Oct 23rd, 2009 by AhYap
I need to learn how to write shorter posts so I can make more frequent posts so you won’t assume that I am dead!
All the coming posts will be about China, investing and health. These are the topics I am interested in. Will try my best to write in proper English but can’t promise you anything!
My Initial “Biased” View About China
I always thought China is not-that-good. I believed in all the ‘bad’ things ‘newspaper’ says about China, you know the ‘immoral’ Chinese businessmen that make poisonous toys and foods, the environment ‘unfriendly’ Chinese that cause pollution and global warming, the ‘inhuman’ one-family-one-child policy, the ‘undemocratic’ communist government, the ‘evil’ Mao Zedong, etc.
And because some of my Malay readers can’t wait to kick me back to China because they don’t like my post on sohai and prostitute, I decided to study more about China and see if going back there is a good choice!
[Actually I am researching China for investing opportunities lar.]
The more I study, the more I find out that we have been brainwashed by the newspaper (especially the Western media) about China. What we read in the paper is not reflecting the real truth behind the scene. The price you need to pay, if you are now aware between the ‘truths’ and the ‘lies’ is like digging a hole in the sand and hiding your head in it while keeping your big fat ass outside. In the short terms, things can look cloudy, in the long term, everything will be clear and you will know who is the biggest liar.
What’s So Special About The 4 Developed Countries
After world war 2, economy in the whole world is booming and we have over 100 emerging economies. We call them the developing country. They are doing very well. These include Malaysia, Vietnam, Brazil, Mexico, Taiwan, Singapore, India and a lot more.
Out of these 100+ developing countries, only 4 rise to become developed countries. Which 4? Knowing which are these 4 countries will explain everything about today’s post and serve as a STRONG support and proof or what I am writing.
The 4 countries are:-
3. HONG KONG
4. SOUTH KOREA.
Many countries didn’t make it. Some even create multiple financial crisis and disaster for themselves. So what makes the above 4 countries rise above the pack and become developed country?
Answer: They Are Mostly ‘Chinese’
“Fuck You, Koreans are not Chinese!” I heard you. But their people and country are very “Chinese”. Their tiny country is sticked to Mainland China like your balls are sticked to your body. Before they invented their own characters that look like “boxes”, they write in Chinese characters. Seoul is known as the “Han City” in Chinese before they change it to “Sou Er” 3 years ago. Chinese people are also known as Han people and 90% of the Chinese in China are from the Han ethic. When I went to Korea a few years ago and visit their ancient University, there is a statue of Confucius in the school! They study the teaching of Confucius. And the Koreans even claim that Confucius was a Korean instead a Chinese. At the end, they also like to eat gin seng like the Chinese.
So, Korean are heavily influence by Chinese culture and traditions. They are influenced by the teaching and virtue of the Chinese great old master like Confucius. So while they don’t speak Chinese, they are very similar to one. And I bet a Westerner can’t differentiate between a Chinese and a Korean.
So what’s so special about Chinese?
Chinese are simply the greatest capitalist in the world. In plain English, Chinese are the greatest businessmen in the world. It has been demonstrated again and again for the last 5,000 years. While China didn’t look good until recently, just look at how the overseas Chinese are doing, especially the 4 Asian tigers that I mentioned earlier.
China encountered a series of ‘unfortunate’ events before they have the chance to rise up again. They are fallen far behind because of the mismanagement under the late qing dynasty, the opium war by the westerners (and later by selling drugs to the Chinese), the invasion of Japan and later the Civil war between the Republic of China and the Communist Party. There were all sorts of mess in China. Everything is just ugly.
The people are poor. Living is difficult. So it make sense for many Chinese to try to make a living overseas! Exactly like a Bangla coming to Malaysia to work at Kopitiam and serve in Ipoh’s Dim Sum restaurant! Because of this, you can find Chinese in every corner of the world. My mum’s father is one of them. His mum sold the only pig at home, buy him a ship ticket and took 1 week to sail Malaysia through the South China Sea.
While mainland China was doing poorly at that time (now is different story), overseas Chinese are doing a better. Look at Taiwan, look at Singapore and look at Hong Kong. Singapore GDP per capita is 6 times bigger than Malaysia. Which means 1 Singaporean produce 6 times more than a Malaysian. Knock! Knock! The hypocrites 47 years ago (1963) voiced that Singapore would not survive for more than 3 years because it is a just a tiny dot. 47 years later, the hypocrites say that Singapore is “supposed” to be better off than Malaysia because it can be managed more easily because it is just a tiny dot. Fuck!
Dot or not a dot, it has something has to do with the people! In the last 50 years after world war II, we also place very high hopes on economies such as Mexico, Argentina, Vietnam , Thailand and Philippines. But then they are not able to make it! So what is differentiating them with Singapore? (and Hong Kong and Taiwan).
Again, it is about the PEOPLE. This is the key you need to remember, disregard to whether you are a Chinese or NOT a Chinese! Knowing this fact alone will allow you to make smart investment choices in the future!
If you are non Chinese, especially when you are Malay, you may not like what I just wrote. You may again want to kick me back to China. But if you are the new open minded Malay that is willing to learn, knowing Chinese are great capitalist and great businessmen allows you to know where to invest your money with! While feeling inferior to another race is not fun, making MORE MONEY for yourself because you know where to put your money with is VERY FUN! While face is important, think about your wallet and your bank account! You will always got your “Face” back when you have thick wallet! Pretending and ignorance will not.
Remember: Chinese Is Just Too Good About Money
I am not trying to glorify Chinese, I am trying to bring the truth to the table. Truth is something that doesn’t care whether you believe it or not. If gravity will pull us down, it will pull us down. Not believing on it won’t cause gravity to stop working. That’s call truth. Truth needs no defending! [For those who like to use war to defend their religion, please remember “Truth needs no defending”. Something that needs to be defend is not truth]
Chinese invented their own “calculator” known as abacus. Abacus is so powerful that by training yourself to imagine a virtual abacus in your brain, you can do powerful mathematics with your brain without any electronic devices! Not only you can do it without a device, you can do it FASTER than a device because you don’t need to press the number into your calculator or your computer. You just look or listen to the numbers and you can spit the answer out with your mouth! This is what all the super-genius-math class is about, a virtual abacus in your mind. Send your kid to learn!
While it look like I am saying it is the Chinese “genes” that do all the wonders, it is actually more to their virtues, culture and traditions pass down since 5,000 years ago.
Virtue #1 – Hardworking
The first virtue is Chinese are very very hardworking, i really mean “HARD” working. They are willing to work very hard, survive in very bad circumstances and still make money out of it!
Many Chinese in Malaysia have to work overseas too in places like Ireland and Japan. My aunt used to work in Japan for almost 10 years. She (and others) didn’t sleep on bed, they sleep in “cages!” A room will contain several “cages” with multiple few levels. While you might have a double deckers bed in your children room, they have 6 deckers or 7 deckers. When you go to work, you lock all your belongings in your cage. When you come home, you sleep in the cage.
So maybe your address will look something like “Cage Level 6B …”
My father’s mahjong mate used to work in a ‘black’ zone in US. It’s black because they are mostly black people that don’t follow law, they can come to you and take your money and stuff, or maybe even rape you (your ass) and beat you to death.
But Chinese can still make money in such a world! They adapt by opening stores with thick iron grills and bulletproof windows! They hire security guards armed with real guns! They only let 1 customer in at a time. And man! These are not banks and jewelries shop! They are only selling Shampoo and Maggi Mee!
Virtue #2 – Saving
The second virtue is that Chinese are very good at saving money. Unfotunately, the worst habit that Chinese have is exactly the opposite – Gambling! Don’t simple stick with Chinese friends! Stick with the savers and stay away from the gamblers!
The American (the biggest spender in the world) spends $70 for every $40 they made! I still don’t know how to do the math! Where will the $30 come from? They borrow from the future. If you are still young like me, you will have a chance to witness how US has to face this problem in the future, which will be very very ugly.
Chinese on the other hand save a large portion of their income. While the Americans buy house by borrowing from the banks, many Chinese don’t! Most Chinese (inland and overseas) prefer to use their own savings (and their parents savings) to buy house! Even when they borrow, it is their habit to put bigger down payment and pay off the loan earlier. Chinese don’t like to owe people money. (Disclaimer: Gamblers excluded).
When 1 + 1 is greater than 2
If you are hardworking and at the same time a great saver, imagine what is the outcome? These Chinese that can’t make a living in Malaysia and choose to work hard and save a lot in oversea as an illegal foreign worker that get little pay for lots of work can actually come home, buy house and car and live a lot better than their peers! Some are using their savings to start some small businesses and make a better living.
[They always come home. They come home to Malaysia, not China.]
Bringing these Virtues to Businesses
The MOST SHOCKING TRUTH that I ever got is after I reading several annual reports of the Chinese companies listed in the Hong Kong Stock Exchange. I find out that most of these Chinese companies DON’T BORROW to run their business! Not only that they are not borrowing, they are also keeping a lot of CASH in their bank accounts! American business don’t operate this way. Not only the American consumers like to borrow, the American businesses also like to borrow.
Chinese businessmen are more conservative and I prefer to invest my money with them. How about you?
How China Will Be Affected?
Now I want to ask you a question that is worth 1 million dollar, what country has the most Chinese?
This is the main difference that separates China with any other emerging countries, including India which most people like to compare China with. And you know it now, it is the people that makes the difference.
The China Miracle, the economy booming that we are witnessing right now, where the westerners like to call it “fake” and “make up” is something that you need to pay special attention to. Now I want to explain to you why China is so special to you and to the world.
As I’ve pointed out, the Chinese people is very good with money. You don’t need to teach them how to make money. You don’t need to send them to business school. It is already in their genes, in their traditions, in their virtues, in their brain or in whichever body parts you like to name.
The KEY so special to China compare to any other country is, once you are able to set the platform and the stage for these Chinese to perform, YOU DON’T NEED TO DO ANYTHING and they will perform themselves.
All that the Chinese government needs to do is to set the stage for their people to perform! There are just too many smart people out waiting to perform! Once you open up and let them do their work, they will perform and deliver, no spoon feeding and Harvard Business School require.
And it is not only the inland Chinese that is performing right now! The overseas Chinese play an even bigger role in the miracle! And it has to go back to Singapore, to Hong Kong, to Taiwan and even to Malaysia!!! (I think Korean will regret renaming “Han City” to “Sou er”)
When the Chinese government open up and says to the Chinese overseas, “We Need You And We Welcome You Back!” The BIG CHUCK of successful Chinese all over the world start to invest money back to their homeland. Because they are already very successful overseas, they have lots of MONEY and lots of EXPERIENCES. Imagine having all the greatest player in a football team! China is having all the greatest players in their “business” game.
Do you know the MOST SUCCESSFUL departmental store in China is known as PARKSON?!?!?!??!?!? And the founder and owner of Parkson is Tan Sri Cheng Heng Jem who is an experience businessmen in Malaysia? If there is a Malaysia brand that Malaysian can be proud of in China, that must be Parkson.
The largest electronics and computer components manufacturer in the world is known as Foxconn. They produce your iPod, iPhone, PS3 and many more on a contractual basis. They have 550,000 employees working in their “factory city” [Ipoh has 700,000 people, KL City 1,800,000 for comparison sake!]. Foxconn will provide food and accommodation to their factory workers and I bet they have the biggest hostel and canteen in the world! They also setup the most number of ATMs in their “city”.
Foxconn is founded by Terry Gou, an incredibly successful entrepeuner from Taiwan, who owns Hon Hai Precision Industry. Terry is already very successful in Taiwan, and see how his money and experience can do wonder in China, providing 500,000+ jobs and cheap iPod to you!
There are much much more people like Cheng Heng Jem and Terry Gou who are bringing their money and experience back to China. I am sure you will know who is Li Ka Sing! And even our local Genting’s Lim Kok Thay keep dumping money into Macau.
Many successful businesses in Hong Kong are expanding fast into China. Oversea Chinese investor will always have a head start compare to the westerners because they simply are closer to China in distance, cultures, language, name and skin colour!
Diu, I overwrite again! Isn’t that I am suppose to write short?! Let’s continue in Part 2 next time.