3 July 2008
Update: Olympics continue to cause major disruptions to business in China.
Posted by Roger under: China News & Events; China; Beijing Olympics .
There is tons of press at the moment discussing the upcoming Beijing 2008 Olympic Games, ranging from political debates to complaints concerning visa restrictions. Obviously its just too much to cover in a singe post but there are a few points worth bringing up here; some related to business, others simply related to China in general.
Beijing Enters Lock-Down Mode as Olympics Nears
From China Briefing
We have received first hand accounts from businessmen attempting to enter China on apparently legitimate commercial trips being turned away, forcing mass cancellation of hotel bookings, and of individuals with seemingly impeccable employment credentials being denied a renewal of work visa. Additional problems from reliable sources indicate Olympic events tickets are being withheld currently from main Olympic sponsors entitled to certain seats in favor of Chinese government officials from other provinces who are “potentially” attending.
In one instance, we have been made aware of a group of Australian bankers whose collective party was rejected for business visas at a total loss of US$300,000 to the hotel over canceled bookings, as none of the bank’s executives were able to obtain visa clearance. In other cases, we have heard directly from businessmen of certain Asian nationalities, holding legitimate work visas as chief representatives of their companies in China, also being refused entry.
On Getting Your China Cargo/Freight/Product
From the China Law Blog:
DHL just came out with its 4th (and probably most important) volume in its “Olympics Memo And Contingency Plan.” (h/t to All Roads Lead to China). This memo does an absolutely amazing job of listing out the rules and changes applicable to cargo and freight and automobiles and trucks and ports and traffic and airports and polluting factories arising out of or relating to the Olympics. And if you think all of this only matters if you are in the cargo or freight forwarding business or doing business in Beijing or running a factory in China, think again. Just about everyone who does any sort of business in China will be affected in some way by the various changes that have happened or will soon happen as China (and again, not just Beijing) gets ready. Even if you do nothing more than buy product from China, I urge you to read this memo.
Olympics a Bust for Beijing Business
From Time
The economic pain is felt well beyond the hospitality industry. Business groups complain that the visa rules are keeping overseas investors from visiting factories, and blocking retailers from attending trade fairs.
For Hosts, Games Lose Some Luster
From the Washington Post
“So many people expect the Olympics will help make China’s economy even more prosperous. But in China, the government operates everything. As a result, the Olympics are not that efficient, economically speaking,” said Zhang Ming, a professor of international relations at Renmin University.
Authorities in Beijing, for instance, have said they will limit the number of trucks in the capital during the Games to improve security and curb traffic. The move means stores are likely to find themselves short of supplies.
“I just got the key of my new apartment last weekend. I need to buy tiles, paint, sinks, a toilet, kitchen appliances, a wood floor. But several construction stores told me they got government notices encouraging them to close during the Olympics,” said Yin Jun, an editor in a publishing house.
Latest no-shows for Beijing Olympics: Tourists
Security is a growing concern. China has banned all large social gatherings, including fairs and conventions, during June, July and August and has ordered many street vendors out of the capital.
Foreigners find Beijing becomes a forbidden city before Olympics
From The Globe and Mail, June 5, 2008
BEIJING — Daniel Yeung is still trying to understand how it happened. After eight years of steady employment, the Canadian recruitment consultant is being kicked out of China, forced to join an exodus of foreigners streaming out of the host country ahead of the Beijing Olympics.
Mr. Yeung is one of thousands of Canadians and other foreign citizens who are being forced to leave China this month because of tougher visa rules.
“A lot of people are being kicked out,” he said. “We’re still trying to figure out why the authorities are being so strict and so unfair.”
The exodus has cast a shadow over the Olympics, making Beijing a less welcoming city at a time when most Olympic host cities are usually gearing up for an internationally flavoured party.
Beijing has not fully explained the crackdown, but it is apparently due to “security” concerns and a fear that foreigners might cause political trouble during the Olympics in August.
This week, Beijing warned that foreigners attending the Olympics will be banned from political activities, demonstrating, carrying banners, damaging “social order,” or importing any “printed material” that is “detrimental to China’s politics.”
The visa crackdown has already triggered a decline in foreign tourists visiting Beijing this spring. Cultural and music festivals have been cancelled for vague “security” reasons, major academic conferences have been scrapped and even foreign investors are finding it harder to enter the country.
Mr. Yeung, a 32-year-old Vancouverite, has held jobs in property and restaurant management in China and worked for three years in immigration screening at the Canadian embassy in Beijing. For the past eight months he has been a consultant at the Beijing office of a recruitment agency.
But when he tried to renew his work visa this spring, the Chinese authorities rejected his application. They said his educational qualifications, a diploma in physiotherapy, were inadequate for his job and he must have a bachelor’s degree if he wanted to work as a consultant in China. It didn’t matter that his employers were happy with his work, or that he was performing a useful service.
“All sorts of people are being refused visas for the silliest of reasons,” Mr. Yeung said in an interview.
“The authorities are finding any little flaw, any little excuse to reject people. I still don’t understand why. I think it’s really absurd.”
One of his friends, a Norwegian businessman who owns his own company in China, is being kicked out this summer after 10 years in China because the government said he must have a graduate degree, Mr. Yeung said.
Canadian investors say they are being hurt by the visa restrictions. Many business executives in Hong Kong are facing serious delays in obtaining visas to visit their factories and offices in mainland China.
“It’s been a real hassle for our members,” said Andrew Work, executive director of the Canadian Chamber of Commerce in Hong Kong. “It’s taking longer to close a deal or conduct business. People are saying, ‘It’s hurting us, because it’s slowing everything down.’ Time is money, and anything that slows down movement across the border is costing money.”
In response to a survey by the chamber, some Canadian businesses said they were worried they could lose millions of dollars in revenue because their clients might be unable to visit Chinese factories to inspect them before placing orders.
The American and European chambers of commerce in Hong Kong have sent letters to the Chinese government, expressing worry that the visa denials and delays will hurt business.
The Chinese Foreign Ministry has acknowledged that a visa crackdown is under way. The approval process has become “more strict and more serious” because of the need to protect the “safety” of the Olympics, a ministry spokesman said.
The crackdown is hurting tourism. In April, the number of overseas visitors to China declined by 5.3 per cent, compared with a year earlier. Officials admitted that it was probably a result of the stricter visa rules, although tourism has also suffered from China’s ban on foreign travel to Tibet after the recent wave of Tibetan protests.
Even during the Olympics, foreign visitors to Beijing could be fewer than last year at the same time, according to some travel agents. Beijing’s hotels, which tripled their prices for the Olympics, are reporting lower-than-expected reservation rates, with many rooms still available.
China’s security paranoia has intensified the restrictions on foreigners, who are now required to carry their passports everywhere. Police raids and inspections have targeted nightclubs and apartment buildings with large numbers of foreigners.
Seven runners in an international jogging club, the Hash House Harriers, were recently detained by police for several hours because the police were suspicious of the baking flour that the runners had used to mark their jogging route.
http://www.thebeijinger.com/forum/viewtopic.php?t=24500
Related posts:
- Beijing Olympics Update: Major shutdowns ahead for the reproduction furniture industry
- Beijing 2008 Olympics effects exports & factory output in China.
- Beijing traffic curbs stifle trade, may ripple to U.S.
- Welcome to the Olympics, Communist Style
- Rising nationalism - Will it effect the business climate in China?
