GLOBAL PARTNERS MBA
The China Dream
Coming into our China Experience, our group identified what we believed were the five salient issues. These issues were government corruption, human rights, environmental considerations, social mobility, and quality standards. However, besides Jeff’s previous experiences, we didn’t have much of an actual reference on China. As noted in a couple of visits, China for many of us was what we saw portrayed in the media we saw in the media growing up. But was this necessarily right? As we engulfed ourselves in China through corporate, cultural, and personal visits, we began to see scratch the surface on some of what was true.
Over the past decades, China has experienced a kind of economic growth that has made the world stop and take note. This has raised much debate and speculation in the international, and especially the business, communities on if China will lead the world or falter by the wayside. Some corporations, like Citibank believe China has the potential to surpass the US by 2020. China has the Five year plans and the megacities, so why not? They see the market trends (integration, growth, rapid development, accelerated privatization, rapid urbanization, the rise of the middle class and significant growth), as opportunities for China to leverage globalization, maintain product innovation, fill the status gap, and build on its strengths. However, right now China is facing some real problems that will ultimately determine its success or failure.
Pollution: China Going Green
As many of us experienced, especially me, the air pollution in China is a major factor in the quality of China’s future growth. The level of population and affluence growth has exponentially accelerated the reality of the environmental strain in China right now. However this strain does not just effect China, the whole world shares one environment, one ecosystem and one earth. In this light, the pollution has become a global issue as well. But how do you grow without causing a little ruin. Sadly, China is growing at such a pace after many other nations have had the right to do so already, thus is being punished to maintain an environmental standard not enforced on previous nations. As we have seen at the Urban Planning Museum in Shanghai and throughout our visits, China is actively trying to raise the standards in this arena, and other countries may be able to take note.
The Wealth Gap: Keeping up with the Wangs
Where we travelled in China the people were mostly very rich or at least gave that appearance. However, the poverty pockets, human rights issues, and unemployment, were continually being mentioned as poignant issues for China’s future success. If the government cannot sustain a more even distribution of wealth, even if it can somehow develop a growth image throughout the world, domestically it will ultimately crumble. This is what powers the government’s efforts behind indigenous growth. Is this necessarily the right way, maybe not? However, it shows both the power and some of the immaturity of the government in dealing with China’s future.
The Global Community: Keeping it all in Perspective
As we saw with the parts tourism concept at Ford, for businesses, as the world keeps growing more interconnected, its about keeping the pieces working effectively together. With this interconnectedness and the growth of China (and the other BRICS nations) right now, the global order is being challenged. Now all firms and all nations, must address its future growth from a global perspective.
At many visits, like Jones Day , UPS, and CNN, the speakers alluded to the ease at which government had the ability to manipulate regulations and how this may affect foreign entities especially. However, as recent happenings have demonstrated, the world is one big community now. he earthquakes in Japan affected the whole world. Likewise, what China does and how it chooses to play in the global community, affects the whole world. One of China’s greatest strengths has been its low cost manufacturing, as costs have continued to rise, now it is trying to make the shift from manufacturer to inventor. How this is perceived or played out in the global community is a major indicator of how China will fare in the future.
The China Dream: Harmony
For China one of the biggest issues it faces will inevitably be holding it all together without exploding. But how does China do this in the face of regionalism, unemployment, pollution, the wealth gaps, poverty pockets, and class struggles. From an optimistic standpoint it can done by playing on the strengths of resilience and the government influence. Like a firm, China must clarify its strategy and position, and begin to see all sides of the equation when making decisions. The innovation China is seeking must start at the heart of the matter with its leaders.
At Peking University, we learned about expanding the pie, and in a simple way this is what China needs to happen in order to do in maintain harmony amongst its people, with its neighbors, and with heaven. It needs to step aside from its own personal positions and see what’s at stake and what is really most important.
Ultimately, China is positioned to continue to grow in economic dominance and pure market size. However, its real fate lies with its ability to control its empowered constituents, maintain indigenous growth without excluding its foreign counterparts, and sustain it all within the environment. Can it be done? Sure. Will it be done? We have to wait and see. We believe that while China has its undeniably strengths, the sheer scale of the pitfalls it faces, will not let its see its full potential. So China will be, and many will argue is, currently a leader on some aspects, however, we don’t see it as overturning the likes of the already established EU and US. But who can really say. Can China continue to grow without government reform? Can it keep its people happy? Can it sustain its environmental impact? Can China bridge the wealth gap? Maybe these are the real questions.
