Rich Chinese People Perks
When Zhang Rongde ponied up $12 million to build a steel plant in this dusty town in central China, local officials offered the out-of-town entrepreneur tax savings, cheaper electricity rates and the title of “honorary citizen.” In Qinyang, Henan, he received red booklet that was like a get-out-of-jail-free card. If stopped by police for a traffic violation, Zhang could flash the passport-sized pamphlet and officials would waive him along.
The booklet also gave him hefty discounts at medical clinics and priority for his children’s enrollment in the town’s best schools. Qinyang would go to such lengths to reward investors speaks volumes about China’s economic development today — and the price that’s paid for it. The honorary citizenship scheme was exposed late last year and halted by Beijing, but not before it sparked outrage among Qinyang residents. Qinyang’s program was launched quietly in 2004, part of a drive to lure out-of-town businesspeople to this city, northwest of Zhengzhou, the provincial capital. Like many places in Henan province, China’s most populous and one of its poorest, Qinyang’s economy had languished as investors flocked to more developed areas along the coast.On a big billboard near the town center, Qinyang’s priorities are made clear: “Leaders serve the public; departments serve grass roots; government staff serves taxpayers; entire society serves investors.” In Chongqing, public security officials created a special service to protect 128 entrepreneurs, even though fewer than 30,000 police officers serve the entire metropolitan population of 32 million, according to China’s official news agency. Zhangzhou, in southeastern China, gave the children of the top 100 taxpayers 20 extra points on their high-school entrance exams. Whoa! Those are way beyond perks.
