5 Months in China

It has been about 5 months since I left Washington DC and although I have not written as much as I would have like, it is now time to share some thoughts. I guess I don't really have a good excuse for not writing more. Maybe I was just trying to take it all in, maybe it was due to the fact that I don't really like writing that much, or maybe I am focusing too much time on work and studying Chinese.

When one first arrives in Shanghai, or China for that matter, there is just so much going on. So many hilarious and unbelievable everyday occurrences. At first you want to share them all and become yet another expat amazed at the spitting, lack of personal space, the food, etc. Any poor expat soul that was nice enough to include you in their circle are probably regretting it at this point. My favorites are the people that wear pajamas all day long. Yes, I was told it is a sign of wealth, that someone could just be in PJs all day and not have to do anything else. People go to the store, walk down the streets, etc. all in their pajamas. As the seasons change, the pajamas also change. In the summer, men pretty much stick to loafers and boxers but that changes with the weather. I am eager to find out what the winter lineup will consist of. I am hoping for one piece PJs with built-in feet.

The longer I find myself in Shanghai, the less I feel I can articulate and explain back home what I was experiencing. One friend told me recently, after being in China for a day you can write a book. After being in China for a month, you can write a magazine article. After more than a month, you can't write anything.

I find this to be very true. I have learned a lot about China and the culture but the longer you are here, the more complex it becomes. Each layer you discover leads to more layers and even greater complexity. In addition, there are so many "China hands" that have much more knowledge and experience. Most of my friends have been in Shanghai 2-5 years. I cannot begin to act like I know China. I guess one learns the parts of China they want to explore and are intimately involved with.

Although I would like to have more local contacts, most of my experiences within China has revolved around business. The economic boom in China is amazing but as we all keep hearing, the system is in no way perfect. Although China makes most of our goods these days, this does not come without a whole host of challenges. As one Chinese business leader once stated, "hey, we have only been doing this for 15 years." The Chinese are like teenagers--young and energetic but one cannot assume that they know how it all works. They will act like they know what they are doing, but I have learned the hard way that one must verify and question everything.

Looking back on my time so far, I am most fascinated by China's desire to change from a low-skilled manufacturing country to one of increasing skilled labor. China knows it has to move up the value chain but this will take some time. For better of worse, China still thrives on replication verses innovation. From DVDs, to clothing, to online sites, China lacks innovation. This is obviously a huge generalization but I have experienced it first hand. From getting my web projects sourced in China, to our product innovations, the default is to find someone else that has already made something successful and tailor or copy it directly. The Chinese do not feel guilty about this. It is the way their world works. DVDs are a perfect example. One cannot find a regular DVD store in Shanghai. It is impossible to buy a proper copy of a DVD. With DVDs being sold at around a $1, how will this culture ever accept our pricing structure for these items? Is it cultural sentiments or a lack of regulation and enforcement? Do we feel a different sort of guilt or is it just more difficult for us to find these products? I think it is a little of both with more emphasis on availability.

The problem from a business innovation perspective (ok, one of many), is that once a new idea ever does arrive, usually beginning in the West, tons of Chinese companies try and replicate the concept and therefore none of them get traction. This happens with ideas like Twitter, Facebook, etc. No one can build out a brand or a concept fast enough to gain any traction. In order to be successful, one needs a lot of capital upfront to get the brand way out in front of any competition. We have seen a couple examples of this in China--Alibaba and Baidu--but these are the exceptions. As we hear over and over again, the China market is difficult because even though it has so much potential (yes, yes, over a billion customers), it is by no means a guarantee. I will continue to discuss this and other topics surrounding China in the coming months, stay tuned.