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City's expats find virtue in thrift as they confront the economic downturn
By Zou Huilin |
April 21, 2009, Tuesday
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Print Edition
Print Edition
THE financial downturn has required some adjustments for the tens of thousands of people who make up Shanghai's expatriate community.
Xinhua caught up with some of these expats to see how they're coping.
The interviews were conducted with Choe Peng Sum, chief executive office of Fraser Residence Shanghai, a 272-unit serviced-apartment complex; Ali Hasnein of India, who works in shipping; and Joris Zylberman of France, a freelance writer.
Many foreigner residents in China's economic powerhouse are finding virtue in thrift.
"We've been asked many times why we dared to start a business in the face of the financial crisis," Choe said yesterday.
"The crisis has changed the living habits of senior foreign executives in China, and serviced apartments are an adaptation toward such a change," he explained.
The downtown complex, which opened a week ago, is within a few minutes' walk of the local offices of IBM, Apple, ABN AMRO and many other multinationals, whose high-level executives comprise the building's target market.
Choe said most multinationals have cut housing expenses for expats in Shanghai, though they still want to maintain a presence in the China market.
"A new organizational structure - project teams made up of three to five managers who stay in China for three to six months - is replacing the long-term expats, especially for companies in the information technology and financial sectors," Choe said.
Instead of renting a high-priced villa for expat professionals, companies might opt for a serviced apartment. A 60-square-meter one-bedroom flat at Fraser, for example, costs 17,500 yuan (US$2,566) a month. The complex is about two-thirds occupied.
For India's Hasnein, the financial crisis led to a decision to downsize the office of his JINF Shipping and Forwarding Co, which he runs with a friend. The firm has 15 Chinese employees.
"Of course, I feel the huge impact of the financial crisis," Hasnein said. "China's exports have suffered a great downturn. Exports are closely related to the shipping and forwarding businesses, so I have lost a lot of business. The value of my contracts is only half that of last year."
He and his partner rented a new office half the size of their old one, saving "thousands of yuan per month." In addition, staff bonuses for 2008 were cut by 30 percent.
"We determined we'd go through the crisis hand in hand," Hasnein said. "We won't fire anyone, because it is hard to find high-quality talent."
There's also been a big change in his personal live as well. Hasnein is a newlywed and was ready to have a baby. "But the recession made me and my wife change our plans."
Hasnein said Shanghai is a wonderful city, but not a cheap one. "The average cost of sending a child to the international school in Shanghai exceeds US$2,000 dollars a year," he said.
Not all of Shanghai's expats have had to make major lifestyle changes. Some weren't earning much to begin with, such as those working in the news media or teachers.
France's Zylberman does freelance work for Radio France International. He said that media incomes have never been very high, so his pay did not shrink when the crisis hit.
"When I became a freelancer, I quickly realized that I would not make much, but I love working in Shanghai," he said. "I like the city very much, partly because I am Jewish."
Shanghai was a refuge for more than 30,000 Jews during World War II, and Zylberman's mother often talked of that era.
"Moreover, the crisis has presented many topics for reporting, " he said. "Although living conditions are not as good as in Paris, there is a lot of news worth reporting. The whole world is watching China."
(The author is a writer at Xinhua.)
Xinhua caught up with some of these expats to see how they're coping.
The interviews were conducted with Choe Peng Sum, chief executive office of Fraser Residence Shanghai, a 272-unit serviced-apartment complex; Ali Hasnein of India, who works in shipping; and Joris Zylberman of France, a freelance writer.
Many foreigner residents in China's economic powerhouse are finding virtue in thrift.
"We've been asked many times why we dared to start a business in the face of the financial crisis," Choe said yesterday.
"The crisis has changed the living habits of senior foreign executives in China, and serviced apartments are an adaptation toward such a change," he explained.
The downtown complex, which opened a week ago, is within a few minutes' walk of the local offices of IBM, Apple, ABN AMRO and many other multinationals, whose high-level executives comprise the building's target market.
Choe said most multinationals have cut housing expenses for expats in Shanghai, though they still want to maintain a presence in the China market.
"A new organizational structure - project teams made up of three to five managers who stay in China for three to six months - is replacing the long-term expats, especially for companies in the information technology and financial sectors," Choe said.
Instead of renting a high-priced villa for expat professionals, companies might opt for a serviced apartment. A 60-square-meter one-bedroom flat at Fraser, for example, costs 17,500 yuan (US$2,566) a month. The complex is about two-thirds occupied.
For India's Hasnein, the financial crisis led to a decision to downsize the office of his JINF Shipping and Forwarding Co, which he runs with a friend. The firm has 15 Chinese employees.
"Of course, I feel the huge impact of the financial crisis," Hasnein said. "China's exports have suffered a great downturn. Exports are closely related to the shipping and forwarding businesses, so I have lost a lot of business. The value of my contracts is only half that of last year."
He and his partner rented a new office half the size of their old one, saving "thousands of yuan per month." In addition, staff bonuses for 2008 were cut by 30 percent.
"We determined we'd go through the crisis hand in hand," Hasnein said. "We won't fire anyone, because it is hard to find high-quality talent."
There's also been a big change in his personal live as well. Hasnein is a newlywed and was ready to have a baby. "But the recession made me and my wife change our plans."
Hasnein said Shanghai is a wonderful city, but not a cheap one. "The average cost of sending a child to the international school in Shanghai exceeds US$2,000 dollars a year," he said.
Not all of Shanghai's expats have had to make major lifestyle changes. Some weren't earning much to begin with, such as those working in the news media or teachers.
France's Zylberman does freelance work for Radio France International. He said that media incomes have never been very high, so his pay did not shrink when the crisis hit.
"When I became a freelancer, I quickly realized that I would not make much, but I love working in Shanghai," he said. "I like the city very much, partly because I am Jewish."
Shanghai was a refuge for more than 30,000 Jews during World War II, and Zylberman's mother often talked of that era.
"Moreover, the crisis has presented many topics for reporting, " he said. "Although living conditions are not as good as in Paris, there is a lot of news worth reporting. The whole world is watching China."
(The author is a writer at Xinhua.)
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