Shanghai Formula 1 circuit

00:12:00

The Formula 1 circuit  in Shanghai. Built to host the world's best drivers at the chinese Grand Prix; But visit any other weekend of the year, and you're less likely to find the worlds fastest men than China's richest. The most exclusive car club in the country has rented the track once again.

00:34:04
The Sports-Car Club now has over one thousand members. According to the club president, there a very strict conditions for membership. Even for the wealthiest of businessmen.

00:49:05
OT Li Fu
"The Minimum requirement for membership is a Porsche 911 or a Nissan GTR. A two-door sports car that accelerates at 4.5 seconds from 0 to 100. "

01:08:01
This condition reveals a second, less openly discussed requirement for membership: large personal wealth. In addition to the cars, a weekend at the Formula 1 race track costs at least € 10,000. The members gathered today comprise a second generation of privilege. They are the children of new millionaires for whom expensive hobbies are no longer out of reach.  

01:35:03
For these two young men the expense is no problem. Li Chao and Zhang Yichun have travelled from Beijing. They are entrepreneurs and car enthusiasts. Their annual budget for the hobby is up to 500000Eir

01:51:13
PT Zhang Yichun
"Everyone has their own idea of a sports car. The Porsche 911 is very popular in Europe. Of course a Ferrari is very good and expensive. I could just as easily afford one of those. But I like my Porsche 911, because the engine sits in the back and the turbo goes properly. "

02:18:05
He isn't exaggerating. In fact, on this point he is impressively convincing.

02:27:21
Mr. Zhang paid around 200,000 euros for his porsche. He also owns a BMW and an Audi.  And those are just his race cars, used only for this hobby.

02:47:00
Entertainment for the almost exclusively male clientele is provided for all car club events.   Luxury European car manufacturers are guaranteed to appear, represented by their finest hostesses. And the rich petrolheads are quickly acquiring a taste for it

03:09:18
OT Li-Chao
"This weekend is like a meeting of friends. The race is just as warm-up. You can meet friends here and can also do  good business. "

03:28:12
Following the end of the racing, the evening's party is announced over the PA; unfortunately, cameras are definitely not allowed.

03:43:04
Mr Li returns to his home town, Beijing, a couple of days later, where he is staying In the centre. He also owns a villa in the suburbs. Li was educated at a British university - his degree in business management funded by his family. Li is wealthy, though exactly how wealthy he is reluctant to reveal.

04:07:11
Li Chao made his fortune through the distribution and sale of milk powder, which he imported from Europe. His business transformed into a gold mine in 2008, when a huge scandal erupted in China - milk powder manufactured domestically was found to be contaminated with melamine, causing illness in ​​hundreds of thousands of infants. The public's confidence in milk powder manufactured in China was thoroughly shaken. And now, those who can afford to buy imported milk. Li Chao's milk.

04:39:17
OT LI Chao
"A lot has changed. When I started the business seven years ago, there was not a lot of money. Tens of thousands of euros perhaps. Today I put away a good 25 million euros a year. And I hope there is a great deal more to be made. "

05:01:09
Li Chao is a reflection of Chinese society today. Only one thing counts: money and success.

05:09:09
OT Li Chao
"You can never have enough money. Money helps me fulfill my dreams.  I can afford my hobbies, such as motor sports. This is not, cheap and therefore I need a lot of money as easily as possible."

05:27:17
China's new rich spend their money well. For evidence, you need look no further than the luxury fairs  constantly running across the country. By 2015, China will replace Japan as the largest single market for luxury goods. By then, Chinese spending on luxury items is estimated to reach more than 20 billion euros per year, according to consulting firm McKinsey.

05:57:16
OT Xueshan Zhang, Zhenwei Exhibition Group
"The potential luxury goods market in China is huge. There are 1.3 billion people in China. If only one out of 10 is rich, we would have 130 million potential customers. The outlook is fantastic. "

06:19:18
Traditional British sports car manufacturer Morgan is represented in China for the first time at this trade show. They're hoping the new Chinese penchant for luxury goods results in good business.

06:34:16
OT Jim James, Morgan Cars Company
"The China auto market is perhaps another story. It is now the largest market in the world, ahead of the american market, and the appetite for unique cars that have this great combination of heritage with modern performance should really hit a sweet spot with the  chinese consumers that are now looking for something that's a little bit distinctive."

07:04:06
The trends are convincing: the number of chinese millionaires is increasing rapidly, as are the ranks of super-rich. Only the United States is home to more dollar billionaires than China.

07:24:12
Wang Dafu manages approximately the 500th richest firm in China, and his personal fortune is estimated at half a billion euros.

07:54:08
Wang was born into a poor family. It's a story that's fast becoming the Chinese dream, taking him less than 15 years to become the undisputed property czar on the resort island of Hainan - certainly not the kind of project he'd have been expected to acheive as a young boy.

08:01:11
The island is a two-hour flight south of Shanghai, and is considered by many Chinese people to be the epitome of a tropical paradise. A resort no longer only for the rich, but increasingly for China's middle class.

08:16:00
OT Tourist (no insert)
"We payed 500 euros to come here. We immediately understood why this place is so popular. We just want to enjoy ourselves. "

08:31:23
Just 20 years ago these were empty beaches. Now, tourism is worth billions. Enough to lure even more investors here.

08:43:00
OT Wang Dafu
"Here we have mountains, the sea and rivers. In addition there is a good infrastructure. Everything you need.   But most important is a real estate market that is evolving very fast. We have what it takes to make this place a world-famous, world-class tourism destination. "  

09:18:22
These men are among the richest in southern China. Wang Dafu has been invited for a weekend to Hainan, by a man who deals exclusively in toys for the rich

09:37 (sub)
"This aircraft will cost $ 27 million. That's not expensive "
"We'll have to get a special price."

09:50 (sub)
"How much is this plane?"
"$80 million."

09:29 (sub)
"Not expensive. Not expensive "

10.05 (off-screen) (sub)
"Come, let us go on

10:10:03
Wang Dafu's yacht, manufactured in the west, was made strictly to order. It's his belief that sailing and cruising will boost luxury tourism in Hainan. So he has invested in both.

10:24 (sub)
"Have you got  plans for interior design?"

10:27 (sub)
"We design exactly according to their personal preferences."

OT Wang Dafu 10:36 "When I was little, if I had chicken legs, I did not want to eat them all at once. They were so valuable I would wrap them again and again. When I started working I could then sometimes afford a beer and a bowl of noodles. That was a luxury for us and we were happy. At the beginning ..... I've earned 20 euros a month. I have worked as a Day laborer in factories. Then I became an agent.   I sold oil, fertilizer and clothing. I really have done many things.  

11:18:13
Modesty is not Wang Dafus thing. He is proud of his success and his personal wealth. Right now, that includes hotels, supermarkets, marinas, entire neighborhoods in Hainan. And there are many investors trying to copy him.

11:42:10
Real estate is a popular investment opportunity. One of the reasons for this is the difficulty of moving capital overseas. But now the Chinese millionaires have discovered the international art market which they've flooded with approximately 14 billion euros..

12:00:25
In terms of money spent at auction houses, China is already way ahead of the U.S. at number one in the world. Just over a third of global sales are to the Chinese market.

12:11:04
This is China Guardian Auctions, one of the largest art auction houses in mainland China. Last year alone, it made ​​more than 1.3 billion euros in revenue. Thousands of art objects are displayed ahead of each individual auction.

12:33:29
Anyone planning to bid here must first deposit 20,000 euros. Small change for most of the people sitting in the auction room. The prices for the artworks grow at an impressive rate, shooting up as the seconds tick by. Often the buyers are not here in person, preferring to remain anonymous and give instructions by phone.

12:59:11
Li Guochang, millionaire art collector and
"China's art market is booming, because a lot of money is in circulation. People need investment opportunities, they need ways to invest their money. There are real estate, stocks, and even works of art. This has propelled the price of art in China to the top. "

13:24:14
Li Guochang is one of the most famous art collectors among China's multimillionaires. His personal fortune is estimated at around 450 million euros, and his office is decorated with oil paintings by contemporary Chinese artists. Not without pride he says that for this piece alone he paid almost one million euros many years ago.

13:52:22
OT2 Li Guochang
"Some people love art, others just want to earn their money and do nothing about it. They are pure investors. I would call them speculators. "

14:12:22
Mr Li refuses to give any precise details of how he came about his great fortune. His company certainly operates in the forestry business, investing in real estate and buying up companies.  

14:24:00
The richest man in China, Zong Qinghou, is a modest man and has hardly any hobbies except smoking cigarettes. Mr. Zong started out at 20 euros a day. According to him that was all he needed. His fortune is estimated to be equivalent to approximately 10 billion euros.

14:50:00
OT Zong Qinghou
"When I was little, there was only something to eat once a day. I'm used to being frugal. I give nothing for luxury. No matter how much money you have, there is a limit how much you can spend and eat. The money belongs ultimately society. So I invest incessantly, constantly creating new jobs, and paying taxes to the state. "

15:17:00
The Wahaha Group has become one of China's most successful brands. it includes 160 companies in 60 locations across the country, and employs some 30,000 people.  

15:40:00
Its core business is the manufacture and sale of the most popular soft drinks in China, a market in which Wahaha products have a share of 60 percent.

15:51:00
OT Zong Qinghou
"I have not succumbed to the usual temptations. How to quickly make money in real estate or investments. I'm still a classic industrialist. This is healthy and stable. "

16:10:00
A museum on the premises tells the family history. Zong Qinghou presents himself as an entrepreneur with a heart. A man of the people with a sense of social responsibility. A showcase for particularly chinese brand of capitalism, exactly as the communist party envisage. Mr. Zong is a party member and well-connected. China's supreme leader - past, present and future -   are personal friends. For Zong, to be a Capitalist and Communist Party member simultaneously is not a contradiction.

 16:47:00
OT Zong Qinghou
"I didn't become a member until after I was rich and successful. The party encouraged private entrepreneurs to join Unlike before, progress now comes from entrepreneurs who support the Communist Party. The party is focused on all the forces acting on the structure of the economy, so they need us. "

17:16:03
A look at the rich list shows the close connection between big business and the Communist Party. On a list of the 20 richest Chinese entrepreneurs you will find 18 Party members.

UPSOUND People's Congress Music

17:40:15
Also impressive are the incomes of the members of the People's Congress, the official Parliament, which meets once a year. The 70 richest members collectively have assets worth over 65 billion euros. This compares favourably to the meager 4 billion euros available to the 70 richest members of Congress in Washington.

 18:05:12
Whilst the irony of the wealthy capitalists running the communist party may be lost on men like Zong, rumbles of discontent can still be heard. Especially amongst the left wing of the Communist Party, from individuals like economist Zhang Hongliang. He describes the incorporation of capitalists into the party as an historic mistake.

18:26:00
OT Zhang Hongliang
"Directors of companies can't be party secretaries. It should be the proletariat secretaries and the directors representing the capitalists. When a person takes those two functions, one thing is clear: the Communist Party is nothing but a capitalist party through and through".

18:52:11
An equally powerful and opaque network has emerged as economic and party interests are merged, according to Australian economist David Kelly. He operates a private research institute in Beijing.

19:09:20
OT David Kelly
ENGLISH
"Access to the market in China is not possible for everyone. It is much easier to get in as an entrepreneur in the market when you have support in the party ... If you are an entrepreneur have a dispute, even helps the party. Do you have good connections to the Communist Party, then you have the judge's decision in your favor already in the bag. "  

19:47:15
Our amateur racers and young entrepreneurs admit party connections are useful, but insist they aren't everything.

19:50:16
OT Li Chao
"In the 80s, businessmen could do nothing without the party. Without contacts it was impossible. But now other things are more important. Today you have to understand and capture the market. Contacts are of course useful, but no more than 5% -10% of the business. "

20:20:04
Li remains silent about his family background. He refuses to reveal the nature of his connections with powerful individuals and senior party officials. But one thing is certain: having these contacts has made it easier for him to make a great deal of money.
Segment Red capitalism propaganda sites

20:34:00
Those without contacts, who move in the everyday circles of ordinary men, can make the pilgrimage to this place - Hauxi supposedly the richest community in China. Every year, around two million tourists travel to this model village of red capitalism. They all come with only one purpose in mind: to find out the secret of getting rich.

20:56:04
They can get tips from this 86 year old-man. Everyday, in the village hall, Wu Renbao imparts his wisdom to the pilgrims. For decades he was the Communist Party chief in Huaxi. It was his vision for transforming the impoverished agrarian village to an industrial community that is responsible for the resident's wealth.

21:17:05
OT Wu Renbao former Party chief of Huaxi
"Socialism is our number one priority. But we also use the positive aspects of capitalism. That creates socialism with Chinese characteristics. Whatever the ideology - the main thing is that we become rich together. "

21:43:22
Huaxi has become a centre of conspicuous wealth. On the 60th Floor of the recently completed hotel you can admire this golden bull. It's made ​​of pure gold, and weighs exactly one ton and 8 kilograms.

22:00:21
Huaxi now has dozens of factories. The village-Holding, listed on the stock exchange, makes more than 6 billion euros in annual sales. 400 established local families are shareholders and benefit from the profits. All own an exclusive townhouse.
It's wealth the thousands of migrant workers who toil in the factories of Huaxi can only dream of.  

22:34:01
The rich province Zhejiang, south of Shanghai, is considered the cradle of Chinese capitalism.

22:44:05
The assumed entrepreneurial skill of the residents is apparantly taken for granted. Even when the nation was still on a tight socialist course, the grip of the party in Zhejiang was weaker than in the rest of the country.

23:00:23
Here you can find the headquarters of Neoglory, world leader in fashion jewelry.

23:06:23
The boss, Ms. Zhou embodies the Chinese dream.   From a poor farmer's daughter to one of the richest women in China, Ms. Zhou found her start selling cheap junk travelling as a stowaway on the nation's railways.

23:28:12
OT Ms. Zhou Xiaoguang
"If I was able to get a seat, I could ride continuously for one or two days. When it came to the evening I would creep under the seats, lie down and sleep there. And during the day I stood in the hallway again. So the days passed, year after year. It was very difficult to make money. "

 23:54:05
That was 25 years ago. Today, Ms. Zhou has a fortune of two billion euros, employs 6000 people and has long since moved into the real estate and grocery industries.

24:09:00
Her apartment occupies the top floors of the companies seven-story headquarters. Hundreds of square meters housing four generations - that's 36 family members, some of whom sit on the board of the Group. Her extended family is intricately woven into the success of Ms. Zhou.

24:33:19
OT Ms. Zhou Xiaoguang
"My sister, along with her husband, is responsible for our partnership with the Austrian company Swarovski."

24:49:08
This lunch meeting is between a group of investors from South China. They talk about golf projects that could be developed jointly. Events and transactions like these dominate the life of Ms. Zhou. This means she has little time for much else.

25:10:03
This buddhist temple is her retreat. It provides short moments of calm in the restless life of a confident woman who, she says, has had to work hard to succeed in the male-dominated business world of China.

25:33:18
OT Ms. Zhou Xiaoguang
"From birth, there are those in our society who claim that men are strong, courageous and responsible. Women are supposedly slightly weaker in this area. But as an entrepreneur you have to bring exactly these characteristics and abilities. And I will bring them all on board. "

26:06:01
Three decades of economic liberalization have changed the face of China.  Those benefitting most from the change are the children of the first generation of pioneering red capitalists; immodest, accustomed to success, and able to spend more money in one luxury evening in Shanghai or Beijing, than others can earn in a year. This is life in the new China, and it looks as though the red ideals of the past have probably been discarded forever.

CREDITS
Report: Jörg Winter
Camera: Paul Reilly, Lionel Brugeaud, Karsten Hohmann
Editing: Iannis Kase
Production: Michael Arri, You Weiran
Sound: Iannis Kase, Philipp Mandelartz David Schmidt

ASTONS/LOWER THIRDS
Li Fu, president of China Sports Car Club
Zhang Yichun, entrepreneurs
Li Chao, entrepreneurs
Xueshan Zhang, Zhenwei Exhibition Group
Jim James, Manager Morgan Cars Company
Wang Dafu, real estate developers
Li Guochang, art collector
Zong Qinghou, industrialist
Zhang Hongliang, an economist
David Kelly, an economist and consultant
Wu Renbao, former Party chief of Huaxi
Zhou Xiaoguang, entrepreneur