[uw.chinese] News Digest

Bo Chi <chi@vlsi.waterloo.edu> (02/03/91)

           * * *  C H I N A   N E W S   D I G E S T  * * *

          (CND Canada Service, Weekend Leisure Readings)

                          Feb. 3, 1991


Table of Contents
                                                             # of Lines
1. Leaving Behind the Iron Rice Bowl ........................... 147
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1. Leaving Behind the Iron Rice Bowl
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The Globe and Mail, Saturday, February 2, 1990
Entered by Haosheng Zhou at UBC.
From: Haosheng Zhou <hszhou@ee.ubc.ca>
By Jan Wang
China Bureau
Beijing

YANG Oulin's dream has come true. In one year, he made more money
than  most  Chinese  will see in a lifetime. This week, Mr. Yang,
23, boarded a plane for Berkeley, Calif.

Zhou  Yue's  dream  is  just  starting. At the moment, though, it
seems  a  bit nightmarish as she freezes in an unheated hovel and
works 70-hour weeks.

Both  have  done  what  most Chinese would never dare -- quit the
cradle-to-grave security of their state job. About 80 per cent of
Chinese,  mostly  peasants,  work for themselves. Until recently,
their  biggest  ambition  was an iron rice bowl, a state job with
health  care,  subsidized  housing  with  cafeterias  and  light,
undemanding work.

Such  jobs  were  so  coveted that a steelworker might take early
retirement  so  his offspring could inherit the slot. Indeed, the
penultimate  punishment  short  of  jail terms for some Tiananmen
Square dissidents has been dismissal from the job.

But  in  the  past  decade  the  iron  rice bowl has grown rusty.
Salaries  have not matched inflation. And with the opening to the
West, ambitions young people have new goals.

"That iron rice bowl isn't worth regreting," said Ms. Zhou, 24.

Still,  the  plunge  into  capitalism  has been a shock. Mr. Yang
became an enterpreneur and rode a boombust cycle. Ms. Zhou became
a  receptionist  and is learning about the cold, cruel world out-
side the state cocoon.

Ms.  Zhou  went  to  work at a state publishing house three years
ago.  She  soon  clashed with her supervisor. A college graduate,
she  wanted  to do more than type. He thought she was not subser-
vient enough.

In  the  political  witch  hunt after the 1989 massacre, Ms. Zhou
naively  admitted  going to Tiananmen square. After all, her com-
pany  had  even supplied the bus. Then she learned her colleagues
all denied going, "even the guy who drove the bus."

Unable  to stand the blistering criticism sessions, Ms. Zhou quit
her  job  last fall. Through friends, she found a job at a joint-
venture  company  answering  phones.  She tripled her salary, but
found herself with new expenses.
For  instance,  she  lost  her state-as-signed dormitory bed. She
moved into a damp, windowless storeroom. It was free, but one day
it  flooded.  So  she  rented  a small room without heat, running
water, a toilet or kitchen.

A  public  outhouse is half a block away. She gets a hot lunch at
work,  but  can't affort restaurant meals, so she eats peanuts or
bread  for  supper.  In  the  evenings, she hibernates in bed. By
morning, the water in her toothbrush mug has iced over.

Last  month  her  manager cut her salary because he considered it
too  high. For the extra money -- and the heat -- Ms. Zhou took a
night  secretarial job with a Japanese firm. But her manager, who
had  introduced  her  to  the  Japanese,  kept 80 per cent of her
salary for his company.

Ms.  Zhou  was  outraged  but  kept  her mouth shut. She stays on
because another manager has promised her a promotion.

"I  have no regrets," she says. Like Mr. Yang, her ultimate dream
is to study abroad.

A decade ago, Mr. Yang, a sofspoken man with a mop of silky hair,
failed  college entrance exams by two points. At 21, he got a job
at a state laboratory. His work, washing test tubes, took an hour
a  day.  In his spare time he read biographies of Henry Kissinger
and U.S. industrialist Armand Hammer.

Inspired, he hung some calligraphy on his bedroom wall. "The less
opportunity there is, the harder I struggle."

By  1985,  he  began  planning  his  departure.  First he studied
management  at  night school. Then he looked for the right oppor-
tunity.

Two  years  later,  he  found  it:  a vacant restaurant at a busy
intersection.  The  rent  was  exorbitant.  But Mr. Yang, a slick
dresser  who  weres  Italian tasseled loafers and double-breasted
trnch  coats, persuaded the landlord, a school, to defer the rent
until the end of the year.

He  gambled  that  electrical  goods were hot. Using a network of
friends  and contacts, he obtained merchandise on consignment. he
could sell first, pay later.

"Others  couldn't  sell the staff. It was the same whether it sat
in  my  store or in their warehouse," Mr. Yang recalls over lunch
in  a  posh  French restaurant. "We'd sell anything -- air condi-
tioners, copiers, televisions, refrigirators."

When  he  quit  his  state  job  in 1987, his parents, both state
employees, were horrified. "We fought for three months," says Mr.
Yang, spitting a watermelon seed into the plush carpet.

But  his  timing  was perfect. Rumours has sparked an epidemic of
panic  buying.  The  first year, Mr. Yang made a profit of 90,000
yuan  ($19,000).  He  hired seven staff, leased a chauffeured car
and  installed  a  private  telephone.  He  opened  a U.S. dollar
account at the Bank of China. And he began smoking Marlboros, the
quintessential sign of the Beijing nouveau riche in Beijing.

The  next  year, consumers went crazy over video-cassette record-
ers.  "We  raised  our prices every three or four days," he says.
Net  profit  soared  to  700,000 yuan in 1988. To match that, Mr.
Yang would have had to work at his state job for 424 years.
"I  couldn't  believe  it was so easy," he exults. It wasn't. The
next  year  was  1989. The economy was edging toward a recession.
The Tiananmen Square crackdown in June was the final blow.

his  business  died  as  quickly as it had flourished. There were
other  problems.  Flush with sucess, he had poured a third of his
money  into  a sourenir shop. But tourism dried up after the June
massacre.

It  was  time  to  activate  the  second  part of his plan: going
abroad.  Twice  ha  applied for a U.S. visa and was rejected. The
third time, he got it.

A  job  with  a  trading company and English lessons await him in
California. He won't disclose his current net worth, but he prob-
ably has at least 500,000 yuan in cash (about 135,000).

"I  have  enough  to live on for a few years," says Mr. Yang, who
has  stayed  single  despite being one of Beijing's most eligible
bachelor. he hopes to return one day, perhaps as a U.S. citizen.

"See  this  ballpoint  pen?" he says, grabbing a reporter's cheap
Bic  import.  "Chinese  pens  are  no good. I'd like to bring the
technology back and make pens like this in China.

**End**

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