Final Reflection: China Trip 2007

By Steven Rodger

Phuket, Thailand
Revised in Tokyo, Japan
and Hanalei, Hawaii

Only after the bus pulled away from the Grand Beijing Hotel, leaving me behind, did I truly begin to digest the size of the Chinese Tsunami heading east. I had two hours to find my new hotel, check in, get cleaned up before I was to navigate to one of many Starbucks in the eastern megatropolis of Beijing. I had a meeting with a famous Chinese Cinematographer who wanted to establish guan xi with me, and bring his films to America. We had an interpreter, Vivian from Beida (Peking University) translate our discussion, as I learned about the complexities of the film and television industry in China. Then, I described the United States television/film industry through Viv to the two film artists, Chen and Vivian and provided advice about how to establish their company's work in America.

It became incredibly apparent how important guan xi was in China. Chen had been granted access to several forbidden parts of western China by the government to film several documentaries about a Chinese breeding facility which very few have access to, let alone filming. He showed me a sample of his work on his laptop in the Starbucks and I was blown away by his talent. I thought to myself how an such a talented film director isn't rich. He also gave me a photo-book he had published with stunning scenic and cultural photography taken from rural western China. I was shocked by how intellectual property was so minimal in China, and how much he could prosper if I could find a U.S. based connection for his films. I realized how as Americans, we take such things for granted, and I assured him that I would do my best to market his work in the U.S. (when I return home in September). I was honored when he asked if I wanted to form a collaborated studio with his company and my own in California. Turns out, his last production was not cheap, costing over $100,000 USD to create. Already, several of his films have been popular in Japan, where Pandas and nature are sacred to the Japanese people. He had several other projects in the making but none have be possible without permission from the government . It became extremely evident how important connections to the local government, which I learned plays an imperative role in conducting business in China.

One of the things American companies could learn about doing business in China is to loosen up their rules to allow for more negotiations. There are less written out rules in China, which paves the way for increased business deals to be made. This is a primary reason for their recent exponential growth in the past decade, One way to really feel this is when bargaining for goods at one of the many markets in Beijing or any other city for that matter. Prices will be quoted at normal US prices. Then you can offer a low-ball rate, and see if they bite. Ninety percent of the time, the Chinese person selling the goods will chase after you and will be willing to make a deal even if they sell their good at just above their bottom line price, barely making a few yuan. I found that negotiations in China both entertaining and challenging, and thought some people need more practice at it. Interestingly enough, it seemed that the business deals made after a minute or so of bargaining yielded a more content customer and seller.

It is apparent that only the strong survive in China. While this is true in most business environments, it is especially a reality in Chinese culture. This is due to the astronomical abundance of labor. There seems to be endless workers doing mindless tasks which nobody in the United States would bother to do. The Chinese make hard-working people in the U.S. look lazy. For example, I went into a shoe store to see if they had any new kicks in my size. In a small shoe store about the size of a small Foot Locker there were 20+ shoe sales people, all wanting to size you up. While they did not carry any shoes close to my size it was interesting seeing the abundance of labor, and the immense size of the workforce. You can feel the fast paced movement of life the large Chinese cities we visited, which was much greater than similar sized cities in America. With the abundance of cheap labor, it means almost anything is possible.

Growth and development in China seems to be a textbook example of a third-world country. One disappointment was the lack of environmental standards in general in China. Though my undergraduate education was focused on researching solutions for such problems, I briefly ignored them in order to not have a biased opinion about what the companies had to say about their environmental efforts and advancements. The most common themed answer related to environmental based questions was that being profitable was their first effort, and sustainability and becoming green would come later. The first solid example of environmentalism in action came from Lenovo computer manufacturing where an engineer designed a packaging devices which was not only lighter, but it also required less material and could be recycled. This translated into lighter shipments, and increased revenues. It is ideas like these which need to be set in place more in Chinese businesses. As manufacturers explode shipments to the world, wouldn't it be smart if they took a minute, thought about how to become more efficient, possibly do something green and save some money. While becoming sustainable is becoming trendy now-a-days in America, hopefully it will spread to Chinese businesses more.

An interesting portion of the trip occurred when we visited English corner. When I mentioned that I was completing my MBA, and I had a undergraduate background in Environmental Science, the eyes of the 8 Chinese circling me lit up. They claimed their government would hire me in a second...This was reassuring as it showed that the Chinese too, care about their environment. Sucking up the pollution atop the Great Wall was the first time that I was really bothered by the pollution, as I still have a whooping cough which has been lingering for the last week. Eventually, I recovered but you could tell the amount of sick people in China was proportionally higher than other places I have traveled to. I am currently revising the draft of this reflection in Japan, and it amazing how much cleaner Japan is than China. The Japanese appreciate their environment much more than the typical Chinese person, and this can be seen through their large gardens and efficient transportation systems. I am currently in Tokyo, which has a similar population to Beijing, but there is relatively low pollution. Perhaps China should take a hint from their neighbors to the east regarding environmental business. Investing in a better transportation system would be a great first step.

Despite the pollution, the Chinese are now making a larger effort to be green, and clean up their environment. As one local told me, 'You think the pollution bad now....you should come here 10 years ago." We could also see this evident during company visits including Walmart who is supposedly building in sustainable practices into their business models. I was especially impressed with the work of UNIC, at Suzhou Industrial Park (SIP).
Alex Smayda and Jason Whelan who we had went clubbing with in Shanghai a few days earlier explained their businesses. Ironically, yesterday I was watching Chinese television and I saw a special on the discovery channel describing Mr. Whelan's business, Nature Works. This is the type of company which China should model their future businesses from.

Being one of the few students in the program with a science based undergraduate degree, this was the first company which I felt that I would most want to work with due to their philosophy of having a strong business foundation without draining the environment. Using fermented corn, lactic acid is formed into a polymer which is converted into a biodegradable plastic, instead of using petroleum based plastics which takes years to decompose in landfills. It was interesting to see how strong guan xi was established with Jason, and Alex's company Stream Source which used the PLA plastic to manufacture highly profitable hangers. Their companies demonstrated a refreshing example of the direction China must go in before they simply pollute their country until they start committing suicide by gulping the smog.

It became apparent that these expats saw the opportunity to do business in China, and were riding the success. Their lives seemed fast paced, as business deals are made much more quickly than in the United States. Again, this is because of the lack of loopholes which companies must overcome. Not having an abundance of strict business rules to follow seemed like an incredible advantage to conducting business in China, whereas in America certain decisions take days if not years to take place. This faced paced growth certainly has advantages, yet I wonder sometimes about the integrity of some of the final plans.

China has made me appreciate growing up and living in the United States, similarly to how I feel when I visit any other third world country. The opportunities which Americans take for granted are the dreams for some Chinese. We are fortunate to live in a country which is far less polluted with a more heterogeneous population. While China is diverse with it's many different dialects and cultures, it made you realize how unique the U.S. is with many more nationalities represented. This becomes even more apparent when you visit a country like Japan. I also appreciate how much easier it is to make money in America. Chinese working the streets filled every nook and cranny marketing just about everything and anything you can think of. It was also incredible seeing that 'Everything' is made here in China. From Shirts, to Computers, and from buildings to clothes hangars, we saw a range of industries which gave a unique perspective of the origin of the world's material possessions. Traveling through China also gave a skewed perspective of the cost of everything. Now that I'm in Thailand, I find myself bargaining for goods merely to save small change after getting accustom to the cost of goods in China.

Overall, the fast paced environment of China makes one realize that anything is doable...at least much more so than the United States. It seems that a deal can always be conducted. The Chinese people have a strong desire to work harder than Americans, and you can feel this just by talking to practically any ordinary citizens. As Athena's cousin Matt explained, 'the Chinese are going to come to America and eat your lunch, and then steal your kids lunches too'. It is also becoming evident as they are learning English while we are simply watching. On one hand, poverty and pollution is rampant in China, representing a environmentalists worst nightmare. On the other hand, these problems provide for immense opportunities. While the government is attempting to fix these problems, they can provide only so much for their estimated 1.32 Billion individuals.

In a land where intellectual property rights are minimal someone like myself would find it difficult to make a living in China. Also, I'm not sure if I could handle so many bad drivers. As I ponder whether I could become an expat like Lonnie or Alex there are many pros and cons. Immense opportunities await to quickly climb a corporate ladder in China and bags of money hanging from trees for those who want to live outside of their American bubble of comfort. It seems like if you were to work in China, being young and single is the way to go, as bringing family and kids into the foreign culture seems like a struggle...Not to mention the many health hazards. Would I move to China for business? As Bob Barker used to say "If the price is right". To move to a land where American comforts are minimal, it would take a decent severance package to move me to a polluted foreign country. Personally, if I was to work in an Asian country I would prefer Japan as the country is cleaner, greener and has higher salaries.

Conclusion:

China provides an amazing opportunity for those who want to remove themselves from the normal working system in America and ride the growth as China booms. While many of the businesses in China mimic those in the United States, China does an amazing job of getting the job done in a timely, frugal manner which anyone can appreciate. Certainly there are many lessons to be learned from Chinese businesses, and I am honored to be able to have visited so many firms during our brief visit to the country. It will be those individuals who are working up the corporate ladder now in China who will be controlling the business world in the next decade, While it means giving up the comforts of America it should provide to be prosperous both culturally and financially to those willing to take the plunge.

There is a tsunami of Chinese coming towards America...who's going to catch it?

Steve Rodger
史提夫

-Recommendations for China-bound travelers
Some last tips for those who are coming to China in the near future. If you start your trip in Beijing consider flying with no baggage, then buy everything you need in the Silk or Pearl market at a tenth of the cost that it would cost you in the US. If you have feet bigger than size US 12 don't bother trying to find shoes that fit. For some good times, do go into a shoe store and tell them that you want size 12US shoes and get smiles and laughs from all 20 of the shoe sales people. Lastly, if you've always wanted to be a millionaire save up about $120,000USD and move to China, and live like a king.

written 7/10/07