If you thought zaibatsus were creepy, if Singapore's brand of state-backed capitalism gives you the willies, wait until you see the Sino-foreign joint venture. The Russians, in their efforts to turn capitalist, have at least tried to break up some of the big state monopolies and privatize their enterprises - but since
China is still Communist, there's no reason for any of that nonsense. Instead, foreign companies form joint ventures with enterprises that are still part of the government - and, of course, everything is part of the government.
On every block you see an entrepreneur sitting at a sidewalk card table with one or two telephones, jury-rigged by wires strung down an alley, up the side of a building, and into a window. There is a phone book, a price chart, and a cigar box full of cash (in Shenzhen, always Hong Kong dollars). Some fastidious operators have a jar full of mysterious disinfectant with which they wipe down the mouthpiece and even the buttons after each customer is finished. Most of these enterprises also feature a queue of anywhere from one to half a dozen people. The proprietor will step in and cut long-winded customers off, especially if someone in the queue makes it worth his while.
All of the phone wiring is kludgey. It looks like everyone went down to Radio Shack and bought reels of phone wire and began stringing it around, across roofs, in windows, over alleyways.
Hundreds of wires explode from junction boxes on the sides of apartments, exposed to the elements.
I was checking out some electronics shops along one of
Shenzhen's wide avenues. Above the shops were dimly lit office spaces housing small software companies or (more likely)
software departments of Sino-foreign joint ventures. If there was a Chinese silicon valley, this was it. I wandered into analley - the Silicon Alley, perhaps - and discovered a particularly gnarly looking cobweb of phone wires. Paul Lau started taking pictures of it. Within moments, a couple of attentive young
Chinese men had charged up on bicycles and confronted him.
"Are you a reporter?" they demanded.
"No, I'm an artist," Paul said, leaving them too stunned to make trouble. The lesson I learned from this is that a sophisticated
Hong Kong Chinese knows how to use the sheer force of culture shock to keep his mainland cousins at bay. The Shenzhenese are pretty worldly by Chinese standards, but compared to the
Hong Kong Chinese, who may be the most cosmopolitan people on earth, they are still yokels. This cultural disparity is about the only thing Hong Kong has going for it as 1997 approaches; but more about that later.
Everyone has a pager. Expensive models have LCD screens that can display Hanzi characters. Cheap ones display a few digits.
If you have one of these, you carry a tiny chart listing a couple of hundred of the most common Chinese surnames, each one with a numerical code. When you're paged, you read the number off the screen and refer to the chart to find the name of the caller.
If you own stock on the Shenzhen exchange, you can cut a deal with your pager company that will cause the price of that stock to appear on your pager twice a day, at 10:00 and 4:00.
And the pager doubles as an alarm clock; your company will give you a wake-up page every morning if you request it.
Even people who carry cellphones carry pagers, which confused me until I found out that most of the cellphones I was seeing aren't really cellphones at all; they are CT2 phones, which are cheaper and operate over a much shorter range. On a CT2, you can call out but you can't receive calls, so you have to carry a pager. To cover a metropolis with CT2, tens of thousands of base stations would be needed. Coverage in Shenzhen is still spotty. When you see half a dozen young men loitering on the front steps of a building shouting into their prawns, you know there must be a CT2 station inside.
Roughly speaking, Shenzhen is the southern anchor of acrescent of development running along the vast semicircular region that bulges into the South China Sea. At the northern end of the crescent lies Shanghai, the largest city in China, and, until the Communist takeover, the only Chinese city that could compete in wealth and sophistication with Hong Kong.
Motorola runs one of the two cellphone networks in Shanghai.
The local chief is a young American named Bill Newton, who came here a few years ago with two other people and worked around the clock at first - like new immigrants, he says, who've just come to America and have nothing to do but work. Now he's managing 55 employees; he's the only American. He thinks everyone should want his job: "To be in one of the fastest growing companies in one of the fastest growing sectors of the fastest growing economy in the world - how many times in your life is that going to happen?" In the context of Shanghai, "fast growing" means, for example, that cellular phone service is growing at 140 percent a year and pager use at 170 percent a year.
Motorola's offices are in the international center west of downtown Shanghai - the modern, high-rise equivalent of the
Western enclaves where capitalists used to do business in the old days. It's got a Shangri-La luxury hotel, it's got modern offices identical to those you'd see in any big American city, it's got living quarters with purified water. Newton and I got in a taxi and took a long drive to the headquarters of the Shanghai
Post and Telecommunications Administration (PTA) - Mao Bell, if you will.
Driving in Shanghai is like shouldering your way through the crowd at an overbooked trade convention. There's never any space in front of your vehicle that is large enough to let you in, so you just ooze along with the traffic, occasionally claiming a few extra square yards of pavement when the chance presents itself. I'm hardly the first Westerner to point this out, but the density of bicycle and foot traffic is amazing. I'm tempted to write that the streets are choked with bicycles, but, of course, the opposite is true: All those bicycles are moving, and they're all carrying stuff. If the same stuff was being moved on trucks, the way it is in, say, Manhattan, then the streets would be choked.
Everyone is carrying something of economic value. Eviscerated pigs slung belly-up over the rear tire; bouquets of scrawny, plucked chickens dangling from racks where they get bathed in splashed-up puddle water; car parts, mattresses, messages.
In network jargon, the Chinese are distributed. Instead of having One Big Enterprise, the way the Soviets did, or the way we do with our Wal-Marts, the Chinese have millions of little enterprises. Instead of moving stuff around in large hunks on trucks and trains, they move it around in tiny little hunks on bicycles. The former approach works great in say, the
Midwestern US, where you've got thousands of miles of nearly empty interstate highways and railroad lines and huge chunks of rolling stock to carry stuff around. The latter approach works in a place like Shanghai.
The same problems of distribution arise in computer networks.
As networks get bigger and as the machines that make them up become more equal, the whole approach to moving information around changes from centralized to distributed. The packet-switching system that makes things like Internet work would be immediately familiar to the Chinese. Instead of requisitioning a hunk of optical fiber between Point A and Point