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By Byron Bales
China is rapidly becoming more accessible to outsiders. Just a few years ago, those who wanted to visit China, had to make all air connections through Hong Kong. They also had to complete a rather laborious visa process that often took weeks. Today, many flights enter a half dozen Chinese cities directly from varied points around Asia.
It is now even possible to obtain landing visas at two places:
Haikou, on Halnan Island, and Shenzhen, just north of Hong Kong. Both of these cities are special development zones. More landing visa locations are planned.
Still, obtaining a visa from Chinese consulates around the world can be time-consuming; if one is going through Hong Kong, a better alternative, which will allow one to obtain a tourist visa in as little as three hours, is to apply at the China Overseas Agency in Kowloon, just a few minutes from the airport by taxi.
Business visas remain problematic as the government still wants an invitation from the host (host unit, it’s called). This is not advisable when on an investigative mission because the individual being investigated is often the only possible host. Fortunately, these days much less attention is paid to the type of visa an investigator might be holding than was the case just a few years ago. Also, many institutions (many of which are still government owned) are getting rid of their annoying political officers. Political officers still very much exist in China, but their attitudes toward business seem to have joined the twentieth century—now that we’re entering the twenty first century. They’re not the obstructionists they once were.
Gwanji, or connections, will forever be a way of life in China, so letters of introduction are still a good idea. In order for a government agency to give information, something they tend to dislike doing—and always resist answering gwallo’s (foreign devils) verbal questions—they require lengthy letters of introduction to which they’ll respond, someday, in like kind; except that their response will be frustratingly brief, even terse. For instance, if your letter of inquiry is asking for details about a financial dealing, you’ll likely wait six weeks for a letter that merely says “Yes, these people were doing business with one another.”
Financial fraud is on the increase now that China’s opening up, as is government corruption. China documents (proofs) you receive will normally be accompanied by a Notarial document. Notaries in China are government officials, unlike in the west. Once a document is issued from any government agency, it should be taken to a Notary for authentication.
Ten years ago, we never saw questionable Notarial documents. Today, the Notaries are getting in on the fraud game as are the police. All Chinese cities have a foreign affairs unit within their police departments. (Police in China are called Public Safety officers and the police are a national organization, not provincial.) Neither Notaries or the Police will ever recant a fraudulent report or document issued by their units, as to do so, would be to confess that someone or something is amiss within their command and since communists don’t sin, a bogus report cannot happen. The mere practical reason, of course, is for a commander to repudiate a report issued by his organization would be to open himself to criticism by his peers. This could lead to censure, even dismissal, and, if he had enemies, events far, far worse. So, a simple thing like acknowledging a bogus report could blow up into a political crisis. Bureaucrats tend to watch their own backs—and other bureaucrats. In China, responsibility is secondary to position. “Face” has always been an important aspect of Chinese life, and to make a mistake is to lose face. So it’s basically pointless to expect cooperation in repudiating bogus police and Notary reports, and more practical to just conduct the investigation independently. Institutions, however, are starting to cooperate with denial statements, especially if a signatory whose signature appears on the documents does not exist.
Witness statements remain a tricky thing. To the Chinese mind, a statement is tantamount to a confession, even if the details you’re wishing to reduce to writing are the simplest facts.
The average Chinese citizen will answer questions from a foreigner quicker than he will to his own countrymen (unless it’s the police). This makes agency work (the hiring of locals in the absence of the western investigator) difficult. The rationale is that if a westerner is asking questions, it must be important. Amazingly, even though westerners are seen as inscrutable foreign devils, there’s more trust than with their own countrymen—from whom they view questions as nosy, at least, and as possibly sinister, at worst.
The most prevalent scams in Hong Kong are the obvious ones: stolen credit cards, pockets and wallets picked, etc. There is a European gang, mostly Swiss and Germans, who route a dozen young western people, couples, people who look like they’re on vacation, etc. into HK where they go on shopping sprees before credit cards are reported missing. The dips (pick-pockets) are usually young Chinese boys, and most of the picks take place along Nathan Road, in Kowloon. The stolen cards are quickly turned over to the westerners to do the shopping and the merchandise is quickly dropped off at a central place, usually a waiting van, and later sold for the cash. This scam goes hand-in-hand with stolen travelers checks where the game is always to use a large denomination to purchase smaller cash items and receive the change in cash. That merchandise is also sold as with all the other purchased merchandise obtained through the stolen credit cards. One contact told me that the average time between when a credit card is stolen and when it is used is under ten minutes! The average time for the card to be reported stolen is three hours! Victims often want to check back at their hotel, etc. and go through their things several times before reporting the card stolen, fearing that once they report it gone, privileges will be cut off for them as well until they clear the matter up and get a replacement card. No one likes going through that routine and wasting precious vacation time, so they choose not to believe their card is missing.
The English language is becoming much more prevalent throughout China. but especially in eastern China. The country’s infrastructure is also expanding, making China cheaper and more convenient in which to handle investigative matters. Distant destinations, however, remain a problem. Cities than can only be reached by train are time consuming to reach, often requiring 12-16 hours just to travel a few hundred miles. As in India, private car rentals (without a driver) do not exist.
Chinese airlines are dangerous. Equipment is poorly maintained and the average Chinese pilot remains a cowboy in the skies. All air-ground communication must be in English, which some pilots still seem to resent, and too many incidents continue where pilots refuse to respond to air traffic controllers calling from countries of departure or destination.
The American Consulates, six of them in China now that Hong Kong has been handed over, offer no assistance in commercial matters—other than in cases involving a violent death of an American. They’re not mandated to assist businesses and also are understaffed. Some consulates have a commercial staff, but inquiries take months and are by necessity completed by Chinese employees of the consulate. Such reports lack depth. Private connections are the best and this requires initiating and nurturing working relationships over a long period of time.
All in all, China has improved greatly over the past few years, a fortunate thing, as financial crimes are keeping pace with improvements.
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Byron Bales is the co-founder of First Services and manages the Asian Regional Office in Bangkok, handling Asia and parts of Pacifica. He’s traveled extensively throughout China over the past 12 years and is able to converse in Mandarin (Chinese dialect). His e-mail address is bales@mozart.inet.co.th
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