le Meridien is the onlyinternational hotel in

Xiamen’s city mountainpark, surrounded by lush

vegetation and open spaces.

Hospitable place for new arrivals

There isconfidence thatoccupancy andaverage roomrates in the citywill continue torise. Reports byPrudence Lui

HOTELS

Achim Brueckner, of Crowne PlazaParagon Xiamen

The Sheraton Xiamen is well knownfor its great service.

Xiamen will welcome an additional1,000 rooms, mostly in luxuryinternational hotel chains, this year.

The 297-room Pullman XiamenPowerlong opened on January 18.Located in the central businessdistrict (CBD) at the fringe ofBailuzhou Park and Lake Yundang,it is near the famous “cafe street”,restaurants, bars and nightspots.

Next to open will be the 304-room Westin Xiamen on April 18.Positioned as a business hotel, itexpects to get business mainly frominternational and nationalcorporations, in addition to overseasleisure travellers.

General manager MartinVerpoorten says the hotel will differfrom competitors in many ways.

“The Westin brand has verydistinguished brand programmesand products. We have organised aspecial pre-opening campaign toinvite guests to experience thedivine bed, in unexpected locationssuch as the airport and a primeshopping mall.”

The property will be the onlyinternational brand to offer expresscheck-in and boarding-pass printingservices at the hotel lobby andexecutive lounge.

Scheduled to open in mid-April,Kempinski positions its Xiamenproperty as a luxury five-star hotel.In addition to 460 guestrooms andsuites, including the Kempinskiexecutive floors with 24-hour butlerservices, the hotel also boasts more

than 2,600 square metres ofconference and banqueting space, aspa and a branded retail area.

The soon-to-open Hotel IndigoXiamen Harbour is oppositeGulangyu, with harbour views, whilethe Langham Place is set to open latethis year.

With 330 rooms and suites,Langham Place nestles in the CBDand will offer extensive meetingspaces. These include the Star Roomon the 22nd floor overlooking thecity, a grand ballroom, and extensiveflexible meeting facilities.

Other luxury arrivals will includeDouble Tree by Hilton Wuyan BayXiamen (first quarter next year),Conrad (2014) and Shangri-La HotelXiamen (after 2015).

Luxury chains eager to claim share of spoils

Kempinski hotel

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GO CHINA – XIAMEN

An intelligent parkingtower has begun trialoperations in Xiamen, thefirst of its kind in Fujianprovince.

With a height of 50 metres, thecar park has 25 levels and capacityfor 50 cars.

The parking and collection ofcars is automatic.

After the driver checks in, the carwill be taken to a vacant parkingspace within the tower.

It will be sent back to the groundlevel when the car is to be collected,and placed with the front, facing theexit, so the driver can head straightoff. Keith Chan

Toweringabove the rest

After cars enter thetower (left), they aresent to one of its 25levels (right), wherethey are automaticallyparked until driverscollect them. Thetower’s ramp systemreturns the cars tomotorists so they can drive straight out of the building (top, left).Photos: ImagineChina

INTELLIGENT PARKING

More than 70,000 visitors, including15,000 from overseas, are expectedat the Xiamen InternationalConference and Exhibition Centre inSeptember for the annual ChinaInternational Fair for Investmentand Trade.

The mainland’s onlyinternational investmentpromotion, aimed at easing bilateralinvestment, is also the largestinvestment event approved bythe Global Association of theExhibition Industry.

First held in 1997, the event isdesigned as a platform forinvestment negotiations betweenforeign investors and their Chinesecounterparts, and theannouncement and promotion of

new investment policy by nationaland regional government bodies.

Because of Xiamen’sgeographical location, the event alsohelps to promote economic andtrade exchanges across the TaiwanStrait. Last year’s event wasofficiated by Wu Bangguo, amember of the Politburo andchairman of the StandingCommittee of the National People’sCongress (NPC). Wu was joined byLi Jianguo, deputy secretary-generalof the NPC Standing Committee,and former vice-premier Wu Yi.

A total of 15,118 overseas visitorsfrom 112 countries and regionsattended the event, includingdelegations from 636 organisationsfrom 108 countries and regions.They were joined by the 55,000mainland visitors. The conferencesheld concurrently with the event

attracted audiences of more than 20,000.

Agreements for 493 investmentprojects were signed, involvinginvestment of US$21.45 billion,including foreign funds of US$17.37billion.

The show is also popular amonginvestors from Taiwan. Last year,there were in excess of 4,000businessmen representing morethan 100 organisations.

This year’s show, to be heldbetween September 8 to 11, will be atthe new Phase III of the ExhibitionCentre, which has become a symbolof Xiamen.

The centre has a totalconstruction area of 230,000 squaremetres in its first two phases, and afour-star hotel.

Phase III will add another 160,000square metres.

Global investment fair counts on big numbers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Keith Chan

The opening ceremony at last year’s China International Fair for Investmentand Trade in Xiamen