FW: Huaxi: the village that towers above China | World news | The Guardian
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http://www.guardian.co.uk/world/2011/oct/06/huaxi-village-tower-china

Huaxi: the village that towers above China
Until recently, Huaxi was a poor farming community, typical of eastern China. 
Now, thanks to the ambition of one man, it is a powerhouse symbol of the 
country's economic expansion, embodied by a giant 328m-tall tower

An incongruous new sight has risen up in the countryside of eastern China: a 
skyscraper taller than any building in London or Tokyo, topped by what looks 
very much like a giant, golden disco ball. The 328-metre supertower, which juts 
out of the Jiangsu plains like a trophy on an empty shelf, will be opened on 
Saturday by the village of Huaxi, a communist model community with a registered 
population of just 2,000 "farmers".

Having been built up to the heavens during a period of global economic 
collapse, the megatower will be heralded as the latest symbol of China's 
extraordinary economic expansion. But this bizarre new addition to the 
landscape also speaks volumes about the land pressures, environmental stress, 
inequality and rash investment that threaten the country's long-term growth.

The skyscraper will primarily be used as a gourmet dining hall and luxury 
hotel. Though many of those who live in its shadow earn less than £10 a day, 
there is no attempt to hide the wealth gap. From a gold leaf-covered reception 
to a 60th floor inlaid with genuine flakes of gold, the building exudes wealth 
and excess. Its proudest feature is a one-tonne, solid gold statue of an ox, 
said to be worth 300m yuan (£31m).

The mega-statistics do not stop there. With 826 bedrooms and dining facilities 
for 5,000 guests – including southern China's biggest banquet hall – there is 
almost enough space to accommodate and feed all of the original village 
residents at a single sitting.

It is the brainchild of Wu Renbao, the driving force behind Huaxi's 40-year 
transition from a small village to a multibillion-dollar conglomerate with 
interests in steel, shipping, tobacco and textiles. By turns a communist 
dictator, capitalist entrepreneur and self-help guru, the 84-year-old is among 
China's most colourful characters. He is praised for turning Huaxi into one of 
the richest villages in China and enriching the original residents with annual 
shares, dividends and free overseas trips. He is also criticised for turning 
the community into a family fiefdom, in which workers get no holidays and his 
relatives get the best posts.

He has created a hierarchy largely determined by closeness to the Wu clan. 
Those from the original 2,000 Huaxi families are at the top of the pyramid. 
Next come the 35,000 residents from neighbouring villages that have been 
swallowed up by Huaxi's expansion. At the bottom are 20,000 newly arrived 
migrants, who provide labour for the factories on 12-hour shifts without 
weekend breaks. The monthly salaries of 3,000 yuan (£310) are better than 
average for low-skilled labour in China, but it is hardly a worker's paradise.

Wu is undoubtedly Huaxi's greatest draw. Coachloads of visitors – mostly cadres 
and retirees – turn up to listen to the 10.30am lecture he delivers every day 
in a village auditorium that has been decked out to resemble the Great Hall of 
the People in Beijing. His close connections to the central government ensure 
supportive policies – for example, planning permission to build a 72-storey 
skyscraper in an area where the next-biggest building in less than 20 floors 
tall. Wu says he looked to the mega-cities of the Middle East for inspiration. 
"This tower is my idea," the patriarch says in such a thick local accent that 
the interpreter needs an interpreter. "We learned from Dubai, but taking into 
account our domestic situation, we decided the height should be 328m. Why 328m? 
Because that is as tall as the highest building in Beijing." Chinese culture 
loads numbers with significance: 32 is associated with business and eight 
represents prosperity.

As village officials also proudly note in the invitation to the opening 
ceremony: "There are 209 countries that lack such a tall building." That 
includes the UK. Even the Shard London Bridge – which will be the tallest 
building in the EU when it is completed next year – is 18m shorter than Huaxi's 
new village centre.

Even for those used to the speed and scale of change in China, this is 
astonishing. The last time I visited Huaxi in 2005, it was building a cluster 
of giant pagodas, which then appeared outlandishly large compared to everything 
else in the village. Today, those same pagodas barely register in comparison to 
the supertower beside them, which pulsates in all the colours of the rainbow 
when night falls.

It is a tacky but impressive reminder of how far the village has come since the 
Mao era. That message is reinforced at the village museum, where old propaganda 
footage shows farmers breaking rocks, labouring in the fields and living in 
small, unfurnished homes. It is also evident in the small park, which preserves 
Wu's first factory, a whitewashed, single-storey building.

"We used to have a very difficult life. We lived in a thatched shed, ate bran 
and had nothing in our pockets," recalls Wu, whose message can be distilled to 
a drive for GDP growth. "I think it will never be wrong to expand the economy 
and make ordinary people rich. In our opinion, that is the priority."

This approach has worked for decades and never more so than during the past 
seven years, when Huaxi's sales have increased fivefold. But the skyscraper is 
a towering indicator that business as usual is no longer working. The 3.5bn 
yuan (£360m) investment is designed to attract tourists and new business to 
Huaxi as it attempts the leap from dirty industrial centre to an ecologically 
friendly service sector economy.

In making the transition from third-world village to first-world skyscraper, 
Huaxi is in many ways a microcosm of China. But the next step will be harder as 
it tries to cope with the declining competitiveness of its core industry, the 
inflated cost of land and worries about the environment. In this case, an even 
wider comparison can be drawn: like the global economy, Huaxi may be bumping up 
against limits to growth.

 A solid-gold statue of an ox in the tower at Huaxi. Photograph: Jonathan Watts 
for the Guardian Until recently, the village earned half of its income from the 
iron and steel industry. But today, this has fallen to less than a third. This 
collapse is due to rising material costs, the expansion of rival firms and 
falling demand both overseas and in China. "This is the worst situation I have 
experienced," says Yang Yongchang, who has been general manager of the Jiangyin 
Huaxi Iron and Steel Company for eight years. "It will get worse in the future. 
People in this industry are panicking." He says Huaxi is planning to move the 
factory so it can reinvent itself as a tourist resort and commodities-trading 
hub. "We're trying to build an ecological village that looks like a forest 
garden," he says.

The costs of fast, dirty, old-style economic growth can no longer be ignored. 
Wu Yunfang, the head of environmental affairs in the local communist party, 
says the village has recently shut down five chemical and textile factories 
that once used to discharge pollutants into the local Changjiagang river. She 
estimates the value of the lost production at 150m yuan (£15m), which adds up 
to a significant environment bill along with the 350m yuan (£36m) spent on 
emissions scrubbing and wastewater treatment.

Territorial expansion is also becoming more expensive. In the past two decades, 
Huaxi swallowed 12 neighbouring villages as its industry and influence sprawled 
outwards. It is not officially a merger. The official terminology is that the 
villages are "united under Huaxi", but the reality is far more like a corporate 
takeover. Huaxi paid an annual fee to the surrounding villages and in return it 
gained control of economic management, land use decisions, labour issues and 
political appointments.

The loss of independence is worthwhile, according to Zhang Zhongxian, the 
former head of Xixiang village, who is now working for Huaxi's labour 
federation. Since his community was subsumed by Huaxi in 2002, Zhang estimates 
that average annual incomes have more than tripled, welfare for the elderly and 
disabled has improved and homes and roads have been upgraded. "In five to 10 
years, we will be where Huaxi is now," Zhang says. "Many other villagers want 
to join. Even some from other provinces."

But land costs have risen dramatically. Huaxi's village chief, Wu Xie'en – the 
son of Wu Renbao – said this was a major factor in the decision to build the 
tower, which has been dubbed "a village in the air". "With the completion of 
this building, we can save a vast expanse of land. In China, the trend now is 
to build tall because the more the economy develops, the more space is needed. 
Where is the space for China in the future? We must look to the sky." The party 
secretary says he wants to turn the "city village" of Huaxi into a Shangri-la. 
"My father made people rich. Now I want to make them healthy and happy," he 
says.

The tower seems an odd way to do this. But the Wus argue that they have 
succeeded over the years by anticipating changes in the economic wind and 
gambling big on the outcome. They are trying again this time. Just in case, the 
outside world fails to notice, Huaxi has invited the international media to the 
village's 50th anniversary celebration on Saturday, when its skyscraper will be 
officially unveiled. To give visitors a better view, villagers have started a 
helicopter business – a first step in a planned expansion into commercial 
aviation and high-end tourism.

If anywhere in China can find new areas of economic expansion it is Huaxi. But 
even with the political connections and business nous, it is hard to imagine 
that the village will reinvent itself as a tourist centre – particularly given 
the advanced age of the retired party secretary who is its main attraction.

But Huaxi has proved its doubters wrong in the past. Ahead of the opening of 
their new skyscraper, the mood on the streets was optimistic. In the evening, 
locals, neighbours and migrants gather to dance on the village square, a huge 
expanse of concrete between 15-storey pagodas that pulsate pink, blue, green 
and yellow. One migrant labourer from the steel factory, who declined to give 
his name, said the tower would help the economy and create new opportunities. 
"Nobody would invest so much money in something that wasn't sure to be a 
success, right?"

Additional reporting by Cecily Huang.

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