wax tokyo trip: recap - Wharton Asia Exchange
Transcription
wax tokyo trip: recap - Wharton Asia Exchange
Volume 2 Brought to you by Spring 2010 WHARTON ASIA JOURNAL In Anticipation of the Shanghai Expo: Pavilions and 70 million visitors WAX Tokyo Trip: Recap Wharton Asia Journal | Spring 2010 Top 10 Hidden Places to go in Beijing 1 Editor’s note Welcome to the second issue of the Wharton Asia Journal! This journal is a subsidiary publication under the Wharton Asia Exchange, a professional undergraduate student-run organization of the Wharton School at the University of Pennsylvania. The purpose of this journal is to expand on the goals of the Wharton Asia Exchange in educating the Penn community about the current Asian business, cultural, and political environment. We saw a lack of publications on campus focusing on Asia, and we were inspired to spearhead an effort to revive the Wharton Asia Journal this year. Our committee (Jane Cheng, Sussy Shi, Yaowen Ma) worked tirelessly to present this issue to you. We would also like to thank our mentor, Jenny Fan, and the rest of the board of Wharton Asia Exchange for their support. Lastly, we owe so much to our local sponsors, Koreana Restaurant and Sangkee Noodle House, without whom we would not have been able to publish! This issue includes a preview of the much-anticipated World Exposition 2010 in Shanghai, an interview with Richard Block (VP Marketing for Haier America), an insider’s guide to Beijing, and a recap of WAX’s spring trip this year to Tokyo, among other articles. These articles and our efforts will hopefully expand the scope of knowledge of business in Asia in the university community. The Wharton Asia Journal is still developing, and if you like to get involved with writing or publishing, please visit www.whartonasia.net/journal. Tina Sun & Kelvin Poon Wharton Asia Journal | Spring 2010 Contributors: 2 Editors-in-Chief Rachel Bleustein Kelvin Poon Tina Sun T-off Chutima Layout Editor Jane Cheng Managing Editor Sussy Shi Business Editor Yaowen Ma Jenny Fan Jaesok Kim Michael Ro Sussy Shi Tina Sun Eli Tung Student Advisor Jenny Fan Faculty Advisor Dr. Jacques DeLisle Sephen A. Cozen Professor of Law The Wharton Asia Journal is affiliated with the Wharton Asia Exchange (WAX) student organization. The views expressed by the contributors are not necessarily those of the Wharton Asia Journal or the Wharton Asia Exchange. Wharton Asia Exchange [email protected] University of Pennsylvania Philadelphia, PA 19104 To submit an essay for review and publication by the Wharton Asia Journal, or to subscribe to the Journal, please visit: http://www.whartonasia.net/ journal/ Cover image: http://vyonyx.com/wp-content/uploads/2009/04/vyonyx_foster_uae_expo_shanghai_03.jpg Table of Contents 4 Changing Politics of Cultural Hierarchy in South Korean Transnational Corporations in China Jaesok Kim 13 China Uses Currency Swaps to Avoid the Problematic Dollar Rachel Bleustein 17 Tokyo Trip T-off Chutima & Eli Tung 20 Better City, Better Life: Shanghai World Exposition 2010 Sussy Shi 22 Richard Block Teaches the “Haier” Way Tina Sun 24 Beijing’s Top 10 for Stingy Students Jenny Fan 26 Sponsored by Wharton Asia Journal | Spring 2010 The Korean Wave and the Japanese Wave from the Eyes of the Knee-Slap Shaman Michael Ro 3 The Korean Wave and the Japanese Wave from the Eyes of the Knee-Slap Shaman Culture Michael Ro Michael Ro is a junior at the University of Pennsylvania majoring in East Asian Languages and Culture and Japanese Studies Wharton Asia Journal | Spring 2010 In a November of 2007 episode of “The Knee-Slap Shaman,” a popular Korean talk show, a Korean ballad singer named Si-Kyung Sung criticized the government regulations of Korean public radio playing Japanese music: 4 Japanese music cannot be played on public broadcast. There are many good songs, and culture is culture […] since ten years ago J-Pop has been entering Korea and they exist in the broadcast companies but the reality is that J-pop is not to be played. I think it is better that we fix such waste of energy and discrimination. (The Knee-Slap Shaman, translated by author, 11/1/2007) He was listing his grievances regarding the current status of Korean media and its limitations from the perspective of a Korean singer and a fellow radio DJ. The emcee asked the singer whether he fears the response from the Internet users, and upon broadcasting of the episode, the press duly labeled him as a controversial figure. As a result, the singer created a significantly large debate within the Internet forums regarding whether it was appropriate for the singer to give such a direct opinion against the Korean media industry and the government. The show provides a starting point for this study in that its ratings often average around fifteen percent, as compared to other rival shows during the same time slot that remain in the single digits, so “The Knee-Slap Shaman” reaches a fairly large portion of the Korean public. The idea behind the talk show is that Korean singers, actors, and more recently, non-TV personalities, come with their problems for the Knee-Slap Shaman to solve. By asking these singers and actors a variety of questions, the Knee-Slap Shaman draws out honest answers regarding their personal lives or views regarding Korean society as a whole. Furthermore, one can view the immediate public response and therefore what the citizens think about these issues and problems via the forum and discussion boards dealing with each episode of “The Knee-Slap Shaman” on the Internet. Thus, the popularity of the show, its emphasis on honesty of celebrity figures, and active participation of the Internet community allow this study to use specific episodes of the talk show as an accurate scope to view the current Korean media world.t Image source: http://wonderfulsworld.com/wp-content/uploads/2009/11/ jyp-and-WG.jpg Hosts of the popular Korean TV Show, The Knee-Slap Shaman pop cultural flow between Korea and Japan remains skewed. To do so, this paper will explain what is known as the Hanryu phenomenon in Japan, and how similar effects did not occur in Korea. Then, it will cite two widely accepted explanations for such one-way flow of pop culture: historical antagonism and institutionalization of anti-Japanese sentiments. This study will then offer an additional explanation that scholars previously have not considered as one of the primary causes –nationalistic Korean netizens – to widen the scope of view upon observing the cultural flow between the two Asian countries. Secondly, this paper demonstrates the importance of having a corresponding Japanese Wave in Korea in order to allow for the possibility of creating a foundation for the two countries to have a more positive perception towards one another. The Rise of the Korean Wave in Japan: What is Hanryu? Hanaki, Singhal, and others appropriately define the meaning of Hanryu in the following sentence: Hanryu (literally ‘Korean wave’), referring to the current fad for all aspects of South Korean popular culture –movies, music, online games, hip-hop clothes, hairstyles and cosmetics – is sweeping across East Asia like a cultural tsunami (Hanaki et al, 281). Indeed, contrary to the expectations of many people who believed in the absolute dominance of the West in the East Asian pop culture Wharton Asia Journal | Spring 2010 The purpose of this study then is to ask what is it that made Si-Kyung Sung give such an opinion regarding the regulations. What are the reasons that Korean public broadcasting still does not allow J-pop? What do Korean citizens think about this? It is clear that Korea has long since consumed Japanese culture in various aspects: karaoke and Japanese restaurants fill the night streets of Seoul, mangas occupy their own section in the bookstore, and Korean media borrows variety show formulas from Japanese companies. With the recent Korean culture boom in Japan, and given the apparent constant interaction between Korean and Japan, one would expect a reciprocal phenomenon to take place in Korea, but the peninsula currently lacks the explicit craze over Japanese culture, and the media still maintains its conservative position towards Japanese pop culture. On a bigger picture, this study serves to achieve two goals. First, it analyzes in-depth how and why the On a bigger picture, this study serves to achieve two goals. First, it analyzes in-depth how and why the pop cultural flow between Korea and Japan remains skewed. To do so, this paper will explain what is known as the Hanryu phenomenon in Japan, and how similar effects did not occur in Korea. Then, it will cite two widely accepted explanations for such one-way flow of pop culture: historical antagonism and institutionalization of anti-Japanese sentiments. This study will then offer an additional explanation that scholars previously have not considered as one of the primary causes –nationalistic Korean netizens – to widen the scope of view upon observing the cultural flow between the two Asian countries. Secondly, this paper demonstrates the importance of having a corresponding Japanese Wave in Korea in order to allow for the possibility of creating a foundation for the two countries to have a more positive perception towards one another. 5 Wharton Asia Journal | Spring 2010 scene, Korean drama found its market in Vietnam, Malaysia, Indonesia, Taiwan, and made its way to Japan in the 90s. With increasing number of Korean TV shows broadcast in Japan and their rising ratings, Japan eventually became the country that consumes Korean dramas the most other than Korea itself by 2004, thanks to the craze of Japanese women over a Korean love drama named “Winter Sonata.” 6 Studies attribute the rise of the Hanryu boom to a variety of causes. Some Japanese appreciate the creativity found in the youth of the current generation, some find attraction in the freedom of expression deriving from democracy in Korea, which leads to more outgoing lyrics and fashion sense for Korean idol groups, or to “its characteristic dynamism (as displayed in Korean dance music), highly entertaining nature, admirable production quality, and niche market position.” Because Korean media companies put emphasis on charisma upon raising popular male idol groups, it is likely that the combination of manhood and mysticism of the young idols appealed to the Japanese population, based on the response of one middle-aged Japanese woman to “Winter Sonata,” who claims that Korean entertainment provides a much more masculine image of an Asian man that Japanese media lacks. Before moving onto further discussing the Hanryu phenomenon, however, it is necessary to further look into what was the driving force behind forming the Korean Wave in Japan particularly – “Winter Sonata”. Winter Sonata and Its Effects on Japan At a first glance, the plot of Winter Sonata perplexes the audience who has not previously experienced similar kinds of drama. The main character Jun-Sang falls in love with a woman named Yu-Jin in high school, but due to a road accident, he loses his memory. Ten years later, he comes back to Korea with the name Min-Hyung and again falls in love with Yu-Jin through multiple coincidences. As they both battle through oppositions from both sides of the family, they work towards preserving their love when once again Jun-Sang gets in a second road accident and this time becomes blind. However, he regains the memory of his high school days and with it his first love for Yu-Jin and the drama ends with Jun-Sang and Ju-Jin finally succeeding in bearing fruit to their first loves. Yet, this overly complicated love story found its audience in Japan and created a massive craze over the drama and the actors. According to Public Opinion Research Division of the NHK Broadcasting Culture Research Institute, 38 percent of the entire Japanese population had seen Winter Sonata at least once in 2003. Along with such craze, numerous associated products such as calendars and perfumes were sold to Japanese women, and the actor who portrayed JunSang, YongJoon Bae, gained Scene from Winter Sonata, the popular Korean drama Image source: http://www.krystalheart.com/images/ws07.jpg fame throughout Japan to a point when he landed in Narita airport to have a fan reception, over 3,500 fans flooded the airport to greet him. With the success of Winter Sonata, more dramas found opportunities for broadcasting in Japan, such as a historical story about a cook and a physician set in the Chosun era called Dae Jang Geum, broadcast from late 2003 to early 2004, and more recently, Coffee Prince, depicting a relationship between a tomboyish girl who pretends to be a male working in a coffee shop, and a man who falls in love with the girl, shown to the Korean public in 2007. Some studies also point to the fact that with the potryal of pure love in Winter Sonata and ideas of right and wrong in Dae Jang Geum, Korean dramas had the effect of giving positive image of Korean culture to the Japanese public. Indeed, one of the avid viewers of the Winter Sonata answered: I had had a sort of hatred toward Zainichi Koreans in Japan until that time. But after watching Winter Sonata, I felt like the feeling of hatred weakened to a certain degree, if not absolutely. I began to feel closer to them and became interested in talking to them. Thus, for many viewers, Winter Sonata and subsequent rise of the Korean Wave facilitated the overcoming of past historical tensions. With a more positive image, the Japanese people became more receptive towards Korean cultural products, as shown by another interviewee who changed her dietary habits to include Korean dishes: After watching Winter Sonata, I became very interested in South Korean dramas. I watched several South Korean dramas, such as First Love, Images of Love (True to Love), and Hotelier, mainly the ones starring Bae Yong-Joon, on video. I started to pay attention to South Korean sections of TV schedules. I began to eat Korean seaweed, barbecue, and kimchi. Limits of Hanryu Research Before moving on to discuss the Japanese side of this cultural flow, however, it is important to note that this study also reveals that studies First, the study shows statistical bias in that the number of interviewees is significantly lacking to make concrete conclusions about the Japanese society as a whole, as 31 interviewees cannot account for the entire island as accurate representations of Japanese sentiments regarding the drama and Korea itself. The analysis also seems exaggerated – 3,500 people did indeed fill the Narita airport, but that is not a usual happening in Japan, and the effects of Winter Sonata in changing the perceptions of Korea is stretched a bit too far. It is impossible to deny that the Hanryu boom happened in Japan, but without a concrete tool to accurately judge how far the effects went and how much it changed the perceptions of the Japanese people regarding Korean popular culture, discussing the lack of Japanese Wave in Korea becomes much more difficult without a proper counterpart. Thus, more scholars should look into researching the widespread effects of the Hanryu boom and then look into comparing the Korean Wave with the Japanese Wave. Pervasiveness of Japanese Culture and the Lack of “Japanese Wave” In some ways, it is difficult to see the imbalance of the pop culture flow between Korea and Japan, because other cultural icons of Japan have their incredible influence in Korea, similar to what other East Asian countries are experiencing. However, this study will provide case for the existence of a skew in the culture flow by first pointing out the vast effects of Japanese culture in the daily lives of Koreans and then analyzing the television and musical scene to argue for the lack of equivalent craze over J-drama and J-pop. Manga, Sushi, and Concept Trade Firstly, manga and anime culture thrives throughout East Asia, and Korea is not an exception. Since the 1970s, Korea television has shown Japanese cartoons to the general public, albeit severely stripped of its content that contains “Japaneseness.” Furthermore, once the Korean government fully lifted the ban on broadcasting of Japanese materials, broadcasting companies began to show more anime on television to a point where today a significant portion of the time table of Tooniverse , a cartoon network primarily aimed at Korean children, provides Japanese cartoons for the general mass and online sites provide manga to children. Even dietary habits in Korea are beginning to feel the reach of Japan via plates of sushi on Koreans’ dinner tables. Korea, as one of the three main sea powers in East Asia, continues to buy fresh fish from the “moving auction” to serve the Japanese delicacy to the general public. Nowadays, it is not unusual to see Japanese restaurants serve raw fish in the middle of busy city streets of Korea and attract Wharton Asia Journal | Spring 2010 With Korean culture becoming more familiar within the Japanese population, more people became curious about the peninsula, which lead to an increase in travel rates to Korea. From Winter Sonata-related business alone, Korean economy managed to raise $12 million, which accounted for a significant boost to Korea’s cultural export. done on Hanryu and the Japanese Wave up until now have been minimal and often times inconsistent. While Hanaki’s work provides important insights into the interpretative analysis of the Hanryu wave, this paper shows that as an accurate analysis of the Hanryu boom and subsequently as a tool for understanding the Japanese pop-culture flow, it is insufficient. 7 many customers. One can even expect to find pre-made onigiri of various flavors in any regular 7-Elevens. Wharton Asia Journal | Spring 2010 Furthermore, despite the regulatory aspects of the media and the government, Korean television programs allude to the pervasiveness of Japanese culture by consuming the so-called “concept trade” from Japan. In other words, numerous Korean talk shows and variety programs borrow their show formulas from Japanese companies and tailor them to the Korean public. This is best shown by comparing “Ningen Tetris,” a popular Japanese program that requires contestants to take humorous positions in order to pass through a moving wall with oddly shaped holes, with a Korean show called “Jungshin Tong Ill.” One of its segments also featured a moving wall with holes, and the shapes often directly mirrored their Japanese counterparts. Moreover, a show named the “Warawanai Toshokan” that originated from Japan also made its way to Korea and became indigenized with the same name, once again proving that even in the television scene, Japanese culture indirectly exercises its influence. 8 Where are the J-drama and J-Pop? Despite the obvious acceptance of Japanese culture into its daily life, Korea still has not seen the Japanese equivalent of “Winter Sonata,” of Yong-Joon Bae, and of Japanese idol groups. Said another way, there is no explicit Japanese Wave in Korea. This is a surprising result in that even before the colonization of Korea by Japan, the two East Asian countries have interacted with one another through diplomacy, and based on their geographical and psychological closeness, opportunities for sharing of culture remained abundant through the flow of time. Furthermore, Kore- an and Japan had a correlation in the growth of internet and in economic activities prior to Japan’s recession, creating a similarity in the kinds of pop cultures enjoyed in both countries and their respective Internet usage in consuming pop culture, thus making it reasonable to expect similar kinds of cultural phenomenon to occur in both countries, not just one. Yet, in terms of recent popular culture, Japan has not fared well in entering the Korean market. Following its fully open policy towards Jdramas and J-pop, the Korean government allowed cable and satellite televisions to broadcast J-dramas in 2004; however the viewership ratings remain below one percent, a number significantly lower than Kdramas that sometimes climb up to 30% range in Korea, and even American television programs that seem to have gained a following, especially “Prison Break.” Most Korean teenagers continue to watch up-to-date K-dramas tailored for youth, and J-dramas remain for the most hardcore mania fans mostly consisting of Korean women who seem to feel a sense of “contemporaneity” with the J-dramas. This is nowhere close to the craze of 3,500 Japanese fans that filled the Narita airport to see the so-called Yon-sama; the Korean public cannot see Japanese actors coming to Korea in order to promote their respective dramas. The musical scene also refuses to provide an opportunity for J-pop artists to properly enter the Korean market. As mentioned before, although a radio station in Korea may play modern American pop or rock music, the DJ never selects a J-pop song for playing, or rather, has no choice but to not select a J-pop song due to the regulations within the broadcasting media companies. However, this is not only an issue within the media and the government. Most of the Korean public voluntarily listens to non-J-pop music, as denoted by the rankings within Korean music sites like Inkigayo. Even on the Korean MTV site, despite the fact that the website contains a separate category specifically for J-pop, Japanese songs never enter the top of the rankings; only upon clicking through numerous groups can one finally manage to locate a Japanese song, usually one that is sung by popular Korean idol groups who have made their debut in Japan upon riding the Korean Wave. This is in stark contrast to Korean artists like BoA and Dong Bang Shin Ki who have entered the top five of the Oricon charts in Japan numerous times, and most recently, a popular Korean idol group named Big Bang has successfully debuted in Japan with an exclusive Japanese album and placed third on the Oricon charts this year, 2009. Two Common Explanations until Now The above examples provide a legitimate case for arguing that popular culture flow between Korean and Japan is skewed. Scholars have indirectly alluded to this phenomenon, and from the various works that this study has collected, two causes – historical hatred theory and the internalization of such animosity on behalf of the government – were the most frequently mentioned. Historical antagonism between Korea and Japan Tensions felt by the Koreans towards the Japanese can be attributed to three main causes: the colonization of Korea by Japan, issues surrounding comfort women during war times, and the ownership controversy over Dokdo or Takeshima. The first cause most frequently referred to by the scholars and the media alike is what the Koreans call Iljae Gangjumgi, or the Japanese Forced Occupation. Following the victory of Japan over Russia in the RussoJapanese War, Japan made Korea its protectorate under the Eulsa Treaty in 1905, which eventually evolved into full annexation in 1910. Under the Japanese imperial rule, the Koreans were forced to change their names to Japanese, a system known as the changssi gaemyung, and to speak the Japanese language, which is the reason why older generations even today still retain the ability to communicate in Japanese. The Japanese government then assimilated the Korean royal court and drafted significant number of Koreans to the Japanese military to support the Pacific War. Secondly, the recent issues surrounding comfort women once again made the two countries revisit the unsolved problems of the colonial ruling era. During the occupation, numerous women from Korea were drafted or forcibly taken from households to serve as sexual slaves for the Japanese military, and many were released well after the war. Upon observing the bettering relations between Korea and Japan over time, ex-comfort women called for media attention and demanded the Japanese government for an apology for the war crimes, but once again Japan restrained from offering a full apology to the public and dismissed the issue, infuriating many of Korean officials and causing public anger in many of older generations in Japan. Finally, the ongoing issue of whether Japan or Korea has the rights over Dokdo Island or Takeshima continues to cause public debate and delays improvement in diplomatic relations between Korea and Japan. Economically, the island holds significance in that the ownership of the island gives large amount of sea control for the fishing industry of either country to take advantage of. More importantly however, this battle has been an ideological one, with both sides arguing that they had ownership of the island first. There have been many movements in Korea to fix the denotation of the island from Takeshima to Dokdo Island on the map. A popular Korean singer named Jang- Hoon Kim personally convinced the New York Times to create a full-page article discussing the issue surrounding the island, and to denote the waters around the island as the East Sea before calling it the Sea of Japan. Issues like these often make even the general public to have some form of anti-Japanese sentiment in the form of nationalism, creating a subtle bias against even Japanese popular culture. The government must heed to antiJapanese sentiments among the older population because South Korea, being a democratic state, largely depends on the older population rather than the youth for voting results, as older people vote more often than the younger ones. Since earlier times in history, the South Korean government has always been shaped by public opinion, and regarding the media is also no exception. It is clear from Young-Han Kim’s thesis that the citizens of South Korea banded together to boycott KBS by starting the broadcasting audience movement, which effectively changed the media broadcasting policies of the media companies and the government. This shows that the people in Korea have the power to change things even politically, forcing the government to heed to such anti-Japanese sentiments made by the people to avoid losing authority. Institutionalization of Anti-Japanese Sentiment Explanation Some scholars take this historical antagonism explanation further and add the dimension of institutionalization of such sentiments by government into the media. In other words, the government regulates television and radio so that the media would Wharton Asia Journal | Spring 2010 More significantly, some scholars accuse imperial Japan of committing a cultural genocide in Korea, meaning the Japanese government purposely attempted to destroy the cultural roots of Korea and replace it with Japanese. Education and textbooks were altered to justify the occupation and to morally train the Koreans as to reduce the anti-Japanese sentiments. The imperial rule also interfered with the traditions so as to make Korean citizens gradually lose awareness of their own history, eventually losing their “Koreanness” and becoming Japanese. The controversy continues even today as Japan refuses to apologize for many of its actions during the colonial rule, and the textbook controversy, which involves Japanese textbooks selectively omitting several details of the unjust actions done against Korea, aggravates the relations between Korea and Japan even further for many older generations. 9 Wharton Asia Journal | Spring 2010 portray Japan in subtly more negative light to the general public. In addition, to this day, Choi’s paper makes it clear that the Korean government still has powerful censorship and control over what makes the broadcast and what does not, thus making it easier for the government to affect selective exposure of the citizens and thereby make institutionalization of Anti-Japanese sentiments very possible. Going back to the context of the Knee-Slap Shaman, an episode with a former ssireum – Korean traditional wrestling – champion Man-ki Lee demonstrates this idea. The ex-wrestler, also a former ssireum sports caster, recounts an experience when on a public broadcast ssireum match he accidentally used the Japanese word “shobu” instead of the Korean word for finishing up the match, and the media officials chided him harshly for a mistake that would be considered rather minor in other countries. The public response was also rather negative; one schoolteacher even went as far as sending a personal letter to criticize his mistake and demanded a public apology. 10 With the Korean government everso sensitive to public demands and voting, it must cater to the demands of the citizens. Studies have shown that televisions and radios have large roles in shaping the public opinion towards government administrations, thus the sensitivity to references to Japanese things in the media in response to older generations is unavoidable if the Korean government seeks to improve its approval rating. Even news and documentaries dealing with nationalistic issues then becomes influenced by the government to have certain degree of anti-Japanese sentiments, thus negatively affecting the import of Japanese popular culture into the Korean media. With the control over what the general public sees and hears, it is not surprising that the Korean public opinion itself is very nationalistic as well, especially when it comes to a form of rivalry against Japan. During the first World Baseball Series when Korea and Japan met as opponents, a middle-aged Korean man was interviewed, and he commented that Korea in fact has to win because the game is against Japan. Such public attitude then may get passed onto other citizens in Korea and eventually to younger generations as well, which affect their consumption of Japanese culture and encourage them towards limiting their exposure to Japanese pop culture in the media. New Explanations to Consider The above explanations that scholars have often espoused until now are legitimate and important to understanding the one-way flow of popular culture between Korea and Japan. The biggest problem with most studies, however, is that almost all of the scholars used in this study attribute only one of the explanations to discussing this phenomenon and fails to mention the others. Given the complexity of the flow of culture, using only one of the explanations is not enough; these different aspects should be considered at the same time to provide a clearer picture of the problem. In fact, this study suggests that an additional explanation should be added to the list in accordance with the power of the Internet age, and that is the influence from the Korean netizens. Nationalism, Internet, and the Netizens Once again it is worth beginning the discussion in the context of the Knee-Slap Shaman. A highly rated episode featured a fourth-generation Zainichi UFC fighter who, due to unfortunate circumstances and discrimination in the Korean judo scene, left Korea to enter judo competitions in Japan and became naturalized – Sung-Hoon Chu, or Yoshihiro Akiyama. As expected from the previous discussion of institutionalization of anti-Japanese sentiments, the emcee asked for forgiveness of the audience upon beginning the talk show, stating that Chu is not quite proficient in Korean and may accidentally use some Japanese words throughout the episode. His stories of endeavors in both the Judo world and the mixed martial arts world were edited with subtitles and explanations so that it would evoke a nationalistic feeling on the Korean side and the interview emphasized his Korean nature rather than his current Japanese citizenship. In the end, his wish of improving the conditions between Japan and Korea came to be spun by the media as Korea offering a warm gesture towards Japan. What is important here, however, is the reaction of netizens – blog users, Internet forum users, and subscribers who leave daetgeul - or comments - on Internet articles or videos. With the rise of Korea as the Internet technology powerhouse, Korea came to have the population that uses Internet the most extensively, and the so-called Internet culture developed along with it. Moreover, Korea has constantly dealt with economic recession that started many years ago, and due to the economic correlation and similarity of societal structure between Korea and Japan, a phenomenon similar to the freetas in Japan came to exist in Korea as well, as more and more unemployed citizens spent time at home surfing the internet and leaving comments on articles and videos as a form of stress relief. With rising power of the internet, both the media companies and the government must pay attention to the response of the netizens, as demonstrated by the fact that when a popular comedian spoke negatively about Does Korea Want Japanese Wave? This study proved that the pop culture exchange between Korea and Japan remains mostly as a one-way flow. It also listed the obstacles for J-pop and J-drama in entering the Korean media industries. But why is this important? Should the Korea care that its government and the older populations refuse to allow the public to craze about Japanese pop culture products other than sushi and manga? The research used in this study makes it clear that a sense of necessity in making the pop culture exchange between Korea and Japan into a two-way flow just does not seem to exist yet. Nevertheless, going back to the discussion of Ryu and Lee reveals that despite the correlation in Korean and Japanese economic development, Korea-Japan relations in economics has remained a parallel one since the end of the occupa- tion, meaning that actual instances of economic transaction between the two Asian countries does not exceed a very small number. Historical antagonism also applies here – the pressure against forming an extensive economic relationship with Japan from the older population remains far too large for the Korean government to push forward any more open policy towards Japan. Given the rise of Korea as a stronghold within the Internet technology world, some may even consider Korean economy as a self-sustaining one, rendering the need to further interact with Japan as an unnecessary one. However, Befu ’s discussion of concept trade proves that “Japaneseness” works in Korea – given just how many Korean entertainment programs borrow their ideas from Japan – thus providing the incentive for Japan to further its cultural influence in Korea and thereby raise the possibility of forming the foundation for economic transactions. As for the Korean public, it should take the effects of “Winter Sonata” in Japan as a call towards having a more open approach in allowing Japanese popular culture to enter Japan. Hanaki’s study shows that “Winter Sonata” not only created a twelve million dollar market in Japan through Bae Yong-Joon, but it also created a more positive perception towards Korea, creating an opportunity for Hanryu to continue and for more Korean pop cultural products to enter Japan, which is an increase in economic interactions between Korea and Japan. Similarly, once J-pop and J-drama fully enter the Korean market on the same level as how K-pop and K-drama had entered Japan, Korean perception towards Japan will soften, reinforcing the appeal of Japanese culture and Wharton Asia Journal | Spring 2010 This study then looked at the immediate comments left on the youtube clip of Sung-Hoon Chu talking about his controversial MMA match against another Japanese fighter, Misaki. The subscribers, almost all of them leaving comments in Korean, viewed Sung-Hoon Chu strictly as a Korean person, and their attitudes towards Misaki, who violated the rules by attacking Chu while he was down, were very anti-Japanese and harsh. Similarly, the first youtube clip that came up upon typing the word “Japan” into the search box dealt with Japanese war crimes against the Koreans, and once again the comments left were negative, many of them even violent. The qualitative analysis of the comments that netizens leave on blogs and websites would need to expanded to include major Korean websites such as Daum and media company forums to provide a more accurate picture of the behaviors of netizens, but from the videos that this study went through it can be concluded that netizens, under the veil of anonymity, take nationalism and the institutionalization of anti-Japanese sentiments to the extreme and leave aggressive words on the web. Indeed, anonymity lets an Internet user escape with many unethical, aggressive behavior because it is difficult to track down the owner of the message. the candle light demonstration – a public demonstration against the Korean president Lee Myung Bak’s decision to import American beef over 30 months that raised concerns regarding the mad cow disease – on her radio, the netizens reacted violently, constantly called radio station, and even sent numerous death threats, eventually forcing the comedian to leave the entertainment. Given the aggressive nature of these netizens, the internet serves as a catalyst in both amplifying and reinforcing the institutionalization of anti-Japanese sentiments, acting as the most threatening force in preventing the Japanese pop-culture from even entering via the Internet. 11 thereby allowing the Japanese Wave to take place. Then, the positive perception of Japan will allow for decreased pressure on the government to restrict Korea-Japan economic transactions and in turn increase both economic and cultural flow between Korea and Japan, resulting further globalization of both Asian countries. Thus, in a sense, deconstructing the three obstacles and letting J-pop and J-drama thrive in Korea serve as a foundation for having a friendlier relationship between the two countries and thereby as a basis for globalization of both. Wharton Asia Journal | Spring 2010 Concluding Thoughts and the Knee-Slap Guru’s Solution 12 This study provides another element in analyzing the cultural flow between Korea and Japan. As mentioned before, the problem that the MMA fighter Sung-Hoon Chu brought to the KneeSlap Guru was that he wished to build a bridge between Korea and Japan, and the corresponding solution the KneeSlap Guru gave to Chu consisted of working towards doing away with the past and the history and building a more positive attitude towards one another. Rather than giving a spin to this episode only to serve the nationalistic interest of the Korean population and the government, Korea should expand the Knee-Slap Guru’s prescription to an industry-wide initiative in the media to reduce the historical antagonism and institutionalization of such sentiments both online and offline to serve the global interest of Korea and Japan together. Works Cited: “100 episodes of “Golden Fishery” seen through the ratings.” Stoo.com. OSEN, 16 July 2008. Web. 18 Dec. 2009. <http://stoo.asiae.co.kr/news/stview. htm?idxno=2008071611315293601>. Befu, Harumi. “Globalization Theory from the Bottom Up: Japan’s Contribution.” Japanese Studies 23.1 (2003): 3-22. Print. Bestor, Theodore C. “How Sushi Went Global.” Foreign Policy 121 (2000): 54-63. Print. “Boa, DBSK, Big Bang “Conquers” Oricon Chart Top 10.” Chosun.com. Chosun Ilbo, 4 Nov. 2009. Web. 7 Dec. 2009. <http://news.chosun.com/site/data/html_ dir/2009/11/04/2009110401000.html>. Branscomb, Annel W. “Anoynimity, Autonomy, and Accountability: Challanges to the First Amendment in Cyberspaces.” The Yale Law Journal 104.7 (1995): 1639-679. Print. Cha, Victor. “Hate, Power, and Identity in Japan-Korea Security: Towards a Synthetic Material-Ideational Analytical Framework.” Australian Journal of International Affairs 54.3 (2000): 309-23. Print. Chong, Yun-Mu. “Basic Survey on Political Functions of Television in Korea.” Korea Journal 15.1 (1975): 11-30. Print. Hanaki, Toru, Arvind Singhal, Min Hwa Han, Do Kyun Kim, and Ketan Chitnis. “Hanryu Sweeps East Asia: How Winter Sonata is Gripping Japan.” The International Communication Gazette 69.3 (2007): 281-94. Http://gaz.sagepub.com/cgi/content/abstract/69/3/281. Sage Publications. Web. 14 Nov. 2009. Howe, Craig. “Cyberspace is No Place for Tribalism.” Wicazo Sa Review 13.2 (1998): 19-28. Print. Kang, Myuong Seok. “A Korean Phenomenon: TV Dramas Take on a Life of Their Own.” Koreana 21.4 (2007): 9-13. Wilson Web. The H.W. Wilson Company. Web. 23 Nov. 2009. Kim, Hun-Shik. “Media, the Public, and Freedom of the Press.” Social Indicators Research 62/63 (2003): 345-64. Print. Kim, Ka-Hee. “Korean Wave Sweeps through Japan: Korea’s TV Dramas Enjoy Unprecedented Popularity.” Koreana 19.2 (2005): 32-35. Wilson Web. The H.W. Wilson Company. Web. 23 Nov. 2009. Kim, Sang Ho. “Kim Jang Hoon ‘Dokdo Advertisement is a Popular Dipomacy; I Wanted to Spread it Quietly.’” Sports Seoul. 10 July 2009. Web. 7 Dec. 2009. <http:// www.sportsseoul.com/news2/entertain/ne ws/2008/0710/200807101010404000000 00_5723589078.html>. Lee, Dong-Hoo. “Transnational Media Consumption and Cultural Identity: Young Korean Women’s Cultural Appropriation of Japanese TV Dramas.” Asia Journal of Women’s Studies 12.2 (2006): 64-89. Print. Lee, Eun-Jueng. “The Potential of Fandom and the Limits of Soft Power: Media Representations on the Popularity of a Korean Melodrama in Japan.” Social Science Japan Journal 10.2 (2007): 197-216. Print. Lee, Soo Hyun. “’Candle Light Movement Criticism Controvery’ Chung Sun-Hee Apologizes in Tears.” Star News. 6 June 2008. Web. 7 Dec. 2009. <http://star.mt.co.kr/ view/stview.php?no=200806061210251217 9&type=1&SVEC>. Matsumura, Yuko. “CGS 1st Workshop: “Cultural Genocide” and the Japanese Occupation of Korea.” Comparative Genocide Studies. 23 Feb. 1004. Web. 18 Dec. 2009. <http://www.cgs.c.u-tokyo.ac.jp/ workshops_e/w_2004_02_23_e.html>. MTV Music & More. MTV. Web. 7 Dec. 2009. <http://www.mtv.co.kr/music/hotmv. php>. Nakano, Yoshiko. “Who Initiates a Global Flow? Japanese Popular Culture in Asia.” Visual Communication (2002): 229-54. Print. Morris-Suzuki, Tessa. “Japan’s ‘Comfort Women’: It’s time for the truth (in the ordinary, everyday sense of the word).” Japan Focus. JapanFocus. 8 Mar. 2007. Web. 18 Dec. 2009. <http://japanfocus.org/-Tessa-MorrisSuzuki/2373>. Product & Event. 7-Eleven. Web. 7 Dec. 2009. <http://www.7-eleven.co.kr/product/ product/new/list.asp>. Rhyu, Sang-Young, and SeungJoo Lee. “Changing Dynamics in Korea-Japan Economic Relations.” Asia Survey 1006.2 (2006): 195-214. Print. Savada, Andrea M., and William Shaw. South Korea: A Country Study. U.S. Library of Congress, 1990. Country Studies. Country Studies U.S. Web. 18 Dec. 2009. <http:// countrystudies.us/>. SBS Inkigayo. SBS TV. Web. 7 Dec. 2009. <http://tv.sbs.co.kr/gayo/>. “Si-Kyung Sung Goes To’The Knee-Slap Shaman’, Gained Attention With His Fearless Opinions.” Hankyung. Ed. Digital News Team. Hangook Kyunjae Shinmoon, 12 June 2008. Web. 6 Dec. 2009. Tooniland. On Media. Web. 7 Dec. 2009. <http://www.tooniland.com/pageLoad. tl?cate_cd=100&isMakeReferer=Y>. Changing Politics of Cultural Hierarchy in South Korean Transnational Corporations in China Jaesok Kim Jaesok Kim is an Assistant Professor of Anthropology at the University of Pennsylvania foreign management usually assume their role as the agents of enlightenment or universal modernization, whose task is to transform the local people into modern industrial workers with high-level discipline. The foreign management believes that they are located higher than the local people in the hierarchical structure of the universal modernization process. The local or, sometimes, “indigenous” people have to be changed, the management believe, because they are deeply embedded with the local culture, which is parochial, pre-modern, or retarded. The culture of the local people, in this sense, contrasts with the management’s culture, which is cosmopolitan, modern, and superior. II. Wharton Asia Journal | Spring 2010 of the transnational corporations, South Korea, created much complicated relationships between the foreign management and the Chinese employees, which cannot be neatly explained by the dichotomy of modern/pre-modern or cosmopolitan/parochial. During the 1980s and until the mid-1990s—the early periods of their businesses in China—the Korean management’s attitudes to their Chinese employees were not much different from those of their western counterparts. Most of Korean managers considered China is still struggling with its Maoist past and lagging far behind their modernized mother country, South Korea. They believed that Chinese employees lacked key elements of labor discipline and were spoiled by the socialist inefficiency and hapForeign management, the alleged hazard egalitarianism. agents of the universal modernizaThe exact disciplinary measures tion, is not always from “the West.” My research about several South Ko- they used for creating “ideal workers,” rean transnational corporations in however, were different from their China reveals how the foreign man- western counterparts. Their emphasis agement with a non-western origin on company training program, collechave created a unique corporate hi- tivism, worker deference to manageerarchy, and added new dimensions ment’s order, and disciplinary methto the relationship between foreign ods targeting both mind and body originated from the multilayered hismanagement and local labor. tory of South Korean management: Studies about transnational corFirst of all, the non-western origin memories of the Japanese colonial porations commonly indicate that Transnational corporations constantly relocate from one place to another to find bigger profits. The actual relocation of transnational corporations, however, is not a purely economic process based on the calculations of profits and losses. It is a process involved with the transfer and encounter of different expectations about precision, punctuality, workplace authority, bodily discipline, proper compensation and “humane” treatment. This made the workplace of a transnational corporation a particular space, where the daily encounters of people with different expectations often cause mutual misrecognitions and misunderstandings. This, as a consequence, creates tensions between foreign management and local employees. For the foreign management, existence of such tensions only justifies the need to transform the “untrained” local people into “ideal workers,” living up to the managerial standards of efficiency and discipline. The ideal workers, however, cannot be created overnight. The history of modern manufacturing clearly shows that the establishment of labor discipline has been one of the key targets of management. Culture & Business I. 13 Korean-Chinese? We can find answers in the Korean management’s two discourses: First, the discourse of Korean cultural superiority; second, the discourse of one Korean nation unified by their shared The company hierarchy of Kore- blood or common ancestry. an transnational corporations more clearly distinguishes them from other First, Korean managers often refer transnational corporations. In the to the allegedly exceptional Korean Korean corporations, Korean man- national characteristics, such as diliagers occupy the top portion of the gence, endurance, and high intellihierarchy, while most Han-Chinese gence as evidence for their cultural suemployees, the absolute majority of periority. They believed that the long the workforce, are located at the bot- survival history of Korean nation— tom. Between the Korean manag- despite the numerous invasions from ers and the Han-Chinese workers, a China—and the rapid development small group of Korean-Chinese, one of Korean economy during the past of the fifty-five ethnic minorities in thirty years demonstrated their culChina, take the role of intermediary tural excellence. managerial staff. This corporate hierarchy is highly unusual because, in Second, Korean managers used the China, Han-Chinese have priorities discourse of one Korean nation to in economic activities, national poli- justify the overrepresented Koreantics, and cultural policies. Chinese among the managerial staff. The managers argued that What created this reversed ethnic Korean-Chinese have superior hierarchy between Han-Chinese and group characteristics same with those of the Korean people, because they share their ancestors or, “blood,” with other Koreans, especially those in South Korea. Korean-Chinese knowl- Wharton Asia Journal | Spring 2010 domination, experiences about the post-colonial factory regime of transnational corporations in Korea, and the highly militarized modernization process during the 70’s and 80’s. 14 The Chinese and Korean flag, melded as one. Image source: http://www.treehugger.com/japan-china-south-korea-flag-01.jpg edge about Korean culture, therefore, is not what one can acquire through casual learning. Rather, the knowledge is quasi-genetically “written in” the blood of Korean nation, transmitted from one generation to another. For this reason, Korean managers believed, it would be virtually impossible for Han-Chinese to have the similarly high level of knowledge about Korean culture. This impossibility, again, justifies the reversed ethnic hierarchy in the Korean transnational corporations. Korean managers used to say that having Korean cultural knowledge is different from acquiring Korean language skill. Han-Chinese, for example, could speak Korean maybe more fluent than Korean-Chinese if they spent plenty of time in learning Korean language. They could never reach, however, the level of cultural knowledge same with that of the Korean-Chinese, because they do not have the right membership of Korean people. III. New market situations after the late 1990s, however, have changed the workplace hierarchy of South Korean transnational corporations. The most important change is the decreasing number of Korean-Chinese among the intermediary managerial positions. There are some easy-to-find “sinicization” bring any fundamental changes to their belief in the concepts? If so, how can we evaluate the changes? Although they do not completely abandon their belief in the concept, Korean managers are now less vocal in expressing their cultural superiority. We can find one of the reasons of such subdued belief in China’s fast economic development. As previously mentioned, the commonest evidence for the Korean cultural superiority is Korea’s fast economic development during the 70’s and 80’s. Korean managers, however, now observe that China’s economic development is fast and, oftentimes, faster than that of South Korea, measured either by its GDP growth rates or by their personal observation of the rapidly changing landscapes in China. If China’s economic development is faster than that of Korea, doesn’t it mean that the “cultural superiority” is not an exclusive characteristic of the Korean people? Furthermore, if China sustains its economic development faster than that of Korea, doesn’t it indicate China’s potential cultural superiority over Korea? To these questions about the possible change in the cultural hierarchy, Korean managers kept uneasy silence or evaded definite answers, showing their collective anxiety about the resurging China. Then, what are the implications of the most visible result of sinicization—the replacement of KoreanChinese with Han-Chinese employees—to the two concepts? First of all, the change in the ethnic composition of the intermediary managerial positions reflects the management’s devaluation, or, using their words, “more objective” evaluation of Korean-Chinese. In the recent evaluation, Korean-Chinese are considered still holding their membership of the Wharton Asia Journal | Spring 2010 a country where they make product for export profits. During that time, the managers regarded their companies’ foreignness — highlighted by the privileged status of Koreans and Korean-Chine se — as a necessary condition for their smooth business operation in China. More recently, however, Korean managers began to think that they should make the foreignness less visible and, instead, further localize their corporations. This change is closely related to the management’s changing view of China, from its blue-collar, industrial image of the world’s factory to its potential image of the world’s largest consumer Hiearchies market. To make their corporations Image source: http://www.onlineinvesting.org.uk/blog/wp-content/uploads/ look more like Chinese is one of their pyramid_scheme_by_khrawlings.jpg new strategies to keep their access to reasons for the change. First, the ever- the future consumer market in China intensifying global competition has open. pressured management to cut labor What is the meaning of localization costs. In the Korean transnational corporations, Korean-Chinese em- in the daily operations of transnational ployees usually receive higher wages corporations? Originally used in management and more benefits than Han-Chinese, studies, the term often means for thanks to their privileged status as the Korean people. A corporation, there- management to increase the number fore, could reduce its labor costs by of local people among their employreplacing expensive Korean-Chinese ees and incorporate some local busilabor with cheaper labor of Han-Chi- ness practices into the existing ones. nese. Second, Korean management’s Interestingly, the management of the growing confidence in their “local South Korean transnational corporaknowledge” of China decreased their tions prefers a different term, “sinidependency on the Korean-Chinese cization,” to localization, which has as cultural and linguistic mediator more nuanced meanings. For the With their business experience in Korean management, the new term China now well over ten years, grow- means the gradual replacement of ing number of Korean managers feel Korean-Chinese with Han-Chinese more confident in their ability doing at the intermediary managerial posibusiness in China, without the same tions. This does not imply any changKorean-Chinese assistance as they es at the top of the corporate hierarchy, where South Koreans are still the needed during the 1990s. absolute majority. The recent managerial campaign How can we relate the Korean manwith its slogan of “localization” only agement’s sinicization effort to the two speeds up the change. During the early periods of their Chinese operation, concepts—Korean cultural superiority Korean managers regarded China as and the unified Korean people? Does the 15 “because their Korean appearance ations and regional power structure. unified Korean people. This member- conceals their Chinese-ness.” ship, however, is only partial and thus It is a common understanding that As the Korean management quesdoes not guarantee them the desirable cultural characteristics of the Korean tioned their full membership of the national or ethnic identities are not people. Korean-Chinese are Koreans, unified Korean people, Korean-Chi- simply given and unchanging; they but deteriorated, either due to the nese are now in their head-to-head are constantly made and unmade reharmful influence of the socialist or competition with Han-Chinese for sponding to the changing political communist regime, or, surprisingly, intermediary managerial positions. demands and power relations of the due to their historical minority status Korean management’s new agenda of people engaged in a given politicalsinicization made their competition economic arena. My case study invesin China. harder, because many Korean manag- tigated some extreme cases about the How do the Korean managers ex- ers now prefer Han-Chinese to Kore- political use of ethnicity and nationplain the dramatic demotion of Kore- an-Chinese. Again, the reason of the ality, which has been initiated by the an-Chinese, from the right members new preference is very simple: to hire cross-border movement of transnaof the unified Korean people to the more Han-Chinese makes Korean tional corporations. With the study, group with an imperfect member- transnational corporations more look I argue that the actual manipulating ship, tarnished by their socialist past like Chinese. For the same reason, it process of ethnicity and nationality and minority status? The manag- does not make much sense to give could be highly complicated when it ers said that their early belief in the privileges to Korean-Chinese, because is embedded with the multi-layered Korean-Chinese cultural superiority the management now regarded them, and dynamic local history of South had originated from their collective at best, as a “more or less smart” eth- Korea and China. misrecognition of Korean-Chinese nic minority in China. “We should identity. This misrecognition, once hire more Han-Chinese,” a Korean widely shared among South Koreans, manager insisted, “because they are Works Cited was caused largely by their excitement China’s mainstream.” Bartlett, Christopher A. and Sumantra about the historic reunion with KoGhoshal. “Managing Across Borders: The rean-Chinese, long anticipated since Transnational Solution.” 1991. Boston: Hartheir loss of contact with Korean-Chivard Business School Press. My study about Korean transnanese, brought by the Cold War confrontation between South Korea and tional corporations revealed how the Thompson, Edward P. “The Making of the China. The mass-media version of cross-border movements of corpora- English Working Class.” 1966. New York: Korean-Chinese history further rein- tions with a non-western origin creat- Vintage Books. forced the collective misrecognition, ed a particular workplace situation in which depicts Korean-Chinese as the China. I analyzed how the concepts Moon, Seungsook. “The Historical Roots descendants of the anti-Japanese Ko- such as Korean cultural superiority and the Rise of Militarized Modernity” 2005. rean combatants during the Japanese and unified Korean people reversed colonial period. The following twen- the dominant ethnic power relation- Moon, Seungsook. “Mobilized to Be Martial.” 2005. ty-year period after their historic re- ship between Han-Chinese and Kounion with Korean-Chinese was only rean-Chinese. My historical-ethno- Barth, Fredrick. 1969. “Introduction,” in a gradual process for South Koreans graphic research further investigated Fredrick Barth (ed.). “Ethnic Groups and to get disillusioned with Korean-Chi- the changing cultural politics and Boundaries: The Social Organization of Culnese. “Korean-Chinese?” a Korean strategies of Korean management, ture Difference.” Boston: Little, Brown and manager argued, “They are Chinese especially how they came to discred- Company. p.9-38. who can speak Korean language.” it the discourse of Korean-Chinese Another Korean manager advised me cultural superiority in their effort to not to be fooled by Korean-Chinese, respond to the changing market situ- Wharton Asia Journal | Spring 2010 IV. 16 China Uses Currency Swaps to Avoid the Problematic Dollar Rachel Bleustein Rachel Bleustein is a freshman at the Wharton School of the University of Pennsylvania Business interest payments. With a currency swap, companies can buy yuan from a bank with their own currency, and then use the yuan to buy from China, and vice versa. China has arranged currency swaps with six countries, totaling 650 billion yuan, or around 95 billion USD, since December 2008. China also agreed to a trade settlement, which does not involve re-exchanging currency at a later point in time, with Brazil and Hong Kong. ($10.2 billion) (38 billion ARS ) on April 2, 2009 Thailand is looking into a possible currency swap agreement with China, as well. All the arrangements are for a period of three years and may be extended by an agreement of both sides. Currently, most payments for China’s exports and imports, as well as investments in China from abroad, are made in USD. With the currenThe six countries China has ar- cy swaps, China and the respective ranged currency swaps with are: countries theoretically do not need to Republic of Korea: 180 billion use the dollar during trade. For examyuan ($26.3 billion) (38 trillion ple, a company in China could save money by paying for a purchase in won) on December 12, 2008 yuan from one of the swap agreement Hong Kong: 200 billion yuan countries without having to pay a ($29 billion) (227 billion HKD) A currency swap is when two on January 20, 2009 countries agree to exchange specified Malaysia: 80 billion yuan amounts of their own currencies over ($11.12 billion ) (40 billion RM) a given period, usually at a fixed ex- on February 8, 2009 change rate. Currency swap arrange- Belarus: 20 billion yuan ($2.9 ments are flexible and can be extended billion) (8000 billion BYR) on past the original end date, but at the March 11, 2009 end of the agreement, the currency must be returned to its original own- Indonesia: 100 billion yuan The Chinese Yuan in comparison to the US Dollar. er at the exchange rate determined at ($14.7 billion) (175 trillion IDR) Image source: http://www.chinathe beginning of the arrangement. A on March 23, 2009 daily.com.cn/bizchina/2007-03/01/ currency swap also usually involves Argentina: 70 billion yuan xin_08030401161616013781142.jpg Wharton Asia Journal | Spring 2010 China, with most of its 2 trillion USD in foreign exchange reserves invested in US dollar denominated assets, is concerned that the dollar will depreciate due to the US dollar’s current volatility and the US’s substantial borrowing. Because China cannot begin divesting itself of its dollar reserves without decreasing the value of its holdings, China has arranged six currency swaps and two trade settlements as part of an attempt to diversify its assets . China hopes to strengthen the currently non-convertible yuan and increase its global influence with these arrangements so that the yuan may become an important reserve currency by 2020, and possibly even displace the dollar as the main reserve currency. 17 Wharton Asia Journal | Spring 2010 transaction fee to have a bank exchange yuan into dollars. The countries with which China has made currency swaps are hoping to gain different things from the agreements. 18 South Korea and Indonesia could benefit from the currency swap by being able to bypass the dollar in trade because they have been having a shortage of dollars. South Korea also hopes the new access to funds will prevent a repeat of the 1997 currency crisis that required a 57 billion USD bailout from the IMF. Argentine officials hope the currency swap will signal that people should have confidence in the peso and in the government’s ability to manage the peso’s value. An Argentine bank official said, “Even if none of this money is ever used, its mere existence should serve to boost confidence in the currency.” In Malaysia, the swap was arranged for the purpose of increasing two-way trade and investment. Regardless of whether Malaysians choose to take advantage of the swap, Zeti Akhtar Aziz, the Malaysian central bank governor, said that it would provide extra flexibility for companies under pressure. Belarus’ purpose for the currency swap is to promote trade and investment, and to pay China for costs related to projects like new power plants. The apparent advantage to Hong Kong of a currency swap is to provide short-term liquidity support and to help Hong Kong maintain economic growth and financial stability. However, the main purpose of the swap appears to be the use of Hong Kong as a bridge to promote the yuan for future wider use in international markets. China’s exports have suffered due to the global financial crisis, and one of the reasons it has arranged currency swaps is to promote exports, as the countries China has made agreements with can only use the non-convertible yuan with China. The hope is that a country will be more likely to trade with China because it does not have to change its currency into dollars, thus avoiding the volatility of exchange rates and likely saving money in bank transaction fees. Other reasons for the currency swaps, besides helping exports, are the internationalization of the yuan and the reduction of reliance on the dollar. The following are recent issues regarding the dollar that China has raised: The Chinese central bank report released on June 26 said, “An international monetary system dominated by a single sovereign currency [the dollar] has intensified the concentration of risk and the spread of the crisis." China worries that the massive borrowing the U.S. government is doing to support stimulus spending may lead to inflation, which would harm the value of China’s foreign exchange holdings, most of which are in dollars. PBC deputy governor Hu Xiaolian said that the IMF should strengthen its surveillance of the economic and financial policies for the countries that issue the main reserve currencies. As a solution, China has called for a new, super-sovereign reserve currency that would somehow remain stable regardless of world economic issues. Zhou Xiaochuan, the governor of the People’s Bank of China, proposed in a speech on March 23, 2009 that the IMF’s Special Drawing Rights, or SDR, could be used as a super-sovereign reserve currency. SDR is not an actual currency but a unit of account based on the U.S. dollar, euro, Japanese yen, and pound sterling. The exchange rate is the sum of a certain amount of each of the currencies and is valued in U.S. dollars. A country is allotted a certain number of SDRs according to how much it contributes to the IMF. If a country needs to borrow money from the IMF, it uses some of its SDRs and The Yuan as a New Reserve Currency? While China hopes to make the yuan convertible by 2020, in line with the goal of making Shanghai an international financial center by that point, China may encounter some difficulties. If the yuan were fully convertible, it would be almost impossible for China to control the value of the yuan. Most economists agree that the yuan is undervalued, so if floated, the yuan would likely have a sharp rise in value, disastrously affecting thousands of China’s export factories. China and the IMF Meanwhile, China is pushing for more power at the IMF. China has fewer votes in proportion to the size of its economy compared to other countries. However, a country’s number of votes at the IMF tends to correlate with the amount of money directly contributed, not the size of a country’s economy. Instead of a direct contribution, China has said it wants to buy 50 billion USD in SDR denominated bonds, issued by the IMF on July 1, 2009. China is hoping that buying bonds from the IMF will help increase its say in the governance at the IMF. It is also another way for China to diversify its currency reserves in the wake of the dollar’s current problems. Wharton Asia Journal | Spring 2010 The call for a new reserve currency occurred right before the meeting of the G20 in April and appeared to be a means to bring attention to the problems of the dollar as a reserve currency, as opposed to a sincere proposal for a new global currency based on SDRs. US analysts and others have said that a global currency would not be practical and may be impossible to actually implement, and China’s vice foreign minister, He Yafei, said the SDR proposal was merely an academic exercise. Even as China formalized its call for a new reserve currency on June 29, by bringing the issue up at the G8 meeting in Italy, Chinese officials were saying that they would not be making sudden changes to China’s foreign reserve policy, and that the dollar is likely to remain dominant for a while yet. Instead of a new global reserve currency, it appears that China is hoping the yuan will eventually become the next major reserve currency and has been taking steps to achieve that goal. Besides the currency swaps, China opened a pilot program on July 6, 2009 that allows companies in Shanghai, the province of Guangdong, Macau, and Hong Kong to settle trades in yuan. Certain banks in Hong Kong can now issue bonds denominated in yuan as well. However, China has a long way to go before the yuan becomes a global currency because it is not yet convertible. If companies choose to trade in yuan, including those in countries with cur- rency swap agreements, they will still have to face the fact that most commodities are priced in dollars since the rest of the world continues to use the dollar. Those who trade using yuan in Hong Kong have very limited opportunities for investment. The trade settlement agreement with Brazil seems unlikely to be utilized. Most goods and commodities in the global marketplace are priced in dollars, and if companies in Brazil accept a payment in yuan, there is little they can do with it since it is not convertible. Chinese exporters are also unlikely to accept the very unstable Brazilian real. Image source: http://www.disco-tech.org/DSC00045d.JPG receives its own currency at the current rate. Zhou Xiaochuan said in his speech that “The basket of currencies forming the basis for SDR valuation should be expanded to include currencies of all major economies.” China has the world’s third largest economy and wants the yuan to be part of the SDR calculation. 19 Tokyo Trip Toff Chutima and Eli Tung Toff Chutima and Eli Tung are both freshmen at the Wharton School of the University of Pennsylvania Wharton Asia Journal | Spring 2010 Culture Every spring break, the Wharton Asia Exchange organizes a trip to a city in Asia. The purpose of the trip is to give participants an opportunity to learn about the business environment in the destination city and to experience the local culture. This past spring break, which took place from March 6th to March 14th, 30 of us travelled to Tokyo, Japan. We chose Japan because it is famous for both its economy and its culture. 20 Our first company visit was to Seibu Holdings Inc. Seibu is a domestic conglomerate specializing in railways, shopping malls and hotel developments. Because Seibu’s operations involve a lot of land developments around residential areas, its main value is to maintain a positive relationship with local communities – something we found very fascinating. After our visit to Seibu we travelled to Shinjuku for some afternoon shopping. Here we split into groups to tour the streets of Shinjuku, visiting shops like Mitsukoshi and Uniqlo. The next day we visited Morgan Stanley Japan, where we learned about the two factors that has contributed to its success. Firstly, the company has established a partnership with MUFG, Japan’s largest bank. This partnership gives Morgan Stanley a solid and stable source of funding. Secondly, Morgan Stanley focuses heavily on its employees. It was ranked the best workplace in Japan in 2009. We also had the chance to meet the CEO, Mr. Jon Kindred, a Wharton alumnus over lunch. A great highlight to this trip was a visit to Hitotsubashi University – the only Wharton affiliated university in Japan. We had a chance to tour the campus and meet Professor Hiroshi Ota, who gave a valuable presentation about studying at Hitotsubashi as an exchange student. On Wednesday, we visited ABeam Consulting, a leading firm in Japan for implementing SAPs, a software solution for businesses. ABeam, being a true consultant, gave each of us a personalized gift by deducing our likes from our resumes. After our visit to Abeam, we crossed the Kachidoki Bridge to Ginza, known for its delicate souvenirs and expensive restaurants. Here it was free time for everyone to enjoy lunch and some more souvenirs shopping before we headed off to Nomura. At Nomura, we learned a little bit about its recent growth in the global market. We also had a glance at Nomura’s busy trading room, a sight to remember. On Thursday, we visited the Sumitomo Mitsui Banking Corporation (SMBC). The presenter, Mr. Hiroshi Irie gave us an insight into the current condition of the Japanese economy. Although growth has reached a standstill in Japan, it is still a large economy with a lot of opportunities especially in industries such as life insurance, which focus on the elderly population. After the presentation, we also had a chance to look at SMBC’s trading room, which was very different from the one at Nomura because Nomura is an investment bank and SMBC is a retail bank. Hence the focus is different. From Sumitomo, we travelled to Harajuku for the afternoon. At Harajuku we got a glimpse of traditional Japanese culture by walking around the Meiji shrine, where many wrote down their new-year wishes. We also experienced the youth culture and the Japanese fashion scene by walking along Takeshita Dori. Some of us also travelled to Shibuya nearby and continued our shopping spree there. On Friday we travelled to the famous Asakusa temple. For lunch, we went to Akihabara, the electric district of Tokyo. Here, some of us ventured into a maid café for the first time. Wharton Asia Journal | Spring 2010 Then we headed off to our final company in Tokyo, the much anticipated Sony headquarters. There, we were given a one-hour tour of Sony’s VIP Showroom. We saw the high-definition camera used by George Lucas in the filming of “Attacks of the Clones” and a variety of Sony’s latest products. One of the main highlights was the demonstration of TransferJet technology. This technology allows devices such as a camera or a digital photo display to exchange data by touching them or putting together. Overall, our corporate visits and cultural endeavors had given us new, interesting and informative insights to the business and culture in Japan, making the trip a highly successful one. 21 22 Shanghai World Exposition 2010 Better City, Better Life: Wharton Asia Journal | Spring 2010 Event “Better City, Better Life.” “Better City, Better Life.” That is the theme for the 2010 World Exposition. It represents the mutual wish of all nations for better living in urban environments. Held in Shanghai, China, the 2010 World Expo will take place this year from May 1 to October 31. The main focus of this year’s exposition is urban civilization and development. During the 184 days, 200 participants will display the full potential of urban life and urban evolution, while an expected 70 million visitors from China and abroad will exchange cultural experiences of urban development and explore new approaches to lifestyle and working conditions in the new century. World expositions are displays of inspiration and thought and have been held as early as 1851. They are large public exhibitions held in different parts of the world. It was first held in London and has attained increasing significance over the years. It serves as a platform for displaying and exchanging innovative ideas and cultural experiences. In addition, it has influenced the advancements of various aspects of society such as international relations and art and design. There are two types of world expositions: registered expositions and recognized expositions. Registered exhibitions call for many large events and generally last from six weeks to six months. Recognized exhibitions, on the other hand, are much shorter in duration. Currently, registered world expositions are usually held every five years, and this year, the Shanghai World Expo will be the first registered World Exposition in a developing country, which signifies the importance of China’s development. The main attractions at world expositions are pavilions built by participating countries. Each pavilion must reflect the theme the world exposition. Furthermore, these pavilions are the most expensive and remarkable parts of the Expo; they require great investments and are built from the ground up. Many countries are skeptical about the benefits of participating in world expositions because of the large investments they must contribute. However, some studies have estimated that pavilions may generate vast potential revenues for the economy. Most of the pavilions can be disassembled after the exposition; however, some pavilions can be moved overseas intact or have remained in xposipating reflect Furmost of the ments Many enefits ns bemust s have nerate conodisaswever, place, such as the Eiffel Tower. In addition, some world exposition sites have been converted into recreational parks that can display the exposition structures. This year, the China Pavilion is designed with “Oriental Crown” in mind. The pavilion appears to be a wooden structure in the color of red, a red that can be seen in the structures at the Forbidden City. This color represents the spirit of the Chinese culture. Some of the other pavilions include international pavilions such as Venezuela Pavilion, Nepal Pavilion, Turkey Pavilion; domestic pavilions such as Hong Kong Pavilion and Macau Pavilion; and corporate pavilions such as Cisco Pavilion and Aurora Pavilion. Organizers say that the US pavilion will be ready by the opening world exposition date. The Shanghai Exposition is held at a site that covers an area of 5.28 square kilometers to accompany the types of events that take place during the exposition. The master plan shows that the Expo will be held in five-level structure of park and enclosed space and clusters. There are events held during the preparation for the Expo and during the Expo. The former starts on April 30th and these events are prepared and hosted by the host country. Events that take place during the duration of the Expo can be organized by the host, participants, or by other parties such as corporations and media groups. Wharton Asia Journal | Spring 2010 The 2010 Shanghai World Exposition promotes the happy reunion of people from all over the world, even for those who cannot make it there personally. Those who are interested in the Exposition can sign up to tour and experience it on Expo Shanghai Online . There, visitors can interact with organizer and participants to fully experience and explore the Exposition. This happy reunion is the reason why the emblem of this year’s Expo is an image of three people: you, me, him/her holding hands. In fact, the image of these three people forms the Chinese character for “world.” It symbolizes the family of mankind getting together, looking into the future. Model of the Chinese Pavilion, to be shown at the Shanghai Expo. Image source: http://www.e-architect.co.uk/shanghai/jpgs/shanghai_wan_sna161008_1.jpg ns call ly last Recoghand, rently, sually ar, the e first devele im- By Sussy Shi Sussy Shi is a sophomore at the University of Pennsylvania studying communications. 23 People Photographer: Rachel Bleustein Richard Block Richard Block, VP of Marketing for Haier America in the Huntsman Forum Teaches “The Haier Way” Wharton Asia Journal | Spring 2010 Tina Sun Tina Sun is a freshman at the Wharton School of the University of Pennsylvania 24 Richard Block states that he had “accidentally” stumbled into the position of VP of Marketing for Haier America, a branch of the Haier Group. The Haier Group was founded in China in 1984 and since then, it has grown to own over 240 subsidiary companies, run over 110 design centers, and employ more than 500,000 employees around the world. Haier produces everything from refrigerators to TVs to dorm organizational cubes to washing machines – you probably own one of their products. Mr. Block was here at Penn on October 31, 2009, the first day of his vacation week from work, as the keynote speaker at the Wharton Asia Exchange (WAX) Spotlight Asia event. He spoke with humor as he described the background story of Haier America and Haier China and then spoke of how Haier America became so successful and how he plans to lead the company to more national recognition in the future. Haier is established in the world market as an affordable brand with many different products for the average family. The company has dealt effectively with the recent economic conditions here and in China because it focuses on marketing affordable products at stores such as Wal-Mart, Sam’s Club, and Costco. In the near future, Haier America sees a potential challenge in the rise of other Asia-based brands in America such as Samsung. Mr. Block is clearly a very successful figure in his industry, and he looks for specific traits in potential employees. When asked what he looks for in employees, he immediately stated that the candidate must always be on time. The candidate must also dress appropriately and be a self-starter and always take initiative with projects. That said, he wishes to leave students with a sound piece of advice for the future: “leave your department or company in a better place than you found it.” Wharton Asia Journal | Spring 2010 In terms of the challenges of effectively marketing a global brand, Block spoke of the importance of having effective leadership in every country. There are differences in products as well as marketing in different countries. For example, in China, when there is a problem with a Haier refrigerator, a team of literally eight to ten Haier China employees goes to the home to fix the refrigerator until it is in perfect working condition. In America, this is just not feasible. American consumers want products that work instantly and smoothly without problems. Marketing techniques also differ greatly. In China, Haier products exist under the “Haier” brand so the brand name is well known. In America, Mr. Block’s job becomes especially difficult because Haier products exist under other brands such as Black & Decker so the brand does not have great name recognition. On a more personal note, in an interview following the keynote presentation, Mr. Block spoke of his love for the work he does. He advises students to choose a concentration or job suitable for themselves because “you should be happy doing what you do,” and you shouldn’t resent your work. Ironically, however, being VP of marketing for a global appliance company was not what he had originally wanted to do. He describes his ideal job as getting involved with sports marketing. He has implemented this passion for sports marketing in his current job by partnering Haier America with the NBA. 25 BEIJING’s Top 10 for Stingy Students Wharton Asia Journal | Spring 2010 Travel Jenny Fan 26 Jenny Fan is a sophomore at the Wharton School of the University of Pennsylvania Whether you are studying abroad or working over the summer in China’s capital, navigating around Beijing can be intimidating. Visiting Beijing with an organized Chinese learning group, such as Penn Abroad in Beijing, Princeton in Beijing, or Columbia in Beijing offers a more structured program with the camaraderie of fellow students, but many of the best opportunities are organized independently. I was fortunate enough to be able to stay at Beijing Normal University (BNU) for a month last summer while working on an independent research project, offering me direct access to one of the city’s arterial public transportation lines (Subway Line 2). Aside from visiting the Tour Guide’s Musts, such as the Great Wall, Summer Palace, and Forbidden City, here are my picks for great places to see and things to do in Beijing when you’re with a small group of people and want a true taste of the city. If you want a wholesome, comprehensive, bank-breaking trip through Beijing, feel free to consult another travel guide. This is for the little things that sometimes get overlooked. Beijing at night. Image source: http://cache.virtualtourist.com/852556-Night_Beijing-Beijing.jpg 1 Feast your eyes onWangfujing’s Gourmet Street 2 Polyglots and Violent Thoughts while Bargaining at the Silk Market After the food feast at Gourmet Street, if you can still summon up the energy to shop, it’s worth taking a trip to the Silk Market on the eastern side of the Subway Line 2. Living at BNU, which is in the northwest corner of the Subway Line 2, allows easy access to many of the city’s popular modern destinations, which can all be accessed either on Subway Line 2 (the smallest loop around the city), Subway Line 1 (a straight line which runs through Tiananmen Square and Wangfujing, among other popular destinations), and Subway Line 10 (a Wharton Asia Journal | Spring 2010 If you’ve got any amount of foodie in your veins, you’ve probably seen a Food Channel feature on Beijing’s DongHuaMen Night Market and some of the spectacularly creepy food items, like starfish, crickets, and the tentacles of various cephalopods. If you like eating that kind of stuff, more power to you, but I’m here to tell you about the street next to it. Before you make the turn down to the bustling night market, take the Subway Line 1 to Wangfujing and check out what modernization has done to the face of China. The lux- ury shopping in this area is highly upscale, with department stores and department store prices often going from 500 to 3000 RMB for designer clothing. Wangfujing also has one of Beijing’s best foreign language bookstores, which might actually have some of your Penn textbooks for a marginally smaller cost than the Penn Bookstore. (Hauling them back to America, however, is your call). Outside of the buildings in the market area, there will often be street merchants peddling their wares of varying levels of legitimacy. Wangfujing is one of the most obvious symbols of China’s dualistic modernization. The familiar curved cinnabar rooftops will sit atop sparkling new stores, featuring the best of eastern and western goods. Inside the Gourmet Street, however, is where the influence of two hemispheres really collides. The indoor “gourmet street” features delicious eastern and western delicacies, including various types of bubble tea drinks, green tea cakes, frozen yogurt, gelato, southern-style dim sum (called dianxin, in Mandarin), and various local Beijing treats. Only here will you see Ajisen, a famous Japanese noodle chain in China, sit adjacent to a store that sells Shanghai-style steamed soup buns, which is adjacent to a classier version of KFC. Sitting down at a restaurant and going all out is almost a shame, because the colorful variety of sweet and savory treats is enough to make even the wariest of travelers want to pull an Augustus Gloop in Willy Wonka’s chocolate factory. Before you end up binging and have to be rolled out of Wang Fu Jing, I recommend walking through the area and trying a little at each place. It’s cost effective, and gives you the best taste of what modern Beijing has to offer. 27 African Muslim woman’s offense when a young girl attempted to sell her booty shorts. As you walk from stall to stall, capitalism reeks in every “I Love Beijing” tourist t-shirt. Adam Smith would be proud. 3 Shopping at Subway Stations (like Market East without the ghetto) If you haven’t been to The Gallery at Philly’s Market East station, you’re either lying or have never taken SEPTA in your life. But for Penn kids, whether you take the Gallery seriously is another matter. Shopping at a subway station malls in Philly may not even be an option, but Beijing’s subway stations are a different matter. In Beijing, commercial activity follows the people, so business is automatically attracted to transportation hubs. Though it’s easy to spend hours sucked into exploring what the many street merchants have to offer near major subway stations, the established stores in the area are also a lower-priced alternative to high end department stores. The clothing styles you find here are completely hit or miss: foreign shoppers may find great deals, but many of the styles may be impossible to wear in America. Either way, when these destinations are at every subway station instead of an hour away from home like King of Prussia, it’s still worth a visit. Nearly every station on the Subway 2 line is in close proximity to a shopping area, so give yourself ample time to browse if you’re going somewhere on a schedule. Wharton Asia Journal | Spring 2010 newer line on the north side of the 2nd loop). In terms of shopping destinations, the Silk Market is a little farther than other closer, cheaper alternatives, but as a tourist experience, it is a must. Any single merchant here would probably break the curve of an OPIM 291 Negotiations class, as their bargaining skills are unparalleled. Silk Market is a popular destination for foreign tourists, and as a result, the storeowners here have mastered basic bargaining phrases in at least seven or eight languages. In the process of attempting to buy a (probably fake) Adidas jacket, I heard one store owner run through Spanish, Italian, Russian, French, German, before even considering using English. Don’t expect real goods here, but for fake goods, their quality is substantially higher than anything you’ll find on the streets. Cultural clashes here are common: I saw firsthand a North 28 Concept of Beijing skyline. Image source: http://springcreekacq.com/yahoo_site_admin/assets/images/Beijing_Skyline_Future.78232615_std.jpg Chinese feast. Image source: http://manifestic.com/images/chinese_food.jpg McDonald’s in China. Image source: http://blog.foreignpolicy. com/files/images/mcdonald_beijing_0.jpg Deep-fried starfish. Image source: http://i225.photobucket. com/albums/dd90/vincesoberano/ Art%20of%20Eating%20Out%20 Part%201/daac.jpg Fish burger sold at KFC in China. Image source: http://images.dahongbao. com/add/70/125570_middle.jpg 4 Beijing Foods You Can’t Miss Out On 5 When the Western Food Craving Kicks In It’s hard to miss Crown Fried Chicken when you’re in Beijing, but there were times when I just craved a good ol’ Philly cheese steak. On the BNU campus, Hollywood was a popular fast food restaurant frequented by many foreign exchange students. As a fusion East-West fast food chain, it served everything from rice combo platters to tuna salads to cheese steaks (score!). In China as a whole, global fast food chains have taken a unique approach to presentation. Rather than being the scum of low-end American cuisine, Chinese branches of McDonalds, Pizza Hut, and KFC are not only high-end, but their prices are also several times more expensive than local options. Of the three listed, McDonalds is closest to preserving the plastic ambiance of its American counterparts, and serves a mostly similar menu with a few localized options. Pizza Hut, which suffered when it first opened in China, has since then entirely revamped its menu, offering classy Western pasta dishes, rice combo platters, and smoothie drinks. It’s entirely possible to eat at Pizza Hut for a week without ever ordering pizza, but the prices do add up. Wharton Asia Journal | Spring 2010 So, I will admit that I wasn’t adventurous enough to try the starfish at DongHuaMen. (Nor do I have a stomach lined in steel. Not a fan of the echinoderms.) But, many of the local foods that make Beijing’s cuisine famous are worth trying. At the top of my list is Peking duck, which can sometimes go to outrageous prices at the city’s famous restaurants, such as Quanjude. Barbeque pork, beef, and lamp kebobs are also quite popular, along with a type of Chinese yogurt that comes in a little ceramic pot. Northern Chinese food is famous for its grain-based food while southern Chinese is famous for rice-based food, so the noodles and baked goods you’ll see in Beijing are radically dif- ferent from Southern hotspots such as Shanghai and Hong Kong. Beef noodle soup is common here, but Beijing is better known for its zhajiangmian, a thicker noodle with black bean sauce. Because of the city’s historical significance, many restaurants will boast about their several hundred years of service. For those restaurants, make a reservation in order to secure one of the highly coveted spots. Chestnut double chicken ptty burger, offered at KFC in China. Image source: http://daban5.com/uploads/allimg/090729/2005192515-0.jpg 29 6 guancun’s significance mostly lies on the companies that operate here, and The Giant Gundam less so on what it can offer to visitors. at Zhongguancun There are, however, several parks scattered throughout the Zhongguancun Technology Zone. Wharton Asia Journal | Spring 2010 I didn’t go to Zhongguancun, the self-dubbed “silicon valley” high-tech central of Beijing, just for the Gundam, but it was pretty cool. For anyone looking to buy computers, mp3 players, cameras, or other electronic goods and would like for them to actually work after purchase, this area is probably your safest bet. All of the stores around here are catered toward tech savvy customers, and due to its proximity to Beijing’s prestigious Peking and Tsinghua Universities, the government is hopeful for its technological and economic development in coming years. Though it is an important hub for the city and may appear on many other tourist guides, Zhong- 30 7 A hutong. Image source: http://117. photo.pp.sohu.com/images/ blog/2007/9/11/0/8/1158a7de873.jpg The Famous Hu Tongs of Beijing (Hu tong? What the heck is a hu tong?) I had no idea what a hu tong was going into Beijing, and even after I’ve left, I’m not quite sure how they became so famous. Hu tongs are the small, narrow alleyways sprinkled throughout old Beijing. Certain alleyways have more significant histories than others, but for tourists, it is always a pleasure to rent a bike and navigate through the winding streets. In a city that has been so heavily consumed by consumption and modernization, these alleyways are a quaint reminder of Old Beijing. In some hu tongs around the lakes of central Beijing, merchants have opened small shops with a variety of amusing baubles to browse through at highly affordable prices. 8 Hou Hai. Image source: http://static.panoramio. com/photos/original/3142714.jpg Feeling Hip at Hou Hai Known for its popular bars, the experience of Hou Hai is entirely different from what you would expect from a western bar. Hou Hai is one of a series of lakes around central Beijing that features a chain of small lounges and bars. Though there may be a few dance clubs around the area, Hou Hai emits a more sophisticated, classy appeal to people in their twenties, particularly expats. On breezy summer nights, the experience is unparalleled. The menu at each bar along Hou Hai is almost exactly the same, with anything except for beer going at rather marked up prices. In this astonishingly accurate depiction of a real life perfectly competitive market, the only differentiation from lounge to lounge is the musicians that they offer to accompany your Tsingtao. (Legal drinking age in China is eighteen, folks.) On nice nights, the owners bring large, over-stuffed couches outside so you can enjoy the breeze and colorful lights reflecting in the lake, as a variety of up-and-coming singers sing everything from smooth melodies to Western pop hits. I also heard many of Jay Chou’s ballads while wandering through this area. The calming atmosphere of an otherwise bustling nightlife scene is almost worth the scores of young men each bar hires to hover outside and harass anyone walking by, trying to bring in potential customers. 9 Mu Tian Yu, the Other Great Wall As touristy as it is, it’s a shame for visitors not to visit the Great Wall, China’s long-time historical and national symbol. Unfortunately, popular Great Wall destinations like Badaling are overflowing with people, resulting in most of your time spent getting your heels stepped on by the guy behind you rather than enjoying one of the great wonders of the world. For the adventurous, there are some ruins along the Great Wall that are technically accessible (though perhaps not legally permitted), but a more reasonable alternative is Mu Tian Yu. There’s much less tourist traffic, and the view is incredible. Almost as thrilling as the climb up, however, is the descent down, where droves of shopkeepers scream and accost you to buy their Great Wall paraphernalia. The amount of selective targeting towards non-Chi- nese guests is incredible, and anyone that doesn’t look like they speak Chinese is deluged with cries of “Mao Zedong t-shirt! Very cheap! One dollah!” like something out of a Russell Peters sketch. 10 Fighting for Your Life at the Beijing Train Station Though Beijing is enough to spend years exploring and never reach the end, the eighteen hour flight to the other side of the world is worth spending a few extra bucks to visit other cities in the area. A train ride to Shanghai takes about twelve hours and is best done on an overnight train or by plane, while a trek to western parts of China could take much longer. Plane tickets are the most expensive by far, and a train ride to another city is not only cheaper, but can also be an experience in itself. Overnight rides offer sleeper cars in comfortable four-bed compartments, but cheaper tickets for as little as 60 RMB (approximately $9) can get you a comfy airplane-like seat for the ride. The ease of city-to-city transportation “Unruly conglomeration of people” at the Beijing Train station. Image source: http://img.club.pchome. net/upload/club/other/2009/11/8/pics_ cwhanson_1257674645.jpg The ten places I noted were destinations I highly enjoyed during my stay, but for the nation’s capital, there is an endless amount of things to do in Beijing. Of course, I also paid my dues and traveled to must see destinations – Tiananmen Square, Mao Zedong’s mausoleum, my great grand-uncle’s house, and the like. Your trip to Beijing is going to be what you make of it, so make public transportation your best friend (those RFID cards are da shiz) and explore! But don’t get into one of those black taxis with no labeling on it. That’s just asking for trouble. Wharton Asia Journal | Spring 2010 Mu Tian Yu. Image source: http://farm4.static.flickr.com/3286/2750271958_f9087486b6_b.jpg is slightly dampened by the unruly conglomeration of people that is the Beijing Train Station. The station is like Grand Central and SEPTA combined, with Grand Central’s proportions and SEPTA’s surliness. Many of the workers here are from other parts of China, and speak with local dialects unintelligible to even fluent Mandarin speakers. Trying to catch a cab out of the station requires a substantial wait, so the subway to the station is probably most convenient if you don’t have much luggage. Even if you do have luggage, you’re likely to get pushed and tossed around by the crowds if you arrive in peak hours, so the maxim of “pack lightly” could not apply more. 31