The Observer’s assistant news editor, Charmaine Clarke, on a visit to mainland China witnesses the struggle between old and new

CHINA — On the horns of a not-so-unusual dilemma, China, the world’s most populous nation, must decide which of the old values to preserve — or discard — while embracing new imperatives, amid efforts to increase its Gross Domestic Product (GDP) by at least seven per cent over last year’s US$1.1 trillion.

Old world charm and the legacies of great dynasties from a colourful but rigidly inward looking past, form the backdrop to China’s 25 year-old thrust towards opening up its economy to the modern world.

Communist China now considers itself a developing country with a decidedly market economy.

Key words like ‘globalisation’ and ‘WTO’ (the World Trade Organisation) — in which China was given the green light to participate at its 2001 ministerial meeting in Doha, Qatar — roll easily off the tongues of government officials, academics and trade experts.

One of the popular phrases these days is the “socialist modernisation drive”, reflecting a clear attempt to hold onto the old socialist way of life but with a modern twist. Such words are frequently accompanied by admonitions to ‘curb waste’, ‘to plan’, ‘effectively use the country’s resources’, and finding ‘new ways of being more efficient’.

And as the Asian super power looks outward, China has made no secret of the fact that it is courting, among others, the Caribbean as a trading partner.

Earlier this year, Vice-Premier Madam Wu Yi made a whirlwind tour of the eight countries within the region that already have official diplomatic ties with Beijing. The others which do not, are not-so-subtly being nudged to fall in line. Easier said than done for those states which currently walk the tightrope over the long-running China-Taiwan dispute which forces countries to choose relations with one or the other.

Asian affairs experts predict it will take at least another 30 years for the ‘One China’ principle — reuniting of mainland China and the fiercely independent Taiwan — to become a reality.

But apparently not waiting for that event, China is forging ahead in many other areas. It opened up its economy in 1979 and by last year, its US$620 billion in foreign trade had made it the fifth largest trading country in the world.

The volume of trade with its Caribbean partners accounted for US$1.1 billion, a relatively small sum but a figure that China is determined to increase, as more partnerships are forged at the private and public sector levels. The numbers have already shown an increase in the first half of this year, jumping from US$600 million to US$640 million.

But while the experts and government officials cite these figures and run the jargon of modernity, the man on the street grapples with the changes that come with progress and prosperity.

The struggle can be seen in their clothing — the more traditional mandarin-collar style versus the boot-cut blue jeans and western brands worn by some of the younger crowd. In the huge, western-style shopping malls, brands such as Armani, Hugo Boss, Versace, and Yves St Laurent are offered side by side with hand-made traditional Chinese clothing in rich silk.

And the struggle is even more apparent when the well-lit signs of Pizza Hut, KFC and McDonald’s do duel with those of tea houses where patrons sip jasmine tea from porcelain teacups as they watch the Chinese opera.

The changes can also be seen in the construction industry as the clean-cut, almost futuristic lines of ultra-modern architecture dot the landscape, in stark contrast to the Pagoda-roofed buildings in the older sections of some cities, including Beijing’s majestic Forbidden City and the Buddhist temples in Xiamen.

While some locals enthusiastically embrace the changes, others are still not quite sure what to make of it all, and some flatly refuse to accept them.

In Shanghai, for example, some of its 16 million residents are staunchly opposed to the government’s move to tear down their homes and replace them with more modern accommodations.

Almost five million square metres of old housing was demolished in Shanghai last year as the local government invested $56.273 billion in building houses, a 24.3 per cent increase over the year before.

And in Beijing, the home of 14 million residents and the site of the 2008 Olympic Games, the construction industry is booming as they build more luxury hotels, sporting venues, and put in the necessary infrastructure to accommodate the millions of athletes and spectators expected five years from now.

With its rich colours, and booming cities where government officials who can reel off figures that speak of their prosperity, China is a picture of opulence. For example, last year Shanghai, which has an area of 6,340.5 square kilometres, had a GDP of almost 541 billion yuan (about US$66 million).

But the officials try to provide just a glimpse of the other side. They do not hide the fact that the prosperity does not filter down, at least not to the same degree, to enough of the rural areas.

Beggars, though not out in great numbers, are visible on the streets of the big cities. A few yards from the splendour of the five-star Beijing Hotel, one pleading young beggar had to be pried from the leg of a visiting Caribbean journalist.

And at times it seemed as if half the country’s 1.3 billion population had a “Rolex”, DVD or handbag to sell. Hustlers litter the street corners, trying to lure visitors into small rooms full of black market merchandise.

All the brand names are for sale here.

The vendors in the huge markets where everything is sold, from clothing to freshly slaughtered meat, appear to know more English than many hotel employees. At least they have mastered enough of the language to bargain fiercely as they sell their merchandise, easily replenishing them when sales are brisk.

For the skilful bargainer who is able to use a poker face to ignore several warnings of ‘last price’, the final purchase price will be a fraction of the asking price. The ‘dance’ may last up to 15 minutes, depending on the skill of the bargaining parties. Walk away and the vendor can pick you out of the crowd with yet another ‘last price’ that is still ridiculously high.

With the bargaining, the laughter, the colours, and even some familiar tastes, China is a pleasantly surprising place of contradictions.

There are no bands of marching soldiers, dressed in military green, walking the streets. But a few strikingly youthful guards stand, shoulders erect and ramrod straight, at the entrances to some buildings, including the headquarters of the communist party.

Still reeling from the economic impact of SARS (Severe Acute Respiratory Syndrome), the pneumonia-like illness that kept the tourists away for months, China is banking on events like the Olympics as well as the just-concluded China International Fair for Investment and Trade to boost its economy and help it achieve its growth target.

Other events, such as the September 11 moon festival and the street fairs planned for October, are expected to bring back the tourists to the streets of Beijing, Shanghai and other big cities in a country that has more than 4,000 five-star hotels and is on the way to building even more.

With all the concrete around, China has also bought into the modern concerns for preserving the environment and a special effort is being made to retain some of the greenery. The Xiamen airport, for example, has an expansive lawn that is manicured to perfection. In Beijing and Shanghai, perfectly arranged flowers are used to beautify the hotels, street corners, sidewalks and verges.

Man-made lakes of water add balance and beauty as they reflect the massive skyscrapers that seem to stretch for miles up into the blue sky.

And for those who want to learn about the past, a trip to the Forbidden City or the Summer Palace in Beijing will open doors to the rich history of Chinese culture.

Winged dragons and lions stand guard; high thresholds are placed at every doorway; paths are never in a straight line — these are all attempts to ‘keep out evil spirits’ as incense is burnt to appease the gods, a practice still ongoing at the Buddhist temple in Xiamen.

And the contradictions, the struggles between the old and the new are at the temple too. They are in the young girl who kneels before Buddha with three lit sticks of incense grasped in her hands, head bowed in supplication, lips moving in prayer. But she is wearing a decidedly western outfit of bell-bottoms and a Gap T-shirt.