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UNCLAS SECTION 01 OF 04 GUANGZHOU 011052 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/CM 
USDOC FOR 4420/ITA/MAC/MCQUEEN, CELICO, DAS LEVINE 
STATE PASS USTR 
USPACOM FOR FPA 
 
E.O. 12958: N/A 
TAGS: ECON PGOV SOCI TBIO CH
SUBJECT:  Who Let the Dogs Out?  Canine Ownership in 
Guangdong on the Rise 
 
GUANGZHOU 00011052  001.2 OF 004 
 
 
(U) THIS DOCUMENT IS SENSITIVE BUT UNCLASSIFIED.  PLEASE 
PROTECT ACCORDINGLY.  NOT FOR RELEASE OUTSIDE U.S. 
GOVERNMENT CHANNELS.  NOT FOR INTERNET PUBLICATION. 
 
¶1. (SBU) SUMMARY: In a part of China better known for 
viewing dogs as cuisine rather than as pets, Congenoffs have 
noticed an increase in dog ownership.  Sales of dogs -- and 
related canine care products -- are up and represent a 
growing niche in the economy.  The reasons for the increase 
are varied, however, with one-child households, "empty 
nesters," rising disposable incomes, the desire to own a 
middle class status symbol, and changing social dynamics 
probably all playing a part.  All dogs are required to have 
a license, but most do not, leading some to call for a cut 
in associated fees to encourage owners to "come clean." 
Guangzhou, however, has yet to lower its fees, although a 
motion to abolish some fees and reduce others has been 
tabled -- for the fifth time.  Despite a crackdown on 
unregistered dogs initiated in Guangzhou in the fall of 2005 
to counter rabies and dog attacks, local dog owners continue 
to publicly display their dogs in parks and at public "dog 
club" meetings.  Without overstating the case, it does 
appear that the increased spending on pets is a clear 
indicator of the increasing discretionary income some 
Chinese enjoy and perhaps even growing concern for other 
living things.  END SUMMARY. 
 
¶2. (U) Blame it on it being the Year of the Dog, but it 
appears an increasing number of Cantonese now own dogs.  Dog 
owners can be seen walking their animals in local parks; 
several pet markets operate around Guangzhou, with puppies 
being a favorite item; and Congenoffs have even spotted what 
appear to be dog social clubs in Guangzhou and Shenzhen. 
Spurred by these trends, we decided to take a closer look at 
this emerging phenomenon and what it may reveal about South 
China. 
 
From Delicacy to Best Friend -- They've Come a Long Way 
--------------------------------------------- ---------- 
 
¶3. (U) The transformation of animals from pests to pets in 
China cannot be understated.  For decades the Chinese have 
been unreceptive, to say the least, towards the concept of 
animals as pets.  Considering that just a few decades ago 
Mao encouraged peasants to kill sparrows and pets were seen 
as a bourgeois decadence, the change is remarkable.  While 
many Chinese came around over time to the idea of keeping 
fish or pet birds at home, other, more high-maintenance 
animals -- particularly dogs -- were not as accepted.  From 
the 1950s to the late 1970s, regular dog extermination 
programs were carried out; dogs were seen as a threat to 
public hygiene and were routinely executed by mobs.  These 
scenes were recreated during the SARS epidemic of mid-2003, 
when unsubstantiated fears that dogs and cats may carry the 
virus led to the extermination of hundreds of animals. 
Added to these perceptions is South China's long culinary 
fascination with dogs, which are said to be a "warming" food 
and good for the body's circulation. 
 
Unleashing a Trend:  The Numbers Tell the Story 
--------------------------------------------- -- 
 
¶4. (U) China's National Kennel Club found that in 2005 there 
were roughly 150 million pet dogs in China.  Research by a 
global consumer market analysis group found that the 
percentage of Chinese owning dogs increased from 5% in 1999 
to 7% in 2004.  These market analysts estimate that sales of 
dog and cat food in China reached nearly RMB 1.6 billion in 
2004 (approximately USD 199 million), up 13% over the 
previous year.  Predictably, pet food sales are mostly 
generated in large cities such as Beijing, Shanghai and 
Guangzhou, according to industry analysts.  In 2004, pets- 
related businesses in China -- including sales of animals, 
provision of services, and sales of accessories -- were 
worth a combined 15 billion RMB (roughly USD 1.88 billion) 
 
GUANGZHOU 00011052  002.2 OF 004 
 
 
annually, according to the People's Daily.  Experts predict 
annual sales of pet food and necessities might top RMB 6 
billion (roughly USD 750 million) in 2008, according to 
Xinhua. 
 
Why So Many Doggone Pets All of a Sudden? 
----------------------------------------- 
 
¶5. (U) There are several possible reasons for the increase 
in dog ownership.  First, one-child households are 
contributing to the demand for pets, which might be regarded 
as additional members of the family and can become 
companions to an only child.  The one-child policy itself 
helps by reducing financial obligations on the part of 
parents at a time when incomes are rising across the nation. 
Additionally, when the only child eventually leaves home, 
the pet can continue to provide comfort to the "empty 
nesters" left behind.  Second, many young people, who are 
also enjoying increasing levels of disposable incomes, view 
pets as a fashion and identity statement -- a middle class 
status symbol.  The mere fact that they are not saving the 
money or spending it in more traditional ways may in itself 
be considered an avant-garde move.  Finally, as Chinese 
society undergoes unparalleled changes, many people rely on 
pets to relieve the stress, uncertainty, and loneliness 
associated with these radical changes.  For many young 
people a dog offers the companionship they crave without the 
heightened responsibilities a child (or a spouse) brings. 
 
Beijing Loosens the Collar by Lowering Fees... 
--------------------------------------------- - 
 
¶6. (U) Regardless of the reason for the increase, the 
Chinese are raising more pets -- some legally and others 
not.  All dogs in China must have a license, but because 
fees tend to be prohibitive, many people do not license 
their pets.  Statistics from the Beijing Public Security 
Bureau (PSB) reveal that at the end of 2002, there were 
roughly 1.4 million dogs in Beijing, and only one-tenth of 
them had been registered.  In response to this reality, in 
late 2003 the capital cut the first-year registration fee 
for a pet dog from roughly USD 600 to USD 120; the fees for 
subsequent years dropped from USD 240 a year to USD 60, 
according to Chinese press reports.  More than 40 categories 
of dogs deemed "dangerous" by city authorities because of 
their size remain illegal to own, however, and Beijing also 
imposes a "one-dog policy" that restricts each family to 
owning only one dog, according to Hong Kong press reports. 
 
...But Guangzhou Fees Remain Doggedly High, So Dogs Remain 
Unregistered 
--------------------------------------------- ------------- 
 
¶7. (U) Guangzhou's "Dog Raising Management Regulations" 
first came into effect in 1997.  Article 10 of these 
regulations stipulates a fee of RMB 10,000 (approximately 
USD 1,250) to register a dog, followed by a further annual 
fee of RMB 6,000 (about USD 750).  Probably as a result of 
these high fees, Guangzhou has only approximately 800 
registered dogs, according to a local newspaper.  The number 
of unregistered dogs in Guangzhou, however, is 
conservatively estimated by the same paper to be between 
50,000 to 60,000.  There are currently political efforts 
underway to lower the fees, and by extension, to encourage 
owners to register their dogs.  In March 2006 during the 
annual Guangzhou CPC and CPPCC meetings, CPPCC delegate and 
South China Agriculture University professor Zhu Xingquan 
submitted a motion for pet management that included 
abolishing registration fees and cutting the annual fee for 
the first year to RMB 1,000 (about USD 125), and further 
reducing the fee to RMB 500 (roughly USD 63) in the second 
year, according to local press reports.  He also suggested 
that annual fees for a dog consecutively registered by the 
same family for more than three years be progressively 
reduced.  The local press also reported that Shenzhen City's 
 
GUANGZHOU 00011052  003.2 OF 004 
 
 
CPC recently passed a "Draft Regulation of Dog Raising 
Management," which abolished the original registration fee 
of RMB 5,000 (approximately USD 625) and cut the annual fee 
from RMB 2,000 (roughly USD 250) to RMB 300 (about USD 38). 
 
But Does the Proposal Stand Only A Dog's Chance of Passing? 
--------------------------------------------- -------------- 
 
¶8. (U) While the motion has been submitted and the proposed 
changes are making their way through the political process, 
Zhu himself noted, however, that this is the fifth time a 
proposal of this kind has been raised in recent years -- the 
previous four efforts were never successful in seeing the 
motion included in the legislative plan.  The draft 
regulation in Shenzhen, likewise, is also still subject to 
the Guangdong CPC's final approval. 
 
"Cry Havoc and Let Slip the War on Dogs" 
---------------------------------------- 
 
¶9. (U) The proliferation of unregistered dogs in Guangzhou 
led to a crackdown in the fall of 2005.  Local press reports 
from that time noted that the Guangzhou PSB along with the 
Guangzhou Administration of Industry and Commerce, 
Agriculture Bureau, Environment and Sanitation Bureau, and 
Public Health Bureau, carried out a campaign aimed against: 
(1) illegal sales and diagnostic treatment of dogs; (2) the 
raising of large dog breeds; (3) irregularities in dog- 
walking; and (4) the failure to comply with dog vaccination 
regulations. (Note:  According to Guangzhou's "Dog Raising 
Management Regulations", pet dogs must measure less than 60 
cm in length (roughly 24 inches) and less than 40 cm in 
height (about 16 inches).  End Note.)  A Western press 
report on the crackdown commented that the Guangzhou police 
conducted house-to-house searches and confiscated 
unregistered dogs from parks and veterinary clinics.  The 
report also noted that officials said the cull was necessary 
to counter the spread of rabies given that 244 people died 
of rabies in Guangdong in 2004, a 41% rise over 2003.  Local 
press reports on the incident included a police explanation 
that more than 36,000 people in Guangzhou were attacked by 
dogs in 2004, and between January-July 2005 another 25,000 
were attacked.  Police officials also said that in recent 
years Guangzhou authorities have seized and disposed of 
14,000 unregistered dogs, according to local press reports. 
 
Despite the Crackdown, It's Still the Year of the Dog 
--------------------------------------------- -------- 
 
¶10. (U) So where does this leave Guangzhou's dog owners? 
The culling incident of last fall appears to have faded from 
the memories of many dog owners -- if not from various pet- 
related internet forums where the shock and outrage remains 
posted for all to see.  Around Guangzhou owners can be seen 
in various parts of town publicly displaying their dogs. 
Apparently the desire to spend time in the open with their 
pets or the yearning to show them off overrides the fear of 
having them confiscated. 
 
¶11. (U) To illustrate the atmosphere of openness, on a 
recent Sunday morning, Congenoff witnessed a gathering of a 
local dog club in the relatively affluent neighborhood of Er 
Sha Island.  In an open field, dogs and their owners were 
gathered into a group, happily mingling with each other. 
While the dogs were of all types -- golden retrievers, 
English sheepdogs, King Charles spaniels, and Pekinese -- 
the owners were mostly all of the "yuppie" type.   Many of 
the dogs sported doggie outfits, and one of them was even 
dressed to match its owner.  An organizer soon arrived, 
checked off names from a list, and handed out matching 
yellow hats.  Soon after, the dogs and owners departed 
together on two buses and drove off for an apparent outing. 
Before the group departed, Congenoff had a chance to ask one 
of the owners why he was speaking English to his dog?  He 
replied that (naturally!) dogs understand English. 
 
GUANGZHOU 00011052  004.2 OF 004 
 
 
 
¶12. (U) An Econoff witnessed a similar scene in an affluent 
part of Shenzhen.  There, the gathered owners were not of 
the "yuppie" ilk, and were decidedly less enthusiastic about 
the actual pooches than the Guangzhou crowd.  In fact, they 
seemed mostly interested in interacting with the other 
owners.  Still, it was the dogs that provided the common 
ground between them.  After the meeting dispersed, the 
owners all went their separate ways, suggesting that their 
original bond came through their shared dog-ownership. 
 
Comment:  The End of a Dog Eat Dog World?  Not Quite Yet. 
--------------------------------------------- ------------ 
 
¶13. (SBU) To say that dog ownership is a mark of a growing 
middle-class would be somewhat of a stretch.  Some of the 
most notable pet owners we have noticed in Guangzhou are in 
fact homeless.  However, the increased spending on pets is a 
clear indicator of the growing purchasing power of city 
residents in China.  Where in the recent past every `fen' 
had to be used to ensure a family's basic needs, now some 
people have the luxury of spending some of their hard-earned 
RMB on, well, an animal.  Clearly, things are changing for 
the better for many Chinese. 
 
¶14. (SBU) Meanwhile, the attitude shift that accompanies 
this increased dog ownership could reflect a larger societal 
change; after all, some say that a society's treatment of 
pets also reflects its treatment of humans and other living 
things.  As more and more Chinese -- who no longer must 
scrape out their own existence -- can afford the costs 
associated with raising dogs, they can perhaps also afford 
to care more about their fellow citizens as well as other 
animals and, by extension, the environment.  In the best 
case scenario, today's pet owners will come to see their 
neighbors as worthy of at least the same care and attention 
as Fido, and thus their concern for their own species may 
increase as well. 
 
DONG