Master Builders Western Australia — May-June 2017

Lessons from China

I recently visited China for the fi rst time on
a 10-day tour of Beijing, Xi’an, Suzhou and
Shanghai. It is a remarkable country which
is undergoing an incredible transformation in
its economy.

The distance from Sydney to China is over
10,000 kilometres so it is an exhausting fl ight
but very worthwhile. Beijing is the political
capital and hosted the country’s annual
government congress while we were there.
This probably explained why there were more
security personnel positioned on the streets
and why the smog was less than usual.
Apparently, the government has the power
to regulate the output of the coal mines and
industrial plants which generate the pollution
close to Beijing.

The Great Wall in northern China is the longest
wall in the world (over 21,000 kilometres)
and is an amazing piece of infrastructure. It
was built over two thousand years ago to
prevent invasions across diffi cult terrains, and
provides tourists with a useful insight into
China’s history.

With the world’s largest population of about
1.3 billion people, China has developed
an array of policies and infrastructure to
accommodate and move its people. Three
and four lane freeways with tolls have been
constructed, including tunnels through
mountains and under rivers. Dedicated bus
and bike lanes, often separated by barricades,

separate mainstream

traffi c and enhance

movement. I have

never seen such

a variety of motorised

bikes in my life,

many carting lengthy

and heavy building

materials through

busy city streets.

I was told that China

has relocated more

than 50 million

people from rural

communities to

urbanised areas over the last three years.

If this is true it is extraordinary. Travelling on a

high speed train at nearly 300 kilometres per

hour, you often saw groups of 8-20 multi-

storey residential towers in the middle of

fl at agricultural areas. Many of these towers

appeared to be empty or not quite complete.

There are hundreds of towers and other

cranes throughout the metropolitan area with

some projects working well into the night with

concrete pours and excavations.

Apartment living is the norm in the metropolitan

areas. Home ownership is an aspirational goal

before starting a family even though most

properties only provide the ‘owners’ with a

99-year lease. Grandparents and parents

generally provide their family members with

fi nancial support for a deposit and loan

repayments in anticipation of reciprocal

support during their old age.

Minimum wages in China have increased

13 per cent per annum over the last three

years which has created problems for the

manufacturing industry which competes

with Bangladesh and other under-

developed countries.

The Chinese government meets at a congress

each year and formulates a fi ve-year plan

which sets out its major objectives. The focus

of the current fi ve-year plan is to improve

infrastructure such as roads, the transport

system and hospitals as well as to reduce

pollution which is very noticeable when

you go up an 88-storey building to get a

panoramic view.

The one child policy is still used to reduce

population growth but has several exemptions

for minority groups.

Shanghai is the business capital of China and

is a very modern and attractive city; particularly

colourful at night.

Although relatively few Chinese are conversant

with English they are friendly and respectful.

Their pride in keeping their footpaths and

public toilets clean is a credit to them. No

graffi ti to be seen in this country.

Australia can learn a lot from China in how it

is transitioning its economy on such a large

scale. But there are many things we take for

granted in our own country such as our clean

air, pristine beaches, relaxed lifestyle, beautiful

weather, well maintained roads and quality of

housing. Learning from other nations is useful

but preserving our unique living standards is

also important as we evolve into a more multi-

cultural society.

Michael McLean

Acknowledging the support of our 2017 Partners:

Insurance Partner

Michael McLean

Director

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SPOT THE DIFFERENCE.

6 FOREWORDS director’s fi le

MAY–JUNE 2017