The End of Copycat China: The Rise of Creativity, Innovation, and Individualism in Asia

6The End of Bling

It sounds like a ridiculous problem to have,” Mr. Chen told me one hazy day in Beijing as we zoomed around in his red Ferrari, “but I don't know where to spend my money.” Originally, Chen had made his money in real estate in Hainan Island in the late 1980s and early 1990s before moving to Beijing, where he cultivated the connections needed to do “big real estate projects.” By the time we had become friendly, Chen had become one of the country's largest developers, with commercial and residential developments spanning the country.

In the past Chen had typically parked his money in his own developments but was expecting lower returns in real estate, so he was taking money out of property investments and wondering what to do with it. He considered investing in real estate developments in America or buying homes in Maui and New York, but he only travels there once or twice yearly, usually to visit his daughter, who is attending an elite New England boarding school.

“I used to buy the newest and best car from every luxury brand,” he told me. I've seen them—in his garage at his palatial home in Beijing, he houses Porsches, Range Rovers, and a mini fleet of S600 Mercedes. But, he continued, “I haven't bought a new car in over a year.” Despite his political connections and wealth, Mr. Chen also hasn't even been able to obtain a license plate in Beijing for the past year. ...