| MY FIRST
experience of China was during the Silverstone-sponsored
4x4 Adventure Club overland drive from KL to Kumming
via Vientienne, Laos. This was in the early 1990s,
the start of China's glasnost. Traveling overland
in your own vehicle is always a broadening experience,
especially if you are traveling in a convoy. Sometimes
in far off lands, when there is a major breakdown,
there is the comfort of safety in numbers. On that
first trip to China, my main impressions were that
of driving on a meandering hill road and passing
through villages that were centuries old.
Two weeks ago, I was again in China, this time with
the Petronas Siberia 2002 overland expedition. I
was doing the Beijing to Guilin route, just a seven-day
sector of the entire 38-day event organised by the
Petronas Adventure Team. While there has been a
lot of information about the vast changes going
on in China, being there on the ground gives you
a reality check. Air crews frequently mention the
joy of shopping in Beijing, and when I was there,
I also went "WOW!". You'd think Thailand
is cheap, try Beijing. It beats anywhere in the
world for high quality, branded as well as rip-off
products.
Then, the drive from Beijing down to Gullin was
another eye-opener. A super highway, with huge ornamental
toll houses built for much of that sector. However,
the journey was an eventful experience. Total stoppages
of up to an hour were not uncommon. The convoy experienced
two dead stops, one of 40 minutes and another of
70 minutes. Most of the traffic consisted of trucks.
As a rough estimate, out of 20 vehicles, there would
be about three buses and three cars. When traffic
came to a stop, there wasn't any mad rush to jump
queue. The drivers would switch off the engine and
relax. Those who were inclined, would stroll around
the highway, waiting for the traffic to move again.
But like the proverbial blind men and the elephant,
the few day of traveling in China was a mere speck
of experience, leaving one with more questions than
answers. On the flight back from Guangzhao to Kuala
Lumpur, however, I was lucky enough to have both
amiable neighbours, both Malaysians. Four wheel
drivers both, they willingly shared their China
experience.
One of them, Tommy Tham, 43, exports papayas to
China. He said he got into the business quite by
accident. When he graduated with a diploma in 1985,
Malaysia was in recession and he could not get any
job. Then, his friend who worked in the air freight
business, aware that Tommy lived in Serdang (Serdang
then was a new village with many fruit farms), asked
him if he could collect good papayas. There was
a market for the fruits in China, his friend informed.
So, Tommy went around on a motorbike and rounded
up the fruits for the air cargo friend.
Eventually, Tommy did some market research and went
off to Hong Kong to meet the wholesale buyers so
that he could sell direct. Today, Tommy and his
brother-in-law are the owners of fruit farms in
Malaysia and those on Hainan Island. What do the
Chinese do with the papayas?
The big papayas, especially the ripe ones, are diced
and used for boiling soup. Meanwhile, the small,
solo papayas are lopped off at the top, stuffed
with abalone and shark's fins. They are then double
boiled for a premium "RM200 per person"
soup. Engrossed in our conversation, Tommy touched
on the subject of how cheap things were in China,
and how competitively-priced they were. If that
was the case, I wonder why didn't the mainland Chinese
plant papayas themselves since they had the tropical
climate in parts like the Hainan Island. In actual
fact, Tommy has a plantation in Hainan Island and
it's being managed by a RM7,000 per month"
salaried Malaysian. Wasn't that a rather large salary?
It was, under a normal circumstance, Tommy agreed,
but the primitive living conditions on the Hainan
Island farm justified it. He himself felt depressed
if he had to stay on the farm for more than a few
hours.
The fact remained, Hainan Island is not suitable
for commercial-planting papayas because it is in
the Typhoon Belt. And once too often, a big storm
would blow through, uprooting most of the trees
in its way. Besides, Malaysia's papayas are superior,
sweeter and sweet-smelling due to the good combination
of the right soil and climate. Besides papayas,
Tommy also eported carambolas or star fruits to
Europe. How come the Thais aren't doing this, since
they were so good at agriculture? Tommy said that
the Thais rent's cultivating star fruit because
they were Buddhists and their faith declared that
the star fruit was an article of faith, something
like the Buddha's heart.
The Taiwanese, on the other hand, had developed
Malaysian star fruit into a giant fruit. But this
was not popular with the European market which only
needed something to decorate cocktails, not as a
fruit to eat. Furthermore, the Malaysian star fruit
was tastier and has less fibre than the Taiwanese'.
Tommy then went on to describe about manufacturing
in China. First, it was shoes. We know that the
Malaysian shoe manufacturing industry is being decimated
by Chinese competition. Half of the Malaysian shoe
makers have closed shop. The smart ones have opened
up factories in China. Tommy, who comes from Serdang
- once the heart of the Malaysian shoe industry
- filled me in with some facts.
A RM80 pair of leather shoes made in Malaysia will
comprise RM20 leather materials amd RM60 labour.
The same pair made in China will cost RM 10 for
the leather materials and RM5 for the labor. It
costs RM1 to transport a pair of shoes to Malaysia,
bringing the total cost to RM16.00. The final and
intriguing subject he told me before the flight
touched down was the case of the lighter. Can you
imagine a refillable piezo-electric lighter being
sold at RM0.50 renminbi (1 renminbi = 50sen). So,
you can actually buy a refillable piezo electric
lighter for 25 sen. So, how much does it cost China
to make them?
And for those smart Malaysians who are investing
in automotive component plants in Thailand like
Ingress Autoventures, it would be advisable to consider
China if they aren't already there. Perhaps,
Proton will lead the way for all in the China-Malaysia
automotive trade now that it has announced a joint
venture with a Chinese company.
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