Yellow Cows and Gray Income – 黄牛和灰色收入

Greyincome.2.Credit.1421consulting.com. Consulting Group
Is Gray Income really just a “Fact of daily life in China”? Credit: 1421consulting.com

You’re late to the game, the lines for tickets are ridiculous. You’re losing hope of getting in and watching your favorite team. Until some dude in a ball cap and jeans saunters over to you and discreetly taps a bag he’s carrying and mumbles, “Tickets, man, need tickets?”

Buying from scalpers is a gamble, no doubt, but I’ll be honest, I did it with a few friends when we almost missed a game in South Korea two years ago. The seats were crappy, but we moved around and made do. Before that shady guy showed up we thought we’d lost out on chance to see the Twins playing, but it all worked out.

China has its own kind of scalpers, and just like everything else in this country full of contradictions, they take it to the extreme. Huang Niu, Yellow Cows, is the Mandarin term used to describe these folks who hang around bus and train stations. We’ve used them here from time to time, but never as a first resort.

黄牛。1.credit.soho.com
No body wants to do anything about the Yellow Cow in the room…. Credit: http://www.soho.com

Where China takes this idea and goes to the nth degree is at the banks, hospitals, and other civil service industries.

About a year ago a video on WieBo (Chinese Twitter) surfaced and brought this issue into the public forum. A young woman and her mother surrounded by patients stand in line at a hospital, and the young woman is yelling at this older lady. The older woman is one of the people who wake up early, get to the hospital and get the first tickets to see the specialist doctors. She’s not sick at all, and instead sells the ticket to the highest bidder. In the video the young woman, who is seeking treatment for her sick mother, yells at the scalper for scamming people like this. The scalper calmly replies that she does all the work. She gets up and comes early. The payment is for her work and time. Very practical, right?

Where this practicality crosses the line into illegal activity is when the hospital staff and the scalper collude on the practice. This is the part that is very hard to pin down because no one admits a thing. The specialists are the ones most want to see, but there are so many people who want to get into see them that it is pretty hard. Unless you get there early enough and are lucky enough. The other way is to know someone who can pull some strings.

That’s when these scalpers use their guanxi or connections with the workers to snare this sought-after ticket, all the while keeping it from other patients who should receive it. Totally wrong and totally illegal. But hard as hell to prove on a case by case basis.

Greyincome.1.Credit.China Medical News
It’s all about those Red Maos.  Credit: China Medical News.com

The banks are another story altogether. More complex, these particular scalpers are called Zhong Jie, intermediaries, and perform more than just getting people quick tickets. The formal sounding name is fitting as you realize how institutionalized the whole system truly is. Read: Corrupt.

These Zhong Jie are customarily middle-aged women, but there are men among their ranks. Here’s how they work and how to engage their services. And why they seem like a necessary evil in the present day China.

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Credit: adst.org

In China, any official civil service that a citizen may need to use is rendered into a labyrinthine obstacle course that often leaves a person sweating, tired, and at their wit’s end due to the farce that is bureaucracy here. License, renting an apartment, paying utilities, buying property, banking—doing any of that here can make even the most self-actualized individual want to run into traffic.

Generally speaking, at any official building you can run into Zhong Jies. Stand in line for a minute or so and they will approach you on their own. Look around and you’ll find them standing by doorways or in the corners of the room chatting up the security guards. They are discreet but direct. They tell you what they can do and their price. You take them up on their offer or brave the “system” on your own.

The world of bank loans is how I entered unknowingly into this cycle of institutionalized corruption. A while back, my wife took out a loan to help her folks with a new apartment. We went to the bank and outside the doors a plump fifty-something-year-old Chinese woman with two purses met us. Xiao Ming talked to her respectfully, addressing her by her sir name with the title “Jie”—sister—after. Apparently Xiao Ming had met this woman at the housing bureau office. I had no idea who this lady was, but everyone else in the bank did.

As I quickly found out, she was a Zhong Jie, our intermediary for getting the loan at the bank. In the span of an hour and a half, she cut through a dozen lines, joked with workers while handing them our documents and a bit of money discreetly tucked between forms, and all the while assured us that everything was okay. I didn’t understand much of that morning, but it was clear that our Zhong Jie had saved us hours and hours of standing in lines and the guesswork of unclear instructions that the bank seemed to give just to screw with people. I saw several people waiting in lines, only to get to the counter and be told they’d filled out the wrong paper and needed to do it all over again, and, yes, wait in line. She helped us avoid all the pitfalls. It was like watching a slight of hand act where there were so many hands to keep your eyes on that eventually I just gave up and, when our Zhong Jie declared that a loan agent would call us in a few days, I just chalked it up to magic.

Come to find out later that Zhong Jies spend all their time at banks building up guanxi with bank employees. This is pretty much their “day job.” They do favors, give money, share food, anything to ensure a working business relationship. They are not employees at any of the places for which they provide services. The Zhong Jie then directs her customers to her “friend” and takes her cut (we paid 1,000RMB for our Zhong Jie’s service), and the bank worker also takes his share. But his comes from the loan itself. You see, there are set interests rates on loans, of course. These are annoying, but legal. The loan agent takes an extra percentage from your loan as his personal payment for providing you with the loan. This amount is divided up among the individuals involved in the process, like tip sharing at a restaurant. In Xiao Ming’s case, the bank worker took out 2 percent.

This happens all the time, in many banks around China. And is completely illegal.

Inthenameofthepeople.1.Credit.SouthChinaMorningPost
You can trust us. We don’t know how to smile. Credit: China South Morning Post

A popular Chinese television show recently shed light on this issue. That’s happening a lot lately with T.V. shows. Love that directors are pushing the envelope more and more! The specific show I’m referencing is called “以人民的名义” – In the Name of the People. This is seriously one of the most popular shows in China right now, and it’s all about the government crackdown on graft. President Xi’s mission of weeding out the corrupt and upholding the “Chinese Dream” has become hot entertainment fodder. I’m sure this is just the beginning of a series of shows where greedy officials get taken down by Party-loving (that’s a capital P) detectives and watchdog citizens. Despite the heavy hand of the Communist Party all over the show, it is still pretty engaging. Relevant to this blog post is the episode where a bank manager gets busted for the exact process I just described, and she claims that it is such a widely practiced procedure that she had no idea it was even considered corruption.

How does that happen? In the case of these new Chinese shows, art is imitating life. At least the gritty, corrupt elements of it. It’s basically a mandate from the government. So then my question is how in the hell do people get so immersed in this septic mess of criminal behavior without even knowing it’s illegal?

This isn’t a new phenomenon. Back in 1978 when China began “opening up” economically, they coined a term for this sort of “off the books” income stream that emerged: Gray Income.

Teaching, tourism, the funeral, and medical industries are all areas that generate substantial “grey income.” This is not an exaggeration. Xiao Ming’s cousins just gave birth, and a few months ago while I drove with them to a hospital they got talking about how they have to give the anesthesiologist and the doctor delivering their babies hongbao to ensure they do a good job. I couldn’t believe what I heard. Questioning them, I found out that, it’s true, they felt they had to give the doctors and nurses red envelopes packed with money in order for them to DO THEIR JOBS. When I lost my cool over this news, everyone in the car just looked at me like I was a naïve child.

One of the cousins tried to give a red envelope to her doctor for a surgery, and when the surgeon turned it down it was a big deal. Turns out, the doctor just needed a favor from this cousin’s husband (who is a police officer) a short time later. Waiving the red envelope fee was her way of ensuring the favor would get done.

I used to live in an apartment where a public school teacher was a neighbor. Every weekend her place was packed with students. All day long I’d hear kids going up and down the hall to one of her weekend “classes.” Moonlighting like this is illegal, but that didn’t bother this teacher. And it doesn’t bother so many others that do the same exact illegal thing.

Some people caught in the cycle, people like those interviewed in this NPR article claim they can’t change the system, and to survive they need to play the game. This “fact of daily life in China” is alarming not because it is happening, but because EVERYONE believes it’s wrong on an ethical and moral level, but believe they can do nothing about it. So nothing changes.

There’s no doubt that people benefit from expedient service using Zhong Jies and Huang Nius. Heck, it’s downright entrepreneurial of them to use their time this way. But they’re near the bottom of the system that goes up and up. And that system is corrupt.

The people at the very bottom are the ones who need those loans, need those workers to do their damn jobs honorably.

The people at the bottom are people like me and my wife. Like you, probably.

Unless you’re a guilty bank worker in China, of course.

Five Color City – 五彩城

Because WHY NOT have a giant-ass cat holding a pen as a security guard!
Because WHY NOT have a giant cat holding a massage stick as a security guard!

You can tell the good girls from the bad girls here by gathering a few basic facts, I was told about five years ago. The facts may be closer to stereotypes than reflections of real people, but who doesn’t listen to stereotypes once in a while?

A young Chinese woman who smokes – bad egg.

Tattoos – Watch out!

If she admits to visiting Five Color City frequently – Oh, boy!

FCC is about two or three blocks of bars, restaurants, massage parlors, and a few random civil service offices. Tucked between the Qing Gui (Light Rail Train) on the north and a large public square used by retirees at night for their Square Dancing on its south side, Five Color has a way of feeling like the center of Kai Fa Qu when you’re standing in the midst of it all.

The Center
The Center

Growing up in America where smoking, tattoos, and drinking with friends out at night are just common, none of these “Bad Egg” traits stood out to me as indicative of moral depravity. China, for all its robust growth and headlines touting progress across the board, is still a nation of very traditional values – that’s what most people say when you ask them.

Retirees getting' their groove on.
Retirees getting’ their groove on.

Really, it’s a country playing tug-of-war with itself. One side yearning for a wide open field of complete and utter modernity and the moral ambiguity that goes with it while the other tries to anchor their end of rope in place to something like good old-fashioned Confucian principles with Mao’s flavor of Communism laced in there for good measure. Enter the wide-ranging foreign influence along with humanity’s natural inclination to make a buck and you’ll see why a place like Five Color exists.

Advertised in the late eighties as a tourist spot in Dalian, Five Color City drew crowds of families because of its trippy architecture and wholesome vibe. They even had a Western Restaurant! In time, though, the neighborhood-sized attraction lost its appeal, and it shut down in the late 90s.

When the doors began to open again in the 2000s it was for a different clientele. International companies and their foreign workforce needed a watering hole, and FCC provided it. Bars and restaurants opened, and soon the ridiculous facades of the buildings resembling something Disney or Tim Burton might see during a particularly rough trip on LSD became the backdrop of many, many drunken shenanigans.

“Yes, I’ll have the room where Tinker Bell overdosed, please.”

Every few months a bar closes and another one takes its place – often just a name change marks this event. Painting, remodeling, cleaning are not requirements. In my time in Dalian I’ve seen at least a dozen new bars come and go. Only a handful seem to have any staying power.

Anchorage, Cafe Vienna, Holmes, The Nagging Wife, The Lazy Hog, Gold Bar, Memories – These are basically the only ones still around from more than five years ago. A few Japanese bars may make the cut, but even they turn over just as often (And they don’t like non-Japanese speakers). The bartenders working these joints are often young girls in their early twenties. In the summer you’ve got your college kids looking to either improve their English or up for some partying. Throughout the rest of the year, though, the girls tend to be a bit more worldly.

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            The shelf-life of a Five Color City employee is about 1-2 years. Anymore and the place works its evil, toxic poison on even the sweetest, bright-eyed cutie. Those in the life much longer than that have a way of aging physically and mentally much faster than they should. Some names come to mind, but I won’t call them out here. A few girls play the seasonal game where they pick up shifts strictly around the holidays, not totally succumbing to the effects of being a full-time bargirl. Probably the best route if you’re going to be a part of it, I suppose.

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Start making friends with some of the owners and it becomes apparent that there is a network of power and influence that runs through the entire place. Some bosses command more respect than others while still others form alliances that benefit their bars. I have a friend who does shows. He’s played all throughout Dalian, but early on in FCC one particular bar owner sunk her claws into him and claimed him. He is unable to work in any other bar in Five Color without serious consequences – a threat he feels would actually be enforced. Girls jump ship occasionally, pulling the clients they’ve befriended (or bewitched) along with them. Behind the scenes, however, they all have a common foe.

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All the bars give the local cops red envelopes in order to be left alone. A few bar owners have complained that around this time of the year the money gets hard to pull together because many of their foreign customers are traveling for the holidays and the police want bigger slices of the pie. Despite this overhead, bars keep opening all the time.

Sometimes the “Bosses” aren’t the owners, and figuring that out adds another layer.

Turns out, a lot of Japanese or Chinese business men like to be the money behind some bars, but they pick a pretty girl to be the face. Flower, the “boss” of Rainbow Bar a few years ago swore up and down that she owned the bar. Bubbly, charismatic, and just suggestive enough to keep folks coming back, Flower played her role well. She had that ditz thing down pat, but come closing time she could tally tabs and offer advice to her girls like a pro. She almost had me believing she was the sole proprietor until she closed down the place to do some remodeling one day and I caught sight of a shady looking Japanese guy paying the workers.img_6836

Sugar Daddy, of course.

The foreigners – those that stick around a while – become personalities around Five Color, too. The obnoxious Australian Seaman Jimmy ran Anchorage with his “wife” Summer when I arrived, but has since disappeared. Jolly enough, the guy never had a shirt on and could bullshit with the best of them. He cut off mid-story once to leap into a fight that had broken out between some Russians and Chinese in the bar. Barely got out of there alive myself. Turns out that was a common occurrence for Jimmy. Probably why he’s not around still. Tall, charming, English Dean and Summer got together shortly after that. He had a hell of background and an ex, though–don’t we all? He told me about it a few times. The owner of a local restaurant, she would fight with him in other bars, often breaking windows and glasses. That ran its course and he finally managed to reinvent himself as an entrepreneur without needing to set up shop in some high-rise office . He helped Summer remodel the bar, got back into shape, and stopped punching people. He’s still here keeping Anchorage afloat. Love running into that guy!

No more picking on fellow foreigners…

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Then there was that one period of time with all the “Nanas.” For a while it felt like every other girl had the name! “Lily” had the same thing going on for a while. The odd names – Flower, Apple, Seven – never get old. They may be attractive in the right lighting, but tread carefully, friends.

Of course there was a stretch of time where I walked into several classic traps.

Flashy, sexy Eva flirting with the whole bar, but secretly giving eyes “only to me.” Drank like a sailor throughout her shift, and then balled her eyes out when I walked her home. Oh, how I wished there was more beneath that coarse exterior. For a while, I thought so, but in the end, her stories of wanting to spend a year in a different city, not getting along with other women, and the jaded heart just got pathetic and transparent.

Aggressive, worldly, and direct – Jess seemed like she could be fun to get to know. Turns out she just wanted a new wardrobe and her last victim had finished a contract with one of the multinationals around Dalian. Ah, so many of the women actually fit this mold. Sad, but true.

If you’re looking for a relationship you’re better off picking a coffee shop or even the cold approach in a mall. Go the Chinese route and have someone introduce you to a single friend, why don’t ya? Pepper in some Mandarin if you can, and good luck. Bars – though I technically met my wife in one – are not going to be harems of the best China has to offer. And likewise, if you’re always at the bar you’re putting yourself in the stereotypical foreigner category yourself. Been there, so I know. My life in China got so much better after my year of drinking five nights a week.

Brothels don’t really exist here like they may have back in the day, but there are of course a number of ways people get what they want. Shady massage joints litter every Chinese city. You know you’re in trouble when you walk by their front doors and a smiling face peaks out and says, “Massageeee.” The more discreet girls will doll themselves up and sit in one of the bars I mentioned above, waiting for their Mr. Tonight. They’re the ones at the corners, nursing a cocktail for hours or a hot water with a lemon in it just to keep them alert for business opportunities. Unfortunately, these ladies tend to pick up the lonely foreigner around midnight whereas the Chinese businessman will arrange his girl before even commencing on his night out. You can always tell. Much older man with a super young and flashy girl. They barely touch each other the whole time, but she never leaves his side. He ignores her completely, save for a place to rest his hand. She says not a word to him or his buddies, choosing instead to chat with the female bartenders. They leave together of course, but he’s so wasted it makes you wonder if he’s going to seal the deal or if it was all for show, for mian zi, in the first place.

The whole place is that way – one big show.

At night the lights come on, the actors assume their roles, and the performances begin. The cracks in the paint and the ramshackle jimmying of doors or tables is overlooked. Vomit on the street is sidestepped, and the sound of someone voiding their bladder on the side of a building is ignored. Lies are told and swallowed, conversations long memorized like bad scripts get recited, and the motto of every bar in the country rings out ad nauseum – gan bei!

            For a long time Five Color City was my hangout. I’d work, hit Starbucks, and then grab a few drinks at one of the bars. Much of my Mandarin foundation came from bartenders or random Chinese drinking partners. Some of my strangest, most entertaining, and loneliest nights happened in FCC. Backflips off a dais at a dance club, cutting my hand open doing a roundoff in the street, bar fights, getting swept up in crowds of Japanese business men out for the night, feuding bars, and, of course, meeting my wife through the machinations of a mutual friend trying to set me up with another girl.

And Five Color almost ruined that relationship from day one. Walking down the main drag with Xiao Ming on our first date at least half a dozen bargirls leaned out their doors and called out to me using either my English name or my Chinese name at the time. Luckily Xiao Ming laughed it off and chose to think of me as a “Five Color City Star,” a reputation I’ve since tried my absolute best to squash and bury. With the turn-over rate of most places working to my advantage, I’ve almost succeeded.img_0131

That advice I got more than five years ago may not be the Gospel Truth – hell, even if it was, I wouldn’t have listened completely, who would? – but there is a lot that can be said about moderation and a set of standards. If I’d had either of those five years ago I’m sure I’d have bypassed a lot of trouble, but I’d also have nothing I can shake my head and smile about.