Say What? A Quick Primer on Chinese Tones and Dialects

There is no way around it: Chinese is hard. There really is no substitute for learning Chinese than moving to China and completely immersing yourself. Still, if you regularly do business with China, it is good to at least know some of the basics of the language and appreciate why it can be so darn hard to master.

The difference between Mandarin and Cantonese

First of all, there are many different dialects and versions of the spoken Chinese language. A common misperception by foreigners is that the dialects are much like variations in accents, such as the difference between a Michigander’s accent and an Alabaman’s. The dialect differences in China are much, much more severe than this. Practically each province, even down to each local city or village, has a different local dialect. Typically, these dialects are unintelligible from one another. For example, someone from Hunan province would not be able to understand someone speaking in the local Sichuan dialect of Chinese.

Luckily, the playing field has been leveled a bit due to the pervasiveness of Mandarin Chinese, which is known as the “common Chinese language,” and is the official language of Mainland China. Another widely spoken “version,” also often referred to as a “dialect,” is Cantonese. It is mostly spoken in the southern part of China, mainly in Guangdong province and places like Hong Kong. Historically, many Chinese that immigrated to America were from Canton, and so many Chinese speakers in the United States come from a Cantonese background.*

As the official language, Mandarin boasts close to 1 billion native speakers. In my experience, native Cantonese speakers are usually also able to understand and speak Mandarin, as opposed to the other way around. I personally learned to speak Mandarin, as do most people that study Chinese. Generally, when a someone says “I am learning Chinese,” they almost always are referring to Mandarin.

How Tones Make You Sound Foreign in China

The trickiest thing about Chinese is the tones. Tones are key to attaching specific meanings to sounds in the Chinese language. The Cantonese dialect operates on nine different tones, whereas Mandarin only has five. The most frustrating problem for English speakers trying communicate in Chinese is that often they can remember and say a word phonetically correctly, but if the tone is wrong, their message might not get across.

I’m not going to go into how to master the tones too much as there are plenty of tutorials online that give you the basics, such as on ChinesePod. If you don’t have any plan to try to speak Chinese fluently, you don’t have to worry about it too much as people can understand your simple phrases. But what you should at least know is that pronouncing these words with the wrong tones is similar to when you hear a non-native English speaker speaking English with the wrong pronunciation. I.e., saying “ni hao,” the Chinese word for “hello,” with the wrong tones is like when you hear someone say “Sank You” as opposed to “Thank you.” You understand the meaning, but you know it sounds funny.

Understanding You Sound Foreign is a Good Thing!

Surprise, surprise, this works both ways! You sound foreign in China! A humbling reality, no doubt, but once you admit and understand it it can be an enormous source of personal growth. I believe accepting this reality makes it easier for you to do business in China as you can better understand and empathize with your Chinese counterparts. Chinese people truly value people with humble attitudes, and admitting you sound foreign sure helps the humble part of your persona come out. Additionally, back at home in America, it will make you more sympathetic to immigrants and other foreigners that struggle to speak English correctly.

Sank You For Reading! Now, go and embrace the foreigner in you by learning a few Chinese phrases and dare to use them wrong!

*I edited this from a previous version of this article, in which I referred to Mandarin as an “overarching dialect.” That is not really true, as Mandarin is the common Chinese language. Other versions, like Sichuanese, Hunanese, etc., are by definition “dialects of Mandarin.” Cantonese is a bit trickier because it is so widely spoken again and has many more tones than Mandarin Chinese, though it is most often referred to as a “widely spoken dialect.”

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.

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.

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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.