Propaganda

I enjoyed our trip to Beijing very much and I found the trip to TopNew industries to be very interesting, they make clothing for H*M and Columbia, they are a Govt owned factory and our tour was arranged by the Govt. The first thing you notice upon arriving at the factory is that the entire complex is surrounded by a fence and there is a guard at the front gate restricting access or is he really restricting workers from leaving? The plant is a very drab set of buildings built in the old Soviet Style and mostly run down. The conditions in the factory were very hot and the w. orkers looked like they were worked very hard although we were told that they only worked an 8 hour day, I am not so sure I believe that! We also toured there lunchroom which looked more like a prison cafeteria then a cafe we would be used to. The dorms were very interesting in that 8 young women shared a room with not much in it more then 4 sets of bunk beds with very thin mattresses, there were sinks and squat toilets down the end of the hall. While the conditions were poor, they were probably better then where these workers were living six months before and quite honestly the conditions were not that much worse then the Barracks I lived in at Fort Bragg. I found the plant manager very nice or at least he appeared that way, I did wonder how he interacted with the workers. I also thought the firm brochure written in Chinklish quite amusing along with the photos of the workers on trips to the great wall and to amusement parks. I highly doubt many of the workers at the plant get to go on such trips.

Lasting memories

I had reservations about our class trip to Beijing, but I must admit it was one of the most powerful life experiences I’ve had in my 25+ years. I have traveled to Canada, Mexico, the Caribbean and even Europe but nothing amounts to this trip. I could write about many memories but I find myself relating to a few on a weekly basis; the people of China, environmental factors, business and traffic.
Based on my observations, the Chinese have a much different concept of personal space than Americans. I found myself apologizing to strangers on the street every time I bumped into someone or I got an elbow for a greeting. However, it didn’t take me long to adjust to the culture by not acknowledging my rude behavior according to the American way. I assume Darwin visited China before developing his theory on survival of the fittest.
Another lesson learned from our trip is the environment challenges in China. Every morning when I take my dog, Bailey, for a walk I am grateful for the fresh air and EPA. It may not be the cleanest country in the world; but it is a wonderful place to live. I often take a deep breath and just stare at the blue sky and wonder what people from Beijing would think of our clean skies and water.
A daily observation of mine is how our two countries operate their businesses. In PBBI – US, every promotion, new hire or transferred employee is expected to sign non-compete and confidentiality agreements but in our office in China employees receive one document when they are first hired. Both countries have a similarity in that the businesses are having a difficult time keeping employees engaged and loyal to their company.
In addition to the many business lessons learned, I now know why Walt Disney does not have a theme park in China, you can experience enough of a thrill driving on the roads. Riding in the heart of Beijing is definitely enough of a thrill ride for any tourists. If it wasn’t for Mervet’s wonderful advice on looking out the side window I would never survived the cab ride. I couldn’t imagine getting stuck in a 10 day traffic jam.
Thank you all for helping make such great memories.

experience,understand and grow

Going to China was a remarkable experience. In the beginning I was apprehensive about going, in the end it was an experience that offered growth. All the business trips offered learning experiences. The one company trip that made me wonder more about the country was the visit to B & Q. This is a store very much like a Home Depot or Lowels. During the tour, the speaker Mr. Howard Xia explained that the department that was showing the most growth was the design department. He explained further that the reason for the growth was because that the Chinese people were not able to design a room with color and furniture that were complimentary and compatible together. This amazed me, we as Americans just assume that creativity would be a part of every ones development. Another thought provoking observation in the store was the very large bathroom fixture section in the store. Outside the hotel most of the bathrooms were eastern style toilets. There were toilets being sold that allowed air conditioning, seat warmers and I-pod plug ins for your listening enjoyment!
That observation I could relate to the country. Just like the contrast in the bathroom fixtures there were contrast in their way of life.
Ferrari dealerships and many bridal stores were around every corner, the very corner that had very depressed areas. I was moved by the poverty and the blatant begging that occurred on the streets. Blind men playing string instruments while a sighted person held out their hand. My heart went out to them. It opened my eyes that there are issues in all countries that need to be dealt with regardless of government.
So, on our last day, the sun came out for a little while from behind the smog and we climbed on the plane to start our journey back to America.
I learned to not judge but to try and understand. It was truly a moving experience.

An Invaluable Experience

Going into our trip, I didn’t quite know what to expect. Having frequently traveled myself (due to parents who believed that exploring the world was really the only true way to learn life’s lessons), I had never been to China. Visiting the Great Wall had always been on my bucket list, but for some odd reason, I had never really thought about exploring the surrounding areas. When it was announced that we would be headed to Beijing, I was incredibly excited! A new city on the planet I had never been to and I was about to explore it on an entirely different level than any of my past travels.

The intensity of the schedule was something that I loved. The bus rides, not so much. I get motion sick easily. But the actual visits to each company were so eye opening. I was and still am grateful for such an opportunity to visit places like Topnew to get an inside look on how state owned factories are operated; Microsoft to get an insider’s perspective of patent and trademark laws in China; getting the perspective of a Chinese company looking to expand globally in Lenovo; and also going to BASF where Joerg Wuttke gave an incredibly candid view of his own experiences of doing business in China coming from the western world himself. The discussions that we had with William Baker and Jack Perkowski were insightful as well. To hear their take on doing business in China, both positive and negative, allowed me and I believe the entire class to really think for our self and allow us to come to our own conclusions. This entire trip was a true learning experience that allowed us to learn something that may have taken us 4 months to learn in a traditional classroom in a very quick 7 day trip. It was incredibly valuable and I have already taken back a few things to my company to implement as we look to expand to mainland China.

Another fun aspect of the trip that I didn’t really think about prior to going was the friendships that I ended up making on the trip. Bonding with some fellow cohorts made this trip that much more enjoyable. Having dinners at restaurants in different hutongs each night was like an episode of the “Amazing Race” for us as we went through dark alley ways to find GEMS hidden in restaurants that had some of the best food I had ever tasted! It was such a bonding experience each night that I walked away from this trip having made lifelong friends. You can’t beat that.

WEST MEETS EAST!

Mr. William Baker of Mahon Investments showed an interesting insight about the differences between how people from two different parts of the world behave. To name a few, westerners are more direct to the point as compared to people from the east. Easterners tend to “dance around” before telling what the matter is. Westerners like to go to tanning salon while easterns like to be fair, they use umbrella to protect their skin from getting dark. Westerners are on a first name basis with their boss, Easterners address their supervisor as Sir or Ma’am. And the list goes on…

I’ve been here in the states for over six years and I often asked myself, where do I belong now? Am I one of those who call the westerns the “rich and the damned” as one of my friends who worked at a call center back home told me? Or am I one of the snobs who dreaded going to the third world countries in the East? Or will I choose to see the beauty of both worlds, the magnificent Great Wall from the East and Grand Canyon from the West, the uniqueness of each culture, the variety of food- the delicious mushroom soup and the Peking duck from the east and the steaks with mashed potato on the side from the west, the richness of the arts – the kung-fu show and the Broadway musical? Don’t these equally magnificent things make life more exciting? They do, at least to me, and the visit we had in China makes it even better. The idea of globalization excites me! Will there be a day that the words east and west just pertain to direction? Nothing more nothing less!

And yet another personal note, I had a good time in China. I was able to hike the Great Wall (only in ChinaJ), ran around the Forbidden City (many thanks to Rich!), sang on a karaoke (even though I was warned by my Dad not to sing), got to know my classmates better, and had a soothing foot massage!!! Hopefully next time when I go back it will be a business trip and/or if not, I will be able to at least stop by to Philippines! So till next time. Also, I want to thank our professors, Paul and Janet, Don, Tara, Grace and Isabel for this wonderful experience. zai jian!

seeing beyond distractions

I believe Mao was a brutal dictator, and responsible for the deaths of between 50 to 70 million people. I saw the longest line of people of my life at Tiananmen Square waiting to view his tomb. I had trouble reconciling these events.

Our hotel was comfortable, modern, and clean, and the service at the hotel was excellent. However, we could not safely drink the tap water. I also had trouble reconciling these facts.

Within a few blocks of our hotel we could visit car dealerships for some of the world's most expensive cars. When I left the main street, and wandered into some urban neighborhoods, I viewed abject poverty. These extremes made me uncomfortable, and a little puzzled.

My first impression was that these enigmas and contrasts were unique to China, and unlike anything else in the world. Upon reflection, I came to believe this was not true. I think all civilizations are replete with puzzles and irreconcilable extremes. China may be a work in process, but this is true of all civilizations. We do not need to travel beyond our own U.S. cities to view the wide spectrum of the human condition. It is possible to be distracted by the unique characteristics of each civilization, and obsess on the unfamiliar, but the similarities between civilizations are much more common. Weeks after seeing the Kung Fu show in Beijing, I attended a performance of KA by Cirque du Soleil at the MGM casino in Las Vegas. The two shows were amazingly similar. KA was a larger production, and it incorporated more engineering and technology, but the substance and style was very close to the Kung Fu show in Beijing.

One of my favorite philosophers, Soren Kierkegaard said, "People commonly travel the world over to see rivers and mountains, new stars, garish birds, freak fish, grotesque breeds of human; they fall into an animal stupor that gapes at existence and they think they have seen something." I believe that if we are mindful of what we see, we will be less distracted by the oddities, and more able to observe and appreciate how the fundamental elements of our lives are not reinvented as we cross political boundaries. I believe that doing business in China demands a respect for what is different in China, but is this very different from business-as-usual? As we do business with our own vendors and customers, shouldn't we respect their differences? I believe the fundamentals that serve you well in business in the U.S. will serve you equally well in China if you don't become too distracted by the differences.

The thing about China...

...it's full of Chinese people!

When people ask me about my trip I always start with that line. It's great to see people's bright and expectant face transition into a patronizing mocking look that just screams "Oh, Erik. Of course it is." Then I give them a little anecdote: NYC gets 36 million tourists every year. That's a lot of people, and people love NYC right? Beijing gets 504 million tourists every year. And 500 million of them are Chinese. The vast majority of which live in their village all year long working on their family's farm, or toiling away in factories in the coastal cities. And once a year they pack into buses and visit Tiananmen square, the Forbidden City, The Template of Heaven, and the city's various other sites.

That little tidbit usually shuts them up. To actually understand China you really need to go there and see it for yourself. It operates at a scale that even Americans, in the third largest country in the world, cannot comprehend. Beijing has a permanent population of 16 million people, but the officials don't even know what the actual population is! There are between 4 and 6 million migrant workers living temporarily in China at any given time--that's almost the entire population of NYC moving in and out of the city every year.

The streets are choked with people, bikes and cars. We didn't even see the sun for 11 days because of the smog. The entire country truly is a world unto itself and you cannot comprehend it just by reading the drivel produced by the Western news media. And certainly not the Western business media. If you believed the Wall St Journal or CNBC you'd think that China had already "won" and everyone is driving around in a new car talking on their iPhone. The reality is that 2/3 of the population still lives on about $800 per year. They are fouling their air and their water in the name of economic growth. They then take their paychecks and lend it back to us so we can buy more of their stuff.

My first significant experience with China happened on the flight from JFK to Beijing. I sat in the last row of the Air China 747 in the middle row aisle seat, with two empty seats between myself and a Chinese woman. The doors closed and I quickly realized I'd hit the jackpot: a 13 hour flight in a four seat row with just two people. As soon as this realization hit me the woman to my right had proceeded to stretch herself out, taking up both empty seats and securing herself almost a full sized bed for the duration of the flight. I'd read that the Chinese are aggressive, and seek to fill the rare empty spaces that they find in their cities, but this was too funny. If the plane had been headed to Frankfurt I feel confident that a glance and an unspoken nod, exchanged with the polite German to my right, would have been all that would be required to negotiate the splitting of the seats between the two of us. Not so with this particular Chinese woman. I was too slow to react and she took full advantage of it. Perhaps I am over generalizing, but I see an interesting analogy with the state of the world today. The developed world is fairly static: America, the UK, Germany, Australia, and the rest of the world all have their established roles. We know how Germany fits in to it, we know how the US fits in to it. Where does China fit in? We don't know how China's role in the world will develop, and I'm convinced that China doesn't know either -- yet.

After the trip the incident was given context: China isn't playing by the rules that have been established by the developed world because China is still very much a developing country. 800 million people live on less than $800 a year. Their cities and countryside are polluted and no one, not even the Chinese, can drink the water. But everyone is excited about China these days and no more so than the Chinese.

For every factory being set up by a Western multi-national it seems that there are three being setup by a Chinese company, doing the same thing, with an even lower cost structure. Jack Perkowski sums it best: A Westerner in China looks at a 100 Yuan bill and sees $14; a Chinese looks at that same bill and sees $100. That perception, while simple, colors how both sides do business in China.

Our trip to China: Where to begin? I’ve never experienced anything like this in my entire life. To be honest, I was nervous to go to a country so far away and so different from the United States. The 13.5 hour flight, the huge population, not knowing the language, the stories about what to avoid, the advice on what precautionary items to bring, and the unfamiliar city and food were only some of the factors that made this trip intimidating. I wasn’t quite sure what to expect. I truly believe that the one thing that made this trip so successful and amazing was the fact that we were all in it together – roughly 30 classmates, professors and faculty who have grown to be good friends. They were brave, they were familiar, they were supportive, they were extremely fun and they were what made this trip outstanding.

On July 9^th we arrived at the SUNY Albany campus to meet our bus waiting patiently to drive us under blue skies to the airport. These two things, the driving and the blue skies, were where I noticed an immediate difference between the United States and China. I was looking out the window of our plane, anxiously waiting for us to break through the clouds so that I could get my first glimpse of Beijing, but the clouds didn’t seem to break during our descent. The combination of overcast and pollution created a fog like atmosphere that surrounded us the entire trip. This was my first realization of actually how populated China is and brought the related challenges into perspective.

Our fantastic tour guides, Isabel and Grace, led us to our bus where we met, who I consider, the most talented bus driver in the world! It takes sheer skill and nerves of steel to drive a car, let alone a bus, through the populated streets of Beijing. It’s everybody’s right-of-way. Pedestrians, cyclists, cars, buses and trucks all own the road. On one of our trips an elderly woman bravely walked out in front of our giant bus, put her hand up – as if stopping the bus all on her own, and walked calmly across the busy intersection. One of our driver’s most impressive moments was turning the massive bus around in the jam-packed parking lot of B&Q (the business our group introduced). B&Q was very similar to a Home Depot here in the states, except the cultural differences create challenges that Home Depot doesn’t necessarily have to deal with. The home improvement and construction mindset for most Americans is “do it yourself”, which is much different than in China. The Chinese would most likely hire a builder to take care of home improvement items. This obviously changes their marketing strategy, product sales, etc.

One of my favorite presenters was Jack Perkowski, founder of JFP Holdings. Mr. Perkowski had great success on Wall Street, but then saw an opportunity and made the move to China. His vision and entrepreneurial spirit is inspiring and truly made the world seem a lot smaller in my eyes. I thought of China as this far off land and never expected to have theopportunity to travel there. Mr. Perkowski, on the other hand, saw a business need and made it happen. Possibilities are endless if you truly put your mind to it. His presentation made me think of my own capabilities. Am I looking at things from every angle? Am I living up to my full potential? What are my ultimate goals and how do I make them happen?

Our trip to China was extremely educational and motivating. It helped me better understand both the Chinese and American cultures. I have a stronger appreciation for the United States, and I have a newly found appreciation for what the World has to offer. We climbed the Great Wall, toured the Forbidden City, visited the Temple of Heaven, negotiated at the silk market, met with inspirational business professionals, had a ton of fun, and much more. Amazing trip – I’ll remember it always, and I couldn’t have asked for a better group of people to travel with.

The two faces of China

My morning of July 9, 2010 was an exciting one. It was the day my MBA classmates and I embarked on our highly anticipated trip to China. For months we had all been talking about it and it was clear that we all had different expectations and even some fears. It was a long day of flying west half way around the globe and over the North Pole. We saw the sun shine for twenty four consecutive hours and arrived in Beijing early evening the next day on July 10th.

Beijing’s new airport was built for the Summer Olympics of 2008. It’s a modern airport with wide open architecture and spotless, clean marble floors serving as the gate for the rest of the world to the capital city of China. The forty minute bus ride to the hotel took us through some of the modern neighborhoods of Beijing, where tall buildings covered in neon lights illuminated the early night sky.

The Novotel Peace is a French chain hotel decorated in a modern western style. If it had not been for the Chinese personnel that in a very efficient way checked us in with the expert direction of our tour guides, I would not have felt that I had arrived to China yet. A short walk in the immediate neighborhood that night helped me set my mind in the right place and time.

I have had the good fortune of traveling extensively not only in my own country of Mexico but in many European countries as well. I have to say that I really never had an interest in visiting China or any of its Asian neighbors. I must now confess that this trip changed my mind. Being in China, seeing its people smiling at us, and experiencing their culture, opened my mind to the desire of knowing more about whom they are, and the place where they come from.

Ten days in China is certainly not a lot of time but I was determined to make every minute count. After all, I did not think that I would ever go back but this thought had vanished by the end of the journey.

Two companies I enjoyed visiting were Topnew which provided us with a one hundred percent Chinese business experience; and BASF where I learned that, for the most part, to succeed in business today, whether in China or elsewhere, a global perspective with local knowledge is required.

In the evenings I enjoyed dining out with friends trying different restaurants and regional cuisines. Venturing into the city’s hutongs at night was quite an experience.

One of the highlights of the trip for me was traveling to the Jinshanling section of the Ming Great Wall. Initially, we were disappointed that it was a rainy day. Once we got there we climbed the mountain under what felt like a monsoon. Ascending steep slopes that had become muddy streams we finally got to the top and reached the wall. This section of The Great Wall is eleven kilometers (seven miles) long and has sixty seven watchtowers. On a better day we would have walked for four hours to reach the Mutianyu Great Wall where a zip line would have taken us to the bottom of the mountain to meet our driver. But the weather and the fact that this last section was closed for visitors shortened our adventure to two and a half hours. At the end, we were thankful for the rain. If it had been 90 degrees, humid and sunny we probably would not have enjoyed it nearly as much as we did.

The second amazing experience was traveling to Xi’an with Mervet and Chris. Our purpose was to visit the Terracotta Army built by Qin Shi Huang, the first Emperor of China, to watch over his tomb. The statues date from 210 BC. Estimates indicate that in the three pits that contain the Army there are over 8,000 soldiers, 130 chariots with 520 horses and 150 cavalry horses, the majority of which are still buried in the pits. It was a pleasant surprise that Xi’an had much more to offer than just this famous place. Xi’an is a walled city. The wall is very well preserved, can be enjoyed by walking or cycling and offers a great view of both the inner and outer parts of the city. Xi’an’s Shaanxi History Museum has amazing artifacts and offers a glimpse into the history of some of the most important Dynasties. Other sites we visited included The Great Mosque, The Drum Tower and The Big Wild Goose Pagoda.

Recently I met an interesting Chinese couple. Her American name is Corrine and her Chinese name is Chin Ai which means “True Love”. There is a story behind her name: when her mother was pregnant with her she already had a daughter and her grandfather wanted a boy. Because she was a girl grandpa did not want her and grandma decided that she would keep her and take care of her with true love. The gentleman’s American name is Daniel and his Chinese name is Fook Ang which means prosperity and peace.

China has an amazing culture and history, and after decades of isolation China has emerged as a worldwide economic powerhouse. The government has made many efforts to show a new face to the rest of the world, that of a modern and dynamic society that can and has shaped the world that we know today. However it is hard not to recognize that deep in their society they still cherish their philosophy which calls for a constant pursuit of balance in body and mind and this governs everything that they do, including the way that they do business locally and globally.

Pam's China Lessons

• Even though China has a large percentage of poor, particularly in the rural areas, it is important due to enormity of the population in sheer numbers.
• As of last week, China has surpassed Japan and is now the second largest economy in the world behind USA!
• The opportunities for new business ventures are endless as made clear by speakers from Mahon China and JFP Holdings. Anything is possible but not necessarily easy.
• Though urbanization is creating a growing middle class that in Beijing looked much like the American counterparts in terms of style and dress, there is a great difference in cultural value of money verses actual value.
• As Americans visiting China, we took great pride in our “negotiation skills” that are a given in the Chinese culture. We most often failed to understand that we were often negotiating literally over the equivalent of pennies.
• One of our speakers, Jack Perkowski, presented our group with the concept of a "cultural" equivalent of $100 vs. 100RMB. That 100RMB is valued to Chinese as much as our $100 is to us, even though it's real equivalent was only $14.74.
• A lot of items really are very cheap in China!
• The one child family rules are very acceptable to the Chinese. They feel they cannot afford more children, thus more than one would be a financial burden.
• Young couples that BOTH come from a single child family are allowed to have two children. I had the impression that Isabella was disappointed that her husband had a brother thus only one child allowed. It seemed in direct conflict with her earlier statement that one child was acceptable due to expense.
• China has a huge population, however, the one child rule has created this 4 grandparent, 2 parent, 1 child population that over time will dramatically reduce the population over the next generation
• Health care delivery in China is very inefficient with such large populations outside of city areas; they are often hard to reach. The rural populations also are less literate, and have less money.
• Due to the many poor, particularly in the rural areas, I came to understand why "good enough" quality needs to be considered even though we see it as “bad” quality. It makes goods available that the poor can afford.
• Cities like Beijing and Shanghai are international cities and thus may not reflect the overall Chinese population. For example, it was quite a surprise to see a Rolls Royce and a Maserati car dealership along with stores like Chanel and Louis Vuitton along the avenues. However, as we took advantage of services on the same street, foot massages, we got a little different story. The young masseuse told us he worked 6 days a week, 12 hours a day, and had no time to go home and visit his family who lived hours away.
• I was fascinated by the multinational company speakers, American and European, who were in China for a very long time. For foreigners whose earnings reflect their home countries, the lifestyle in China seems to be very appealing.
• Topnew, the government owned textile company, offered some interesting points for consideration. Many of us felt that there was a lack of transparency throughout much of the presentation. The factory was impeccably clean and seemingly efficient. It was a clear example of Chinese efficiency with limited expensive technology offset by inexpensive labor, as it seemed like endless rows of employees at sewing machines. I couldn't help but wonder if it typically looked that orderly or if it was cleaned up for visitors. Were the workers usually that focused and with little interaction with each other?
• The dormitories, at first seemed a little disconcerting for many of us, but when you consider how little the factory workers earned each month, you can also appreciate that they were also housed and fed, thus having little or no expenses.
• Factory workers came from rural areas for short stints to make enough money to bring home and survive until the next time they were in need. This makes for a pretty young and/or ever changing employee population. I wonder how it affects loyalty and commitment to the employer. Do these temporary workers go back to the same factories?
• B&Q looked very similar in many ways to our Home Depot and Lowe's home improvement stores. They do a much greater business in a complete installation vs. "do-it-yourself". They say this is due to apartments bought only as 4 walls and everything from kitchen to bathroom must be purchased. Because the buyers must work and labor is cheap, it has great value to hire the installation. This confuses me a bit. If labor in general is cheap, how are they earning enough money to pay for the labor? Another contradiction...only fancy western style toilets, but there were predominately eastern toilets used everywhere we went.
• Guanxi not only is very important, but must be successfully developed if a company is to be profitable in China. Most interesting to me is that there are a diverse number of ways that it can be cultivated. Joint ventures or partnering with a Chinese organization is helpful. Developing relationships with appropriate government officials can also create a “partnership” that allows the government to have some say if the company provides some important good or service that helps the government with its goals. Bribery too, can be an acceptable form of quanxi. In a nutshell, you must find the right Chinese “support” for your particular company or industry to make it all work.
• Microsoft seems to have lacked in guanxi in its first years in China. My interpretation of what was presented to us is that Microsoft was very Unsuccessful in China for the 15 years due to what may be seen as American arrogance. It seems that they are “giving away” their operating system to saturate the market and hope to profit by that later.