Foresight

by Ian Hamilton

  “So what do you suggest?”

  “You’ll have to talk to your customs broker.”

  “I know who he is and we’ve had contact with him, but we didn’t hire him. Ming did,” Uncle said.

  “But at the end of the day he’s working for you.”

  “Okay,” Uncle said, working to stay calm. “I’ll talk to the broker, but even if I do, it’s going to be too late to do much today.”

  “I’m sorry about that.”

  “Well, raw materials or not, we’re going ahead with our plant reopening and dinner.”

  “I think that’s the right thing to do. Of course, I’ll see you there.”

  “Good. And could you do me a favour?”

  “Of course,” Peng said.

  “What’s the name of the new director of customs?”

  “Liu.”

  “Invite him. If not to the plant, at least to the dinner,” Uncle said. “We’ve reserved what I’m told is the best restaurant in Shenzhen for the evening.”

  Peng went quiet.

  “I’m not going to discuss our relationship or make him some kind of offer, if that’s what you’re worried about. But since we intend to make more investments in Shenzhen, I want to know what kind of man I’m dealing with,” Uncle said. “I’m also, to be honest, quite interested in knowing how close he is to that uncle of his.”

  “I’ll invite him,” Peng said.

  Next, Uncle called Fong into his office, explained the problem, and told him to contact the customs broker. “Tell him it’s okay to have principles, but not at our expense,” Uncle said. “He should have told us or Ming that there’s a problem. No matter how bogus he thinks it is, he needs to register with the Master Brokerage House. We’ll pay the fee and whatever it costs to process the paperwork.”

  “I’ll call him right away.”

  “And Fong, the only answer I want to hear is that he’s done what we’ve asked,” Uncle said, displaying far more impatience than was normal.

  “I’m on it, boss,” Fong said.

  Uncle was neither surprised nor discouraged by the change in the way customs clearances would now be handled. It seemed to him that the new China’s concept of capitalism was going to be exercised most vigorously at the individual level. The state might open its own businesses and let them operate along capitalistic lines, and it might regulate and restrict the inflow of foreign capital, but on the ground, on an individual basis, it looked like it was going to be a free-for-all, a case of grab what you can as fast as you can — and that suited him just fine.

  ( 7 )

  At eleven, Uncle, Fong, and Xu left the office and made their way to the station to catch the train to Shenzhen. At two they were standing with more than a hundred people in front of Ming’s factory. The majority of the people there were plant employees. The balance was a combination of Ming’s friends and neighbours, Peng and a handful of other government officials, and Uncle’s Hong Kong contingent, including two Mountain Masters, each with their White Paper Fan and Straw Sandal. As the mixed group mingled before the ceremony, Uncle saw Peng eyeing the Hong Kongers apprehensively.

  “Our guests from Hong Kong will be customers for Ming’s clothes,” Uncle said, as he moved next to Peng. “They own and operate stores and markets. Many of them belong to the same fraternal organization, which is why you see some tattoos.”

  “I see,” Peng said, sounding uncomfortable but letting it go without asking the name of the organization.

  “You’ll get a chance to talk to some of them if you’re coming to our dinner,” Uncle said. “But now we should start the ceremonies.”

  “Of course.”

  “Ming told me you’re going to cut the ribbon to officially reopen the factory, and that your associate Lau is going to do it for the new plant.”

  “That is the plan,” Peng said. “Lau, by the way, is now responsible for issuing all the building permits in the zone, so I thought it wise to include him and for you two to meet.”

  “He looks young to have that kind of responsibility,” Uncle said.

  “He’s very smart, ambitious, and hard-working,” Peng replied.

  “I’m assuming he’s diligent enough to have already issued all the permits we need.”

  “He has. Your investment in our Hong Kong venture helped make that possible, in case you were wondering.”

  “I wasn’t, but I’m pleased to know, all the same.”

  “But remember, each of your projects will require its own helping hand and have its own cost attached to it.”

  “I haven’t forgotten.”

  “Good. Then let’s get started,” Peng said. He walked towards the plant entrance, where a long red ribbon was stretched across the door.

  Ming, Lau, and two workers from the factory joined them. One of the workers handed Peng a giant pair of scissors.

  “I hope this is only the first of many plant openings I will attend with Mr. Ming. There’s one more that I know for certain will be happening, because after I cut this ribbon, my colleague Mr. Lau is going to join Mr. Ming in turning the soil for a new factory, one that will be as productive as this,” Peng said. He smiled and turned towards the entrance. After holding the scissors in the air for a few seconds while a photographer took pictures, he cut the ribbon with a flair that surprised Uncle.

  “The plant isn’t running today but will be in full operation tomorrow,” Ming said. “Still, I’d like to invite you all inside so you can see the changes we’ve made. With our new equipment we will be the most modern garment factory in the entire region — until, of course, our new factory is completed.”

  Uncle knew that none of the triads had any idea about what they would see inside the factory, but he was pleased that they were polite enough to go in anyway. Fong and Xu — both of whom had been involved in the equipment purchase and had learned at least some rudimentary information about garment production — went in with their triad colleagues. Uncle lingered just inside the entrance, watching Fong point at equipment and try to explain to the triads how it operated.

  After about fifteen minutes, the visitors left the plant and the group regathered in the yard. “It’s only a short walk to the new site,” Ming said.

  When they reached the other building, Uncle saw another red ribbon strung across its main door. On the wall there was a banner that read future home of ming number two garment factory.

  As Lau and Ming approached the ribbon, Uncle moved close to Yin and Tse. “This isn’t just the future home of a factory. It’s the first step towards reclaiming our place in China,” he said.

  “I know you believe that, but I still have trouble accepting that it’s possible,” Tse said.

  “We’ll discuss it at the restaurant before dinner,” Uncle said. “I have a plan I want to share with you.”

  “I wouldn’t be here if I wasn’t prepared to listen,” Tse said.

  Without any speeches, Lau cut the ribbon, and then he and Ming posed for some photos.

  “Is that it?” Uncle said to Fong.

  “I know it wasn’t much, but it meant a lot to Ming,” Fong said.

  “When will the new plant be open?” Tse asked.

  “We’ll be up and running in a couple of months,” Uncle said.

  “It isn’t like you to move so quickly on anything, let alone something that requires this size of investment,” Tse said.

  “Things have started to change on this side of the border, and we either run with it right now or lose an opportunity that may never present itself again,” said Uncle.

  ( 8 )

  It was late afternoon before Uncle, Xu, Fong, and the men from Kowloon and Happy Valley had gathered in a private room at the Emerald Dragon restaurant in Shenzhen. There were nine of them, but the room’s single large round table could have accommodated twenty. Xu had pre-ordered tea and water, and
as servers set glasses, cups, pots, and a jug on the table, Uncle asked, “Would anyone like beer or something stronger?”

  “What time is dinner?” Tse asked.

  “It will start at seven and go on for at least a few hours. There’ll be lots to eat and drink. Our partner, Ming, has earned that kind of celebration.”

  “Then I’d better pace myself,” Tse said. “I’ll stick to tea for now.”

  “I’ll have beer,” Yin said.

  “Me too,” Uncle said, and then smiled as the other men ordered exactly what their respective bosses had.

  “Did anyone have a problem getting across the border?” Fong asked.

  “We didn’t know what to expect, so we left early,” Tse said. “I’m glad we did, because it took us about two hours to get through. What a pain in the ass.”

  “We take the train. It’s much faster and easier,” Uncle said.

  “You were born in China, weren’t you?” Yin asked.

  “I was, and so was Xu.”

  “That hasn’t been an issue with the Chinese officials at the train station?”

  “No, but then all we’ve ever shown them are our Hong Kong passports and ID cards, and we both make a point of speaking Cantonese.”

  “And how about the fact that you’re a triad?” asked Yin.

  “Why would it come up at the border?”

  “I mean with your partner here, and with the government officials you’ve been dealing with. None of them have mentioned it?”

  “It’s never been raised, let alone discussed, by any of the government people or by Ming.”

  “No one is the least bit curious about how you earn your money?”

  “Just a moment,” Uncle said as the server returned with a tray loaded with beer. He waited until the bottles were placed on the table, the server had left, and the door had closed behind him before continuing. “Peng — the man who cut the ribbon at the plant — runs the Special Economic Zone Development Corporation, so he’s the front man for Beijing in Shenzhen. He’s also helping himself to a piece of every dollar that finds its way into the zone. I know that for certain, because I’ve paid my share. Having said that, I don’t think he’s keeping it all for himself. Some of it’s being used to keep the other Communists here onside, and I’m convinced some of it is finding its way into the pockets of officials in Beijing.”

  “So this Peng doesn’t care where the money originates?”

  “He doesn’t give a damn. In fact, he went out of his way to tell me how to get around the investment regulations he’s supposed to be enforcing.”

  “That’s a lot looser than the way things operate in Hong Kong these days,” Tse said. “A man can’t spit on the street or fart in a restaurant without getting the cops all over him.”

  “Which is why I invited you Mountain Masters to come here today, I want you to see and understand what’s happening in China — at least, in parts of China.”

  “Some of the others were nervous about crossing the border, but that doesn’t mean they’re not interested,” Tse said. “In fact, they asked me to tell them how I find things here.”

  “Since you drove, you must have seen all the construction that’s going on,” Uncle said.

  “The whole area looks like one huge building site.”

  “Two years ago there were about thirty thousand people living here. Now there’s close to a hundred thousand, and there’s no end in sight to Shenzhen’s projected growth,” said Uncle. “They’re coming here for jobs and our challenge is to help provide them. If we do, and if we continue to look after Peng and his cronies, I can scarcely begin to imagine the freedom we’ll have to pursue business here.”

  “It can’t be that easy,” Yin said.

  “Nothing worth doing is, but if you take the time to understand how things operate on this side of the border, it isn’t that difficult either,” Uncle said. “The key, I believe, is to establish a visible, legal presence that conforms to the objectives of the Chinese government. Once we’re in place and they’ve accepted us, we can begin to expand our areas of operation. For example, I can envision a day when we’ll be able to open betting shops.”

  “Do you need the betting shops to pay for this factory?”

  “No,” Uncle said, more bluntly than he intended. “The current factory is already profitable, and the new one will be as well, almost from the day we open it.”

  “Assuming that we help to provide you with a market,” Yin said.

  “Why wouldn’t you if you’re making money from our products,” Uncle said. “And truthfully, if you decided not to support us, we’d find other markets. There’s a very large demand for Ming’s clothes.”

  “I’m just saying.”

  “Of course you are, and what I’m saying is that I want to keep what we have going here within the brotherhood, and I want to see the brotherhood take advantage of the opportunities that these special economic zones are offering.”

  The conversation had been so intense that neither Yin nor Uncle had touched their beer, and because they hadn’t, neither had any of their men. Now Uncle picked up his bottle. “Good health and much wealth,” he said and took a swig.

  “The same to you and all of us here,” Yin replied.

  “Uncle, tell me, how do you make money here? Is it through manufacturing or is it through selling to us? And if it is selling to us, does your partner here share in the profits?” Tse asked.

  “Those are some excellent questions,” Uncle said, and then paused to take another swig. “Our partner makes money only from manufacturing. We have agreed to pay him twenty percent above his total costs — costs that we monitor. Of course, as a partner, we share in the profit. Any additional profits we make through selling those goods to an outside market accrue one hundred percent to us.”

  “There’s another benefit,” Xu said. “We pay tax in China only on the profit we make here.”

  “And that tax rate is only fifteen percent,” Uncle said.

  Tse glanced at Yin and then at Uncle. “Why are you telling us this? Aren’t you afraid that we’ll come into Shenzhen and try to do the same thing?”

  Uncle smiled. “That’s exactly why I’m telling you this. I want you to understand the potential I see here, but it’s a potential that could go up in flames if any of our brothers decide to set up shop in Shenzhen and then go about trying to do business the way they conduct it in Hong Kong. Right now we’re operating below the radar. We’re building relationships and partnerships that in due time we’re prepared to share, but for now we need all of you to stay out of Shenzhen and let us build the foundation.”

  “No one I know, including myself and Yin, has talked about operating in Shenzhen,” Tse said.

  “I know that’s probably true, but once our factories are in full production and the brothers see the money that can be made here, they’ll head for the border.”

  “You’ve got some nerve, Uncle, telling us how much money you think you can make here and then saying we should stay out,” Yin said.

  “I apologize if I’ve offended you,” Uncle said. “My intention was to explain the potential I see, but also to make it clear that we have a clean slate here. If we build strong relationships, if we work with the Communists, if we help further the Beijing government’s objectives, we have an opportunity to re-establish a triad presence in China.

  But that’s not something we’re going to accomplish if we start running protection rackets or dealing drugs. All that would do is bring the local cops or — God forbid — the PLA crashing down on us, and we’d be thrown out of China again.”

  “Speaking of drugs, Wu has been saying some very unkind things about you,” Yin said. “I hear from him every week, and so do many other Mountain Masters. He claims that when it comes to doing business with you, it’s strictly a one-way street. You think you have the right to sell goods
wherever you want but you won’t let him sell into your market, and you’ve have been very unbrotherly to his men.”

  “You all know I won’t allow drug-dealing in Fanling, and I warned him what would happen if he tried it.”

  “We know your stance, but he argues that you shouldn’t impose that restriction on him. He says there’s a big demand there, and all he wants to do is meet it.”

  “There will be no drug-dealing in Fanling, and sure as hell none in Shenzhen either,” Uncle said.

  “I’m not sure Wu will go along with that where Fanling is concerned. He’s trying to build alliances, and if he feels he has the support of other Mountain Masters, he might get more aggressive.”

  “We can handle any aggression he decides to utilize.”

  “Do you have any flexibility at all? None of us wants to see another a war,” Yin said.

  “The last thing I want is a war, but I’m not prepared to change my position,” Uncle said, and then turned to Tse. “Do you remember calling me after your son got into that bar brawl in Kowloon that resulted in the death of an American sailor?”

  “How could I forget?”

  “After talking to you, I made one phone call. Two days later your son was released and no charges were laid,” Uncle said. “If I allowed drug dealing in Fanling, that kind of phone call would no longer be possible. Is supporting Wu worth the risk of losing that kind of influence?”

  “I know that it’s not, but not everyone thinks the way I do. I understand that we can’t sacrifice the future for short-term greed,” Tse said.

  “But every gang needs income, so what do you expect us to do while you’re making new friends and new money in China? Sit in Hong Kong and wait for you to give us approval to do business here?” Yin asked.

  “No. I want you to do in other parts of China what I’m doing in Shenzhen.”

  “Where? How?” asked Tse.

  “There are two other special economic zones designated, one in Guangdong province and the other in Xiamen, in Fujian province.”