Saturday, June 6, 2009

Car Culture

A Chinese company placed a bid on GM's Hummer brand this week.

The New York Times' "Week in Review" has a nice summary and analysis about his situation:

Image from China Daily

Even in a world mostly done being amazed by the ironies of globalization, last week managed to produce something fresh and previously unfathomable: General Motors, newly bankrupt and struggling to raise cash, agreed to sell its Hummer division to a company from China.

Yes, that Hummer, maker of the famously gas-guzzling behemoths whose menacing width and armor trace their provenance to the American military, is now set to become the property of Sichuan Tengzhong Heavy Industrial Machinery Company, in a land officially still called the People’s Republic of China.

It might seem incongruous, this plaything for the unabashed American road warrior shifting to a country where the bicycle once ruled and collectivism was an organizing principle. (What next? Harley-Davidson snapped up by the Vietnamese?) But that’s just until you contemplate the realities of modern China, and the nouveau riche in the growing suburbs, setting down lawn furniture inside gated complexes of villas, shopping at big-box stores and driving luxury cars. China seems intent on nurturing the very sorts of landscapes and consumer attitudes that produced the Hummer.

More than a merely economic event — the latest sign of China’s rise and American struggles — the deal is a cultural moment. It seems no accident that a Chinese company is taking possession of Hummer. China has come to embrace many of the attributes and modes of consumption that Americans may reflexively consider their own, complete with the sprawl and tangle of highways familiar to any resident of Los Angeles or Atlanta.

As China has cast off its ideological past and aggressively modernized its cities, it might reasonably have been expected to look to Europe or Japan for models of urban planning. Like Japan — home to one of the most sophisticated rail networks on earth — China is densely populated and dependent on imported oil. As is true in Europe, China’s major cities are surrounded by productive agricultural lands, making tightly clustered growth seem prudent.

Instead, in a choice familiar to Americans, China has put the automobile at the center of contemporary life. China has torn down older buildings in every major city to make way for more vehicles. It has erected an impressive network of highways crisscrossing the vast country. Air quality and energy efficiency have been outweighed by reverence for the car.

This has not happened randomly.


Read On
Later on in the article, the writer talks of an interesting exchange that he had with a car-buyer in Beijing.
“Why do you want a car?” I asked a young professional couple shopping at a car lot outside Beijing in 2002. The question elicited an irritated glare from the woman, as if I were condescending. “Same reason you want a car,” she said. “We want what you want.”

She did not mean merely the ability to go where she pleased, but also the geography the car enables — the villas with their backyards and modern conveniences; the superstores selling microwave-ready food; the new golf courses.
The American dream of the freedom of car ownership seems to be taking root in China. I agree with the author here; buying and owning a car is a dream come true for Chinese people.

One of the interesting things highlighted in this article is China's conscious decision to mimic America's car culture and dependence on individual car owners. China could've tried developing like Japan or Europe, but instead is choosing to follow the path laid out by their American counterparts.

Will China ever achieve suburbal sprawl on the scale America has achieved? I doubt it, but it's important to remember that China, despite its huge population, is not that crowded or dense. Sure, Chinese cities are packed full of people. But the outskirts of those cities contain vast swaths of uncultivated land. There is a lot of room for sprawl in China.

My city, Xi'an, is moving out a very rapid rate. If you go a couple miles outside of the city in any direction, you will be met by development. Past those construction projects, you will encounter fields and fields, which will, in coming decades, be developed more and more.

In terms of potential climate change and humanity's dependence on oil, the prospects of the hundreds of millions of cars that could one day be clogging China is scary. But as an American, it's hard for me to argue that they should avoid this path.

Car ownership is amazing. I can sit here and talk about the reasons why its bad that China goes down this path. But in the end, I miss having the car I had in America and the opportunities - the ability to get across town, the state, or the country quickly and comfortably - it provided for me.

Rationally, it'd probably be good for China's long-term interests to try to develop new urbanism, but it has the right to do otherwise. Personally, I'm interested in the concepts of urban living based on not owning a car. And in the future, a city or town in America that isn't completely dependent on cars is a very attractive sounding idea to me.

But I can understand how and why car ownership is appealing to Chinese people. And even if I couldn't, barring an energy collapse, I don't see how or why the Chinese could be convinced not to go down the path of encouraging car ownership.

Friday, June 5, 2009

Cheating Crackdown

A few days before Chinese students' make-or-break 高考(college entrance exams), China is very serious about curbing cheating this year.

From Xinhua News:
"

BEIJING, (Xinhua) -- As millions of Chinese students gear up for the national college entrance examination, education and police authorities Thursday issued stern warnings against cheating.

The Ministry of Public Security has instructed police departments across China to make detailed plans to ensure the security of the exam, which falls on June 7 to 9 each year.

The police would be on high alert for any cheating, such as the use of electronic devices by both students and people outside the exam site to exchange questions and answers, said a statement from the ministry.

The Ministry of Education Thursday announced four investigations that involved the production and sale of devices to be used during the exams, using them as a warning.

The police in northeastern Jilin Province uncovered four underground workshops late last month, where more than 100 sets of devices were found. At least seven people involved were detained.


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In addition to investigations and raids, the crackdowns are also getting high-tech.

From the BBC:
In China, video cameras are being installed in almost 60,000 examination halls to prevent cheating in next week's national college entrance exams.

In the past, some students have been caught using hi-tech equipment, including tiny radio receivers, to get help with exam questions.

For three days next week, more than 10 million Chinese students will sit exams to determine their college entrance.

The exams are seen as potentially life-changing and the competition is fierce.

Some students have been using increasingly sophisticated cheating methods to get ahead.


Read On
It's easy to chide the ring-leaders of these cheating circles and the cheaters themselves for being immoral and tainting the Chinese tests. But I think one should really look at the system before one throws all of the blame on the cheaters and the people helping them.

If Americans think that the SATs are stressful, that test is nothing compared to the 高考. Honestly, one's entire future is determined by these tests. Students' future universities are largely chosen for them and their majors are largely influenced by their exam mark. If one gets a poor score, he or she can forget about going to a good university. No matter how good his or her grades in school were.

While cheating is obviously wrong, it's easy to see why young teenagers with tons of pressure on them (largely because they are single children) would resort to cheating to get a good mark on the exam.

America, which traditionally has not had that strong of an influence on testing, has started going this testing route in recent years. I'm very discouraged by this trend.

Maybe it is the philosophy major in me talking (my college career mostly consisted of writing essays), but I believe training students to be test takers is a very narrow-minded and depressing view of education.

Wednesday, June 3, 2009

Blank Space

I'm too paranoid to be outspoken on the most controversial topics surrounding Communist China. Holding this stance often limits me from talking about important things going on in the country, unfortunately. Today is one of those days where I choose to bite my tongue.

Go out on the 'net to find info about why today is significant. This would be a great place to start. And for some sights and sounds, check out the feature at the top of this page.

In lieu of saying anything more, I'll end today's post with this...




















-

Tuesday, June 2, 2009

Photos of the Week - The Flooding of The Yangtze

In the Summer of 2006, I took a cruise from Chongqing to Yichang via the famed Three Gorges. It was a pretty cool trip.

At the time I was there, the dam had not pushed the water to the level that it is now. I'm glad I saw the area before the water-level was its final 175 meters. The gorges were a bit taller and more dramatic and there were a few instances where I could see what would eventually be consumed by the time 175 meters was achieved.

Here are a few photos highlighting the water-level and its eventual rise:





Monday, June 1, 2009

The Challenge of Fuel-Efficient Cars

As China gets richer, its people would like to have more comfortable cars.

From Reuters:

Image from Lamarguerite.wordpress.com

BEIJING (Reuters) - China's energy policymakers have lately been thinking a lot about drivers like 24-year-old Cindy Chen, who chose a larger German Opel over smaller, more fuel-efficient models when she bought her first car in March.

Like many motorists of the "single child" generation -- kids of baby boomers born in the 1950s -- Cindy is showing early signs of an American-style auto affair, heedless of Beijing tax breaks meant to encourage sales of smaller cars, whose market share grew to over two-thirds of all new car sales in the first quarter.

"Daddy bought it for me, so why not a big one?," said Cindy, a lawyer with a local government office in eastern Ningbo city.

But she will have fewer incentives to drive the way her American counterparts do after policymakers on Monday raised diesel and gasoline prices by 6 and 7 percent respectively, the second increase this year but the biggest since last June.

While some criticized it as a half-measure that barely matched half of the recent rise in global crude oil costs, the increase takes gasoline prices to near their peaks last June, in stark contrast to U.S. prices that are half last summer's highs and are now about 40 percent cheaper than Chinese pump rates.

Early anecdotal evidence suggests the shock of steadily rising prices this year may be causing car-owners to think twice before hitting the road after five years in which authorities sought to cushion the blow for consumers, adding to demand.

"I never really thought about petrol cost before. My panic about oil prices started last summer... Now my pay has not increased but oil went up again. I will certainly start to plan for driving nowadays, like a car pool if driving long distance," said Zhang Yun, who drives a 2.7-liter Hyundai Tucsan.

At stake is nothing less than the outlook for global oil prices, which have rallied in part on hopes for a sustained recovery in demand from No. 2 consumer China, where gasoline use has led the pick-up in consumption seen in recent weeks.


Read On
This discussion of Chinese gasoline prices reminds me of a blog post I read a few weeks ago from the relatively new and popular China blog - China Smack. Here is what a blogger there had to say about China's gas prices:
The above is States Average Gas Prices is “United States average gasoline prices”.

For example: Wyoming state 1.753, Wyoming (unit should be USD/gallon?)

If we use the foreign exchange rate I just checked: 1 USD = 6.8311 yuan RMB

And 1 gallon = 3.785 liters

Conversion (U.S.) price: ?

1.753 USD * 6.8311 / 3.785 liters = 3.16 yuan RMB / liter (American gasoline price)

According to what netizens have said today, Yichang’s 93 octane gasoline is approximately 5.20 yuan/liter??

Yichang (it is said that Beijing, etc. are even higher) gasoline prices compared to Wyoming state is higher by %
(5.2-3.16) / 3.16 * 100% = 2.04/3.16 * 100% = 65%! ! ! !

Our gasoline prices per liter is 2.04 yuan higher than the United States, exceeding 65%!!!

And they do not have grade one, grade two road fees, bridge fees, highway fees…

And their average wages are perhaps 10 times our average wages…


Read On
Obviously, this guy was not happy about the gouging he was feeling at the pump.

The only problem I have with the calculations done above is that taking Wyoming's gas prices may not be the best indicator for America's prices as a whole. Wyoming, in America's mountain west, has the lowest population of the entire country. Even lower than Alaska. So the prices in rural Wyoming are going to be lower than those in more populated areas.

But overall, the price of Chinese gasoline compared to American prices are way higher. But I also remember from studying abroad in Europe in 2003 that Europe's gasoline prices are also significantly higher than America's.

So this leads me to the question: is it really fair to compare China's gas prices to America's? Instead of China's prices being "too high," are America's prices "too low?"

Doing a quick Google search, I found this list of the countries with the most and least expensive gasoline prices in the world as of last summer. The results of the prices from major cities within the country, from promotionalcodes.org.uk, are interesting:
Most Expensive Countries
1. Oslo, Norway - $9.85/gallon
2. Paris, France - $9.43/gallon
3. Copenhagen, Denmark - $9.24/gallon
4. Rome, Italy - $9.03/gallon
5. London, England - $8.96/gallon

Least Expensive Countries
1. Caracas, Venezuela - $0.12/gallon (!!!)
2. Tehran, Iran - $0.41/gallon
3. Riyadh, Saudi Arabia - $0.47/gallon
4. Kuwait City, Kuwait - $0.92/gallon
5. Cairo, Egypt - $1.24/gallon
These prices were from when gasoline was at an all-time high last summer. So the prices will be off compared to what they are now. But I imagine that the rankings are still fairly similar. China and America aren't at the top or bottom of the world's prices. Although it does appear obvious from the China Smack calculations that America is more setup for "happy motoring" than China is.

With GM and Chrysler now bankrupt, the days of Americans truckin' around in SUVs may very well be over though.

There was an intelligent discussion of Detroit's bankruptcies on NPR's podcast "Planet Money" the other day. Frank Langfitt, an NPR correspondent, was present at the Chrysler bankruptcy hearings this past week. He had some really interesting insights on what is going on with the government's take over of Detroit.

Indeed, the American car industry as we knew it is long gone.

I'm going to transcribe a couple of the key points, but I really recommend that you listen to it for yourself here.

From a discussion between Laura Conaway and Frank Langfitt on the Planet Money podcast:
Langfitt: Now what the government always says is, "We don't want to run this company. We want auto executives to do it." At the same time, let's take a look at that Fiat deal. One of the things they said to Fiat is, "It you want another 5% stake in Chrysler, you're going to have to deliver a 40 mile per gallon engine in the United States."

Conaway : So the Obama administration is directly saying to Fiat that you can have some more of Chrysler, but you've gotta give us a car that does like this on the road?

Langfitt: Exactly. So you can say publicly, as the president has, we're not going to dictate policy, but you already have the White House saying, "If you want X, you're going to have to deliver Y," and Y is a very fuel efficient engine, which is what the government's policy is towards oil and part of its energy policy and part of its automotive policy. So, it's very hard to divide this up when you have a government that has other political agendas that are related to the car industry.

Conaway : And let's talk for a minute about those agendas because government comes with one set of goals - more fuel efficient cars, maintaining the employment rate or getting the unemployment rate down in places like Michigan and Ohio, nobody in those places want to see the auto industry go away. But a profit-making company like Chrysler comes at things from a very different set of goals. First and foremost has to be, by law, maximizing profit.

Langfitt: Absolutely.

Conaway : How do you reconcile those?

Langfitt: It's going to be fascinating. This is going to be one of the big meta-stories of what's happening with the auto industry because if you talk with people in Michigan, they say smile and just nod their heads when Obama says anything. They say, "Sure boss, we'll do whatever you want." But they say it's been very difficult traditionally for those companies to make much money on small cars. The profit margins are very narrow. People perceive, rightly, that Toyota and Honda are better at making them. And so they're concerned about these fairly significant fuel standards and that they're going to have to make small cars that they can't make money off of, which would run counter to the tax payers' interest, which is getting some kind of return on the money we've put into these companies. So in some ways, these things can be very much at odds and how it plays out is going to be fascinating.
The discussion continues. It is really great. I just can't be bothered transcribing any more of it. This section was the most interesting to me anyways.

This contradiction between profitable cars and cars that the Obama administration wants the companies to produce is incredible. I can see where Obama is coming from. It is in America's best interest to get away from its oil addiction and try to drive smaller cars. Yet it is hard to see how the companies that the US is now gobbling up are going to be able to sustain themselves on such cars.

There are no clear answers as to how the collapse of the US auto industry can or will be reconciled. What happens over the coming months and years is going to be remarkable to witness.