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October 29, 2004
China
I have been in Beijing and Shanghai for the past few days. I have several insights gleaned from conversations with business people, reporters, my colleagues and government officials.
First, China is more like the constituent parts of Europe than the single market of the US in the diversity of economic status and level of development. There are regions of China such as Beijing, Guangzhou and Shanghai where average income continues to rise and key concerns are environment, education and wellness. In other areas, the transition to a modern economy is only beginning and the emphasis is on attracting foreign investment and jobs. There is no such thing as a pan-China marketing strategy—companies need to consider a customized approach to each of the 36 provinces.
Second, China's manufacturing prowess is now being driven forward by mom and pop entrepreneurs outside of the large cities mentioned above, not just the State Owned Enterprises that partner with giant foreign companies. These small businesses are often receiving business advice or financing from Western companies eager to sell them components such as semiconductors and engines.
Third, China still lacks a service culture. When I arrived at the US Consulate in Shanghai for a meeting, a uniformed soldier asked, "What's bothering you?" You could starve to death before a waiter comes by to take your order at a restaurant. Part of this is a function of excess demand and insufficient supply in a period of increasing affluence.
Fourth, there is considerable improvement in the transparency demonstrated by Government. The Chinese Government learned from the SARS outbreak in March, 2003, specifically that immediate and continuous release of information is required to achieve the desired level of credibility. Wen Jiabao, the Premier, made a very public visit to HIV/AIDS patients in a local hospital two months ago to demonstrate that the disease is not transferred by hand shakes. The media's criticism tends to focus on the commercial sector.
Fifth, environment is a serious and growing challenge for this country. The smog in Hong Kong, floating in from manufacturing facilities and power plants in Southern China, was the subject of a three part series in the South China Morning Post last week. Five million new cars and trucks are being sold in 2004, while the infrastructure strains to keep up.
I have great affection for this country. I spent my honeymoon here in 1986, just after the Cultural Revolution and just before the economic boom. I am certain that I would live here if I were an ambitious, single guy. It is a window into the future with a strong sense of its past.
Richard
Posted by Edelman at October 29, 2004 9:22 AM
Comments
What is the role of the universities in the current chinese development? Is politics also playing a role? Do you people feel a need for democracy or are they focusing on opportunities?
China seems to be in an amazing place now, as I haven't read or seen any other country who had or is having a transition like the Chinese... In a way, communists are vindicating their principles. Or is it?
Posted by: Ram at November 3, 2004 1:23 PM
Hi Richard, You will have great experience as working in China, such a country with great opportunities and huge market. It provides a stage which you can play the business role you want the most. However, risk and chance exist at the same time. Social network is very important for starting and developing business in China. Good Luck and have fun in China.
Posted by: Sharon Liang at November 4, 2004 4:03 AM
Richard,
This is a great way to communicate with all of us. Thank you for your take, I really enjoy it. On a personal note, I want to know how i can get hired at the Melbourne, Florida office. My number one goal is to join your amazing team and I not only have PR experience and education, but also have a career of technology expertise - just what you are aimed at in Melbourne. Any information you can give me would be greatly appreciated. By the way, sorry about posting this on here but I figured the best way to get to the top is to go where the top people are. Please feel free to email me at any time.
Thank you again,
Seth Oyer
Posted by: Seth Oyer at November 4, 2004 4:46 PM
Dear Richard,
Hear is my thought to your comments.
1.The role of the universities is assistants of Chinese enterprises. Politics may be very important in some field , but it can't be seen in normal economic activities. As you know, people heare focus more in economic than in democracy. Because life is better day by day for many people.
2. China is really an amazing place in the world. As a normal Chinese man , I am glad to talk with you.
Best Regards,
Jackie Lu
Posted by: Jackie Lu at November 10, 2004 10:33 PM
Interesting... that's good info to know.
Posted by: Baxter at November 24, 2004 12:45 PM
Richard,
I've worked with your company on business deals (I'm in financial services), and am impressed at your personally starting a blog and covering such diverse topics.
It was interesting to see your note that you don't think China has a service culture. I suppose it depends on the interactions you have. I spent 10 days in Shanghai and Beijing a couple months ago and came away (as did my trip-mates) profoundly impressed with their service culture. It's far superior to ours at the retail levels. The friendly counter clerk at McDonald's, the waitress in the tiny un-touristy restaurant who didn't speak English but generously interpreted our hand signals, the concierge at our hotel, the people who let us stop them on the street when we were lost....time and again we came across people who were willing to help, and even had a smile on their face when they did.
Go into any fast food restaurant in America and you'll find a discouraged, disgruntled workforce. That hasn't yet happened to China. From what we saw, there's a strong service culture, an energy, a belief that this is their time.
Thanks again for your thoughts. Look forward to reading more.
Andrea
New York City
Posted by: Andrea at December 3, 2004 4:18 PM
Hi Richard,
Just came across your site and found most of your comments about China were accurate. But I found it interesting that you used the uniformed soldier as a sample of lacking of service in China.
Being a Chinese who lived, worked and travelled extensively in North America, I found the service section is much better in China than US or Canada. The sales person or waiter/waitress are so willing to do almost everything for a guest not because they are trying to get an raise from the boss but do it naturally.
In terms of the soldier, who in fact, must be an armed police. And he was assigned there to protect the US Consultate. I don't if a non-American wondering outside of whitehouse what would the police/secret service do to me.
Anyways, it is nice to know that you are willing to learn more about the country. People kept saying that China is a place full of opportunities, but I would remind them that it is also a very dangerous place if they don't know the culture and the rules.
Take care,
Ursula
Posted by: Ursula Chen at June 17, 2005 1:56 AM
Richard,
Hope not too late to re-cap on this. I am interested because I am a Chinese.
*Third, China still lacks a service culture.
- I agree with you. My American friends also had bad experiences in US consulate in China... As Chinese we tend to ignore the unhappiness.
*** Disagree with Andrea.
- McDonald's to Americans is not what McDonald's to Chinese. From an perspective man in 4A agency, many Chinese still take western food as fancy and real western food not being aware of French/Italian/Greek dishes.
To finish, Richard,I am sure you can have happier experience since China is on the pace to improve. Your desire to stay in China is same as an American boy in Ogi*** PR Beijing I know. You are not alone.
Best wishes,
JohnsonZC
Posted by: JohnsonZC at June 17, 2005 2:21 PM
Did you like it?I went to China 3 times already!
Posted by: sophie at June 25, 2005 4:01 PM
Sophie,
I loved it--I have been going since my honeymoon in 1986.
Richard
Posted by: Richard Edelman at July 6, 2005 1:24 PM
I've never been there, but after reading your post I'm really going to do it!
Posted by: Samanta at August 1, 2005 4:00 AM