Making an Important Move

Robert Hsu, August 01, 2007

I've had a busy trip so far! I've made stops in many different cities, including Shanghai, Shenzhen, Taipei, Hong Kong and Seoul. With the exception of Seoul, my wife, Yvonne, and our two kids visited all of these cities with me.

Yvonne, like me, has been to these cities many times, but it was only my children's second trip to Mainland China. I brought them along because I want them to get a better feel for the area. It's important that they become familiar with Asia because I'm considering relocating to China next year. Our family's move would give me the opportunity to keep a closer eye on many of our China Strategy companies.

Although I'm familiar with all of the cities we visited during our trip, I saw things from a new perspective while traveling with my kids. Issues that I normally don't think much about, like traffic safety, social manners, crime, cleanliness, reliable food supply, and so on, become high priorities. Like every parent, I want the best for my children, and that means raising them in a good environment.

The topic of relocating came up again when I talked to our China Investing Tour Group. Several members of the tour expressed an interest in moving to Asia, and they asked me to recommend the best city. Unfortunately, there's no easy answer to that question. I told them that where they move depends on what they want out of China.

If you're looking to make money in finance, Hong Kong is probably the top choice. For those who want to get involved in manufacturing, Shenzhen is a good bet. But both cities also have their drawbacks. Hong Kong is an expensive place to live, while Shenzhen has very poor air quality and a high crime rate.

Shanghai is an exciting (and up-and-coming) city, but the communication infrastructure there leaves a lot to be desired. My email was down several times during my stay in Shanghai at the Grand Hyatt Hotel. Also in Shanghai, China's army of cyber-nannies blocks many of the websites that I frequent. It would be tough to do business from a city with such poor Internet access.

People who seek a relatively safe and inexpensive city with good food and interesting night life should consider Taipei. In recent years, Taipei's air quality has improved because most factories in Taiwan have moved across the sea to Mainland China. Taipei's biggest weakness is that the current political administration makes it difficult and inconvenient to do business in China. The global economic community is increasingly marginalizing Taiwan as China continues its economic emergence.

The bottom line is that each city has its pros and cons. If you're considering a move to Asia, it's important to spend a week or two with local guides so that you can make an informed decision.

At the moment, I'm leaning towards Hong Kong. Living in Hong Kong would be good for business, and I wouldn't have to worry about Internet access to censored websites. But no matter where I end up, one thing is certain: I'll continue to do my best to bring you the best investment opportunities that China has to offer.

Sincerely,