Feral Jundi

Wednesday, September 22, 2010

Executive Protection: The Explosive Growth Of The Close Protection Industry In China

When Zhe, a national-level kung fu coach and former government security agent, started his company eight years ago, aiming to serve a high-end, wealthy clientele, he recalls there were few if any competitors in the game. By the end of last year, according to the Ministry of Public Security, the private security business had grown into a $1.2 billion industry with about 2,767 companies employing more than two million security guards. 

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    Wow, I had no idea it was this big?  And what is really interesting about this, is how this will translate into China’s presence throughout the world?  If the rich in China are reaching out to the close protection industry, then I would imagine that some of this relationship would spill overseas into some of the places overseas.  Especially in the war zones or in countries that China’s executives and businessmen might have some concerns in.

    I have to think that out of those 2,767 companies providing over two million security guards, that there are a few who have interests in overseas work.  I wouldn’t be surprised that a few of them might even consider themselves a PMC and are seeking to enter into this area of contracting in order to support China’s policy goals throughout the world. That’s if they have been watching how the US uses companies.

    Finally, it looks like they are going through a period of regulation concerns over how their industry is monitored and kept in check.  Nothing new there, and this is a problem world wide.  Some countries do better than others. Still, there will always be issues and especially when governments are involved with the process. lol –Matt

As China’s wealthy grow in numbers, so do their protectors

Bodyguard services are big hit

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As China’s wealthy grow in numbers, so do their protectors

By Keith B. RichburgSunday, September 19, 2010

BEIJING – Perhaps the most visible sign of the explosion of private wealth in China tries hard not to be visible at all – the private bodyguard.

They work as drivers or nannies, or blend into a businessman’s coterie looking like a secretary, a briefcase carrier or a toady. Unlike bodyguards in the United States, they are generally not tall and imposing; in fact, many are women, on the theory that females in the retinue attract less attention.

And also unlike in the United States, they are never armed, since private citizens in China are largely prohibited from owning firearms. Rather, Chinese bodyguards are martial arts experts, trained to disarm or subdue an attacker with a few quick thrusts, jabs and hand chops.

“In China, we don’t need people who know guns,” said Michael Zhe, president of Beijing VSS Security Consulting Ltd, which started in 2002 and counts itself as the country’s oldest private security firm. “Bodyguards can use one or two blows to stop an attacker.”

When Zhe, a national-level kung fu coach and former government security agent, started his company eight years ago, aiming to serve a high-end, wealthy clientele, he recalls there were few if any competitors in the game. By the end of last year, according to the Ministry of Public Security, the private security business had grown into a $1.2 billion industry with about 2,767 companies employing more than two million security guards.

The burgeoning personal protection industry is a reflection of the dramatic growth in prosperity here that has created a new class of wealthy Chinese – but that has also exacerbated the already-wide chasm between the haves and have-nots.

As millions of Chinese have grown richer – and often indulge in the ostentatious trappings of new money – so, too, has the resentment increased from those left behind, threatening the ruling Communist Party’s stated goal of maintaining social stability. There have been stories here of kidnappings of wealthy people, contract hits being ordered by disgruntled business associates, and increasing random acts of violence. China this year has been hit by a spate of vicious attacks on kindergarten and primary school children, which some psychologists have blamed on the economic dislocation.

“The booming of the security industry reflects the rich people’s worry about the safety of their families and themselves,” said Ni Shoubin, professor with the Shanghai Institute of Foreign Trade. “The population is disgusted by how these rich people are becoming rich, and all society has started to hate rich people. And the rich people must feel that resentment, and it makes them feel insecure.”

Private bodyguards now do everything from protecting wealthy celebrities and businessmen to assisting in security for such major events as the Shanghai World Expo.

That rapid growth has prompted the Chinese government to start trying to rein in the industry. Up to now, the private security firms have operated in a legal “gray area,” with no guidelines, regulations or standards – and with long-established security consultants such as Zhe fretting that many are fly-by-night outfits that could tarnish the entire industry.

In April, the State Council, China’s equivalent of a cabinet, announced it would be drafting regulations to bring the freewheeling security industry under control. Zhe’s company is helping local police bureaus draft regulations, set industry standards and draft a textbook for training private bodyguards.

China is still a relatively safe country. But violent crime is on the rise. A report by China’s respected Academy of Social Sciences this year found a “dramatic increase” in violent crime, including homicides, robbery and rape in 2009 over the previous year, with prosecutors reporting 10 percent more cases. The report said crime was likely to rise again for 2010 because of factory closings and high unemployment.

Many of China’s new wealthy elite have decided to maintain a lower profile. Some are dispensing with the usual displays of luxury. And increasingly, they are turning to private security companies for protection.

“You need someone you can trust to protect your assets, to protect yourself, and protect your family,” said Patrick Pun, who returned to Shanghai from Seattle and three years ago started Newcogs Co. Ltd, a successful online marketing company. Pun signed a contract with Zhe’s VSS firm for round-the-clock security for his home and office.

“The wealth gap in China is getting bigger and bigger,” Pun said. “A few people are getting wealthier and wealthier, and a majority of the people are poor. It’s a painful stage for any developing country.”

Pun added that he tries to keep a low profile, and it helps to have a bodyguard who doubles as a driver. “I don’t think it’s a good option for me to have a group of security guards around me,” he said. “If you do that, the crowds will start to pay attention to you.”

Chen Yongching, 27, a former military martial arts expert who started his security company, Tianjiao Special Protection, in 2008, said the trend in China is for the bodyguards to be smaller in stature. “If they’re too big, it would be too obvious,” Chen said. ” We can get lost in a crowd – you don’t recognize us.”

Chen said about 40 percent of his bodyguards are women. One, Chai Chang, 25, stands just 5 feet and 4 inches tall, and weighs 121 pounds. But she is trained in martial arts and freestyle fighting, and says, “When we practice, I fight two guys, no problem.”

Chang studied computer science in college, and her parents expected her to follow the family tradition and become a teacher. She tried it for a while, but thought the bodyguard life would be more exciting – and now she accompanies Chinese and Hong Kong celebrities around town.

As China opens more to the world, it is also becoming a destination for international celebrities – rock stars and rappers, basketball and tennis players, actors and globe-trotting billionaires – and all of them require 24/7 protection, an additional boost to the private security industry.

For some of these visitors, the local bodyguards initially seem too small, occasionally making for a cultural clash. Chen Zhen, director of player development for the China Open tennis tournament, has been contracting with VSS since 2004 to provide bodyguards for the players.

For tennis players, bodyguards should be at least 6 feet. “It’s a must for them to wear a black suit and earphones, because that’s the professional look for bodyguards,” she said. The smaller guards, she said, “just don’t give them a sense of security.”

Story here.

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Bodyguard services are big hit

Li Jiabao

06-09-2010

Wealthy and high-profile clients seek protection from professionals

The recent assault of a high-profile campaigner by two thugs has sparked fresh interest in bodyguard services from the capital’s rich and famous.

Fang Zhouzi, who is known as “science cop” because of his crusade against academic fraud and pseudoscience, was jumped by two men last Sunday as he returned to his Shijingshan-district home.

He escaped serious injury but the ease with which such a controversial figure could be beaten made many reach for the yellow book in search of bodyguard services.

Entrepreneurs and high-end businessmen as well as celebrities are among those who are increasingly using bodyguard agencies that now operate under recently released regulations.

“The demand for private bodyguard services has surged since 2008,” said Chen Yongqing, president of Tianjiao Special Security Consultancy Company, a local bodyguard provider.

“The strong demand is mainly a reflection of economic success and partially thanks to the attention Beijing has received from the world.”

While such services have been available for several years, China’s laws have been hazy on the legality of bodyguards, prompting many firms in the past to call themselves security service companies.

However, new regulations governing the security service industry took effect on Jan 1 and stipulate that security service companies are entitled to provide protection to individuals.

Beijing, with a population of about 20 million, has 20 to 30 companies offering such services, said Ma Jianfeng, general manager of the Lightning Bodyguard Company.

“But 80 percent of these companies do not meet the professional standards of the bodyguard service,” Ma claimed.

Chen agreed that many bodyguard providers are not up to standard.

“Only two or three bodyguard service companies are professional here,” Chen said. “More than 10 others are mainly security service firms.”

Xu Kun, a manager and bodyguard at Lightning Bodyguard Company, said business has been good recently and he is usually needed for hands-on work a couple of times a month.

“Now, bodyguards need to use more brain than muscle and fighting skills,” Xu said.

Lightning Bodyguard Company has more than 60 bodyguards, half of whom are female, according to Xu, who spent two years in the army.

Xu added that the company provides free services to underprivileged people whose safety is threatened.

He said there is no shortage of people wanting to do the work because the money is very good.

According to Beijing News, a male bodyguard can earn 22,000 yuan (US$3,241) a month while a woman can make 28,000 yuan.

Temporary male bodyguards can bring in 300 yuan an hour while women can earn 350.

“A female bodyguard earns more because it is more difficult to select and train a female bodyguard,” Chen said.

He added that prices vary wildly from one bodyguard company to another because there are no industry standards, meaning the quality of service varies.

Bodyguards are usually recruited from the ranks of former soldiers and retired members of special forces. Some come from martial arts schools and regular law enforcement.

“Bodyguard companies in the capital are moving toward becoming high-end service providers,” Chen said.

“Bodyguards are no longer recognized as people who can fight against 10 or more attackers. They are more like versatile servants who can provide security advice as well as transportation and secretarial services.”

Story here.

3 Comments

  1. Yeah. China is all over Africa and South America, as well as the Iraqi oil fields.

    Comment by Jason A — Wednesday, September 22, 2010 @ 7:09 AM

  2. Being able to disable an attacker with one or two blows is impressive, but if the fight goes kinetic, more than fists and feet may be needed. I’m sure these companies are very well suited for their present task, but perhaps their focus on hand to hand will hamper them internationally? Perhaps not… I know any kidnapping or assassination planned by Hezbollah (for example) probably involves firearms… Just saying.

    Comment by matt heath — Wednesday, September 22, 2010 @ 6:54 PM

  3. Good point Matt. You know, I was thinking that the Israeli guy providing kidnap and ransom training probably benefits from this unarmed philosophy that is being promoted in China. If I remember, the Chinese are one of the top individuals being kidnapped these days. lol

    https://feraljundi.com/2010/08/11/kidnap-and-ransom-chinese-seek-anti-terrorism-training-for-work-abroad/

    Comment by headjundi — Wednesday, September 22, 2010 @ 10:50 PM

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