Two years ago, when 50 community and business leaders participated in the “City to City: Boston Leadership Exchange” to China, there was great excitement as China got ready to host the 2008 Olympics. Much construction was underway in China’s largest cities, and exports to the U.S. were at an all-time high.
By contrast, the global recession dominated discussions during an August, 2009, U.S. State Department-sponsored visit to Beijing organized by the American Council of Young Political Leaders. While Central Committee members of the Chinese Communist Party expressed great optimism about President Barack Obama and of Secretary of State Hillary Clinton, officials continually reinforced the interdependency of our two economies. Stating that China is not yet a global power like the U.S., party officials noted that China is a country with global influence, as they tactfully reminded us that China is the largest holder of U.S. financial instruments.
Although construction activity has slowed, Chinese leaders continue to plan for economic expansion. Visiting the Tianjin Planning Exhibition Hall forty minutes outside of Beijing, one couldn’t help but be impressed with the plans of a city anticipating ten million residents and positioning itself as a player in the global economy. Currently, goods destined for the Port of Boston are transported by China Ocean Shipping Co., the premier international shipping carrier in China, from Shanghai, the world’s busiest port. During our visit, Tianjin’s planners touted their port as the world’s highest-rating artificial deep-water port, and a two-story map in the Exhibition Hall lobby prominently featured Boston as one of a handful of future North American trading partners, even though Massport officials have since indicated that they were not aware of such trading interest.
Saving Grace
To stimulate its economy, the Chinese government is encouraging its citizens to save less and to spend more. A significant increase in domestic tourism at tourist sites once primarily frequented by Western visitors was evident this summer, and greater Chinese spending holds opportunities for Boston businesses. Already, Boston Harbor boat operators provide Chinese-narrated cruises for Chinese tour groups, and these specialized tours and services can only be expected to increase with the growth of the middle class in China. Similarly, demand for American-brand goods is very high with Chinese natives visiting Boston, even when these goods are made in China since the goods are exported to the U.S. and not available for domestic purchase.
Climate change was a primary focus of our discussions with the Ministry of Foreign Affairs and with the National Development and Reform Commission of the Chinese State Council, given China’s projected industrial growth and the country’s trend towards urbanization, with 150 cities populated by more than one million residents each expected by the year 2020. Inefficient coal facilities are being retired, greater usage of wind, solar, and bio-mass power is being promoted, and a new “Sino-Singapore Tianjin Eco-City” is being built jointly with Singapore, which will be a model for sustainable living and economic development. To reduce energy consumption by at least 20 percent compared to 2005 usage, large buildings and public facilities have “raised the heat,” as we observed first-hand in conference rooms where air conditioning did not cool below 78 degrees F. and in airplanes which did not turn on their engines or air conditioning until taxiing for take-off, even when outside temperatures were above 90 degrees.
Perhaps the most insightful meeting, though, was with Chinese University students. They expressed admiration for their American counterparts, whom they view as confident and relaxed. Yet, the Chinese students remarked, your young people seem to know so little of the global economy or of diplomacy. How will our generation work together, they asked, if there isn’t mutual respect and understanding. With that, we left China feeling that our work back home was cut out for us as we seek to foster a strong global economy and sustainable environment which recognizes mutual interests.
