Beijing: 3 Years On

I was back in China after a three year hiatus. For eight days I hung out with Clare - who is neck-deep in an uber-intensive Mandarin course - caught up with old friends, and met a few contacts to talk about my latest business idea.

Here are a few impressions of what has changed, and what hasn't, since my departure in August 2005.

A 21st century skyline
Undoubtedly China has experienced massive change as it's economy thunders forward at 10-12% a year. The most obvious difference is Beijing's new wardrobe. Nearly every part of the city has shed the old Mao suit for new Gucci jackets. Everywhere you go you find evidence of the shopping spree: gleaming glass blocks (my favourite is curvaceous CNOOC HQ), high-tech metro stations, sparkling black bitumen, perfectly straight pavements, and immaculately manicured (if slightly kitsch) gardens.

But the transformation is more than mere window dressing for the Olympics - this is no facade to be torn down. This is serious investment in expensive infrastructure that is built to last. And it's not over. More metro lines, airports, and railways are to come.

To some the construction boom smacks of hubris, and admittedly its hard not to be gob-smacked by its scale and ambition. But as I wandered past the CCTV as it twisted pre-ponderously over the 3rd ring road or when I toppled over backwards to see the pinnacle of the World Trade Centre spike the clouds over 250m (750ft) above, I realised that Beijing is building a 21st century skyline for a 21st century power.

China's World, China's Dream
A more subtle change is China's newfound confidence. Everywhere I went, people beamed with pride about the Beijing Olympics. Gone is the latent fear of a disrespectful and hostile world that has dogged the Chinese psyche for the best part of two decades. China is much less worried about its place in the world. What Beijing 2008 proves is that China can now command attention and respect on the world stage.

Perhaps more importantly, the Olympics have given the Chinese people a sense of purpose and responsibility to the rest of the world. The Party tried to present a new China that is peaceful, trustworthy and dynamic, rich in history and full of purpose. Undoubtedly many in the international community remain to be convinced, but it is clear that the people buy and support this new vision. It is with this sense of purpose that they greet foreigners and embrace the world.

Beijing Express: Where next?
But despite these rosy changes, the Government remains internally focussed. It must generate 12 million new jobs each year to keep unemployment steady. It faces an escalating environmental crisis and is struggling to close the rural-urban wealth gap. Stability and growth remain the top priority.

Yet surprisingly, the Party is accelerating reform. A long-time China watcher told me he was surprised by the speed at which the Party is experimenting with political liberalisation. Policy changes are widely debated, experts consulted, and recommendations included in new legislation. Village level elections are flourishing. Crackdowns on corruption are more widespread, even if unreported.

It seems as if the new generation of leaders has secured its political base and is now pushing through deeper reforms aimed at closing the urban-rural gap. The most vivid symbol of such efforts is the recent land reform bill - a dramatic rewriting of the rural paradigm established 40 years ago under Mao.

Whether this feverish reform will create the much-sought rural boom remains to be seen. But its boldness and speed of conception cannot be disputed. And where will it end? Surely, the Party will never imperil its grip on power? Not so, counter some who think that the political changes in the next five years will be more dramatic than anything seen since 1949.

Expats sent packing from Peking
Beijing's wild west days and its frontier-town feel are long gone. The jet-set crowd and their swanky dim-sum dens have supplanted baijiu and red bull swilling cowboys. Today you are more likely to meet a sophisticated Chinese banker with a Stanford MBA and a 3G iPhone than you are a dodgy Russian dealer peddling bootleg vodka, fake fur coats and Siberian prostitutes.

Whilst this is not necessarily a bad thing, I can't help feel a bit nostalgic for that vibrant chaotic edge. And I'm left wondering: has Beijing really change or have I just grown older and more boring?