getting to shangri-la - China Expat

Volume 4, Issue 2, March 2006 

THE SHANGRI-LA ISSUE 

Getting to Shangri-La – Lijiang to Zhongdian 

Foreign Exchange Certificates Remembered 

China Book, Music and Film Reviews 

Regional City Guides 

Mar 

Getting Out There – Your Guide to Business Traveling, Living & Culture Across China 

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Hi, 

I’m Lucy Lu and welcome to the March 2006 issue 

of China Expat magazine ! 

In this issue we take a good look at “Getting to Shangri-La” – the 

mythical location so memorably described in James Hilton’s classic novel 

“Lost Horizons”, and take a trip from Lijiang to Zhongdian, now officially 

recognized as the “official Shangri-La” – being located in the old Tibetan Province of 

Kham in what is now Northern Yunnan. 

We also remember the old Foreign Exchange Certificates (FEC) that expired ten years ago 

and which all foreigners in China had to use until that time, and carry on with our usual 

book, film and music reviews. Please don’t also forget to browse around the China Expat 

website at www.chinaexpat.com – we’re upgrading all the city guides and establishing 

partners with as many regional and local websites as we can, to bring to you as wide 

a coverage of China as we are able. 

Enjoy this issue and have a great month – and if you have a local website 

or blog you want to tell us about – get in touch ! 

With love 

Lucy 

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GETTING TO SHANGRI-LA 

GETTING TO SHANGRI-LA : 

For many, Shangri-La is an unobtainable place, a mythical realm. For others, it’s within 

your own heart – “follow your dreams” they will say, “and you will discover your own 

Shangri-La”. Others will point in directions on a map. 

In this article we outline the Chinese version of events, and take you on a trip through Yunnan, 

and up to Zhongdian, the “official” Shangri-La. 

Jade Dragon Mountain 

LIJIANG 

Beautiful Lijiang. Nestled in the foothills of the Yulong 

Mountain range – part of the Himalayas that sort of 

forgetfully rumbles on down into South-West China – this 

historic town is now a combination of world heritage site, 

tourist trap and sheer idyll. Getting here is easy – flights 

connect several times a day from Yunnan. Lijiang, beautiful 

as it is, suffers enormously from over-exposure from travel 

groups, so base yourselves here for a day or two only. The 

home of the minority Naxi people, stay at one of the guest 

houses in the main village – RMB100 will get you a room 

for two in a traditional courtyard house, and they’ll even 

arrange to pick you up from the airport too. Our favourite 

belongs to our good friend Kathleen , call the Wang Cheng 

Ge guest house on (0888) 515311 to make arrangements. 

Alternatively, turn up and walk into the old town and find 

somewhere yourselves. 

Lijiang is an old village, cobbled streets, no cars and 

bisected by streams that flow through from the melt water 

streaming down from the permanently snow-covered 

– and as yet unconquered - Jade Dragon Mountain that 

looms over the valley, a guardian of both East & West. 

Indeed, Cathay Pacific airlines were born from here – 

during WW2 allied forces flew over the Himalayan ‘hump’ 

to the West, from India and Burma, to drop supplies to 

allied and Chinese troops fighting in the region. Many 

brave pilots perished in that awkward airspace, between 

Lijiang Village 

high peaks, turbulent winds and winding valleys, before 

landing at Lijiang – which in those days was used as a 

supply and distribution dump to feed the war effort. Then 

back to Burma and India for more supplies. Two of those 

planes, post war, were recruited to form the embryonic 

Cathay Pacific fleet. 

Lijiang itself is full of cafes, coffee shops and local 

restaurants, just wandering around is a delight. Trips to 

the mountain are easy to arrange locally – but wrap up 

warm – the peak you can get to is at close to 4,000 metres. 

Horseriding, local sightseeing and a gentle immersion into 

the rhythm of the mountains will get you in the right 

frame of mind for your journey. 

CHINA EXPAT | Volume 4, Issue 2, March 2006 1


TIGER LEAPING GORGE & THE YULONG VALLEY 

You’ll need to hire a car and driver for this, easy to find 

in Lijiang but you will need some Chinese language 

skills to be able to get around and tell your driver where 

to stop for photos etc. Rates are from about RMB400 a 

day, inclusive. 

This route will take you North to the Tiger Leaping Gorge, 

a well known local landmark where the river, slowly 

meandering, and a limpid, lazy green, picks up speed and 

ends up crashing through one of the deepest gorges in the 

world over 3,000 metres from summit to river – and is so 

named because legend has it a Tiger, persued by hunters, 

leapt across from rock to rock across the thundering river 

in order to escape. A large bronze statue of the tiger still 

stands at one of the curves in the gorge. This is part of 

the Yulong Gorge range, that still crumbles into the river 

and creates new diversions as thousands of tonnes of 

decomposing rock break off sporadically from the cliffs 

and hurtle in the abyss. The Tiger Leaping Gorge is a great 

diversion for a couple of hours, but head on, and take the 

mountain road the other side of the Gorge and through 

the main valley. Your destination is the Hutiao Gorge a 

further three hours drive further north. Located here, 

amongst the spectacular rugged peaks towering over 

the Jingshajiang River are a variety of small guest houses 

to stay. The route is rocky on occasions, landslides are 

not uncommon and waterfalls can crash down onto the 

main roads during melt water season so make sure your 

driver has a decent car ! But here, as you wend slowly 

further North, the scent of Shangri-La starts to permutate 

through the air. Stop off here for a 2-3 day walk about. 

This is the land of the Eagle, the RedStart and the seasonal 

waterfalls that tumble down the mountains from heights 

never explored by man. Relax, and search for Shangri-la 

– remembering to look very hard for it – in a morning cup 

of fresh roasted Yunnan coffee. 

Freshly Caught Lunch 

Yulong Gorge Tiger Leaping Gorge Hutiao Gorge 

BAISHUITAN 

Baishuitan’s Calcite Pools 

Your route takes you still further North, up and out of 

the Gorge, and into forest, pines, and the far off peaks 

of the Tibetan Himalayas in the distance. Baishuitan is 

sited deep in one of Yunnan’s valleys and is named after 

the thousands of years of lime and calcite deposits that 

have formed white rock pools on the lower surfaces of one 

of the hills. Minerals, flowing over the rocks, are deposited 

here and have been lain down forming these limpid pools 

for thousands of years. There are no hotels, but a bargain 

with one of the locals will allow you access to one of the 

charming ethnic homes further down in the village, for 

about RMB50 a night per person. It’s worth the stay over. 

As the tourist buses leave, the village once more transcends 

into it’s historic rhythm, the fields of barley being tended, 

2 CHINA EXPAT | Volume 4, Issue 2, March 2006


the cattle, ponies, pigs and chickens all fed and the stars 

start to weave their magic in the night sky. Dinner will be 

prepared for you, and be respectful and mindful of your 

hosts home and belongings. You are their guest, and this 

is their home. Asking around though as to ages will reveal 

some clues as to where you are – close to Shangri-La. The 

locals still smoke their pipes and their local tobacco and tell 

stories of the old days when they are now in their nineties 

if you make friends with them over the evening fire and 

the now inevitable bamboo tube of yak butter tea. 

1 2 3 

1.Young Monks enjoying 

roast potato with chilli 

2. Snow in April: The 

road further on to 

Deqin, Kangding & 

Lhasa 

3. Songzhangling 

Monastery 

ZHONGDIAN 

And so on to Zhongdian, again, driving up through the 

valley, leaving the villages far below, and partially 

driving around the Snow Mountain, en route to Zhongdian 

– the town now officially recognized as “Shangri-La”. This 

is actually the old Tibetan Province of Kham and was used 

as a winter grazing area for the livestock. Annexed into 

China in the 1950’s, however the surrounding countryside 

is much as it always has been, pine forests, silver pheasant, 

and golden monkeys. Eventually one arrives at Zhongdian, 

known as gyeltang in Tibetan. Basically, it’s a shabby, 

white-tiled dusty and uninspiring place. So why is this 

Shangri-La? 

Firstly, it’s the home of the Songzhangling Monastery, 

founded by the 5th Dali Lama some 300 years ago. Rare 

Yellow-Billed Coughs circle overhead, their plaintive caws 

echoing amongst the demon painted walls. Songzhangling 

is a working monastery, and is getting back to the numbers 

of monks it enjoyed in its heyday. And the Monastery 

prayer wheels ? Always remember to turn them clockwise, 

because time cannot be turned backwards. 

Secondly, just a little further north, lies the winter lake 

that is home to the rare Blacked Necked Crane, and 

various Tibetan communities, that again, if asked politely, 

will take you in as lodgers for the evening. 

Thirdly, Yaks abound here, the land, frozen during the 

winter, produces barley, wheat and millet – all staples 

of the Tibetan diet. This is subsistence farming – some 

logging also, and the people take what they need from 

the land and no more. Spring here is late – end May – and 

Zhongdian is carpeted for a few weeks with the alpine 

flowers of the Tibetan himalaya – eagles, black vultures and 

the occasional wolf stray into the area during the racing 

cloud nights. Zhongdian,and especially Shangri-La, isn’t 

about the town at all, no matter how many “Tibet Local 

Dancing” joints the immigrant Chinese try and put up to 

attract the tourist dollar. But if wandering about looking 

at wintering Cranes, magical disappearing lakes, and the 

monks of the yellow hat sect make this your Shangri-La, 

then this is where you should come to visit. And if it’s not ? 

Well the road to Lhasa, via Deqin and Kangding lie further 

to the North, and are yours to explore. CE 

The Disappearing Winter Lake, seasonal home 

to the rare Black Necked Crane 

Evening Light at Baishuitan 

Baishuitan Village House 


BOOK REVIEW : 

James Hilton “Lost Horizon” 

Written in 1933, this book single handedly brought the term “Shangri-La” to 

the international mainstream and it’s idyllic lifestyle. Set, with some ironic 

modern paradox, in a war torn, terrorist ridden Central Asia, it charts the story of 

four individuals, evacuated out of Baskul, and how they find themselves kidnapped 

at gunpoint and flown to a remote mountain region of Tibet. Unsure whether this 

is by accident or design, they are taken into the care of the Lamasery where all is 

not quite what it seems. The book gives quite astonishing pictures of the interior 

of Tibetan monastic life and culture, but adds intrigue and drama as the characters 

bicker amongst themselves and when they’ll be allowed to leave. Eventually, as 

they wait for a team of porters for two months to lead them out of the valley, 

some start to appreciate the simple beauty and pace of life in this remote region, 

while others cannot wait to escape from what they regard as hell. Hilton simply 

and sympathetically paints his Chinese and Tibetan cast in an enigmatic and 

cultured light, and for anyone who has visited Tibetan monasteries the ambience 

will convince. Then after months of waiting, Conway the leader of the group, 

has a much anticipated meeting with the Head Lama, who reveals something to 

him that will change his perspective of life forever, and give rise to the modern 

phenomenon that is bound up in Shangri-La fable mythology. 

If you haven’t read this book then do so, it ages in its 1930’s setting somewhat to 

begin with, but once arrived in Shangri-La, where the world seems a long way away, 

you too will be drawn deeper into the tale, and it’s intrigues and mysteries. Last 

word – is Shangri-La set in Tibet ? The author himself answers that question, and 

states quite categorically that it is. But for what Shangri-La actually is – a prison, a 

vision, or a liberation – is left for you to decide. A classic novel, and a sublime piece 

of writing about Tibet with Chinese, Indian and Central Asian influences breathing 

life into a masterful yarn. CE 

Laurence J. Brahm 

Laurence J. Brahm 

– “Searching For Shangri-La – An Alternative Philosophy Travelogue” 

Written exactly 70 years after Hilton’s novel, Brahm, a Beijing based lawyer 

and foreign investment consultant (sounds familiar), is getting fed up with 

the material, electronic, concrete and glass world that inhabits much of China and 

international business today, and decides to give it all up and seek the answer to the 

question “What and where is Shangri-La ?” Accordingly, he quite sensibly decides 

to start in Lhasa, whereupon he ditches his phone in a rubbish bin and begins to 

travel, with the help of copious quantities of Yak Butter Tea, and (when he can 

find it) a decent cup of Latte. On the way he meets various Chinese illuminaries 

such as the Royal Ballet dancer Yang Lipeng, Rock Star Kaiser Kuo, the artists Luo 

Xu, Ye Yongqing, fashion designer Flora Cheong-leen, and many local nomads, 

monks and assorted passers-by. Of them all he asks the same question. The results 

are remarkably consistent on where and how to find the mythical land, and a 

picture of a developing alternative intellectual lifestyle that is actively flourishing 

– especially in China’s Western regions – begins to emerge. From the Soros funded 

Yak cheese factory in the middle of nowhere (blessed are the cheesemakers) that 

is now supporting schooling for nomadic children without interfering in their way 

of life, to an apparent desire for more meaning in life than the mere accumulation 

of wealth, Brahm deals with the subject in a sensitive, charming, and fascinating 

way. The project continues with a film, music and various other activities being 

planned for release shortly, but for the time being, if you’re getting a little jaded 

by the rat race of life, pick up this little gem of a book and immerse yourself in a 

different way of looking at things. CE 


John 

Huie is an Australian musician and arranger 

that has spent some considerable time in Hong 

Kong and China researching various world music styles, 

including film soundtracks for Golden Harvest and also a 

commemorative piece for the 1997 handover. Now based 

in Shanghai, he has put together a crack band of local 

musicians to recreate many of the 1930’s jazz songs that 

were the soundtrack to the city in its pre-war heyday. 

“Shanghai Jazz – Musical Seductions From China’s Age 

of Decadence” is the sublime result. Putting together a 

band from todays top jazz venues, including sourcing 

and drinking down at Mao Ming Lu, Huie’s state of the 

art production and modern recording techniques – not to 

mention a crack band comprising some of Shanghai’s best 

young musicians on bass, clarinet, bass clarinet, drums, 

guitar, piano, tenor sax, trombone, trumpet, pipa, violin 

and the lovely singing trio of Coco, Carrie and Ginger, 

the band run through a selection of some of Shanghai’s 

top tunes of the period. Jazz was banned by communists 

after the revolution, and is only now making a comeback 

– as are some of the standards of the day – including the 

notorious “Prostitute Song (The Love You Can’t Get)” that 

was high on the list of the governments most undesirable 

music and one of the best known songs of the dance hall 

era. With the CD’s packaging in English and Chinese (with 

lyric translations of the Shanghai classics), this is an ideal 

and very welcome exploration into the world of big band 

jazz, Shanghai style, and hopefully marks the beginning 

of a return for one of the more exotic blends of jazz ever 

to come out of the horn of a blues trumpet. Superb and 

thoroughly recommended. CE 

CHINA MUSIC : John Huie “Shanghai Jazz” 

MUSIC REVIEW : 

Green Tea “Black Tea Mix” 

The Green T House is a well known Beijing institution – one 

of China’s finest and most exotic cocktail lounges – this is 

nouvelle cuisine, Chinese style, coupled with an exotic twist in 

martini recipes (which is what the author visits for). Not for 

the faint hearted wallet-wise however, the lounge is an elegant 

homage to modern Chinese style and art – everything, from the 

chairs to the cutlery – and even the menu’s Japanese haiku poetry 

– smacks of class. Here then, is the inevitable CD to match – new 

age lounge, Beijing style, compiled by DJ Buddha at Ibiza for that 

extra cred, and a soundtrack to dine too. Never too intrusive – well 

one doesn’t want to create disturbances away from eating – the 

CD nonetheless is pleasant enough without being too demanding. 

That is sort of OK when in the ambience of the Green T House 

itself, but loses itself to blandness somewhat when revealed back 

at home. Never mind – light some candles, get out the essential 

rose petal oils and massage your partner’s back on the carpet to 

this and you won’t go far wrong. CE 


FILM REVIEW : 

“Beijing Bicycle” 

Shot in and around Beijing, this tale tells the story of a young migrant worker, 

who gets himself hired as a bicycle messenger boy, cycling, DHL style, packages 

and small deliveries around the bustling metropolis. A major incentive is the 

promise from his employer that upon reaching a certain number of deliveries, 

ownership of the bike – a sturdy, multi-geared mountain bike variety and an 

object of desire – turns to him. 

In a neat commentary of today’s grab for riches however, and the mistreatment 

of peasants by the rich, just as he is about to take possession of his bike – it gets 

stolen. Now unable to perform his job, and having being sacked by his employer, 

he begins a late night stealth examination of Beijing’s evening bicycle parks to 

try and locate his bike. After weeks of searching – he eventually finds it and steals 

it back. One day though, he runs into the wealthy, spoiled son of a government 

official who had originally stolen it, and a game of cat and mouse, of accusations 

and counter-accusations begin, even to the extent of one boy having the bike 

one day, the other the next as a ‘face saving’ exercise. Ultimately parodying 

the exploitation of China’s masses by the new rich, this film, although flawed, 

is a timely observation of China’s society ills and the growing gap between rich 

and poor. It is also itself a remarkable achievement and shows that despite the 

intellectual purges that have damaged China so much – a resurgence of true 

values is starting to emerge in China and that morality is often to be found most 

in those least privileged. CE 

“Forbidden City USA” 

– An Arthur Dong Film 

This hour long documentary – with an additional 30 minutes of bonus material 

– outlines the fantastic story of Americas’ first all-Chinese nightclub – the 

Forbidden City, in San Francisco’s Sutter Street, and it’s heyday in the 1930’s and 

40’s. Right on the cusp of San Franciscos Chinatown, the Forbidden City employed 

a crack jazz band, right on the money with the standards of the day – and Chinese 

singers and dancers to follow through with all the routines. Opening in 1938, 

and just in time for the war time GIs to party at either en route to or returning 

from Asia, the nightclub wowed when it introduced the first Chinese ‘bubble girl’ 

– naked except for fans she would cavort across the stage – shocking at the time 

and for many Americans, remarkably exotic – for those who had never seen a 

Chinese in the flesh before – let alone a naked female beauty. Not surprisingly, 

queues formed all the way down Sutter to get in and before long The Forbidden 

City was the place to go and be seen. Singers such as Larry Ching “The Chinese 

Frank Sinatra” and Frances Chun “The Chinese Sophie Tucker” and many others as 

passable Chinese Ginger Rogers, Fred Astaires and Bing Crosbys kicked up a storm 

– and the dancing girls kicked up their heels in a party that went on for nearly 20 

years. The trick was that the show was all actually staffed by Chinese Americans 

– second or third generation immigrants who were actually as American as corn 

on the cob. Nonetheless, the Chinese community was scandalized by their antics. 

Arthur Dong’s loving documentary on the club won first prize as “Documentary 

of the Decade” at the Hawaii International Film Festival as well as plaudits from 

the New York Times “It Swings !” – and is highly recommended as a taste of the 

era and of the Chinese capacity to embrace American society and integrate - as 

well as to party – as those of us who hang out today at China’s Latin dance clubs 

well know. CE 


CHINA’S FOREIGN EXCHANGE CERTIFICATES : 

CHINA’S FOREIGN 

EXCHANGE CERTIFICATES 

It is a measure of how fast time flies when we suddenly 

realize that in has been ten years since China finally 

phased out FEC, and that an entire generation of expatriates 

has no idea about what they were, their purpose, or even 

what they looked like. 

Here at China Expat we’ve managed to get together an 

entire collection of the old FEC notes, and reproduce them 

here for you. But what were they and how were they 

used ? 

Back in the late seventies, as Deng Xiao Ping began 

the long road to reform in China, the protection of the 

Yuan “People’s Money” was so great that it was actually 

illegal for foreigners to possess any. To get around this, 

China developed the concept of the “Foreign Exchange 

Certificate” (FEC) which had to be purchased rather like 

one does for travelers cheques at your country of origin 

before traveling to the PRC. Issued by the Bank of China, 

they sold at a premium of about 20% more than the 

actual value of the Yuan. Carrying your FEC carefully 

with you, and also as a means to prevent and monitor 

– Ten Years Gone 

– By Chris Devonshire-Ellis 

the movements of foreigners and their contact with local 

Chinese, FEC were also only allowed to be used to certain 

approved designated outlets – various hotels and the socalled 

“Friendship Stores” (some of which still exist by that 

name today) – which stocked luxury ‘foreign goods’ – just 

the sort of thing foreigners wanted to buy while in China 

– and a ramshackle collection of expensive local silks and a 

few other tourist trade artifacts. 

What foreign luxury goods ? Well, even as little ago as 1992, 

the only place you could buy a bottle of Johnnie Walker 

Red Label Whisky or a packet of Marlboro cigarettes in 

Shanghai was the Friendship Store by the Peace Hotel 

– and only foreigners, paying in FEC could have them. 

Locals had to make do with local brands. Restaurants 

too, were FEC designated, and those that were not – the 

vast majority – were not allowed nor permitted to serve 

foreigners. It’s easy to forget how quickly China has 

developed since then. 

Needless to say, with the average laowai getting fed up 

of being restricted to eating in expensive (and not very 


CHINA’S FOREIGN EXCHANGE CERTIFICATES : 

good) FEC designated restaurants and shops, and the 

local Chinese wanting access to premium foreign brands 

– a whole generation of street money-changers began 

appearing, risking prison (as did the hapless foreigner) to 

change FEC for you into RMB. “Changee FEC ?” was the 

first mantra of China’s street hustlers – the direct ancestors 

of “Copy Rolex ?”. 

Furtive deals had to be done in dark alleys, as both laowai 

and Chinese looked over their shoulders to see if any police 

were nearby as the deal was struck. Completed, the local 

lad would go and raid the Friendship Store for a much 

sought after packet of Marlboro, while the foreigner was 

free to go and eat in local restaurants and shops with his 

illicit RMB. 

After 1993, things started to get a bit out of hand with 

FEC as an entire currency black market began to sweep 

the nation, the 20% markup on value, and the increasing 

availability of foreign brands making them redundant. The 

secret police had better things to do than try and catch odd 

furtive FEC black market trader, and they were phased out 

over a two year period, finally meeting their demise in the 

summer of 1995. With the Bank of China changing FEC at 

face value for RMB – by now legal tender for foreigners, 

the FEC was consigned to the history books, and apart 

from a few low currency notes, have all but disappeared 

from view. 

However, for a look back down memory lane – it was only 

ten years ago – here from our own collection is the entire 

range of FEC – from just over a decade away the only 

currency in China that foreigners were legally allowed to 

possess. CE 


CHINA REGIONAL CITY GUIDE 

REGIONAL CITY GUIDE : 

This section of China Expat is a listing of all other regional 

and other useful websites. We would like to develop this – if 

you have a favorite website, blog, or recommended site, or 

wish to have your site included in this section, please email to 

laure@chinaexpat.com with full details. Listings here are free. 

ChinaExpat cannot however accept responsibility for content 

or accuracy of any of these sites. 

Coming soon… 

mongoliaexpat.com northkoreaexpat.com tibetexpat.com 


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