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Week in China: Shanghai's building boom | |
(1 day later) | |
As China prepares for a new generation of leaders to take power, the BBC is spending a week on the road looking at both the challenges ahead for the world's most populous nation and the advances it has made. | As China prepares for a new generation of leaders to take power, the BBC is spending a week on the road looking at both the challenges ahead for the world's most populous nation and the advances it has made. |
On day three, the BBC's John Sudworth reports from Shanghai, where the skyline is testament to China's economic boom in the last decade. | |
Day Three: Shanghai's building boom | |
If China's leaders could choose one image to symbolise their decade in power, then the Shanghai skyline might do. | |
The iconic cityscape on the Pudong side of the river was already a work in progress in 2002, but since then it has continued to rise, the gaps filled in with more real estate, more high rise office accommodation, more concrete and steel. | |
Shanghai's own building boom, just like China's in general, has provided jobs for millions of workers. | |
And the city's role as a financial hub and engine of growth has pushed per capita income well above US$12,000 (£7,500) a year. | |
As a face to show to the world Shanghai is modern, vibrant and outward-looking, and for China's economic policy makers, there is much to be proud of here. | |
But Shanghai is also a symbol of modern China in another important way too. | |
I recently interviewed an estate agent, standing on one of the upper floors in one of those luxury apartment buildings in Pudong. | |
The property, with a sweeping view of the river, was on the market for a US$2.5m price tag, and I asked the estate agent if he ever worried about the growing gap between rich and poor. | |
"I think the gap is obviously getting bigger and bigger," he said, "and some poor people are trying to make something out of it." | |
"But fortunately," he went on, "we have a very strict and very powerful government who are trying to control everything and calm things down." | |
That China's leaders are concerned about growing social unrest is well documented and that they are likely to contain it, even as economic growth slows, is for now widely accepted. | |
But some economists have been wondering whether China's system of strong government may actually be one of the root causes of inequality in the first place. | |
One of the main engines of this economy's extraordinary growth over the past decade has been massive government spending on big infrastructure projects. | |
The other engine, of course, has been exports. | |
But while government spending pumps up GDP, it is also the kind of wealth that is captured by the big state-run companies and the already wealthy elites, rather than ordinary Chinese households. | |
"China has now come to a critical turning point," said Gary Liu from the China Europe International Business School. | |
"Big government is becoming the problem, not the solution, because it is too powerful, controls too many resources, creates distortion in the economy and is stifling the innovation of enterprise," he added. | |
If large numbers of people are shut out of the economy as consumers because they are denied a share of the wealth, the argument goes, then China will struggle to build a more balanced economy in which domestic demand plays a greater role. | |
And while China prepares to anoint its new generation of leaders, in Shanghai it is not hard to find people who are too poor to consume. | |
Lou Liping, 51, lives in a tiny one room apartment within sight of the Pudong skyline. | |
She shares a bathroom and kitchen with her neighbours, and she is waiting for the old, damp building to be torn down in the hope of getting enough compensation to buy a new home. | |
"I hope they do it soon," she said, "because I'm worried that the price of property is still going up." | |
Day Two: Extending 'soft power' | |
On day two, the BBC's John Sudworth reports from Shanghai on China's ever-expanding film industry. | On day two, the BBC's John Sudworth reports from Shanghai on China's ever-expanding film industry. |
Day Two: Extending 'soft power' | |
Much has been written about China's rising economic and political power. | Much has been written about China's rising economic and political power. |
But China is flexing its cultural muscles too, setting up language institutes in dozens of countries and ramping up the global reach of its state-run news service in a bid to compete with the BBC and CNN. | But China is flexing its cultural muscles too, setting up language institutes in dozens of countries and ramping up the global reach of its state-run news service in a bid to compete with the BBC and CNN. |
In its efforts to extend its so called "soft power" there is one area, however, where it really should be doing better than it is, and that's cinema. | In its efforts to extend its so called "soft power" there is one area, however, where it really should be doing better than it is, and that's cinema. |
The potential is certainly there. | The potential is certainly there. |
Forget drafty village halls showing worthy propaganda films, China is now the world's fastest-growing cinema market. | Forget drafty village halls showing worthy propaganda films, China is now the world's fastest-growing cinema market. |
The ongoing construction boom saw more than 3,000 new screens open across the country last year. | The ongoing construction boom saw more than 3,000 new screens open across the country last year. |
At around $2bn (£1.2bn), ticket sales may still be only a fifth of America's total box office revenue, but the point is that China's middle class has still got a lot of growing to do. | At around $2bn (£1.2bn), ticket sales may still be only a fifth of America's total box office revenue, but the point is that China's middle class has still got a lot of growing to do. |
America's hasn't. | America's hasn't. |
So Hollywood is going to great lengths to get a piece of some of that Chinese revenue, bending over backwards sometimes so as not to cause offence. | So Hollywood is going to great lengths to get a piece of some of that Chinese revenue, bending over backwards sometimes so as not to cause offence. |
Earlier this year when Men in Black 3 was released in China, a scene in which Chinese restaurant workers turn out to be evil alien baddies had been cut. | Earlier this year when Men in Black 3 was released in China, a scene in which Chinese restaurant workers turn out to be evil alien baddies had been cut. |
And when the makers of another big-budget Hollywood movie, the soon to be released Red Dawn, realised a Chinese invasion of America might not look good in China, they reportedly re-mastered the footage to give North Korea a more prominent role in the plot. | And when the makers of another big-budget Hollywood movie, the soon to be released Red Dawn, realised a Chinese invasion of America might not look good in China, they reportedly re-mastered the footage to give North Korea a more prominent role in the plot. |
And so far, perhaps as a result of such careful wooing, the Hollywood story in China is turning into a full blown romance with a very happy ending. | And so far, perhaps as a result of such careful wooing, the Hollywood story in China is turning into a full blown romance with a very happy ending. |
US films have been gaining ground, even in a market where local productions are protected by a strict quota system that limits foreign film releases. | US films have been gaining ground, even in a market where local productions are protected by a strict quota system that limits foreign film releases. |
Under pressure from the World Trade Organisation, that limit has now been raised from 20 films a year to 34, and in the first six months of this year foreign films earned more than $800m in China. | Under pressure from the World Trade Organisation, that limit has now been raised from 20 films a year to 34, and in the first six months of this year foreign films earned more than $800m in China. |
Government officials may well be left wondering if the quota for foreign films shouldn't be revised downwards again. | Government officials may well be left wondering if the quota for foreign films shouldn't be revised downwards again. |
And if Chinese films are being beaten so roundly at the domestic box office, then the picture outside China makes for even more gloomy reading. | And if Chinese films are being beaten so roundly at the domestic box office, then the picture outside China makes for even more gloomy reading. |
A recent report in the English-language China Daily reported that Chinese films took just $400,000 in America in 2011, and of the 791 films made in China that year only 52 were sold abroad, although even then, most of them were co-productions rather than pure Chinese-made films. | A recent report in the English-language China Daily reported that Chinese films took just $400,000 in America in 2011, and of the 791 films made in China that year only 52 were sold abroad, although even then, most of them were co-productions rather than pure Chinese-made films. |
But some Chinese directors say the real reason home-grown cinema is struggling is nothing to do with Hollywood, but China itself. | But some Chinese directors say the real reason home-grown cinema is struggling is nothing to do with Hollywood, but China itself. |
World-renowned director Lou Ye was once banned from making films for five years and recently took the bold stop of blogging about his own battle with the censors while trying to get his latest movie Mystery approved for release. | World-renowned director Lou Ye was once banned from making films for five years and recently took the bold stop of blogging about his own battle with the censors while trying to get his latest movie Mystery approved for release. |
Once a week he posted the details of his negotiations with the Film Bureau. | Once a week he posted the details of his negotiations with the Film Bureau. |
"A lot of Chinese movie producers and investors will not make movies about the reality of life to avoid the risk of censorship," he told the BBC. | "A lot of Chinese movie producers and investors will not make movies about the reality of life to avoid the risk of censorship," he told the BBC. |
"You will notice there are very few films in the Chinese market about modern Chinese life," he said. | "You will notice there are very few films in the Chinese market about modern Chinese life," he said. |
For whatever reason, Chinese audiences are voting with their feet and China is left wondering how to nurture an industry capable of matching America's soft power. | For whatever reason, Chinese audiences are voting with their feet and China is left wondering how to nurture an industry capable of matching America's soft power. |
id="heading-2">Day | id="heading-3">DayOne: Shixia village |
On day one the BBC's Martin Patience reports from Shixia, a rural village that lies on the Great Wall, to the north of Beijing. | On day one the BBC's Martin Patience reports from Shixia, a rural village that lies on the Great Wall, to the north of Beijing. |
Dong Dexiu's wiry frame and sunken eyes are hints of the hardships he has endured during his life. | Dong Dexiu's wiry frame and sunken eyes are hints of the hardships he has endured during his life. |
But the exuberant 71-year-old, who sports a mischievous grin, says that the village of Shixia has been transformed in the last decade. | But the exuberant 71-year-old, who sports a mischievous grin, says that the village of Shixia has been transformed in the last decade. |
"I feel my life now is like living in heaven," he says, standing in his traditional courtyard. | "I feel my life now is like living in heaven," he says, standing in his traditional courtyard. |
Dozens of yellow corn-cobs are drying from the branches of tree and there are enormous baskets filled with sorghum and red beans lying on the ground. | Dozens of yellow corn-cobs are drying from the branches of tree and there are enormous baskets filled with sorghum and red beans lying on the ground. |
"In the past, we often went hungry," he says, holding a cigarette. "But while I'm not wealthy, I now have more than enough." | "In the past, we often went hungry," he says, holding a cigarette. "But while I'm not wealthy, I now have more than enough." |
Mr Dong has experienced the turmoil of recent Chinese history. | Mr Dong has experienced the turmoil of recent Chinese history. |
He was born during the Japanese occupation of China during World War II. He says one of his uncles was beaten to death by Japanese soldiers in his village. | He was born during the Japanese occupation of China during World War II. He says one of his uncles was beaten to death by Japanese soldiers in his village. |
His father then died during the Great Famine, which killed tens of million across China, over 50 years ago. | His father then died during the Great Famine, which killed tens of million across China, over 50 years ago. |
And if that was not enough, the chaos of the Cultural Revolution then followed. | And if that was not enough, the chaos of the Cultural Revolution then followed. |
It was in the early 1980s that Mr Dong says he first saw the seeds of change, when farmers in the village were allowed to sell their own vegetables for cash. | It was in the early 1980s that Mr Dong says he first saw the seeds of change, when farmers in the village were allowed to sell their own vegetables for cash. |
Since then, he says, his life has only got better, particularly in the last 10 years. | Since then, he says, his life has only got better, particularly in the last 10 years. |
The roads in the village were repaired and the authorities renovated many of the old homes. | The roads in the village were repaired and the authorities renovated many of the old homes. |
Now he gets a government pension and also receives a salary for working as a fire-guard in the nearby forest. | Now he gets a government pension and also receives a salary for working as a fire-guard in the nearby forest. |
All told, he makes about $250 (£155) a month - more money than he has ever had. | All told, he makes about $250 (£155) a month - more money than he has ever had. |
"The wheel of history won't turn back," he declares, explaining China's progress over the last few decades. | "The wheel of history won't turn back," he declares, explaining China's progress over the last few decades. |
Dong Dexiu's sense of optimism is shared by many Chinese in the small villages, bustling towns and mega-cities across the country. | Dong Dexiu's sense of optimism is shared by many Chinese in the small villages, bustling towns and mega-cities across the country. |
Lives have been transformed here and many believe that China - despite all the problems it faces - is a country on the right track. | Lives have been transformed here and many believe that China - despite all the problems it faces - is a country on the right track. |
The challenge for China's new leaders will be meeting the growing expectations. | The challenge for China's new leaders will be meeting the growing expectations. |