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  • 30% Off - The Post Lantern Lull 2.19.12
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  • Johnny Law 1.9.12
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  • Foreign Real Estate Development in China 6.3.11

Johnny Law 1.9.12

Johnny Law

Jeff LoCastro, January 9, 2012

Founder & President, NCCREA



China is a country of laws.  Lots and lots and lots of laws.  But having laws

does not equate to the 'rule of law.'  That is still evolving and is at best a 

work in progress.  They have so many laws for virtually everything 

conceivable that it is impossible for the layman to navigate.  The

purpose of so many laws is to be able to control certain aspects of the 

society, culture, and marketplace if whenever and wherever the 

government decides it needs control.  Doing business in China, done 

properly, can be a financial bonanza but can also be horrendously 

difficult to gain traction and to get started.  Much of everything here is 

purposefully hidden from plain view, and sometimes even the most base

actions can seem interminable.  However, if Johnny Law (Government) is

saying "no" to your operation, perhaps it's because you have not 

found the way to get them to say "yes."  And in China there is lots of 

flexibility. 

 

For example, in 2004, citing water conservation considerations the 

Beijing Municipality outlawed the construction and development 

of golf courses in the city.  At the time of the ban, Beijing boasted 

approximately 38 courses. As of this writing some reports suggest a 

current inventory of 60 courses, some suggest 73, while still others 

put the number at 170 (including driving ranges).  Why the crazy 

wide range . . . 60 to 170?  Doesn't anyone actually know?  How could 

they not know?  Well, welcome to China.

 

Regardless, the fact is clear that somewhere between 60 and 170 courses

have been built since 2004 when golf courses where banned.  There are

two main factors at play here: the Articulated Reason and the Real 

Reason.  1)  Yes, their construction was banned for the articulated 

reason of water conservation. They could play the "Conservationist" 

card to the world community.  2) However, the real reason was that 

it created another channel to a vast wealth of underground cash flow.  

 

But so many outsiders continually report such things from a foundation

of naiveté and ignorance. According to a 2009  article from  The 

Guardian, "China imposed a  moratorium on course building in 2004, 

but the game's popularity has led developers to continue construction

without permission. While the first course opened on the mainland 

only in 1984, there are now believed to be around 500 and on one 

estimate the total could rise to 2,700 by 2015."  

 

 

Without permission?  The developers have slipped not one but 

potentially hundreds of courses past the noses of Chinese officials?  

Really?  In the "Land of Permission" some developers risked 25 years of 

hard labor to build a golf course . . . without permission?  Some 

developers where able to demolish, construct, green and water hundreds

and hundreds of acres of land in one of the most densely populated 

cities in the world . . . and no one noticed?  Frankly, I'm not sure 

whether to feel pity for the The Guardian author or disgust.

 

Of course they noticed! (no pun intended).  The developers simply found

a way to get them to say "yes."  Many have bypassed the law by calling

them a "wildlife refuge" or "aquatic park."  That's fine for your initial 

set of drawings, but what do you when the contingent of inspectors 

comes-a-callin'?  And they will come-a-callin'  . . . in busloads. The

fact is it all semantics.  And everyone knows it.  

 

To be clear:  this is not the case of scores of greedy robber baron 

developers thwarting regulation and fooling an unwitting governance 

in order to build 18-holes and a club house. It was the way, with a 

wink and a nod from Johnny-Law, the ban was circumvented.  To those

living and making deals in China, there is no secret surrounding their

solution or the fact that many 'approval cogs' are now members of 

these wildlife refuges.

 

There is your flexibility:  Just because you can't, doesn't mean they 

won't.   But you enter such arrangements at your own peril.  Because

whatever Johnny Law giveth, Johnny Law can taketh away.

 

COPYRIGHT 2012 JEFF LOCASTRO
DISTRIBUTED BY NCCREA
CHANGZHI, SHANXI, PRC

Contact the author at:  Jeff@NCCREA.com or  Jeff@CaliforniaSecured.com









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