China MTSE 2014 - Post Trip Report. In May of 2014, I had the pleasure of participating in a business and economics college term in China. We visited Hong Kong, Macao, Shanghai, Xi'an, and Beijing. This is an informational presentation detailing facts and figures from each city we toured.

1. CHINANick Jones Alvaro Gonzalez Mike Hopkins Michael CarmazziThorne Warner
Cultural, Political, and Economic Observations and Differences of China compared to the United States
MTSE 2014

3. •Hong Kong was originally a colony of the British Empire. •Hong Kong remained a part of the British Empire until 1997. •Hong Kong is a special administrative Chinese region because no changes will take place there within the next 50 years. HONG KONG

4. HONG KONG

5. •The people of Hong Kong have better accessto the east and western cultures of China. •Hong Kong has the highest population density in the world•Hong Kong does not follow standard Chinese traditions. •The demographic of Hong Kong is composed of Cantonese, Chinese(mainland), British, Indianand Jewishnationalities. •Cantonese is the main language in Hong Kong. •Hong Kong government adopted a trilingual policy in 1997. (Chinese mandarin, Cantonese and English). HONG KONG CULTURE

6. •Chinese Lunar New Year, ChingMing Festival (Qing Ming Festival) and Mid-Autumn Festival. •Good Friday, Eastern Monday, Christmas Day and other western festivals. •Taoism, Buddhism, Christianism, Islam and other religious beliefs. Taoism and Buddhism are the most common in Hong Kong. HONG KONG CULTUREHolidays & Religious Belief

7. HONG KONG CULTUREHolidays & Religious Belief

8. •The people of Hong Kong are more economically free than ever before (2014) •The minimum wage salary is $800 USD per month•People have trade freedom, investment freedom and financial freedom•The high level of labor freedom provides a solid economy•Hong Kong is open to international commerce with a 0 percent average tariffand few barriers to foreign investments•There are no restrictions on foreign banks and they have mutual treatment with foreign and local banksHONG KONG ECONOMY

9. •The Basic Lawis a constitutional document which says that Hong Kong is an autonomous special administrative region of the People's Republic of China, except in defense and foreign affairs. •The Basic Law guarantees that autonomy for 50 years and create a system of governance that is imposed by a Chief Executive and Executive Council. •The Chief Executive is the head of the Hong Kong Region. This person is responsible for implementing the Basic Law, promulgating laws, manage budget and making decisions on government policies. •Executive Council assists the Chief Executive on matters relating to the introduction of bills and subsidiary legislationHONG KONG POLITICS

10. HONG KONG POLITICS

11. •They have similar economic practices, such as, trade freedom, investment freedom and financial freedom. •The minimum salary is $800 USD in Hong Kong and $1785 USD in USA per month. •They have different religions beliefs, such as, Taoism and Buddhism are the most commonin Hong Kong and; Christian and protestant are the most common in USA•They have free speech•They have differences in political system. USA has a solid democratic system and Hong Kong does not. The Government of the Hong Kong SAR (Special Administrative Region) is composed by the Chief Executive, Executive Council and members of mini parliament. All are dominated by small circle of pro-Beijing elites. People would prefer to have a democratic system there. HONG KONG VSPOLITICS

12. The LAS VEGAS of the Far EastMACAU

13. •Cultural Name: Macanese•In China’s southern Guangdong province, it was a Portuguese colony until 20 Dec. 1999•Foundedin 1557. •The name Macauis derived from the Chinese A-ma-gaoBay of A-Ma •A-mawas the name of a Chinese goddess, popular with the Chinese seafarers and fishermen•Now, Macau is a special administrative regionwithin the Peoples Republic of China •Agreed to recognize the city’s special social and economic system for a period of fifty yearsMACAU CULTURE

14. MACAU CULTURE

15. •The basic lawof the Macau Special Administration Region of the Peoples Republic of China is the constitution of Macau•Macau has special administrative region status, which provides constitutional guarantees for implementing the policy of “one country, two systems”. •Macau functionsdirectly under the Central Government of China in Beijing, which controls the foreign affairs and defense of Macau but otherwise grants the region “a high degree of autonomy.” MACAU POLITICS

16. •GDP-43.6 Billion (2012) •Population-600,000 (95% Chinese, 3% Portuguese, 2% Mixed) •Considered an economic bridgefor mainland china•Growingextremely fast with a 20% increase in revenue from 2012- 2013 (Gambling GDP-38 Billion-45 Billion) MACAU ECONOMY

17. •Both had reputations of struggling with prostitution, crime, andmoney laundering•Population is the same give or take a few thousand people (600,000) •While Macau trumps Vegas in gambling, Vegas has much better entertainment•Different demographic•Similar cities with different focuses•Total GDP Gambling: Vegas 6.5 Billion Macau 38 Billion (2012) •Total GDP: Vegas 97Billion Macau 44 Billion (2012) MACAU VSLAS VEGAS

18. SHANGHAI 上海

19. Consumption•China’s Middle Class spends <> $100 a day•Malls, instead of Starbucks, at every corner. SHANGHAI ECONOMICSFree Market vs. Mainland Censorship •Harsh difference between HK and Shanghai Advertisements.

20. Growing up, not out. •Pearl TV Tower & the dramatic jump in the Shanghai SkylineInsider’s Business Tip! •From a business person in the hotel lounge. SHANGHAI ECONOMICS

21. Growing up, not out. •Pearl TV Tower & the dramatic jump in the Shanghai SkylineSHANGHAI ECONOMICS

22. Growing up, not out. •World Expo SitesSHANGHAI ECONOMICS

23. Differences in Self-Expression•A truck vs. a handbag. •What you own, and what you don’t. Shopping Mentality•Dine in, Dine out. An “Amazon” mentality. Historyand it’s Different Paths•Both young countries, but with disparate culture foundations. SHANGHAI CULTURE

24. Censorship•Advertisements Plummet, as does the range of what they portray. •First experience of blocked mass communication mediums. Control •Land Ownership, leading to the value shift. SHANGHAI CULTURE

25. XI’AN

26. XI’AN

27. XI’ANECONOMY•Important industries: equipment manufacturing, tourism, and service outsourcing•Manufacturingmakes up the largest sector (44.5%) •Population: (2010 census) Sub-provincial city: 8,467,837Urban: 6,501,200 Metro: 7,168,005 •GDP: 324.15 billion RMB (~54 Billion USD -2012) GDP is increasing annually by 14.5%, on average

28. XI’ANCULTURE•One of theoldest citiesin China, with more than 3,100 years of history, the city was known as Chang'anbefore theMing dynasty. •Thirteen feudal dynastiesestablished their capitals in the province during a span of more than 1,100 years, from the Zhou Dynasty to the Tang Dynasty. •Starting point of the famous Silk Road to the West

29. XI’ANCULTURE

30. XI’ANTERRA COTTA•Terra Cotta Warriors: Qin Dynasty 221 BC –206 BC•Some pottery was uncovered in 1974 by a group of farmers digging a well. •The Terra Cotta Warriors and Horses are the most significant archeological excavations of the 20th century. •Over 7,000 pottery soldiers, horses, chariots, and even weapons have been unearthed from the three pits•It was listed by UNESCO (United Nations Educational, Scientific, and Cultural Organization) in 1987 as one of the world cultural heritages.

31. XI’ANTERRA COTTA

32. XI’ANTERRA COTTA•Both one of oldest cities in their respective nations•Boston has more revolutionary history, (independence from England) •Xi’an has a longer history, based on culture and politics•Both rely on tourism as a staple of their economy. Xi’an historical monuments and ruins. Boston universities and historical sites

33. BEIJING

34. BEIJING
The Capital of the Peoples Republic of China

35. BEIJING
•Population: ~22 million (2ndlargest behind Shanghai)
Fastest growing city in China
•Pop. rose 40%from 2000 to 2010
(According to 2013 report from JP Morgan)
•Political, cultural, and educationalcenter of China with national treasures dating back almost 2000 years
•Beijing Capital Airport is now the busiest in the world
•256/500of world largest companies are invested in Beijing
The Capital of the Peoples Republic of China

36. •Beijing people consider themselves as a traditional- style, historically influenced people who are less concerned with entrepreneurism andmoney;
•Rather, they focus on government, arts, andeducation. BEIJING CULTURE

37. BEIJING CULTUREEducation70+ Universities12 Universities

38. Tiananmen Square vs. National MallBEIJING CULTURE

39. Forbidden City vs.
National MonumentsBEIJING CULTURE
1884
1420

40. Government PresenceBEIJING CULTURE

41. Kennedy Center vs. Beijing ArtsBEIJING CULTURE

42. •Mao Zedong, Founding member of Communist Party of China(1927) and the founder of the Peoples Republic of China (1949) BEIJING POLITICS

43. •Ranked by Forbes as 3rdmost powerful person on earthBEIJING POLITICS•Xi Jinping, appointed in 2013 to
•General Secretary of Peoples Republic of China
•Presidentof Communist Party of China
•Chairmanof the Central Military Commission
•Studied Chemical Engineering, Marxist philosophy, ideological education, and Law (J.D.)

44. BEIJING POLITICS
•Communist Party of China (CPC) is the ruling party in China
•Beijing has a municipal government with a mayor/vice mayors
•The National Peoples Congressis located in Beijing with 2,987 members (Largest parliamentary body in the world). It is overwhelmingly controlled by the Communist Party of China (CPC)

45. BEIJING POLITICS
Military Presence
Obvious Presence
Routine / Situational

46. •Beijing hosts the headquarters of 44 of the world’s top 500 countries (2ndto only Tokyo)
•Foreign Direct Investment (FDI) rose $2 to $7 billion from ‘00-’11
•Personal transit grew from 600,000 cars to 5 million from ‘00-’11
•Beijing added 15 subway lines from ‘00-’11BEIJING ECONOMICS

47. BEIJING ECONOMICS
Built 6 years ago
Will double the size in 2015

48. •Beijing’s 2004-2020 Master Plan•Est. Beijing as a high-profileinternational city by 2020 •Focus on modern services and advanced manufacturing•Est. Beijing as the •Center high level international exchanges•Center for media, culture, education andscientific research•Center of governmentandeconomic planning•Intercontinental transportation hub BEIJING ECONOMICS

49. •Both are the capitalof their respective countries, and focal point for national unity
•Both recognize and proudly display heritage
•Architecturally, both cities favor expansive cityscapes with generally less high rise buildings (vs NYC, Shanghai)
•MEGA-Commuter cities
•DC is less industrial vs. BeijingBEIJING VS WASHINGTON

50. CHINA: WHAT WE NOTICED
•Major differences from USA
•Pollution
•Sanitation (Food & Amenities)
•Water
•WIFI available everywhere, though censorship is evident
•Mobile entertainment (Watching multimedia on the go)
•Consumables are cheap
•Constant shopping, never-ending marketplaces
•Lack of Immigrants