Xiamen boomtown
May 31, 2004 | 12:00am
Xiamen has come a long way...and in so short a time. From our very first glimpse of its impressive pagoda-style airport terminal aboard Cebu Pacific Air for its Manila-Xiamen inaugural flight, it was quite clear that this Fujian port city has lots of surprises in store for the first-time visitor.
The red carpet welcome by the Xiamen government and airport officials indicates that they mean business when it comes to promoting Xiamen to potential investors as well as tourists. With Cebu Pacific’s jaw-dropping offering of $170 roundtrip fare (100 percent lower than its competitor), Xiamen and Philippines relations promise to be more brisk than ever. "This will certainly open a lot of opportunities for travel and trade between the two countries. Xiamen being the gateway to China, it has the potential to become a hub for travel to other cities in China," Frederick Go, executive committee member of JG Summit Holdings, of which Cebu Pacific Air is the subsidiary.
And with Cebu Pacific’s reputation of giving its clients "the best possible service at the lowest possible cost", plus the fact that its flights are never late 95 percent of the time, a trip to Xiamen is quite a pleasant experience. From its friendly and efficient flight crew to its hot, filling inflight food to its much-awaited "bring me" games, the 2003 Kalakbay Awards Best Domestic Airline awardee might just earn another award next year.
Formerly called Amoy, Xiamen is one of China’s five special economic zones. Established in 1980, the Xiamen SEZ became the first patented technology zone in China and is now enjoying trade relations with 180 countries. Its international airport alone has 60 domestic and six international links (including direct Cebu Pacific flights twice a week). Records show that it’s the fifth biggest port in China and has links with 60 other ports in more than 40 countries and regions. Taiwan is Xiamen’s biggest investor with $4 billion worth of investments from 1,595 Taiwanese projects. One of its major attractions among business groups is the upcoming 9th China International Fair for Investment and Trade to be held at the Xiamen World Trade Center from Sept. 8-11. This annual trade event is considered the biggest in China.
One only has to look around the city to see that Xiamen is gearing up for something big. The Philippine delegation composed of members of the media, the business sector, and government agencies couldn’t help but drool over the city’s fabulous sights. First-class well-paved and very wide roads greet people upon coming out of the airport. Well-designed high-rise buildings and postcard pretty residential units ranging from the Mediterranean to Song Dynasty to contemporary styles make you want to pack your bags and migrate to this lovely southern China city. It’s amazing how the islands on the roads could teem with the healthiest looking greens and blooms. Imagine a natural canvas painted with well-tended grasses and shrubs looking like sculptural pieces. The street lamps, our group noticed, are artistic works themselves. If we sound like raving fans, well, we are. It’s that impressive.
According to the Philippine Consul General to Xiamen Ma. Corazon Yap-Bahjin, Xiamen wasn’t the spanking city it is now back in 1999 when she was assigned the post. "Back then, my Camry car was among the few modern vehicles here but now, you can see Volvos and Benzes everywhere," says Bahjin who has a staff of nine Filipinos (including Vice Consul Jesusa Susana Paez) and five locals.
Along with China’s opening up to the rest of the world came its quick progress. Development began in the early 1980s during Chinese Premier Deng Xiaoping’s time. In 1999, says Bahjin, infrastructure projects including major highways, bridges and buildings were almost completed but the government kept building, clearly in anticipation of future demands. Clearly, long-term planning – a must if any country wants to have a stable economy – is considered sacred here.
The plan, says Bahjin, is to build high-rise buildings and phase out the old ones. This is probably the reason why rows and rows of newly built residential and office buildings around town are generally empty. When it’s time to transfer, Xiamen residents can leave their old apartments and transfer to the new ones without much hassle. Perhaps owing to its socialist bent, Bahjin says residents in Xiamen are only allowed lease-hold arrangement of their land properties. For 75 years, which one can extend, a resident should be able to develop his property. If he is unable to do that, the government can give it to somebody else to develop.
Records show that Xiamen’s economy from 2002-2003 increased by 17.2 percent in GDP and enjoyed a GDP per capita of $6,460, making it the leading city in industrial output value in Fujian province. Along with this was a high agricultural output. Its total value of imports and exports totaled $11 billion, the highest among China’s economic zones.
"Xiamen is well-known for its garments, shoes, and automotive spare parts. Unfortunately, the Philippines is not a big trade partner here unlike the US or Korea. Culturally, however, Filipinos are looked up by Xiamen residents with high esteem," says Bahjin. Unfortunately for us, the last cultural exchange program that was sent to Xiamen was more than three years ago when the late conductor Red Romero and musician Ingrid Sta. Maria visited the city for a series of cultural performances. The consulate would have wanted to bring in dance troupes here like the Bayanihan but budget constraints keep them from doing so. It’s unfortunate since she says the Chinese people really have a great appetite for cultural performances from abroad.
In 1995, Xiamen established sister city relations with Cebu owing to both cities’ similarities. Both are port cities, enjoy similar rate of economic progress, and Cebu has lots of Filipino-Chinese residents who trace their roots to Xiamen. In fact, 85 percent of Filipino-Chinese in the Philippines have Fujian Province origins.
The Philippines export raw materials to Xiamen such as iron and chromite, as well as coconut products and mangoes (Xiamen could very well import our watermelons since they’re definitely much sweeter). At the moment, there are 285 Filipinos in Xiamen working in industrial/technical companies (36 percent), professional (24 percent), entertainers (9 percent) and domestic helpers (5percent), among others. Students comprise 20 percent and is a growing market especially with the establishment of the first international school in Xiamen. Majority of the English teachers in Xiamen International School are Filipinos.
Filipino-Chinese investors are quite gung-ho as well in investing in Xiamen. John Gokongwei, of course, has Cebu Pacific Air flying to Shanghai, Hong Kong, Guangzho and Xiamen. Lucio Tan has his Xiamen Commercial Bank, Asia Brewery, ETON, PAL-Xiamen office, while our very own SM Department Store can now be seen in Xiamen and Fuzhou. Other investors include George Go (Guang Ming Plaza), Alfonso Yuchengco (Malayan Insurance Co.), John Ng (Metal Steel Co., Xiamen Taifeng Real Estate Co. Ltd.), Jimmy Tang (Pacific Plaza Building (Real Estate), and Gilbert/Wilber Yu (Pacific Plaza Building).
"Investors admire the city’s infrastructure and its peace and order situation. According to major investors, including a glove manufacturing company that pulled out from the Philippines, their reasons for investing in Xiamen is there’s no great labor unrest here and bulk electricity is cheap," says Bahjin. Clearly, government intervention and support translate to fast progress.
With the Chinese being skilled workers themselves, hiring foreign consultants, particularly in the technical field, isn’t really a priority. Potential job opportunities for foreigners are mainly limited to designs especially architectural designs. Bahjin also reveals that China sent 200,000 scholars, usually from poor families in the provinces, abroad last year. To prevent brain drain at that early stage (read: scholars not coming back to share what they’ve learned), the government offers incentives to the scholars’ families back home such as remunerations, housing and health benefits. "Apart from these, adds Bahjin, they have a very strong sense and pride of country. (How we wish it were the same here on these islands...)
Obviously, we can learn a lot from the people of Xiamen. But not a few raised their eyebrows when Bahjin revealed a shocker. Asked what the city has learned from the Philippines, she declares that the Xiamen government has hired a Filipino consultant to help in the traffic situation. Wow, if a Filipino can ease the traffic in Xiamen – which is virtually non-existent by the way making it a driver’s paradise – why can’t it be the same here? Well, discipline for one. Second, according to Bahjin, the government has a very good urban planning. Pocket parks are constructed, factories are located outside the city, tree-planting is encouraged, wide, wide roads are built, and more. With an average of 10 million of foreign and domestic tourists arriving in Xiamen last year, a good urban planning is a must. Obviously, the Xiamen government had enough foresight on this matter. How we wish we could do the same here in this country. Wishful thinking perhaps but, hey we can dream, can’t we now?
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