Oscar Galeano details how the decision to study in China changed his life and opened up new ‑ elds of business endeavor.
Returning home from China last year was as exciting and as terrifying as it was when I first came to Shanghai five years ago to do my Master's degree in international economics and trade. In China, I found everything I was looking for and more; a welcoming place full of beautiful people changing at an unbelievable rate.
Initially, I was terrified about going to China; I didn't speak the language, I'd be far from home and the people I loved, I didn't know anyone and I'd be leaving my career and contacts behind. But in my mind, China was where 'magic happened' and I kept in mind Bruce Lee's words: "Do not pray for an easy life, pray for the strength to endure a difficult one." I took the chance, hoping to be where history was being made and to see it with my own eyes. I made the right choice.
I was motivated by predictions that, as China merges into the world economy, best China practices would become best global practices, products developed in China would become global products, and industrial processes developed in China would become global processes. Encouraged by these notions, I went to university condent that, as China solidi fied its role as a major talent pool, executives would nd in China what they needed to lead the rest of the world.
The World Learning From China
In 2009, I started working in the consulting business and saw how China has its own rules. In order to succeed, you must understand them. Responding to seemingly unique China situations, multinational managers adapted management practices and design customized processes, separate form their global standards, to cope with the increasing local and global competition.
As an executive in the sustainability field, I also witnessed growing awareness amongst factory owners of the importance of achieving social responsibility standards and improving their competitiveness. And even as the sun sets on the 'Cheap Chinaera', China has much more to offer than just cheap labor. Wages may be rising fast but so is productivity. Workers are paid more because they produce more. In addition, competitiveness is not only about labor costs; it takes into consideration entire supply chains. While other countries may have lower labor costs, China's reliability and availability may still make it uneconomic to move production elsewhere.
Higher wages indicate a growing market and, throughout China, government initiatives to develop consumer society are improving the lives of the people. Around the world, Chinese consumers represent one of the best hopes for growth as the US, Japan and Europe strive to reduce expenses and pay off their debts. Soon, there may be opportunities for millions of Americans to design products and services for Chinese consumers. Witnessing Change During my stay in China, I witnessed China become the third, and then the second biggest economy in the world, beating out Germany and Japan. Not only did I see the 2008 Beijing Olympics, Shenzhen's 30th Anniversary and Shanghai's 2010 World Expo, but I also observed government e‑ orts to build a sustainable economy and a harmonious society.
China demands our attention, as evidenced by an increasing inflow of people from all over the world. And while you may find Starbucks, Apple Stores and Porsche dealers throughout most big cities, China is not 'westernizing'. While things are changing, China has over 5000 years history and cultural traditions, and foreigners hoping to do business in China would do well to understand this the best they can.
As increasing numbers of Chinese study in the world's most prestigious universities and work for large multinationals, they adapt Western business practices to the China context. Knowing, understanding and respecting these differences is essential to building healthy business relationships here.
China is essentially a Confucian society, hierarchical with a high degree of social mobility; the same as us, Chinese want better lives and they care deeply about their families. And while we may exhibit different behaviors and play office politics differently, social acknowledgement is critical to success, which is why the concept of "giving face"—showing respect or deference to others— is so important in Chinese culture.
Chinese are competitive; even though they're team players, they look to "win" at all levels of life. While they tend to be very strict with saving habits, price sensitivity and avoiding credit card interest payments, there's a simultaneous fixation with luxury goods. People may spend high percentages of their yearly income on cars, and it's common to see recent graduates treating friends to expensive meals that outstrip their salaries. These expenses are seen as investments in image and network.
In all honesty, it's hard to keep up with the pace of change in China and, in the year since I've left, I'm sure much more has changed. Most likely, the old stereotypes about cheap labor have been replaced with new concepts of innovation. Chinese products are starting to be recognized as world class products. And China is no longer only for adventurous lao wai (foreigners); it's a place that increasingly welcomes all kinds of people seeking a safe business environment. As more and more foreigners establish track records in China, the path of doing business here becomes increasingly broad, less because of westernization then because of shared experience.
