We are developing the social individualist meta-context for the future. From the very serious to the extremely frivolous... lets see what is on the mind of the Samizdata people.

Samizdata, derived from Samizdat /n. - a system of clandestine publication of banned literature in the USSR [Russ.,= self-publishing house]

A belated report on a trip to the wild East.


street.JPG

badjob2.JPG

Much has been said and written (some of it by me) on the growth of the Chinese economy and the rise of China as an economic power, and of the growth of an immense manufacturing region on the sides (particularly the east side) of the estuary of the Pearl River between Hong Kong and Guangzhou (Canton). If there is a workshop of the world today the way there was in the north of England in the mid 19th century, then this is it. I have for a while wanted to go and look at it, but I have usually lacked either the time or the money. Ideally I would like to start in Hong Kong, work my way upstream through Shenzhen and Dongguan to Guangzhou, and then back down the other side of the estuary via Zhongshan and Zhuhai to Macau, on the opposite side of the estuary to Hong Kong.

maa.JPG

But alas I have still not been able to do this. However, in March I arranged a trip to Australia to visit my family. And I was able to manage a stopover in Hong Kong for three days. Although I was not going to be able to do the trip up and down the estuary that I had hoped to do, I was at least able to spend one day doing something a little interesting, which was to cross the border from Hong Kong to Shenzhen in China proper.

Well, sort of in China proper.Shenzhen is a “Special Economic Zone”. China gave Shenzhen this status in 1980 . (The status was subsequently given to Zhuhai across the border from Macau, the port of Shantou north of Hong Kong, Xiamen in Fujian provice across the water from Taiwan, and the southern island province of Hainan). These areas were given more economic freedom that the rest of China, and more importantly were open to investment from and trade with the rest of the world. This was convenient with the people of Hong Kong, as at that time Hong Kong was undergoing the transition from poor to rich, and labour in Hong Kong was becoming too expensive for the traditional textiles and other low cost manufacturing base to survive in Hong Kong. What happened was that the manufacturing moved across the border to Shenzhen, a boom ensued, and people (to the extent that they were allowed to) flocked to Shenzhen from other regions of China. Since then, much the same thing has happened to Shenzhen as happened to Hong Kong,although Shenzhen remains a less sophisticated place.


shoping.JPG

A lot of trading and lower level services, including that with slightly more questionable business practices, has moved to Shenzhen. Labour has become too expensive in Shenzhen for a lot of the low cost manufacturing to take place there, so it has moved further upriver, particularly to Dongguan. (Capacity constraints are much more stretched on the east bank than the west, which is the impetus for a proposal for a huge bridge connecting Lantau island in Hong Kong with Macau and Zhuhai on the other side of the estuary, construction of which is scheduled to commence later this year).

In any event, on Sunday morning I got the train from Kowloon to Lo Wu and (after a few hassles with getting a visa at the border) crossed over into Shenzhen.


chelsea.JPG

I guess this makes David Carr happy

Initially it felt like sleazy border towns everywhere, but it ultimately turned out to be far more interesting that that. Compared to Hong Kong, the place was dirty. I was approached by a myriad number of people trying to sell me cheap counterfeit DVDs, a smaller but still significant number attempting to sell me cheap prostitutes, and one or two people offering to be my “guide” for the day.


grime.JPG

The shopping malls nearest the border crossing were filled with with all kinds of cheap crap. Certain things were familiar, however.


walmart.JPG

A walk a couple of blocks further I found a nicer looking shopping mall filled with a mixture of genuine western medium to high brand name stores and a variety of other stores selling similar goods but with brand names and styles so close to the western ones that they would not be allowed in most western countries due to violating local trade mark law. There were relatively few customers. Most of who there were appeared to be Hong Kong Chinese looking to buy stuff for less than they could in Hong Kong.

Some of the advertising was good, though.

trainchin1.JPG

Oooh. One for Brian

Disappointment so far. Where was this legendary city of economic vibrancy? At the bottom of the shopping mall was a subway station. The length of the lines and the number of stations made it obvious that Shenzhen consisted of a lot more than just the bit closest to the Lo Wu border crossing, so I decided that I would do something I do in many foreign cities, which is get on and off public transport almost randomly and see where it takes me.

Now, Shenzhen is physically an odd city. Rather than being densest in its centre and having less dense suburbs around that centre, the city is a long and narrow line of towers that essentially follows the border with Hong Kong. And when you look at the subway map, you see this. It consists of one long thin line with other shorter lines crossing that one at right angles. After buying a subway ticket and noting that a place where there is a staff member standing at each ticket machine to assist customers is one where labour is still cheap, I got on a train, observing my fellow passengers and what they were doing and carrying, and looking at the advertisements on the statiions on the walls of the tunnels

After about three stops, I reached a station where (a) there was a surge of people onto the train and (b) that one person who was getting on the train was clutching a box containing a computer keyboard and that another was carring something that looked about the size of an ATX tower. These struck me as good signs that I was near somewhere interesting, paritcularly if I was looking for stuff related to great centres of electronics manufacturing, so I jumped off the train and walked up into the street. Bingo. Large, modern looking shops, mainly devoted to electronics, disappearing into the distance in either direction. Great.

street.JPG

The closest building to the railway station was something described as an “Electronic World”. I walked in, and my eyes, used to the British retail scene, were immediately blown away. This building had five floors, each of them about the size of a floor of a large department store.


vast.JPG

While I was immediately impressed by the scale of this, the products for sale on the lower two floors were a little too low level for me. Integrated curcuits, cables, detached earphones, more integrated circuits, LEDs, magnetic tape, antennas, capacitors, all sorts of other things that are no doubt fun if you are an electronic engineer, but which I don’t know how to put together.


ic.JPG


led.JPG

Shuji Nakamura is my hero.

However, ascending a couple of floors, I found the sorts of computer components I could do something useful with: motherboards, hard drives, optical drives, CPUs, graphics cards, DIMMs, cases, power supplies. It was really PC builder’s heaven. And the scale of the place was just glorious. It was so enormous. THere was so much to choose from.

None the less, it was still clear that I was in a place poorer than London, or Hong Kong itself. Most of the CPUs on sale were actually Pentium 3s . While I would like to believe that the meaning of this was that the people of CHina had evaluated more recent options carefully, had concluded that the Pentium 4 Prescott core was an unspeakable abomination, and had thus descided not to upgrade for reasons of good taste, in reality this was not likely to be it. A lot of the components on sale were made locally, and these were really cheap compared to what I would pay in England. However, CPUs are sufficiently high up the food chain that they have to be bought from American companies, and they thus cost much the same in China as they do in America. And even in Shenzhen, incomes are not that high by western standards. (One the other hand, it could have been that the people of Shenzhen just wanted to be able to run Windows XP starter edition, but that I really, really doubt).


trainchin2.JPG

All praise to the penguin

Still, though, I absolutely loved this place. I wandered around for a couple of hours, marvelling at the choices available to me, although not so much at the prices, because I did not know the prices. (This was largely a wholesale market, and prices were not generally marked and people did not speak English. Clearly if I had wanted to buy something intensive haggling would have been in order, and I wasn’t properly equpped).

Eventually, though, I wandered out into the street. There was another, similarly enormous electronics market across the road. Rather than go into that one, I wandered up the street. After a quick refueling stop in which I discovered that this was the sort of place where girls take their motherboards to McDonald’s with them, I discovered that this street did far bigger retail business than wholesale, regardless of the size of the wholesale markets.


socketa.JPG

Socket A is a fine platform, and it will serve her well. A lot of system builders including myself rather regret its impending demise

There were malls and malls and malls and shops and shops and shops selling all kinds of electronic goods. These were much the same sorts of goods one finds in the west, except in larger numbers. HDTV appears to be in the process of arriving in China, which is more than can be said in Europe. Televisions, DVD players, sound systems, photographic equipment, mobile phones. All were profusely available.

Judging by the number of people looking at them in shops, and at the prominence of the displays, it is clearly the case that the iPod is at least as much an item of techno-lust in Shenzhen as anywhere else, but once again the lower income factor does come into play. Whereas in London every second passenger on the Underground has an iPod, in Shenzhen I don’t think I saw a single person walking down the street with the telltale white earphones.


ipod.JPG

But whereas iPods may be a little too expensive, mobile phones are everywhere, seemingly having the same level of penetration as in any western country. (I have heard the factoid that there are more mobile phone subscribers in China now than in the United States. I’m have no actual facts to tell me whether this is true or not, but I suspect it likely is).

Mobile phone marketing was everywhere, and probably more aggressive than most other advertising. And I think I have to nominate being required to stand on a pedestal in the middle of a shop holding up a mobile phone while being dressed in orange as coming in absolutely at number one on the list of jobs that I am glad are not mine.

badjob.JPG

And there were a number of malls filled with the sorts of little cubicle based independent retail computer shops that you find throughout the world and which are invariably run by little Chinese guys. (In China they are run by little Chinese guys). What was remarkable was not so much the contents of the stores but the size of them.


cub.JPG

I bought a little computer detritus for myself and other members of my family – a flash drive, a Bluetooth dongle, and a wireless mouse for my laptop. These cost practically nothing. I could have browsed and haggled all day. Whenever I was out in the street (or even in the shops) lots of people approached me, wanting to sell me ludicrously cheap copies of Windows, Office, and Pagemaker. Once upon a time a place called the Golden Computer Arcade in Sham Sui Po in Hong Kong was the global capital of pirated software, but this is no longer so. Hong Kong has cleaned up its act in this regard. But the market for that kind of thing is nearby for those that want it.

But I was tired and jetlagged. I sat down in a Starbucks and ordered a giant latte to try to help with these things. I pulled my laptop out of my backpack and switched it on. Impressively, there was free WiFi, which I think was wafting in from somewhere else nearby rather than being provided by Starbucks,, so I quickly downloaded my e-mail, checked the news, sent a few quick “Hey, I am on my laptop in a Starbucks in China. Isn’t this cool?” messages to those of my friends who happened to be online, and contemplated the general coolness of the modern world. I had no trouble reading (and even posting to) Samizdata, but my own blog was inaccessible. Apparently blogspot is blocked by the great firewall of China.

But the day was nearly over. I wanted to look at a little more of Shenzhen before I was done, and I wandered away from the computer markets into a nearby entertainment district. This seemed a pretty respectable neighbourhood, full of restaurants, amusement arcades, ice cream parlours, fashion stores, and even bookshops.

arts.JPG

I had a brief meal in a Chinese cafetera, but mainly just wandered around. It was interesting, but didn’t do quite as much for me as the computer markets had. This part of Shenzhen did not feel like a border town, just a place where people might go for a meal on a saturday evening. Most of the people were not Hong Kong but mainland Chinese people.


pin.JPG

I quite genuinely would not want to live in a world that does not contain giant bowling pins with writing on them in languages I do not understand. But that is because my metacontext is fundamentally cosmopolitan.


fish.JPG

Having to remove fish that have just been chosen by diners out of the appropriate cubicle of a massive outdoor beehive of fish tanks is at least probably more fun than holding up a mobile phone all day. And you don’t have to wear orange.

Rather than getting the underground back to the border crossing, I chose to walk. This gave me a better picture of the size and nature of Shenzhen. It is a big city. I don’t think anyone is quite sure how big, but it is at least four million. (Add this to seven or eight million in Hong Kong, and it becomes clear that this metropolis is big. I walked along a round parallel with the Hong Kong border but maybe a kilometer from it back towards Lo Wu. Running off this main road were various other streets full of restaurants and shops.

But as I walked the couple of miles to the border crossing, the city I was in slowly evolved back from being a rich mainland Chinese city to being Hong Kong’s border town. The number of fast food joints, barber shops, slightly seedy looking bars, and the like increased. People once again started approaching me about pirate DVDs and strip clubs rather than pirate software.

eng.JPG

Eventually I found my way back to the border crossing and railway station. By the time I got there there was an enormous stream of people crossing the border and getting on the trains back to Kowloon. If one crosses the (always busy) Lo Wu border crossing at 9pm on a Sunday evening, half of the population of Hong Kong crosses it with you.

I had to stand for the first portion of the train journey, but I got a seat soon enough. (Next time I might pay extra for first class and a seat all the way, however). Most of the people of Hong Kong live in the New Territories, and these people were not going into Kowloon but were getting off to go home or to change to other lines much sooner. None the less, I was glad to get back to the guest house where I was staying (run by Ghanians – Hong Kong is a true international city) and get to bed.

As a final addendum to this, I did actually go to the once notorious Golden Computer Arcade in Sham Sui Po the next day. It was full of higher end stuff than most of the stuff in Shenzhen. Not that many Pentium 4s here either, but in this case for the entirely sensible reason that the system builders of Hong Kong prefer the Athlon 64, as indeed all sensible people do. But this place was perfectly respectable. It was about as exciting as a branch of Dixons.

gold.JPG

No, that is too harsh. Maybe about as exciting as a Media Markt, meaning that it is filled with good stuff (and at substantially better prices than you get in Europe or America). But it’s hardly the wild west any more

Tweet about this on TwitterShare on FacebookShare on LinkedInShare on TumblrShare on RedditShare on Google+Share on VK

11 comments to A belated report on a trip to the wild East.

  • I'm suffering for my art

    Great post! Loved the photos. I went to an electronics market in Beijing near the Summer Palace that looks very, very similar to the one you visited. Six or seven levels of all kinds of electronic equipment. Haggle ’til your tongue falls out.

    A couple of tiny comments:

    There are definitely more mobile phone subscribers in China than in the USA – I read there are over 150 million accounts in China and that number is growing by millions each month! Alternatively, mobile phone penetration in the USA is relatively low for an industrial nation.

    So you still can’t access Blogspot pages, eh. Hardly surprising, considering the anarchic nature of blogging. I doubt Zhongnanhai would approve of its subjects being able to construct blogs markedly more outspoken than the simpering examples we see coming out of mainland China at present.

  • I'm suffering for my art

    I should have said “developed”, not “industrial”.

  • Verity

    Great post, Michael! I loved it!

    Agree with Suffering about mobile phones. The Chinese always seem to latch on to trendy new technology before anyone else. When I was in Singapore, absolutely the entire citizenry had mobile phones and were shouting into them walking down the street, yet in England at that time, very few people had mobiles.

    I love Hong Kong, and I’ve always personally wanted to go to Shenzhen. At one time quite recently, gansters in Hong Kong were taking orders for Mercedes from Shenzhen and as soon as they got an order, they went out and stole one and drove it across.

    A most enjoyable post!

  • Will (Davis, CA)

    “If there is a workshop of the world today the way there was in the north of England in the mid 19th century, then this is it. I have for a while wanted to go and look at it, but I have usually lacked either the time or the money. Ideally I would like to start in Hong Kong, work my way upstream through Shenzhen and Dongguan to Guangzhou, and then back down the other side of the estuary via Zhongshan and Zhuhai to Macau, on the opposite side of the estuary to Hong Kong.”

    I worked in a Chinese law firm in Shenzhen last summer, and I accompanied one of the partners to Dongguan a few times to see some clients. The trip there, at least by car, is indeed an amazing sight. As you said, that area is one of the workshops of the world, and during a large portion of the drive there are small factories literally as far as the eye can see. I’ve never seen anything like it; very Dickensian. Some scattered parts of the Shenzhen zone itself are like that, but not on anything like that order of magnitude. I’ve seen Asian metropolises before, but this was something vastly different.

    Anyway, your post brought back some familar sights and memories, so thanks for that. The underground was still under construction when I was living there, so I’d like to see the difference now.

    -Will

  • Chet

    Cool pics! My wife and I are in the process of adopting from China, and look forward to seeing at least some of what you saw.

  • I'm suffering for my art

    What’s that Chinese saying? You think you’re brave until you set foot in Manchuria. You think you’re learned until you set foot in Beijing. You think you’re rich until you set foot in Shenzhen.

    Familiar sights, indeed! There is definitely an ‘identikit’ modern Chinese city, with the same kind of skyscrapers all sporting the same garish light shows/weird lighthouse style revolving light beams. I passed through several large Chinese cities, and they all look more or less the same; Shanghai being the epitome of the style. Beijing is the great exception; that is truly a distinctive city.

    This post made me look through the photos I took in China. I had taken a photo of the floor of the electronics market I was talking about earlier. It looks exactly the same as the one posted here! Those department store-style markets are great, though tiring and time-consuming places to shop. You can get a bargain if you’re willing to haggle with 10 different vendors or more.

  • Bernie

    Great post Mr Jennings. I’d like to see you make a tv documentary about the place. The creativity and industriousness of people free to engage in trade is always a wondrous thing to behold but especially where such freedom has been denied for so long.

  • Most insightful and a thoroughly enjoyable read.

    Thanks.

  • Johnathan

    Michael, very nicely written and great pictures. It actually makes me want to go and see the place.

    Verity is right about the lust for gadgets in parts of Asia. They seem to be a few years in front of anyone else.

  • art thou understand

    Nice writing,i am a shenzhener,i can understand what you think,but i can’t change everything,you know,China is a so big country that must have big problems,China is developing,you don’t know anything about China or Shenzhen’s history,how could you define what’s what decidely?by the way,if one call Manchuria,sina or sth like that,he/she will be killed in China,so pleeeeese don’t do that anymore.thanks a lot.(my Eng is not good,i can’t express my meaning exactly,i hope the onwner of here could forgive me,and also could forgive every bad things that made you feel disappointing when you in shenzhen)