Dear Clients and Friends!
                                                                                   
Another eventful year is coming to a close. Again, time has flown and the year has been filled with small and big changes.

Together with our clients and partners we have achieved a great deal during 2004. We would therefore like to thank you very much for the trust placed in us and for the fruitful co-operation.

For us, it has been an exciting year indeed. We expanded in terms of staff and services and our Shanghai office moved to new premises in Ciro’s Plaza – right opposite the former race track which today is the People’s Park.

Instead of sending cards and gifts we are this year again supporting charitable organizations that require help. We understand that education is very important to youngsters as they are the pillars of the future, so the beneficiaries this year are the AWA Holiday Scholarship Fund and The China Youth Development Foundation.

Both of these organizations work to keep deserving young people in school. The former is under the auspices of the AWA (“American Women’s Association”), which supports such worthy causes by buying books and uniforms for the children, improving their English and planting the seeds of inspiration. They also give grants to secondary and vocational students in Asia. The aim of the latter is to build a China Daily Readers Hope School in Dongxiang Autonomous Country which is in a poverty-stricken, remote mountainous area located in central Gansu Province in China.

Through these donations, we hope to bring hope to the youth.

We wish all our friends and business partners a Merry Christmas, happy holidays and a healthy, happy and successful 2005!

We trust that you will have enjoyable and relaxing holidays together with your family and friends.

May the Chinese saying “Tianshi Dili Renhe” (天时地利人和) “Success requires three conditions: good timing, favourable location and solid partnerships” guide your business ventures in 2005!

Your Fiducia Team

in Beijing ● Hong Kong ● Shanghai ● Shenzhen 
                                                             

The holiday season provides time to halt and reflect on China’s developments.
We often read about and do see China’s economic miracle. But with this newsletter we want to concentrate on issues not related to daily business, the challenges and rewards of doing business in China. Instead, we are presenting a look at life in China, in general terms.

Some Headlines

o Dulwich College of London, one of Britain’s prestigious schools, now runs an International school in Shanghai.

o China’s wine makers are coming of age: Vineyards run by foreign investors are producing good quality cabernet sauvignons, chardonnays etc. in Shanxi Province and in Changli, some 250 km east of Beijing. One of the 30 wineries in this area is owned by Mr. Langes-Swarovski, who has also built a Vienna-Schoenbrunn style hotel and wine school there.

o Within the International Student Assessment (PISA) for 2003 for 15 year-old students Hong Kong is ranked first in Mathematics, second in problem solving and third in science.

o Only a month after the publication of Bill Clinton’s memories (in English), a Chinese unauthorized version was available for sale in China.

o In March 2004, LifeLine Shanghai started operations to help expatriates and their families deal with work stress, cultural issues, relationship difficulties and addiction concerns in Shanghai. Confidentiality and anonymity assured. T: +86-21-6279-8990

o Hong Kong businessmen have been detained by mainland authorities without being charged - some for over 2 years. Their cases are related to commercial business disputes.

o Excerpts from a major story in May 2004 in the NY Times:
"Dear Heavenly Father, please keep the leaders of China, healthy and on an even keel. Please see to it that they move steadily and carefully toward…” … “because their economy is now fuelling growth all over Asia, bolstering Japan and sucking up imports from everywhere. May China's leaders live to 120 and may they enjoy 9 percent G.D.P. growth every year of their lives. Thank you, Father. Amen."

o In April a “Declaration of the Campaign against the Central Propaganda Department” was published by journalism professor Jiao Guobiao at Beijing University. With this declaration he is advocating the elimination of this powerful organ of the CCP as it restricts the coverage of topics of public interest like health crisis (SARS), economic news and it unfairly punishes journalists. (The disclosure of so called state secrets is often being used as a tool to silence individuals or journalists who have in the opinion of the government organs gone beyond the limits of governmental tolerance)

o Air pollution is a major issue in cities like Beijing, Shanghai and Hong Kong.

o “Second passport for visa-free travel and asset protection” reads an advertisement in the China Daily newspaper in September 2004.

o “A study about Chinese Peasants” (中国农民调查) written by Wu Chuntao and Chen Guidi describes the shortcomings of rural life and how little the rural population has benefited from China’s economic gains (On average, city residents earn 3 times more than the rural population). Initially praised as a fair description of the situation the book was banned in March. It is estimated that more than seven million pirated copies have been sold since then.

o “My daughter is bright,” says a taxi driver in Beijing. “She is in college studying interior design. She is our family’s hope.”

Arts Centres, Galleries and Museums in China and Hong Kong

Beijing
o National Art Museum of China
o Beijing Art Museum
o 798 Space is an art and culture centre located in Dashanzi District. The buildings were designed in Bauhaus style as factory buildings in the early 1950's by East German architects. (www.798space.com)

Shanghai
o Shanghai Dramatic Arts Centre
o Shanghai Art Museum (www.cnarts.net/shanghaiart/)
o Elegant Art Centre
o ShangART Warehouse
o Art Scene Warehouse

Chengdu
o Chengdu Art Centre (www.chengduart.com)

Shenyang
o Liaoning Provincial Museum displaying thousand of paintings, calligraphy, books and jewels from the former Emperor Puyi’s collection in the Forbidden City.

Hong Kong
o Hong Kong Museum of Art
o Hong Kong Museum of History
o Flagstaff House Museum of Tea Ware
o Hong Kong Film Archive
o Schoeni Art Gallery - (www.schoeni.com.hk)
o Maritime Museum, Hong Kong’s first major maritime museum is to open next year in the Murray Building in Stanley, originally built to accommodate the British military. The museum gives a glimpse of the vessels that have plied Chinese coastal waters in the past 2,000 years.

Some Reading Suggestions

o A Fortune Teller Told Me (German edition: “Fliegen ohne Fluegel”) by Tiziano Terzani
o Searching for Shangri-La by Lawrence Brahm
o Jesus in Beijing by David Aikman – giving an insight about Christianity in China and its possible strength in the future
o Grand Hotel (German version “Menschen im Hotel”) by Vicky Baum describes life in Shanghai in the late 1920’. Also made into a film with Greta Garbo and Joan Crawford.  Another interesting book is Hotel Shanghai by the same author.
o The Retreat of Elephants: An Environment History of China, about nature, history and literature, by Mark Elvin
o Behind the Wall, by Colin Thubron – describing his adventure of cycling 16,000 km across China
o The Palace of Heavenly Pleasure by Adam Williams - fiction combined with history
o Beijing 798 edited by Huang Rui
o Skin (Biaopi) by Hu Fang and Chen Wenbo
o The World of Suzie Wong by Richard Mason
o Gweilo – memories of a Hong Kong childhood by Martin Booth
o China illustrated by Arthur Hacker
o Mr. China by Tim Clissold – a story of a failed investment

The Four Masterpieces in the History of the Chinese Novel

o The Dream of the Red Chamber, also known as The Chronicles of the Stone, was written by Cai Xueqin in the 18th century during the Qing Dynasty (1644-1911).
o Water Margin or Outlaws of the Marsh, is famous works of classical Chinese literature by Shi Nai’an and Luo Guanzhong.
o The Romance of the Three Kingdoms, written by Luo Guanzhong in the 14th century, is a classical Chinese historical novel.
o Journey to the West, is a classic of Chinese literature and perhaps the most well-known amongst the younger generation, was published anonymously in the 1590s and no direct evidence of its authorship survives, but it is traditionally ascribed to the scholar Wu Cheng'en.

The Old China Hand Reading Room
Tucked away on a side street in the former French Concession, the Old China Hand Reading Room, a charming coffee shop combined with a bookshop and a library, has become a favourite venue for Shanghai's intellectual and artistic sets, both Chinese and Western.
27 Shaoxing Lu (Tel: 6473-2526)
Open daily, 10:00am to midnight

Fancy Flying?
Paragliding in China began in 1989, and the Henan Linzhou site attracts hundreds of enthusiasts every year. Contact the Parafly-China Paragliding Club in Shanghai (www.parafly-china.com) or Flying Man Club in Beijing (www.flying-man.com) if this sport suits you.

Want to Buy a Prestigious Car in China?
Rolls-Royce, Ferrari & Maserati, Porsche, Mercedes-Benz, BMW and Audi all have showrooms in Beijing and Shanghai – and of course in Hong Kong.

China’s Movers and Shakers
Movie Directors
o Zhang Yi-mou – “ House of Flying Daggers”, “Hero”, “Raise the Red Lantern”
o Feng Xiao-gang - “No Thief”, “Sigh”, “Mobile Phone”
o Chen Kai-ge - “Walking and Singing”, “King of Children”, “Yellow Earth”
Movie Stars
o Gong Li - “Raising the Red Lantern”, “Judou”, “Red Sorghum”
o Zhang Zi-yi - “Hero”, “Ambuscade”, “Purple Butterfly”
o Maggie Cheung – won best actress award at Cannes Film Festival for her role in “Clean”, Other popular movies are“2046”, “Hero”, “Fa Yeung Nin Wa”
o Jacky Chan – “New Police Story”, “The Medallion”, “Shanghai Knights”
Authors
o Wang Shuo - “I Am Your Father”, “Lose My love Forever”
o Hai Yan - “Bride well”, “Girls at Wangfujian Street”
o Lao She - “Tea House”, “Divorce”
Composers
o Tan Dun - “Hero”, “Water Forever”
o Lei Lei - “Policeman”, “Four Generation in One House”
o Shi Guan-gnan - “Premier, Where Are You?”, “Singing and Beating the Drum”
Artists
o Pu Jie –Solo exhibitions in Hong Kong and Shanghai. His works were chosen by the eminent Swiss curator Harald Szeemann to be included in the Biennale d'art contemporain in Lyon, France, one of the important international group shows
o Wu Yiming - Solo exhibition “Too Dark” in Shanghai
o Chen Yifei - One of the most successful contemporary Chinese artists and an internationally renowned oil painter.

A Future Scenario?

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         We wish you a successful 2005 in your China business and China investment!