Business Week has a great piece on China's hidden inflation. I would not go so far as to call Beijing and Shanghai Potemkin villages, but their growing opulence masks complex fiscal policy and uneven economic development.
The important thing to remember about China's two crown jewels is that they are truly international cities--and wholly otherworldly in comparison to the rest of the country. Beijing has a political pulse to rival that of Washington, DC. The seat of the PRC's political power is flanked by the international diplomatic community on one side and the government affairs reps of the Fortune Global 500 on the other. The fact that few embassies spare any expense on perks and amenities, and the absence of anything like a Honest Leadership and Open Government Act, means expense accounts drive a large portion of the city's economy. The demand for all manner of luxury goods and comforts of home is booming, and for those with the means, Beijing has not been a "hardship" post for over a decade (I've been to Brussels twice, and loved it, but the best Belgian meal I've ever had was served in Beijing--and depending on the route, I could pass a Ferrari, Porsche, or Rolls Royce dealership on my way home from work).
As for Shanghai, what it lacks in political muscle it makes up for in money and glitz. But more than that, the sheer vastness of the city cannot be overstated. What I enjoyed most about living in Beijing was that a 60-minute drive was enough to get out of the city for some (relatively) fresh air (it can take a bit longer today). By contrast, Shanghai is virtually inescapable; one must surrender to it or drown in the concrete.
No comments:
Post a Comment