Fight or go shopping? China and America can’t decide

LOS ANGELES–It’s been a long time since China and the US were as close as lips and teeth. When Chinese president Xi Jinping arrives in Washington, D.C. later this week he will find barely disguised outrage over Beijing’s suspected cyber attacks, its terraforming in the South China Sea and the recent mass incarceration of human rights activists.

For its part, China is utterly convinced the US is pursuing a policy of containment. In a recent Harvard University study, former Australian prime minister and China scholar Kevin Rudd summarized Beijing’s concerns in five bullet points: “to isolate China, contain it, diminish it, internally divide it and sabotage its political leadership.”

David Lampton, a professor at Johns Hopkins University’s School of Advanced International Studies believes Beijing and Washington are approaching a fork in the diplomatic road. “Our respective fears are nearer to outweighing our hopes than at any time since normalization,” he said.

Chinese tourists at Universal Studios in Hollywood

Chinese tourists at Universal Studios in Hollywood

Well, perhaps. China’s currency devaluation and the plummeting Shanghai stock exchange might presage a weakened global economy. Maybe five Chinese warships off the Alaskan coast and US military advisers dispatched to the Philippines really means winter is coming. But out here in California, where nearly 15% of the population is Asian, it’s still Indian Summer and geo-strategy and political bluster take a back seat to a boom in trans-Pacific travel and investment.

There were no discouraging words voiced at a recent US-China Travel Leaders Summit in Los Angeles. Presentations focused on the growing numbers of Chinese traveling overseas and the vast amounts of currency they are spending.

Devaluation may have affected yen and euro traders, but in the US, where the renminbi is pegged to the dollar, the yuan has lost only 0.8% of its value and devaluation has had no discernible impact on Chinese travel or leisure spending. “Every Chinese tourist who comes to America spends between $6,000 to $7,000 on average,” said Michael Merner, the Asia-based Managing Director of Brand USA, a public-private partnership created to promote America as a destination. “Our research shows that Chinese travel to the US with the intention of spending 19% of their take-home pay. Chinese account for 25% of the global spending on luxury goods.”

The reciprocal increase in travel between the US and China results from a November 2014 agreement between Barack Obama and Xi Jinping that allows citizens of both countries to receive a ten-year visa to the other. Since the agreement was signed ten months ago, about 2.3 million tourist visas to the US have been issued in China – one quarter of the global total. Demand for visas is so strong that the US State Department recently dispatched 300 temporary duty consular officials to China to process the flow of paper. According to the National Travel and Tourism Office in Washington, D.C., Chinese arrivals to the US will double by 2019 to more than 5,000,000.

America’s large cities and its National Park Service are gleefully gearing up for the influx. In Los Angeles, the China-Ready Program prepares hotels, restaurants, markets and museums to be good hosts. To receive the China-Ready designation businesses must print guest information in Chinese, accept China UnionPay credit or debit cards and offer amenities such as slippers, hot water and Chinese tea in guest rooms. The city also encourages hotels to employ a Mandarin-speaking staff, offer Chinese language newspapers and to have a Weibo or WeChat social media account.

image1“China is our top priority and we want to make Chinese visitors feel comfortable,” says Kathryn Smits, the Los Angeles Tourism & Convention Board’s Vice President of International Tourism. “We hope to make shopping easy and if that shopping includes a rental property or second home so much the better.”

Beijing may not want “Western influences” creeping into its society but it welcomes American visitors and encourages them to explore beyond Beijing, Shanghai and Guangzhou. “China has hundreds of beautiful villages, many of then 2,000 years old,” says Li Jinzao, Chairman of the China National Tourism Administration, “and we are busy improving facilities so they can welcome foreign guests.”

Based on presentations made to American travel agents and suppliers, China is serious about spreading its Western tourism bounty to rural areas. Hebei, Jilin and Xinjiang, an area that once required a special permit to visit, were the provinces China chose to feature. “You must buy our frog ovary oil when you come to Jilin,” confided provincial tourism director Zhao Xiaijun. “It makes all women prettier.”

image2Difficult issues will continue to divide China and the US, but in the future problems may be easier to resolve because of the growing number of links between the countries. Every week, 340 wide-bodied aircraft have the capacity to carry 24,000 passengers between the US and China. Seven gateway cities in China now connect directly to 13 US destinations. Despite a 35% increase in airlift capacity from China to the US this year alone, new flights continue to be added on a monthly basis. Demand is so vast that traffic is expected to triple by 2021

This is good news for people like LA Tourism Board president Earnest Wooden who admits “ten years ago, China barely registered in our data base. This year, 686,000 Chinese will come to LA and spend $1.2 billion,” he smiles. “That makes China No. 1 in our book.”

Former Asia Times correspondent David DeVoss now heads the East-West News Service (www.eastwestnewsservice.com) in Los Angeles

(Copyright 2015 Asia Times Holdings Limited, a duly registered Hong Kong company. All rights reserved. Please contact us about sales, syndication and republishing.)



Categories: Asia Times News & Features, China

Tags: , , , , ,