Through an acquaintance at work we were introduced to a gentleman who helps run a VC firm that works to bring medical technology to China. His VC firm also wants to make sure they are doing something to help those in need, both in China and around the world. He (Bruce) was a very serious and passionate individual who spent 5 years in the US for graduate school and work, before returning to China. Our morning was spent talking with him about his firm and how they wanted to help us find a way, through new and changing Chinese regulations, to earn charitable dollars from Chinese individuals to be spent in China.
Philanthropy in China is new. First, it is exceedingly difficult to form a public charity for a host of reasons. The largest charity in the country is the social service sector of the government - the agency that provides social security, etc. Second there hasn't been enough personal wealth spread over enough people to make charity a viable option for almost anyone. Third, there has been no culture of giving, which is no small thing at all. All of that is changing and the government is both recognized it and may be on the verge of encouraging it. We, as an organization, are a nice fit because we have a long history (41 years) and have numerous contacts and partners within China. This means we are established, reputable, and can be funded to continue to do our Chinese work.
After a great lunch on a fantastic day - 60+ degrees and sunny - we returned to the office to meet with someone Bruce met through business contacts. This woman, Jane, spent over 10 years in the US for undergraduate and graduate school in business. She was very strong in hr convictions, boisterous, and spent a significant portion of hr college years playing endless hours of World of Warcraft, living in a MMPG virtual world. Her software company has designed a 3D game engine and is beginning to create games, but they really are looking to create a virtual world where players can spend and use virtual money to actually help charities. She has a very cosmopolitan view and perspective and sees this as not only a first step for China, but the future of charity and commerce.
To be honest, wrapping our heads around the way people playing in a virtual environment could (or would) help a charity was difficult, but fascinating. Given Jane's passion and proclivity to speak at length that took several hours. But then she let us know that this enterprise was actually her attempt at creating an entirely new type of monetary and banking system. One not constrained by a government or the forces of supply and demand. And she was already actually doing it. Already the debit cards associated with the game, where people earned and spent virtual dollars, are being accepted and used in the real Chinese world - to pay electric bills, buy coffee, etc. The implications are amazing - she was creating her own "money" in a virtual environment and, somehow, it is translating into the real world. Her focus is squarely on the philanthropic side of the endeavor - her philosophy is based on Jet Li's One Foundation. His idea is that if each Chinese person gave 1 yuan to charity each year, there would be over $1 billion to spend. A little from each person, in China, translates to a lot. Jane sees a similar way of raising large amounts of money. People buy avatar items all the time virtually and pay for them. One company in China last year, who sold virtual hairdos for avatars, made $1 billion. For pixels of color for imaginary people in a game environment. This works in China because virtual worlds and games are big, people are more than willing to pay for these types of items all the time, and the numbers support it - 640 million people with internet access and almost 200 million who play online games. The possibilities are staggering. Even if we earn 10 cents from a purchase, the numbers work in our favor to be able to potentially raise extremely large sums of money, but only a little from each person.
Jane suggested we leave the office and go get coffee next door at the Shangri-La hotel. We got into her personal car and her driver took us over to the 5 star hotel that simply reeked (literally - when we walked in the smell was overpowering) of old world China. Women dressed in traditional garb serving and opening doors. Yao Ming's wedding reception was held here. We sat in the lobby and she ordered Pu-erh tea for us. Known as the King of Teas, there have been times where these leaves have been used as currency in the country. And for a long time only the Emperor and his family were permitted to drink it. The tea comes from a very small region of the Southern part of the country and some of the trees it comes from are 1,000 years old. It is expensive and gains value and esteem over time. 60 year old tea can be $1,000 for a cup. We drank 10 year old tea. And the service of it, as is the case in China, was elaborate and beautiful.
Over tea we learned that Jane, after graduate school at Harvard, worked for the Chinese government in NY buying US treasuries on behalf of China (as she says, they essentially "own" us now...), before working with George Soros and Jim Rogers after the Quantum Fund and making an immense amount of money. She then started, and sold, several companies on her own. She was exceedingly wealthy and looking for a way to give back- and to allow others to help society as well. She sees personal philanthropy as a way individuals can help, and China as the country and people to lead the world into the next phase of social philanthropy through the use of online virtual communities. Fascinating stuff, to be sure, but extremely heady and, at this point, theoretical. Where this goes can only be guessed at right now.
Tomorrow we are off to Changchun. I have no idea what kind of internet access I will have there, but will post more as soon as I can!
Enjoying your blogs. Sounds like a fantastic trip so far!!
ReplyDeleteBy the way, I can't see the pictures either!!
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