Tag: Government

Understanding China’s Work Holiday Schedule

September 16, 2015

One thing that often trips up business travelers to China is the unique Chinesecalendar-20clip-20art-calendar holiday schedule. It has not been unheard of for Westerners arriving to plan rapid-fire meetings only to learn they accidentally overlapped their trip with a 4-day holiday that “came out of nowhere.”

Never fear! Here are some useful tips for you to understand and plan around the Chinese work holiday schedule like a pro.

  1. The Official 2015 Chinese Public Holiday Calendar

Thanks to Baidu.com, here is the official 2015 public holiday calendar in China. (The original post is in Chinese, I translated to English. Click this link for the Chinese version.)

 

Holiday Public Holiday Time Compensation Days (explained below) total off days
New Year’s 1/1 – 1/3 Sunday, January 4 is a work day 3
Spring Festival 2/18 – 2/24 Sunday, February 15 and Saturday, February 28 are work days 7
Tomb Sweeping Festival 4/4 – 4/6 Monday, April 6th is an off-day to make the holiday a 3-day weekend 3
Labor Day 5/1 – 5/3 Monday, May 3 is an off-day to make the holiday a 3-day weekend 3
Dragonboat Festival 6/20 – 6/22 Monday, June 22 is an off-day to make the holiday a 3-day weekend 3
WWII Victory Day Festival 9/3 – 9/5 Friday, September 4 is an off-day, and Sunday September 6 becomes a workday 3
Mid-Autumn Festival 9/26 – 9/27 The weekend days are the holiday 2
PRC National Day 10/1 – 10/7 Saturday, October 10 becomes a work day 7

2. Explaining the Tiaoxiu “Compensation” Days

China has what seems very strange to Westerners: tiaoxiu, or “compensation” days. Depending on when the holidays fall, the government will essentially move the work week backwards or forwards a day to allocate consecutive days for the rest period. For example, you’ll note above for the New Year’s holiday that though the holiday itself was from Thursday, January 1 to Saturday, January 3rd, the following day, January 4th, was denoted as a work day. Thus, the holiday is designed for people to get their “three-day weekend” starting on Thursday, and return to work on Sunday.

This year was particularly strange as the Mid-Autumn Festival days, which depends on the lunar calendar, fell entirely on a weekend and also very near to the succeeding National Day holiday. Employees in China were not robbed of their precious days off, however, as the government scheduled the much publicized “WWII Victory Day” Celebration at the beginning of September. The compensation day voodoo was again utilized here as Thursday the 3rd to Saturday the 5th were off-days, but people returned to work on Sunday. Plus, this made up for the “lost” days of the Mid-Autumn Festival

3. Understanding China’s Spring Festival Holiday

The big one that trips people up is the Spring Festival. Since the holiday is based on the lunar calendar, the timing of this week-long holiday varies year to year. Generally, the official public holiday will fall sometime between mid-January and the end of February, but you should always pay attention to when exactly the holiday will be months before making any business travel.

While the official public holiday is only a week, the Chinese Spring Festival holiday is akin to what we experience in America around Christmas/New Year’s time, but on steroids. China is really slow for business throughout most of January and February, and starts building up momentum again only after the holiday concludes. As I’ve written about before, China is home to the world’s largest human migration every year around the Spring Festival. Many employees will take all their available vacation days around that time to extend the holiday. Most business owners are traveling home or perhaps abroad.

My best advice is to get what you need to get done before January 1st, and then wait until after Spring Festival to make your trip to the Orient. Looking ahead to 2016, next year’s Spring Festival is slated for February 7 to February 13.

4. Plan ahead

The good news is that now this doesn’t have to be a total mystery to you if you merely plan ahead. The Chinese government typically issues the official public holiday schedule sometime between December 9th and December 14th. You can check back on this blog around then to get the scoop!

How to get around China’s Internet Firewall: VPN Tips

September 8, 2015

One question I get most often from people about living in China is: “How do you use the Internet while in China? Isn’t there a lot of censorship?” Of course it is true, China does have a significant level of censorship that restricts access to alot of web content. Most foreigners frequenting China on business are probably most impacted by the restriction on websites commonly used at home for communication or news. We are talking about social media sites like Facebook and Youtube, news sites like the New York Times, and the most irritating of all, all Google-family web portals including Gmail. If you are surfing the web in China and try to get onto these websites, you will be wholly unable to connect. Talk about a buzzkill.

GET AROUND THE FIREWALL WITH A VPN

The good news is that you can get around the Firewall using what is called a VPN: Virtual Private Network. With VPN software on your computer or mobile device, you will be able to literally jump over the China internet firewall to connect to the Internet using an IP address from a country that does not restrict internet access. Thank God for technology!

VPNs are easy to get and relatively easy to use. One word of advice is to make sure you purchase and download the software BEFORE coming to China as sometimes it is hard to reach the VPN websites within China because (surprise, surprise) those VPN company websites are also blocked here.

WHICH VPN?

There are many choices when it comes to VPNs. Personally, I have been using Astrill for the better part of two years. You can sign up for as low as $5.83 for a month subscription and can add-on a subscription for your smart phone or Ipad. ONE IMPORTANT THING TO NOTE: At the moment, Astrill is getting hit hard by the Chinese government censorship bureau.  While the desktop Astrill VPN seems to be working fine, the iOs (Apple Iphone and Ipad) systems are having a very hard time connecting. This may pass in the next few weeks as things change, but for now if you need to get access on your iPhone you may want to get a different VPN. Despite this, I still recommend Astrill as it has the easiest user interface and the iOs blocking will probably pass soon. What can I say, I’m a loyal consumer.

Another good choice is ExpressVPN. I have used it in the past and was happy with it, although again I switched to Astrill when ExpressVPN was previously targeted by the government. At the moment, it appears Express is having less problems than astrill. Express is similiar in pricing to Astrill, and they are also offering a 30 day money-back trial.

Those VPNs are the two most used amongst my friend circle here in China, but you are welcome to shop around as there are many, many choices. Here is a list you can browse from. If you find one that works well, please drop me an email and maybe we will feature it on the blog. Oh, and if you happen to get Astrill, please consider adding my email as the referrer so I can get a free month add-on ;). I’d owe you one!

The Canadian Immigration Investment Program is CLOSED; U.S. Open for Business

There will soon be a boom in the U.S. immigrant investment program as the Ottawa government made a surprise announcement to close their immigrant investment program.

My take on this was published in China US Focus, or you can read about it below:

Canada Closes Its Doors for Immigrant Investors: A Boon For America?

In a move that took almost everyone by surprise, last Wednesday, the Ottawa government declared that it would be closing its immigrant investment program for good. This comes after almost two years of a complete standstill in the program, with no visas being issued to any applicants since before 2012. That gridlock led to a backlog of over 65,000 immigrant investor applications, some dating back to as early as 2008.

Since the program was halted in 2012, Ottawa had maintained that the program would be opened again sometime in 2014. However, it appears that the pressure to close the program proved to be too great. Unfortunately, for those that have been waiting in line, in some cases for perhaps four years or more, there will be no Canadian Permanent Residency waiting at the end of this road.

It is no surprise that the biggest demographic impacted by this bombshell decision is Chinese investors. According to official numbers from the Canadian government, around 45,000 applicants waiting in line were from Mainland China.

One Door Closes, Another Opens 

As we speak, Chinese applicants and the hundreds of immigration agencies all over the country are going over options. In an industry that is far from transparent, Chinese investors that were counting on the program to be reopened are now wondering what direction to go in. Whether they were interested in living in Canada, starting a business, or in most cases, sending their child to school, their plans that had been many years in the making will have to be altered.

Just south of Canada, though, there is another country with its own investor immigration program that looks like the most natural choice for recently rejected would-be Canadian immigrants. The U.S. EB5 program boasts all of the benefits of the Canadian program, and over the next few months we may witness one of the biggest moments in the program’s history. 

Canadian Program Basics 

The Canadian and U.S. program differed in a variety of ways, both having merits and shortcomings in comparison to one another. From the mid-90s up until mid-2011, Canada dominated the market. The program had been a $400,000 loan to the federal government, which was returned to the investor without interest five years after making the investment. In 2011, the program was raised to a minimum $800,000 investment in an attempt to slow things down; applications still poured in which led to the 2012 halt and today’s outright cancellation.

One of the biggest advantages in the market was that the Canadian program was a no-risk loan to the government, unlike the U.S.’s $500,000 at-risk investment scheme. In a country where trust is scarce, many Chinese flocked to the Canadian program simply because they knew that as long as they could wait in line, the government would guarantee their green card and their money. 

The U.S. EB5 Program: A Life Preserver for Clients Rejected by Canada

Since the stall of the Canadian program in 2012, the U.S. EB5 program has started to pick up more and more steam in the Chinese market. In 2011, 2530 EB5 visas were issued to Chinese clients, just shy of 80% of the worldwide market. In 2013, that number was already up to 6895 visas, taking up 81% of the market. That number will likely rise this year in response to the drastic change in Canada.

Agents across China that had previously made their bread and butter from processing clients into the Canadian program had started to shift their business models towards including U.S. programs on their docket, and now that trend will almost certainly go forward at a harder pace.

In many ways, the U.S. program is an easier and more attractive option for Chinese clients. Although the investment is required to be “at-risk,” it is cheaper in price: $500,000 into a venture that creates 10 jobs, as opposed to the Canadian scheme of investing $800,000 to the government. Plus, the wait times are much more reasonable. The U.S. program is averaging between 15 and 21 months, whereas at best, clients looking to the Canadian market could have expected at least a two to three year wait, if not more.

What to watch for in the EB5 program? 

Many clients will be considering the U.S. program in depth for the first time. One of the most frequent questions I have received in the last few days is “Could the same thing happen in the United States as in Canada?” While there is no guarantee, it seems extremely unlikely that the U.S. EB5 program would suffer the same fate as the Canadian program. The investments, for starters, are very different functionally. As a condition of the visa, the U.S. $500,000 investment must create at least 10 jobs, which is a direct link to actual economic development. The Canadian counterpart was only indirectly tied to economic growth and job creation.

The EB5 program, most recently renewed in 2012, was actually one of the few things Congress has agreed to at all in the last few years. It was passed unanimously in the Senate and breezed through the House with only 3 dissenting votes. I doubt in an election year, any politician will risk his or her political future on taking a crack at eliminating EB5.

Indeed, what may be more important for clients now considering focusing their aim on the United States is choosing a good American partner for the investment. The Regional Center that our company operates in, the Metropolitan Milwaukee Association of Commerce Regional Center was approved in 2007. At the time, it was the 21st regional center in America. Today, there are over 400! Competition is fierce, and most in the business are newcomers. Now is the time for clients and their agents to analyze projects closely and go with the companies that are committed to building quality, long-term, safe projects.

I believe that for whatever reasons the Canadian government decided to close its program, this is a huge opportunity for America. Communities around the U.S. that are most friendly and welcoming to our Chinese friends and other international friends, and have ready U.S. projects to boot, and will gain the most.

Dan Redford is the Director of China Operations for FirstPathway Partners, and industry leading EB5 immigration fund manager. He also serves as the President of the Michigan State University Beijing Alumni Club. You can follow him and his perspectives from China athttp://www.danredford.com.

Governor Snyder Delegation Makes Waves in China

Two years ago, Governor Snyder came to China to start building a relationship almost out of nothing. At the time, it had been 11 years since a governor of the state of Michigan had come to China; Snyder vowed to reverse this trend and put Michigan back in the game to attract business and investment from this economic giant.

On Friday, Snyder and a delegation of 60-plus Michigan business owners and MEDC representatives left China after his now 3rd consecutive trade mission in as many years. As a Michigander that has been living in Beijing since the governor made his first trip, I am amazed and encouraged by the progress that has been made. Last year, the trip was headlined by the opening of the Michigan China Center in Shanghai, and this year, the governor took the message of the “Comeback State” on the road to Beijing, Shanghai, and Chongqing.

Third Trade Mission Delegation was dynamic, successful

Governor Snyder and I at the Beijing Reception - September 11, 2013
Governor Snyder and I at the Beijing Reception – September 11, 2013

The delegation itself has matured greatly from two years ago. It was exciting to mingle with so many high quality Michiganders at the governor’s reception in Beijing and see the hope and excitement they have being introduced to business in China. Although auto-related companies still represent the lion’s share of stakeholders in the bilateral relationship, this year’s delegation had a larger presence from service providers in a variety of industries. Terry Terry, President of Lansing-based video production and event management company MessageMakers, came with the delegation to not only film the historic visit but to also identify partners in China to grow his global business.

It was clear that real business was done on this trip. Prior to the Beijing reception, timber manufacturer and designer Morabark Industries of Winn, MI signed an agreement with a Chinese partner to formalize a business collaboration that will bring jobs to both Michigan and China.

The Pure Michigan Brand is gaining steam in China

Snyder’s efforts are clearly helping the name and reputation of the  “Pure Michigan” brand spread very quickly in China. During this trip, he secured a meeting and press conference with China’s Vice Premier Wang Yang, in which both agreed that there were a myriad of opportunities for a state like Michigan to collaborate with China. The Mayor of Chongqing, Huang Qifen, seemed to agree, penning a memorandum of understanding to build stronger economic ties between the city of 30 million people and Michigan. Government meetings at that high of a level would have been impossible two years ago.

What is even more amazing is the quality of the contacts the state has built in the private sector as well. In Beijing, the governor led the MEDC in meetings with the Chinese giant entertainment and real estate conglomerate, Wanda Group. Wanda group is growing into one of the largest and fastest growing private companies in China; last year, Wanda bought AMC Theaters for $2.6 billion, and is gearing up for huge foreign investment projects in the U.S. and throughout the world. The fact that Snyder’s team has at least put Michigan on the radar shows that Michigan is starting to get taken seriously.

Congratulations to Governor Snyder and this year’s trade mission for a successful trip! Please remember there are still thousands of Michigan resident expats here in China that are proud of where we come from, and are looking forward to helping contribute to building the Pure Michigan brand in China!

 

Top 5 “To Dos” for Governor Snyder’s China Trade Mission

Next week, Governor Rick Snyder will be traveling to China on his 3rd trade mission in as many years. Here are 5 things I hope he does during his trip (heck, I’d take 2!):

1. Bring home the bacon

Obviously, we need to see some real business deals signed that bring home jobs. There are at least 30 delegates going on the trip with Snyder, and I hope that at least one of them, such as Lori Huisman of Classic Design Concepts, can benefit from associating with the governor on this junket with a real business deal.

2. Declare that “密西根”is the standard Chinese name for the state of Michigan

It sounds crazy, but the state of Michigan does not even have a standard name in Chinese. There are at least 3 popular versions throughout China, but the state itself has never made it a point to standardize. The name 密西根 (pronounced mi-shee-gen) is the best choice and is already being implemented at the Michigan China Center in Shanghai, Michigan’s official office in China.

This will greatly help George Zimmerman, Director of Travel Michigan, and those of us Michiganders in China helping to promote our state!

3. Announce that he will personally sign visa invitation letters for serious real estate buyers

Quartz.com, and many other news outlets, commented about how Chinese have been going crazy over cheap buys in the Detroit Real Estate market. According to Fox News, though, many were unable to make purchases because they were denied visas to the United States. Ouch!

If the Governor signs an invitation letter, that goes a long way for a foreigner to get an approved visa. We could greatly avoid the missed opportunities created when serious buyers are denied entry. (Note: I understand that we don’t want the corrupt or the criminal entering either…proper due diligence on invitees would have to be a prerequisite.)

4. Pen a Sister City Memorandum of Understanding between Detroit and Chongqing

With almost 30 million people, Chongqing is China’s largest city. Lucky for Detroit, it is already sister cities with this giant! Snyder should re-ignite the sister city relationship by signing an MOU with their new party chief  to work towards sustained collaboration. (Ironically, the Party Chief of Chongqing was sacked last year in a corruption scandal and recently went on trial…I guess you could say there are some similarities between the two cities?).

5. Commission a “Detroit Dialogues” Series in Beijing

There are thousands of Michiganders and Chinese with Michigan ties that are ready to serve on the front lines to change the narrative about Michigan in China. We have access to corporate CEOs and government officials that we’ve worked with during our time here – – commission us to start a “Detroit Dialogues” series to get people talking about the realities of Detroit and Michigan. Consider this my application to volunteer!

Good luck to Governor Snyder and this year’s trade mission! 中国欢迎您！Welcome to China!

 

The Six-Step Approach For China to Help Rebuild Detroit

Detroit’s announcement of chapter 9 bankruptcy was a difficult but essential step for the city’s resurgence. Now, more than ever, what Detroit needs is belief. Detroiters have to believe that the city will come back; and if new people are going to be attracted to become residents, they’ll have to believe that Detroit is safe, exciting, and profitable.

This type of belief only comes from raising and executing bold ideas. Here’s one: invite China to be a key partner in the revitalization of Detroit. What better statement could be made than to have a city like Detroit, for years mired by resentment of a China that is “stealing our jobs,” finally grow up to strategically engage the world’s second largest economy?

The Washington Post recently published an article outlining six crazy ideas for rebuilding Detroit, so I thought I’d add a twist to that. Below, I propose a six-pronged approach to building the “China Engagement Strategy to Help Rebuild Detroit.” It is a long-term vision, which needs to start with getting people face-to-face, building trust, and ultimately result in real investment and jobs coming into Detroit from this unlikely partner.

1. Pure Michigan in Chinese

Unsurprisingly, Chinese people largely associate the city with the blight, unemployment, and violence that they see on TV. The only way to bring in investment is to get actual people into the city. Investing in a “Pure Michigan in Chinese campaign” will allow Michigan and Detroit to cash in on the growing number of Chinese tourists using their expendable cash to tour America and hopefully change their perception through a direct exchange.

2. Build a strong Sister City Relationship between Detroit and Chongqing

People-to-people exchange needs to increase to build trust. A great platform for this would be bolstering the Sister City relationship between Detroit and Chongqing, which happens to be one of the world’s fastest growing cities

Governor Snyder seems to be ahead of the game on this one as he is planning a stop in Chongqing on his upcoming trade mission. May I suggest he kindly ask Chongqing to write a check to fund a vibrant sister cities program with Detroit?

3. Engage Chinese students in Michigan

Between the University of Michigan and Michigan State University alone there are currently over 5,700 Chinese students going to school in Michigan. While they are pumping in millions of dollars in revenue to the state every year through tuition and fees, that just tips the iceberg. Most of these students would be dying to get job experience during their time in Michigan, even if that required living in Detroit for the summer. These students have the power to change the narrative.

4. Get the EB5 program working in Detroit

Developers around the country have been using the EB5 immigration investment program since 1992 to fund job-creating businesses. Though there are six approved regional centers in Michigan, all with jurisdiction in Detroit, so far, there has not been a successful EB5 case in Detroit, or even in the state of Michigan for that matter. In 2012, over 80% of the visas issued to foreigners thru this program came from China.

5. Detroit Real Estate purchases

Recently, the United States National Association of Realtors noted that Detroit cracked the top 5 most asked about real estate markets from Chinese buyers. Why not use the attention the city is getting now to promote the great properties that already exist? The bankruptcy could indicate to some that now would be the time to buy when prices are at rock bottom in anticipation of a climb.

6. Court China to buy Detroit ‘s assets and invest in companies

China’s government is in a position to make outward investment. They have the world’s largest stockpile of foreign currency reserves, now standing at over $3.44 trillion. China is in the midst of deciding whether or not maintaining such a high number of reserves is literally getting the most bang for its buck, and is making a pivot to make overseas purchases and investments.

What might Detroit have that would be interesting to the Chinese? Of course, as an industrial and manufacturing hub, Detroit has access to infrastructure and technology patents that have continued to grow the presence of Chinese automakers in Detroit. Huge parcels of land are also available at rock bottom prices that are ripe for business development.

If we really believe that Detroit can rise up from rock bottom, it is going to take a few bold ideas like these to make this city tick again. Consider me a believer!

Is the Chinese Dream an EB5 visa? – posted on Caixin Media

I recently re-entered the blogosphere and twittosphere, and the Internet Gods have already been good to me.

I co-wrote a piece with my friend and colleague, Justin Knapp, who shares my passion for Michigan, about the current state of the EB5 Immigration Investment market in China. The article, “Is the Chinese Dream an EB5 Visa?,” was posted last week in China’s largest business and finance online journal, Caixin Online.

You can read the English version by clicking here, 中文点击这里, or read the full text below:

You can read more from Justin and how to live a “Richer, Fuller Life in West Michigan” at Goodallfocus.com.

_______________________________________________________

Is the Chinese Dream an EB-5 Visa?

Both China and the United States would benefit from expanded use of an American immigrant investor program

By Justin Knapp and Dan Redford | June 28, 2013

Dream chasing is a popular topic in China these days. Thomas Friedman sparked the debate last October when he wrote a column titled, China Needs Its Own Dream. More recently, TheEconomist and CNN have also taken a gaze into the crystal ball to interpret China’s dream.

Chinese leader Xi Jinping, has loudly adopted the slogan “Chinese dream” while keeping quiet on the details of what that dream might be. Meanwhile, the American dream continues to be peddled in China’s mainstream culture and media. With foresight, the United States can benefit from this trend.

Today, more Chinese nationals than ever before are trying to live their dreams, not within the borders of China, but by gaining permanent residency status in the United States through investment and job creation. In fact, according to the Hurun Wealth Report 2012, more than 16 percent of China’s millionaires have already emigrated or submitted immigration applications, while 44 percent are planning to do so.

The Immigrant Investor Pilot Program (the EB-5 visa) was created by the Immigration Act of 1990 to stimulate growth by attracting foreign direct investment and creating jobs in America. To qualify for a visa, individuals must invest US$ 1 million or US$ 500,000 in a Target Employment Area which is a rural or high-unemployment area. Additionally, this investment must create and sustain at least 10 jobs on American soil.

Demand for the visa has fueled growth in third-party managed investment vehicles known as Regional Centers which are both privately and publicly run. To illustrate how quickly the EB-5 program has grown in the United States, the number of Regional Centers has increased from around a dozen in 2007 to more than 250 today, including at least one in every state.

While the public profile of the program has been marred by a small number of high-profile, soap-opera-like scams, the difficulties faced by applicants are in fact more mundane:  identifying profitable investment projects and creating 10 jobs. After a two-year waiting period, if an investment project fails to create 10 jobs, the foreign investor risks losing their investment and permanent residency in the United States.

Last year, the U.S. Citizenship and Immigration Services hired half a dozen economists to help evaluate the job-production claims, but many believe this added scrutiny has created a bottleneck in the approval process. The Association to Invest in the USA, which advocates on behalf of Regional Centers and industry service providers, recently noted a backlog of nearly 6,000 EB-5 petitions which are currently held up. At the low-end, assuming US$ 500,000 per investment, that’s potential for nearly US$ 3 billion and 60,000 American jobs.

Finding information about the number of deals in the pipeline is challenging. It has been reported that American businesses raised more than US$ 1.8 billion through the program in the fiscal year ended September 30, and over 7,500 would-be immigrants were issued visas. Interestingly, 80 percent of them were Chinese, a dynamic shift from the mere 25 percent just four years prior.

Time will tell how China defines its dream, whether it creates one of its own or simply adopts the American dream along with an American home. For now, Chinese investment in the United States can help boost the economy and put Americans to work. If it can stick to its founding principles and map out a clear long-term vision, the EB-5 program shows promise in helping both Chinese and Americans realize their dreams of successful and healthy local economies.