Chat with Jim Spear, co-founder of China Countryside Hotels
The Schoolhouse, a restaurant and glass-blowing workshop in a renovated schoolhouse
The Roadhouse, a restaurant
Xiaolumian, a farmhouse restaurant serving noodles

LCL: i'm always looking out for cool places in china like mutianyu, wishing there were more
JS (Jim Spear): Actually, we're just starting out on these village enterprises though I have had a weekend home in Mutianyu (mty) for 15 years
LCL: before we start, let's do brief intros...JH?
JH: i've always been deeply interested in the field of development, and i guess part of that interest stems from having grown up all over the world, thus having this incessant traveller's itch
and the more places i experience (either as a resident or as a traveller) the more i become interested in issues of sustainable development -- preservation of the uniqueness of 'local' whilst benefitting from the advantages of the global, i guess
it was quite by chance that i got to join the grameen foundation sichuan trip, which was a very inspiring trip in many respects
LCL: JH is echoing all my sentiments
JH: and dialogues, experiences, personal reflections etc. that came out of that trip in a way articulated a lot of the ideas that were already floating around in my head, and then i read what you established with the mutianyu project, which seems to be the materialization of everything in a very real way!
two of my passions, travelling and design, that desire to do my bit for the collective, and that dilemma of trying to compromise between the luxury world and the awareness of the real world etc.
so i've always been interested in ways of bridging and bringing together sort of non-profit and for-profit businesses together
LCL: JH is speaking for me as well...and she's doing a great job at it. So Jim, your turn...
JS: we're just taking little steps -- far from perfect. but i think we're on the right track re: sustainability in the village context: local people, local companies, local food, homemade, existing footprints, sensitivity to environment. I am delighted to have the chance to chat with both of you.
i have been living here 23 years -- from the usa -- where i was a phd student at berkeley
LCL: phd in?
JS: political economy re: china/japan but i didn't finish thesis, i took a consulting job in Beijing because i wanted to be where the action was
[consulting on] early jvs in a variety of industries and high tech sales, i started my own trding company that eventually morphed into a wine importer (ASC) and later I worked for many years in the medical field for a NASDAQ company
when i was getting close to 50 and my kids were in college i had a mid-life crisis and chucked everything to move out to our weekend house in mutianyu
JH: haha
LCL: hahaha...jungha and i joke that we are in third-life crisis...hahaha
JH: i was about to say that, haha
LCL: and no regrets?
JS: yeah, haha...life is too short to spend on regrets. of course i have no regrets. i feel i am one of the luckiest people in the world. i have now designed and built 19 houses, made new friends, helped our village, time of my life
when i moved out to the village and re-did my own house a friend asked me to build him a house and the housing part started there. about the same time the mayor sat me down and said: look spear, in case you hadn't noticed, we're having a hard time, you're a rich american and you should give something back, after all we let you live in our village and you should make an investment here to help us
LCL: first Q...how did you pull off buying your first house to begin with? i assume it's not that straight-forward with deeds and stuff
JS: absolutely right. actually we lease peasant residence plots with existing houses on them. not purchase as in freehold.
JH & LCL (at the same time): how long is the lease?
JS: this is also complicated. ranging from 10 to 50 years
LCL: only 10 years??!! and then lease WITH property converts back?
JS: sure, if you don't put a lot into the house it can make sense. we use short term leases for staff housing, for example. the real houses i have done range from 100-900 sqm
market prices have increased dramatically as we have created the demand. so shorter lease costs less money. clients amortize lease improvement over life of lease. not necessarily a good financial investment. BUT that depends. and one client told me recently their mty house was their best invesment (in light of the crisis)
JH: and the range (10-50 yrs) depends on what qualification? and as a foreigner, is it still possible without a local connection somehow to still qualify for a long lease?
JS: period of lease not dependent on citizenship. actual law may limit real estate leases to 20 years. but we have a lot of lawyers who have helped us write what seem to be enforceable leases for longer periods.
LCL: being near the great wall, which is protected...are the laws stricter for such developments as well as building/renovation permits?
JS: it's very complicated and highly political. regulation -- many, many and sometimes competing authorties. this stifles creativity and leads to other issues. i am not against development, just want to help channel it in sustaianble ways that preserve real communities. LCL: were u aware of all the red tape before you started?
JS: red tape? haha. i have been doing business here for decades. my little stuff in the village every bit as complictaed as anything i ever did
LCL: what do you think of Commune?
JS: Commune is very interesting but not for me. I find the houses plopped there - starchitect syndrome. they failed as an enterprise and very poor service/business model. and then brought in kempinski. last time i stayed there was last month. great spa. poor room. they more or less copied the houses to get to 380 rooms. a walled valley. no connection to community. it makes me cry. but there is room in the market for them as well as us.
lots of our customers have been to virtually every five-star hotel and resort. they literally ache for something real
LCL: yes, absolutely...i prefer your model. so you started off helping other people find and build their dream country home by the Great Wall, and then added the F&B and craft components to the village, and now i see you are starting inns?
JS: we have 6 rental houses www.chinacountrysidehotels.com and 3 or 4 more about to come on line. inns -- we have 2 under construction
LCL: what is the cost of buying, say 50-year lease
JS: location key. in mty and nearby yingbeigou a peasant house as is for 30 years now runs about rmb 450-900k
if you go a few km away can get an existing ouse for rmb 150-200k and even less as you go more distant in the hills
LCL: wow! you've added lots of value!
JS: yes -- the peasants now sit on a previously worthless asset. they take the money to start businesses, educate their kids, provide better old age living, etc
JH: are you looking to expand the model onto other parts of china? or continue expanding this region?
JS: i am very intrerested in first expanding in other nearby villages. but i do think that in areas 1-3 hours from major cities in china and perhaps eleswhere this is replicable
remote is harder -- have you seen naked retreats 3 hours from shangai?
LCL: no! wow, i'm soo glad i'm having this conversation...keep finding out more!
JS: naked retreats took missionary houses from pre-liberation and made them into nice weekend places. issue is (to me) maybe not focused on helping community today.
LCL: just one last question...your businesses are set up as businesses, correct?
JS: yes -- for profit businesses. to me that is part of being sustainable. we have been approached by 1 person who is starting a social investment fund to loan funds or take equity in for-profit businesses that have a commitment to sustainable social development
LCL: thank you so much for your time...i'm going to chew on our conversation a little bit
JH: thanks so much for letting me in on your conversation! and you have a very inspiring life! we drool at what you have achieved!
JS: i enjoyed meeting you via this chat, have a great day!
LCL: have a great weekend in the country! ahhh...that clean, crisp air
JS: i will!
Labels: architecture, Beijing, China, entrepreneurship, goodwill, homes, hotels, restaurants












