CHINA BOY

12.02.06 10:56 AM - By Jim James

I’ve made progress this week, the blanket of snow covering Beijing on Monday being a good omen by legend,  as it china boybrings water for the crops in spring. In the first working week of the Year of Dog I have learnt about the myriad laws for company incorporation, rented an office in downtown Beijing and been given an insight into who survives in Beijing, who thrives and who simply walks away. Monday morning began my education into the labrynthine legal maze facing me in setting up the company here. Essentially my decision is between setting up an FIE (Foreign Investment Enterprise) as either a Representative Office or Wholly Owned Foreign Enterprise (WOFE). As far as I can understand, they key difference is that the Representative Office cannot function as a stand alone entity, unable to invoice or receive payments from a client. It is taxed 10% on its expenses, and staff have to be hired through FESCO or another government linked employment agency. The real benefit is that there is no need to bring cash into China. The WOFE functions entirely as an independent business with all the rights that gives, costing between US$5,000 and US$15,000 to set up. A function of currency controls, the WOFE must have a stated working capital and this money must be brought into China and registered with SAFE (State Administration for Foreign Exchange). Four consultants later and I am confused whether I need to commit RMB100,000 (US$12,000) or US$100,000 to ensure that my license for a WOFE would be approved. Each consultant had differing stories of which amount would ensure success with the upto 14 ministries that need to approve a business license application. jianwai SOHO blockPondering the legal entity I was able to be more decisive when it came to committing to an office.  I was sold on Unit 0504 in block 10 of Jian Wai SOHO, one of 20 blocks designed by Japanese architect Riken Yamamoto. However, when I told Tina, the rather capricious agent, she said it wasn’t available. Why take me to see a unit that’s not available At 136m2 for indoorRMB8,500 (US$1,620) it is US$7.92m2, less than a third of what the most expensive accountants, Dezan Shira, spend and half that of the cost conscious Mr Lee of Lee & Lee, and so I believed the 5th level unit in this centrally located complex represented good value. The deciding factor was the decking area that meant we could sit outdoors – unique to the 5th level and a feature I haven’t seen in any other offices. Body language is universal, and as I sat determinedly in the sumptous red chair of the Jian Wai showflat, Tina understood that it would be prudent to find the owner, prising open her clam shell phone and securing in principle agreement. By Thursday I had signed the bi-lingual rental contract provided by SOHO management corporation with the young track-suited owner Li Xioalin, and handed across RMB2,500 (US$312) as a deposit – the maximum ATM’s will give out per day. Excited, I went to Centro in the Kerry Centre, the informal second board room for many expatriates, and met with Americans David Wolf and Kristian Kender. I asked David, a commanding figure with a capacity for facts, figures and over 10 years living in China what would be his advice to me, a China apprentice, “retain your sense of intrigue and remember that you don’t ever know it all.” As we drank Australian red wine listening to the American jazz singer in the Hong Kong owned bar at the epicentre of one of the fastest changing societies, it seemed sensible enough advice to follow – a week of exploring the legal complexities, viewing real estate, and trying to figure out how to see my blocked blog, had left me fairly worn out. I dedicated my Friday afternoon to regaining some of my lost fitness – for I have realised how this relocation has dislocated my appetite, sleep patterns and ability to ever feel less than tired. I checked out Bally’s Gym in SOHO which included full facilities and a pool for RMB5188 (US$648) per year and then had a trial work out at Evolution – I was entitled to a free session for buying too much coffee at Starbucks. Friday evening was spent putting back the calories as I celebrated Rob & Sarah’s birthday at a new and unfeasibly small Mexican bar called Saddle. Amazingly I bumped into two people that I had studied Mandarin with in January 2004 at BCLU – a French girl whose affinity with Beijing is expiring and an ABC (American Born Chinese) lad called Patrick who was most obviously in his element. Beijing, with all its dirt, spitting, pace, and need to be wary of all things, can be both a safe port and purgatory. There is no doubt that IKEA on a weekend is like Dante’s inferno. Starting with Circle One - Those in limbo asleep on anything that doesn’t move. Circle Two - The lustful after the specials in the ‘sale bin’. Circle Three - The gluttonous who had second helpings of the Swedish meatballs in the restaurant. Circle Four - The hoarders who tucked towels under IKEAtheir arms. Circle Five - The wrathful who got frustrated at the silly Swedish names of everything. Circle Six - The heretics who tried to leave by the fire exit even though the sign said it was alarmed in every conceivable language, and Circle Seven - The violent trying to leave the crushing pay queue. Cirle Eight – the fraudulent who came without any itent to buy; that was Rebecca and I as we couldn’t handle the inferno. In one way IKEA is a microcosm of China – where modern retail meets Chinese reality, a place of real consumption and aspiration. SOHO, owned by a Chinese, designed by a Japanese, rented by an Englishmen and furnished by Swedes, may be an indication of how quickly there may not be such a simple figure as a China boy. How exciting is that! art gallery Nearly as exciting as going to Rebecca’s art gallery opening this evening stylishly named, ‘88 Art Documents Storehouse’ in Feijia Village. There I met many famous artists including Tong Zhengan, but I fell in love with the China boy paintings by Yao Junzhong (sample at top of article). The art scene in Beijing is vibrant, exploring issues of modernisation, romanticism of the past and wrestling with the moral distraction and attractions of commercialism. Writing from his hotel room in a very different city, Montreal, a good friend Keith Mitchell wrote to me in response to Brittle – and I wanted to share this verse. There is a poet in us all. China Boy I wonder, why? Approval? Never! Excitement? Maybe. Adventure? Probably. Challenge? Certainly. Pretending with extravagent visits Satisfied with collecting stamps Fear is our leader. But his defeated opponent. Ends
Jim James

Jim James

Founder UnNoticed Ventures Ltd
https://www.jimajames.com/