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Another Reason For Foreigners to Have Health Insurance in China
June 26, 2008 – Yesterday, a good friend of mine was unfortunately hospitalized due to illness. In China, the less Chinese you appear, the more that Chinese-run hospitals will attempt to charge you. (I myself had this experience with a hospital in Shanghai two years ago in regard to surgery to set a broken bone.) My friend, who is white, initially went to the VIP (read “foreigner”) department of a well-known hospital in Shanghai. They told him that he would need to provide a deposit for treatment of RMB 100,000 (US $14,000).
Fortunately, he was with his Chinese girlfriend. They went to an adjacent building (same hospital), in which the staff agreed to admit him for a negotiable RMB 50,000 deposit. In actuality, it was not a deposit at all because they admitted him before taking much payment. Within several hours, the treatment price the girlfriend and the hospital were negotiating was in the range of RMB 20,000 to 30,000. Moreover, the room he received is not that bad (despite not being in the “VIP” department) – it is a modern, clean private room with its own bathroom.
My friend (who is American) does not have international health insurance. His experience highlights the advice Healthline Asia provides in its article on health insurance for expats in China. Having an insurance company that deals directly with the hospital would eliminate much of the hassle he experienced. Moreover, if the company does overpay, that’s their problem – not yours’. Had he been insured properly, he could have been admitted sooner, rather than having to yell and scream (while very ill) at the staff for a while. That is a perfect example of why expats and foreigners living in China should have health insurance coverage.
When China Employees Game the System
June 20, 2008 - I went to my bank today and witnessed another example of local employees gaming the system their employer imposed. This scam is more innocuous than many - it does not involve outright theft (although it probably is indirect theft). The bank at issue is one of the largest foreign banks operating in China. Unlike most domestic banks, it makes a sincere effort to deliver strong retail customer service. Unfortunately, this effort is the cause and object of the employee scam.
When I visited the branch three weeks earlier for a routine transaction, there was no line at all. My business took less than three minutes in the branch to transact. At the end, the teller asked me to fill out a quick customer satisfaction survey in return for a small gift. I agreed. My answers to the three (irrelevant to the story) questions were: Satisfied, satisfied, and satisfied. At the end, the teller gave me a small attractive box with either tea or potpurri in it (I'm still unsure).
I have been to the same branch two times between then and today. Each time, I had a short wait. Today though, the counter was again clear. My business again was simple and quick. At the end, the teller asked me to fill out the same survey in exchange for the same gift. I agreed.
As I was again answering: Satisfied, satisfied, and satisfied, I saw the scam. I would bet that the bank has implemented an incentive system for good customer service results. It is well-intended, but it probably took each of their local employees no more than point five seconds to figure out how to game the incentive system.
China and U.S. Present Largest Risks to Supply Chain According to Survey
June 24, 208 - Last night, AMR Research, a U.S.-based research firm, released the results of a survey of manufacturers on supply chain risks. The survey concluded that China and the U.S. are the geographies that present the largest risks to supply chains. In fact, the U.S. was rated as riskier than China – 35% of survey respondents cited the U.S. as most risky, while 28% cited China. The factors that hurt the U.S. were rising transportation costs, deteriorating infrastructure, and a weakening economy. The factors hurting China were product quality issues and political unrest.
34% of the survey respondents stated that they planned to “near shore” – or bring closer to home – portions of their supply chains. This could be a significant trend developing – high transportation costs (primarily caused by rising energy prices) could be tilting the scales back in favor of manufacturing closer to destination markets. This bears watching to see whether and to what extent the trend becomes major.
There is a little more bad news in the report. 49% of the companies that plan to source from China cited low labor costs as their primary reason. This is one of the biggest (if not THE biggest) myth of China business. Click here to read article on Top Myths About Doing Business in China.
Low labor costs do not represent the bulk of savings for most foreign manufacturers or buyers. Many goods still have significant mechanical input. Moreover, the productivity of a Chinese manufacturing worker is generally nowhere close to that of a Western worker. Rather, China’s manufacturing advantage is usually in more flexible manufacturing models; lower-priced land, buildings, and utilities; and, the presence of an unparalleled supply chain. The bad news is either that: survey respondents may be disappointed by the lack of labor savings – particularly because with China’s new labor law and inflation, worker costs are increasing rapidly – and thus increase near shoring; or, China is going to have a difficult time climbing the value chain in manufacturing, continuing to produce lower value-added goods that have greater proportions of human input.
The good news (as I see it) is that there are still large efficiency gains to be made by China in moving goods throughout the supply chain. Although China’s logistics sector is improving, it still has a long way to go. Much of the problem is regulatory. Individual provinces are permitted to impose restrictions on transportation companies from other provinces. As a result, goods often change trucks at the borders of provinces, thereby increasing time and costs. The logistics sector remains one of the more difficult for foreigners to enter due to government policies. Therefore, if push comes to shove, there is room to counter price rises in international transportation and labor.
ATM's and Personal Finance
May 22, 2008 - Expats living abroad in China have many options with regard to accessing money in their foreign accounts. Foreigners can use the ATM's to access their foreign accounts or domestic accounts. What you do should depend on how long you intend to stay.
For tourists and short-term business visitors, the best thing to do is just use your foreign check cards at the ATM's across the major cities. These are quick, easy, and sometimes inexpensive ways to get cash. You can also withdrawl cash from ATMs from your credit card, but that may leave you responsible for cash advancement fees. Some banks have partnership and co-ops with banks in China. For example, Bank of America has a co-op with China Construction Bank (CCB) and allows free cash withdrawals at their ATMs. Another solution is to open a Charles Schwab Free Checking Account, which offers free withdrawals from ALL ATMs, worldwide.
For long-term stays in China, foreigners can open up bank accounts in China. You will be issued a bank check card and can withdrawal money from their ATMs for free, just as you would in your home country. You can withdrawal money from other banks' ATMs, but for a small fee, similar to most other banks in most other countries.
Disclaimer: The information is this article is subject to change without notice to the user or reader. We are not responsible for any changes or modifications to the information included in this article.
Culture Shock
I would like to know what some of the users think are the most challenging cultural transitions to make to living in China. This can be very daunting for those relocating to cities in China and it can really help paint a realistic picture for them.More Articles...
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