I first read about  “China Underground” last Friday, during my daily browse of the China blogs. I had never heard the name of Zachary Mexico before, but the review on  China Beat made me feel curious, so after work I stopped by the Garden bookshop and got my copy. Only 24 hours later I had been to a speech by the author, queued at the Shanghai literary festival to get his autograph, and finished reading his complete works. I guess this qualifies me as his fastest fan.

Over the weekend I spoke with a few friends about the book and I could  feel some resistance. Some China hands clearly disapproved of the cover’s pop approach to a grave subject like the Middle Kingdom – a friend of mine from New York even warned me against what looked like “an East Village poser”.  All this probably explains why the few  who had actually read the book were so excited about it:  they weren’t expecting it to be readable in the first place.

Not having any kind of prejudice against pop illustrated covers, I found the price tag fair and the promise of a fresh perspective on China exciting enough to give it a try.  Here’s the results. Click to continue »

My anonymous friend N. has sent in this picture recently taken in an underground station in Shanghai Xuhui. It is a poster depicting a (Kazakh?) horseman riding with a baby just at the moment when a Shanghai policeman has engaged him in a vicious exchange of toothiness.

Government slogans are some of the phrases that I find most difficult to translate from Chinese, perhaps because they don’t usually make sense.  Anyway, here is my take:  “Policemen harmoniously build peace”. And the three sub-slogans on top:  “Penetrate the bases”,  “Penetrate reality”, “Penetrate the masses”.

Yeah, said like this, it sounds like something out of 1984, but that’s only if you are not used to Chinese government slogans. This is a PR campaign that has been done many times before in China. The objective is to show the police close to the people, as explained in this old article in the Xuhui district website.

We already saw some similar campaigns in late 2008, and more are sure to come this year, as the government takes every possible measure to avert risks of instability.

On the other hand, I am not sure how necessary this is. From my own observations, policemen here don’t have the bad image they have in some places in the West. They tend to be quite humble, they rarely use violence, and they get yelled at by the citizens they are supposed to protect. More than once I’ve had them visit my house at midnight, just to shyly ask us to please turn down the music and try to not let more people in if we don’t mind.

So  I have to say that, at least in Shanghai, the government has done a good job of managing police PR. Even I find it hard to believe that it is this same 公安 (police)  who arrests activists and bloggers,  the same who kicks villagers out of their old houses marked for destruction.

The AFP dispatch says it all:

Seventy-four workers were confirmed dead and dozens trapped underground after a gas blast early on Sunday at a colliery in northern China, the worst accident to hit the nation’s mines in over 14 months.

There is something very wrong with these news.  The paragraph should end with “the worst since the beginning of Reform” or even “since the fall of the Qing”. But the worst in over 14 months!

A mine, and especially a coal mine, is a dangerous working environment – we have known very serious accidents in Europe as well. But, in the 21st century, large scale incidents with 74 fatalities becoming yearly routine is not simply an “accident”. It is a conscious act of a company manager who is gambling with the life of his workers. And there is a responsibility from the government for allowing to continue operations in some mines that should have been closed down long ago.

For the sake of comparison: Only this one incident is 10 times more deadly than the whole Sanlu tainted milk scandal. In that case, there was wide social response and the governent saw it as a serious harmony problem. A fast trial was organized, the company was dismantled and in three months there were leaders condemned. Probably not perfect justice, but at least there was some action.

But who will speak for the black faced migrant miners? There is no independent union of miners to organize protests. The general public is not concerned by a safety issue that – unlike tainted milk- will never put their own well-being at risk. The media, both international and Chinese,  will have forgotten the incident in no more than a week.

Very soon we will all turn our attention to different news and, in the meantime, the miners will still be going down, little by little digging their way into their next pocket of gas.

When I left China for the holidays I was pretty sure I would not manage to write a single line on the blog until my return. China is such a stimulating place that every day I am jotting down notes, and my blog runs 20 posts behind myself. In Europe the stimulus would stop – I thought- and I would get some rest.

As it turned out, I had forgotten the sms. I’ve been receiving a continous flow of text messages from China that have inpired me a good deal more than I would have wished. Every little spammy sms is a concentrate of Chinese characteristics, and one that tells a lot about the country if you read it carefully. Look at the one we have here, for example.

Exhibit 1 above is one of the first text messages that greeted me in 2009. It is an interesting one, and I thought I would blog it for its Chinese language and economics interest.

First of all, here is the translation:

Dear Sir,  the Nanguang Group in this city provides for those who lack funding small loans at 3% interest monthly , 10% yearly. Guarantee not needed. Interested call Manager Wang.

OK, this is not exactly news, quick loans spam have been coming in for a while already. I suppose anyone in Shanghai who gives his name card around as easily as I do gets the same, but surely I am the only foreigner who cares to read them all as they come. Because it is my mandarin homework.

This has allowed me to see the messages getting more frequent and more dodgy as the Crisis pushes into China over the last months. In the field of dodginess, this one sets a new high, featuring:

1 – Commas inserted in random places, probably to avoid automated searches for character strings.

2 – Interest of 3% monthly becoming 10% a year, when my financial calculator gives 43% yearly interest for a 3% monthly compound.

3 – Slightly more disturbing: as far as I have been able to ascertain on the internet, the Nanguang Group does not exist.

As a consequence of the financial Crisis official banks are tightening their conditions and it has become difficult for many Chinese to get a loan. This is the reason why “underground banks” (地下钱庄) seem to be flourishing these days.  Danwei recently reported that the government is planing to legalize private lenders, and set some limits to the interest they can ask. Obviously, Mr. Wang still hasn’t heard about this.

There has been a lot written about the parallel financial system of China, and how, from the beggining of reform, it has helped start many family businesses. However, this sms looks like the dark side of the system, and I would strongly advise everyone to stay away from these deals. If only for one reason: the loans are being offered indiscriminately on cell phones, which means that there is no real guanxi (network) contact between the lender and the borrower.

The main problem with these no-questions-asked credit is that somehow the lenders need to make sure that their loans don’t go bad.  In case of non performance, they cannot follow the legal procedures (since they are illegal) and they cannot appeal to a family network (since there is none). Surely they have some  convincing reasons to remind the debtors of their obligations.

So please stay out of trouble and do not call Mr. Wang.