The Mall of the World

What a Hong Kong shopping complex tells us about the true nature of globalization.

BY GORDON MATHEWS | NOVEMBER 25, 2011

The dilapidated, 17-story building known as Chungking Mansions sits in the heart of Hong Kong's glittery tourist district, on the busy shopping thoroughfare of Nathan Road. But visitors entering the building may be surprised to find themselves in something that looks much more like the markets of Kolkata, Kathmandu, or Kampala -- or all of them at once. There are Africans in bright robes and hip-hop fashions, Pakistani men in skullcaps, young Indonesian women in their slinky best, European hippies, and Indian and Nepalese touts offering a room, a watch of questionable authenticity, a suit, or hashish.

Chungking Mansions wasn't always a low-budget United Nations. Built in 1961 as a luxurious apartment complex, the building soon fell into disrepair. By the late 1960s, it had become the haunt of American GIs on R&R from Vietnam looking for prostitutes; in the decade that followed, its cheap guesthouses became a haven for backpackers on a budget in a newly prospering -- and expensive -- city.

By the time I first visited the building in 2006, Chungking Mansions had evolved into something else entirely. Over the past 15 years, south China's emergence as the world's manufacturer of cheap goods, coupled with Hong Kong's relaxed visa regulations, has turned Chungking Mansions into a central hub of what I call "low-end globalization." For instance, 20 percent of the mobile phones now in use in sub-Saharan Africa, by my estimates, have passed through this building. The backpackers are still to be found in Chungking Mansions, as are, increasingly, tourists from mainland China. But the complex is now primarily the haunt of traders from around the world. Entrepreneurs from South Asia, sub-Saharan Africa, and beyond have come to seek their fortunes, buying cheap mobile phones, computers, watches, and clothes from Pakistani, Indian, and Chinese vendors. They hawk their wares alongside Asian and African asylum-seekers looking for refuge and among Indian temporary workers flying in from Kolkata. When we think of globalization, we tend to think of the work that happens a mile away from Chungking Mansions in the glassed-in skyscrapers of Hong Kong's financial district, the province of multinational corporations and their attendant armies of lawyers and consultants. This kind of globalization has no doubt remade much of the world we live in. But over the five years that I have spent living in and studying Chungking Mansions as an anthropologist, I have seen a different form of globalization. The time I've spent listening to the stories of African traders and Pakistani merchants and sleeping in the complex's guesthouses -- from the roach-infested to the flatscreen-TV-endowed -- has added up to an advanced course in the intricacies of developing-world economics.

Store managers and clerks in Chungking Mansions come from all over the world, but most are South Asian. The building is the only one in Hong Kong with free-to-air South Asian TV: Indian, Pakistani, and Nepali TV channels available to everyone. Bollywood movie stalls and South Asian grocery stores and restaurants abound. The mobile phone trade in particular, carried out in a hundred wholesale stalls on the building's second floor, is dominated by Pakistanis. It is said that in the 1990s, Pakistani gangs roamed the building intimidating store owners, but by all accounts this is not the case today. As one Pakistani phone stall proprietor told me, "Why should anyone extort money? We can make money much more easily by selling mobile phones!"

In the last two years, more mainland Chinese have opened stores in the building, often with direct links to Chinese factories, seeking to undercut the prices of the Pakistani middlemen. But their businesses often fold on account of the language barrier --Chungking Mansions may sit on Chinese soil, but its lingua franca is English. The Chinese merchants' relative ignorance of the world beyond China hurts them, too. As one West African trader maintained to me, "Chinese have been in a bottle too long." Nonetheless, they may be the wave of the future; as a Pakistani merchant in Chungking Mansions said, "Between the Chinese and the Africans, maybe in a few years there will be no room for the Pakistanis anymore."

I spent many months behind the counter of a Chungking Mansions mobile phone stall with my Pakistani friend Mahmood, who sold phones primarily to African traders. None of the phones on offer had price stickers. Instead, a trader would approach and ask the wholesale price of a particular model. Mahmood would then ask about a comparable model. If the trader knew nothing of that model, Mahmood raised his initial price 10 percent, based on the customer's ignorance of the game. But if the customer recognized the model that Mahmood had mentioned, Mahmood knew to keep his price low, for he had a worthy adversary. From there, the haggling would take days, with Mahmood and the trader making offers and counteroffers until the last possible moment, when the trader's van was waiting outside.

ANTONY DICKSON/AFP/Getty Images

 

Gordon Mathews is a professor of anthropology at the Chinese University of Hong Kong and author of Ghetto at the Center of the World: Chungking Mansions, Hong Kong.

AS456

10:33 AM ET

November 25, 2011

I stayed there in March last

I stayed there in March last year and it was such a culture shock. I remember having to wait in that lobby for aaaages for an elevator in the stinking heat and getting hounded by the touts to stay in their guesthouse. kompiuteriu remontas Fortunately I had a private room in one which made the whole stay a lot more bearable.

Did you have a curry at Butt Food Centre, kind of to the right and on the ground floor? So so good.

 

GORDON MATHEWS

10:56 AM ET

December 9, 2011

Yes, Butt's is awfully good,

Yes, Butt's is awfully good, but very hot! I always got a private room myself--

 

TORO

8:30 PM ET

November 25, 2011

Informative

Very interesting article - you do what, I think, any good anthropologist does, and paint a tremendously vivid picture of the social life of this area. For those of us academically detached from on-the-ground development, you offer a wonderful service. Thank you.

 

GORDON MATHEWS

11:04 AM ET

December 9, 2011

Thank you! The Foreign

Thank you! The Foreign Policy editors helped a lot in recasting my writing for this medium. But I hope the picture is still vivid enough in my book. A big problem with anthropologists is that while their research is fascinating, their writing, constrained by academic norms, often isn't. I'm trying to break free of that to some extent, although my reach may exceed my grasp.

 

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CHULK90

4:32 PM ET

November 27, 2011

A Fresh Insight

This article is among the best FP articles I've read. Unlike other articles, which mostly focus on issues that dominate mass media, this article casts a fresh light on something we've overlooked.

It's really amusing how this "low-end" side of globalization has been a driving force behind bringing third-world countries, especially those in Africa, to the global town but we've never seriously looked at this topic.

This is why I like Foreign Policy, and I look forward to reading more articles from Mr. Gordon Matthews.

 

CHULK90

4:34 PM ET

November 27, 2011

Correction

Dr. Gordon Matthews *

 

CHULK90

4:38 PM ET

November 27, 2011

Dr. Gordon Mathews *

Dr. Gordon Mathews *

 

GORDON MATHEWS

11:10 AM ET

December 9, 2011

Thanks!

Thank you--I hope to write more in the future. Yes, we have overlooked "low-end globalization" or "globalization from below," but this really is the only game in town for poorer countries across the globe. By the way, no particular need for "Dr."!

 

LGPHONE1

6:36 PM ET

November 27, 2011

Interesting article topic

Malls sure seem to be going up everywhere. No surprise they also are getting a lot bigger and more luxurious.
It reminds me when I was a kid and would spend a lot of time in the mall.

Virginia Reckless Driving Lawyer

 

PIZZAHUT

12:05 AM ET

November 28, 2011

Interesting Article

Awesome work.
The shopping mall construction boom in Asia has attracted a good deal of international media attention during the past few years. Eight of the ten largest malls in the world were in Asia in early 2008 and several more mega-malls in China and the United Arab Emirates are under construction.
The art-deco Golden Resources Mall, located near the Fourth Ring Road on Beijing's west side, opened to great international fanfare October 24, 2004. At 560,000 square meters (6-million square feet) of total floor space, it was briefly the largest shopping mall in the world. The South China Mall in Dongguan has since eclipsed it in size, but the Dongguan mall is only partially occupied with stores.
Two other Chinese malls were under construction in 2009, the Triple Five Wenzhou Mall and Mall of China (Qingdao), with projected total areas of 930,000 square meters (10-million square feet) each, will be even larger.

The West Edmonton Mall, completed in 1985 at a cost of $750-million, remains the largest enclosed shopping mall in North America, but several malls open or under construction in China and the United Arab Emirates are larger.
The mall encompasses 570,000 square meters (5.2-million square feet) of total floor space, 800 stores (including 8 department stores), a 360-room hotel, and 110 restaurants and eating places. Its list of amusement places is also impressively large. There is a full-scale amusement park with 47 different rides, an ocean-wave swimming pool with sand beach, an aquarium, and a miniature golf course. If all that is too much for you, enjoy some peace and meditation in the chapel--so long as a wedding is not in progress.
The Mall of America, with its 390,000 square meters (4.2-million square feet) of floor space, is the largest shopping mall in the United States. It was completed in 1992 at a cost of $635-million.
The mall contains about 520 stores on three main levels and has 2.3 miles of primary corridors. The fourth floor is an entertainment district, with restaurants, movie theaters, and night clubs. Occupying the center court is Nickelodian Universe, a full-scale amusement park with a roller coaster and 20 other rides. The mall attracts more than 40-million shoppers per year, who spend an estimated $1-billion annually.

Thanks

kitchen clocks | Kettles

 

WILBUR2BROOKS

10:10 AM ET

November 28, 2011

well written article

I had visited chungking mansion couple years back and it was a resourceful place to get your things done from exchanging currency to getting some cheap food and even some good taxi services .As most of hong kong is expensive place.here we can find some good deals.

 

GOLDSILVERGUY

12:01 PM ET

November 28, 2011

So this is how cheap Chinese

So this is how cheap Chinese knock off goods are getting distributed to the whole world. In the backpacks of small traders. Globalization has done nothing but hurt people who are small business owners. Folks like myself, I'm always competing with people from India for my small business website design" services. Which totally sucks.

"In the last two years, more mainland Chinese have opened stores in the building, often with direct links to Chinese factories, seeking to undercut the prices of the Pakistani middlemen. "

It's funny that Pakistan and India are now in competition with China for cheaper labor too. Being in the IT business myself, I've noticed a lot of call centers moving from India to China as well.

I am not sure we should call this globalization, more like China is the last depot of cheap ass goods of the whole world.

 

RICK1984

1:58 PM ET

November 28, 2011

Globalization at its best

This, in my opinion, is globalization at its best. Its not only happening in Hong Kong, but also in other parts of Asia, especially Malaysia, Singapore, Thailand, and other developing Asian nations. Buat duit online.

 

QUEENSTOWNER

11:50 PM ET

December 2, 2011

Chinas malls astounded me

I have had the opportunity to visit China twice in the last while for a period of 3 months. I found myself drawn to these amazing malls, where you can purchase products at prices I couldn't beleive. There were whole multistorey buildings with hundreds of stores on each level, all offering just one type of product. e.g womens clothing, shoes, electronics etc.

I have never been much of a shopper but these malls absolutely facinated me.
I soon realised that what I was used to seeing at home in the stores was really inferior and over priced. What I was able to buy here in these wholesale malls was quality at an affordable price. You can buy individual items, or in bulk for less again.

I started to wonder who dictates what we should be wearing and why the price tags at home? I bought what would have cost me thousands of dollars at home for about $800 of my own currency while I was there. I saw that the same applied to house wares and just about anything else you can think of.

It was mainly the quality of the products i bought which stunned me, as I had grown to beleive that it was mainly cheap junk that was made in China. It turns out I couldn't have been more wrong. The problem we all face is that the buyers of goods for our stores either have no taste for quality, or they just want such huge markups, that they only buy the barely acceptable items for us to purchase from them.

I saw a photo from an archive this week about what China looked like 100 years ago. I know they have only started to get ahead for the last 25 years, but wow! what amazing progress in that time. Everywhere old buildings have been demolished to make way for modern skyscrapers and highways.
Shops and schools are everywhere. I have never seen so many people in one place at a time as i did in those malls.

Not only do the country folk move into town for work, but there is an increasing number of foreigners moving in to market their wares, as described so well in the main article. Like most countries who experience this, there is some resentment amongst the locals. Interestingly, the only bad experiences I had in China were from non Chinese.

These non Chinese have to be more enterprising than the Chinese,(a hard task) to get ahead. So they all support each other and end up doing the same type of businesses marketing there products at the minimum they can to get ahead. Bartering is an essential skill, and doing a bit of research ahead of time will save you a lot of money.

I highly recommend visiting these malls as a cultural enlightening, because for me coming from a small country called New Zealand, I had never experienced anything like it before. I had lauged when some Chinese I met who had been visiting New Zealand said to me ,Where are all the houses?
But when I visited China and Hong Kong, I understood why.

When I compare China and Hong Kong, with their smog, people, cars,shops and buildings to Queenstown New Zealand with its small population, pristine wilderness, outdoor activities and laid back lifestyle.
milfordsound I do think I have it better, and I am so grateful to China for its workers and their drive to be better and help themselves and the world with their efforts.

The world is changing rapidly around us, and I am grateful for these perspectives, as I feel like an outsider sometimes living so far away from the stresses of such an environment. Great places to visit, but not to live.

 

JE777

8:56 PM ET

December 4, 2011

U.S is falling behind - that's true nature of globalization

What a Hong Kong shopping complex tells us about the true nature of globalization is that we are falling further behind in the U.S. with our inability to compete globally due to our economic situation and subsequent jobsetc issues. Hopefully, we will work ourselves out of this mess and begin creating more manufacturing and thus jobs in the U.S. Then maybe we will see an article about how a new U'S mall is the true nature of globalization.

 

JACOB84

8:00 PM ET

December 10, 2011

Painfully true...

Seems like half the stores in the mall near me are either gone or are in the process of having closeout sales. Yet it seems that every time I look up there is a new construction site going up.