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Archive for November, 2007



Round the World: 1st week a blur around Santiago, Chile

After a long flight, followed by a brief 20 hours in Los Angeles where I shared a couple of meals with a few dear friends (it was great seeing you!), followed by another long flight, finally I arrived at my first stop of trip: Chile.  In LA, I picked up my Dad, step-brother Allen, and step-mother Leticia, who would be joining me for the first week in Chile as it was Thanksgiving vacation back in the States.

You’ll notice that the first week was characterized by a lot of driving, hence the use of ‘blur’ in the title.  I guess my dad likes to drive.

The first two days in Chile we spent out on the Pacific coast enjoying the great view of the ocean and driving through the picturesque coastal towns of Vina del Mar and Valparaiso.  One of the best meals I had the first week was the very first lunch which came after a lot of lost driving around the hillside town of Valparaiso.  At Cafe Turri we were blessed with gorgeous views of the ocean and the coastal towns.  We were also introduced to the native drink, Pisco sour, an aperitif similar to a margarita but with more bite at the end, and to the staples of Chilean cuisine: lots of bread, usually served with salsa or butter, beef, seafood, avocados, and to a lesser extent, potatoes (fried, roasted, you name it), cheese, and cooked veggies served cold.  While the meat, bread, and potatoes were a welcome change from Chinese food, this combination became a bit repetitive and therefore I will probably always equate my first meal at Cafe Turri as the best in that first week.

When we parked in Valparaiso for lunch, we had to tip the guy who moved his car so we could park.  Then when we left lunch we had to tip the guy who was guarding the cars in the parking area.  Even as an American where tipping is common, this seemed a bit bizarre.  I soon came to learn that Chile is a country whose people are basically dependent on tipping.  You tip the housekeeper, both at the hotel and the one at your apartment; you tip the parking attendant, the breakfast table busser (most hotels include breakfast), the vineyard tour guide, the guy who fills your tank at the gas station (always full service), the waiter, and the bagger at the supermarket; you tip just about everyone who does something for you except the taxi driver.  Go figure.

Upon leaving the coast we drove four hours east and then south (2.5 hours drive south of Santiago) to the Colchagua valley, one of the main wine producing areas within Chile.  Some of Chile’s finest and most expensive wines come from wineries in the region.  We toured four wineries over two days starting with the lowest standard and increasing in quality and price of wine with each successive tour; each tour was approximately 1.5hours including wine tasting, which was usually a sampling of 3 wines.  An interesting note on wine production in Chile: Chile has a very unique grape called the Carmenere, which went extinct in France some years ago.  The Chileans were attempting to produce Merlot with the Carmenere grape but because they were unfamiliar with the grape they were harvesting it at the wrong time and were producing poor wine.  Then a Frenchman who was touring vineyards in Chile discovered the Carmenere in Chile.

The first day we had a late afternoon visit to Casa Silva which Silva which only in the last 15years has switched from producing bulk wines sold to other wineries for bottling to producing their own label of wines.  The next day we went to Viu Manent where we had a nice lunch and were driven in a horse pulled buggy for the tour.  But perhaps the highlight of the tour was tasting the red wine directly from the steel barrel during its fermentation process.  Let me just say I prefer red wine after its a little far along in the production process.  Later that afternoon we  went to Montes, known by the angel on its bottle and famous for its premium wines including Purple Angel and Montes Folly.  An interesting characteristic of the Montes winery is that its finest and most expensive wines come from grapes that are grown on a steep hillside.  Grapes vines grown on a hillside have to work harder to push the roots down to fine adequate water and nutrients, in doing so they become slightly stressed which causes the plants to grow stronger and grow grapes that are capable of producing finer, more complex wines.  The next morning we went to Casa Lapostolle , famous for the brand Clos Apalta.  This winer has one of the newest and most expensive facilities for producing wine in Chile.  The building is 6 stories therefore when moving the wine from one stage of the process to the next everything is done using gravity, as opposed to pumping which is said to damage the wine:  At the conclusion of that tour, we headed back north to Santiago.

Saturday night found us less two people who had to get back to the States by the start of the work week and with an invitation for the remaining two to a going-away party in Santiago.  So we put on our best, though later realized we were rather overdressed and headed out to a live music venue which doubled as restaurant and dance hall.  (Apparently Latin time (ie flexible time where everyone is at least 15-20minutes late) doesn’t hold true when attending a foreigner’s party.)  A night out with Santiaguenos (and some expats) was fun as they get into the music and can really dance!  I got to dance to my favorite salsa song, La Vida es un Carnaval.  I decided bars and restaurants are the only thing open on weekends in Chile and even those are frequently closed on Sunday night.  This was frustrating as I wanted to run a few errands in Santiago, such as buying a book on Buenos Aires, but alas, everything is closed!

Perhaps because everything is closed on weekends, many Santiaguenos head out-of-town, sometimes east toward the Andes, which is what we did Sunday morning.  By Sunday noon time we’d checked into a ranch called Cascada de las Animas in the Maipo valley and were getting ready to go rafting down the Maipo River.  After a safety talk entirely en espanol (ohhh, Spanish, don’t fail me now), we were outfitted in full wet-suits, splash jackets, booties, life jackets, helmets, and provided with paddles.  Oh dear, I knew the water was going to be cold when they started handing out the wetsuits; in fact, the water is mostly glacier melt, which makes the river swell to become Class IV rapids during the summer.  At times floating, at time paddling furiously, at times be pounded down the river, rafting was great fun, with the cactus-studded canyon extending up on both sides.  Dad sat in the front and had the luck to be drenched numerous times by the icy cold water.  I, on the other hand, had the smarts to sit in the back and get splashed only up to my waist and down my left arm.  The one-hour trip down the river was probably for me the highlight of the week in Santiago-area Chile.  The following day we had a 2 hour horseback ride in which Dad and I had a bit of a canter on the horses to see who’d get to lead.  Unfortunately, Dad got to keep his lead.  The ride took us up to a mesa where we had great all around views of the snow-tipped Andes.  Those mountains were stunning with the snow on them, but I hardly realized how little snow it actually was compared to, say, mountains in the Patagonia region of Chile.

Another driver took us back through Santiago to buy my book, the store was finally open on Monday and then on to the final winery with Dad: Concha y Torro.  CyT is probably the most well-known Chilean winery and also the most accessible from Santiago-just ride the metro south.  Concha y Torro’s most premium wine, and one that some consider to be the best to come out of Chile, Almaviva is actually partnership with the French winery Barron de Rothschild.  After sampling the Almaviva at CyT wine bar (it was really good), we drove back to our rather rustic cabin on the ranch, had our final dinner together, and prepared to part ways the following morning.  A surprisingly quick 1 hour drive Tuesday morning found me back at the airport ready to meet my mother and fly south to Patagonia…



Departing on a Round the World Trip

Tomorrow is the day I start my 3 month around the world trip! It feels like its been ages in coming, but actually I’ve been planning for a very short time compared to many people who spend minimum 1 year up to many years planning their RTW trips.

In fact, it seems like I did it on very short notice. We were the last 2 people for our January Intrepid Egypt-Jordan trip and we booked in the first week of October, more than 3 months in advance. When we booked our Antarctic cruise (Antarctic Dream Nov 29th departure) in mid-October, most of our first choices for Antarctic cruises were already full. Good thing I decided to book Antarctica and not just show up and hope to get a discounted last minute place on a cruise. By contrast, we were the first and only people booked on our February Intrepid Kenya safari for a long time such that we thought they might cancel it because of not meeting the minimum number of people.

Last week I saw the travel doctor in Hong Kong and got the vaccinations I needed, including Typhoid, Polio, and Yellow Fever; my arm did hurt! Apparently there is no effective vaccine for cholera and it you get cholera, its not that serious. The doctor recommend Malarone as an anti-malarial for Tanzania and Kenya. Malarone is a very expensive anti-malaria drug because it is the newest, most effective, and has the least side effects. The price offered to me by the clinic in HK was about US$6/tablet, compared with about US$5 in the UK, and US$2.5 in the US. Note, the price is per tablet because its so expensive!! and because it only has to be taken from 1-2 days before entry, during the trip, and the continued for 1 week after. Because of the price differential, I opted not to buy the Malarone in HK.

Further investigation into visas, namely a call to the Tanzanian Embassy in the US, showed that I can obtain a double-entry visa to Tanzania on arrival at the airport and its the same price as a single-entry. Excellent!

Tomorrow I will leave Shanghai at about 4:30pm and even with a brief plane change in Beijing (erghh, Air China is so annoying), will arrive in Los Angeles only a half hour after I left Shanghai, despite 15+ hours in transit! That means by tomorrow night, I will be in LA having dinner with friends. After a very brief night in a hotel, the next morning I will be having breakfast with friends before I go and get on a plane for another 11+ hours of flying, finally arriving in Santiago, Chile. This will be followed by another couple of hours car ride to my ‘home’ for the week. (Home is where your backpack is and where you lay your head, right?) Therefore, I will arrive at my destination 53.5hours (2days+5.5hours) after I left. Thank god for the stopover in LA!! I don’t know how people who do business between Asia and S. America (Japan-Brazil trade is big) manage those time changes, time loss, and connections.

Here I go around the world, weeeeeeee!



Starting a New Business in China (Pt 1): Legal Entity

For the non-lawyer among us, forming the legal entity for a new business can act as a small roadblock in the early stages. In China, formation can be a much larger roadblock, especially as a foreigner trying to navigate countless ministries, language barriers, develop the necessary guanxi, and just generally figure out how the system works.

Due to this, my idea was to have my business started in China in the name of a local partner who’d be responsible for all government, incorporation, and tax issues while leaving me with execution and operations side of the business. In fact, its much easier for Chinese to start a business (in China) than foreigners. Indeed, Chinese persons only need CNY1 to be able to start a business. Anyway, I thought this was the best plan, but then questions of selling, repatriation of profits, etc started to creep into my mind so I sought additional advice.

A fellow American entrepreneur in China suggested I incorporate a holding company in Hong Kong which would then open a wholly foreign owned subsidiary (WOFE) to operate in Mainland. This allows the HK parent company to be bought and sold without ever touching the subsidiary and therefore having to deal with title transfer in Mainland (apparently a nightmare).

I cross-checked this advice with another Australian entrepreneur in China who said this only works if you have operations in another country. According to her, the Chinese government doesn’t allow this method if you don’t have operations in another country, which I have no intention of having (initially, if ever).

Further research suggests I may not be eligible for a WOFE anyway as I intend to ’sell to the Chinese market,’ well, more accurately provide a service to expats (and some Chinese) within China but I guess that’s still the same. According to that same site, my local partner could act just as I had in mind: “The local partner […] may be a silent partner who was acquired by the foreign firm simply to gain domestic market access.”

A different site suggests that information is outdated and therefore “With China’s entry into the WTO, these conditions were gradually abolished and the WFOE is increasingly being used for service providers such as a variety of consulting and management services, software development and trading as well. […] The advantages of establishing a WFOE include: Capable of converting RMB profits to US dollars for remittance to their parent company outside China.” By comparison to the Chinese who can start a business with CNY1, a WOFE requires registered capital of USD120,500.

Guess its time to consult a lawyer. In the meantime, I welcome anyone’s advice who has had experience with this.



My new Favorite Chinese Airline is China Southern!

In my air travels both domestically within China and internationally on Chinese airlines, I have been incredibly disappointed.  After yesterday’s flight on China Southern, I realized I didn’t need to be disappointed with all Chinese airlines, just China Eastern and Air China, because China Southern does a great job and does things ‘right’ where the other two don’t.  For example:

  • China Southern did NOT make me walk on the tarmac in Beijing in 40degree F weather
    • CE & AC always let you freeze (or roast as the season may be) and waste your time by making you walk on the tarmac and then take a bus for miles to the terminal because they are too cheap to pay for a gate & a jetway
  • China Southern’s PA announcer spoke English well enough and clear enough I could actually understand what she was saying
  • China Southern’s plane was the newest plane I’d been on in a very long time
  • China Southern gave me a comfortable amount of leg room such that I wasn’t squashed into the seat in front of me
    • My last flight on AC was so crammed that I couldn’t open my laptop fully even when the seat in front of me was upright
  • My bag arrived on the carousel before I’d even gotten there!  Perhaps this is only a compliment to the fact that China Southern actually had a gate, but still it’s great service compared to the normal 15-20min wait I have with CE & AC.

China Southern certainly deserves praise.  My only 2 complaints were, the food was not very tasty (which I think is because of the airport catering company, not the airline catering company) and the flight was late (only 20min though).  All-in-all, I’m very pleased with China Southern and I’m glad to know that some airline in the Chinese airline industry differentiates itself positively.