Chengdu, one of the most important economic centers, transportation and communication hubs in Southwest China, is located only 80 km away from the epicenter of the devastating 12 May earthquake. Though it was a human tragedy in which 90,000 died or are missing, the “Hibiscus City,” with its popular teahouses, escaped the worst of the damage.

“I was born in 1960 when China was a very poor country. Then there was the Cultural Revolution in the 1960s and 1970s, so we couldn’t study further,” Chen says. But that was a very long time ago. Now Chen Ping is president and general manager of the Chengdu Huifeng Diamond Tool Co. Ltd., a privately owned company that manufacturers cutting equipment for marble and other stones. Her parents set up the core company in 1978; she set up the company in its current form in 1991. It now has 152 employees and is the leading company of its type in China. Over 90% of its output is exported to more than 30 countries.

In Chen’s 48 years, she has witnessed many profound changes as the world’s most populous nation has emerged from poverty, old-style Communism and the ravages of the Cultural Revolution, into a strong, expanding country where “capitalism with Chinese characteristics” is the current order of the day. Parallel to China’s development, Chengdu grew as well. Since 2007 the city’s population is 1,100,000 and the average income increased by 2,648 RMD ($388) to 21,312 RMD ($3,121). Chengdu’s economy is expected to grow by 12% this year. “I’ve watched Chengdu change from a small city into a big, modern, international metropolis. Sometimes I feel like I’ve just arrived from the countryside. I don’t recognize all the places,” she says, as she drives into the elegant apartment complex where she lives. Chen is also a member of the CPCCC, a consultative body that acts in an advisory capacity to the Chinese Parliament. “The infrastructure has developed a lot and become very practical. The people here have changed as well. They are more kind, generous and accepting,” says Chen.

This is the bright side of China’s and Chengdu’s story. The other side is more concerning. The World Bank says China’s population will age within a generation. By 2011, the working population as a share of total population will peak at 882 million, then fall steadily at a rate of 0.1% to 0.4% a year. With the population graying rapidly, Chen and her son Yang Yang realize China is facing serious demographic challenges. “As far as I’m concerned, the money I put into the state plan is not enough for me to retire on. I have a classmate who studied at Berkeley. A professor there said that if you are going to rely on state benefits for retirement, you shouldn’t be at Berkeley,” Chen says, laughing.

Her life has not been easy, and she has had to struggle through periods of political upheaval, while juggling career and child rearing. “I am a diligent person and pursue perfection. So I work hard and those around me have to work hard as well. I think I’m more of a hard worker than an intellect, so I have to work faster than most,” she says. “We’ve known hunger and not having enough clothes to wear,” she adds. “On average, the Chinese people are not familiar with things like pensions or insurance markets. This is beginning to change.” The biggest shock of her life came when her son, Yang Yang, was paralyzed and confined to a wheelchair at age nine after breaking his neck diving into a swimming pool. It made her think about the future and realize why she needed insurance.

“After my son’s accident, I became aware of the importance of insurance. I knew I didn’t want to be a burden to anyone. I went to the CPCCC, who came up with a VIP plan for me. Working in a state-owned company, I had benefits, but very few. So when I set up my own company, I upped my contributions five-fold to make sure I get more money when I retire,” she explains.

China began introducing pension system reforms in the late 1990s to replace the previous cradle-to-grave social security system known to state-owned enterprises. The new system only applies to urban areas and consists of a public pay-as-you-go approach with mandatory DC (defined contribution) accounts and voluntary, occupational pensions.

Both she and Yang Yang are interested in investment and private retirement plans. For those plans, they live in the perfect place: According to the 2007 Public Appraisal of the Best Chinese Cities for Investment, which assessed 280 urban centers, Chengdu was one of the top 10 cities for investment. Historically, the city has always had a strong financial link. The world’s first paper currency, the jiao zi, was issued there in 1023. And today? Chengdu’s GDP increased by 15.3% to 320 billion RMD ($47 billion) in 2007. According to experts, growth will continue.

YANG YANG LIKES STOCKS, but does not feel it is the right time to invest. However, he acknowledges that with inflation rising so strongly, “if you don’t invest in something, your money will just sit there and lose value.” This would be contrary to what his grandparents did, when they started the Chengdu Huifeng Diamond Tool Co. Ltd. “In the 1990s, my father and mother decided I should get involved in the family business,” says Chen Ping. “I was working at a state-owned company at the time and my father merged it into theirs. In my day, people didn’t go into business because they were interested in something. Fate paved the road.”

A slim, youthful figure, Chen Ping is extremely welcoming and keen to talk about her experiences and offer her opinions. She is also extremely active. She loves to visit the Jinsha Museum; evenings may find her at the Shangri-La Hotel, a recently opened watering hole on Chengdu’s social scene. “I’m a woman who loves luxury on the one hand – I have racks of expensive clothes in that room over there, I like good food, handbags and the Shangri-La. But I don’t have any hobbies, maybe because of my life experiences,” Chen says. Instead, she concentrates on her son and her company.

Although her energy and youthful figure belie her age, Chen knows well that one day in the future she will retire, so she wants to ensure that she has enough saved to live comfortably on. However, she does not confuse such rational thoughts with the feelings of her heart. “My biggest dream is for my son to get well again,” explains Chen before returning to the role of the perfect hostess: “Can I offer you more noodles?” 

Published by PROJECT M in December 2008