Building China too Fast and the Struggle to Slow Down

August 18, 2011

Andrew Thomas of Aljazeera English reported from Chuzhou, China July 13, 2011.  He tells us about real estate agents in Beijing canvassing the traffic during rush hour, which happens to be most hours in China’s capital.

In the U.S., we might see homeless people going car to car offering to clean windows for a dollar but in China, the odds are those people going car to car will be real estate agents handing out flyers urging people to buy homes.

During most of the day, one can get around Beijing faster on foot or using the subways than driving a car or taking a taxi, which usually results in sitting dead in traffic breathing fumes from other cars.

Thomas reports that the real-estate agents will do just about anything to sell apartments hitting the market. The reason is that the Chinese are building more new apartments than any country on earth.

In Chuzhou, three hours from Shanghai, Thomas takes us on a tour of what he calls an “unremarkable town” and says this level of housing development is happening all over China.

Thomas says, between 2009 and 2010, there was a 41% rise in housing construction as prices soared. He then questions if Chinese speculators are driving this housing bubble.

In addition, he says China’s electricity authority, last year, reported that over 65 million homes use no power because they are standing empty as prices keep going up.

Thomas says China’s government is worried and wants to avoid a real estate bubble bursting so they have raised interest rates and increased the minimum down payment people must pay for second homes.

Stephen Joske of the Economist Intelligence Unit says, “We are not looking at a bubble burst resembling anything like what’s happened in the U.S.—probably a short correction.”

Therefore, for economists in the West that keep predicting China’s housing bubble will burst and slow China’s growth, think again.

As for aspiring home buyers, many in China are waiting to see what happens and are hoping prices go down. Thomas says a price drop could hurt many overseas markets that depend on China’s growth and development.

If a real estate bubble bursts in China, the odds are that the shock waves will be felt worse outside China in countries still recovering from the 2008 global financial crises caused by the private banking and financial sector in the United States, and Thomas explains why that may happen.

The reason for this speculation may be the central government’s plans to move a few hundred million more rural Chinese into newly built urban cities and new homes in older cities as China transitions from an economy dependent on exports to one driven by middle class consumption.

These property speculators are betting on the future.

Discover more from The “What if” Housing Bubble in China

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

To subscribe to “iLook China”, look for the “Subscribe” button at the top of the screen in the menu bar, click on it then follow directions.

7 Comments | business, capitalism, China, Chinese middle class, economy, environment, government | Tagged: , , , , , , , , , , , , , , , , | Permalink
Posted by Lloyd Lofthouse

Punishing Food Fraud in China – Part 1/2

August 14, 2011

This is how capitalism works. Wall Street Journal.com reports, “Ink, dye, bleach and toxic chemicals … have been found recently in food products in China, reigniting fears over food safety despite repeated government pledges to crack down on tainted eats.”

Sounds bad, but do not judge the Chinese before reading this entire two part series to find out that China is not alone in the struggle to make food safer to eat.

It isn’t as if China’s government is not trying to improve food safety. Al-Jazeera’s Melissa Chang reports from Beijing about China’s government vowing to improve food safety laws. In fact, according to Melissa Chang, more than 2,000 people across the country have been arrested for failing to meet food safety standards.

The Wall Street Journal says, “One of the biggest issues is the drive to make a buck at any cost, says Lester Ross, a Beijing-based attorney with U.S. law firm WilmerHale. Some companies see that by using additives, they can cut overhead costs or boost profit margins, and they merely aren’t thinking about the affects the additives will have on consumers, Mr. Ross says.”

Melissa Chang demonstrates how a chemical sauce to turn meats such as pork into beef can change any meat that isn’t beef into beef so the enterprising capitalist can charge more and increase profits.

Since living in China means awareness of such trickery, “Many Chinese,” Chang says, “pay a premium to know exactly where the food they eat comes from.”

Chang then talks about an organic food cooperative in the suburbs of Beijing, which was established by families to buy directly from organic farmers and the project has proven to be very successful.

However, Chang says, “Even the best intentions (may) go awry.” Organic in China doesn’t mean the food would qualify as organic outside China since so much of the air and water is polluted there.  It is a challenge to grow quality produce.

“Achieving better standards will take years,” Chang says.

However, what about food safety in the U.S.?

Continued on August 15, 2011 in Punishing Food Fraud in China – Part 2

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

To subscribe to “iLook China”, look for the “Subscribe” button at the top of the screen in the menu bar, click on it then follow directions.

Leave a Comment » | America, business, capitalism, China, Chinese food, crime, environment, food, government, health care, legal system, media, politics | Tagged: , , , , , , , , , , , , | Permalink
Posted by Lloyd Lofthouse

A Riot is a Riot is a Riot — even when it happens in China

August 11, 2011

The Diary of a Wimpy Catholic gives a brief history of London Riots, and what he says may be applied to most countries, even China, which has more to do with anarchy and chaos than a desire to have a multi-party democracy.

The London “unrest” flared on Saturday, August 7, 2011 and the latest headline (as I’m writing this post) says, “London under siege as violence spreads across UK. Ugly scenes of violence, rioting and looting have spread across the length and breadth of London and beyond since trouble began three days ago.”

This latest “unrest” in England started in the low-income, multiethnic district of Tottenham where many are unemployed. By August 9, sixteen thousand police had been deployed on the streets of London, and Prime Minster David Cameron said, “People should be in no doubt that we will do everything necessary to restore order to Britain’s streets and to make them safe for the law-abiding.” Source: Yahoo.com

The correct way to handle this sort of “unrest” may be how quickly the US ended the Rodney King Riots of 1992 in Los  Angeles, which started on Wednesday, April 29, 1992 and officially ended on May 4 — six days later.

On the second day, the state’s governor sent in 2,000 California National Guard troops.

On the fourth day, President H. W. Bush ordered 4,000 heavily armed US Marines and Army troops to quell the riots, martial law was declared, roadblocks were set up and there were firefights between the military and the looting rioters that were setting fire to the city.

Although LA’s Mayor Bradley lifted the curfew on May 4, signaling the official end of the riots, sporadic violence and crime continued for days afterward. Federal troops did not stand down until May 9, and the National Guard remained until May 14 with some troops staying as late as May 27

The LA riots caused more than $1 billion in damage and saw 53 people killed and thousands injured.


“Contrary to what has become conventional wisdom outside China, the protesters were not demanding Western style politics and an end to Communist Party Rule.” Source: BBC Documentary Produced and Directed by Rob Coldstream (2009), which I wrote about on this Blog June 30, 2010 as China’s Capitalist Revolution – Part 1 of 9

However, when unrest takes place in China and the Chinese react as the United States did in 1992 and England’s government today, the Western media, Blogs and Internet Forums often claim the unrest was caused by the fact that China is not a multi-party democracy.

Explain why China’s people should want a multi-party democracy since many democracies are broke, in debt and mired in wars in Iraq and Afghanistan?

In fact, in the last few decades, China has reduced severe poverty more than any country, increased literacy from 20% to more than 90%, increased the lifespan from age 35 in 1949 to more than 70 today, and created a modern consumer middle class approaching the size of the US population, while poverty, unrest and unemployment has increased in England and the United States.

In addition, in contrast to the 6 days it took to end the violent unrest in Los Angeles in 1992, The Tiananmen Square protests in the People’s Republic of China occurred between April 15, 1989 and June 4, 1989 (seven weeks — not six days), centered in Tiananmen Square in Beijing, China. If you Google this unrest, most likely you will read the lie that it was a democracy movement, which it wasn’t (watch the embedded BBC video with this post to discover the facts).

When troops of the People’s Liberation Army arrived in Beijing to deal with the unrest, they were “actively opposed” by protesters. There were “battles” during the entry of the troops into the city with military casualties, and extensive roadblocks constructed by the protesters slowed the army’s progress.

How is this different from America in 1992 and London in 2011 except that the Chinese had a lot of patience to let the unrest go on for seven weeks before applying force?

More Western riots to explore, which took place in freedom loving, multi-party democracies.

1981 England riots – West Indian race riots across London, Birmingham, Leeds and Liverpool

2001 England riots – South Asian race riots in Oldham, Burnley and Bradford

2005 civil unrest in France – Widespread rioting across France

2005 Cronulla riots – Beachfront riots in Sydney, Australia

2006 Dublin riots – Love-Ulster Riots in Dublin, Ireland

2008 Greek riots – Riots in Greece, mainly centered on Athens

2010 Berkeley California riot – protesters damaging UC Berkeley’s Durant Hall and then spilling over into the city streets, igniting trash cans and Dumpsters, smashing windows and clashing with police.

1934 San Francisco Riot – Two men were killed by bullets, another by injuries, 31 others were shot and an untold number, including police, were clubbed, gassed, beaten and stoned.

Recent Oakland Riots – On January 7, 2009 a protest march in Oakland involving about 250 people became violent. Demonstrators caused over $200,000 in damage while breaking shop and car windows, burning cars, setting trash bins on fire, and throwing bottles at police officers.

In fact, here is a List of incidents of civil unrest in the United States – too many to count!

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Discover What is the Truth about Tiananmen Square? and The Tiananmen Square Hoax

Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

To subscribe to “iLook China”, look for the “Subscribe” button at the top of the screen in the menu bar, click on it then follow directions.

23 Comments | America, China, Chinese police, crime, history, media, military, politics | Tagged: , , , , , , , , , , , , , , , , | Permalink
Posted by Lloyd Lofthouse

The Damage Viral Lies and Rumors may Cause

August 1, 2011

Jeff Cole at PR 101 asked, “Why do people believe everything they read on the Internet?” Then Cole cites two examples in his PR 101 post to make a point.  In both cases, what people read and believed without checking the sources led to a panic and may have caused children to suffer and die.

If interested in more details, click on the link in the first paragraph to read Cole’s post.

His conclusion was, “Many people will believe something no matter how outlandish it might seem.”  He said, “People seem more willing to believe bloggers and others using social media without checking,” and he asked, “Doesn’t anyone check the source?”

Wanting another source on this topic, I searched further and discovered a Pew Internet Study (the first national survey of the use of social networking sites by adults) and read, “the typical internet user is more than twice as likely as others to feel that people can be trusted.”

After learning how gullible people are when it comes to reading something on the Internet, it should come as no surprise that China’s only national Red Cross society is fighting to keep the public’s trust after a scandal erupted when Guo Meimei, a 20-year-old woman, claimed on a Blog to have a link to China’s national Red Cross.

Guo bragged online about her luxurious lifestyle and triggered concerns among the Chinese public that money donated to the Red Cross in China was being misused.  Source: China Daily

After bragging, Guo Meimei became a hot topic on China’s major micro blog website, Weibo.com.  Her fans jumped from a few hundred to more than 108,000 within a short period.

Five days later, Shanghaiist.com reported that Guo was stopped at a Beijing airport from leaving China to visit Australia with her mother.

Shanghaiist‘s Robert O’Connor wrote, “Guo continued to deny connections to the Red Cross Society and asked reporters and internet users to “stop fooling around”.

When was the last time you believed something you read on the Internet without checking to see if it were true or not? A good place to start might be Snopes.com.

Discover What is the Truth about Tiananmen Square?

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

To subscribe to “iLook China”, look for the “Subscribe” button at the top of the screen in the menu bar, click on it then follow directions.

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Posted by Lloyd Lofthouse

More on China’s July 2011 Rail Accident

July 27, 2011

Passport, a Blog by the editors of Foreign Policy Magazine ran, “You think this weekend’s Chinese train crash was bad? It’s nothing compared to India’s deadly rails.”

Passport reported, “India has one of the largest railway systems in the world, carrying about 19 million passengers every day on about 7,000 trains. It’s called the ‘lifeline to the nation’, Unfortunately, that often means trains are jam packed.”

It’s worth visiting Passport for the photos to see how crowded India’s trains get.

Then a friend, the author of East of Indus, about life in the Old Punjab, sent an e-mail that said, “Accidents can occur, but Chinese technology is as advanced as anywhere in the world. India’s development is not nowhere near that level; accidents with multiple deaths are a way of life in India and don’t shock too many people there.”

At this point, I asked myself what the ratio of deaths and injured were compared to the total number of people travelling by rail in India, China and the United States.  After that, I spent several hours hunting for statistics, and finding facts for the United States was not easy.

What I discovered was, “China had 876.22 billion passenger kilometers in 2010; India had 838.03 billion passenger kilometers in 2009, and the United states had 17.21 billion passenger kilometers in 2008.

The United States has the largest railroad system in the world with 226,427 kilometers of rail (2007). China is third place with 91,000 kilometers (2010) and India is fourth with 64,215 kilometers (2011).

Then I found these statistics for the United States from an American government source.

In 1990, there were 599 fatalities and 22,736 injured in rail accidents.

In 2005, there were 525 fatalities and 10,424 injured.

In 2008, there were 514 fatalities and 7,993 injured.

In 2009, there were 458 fatalities and 7,103 injured. (Note: these numbers are much higher than the source I found for High Speed Rail Tragedy in China Reveals Small Minds in the West and may include light commuter rail). Source: RITA Bureau of Transportation Statistics

For China in 1990, no rail accidents were listed, while India had seventy killed.

For China in 2005, there were five killed, while India had 122 killed and many injured.

For China in 2008, there was seventy-two killed and 416 injured, while India had no fatalities or injuries reported.

For China in 2009, seven were killed and 280 injured, while in India thirty-two were killed and 280 injured.

Source: List of Rail Accidents (Wiki) Note: I suspect this source gets most of its information from the major media reporting on rail accidents.

In the United States for 1990, 2005, 2008 and 2009 (combined), there were about 30.3 deaths for every billion passenger kilometers traveled. In addition, according to Parilman & Associates, a National Law firm that specializes in rail accidents, “Every ninety minute (in the United States) there is a train derailment or collision.”

For every billion passenger kilometers traveled in China for the same four years, there were .02 deaths.

For every billion passenger kilometers traveled in India, there were .07 deaths.

The death rate in America was 1,515 times higher than China for each billion passenger kilometers traveled.

In addition, delays are common on long-distance Amtrak routes in the United States. This is because private railroads own the tracks used by Amtrak, and are more concerned about their own freight trains than about Amtrak’s passenger trains. Average delays vary considerably among routes. However, as of 2008, Amtrak has increased its efforts and most trains arrive on time well over 50% of the time.

Note: As a journalist, I am aware that the media does not always report on types of accidents or tragedies that happen often. However, the media does report on rare accidents and tragedies such as an airplane crash.  For this reason, it is possible that rail accidents are so common in the United States, the media does not bother to report most of them unless it is really horrendous, which leaves the public ignorant of how unsafe America’s rails are.

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

To subscribe to “iLook China”, look for the “Subscribe” button at the top of the screen in the menu bar, click on it then follow directions.

4 Comments | America, business, capitalism, China, environment, government, media, politics | Tagged: , , , , , , , , , | Permalink
Posted by Lloyd Lofthouse

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