A HAPPY FAMILY VOYAGE
The Chaos are likely the best-known Chinese immigrant family in the United States. Shipping magnate James Chao tells Larry Lee in New York that raising ‘wonderful daughters’ has been his greatest triumph.
James S.C. Chao is not a member of the Harvard Club New York. However, this fact doesn’t prevent him from going there at all.
“My four daughters and two sons-in-law are members here,” says Chao, proudly. Only alumni and faculty of Harvard are pre-qualified to apply for membership at the HCNY.
Four of Chao’s six daughters graduated from Harvard Business School. The Chao family has donated more than $40 million to Harvard, where the executive education building was named after, in Harvard’s words, the matriarch of this most prominent and accomplished Chinese-American family, the late Ruth Mulan Chu Chao.
On Jan 13 — one day after James Chao returned to New York after attending the senate confirmation hearing of his eldest daughter, Elaine L. Chao, as secretary of transportation — I invited James Chao to have lunch at this club. It was not easy for someone of his age to travel from the Big Apple to the capital of the country and sit in a hearing for almost four hours.
“We have a family tradition: One for all, and all for one,” says James Chao.
James Chao is chairman of the Foremost Group, an international shipping, trade and finance company he founded in 1964. Headquartered in New York near the Harvard Club, with branch offices all over the world, the bulk fleet totals about 4 million deadweight tons.
Honored guest
At 90, James Chao is in very good shape. He can recall clearly the details of what we talked about some 20 years ago. “You wrote many editorials, right?” Writing editorials was one of my routines back then.
James Chao recalls his early years. “As a student at Shanghai Jiaotong University in the 1940s, I was the publisher of a student newspaper, Youth.”
That was a biweekly newspaper with a circulation of more than 2,000 copies per issue distributed to eight national and three private universities in Shanghai.
“I was in the limelight at that time, dreaming to be a journalist in the future.”
That was during the final phase of the civil war in China. It was dangerous for a student newspaper to cover sensitive political issues. Youth ceased to publish after its fifth issue. So ended James Chao’s dream of journalism.
“I have always been an idealist. At that time, I had been determined to contribute to my country by studying science and engineering.”
James Chao mentioned Qin Fen (1882-1973), a distant relative on his father’s side and a Harvard-trained mathematician.
“Qin Fen had a big impact on me. If you want to do something big, you’ve got to be well educated.”
We talked about his newly published biography, Fearless against the Wind, and the nomination of his eldest daughter as the secretary-designate of the Department of Transportation. We discussed the question: What is the formula, if there is one, for him to have such a wonderful family with six devoted daughters and his brilliant career as a shipping tycoon.
The servers at the HCNY are familiar with James Chao. He has his designated table in a relatively quiet corner, where he can conveniently conduct conversation with guests. The waiter brought him a glass of Bailey’s.
“Actually I just ordered this once. They remembered and offer this tome every time I am here.”
James Chao is not a picky person. Instead of tea, he asked for a glass of hot water. Most Chinese of his generation develop the habit of drinking tea. And they can name different kinds of tea and are able to distinguish the taste and quality differences. James Chao can’t.
“I am OK to drink any kind of tea, or no tea. I don’t drink alcohol. When I was a young seaman, I did drink liquor.”
James Chao likes the Japanese food at the HCNY. “It’s a big deal to eat good sashimi anywhere in the world. You need to keep the fresh raw fish filet in the refrigerator at 0 C for 60 hours to kill all the bacteria and parasites and also keep the best flavor. The chefs here can do this.”
James Chao doesn’t care about certain things in his daily life, but he does have principles about his diet.
David Haviland, executive chef of the HCNY, confirmed James Chao’s comment. Actually, to freeze raw fish before serving has been a New York City regulation since August 2015. Haviland also told me that the Japanese-food chef at this club was trained by Masaharu Morimoto, a world-famoussushi master who used to be the head chef of Nobu and executive chef of the Sony Club.
Early life
James Chao was born in a small village in Jiading county, now part of Shanghai. Naturally, he enjoys Shanghai cuisine, with sweet flavors in almost all dishes. James Chao mentions eel paste, stir-fried eel with sugar, white pepper and many seasonings. However, as a poor immigrant coming to the United States in 1958, he had to give up his hometown’s delicious food. Chicken was his major staple then.
“A whole chicken was 29 cents. I boiled it. Making use of one chicken, I could prepare three meals. Besides eating chicken, I got a pot of chicken broth.” People from Shanghai love soup with meals.
While in the US, James Chao was separated from his family for three years. His wife joined him from Taiwan with their three daughters — Elaine, Jeanette and May — after a 37-day voyage over the Pacific.
James Chao loves his late wife, Ruth Mulan Chu Chao, who passed away on Aug 2, 2007. They had been together for 56 years.
“I came from a poor family, and her family was very rich,” James Chao says. He has the sweetest memories of her. “I was a country boy, who was very active and energetic, such as when using a camera and developing photos myself. Winning her heart was the greatest achievement of my whole life.”
James Chao’s father, Yiren Chao, was the principal of a primary school in his hometown. It was common for Chinese families in those years to build big new houses as long as they had money. However, James Chao’s father refused to do so. He spent almost all his money on his only child’s education.
Chao’s house in Jiading was really shabby and was demolished due to the construction of the Shanghai Formula 1 Track in 2005. This small house lies deep in James Chao’s memory.
“Without my father’s decision to not build a big house, I wouldn’t have been able to get my education, and my life would be totally different.”
That is Chao’s family tradition and may also explain why Chao’s children all went to top universities in the US.
“Basically, I learned the foundation of how to be a good person in China and how to do things in the US.”
Family matters
The Chaos may be the most prominent Chinese immigrant family in the US.
Elaine Chao, the first female Asian-American ever to be appointed to the president’s cabinet in US history, made headlines and history again
James S.C. Chao, chairman of the Foremost Group
when she was nominated on Nov 29, 2016, as the secretary of transportation.
She is the first Asian-American woman to serve as a member of two presidents’ cabinets, a feat few Americans, male or female, can match.
While Elaine Chao has often been the focus of the family, her father has been the leading actor on the stage, and Elaine Chao in a supporting role, in recent weeks.
The Chinese-language version of James Chao’s biography, Fearless against the Wind, was just published in Taiwan. As the timing coincided with the nomination of Elaine Chao, the book naturally was a sensation among the Chinese community and Chinese media in the US.
In 1998, when I was the Washington bureau chief for a Hong Kong newspaper, Elaine Chao granted me a long interview.
At that time, she was a distinguished fellow at a Washington think tank. She expressed her views clearly about many important issues, including some sensitive ones in the Asian community, such as affirmative action. She didn’t hide her objection to affirmative action by pointing out that quota sand goals harm Asian Americans, and the US — the land of opportunity — should be based on merit.
James Chao had heard of my article about Elaine Chao and extended an invitation to have lunch with him at the Harvard Club New York. That was the first time I met him and my first time visiting this prestigious club.
We had a very pleasant conversation during the lunch. He asked about my age, my experience as a journalist and my future writing plans.
At that time, I knew too little about James Chao and his family. All I knew was that he was quite a successful business man in the shipping industry. I knew he had six daughters who were all very talented, well educated and outstanding in their career paths. I have admired this wonderful father since.
James Chao was also very successful in educating his children. Whenever people praise this, James Chao always replies: “Thank God I had such a good wife. Without her, nothing would have happened.”
On June 6, 2016, all members of the Chao family were presented at the dedication ceremony of the Ruth Mulan Chu Chao Center at Harvard Business School. Elaine Chao’s husband, Senate Majority Leader Mitch McConnell, was also there.
When James Chao and Elaine Chao were in the photo session with media executives, the daughter asked some of us to switch positions to give older friends a more cental place.
McConnell is a congressional leader. But on that occasion, his role was son-in-law and husband. Other than smile and take constant requests for photos with guests, he was lowkey and in the background.
Knowing who you are in different circumstances is pivotal to doing things properly. That is a decisive factor of EQ.
Still at work
James Chao still goes to his Manhattan office every day like a young man. He has held the title as chairman of Foremost since its establishment. Angela, the youngest of the six Chao sisters and also an HBS alumna, is the deputy chairwoman.
James Chao is very happy to see Angela gradually taking over the business. On the day we met at the HCNY, Angela was in Japan to attend the handover and launch ceremony for a new 180,000-deadweight-ton bulk-cargo ship built for Foremost. After that, she was going to Qingdao, China, for another launch ceremony for another ship for Foremost.
All of his daughters have grown up — and so has Foremost. “Three additional cargo ships are under construction now,” James Chao says.
He was very happy with the expansion to provide more quality, reliable service to the world.
James Chao asked for a cup of coffee after the lunch. No sugar. He was relaxed, gentle and graceful. I believe he has nothing to worry about at this stage of his life.
“If a man has nothing to worry about, that would be boring,” James Chao replies.
“That means you are old, and you would have nothing to do with this world. My principle is, at a young age, you should associate more with senior people, and you will benefit from their knowledge and experience. At my age, I like to associate with young people. Doing so will keep you active and vigorous.”
A familial bond
Most people would agree that the core of the successful story of the Chao family is its wonderful daughters.
“They all possess traditional filial piety,” says James Chao. “Elaine calls me every night before I go to bed. If she can’t, due to travel or some other reasons, she’ll send an email.”
On the eve of Trump’s inauguration, James Chao traveled to Washington again. He hosted a dinner for some old friends, including alumni of Shanghai Jiaotong University, his alma mater. Elaine Chao and her husband attended.
Holding her father’s hand, Elaine Chao said, emotionally: “Not many people have fathers or parents who are able to see them in whatever they do. My mother left on Aug 2, 2007. I am extraordinarily grateful that my father is able to be here and see so much of what his children have been able to accomplish.”
Of her husband, Elaine said: “I have been very blessed to have a wonderful, supportive husband. He cooks. He does his own laundry.”
James Chao buried his beloved wife, Ruth Mulan Chu Chao, at Ferncliff Cemetery in Hartsdale, New York, about 40 kilometers north of midtown Manhattan. Chiang Kai-shek’s wife, Soong Mei-ling, is also buried there.
Every Saturday, James Chao visits Mulan’s final resting place and prepares a cup of tea for her. He loved to do the same when she was alive.
One week before the launch of James Chao’s biography at the HCNY, I had the luck to obtain a copy from Chiling Tong, longtime friend of the Chao family and founding president of the International Leadership Foundation. She used to be the associate director of the Minority Business Development Agency in the US Department of Commerce.
John Tsu, the late chairman of the Asian Republican National Committee, introduced us more than 20 years ago, and I had the honor to attend Tong’s wedding in Taipei in 1996. Her husband, Joel Szabat, is deputy assistant secretary of transportation and executive director of maritime administration.
Before we had lunch together, I was so excited to read James Chao’s 434-page biography in one night that I stayed up until 3 am. I met Tong and Szabat the next day, and we had a discussion about the book.
James Chao concludes, fairly, about his success: If you can’t change your environment, change yourself. He had struggled as a waiter and a low-level seaman in his early years.
Fortune is a core indicator to evaluate success. But for James Chao, his daughters — Elaine, May, Christine, Grace and Angela — are an even more brilliant report card he has earned. (His second daughter, Jeanette, passed away in 2008.)
I hope someone can translate this biography into English so that more people in the US could know his great family history.
Basically, I learned the foundation of how to be a good person in China and how to do things in the US.”