Leadership Mission to the People’s Republic of China Report
August 26 – September 1, 2012
Sponsored by the Chinese People's Association for Friendship
with Foreign Countries (CPAFFC)
Table of Contents
Delegation List – Page 3
A Letter from the President & CEO – Page 4
Trip Itinerary – Page 6
Meeting with the National Development and Reform Commission by Ms. Judy Rubinstein –
Page 8
Meeting with Mr. Yu Yougen, General Director of Department of African and American by Mr.
Nigel J. Sutton – Page 10
Meeting Notes: Cashmere Factory by Mr. Patrick Terrien – Page 12
Visit to Jingling Village of Eco-relocation of Lingwu City by Dr. Lori E. Murray – Page 13
Meeting Notes: Shanghai High School, hosted by Tang Shengchang, Headmaster by Mr. Patrick
Terrien – Page 15
Meeting with Wang Yimin Ph.D., Chairman of Supervisory Board; Hiroki Miyazato, Deputy
Chief Executive Officer; Chen Suqin, General Manager; and Nick Lu, Senior Vice President at
Haitong Securities Co., Ltd by Mr. Michael Phillip – Page 17
Reflections on China by Mr. Patrick Terrien – Page 18
World Affairs Councils of America
Leadership Delegation to the People's Republic of China
Mr. Todd Culpepper - Head of Delegation
President & CEO, World Affairs Councils of America
Dr. Lori E. Murray
Director, WACA National Board
Mr. Michael Phillip
Director, WACA National Board
First Vice President, Merrill Lynch
Director, World Affairs Council of California Central Coast
Ms. Judith Rubinstein
Director, Naples Council on World Affairs
Mr. Nigel Sutton
VP of International Business Development, Raytheon International
Director, World Affairs Council - Washington, DC
Mr. Patrick Terrien
President & CEO, Columbus Council on World Affairs
A Letter from the President & CEO
Twenty years ago, in the summer of 1993, my wife Tonya and I left the dusty little Beijing
airport on our way back to the States after a year of teaching English. We were young, just 26years-old, with only college degrees and one year of teaching behind and a world of promise and
responsibility before. A little weary from the year in China yet proud of our contributions to our
students, we headed home with plans to start new jobs and a family.
When I stepped into the new Beijing airport this
past August as head of delegation for the World
Affairs Councils of America’s Leadership
Mission to the People’s Republic of China, it
didn’t feel like the same place. And it wasn’t.
The new international terminal was built to
welcome the masses for the 2008 Summer
Olympic Games and in no way resembled what
had existed before. This new terminal was the
airport of a developed country, or at least one on
its way. It was spacious, with high ceilings,
modern equipment and the latest technology.
This was my first clue that the Beijing I knew as
a young teacher no longer existed.
The ride into the city offered no familiar signs of the past. The roadside homes were probably
there 20 years ago but would have been the easiest things to overlook in a city with more
exciting things to offer, such as the Temple of Heaven and the Forbidden City. When we took an
exit from the highway and our host said we were close to the hotel, still nothing was familiar. It
was only when we turned at the next light that I saw what had been our beacon in Beijing – the
main railway station – glowing in the moonlight like a ghost from the past. It looked very much
the same, save for the KFC and Pizza Hut franchises wrapped around its waist. How many times
had Tonya and I pushed our way through the crowded halls of the station? How many times had
we found the Foreigner’s Ticket Office closed? And there was the time when we walked three
times to a nearby hotel to call our school to let them know we would be late, only to ultimately
miss the train on our last effort. The train then was a reliable commodity in China, one that we
trusted time and time again to take us from one place to another, often a long, tiring journey but
one full of adventure and rich experiences.
But this was not the same Beijing. The next day I could not find the bicycles. Where were the
bicycles? Twenty years ago that’s all I had noticed on my wide-eyed ride in from the airport … a
sea of bicycles carrying couches and other large items on the back or with three riders. Today
there were mostly cars. Cars everywhere. China’s economic rise is evident in the means of
transportation its citizens now enjoy. Our delegation would later learn that pollution in the city is
at an all-time high and much of it relates to emissions from the large number of vehicles on the
road, exacerbating an already challenging issue for the country.
After three days in Beijing, our delegation flew to Ningxia, a province pushing out west that is
home to minority groups, 30 percent of them Muslim. It was a noticeable change from Beijing
with its crowded streets. Yinchuan, the city where we stayed, was noticeably quieter although
covered in large office buildings, apartments, restaurants and shops. This rural area of China had
been equally impacted by a thriving economy and a fast push for growth. I quit counting all the
cranes and unfinished buildings under construction. And while the city was large, the people
themselves seemed more down-to-earth, almost like farmers who had discovered oil in their
backyards. They just didn’t seem to know what to do with all this new wealth.
We followed Ningxia with a visit to Shanghai, China’s largest city and home to most of its
thriving businesses and investments firms, along with ex-patriots from all over the world. It is
truly an international city. I vividly remember walking Shanghai’s crowded streets in 1993,
pushing my way through people with every step. I remember seeing the machinery across from
the Bund, digging ground for new buildings.
I knew going into China this time that those buildings had been completed, but was still
fascinated to discover what I did – that section of Shanghai, known as Pudong, is almost another
city entirely. What has been built since 1993 is larger than many cities in the world, and it’s
simply an extension of Shanghai and still very much part of downtown life. Shanghai, more than
any other place in the country, is a testament to China’s rapid economic advancement in the last
several years.
Our visit was amazing and enlightening, and would not have been possible without the
hospitality and generosity of our partners at the Chinese People's Association for Friendship with
Foreign Countries, the Foreign and Overseas Chinese Affairs of the People's Government of
Ningxia Autonomous Region, and the Shanghai People's Friendship Association.
Please read the reports that follow of the excellent meetings our delegation enjoyed, and please
let any member of our delegation know of ways we can support your future programming related
to the People’s Republic of China.
S. Todd Culpepper
President & CEO
World Affairs Councils of America
Washington, DC
Trip Itinerary
Beijing
Sunday, August 26
1:30 PM Depart for the Forbidden City
2:00 PM Guided tour of the Forbidden City
3:00 PM Depart for the Friendship Store
3:30 PM Arrive at the Friendship Store
4:30 PM Depart for hotel
5:30 PM Dinner
Monday, August 27
8:00 AM Breakfast
9:20 AM Depart for the Temple of Heaven
10:00 AM Guided tour of the Temple of Heaven
11:00 AM Depart for Quanjude Roast Duck Restaurant
11:30 AM Lunch hosted by Xie Yuan, General Director of American and Oceania Department of
CPAFFC at Quanjude Roast Duck Restaurant
1:00 PM Depart for hotel
1:50 PM Depart for the Ministry of Education
2:30 PM Meet with Mr. Yu Yougen, General Director of Department of African & American
Programs of China Education Association for International Exchange
3:30 PM Depart for hotel
5:30 PM Dinner
7:20 PM Depart for Laoshe Teahouse for performances
9:20 PM Depart for hotel
9:40 PM Arrive at hotel
Tuesday, August 28
8:00 AM Breakfast
9:00 AM Depart for National Development and Reform Commission
10:00 AM Meet with Mr.Li Haiyan, Inspector of Department of International Cooperation
11:30 AM Lunch
1:00 PM Depart for hotel
3:00 PM Depart for airport
5:50 PM Depart for Ningxia
Ningxia
7:40 PM Arrive at Ningxia
8:30 PM Check in Kempinski Hotel
Wednesday, August 29
7:30 AM Breakfast
8:00 AM Leave for Zhongyin Cashmere of Lingwu City
9:00 AM Visit Zhongyin Cashmere
10:30 AM Visit Baijitan Sand Blockade Farm
12:00 PM Lunch
1:30 PM Visit Jingling Village of eco-relocation of Lingwu City
3:30 PM Return to Yinchuan
6:30 PM Dinner Banquet
Thursday, August 30
7:20 AM Breakfast
7:50 AM Check out
8:00 AM Leave for Western Xia Mausoleums
10:00 AM Leave for Airport
12:30 PM Delegation leaves for Shanghai
Shanghai
3:00 PM Arrive at Pudong Airport in Shanghai
4:00 PM Arrive at Hotel
6:00 PM Banquet hosted by Wang Xiaoshu, Vice President of Shanghai
People's Friendship Association
7:15 PM Depart for hotel
Friday, August 31
8:00 AM Breakfast
9:20 AM Depart for Shanghai Middle School
11:30 AM Lunch
2:00 PM Visit Haitong International Securities Group Ltd.
3:05 PM Visit Shanghai Urban Planning Exhibition Center
3:50 PM Visit Shanghai Museum
5:30 PM Dinner
Saturday, September 1
7:00 AM Depart for airport to return to U.S.
Meeting with the National Development and Reform Commission
People’s Republic of China
Report by Ms. Judy Rubinstein
Sunday, August 26, 2012
The delegation from the World Affairs Council of America met on August 26, 2012 with
Li Haiyan, Inspector of the Department of International Cooperation. Mr. Li was formerly in the
Chinese Embassy in Washington, D. C. in Economic Affairs. He has spoken at World Affairs
Councils in the United States and has high regard for the organization. He addressed us in
Chinese, although his English is quite good.
He introduced the National Planning Commission – which has 28 departments. The Department
of International Cooperation is in charge of cooperation between the National Development and
Reform Commission and international organizations, and foreign government agencies and
institutions. They promote major international projects and studies on the world economy. They
deal with micro-economic control and comprehensive controls in China. The social market
economy is not so into macro, or large-economic forces, but into micro – how to allocate scarce
resources most effectively. They make five-year plans – from the government, to lower level, to
enterprises. They have social and environmental development – 5 year plans (not necessarily
economic development). For instance, China needs to decrease emissions by 10 percent and 20
percent. The government has made major investments in technology to help meet these targets.
China has had 30 years of continuous
growth. However, there has been a slow
down recently because of the external
economic environment and less exports.
Trends for the future show that such rapid
growth is not sustainable. There is a focus
on the quality of economic growth, rather
than speed. The new five-year plan is for
2011-2015. The target for GDP growth in
2011 is 7 percent.
The target for GDP growth in 2013 is 7
percent and was 3.5 percent for 2012 (first
half was 7.8 percent), so they are
enforcing the performance of economic
growth. The Chinese depended more on
exports in the past. In the future, they will
encourage more domestic consumption.
The focus will be on technology and
innovation and higher end manufacturing in the future.
The service sector is important. It accounts for 43 percent of GDP, which is a low figure in
developed countries. They have a social market economy, but will need to do more. With
National Health Care, there is a three year reform currently underway that will hopefully cover
95 percent of the population.
Future trends are positive. Urbanization is at 50 percent with the target at 70 percent to 80
percent. That means that 200 to 300 million more people will move from rural to urban! There is
a need to create more jobs. There will be restructuring of the service sector and also the industrial
sector in the next few years. RMB 4 trillion has been allocated for energy conservation and
environmental policy. This is important. Urbanization is a gradual process. They need new
industrial output and special training. There is a household registration system, which probably
needs restructuring so families can come too.
How does China work to increase consumption? It must begin by increasing the level of
household income which will enlarge the middle class hopefully. They want to encourage people
to consume. However, the Chinese worry about health care, education, and retirement. In this
Chinese generation, many were born poor. With social and economic development, they must
learn from the past and other industrial nations.
Only 17 percent of the land in China is arable. There is too small an amount of land and too
many farmers. There are now thousands of U. S. investors in China, and most are successful. If
China thrives, the U.S. thrives! The trade imbalance reflects the reality of two different economic
models. Both the U.S. and China need to rebalance and discuss and find solutions. One needs
two healthy economies for healthy relations. There are elections this year in both countries, so
this is a sensitive time.
Meeting with Mr. Yu Yougen, General Director of Department of African and American
Programs of China Education Association for International Exchange
Report by Mr. Nigel J. Sutton
August 27, 2012
China is certainly going through a year of transition especially in light of the 18th People
Congress which will be occurring this fall. Main issues confronting China are demographics,
slowing economic development, and social welfare.
Mr. Yougan started off the meeting by sending
the regrets of the Minister of Education faculty
for not being able to attend the meeting. The
Ministry oversees all of the education in China.
It is quite large and encompasses over 70 schools
and universities. It two main programs are:
(1) China Scholar Program and (2) Confucius
Language Institute. It is similar to the U.S.
system in some ways with the main exception
that U.S. children start earlier and that it has a
nine year compulsory but free education. The
system employs a rigorous curriculum to enable
students to be ready for national exams when
they are approaching to enter college. There are
about 13.74 million teachers and 580,000
education institutions of various types and levels under the system. There are 260 million
students enrolled in the formal education programs and an additional 57 million students in nonformal programs. Enrollment rates have increased overall since 1998 which has grown from 9.8
percent to 20 percent in 2010. As a side, it was noted in the meeting that there are two ways in
becoming a teacher in China; via a normal university or a teacher certification program which
falls under a non-normal education. In 2011 there were 292,000 non-normal education students.
Main goals of China's national education system are: (1) Science and Technology and (2)
Improve Human Resources. The national objective is to provide all children a strong mid to long
term education. Also a main goal is to constantly grow and enhance international exchange and
cooperation. An indirect benefit is the improved exposure of U.S. universities to the Chinese
culture and language.
The Chinese government has been very active in pursuing a policy of expanding and opening up
to the outside world. It has also taking on a goal in trying to attract highly skilled talents
to China to teach and conduct research by establishing specific innovative programs. It has
actively promoted educational cooperation and exchanges with 189 countries and regions and
more than 40 major international organizations have been developed. In addition, 154
educational cooperation agreements have been signed and have been implemented
The relationship with U.S. universities and China education institutions are very good and the
US and China continuous consult at the State Council (Ministry of Education) level.
The Chinese understand it is a long way to catch up with the world on getting a higher quality
and well-rounded education system but it will be persistent in attaining this goal for all.
Meeting Notes: Cashmere Factory
Report by Mr. Patrick Terrien
Wednesday, August 29, 2012
Upon arrival, we were provided a brief overview of the industrial park. Highlights include:
1) This facility produces 40% of the world’s cashmere supply.
2) Forty-three companies are located here, most of which are cashmere producers.
3) The largest company is Zhongyin Cashmere, which employs 2,200 employees.
We then visited one of the production floors and saw a very modern, clean facility.
The Delegation dines with hosts in Ningxia
Visit to Jingling Village of Eco-relocation of Lingwu City
Report by Dr. Lori E. Murray
Wednesday, August 29, 2012
Wednesday afternoon, the World Affairs Councils of America leadership delegation visited the
Jingling Village of Eco-relocation of Lingwu City where we were hosted at the home of one of
the relocated families.
The Foreign Affairs Office (FAO) of Ningxia Hui Autonomous Region provided background on
the Eco-relocation program and explained that the central and southern part of Ningxia have nine
major poverty-stricken counties with more than one million poverty-stricken people living there.
Of these, 350,000 live in a severely difficult area.
In order to solve the poverty problem permanently, the FAO explained that the Party Committee
and the government of Ningxia had decided to move the farmers in that area and to recover and
protect the ecological environment there, as well. The plan is to move the poverty-stricken
people living in severe conditions to places near water, roads and towns in five years and to
make them rich in another five years, thus making Ningxia the international ecological migration
poverty alleviation model zone. This will also ensure that Ningxia steps into an affluent society
with other provinces in 2020.
The delegation at the Sand Blockade Farm with host Mr. Lee (left)
The budget for the ecological migration project of Ningxia in the 12th Five Year Plan is RMB
10.58 billion to move 346,000 people of 78,800 families in 1,655 natural villages and 984
administrative villages of 91 towns of nine counties out of the central and southern area. Overall,
274 resettlement areas are planned.
After one year of the ecological migration in the central and southern areas, the first 75
resettlement areas have been completed with an accumulated investment of RMB 2.861 billion.
Approximately 24,600 apartment/houses have been constructed, accommodating 50,500 people.
The preparation for the second 57 resettlement areas has been completed. Construction will start
gradually, according to the FAO.
In 2012, 70,000 people are scheduled to move:
• Houses and supporting facilities for 90,000 people are under construction
• 260,000 mu (1 mu = 667 m2) land is developed or transformed
• 19,000 farming and animal husbandry facilities are constructed
• 107,000 mu land is for green plants
• 19,000 farming and animal husbandry facilities are constructed
• 53,200 migrates are trained
• 22,000 resettled labor have gotten new jobs, and
• Ecological restoration has been done for 620,000 mu land after people were moved out.
The delegation visited Jingling Village which is located in Haojiaqiao Town of Lingwu City. It is
the eco-relocation area for villagers outside the Jingyuan CountyThe plan is to relocate 6,331
people, or 1,407 families. To date, 4,005 people from 952 families have been relocated and
settled in the area that is 20 km from Lingwu City. Transportation is provided to Lingwu. The
average house proportion for each villager is three rooms, 54 square meters with a yard of 400
square meters. The delegation was briefed that each unit is equipped with a solar water heater, a
solar cooker, and a satellite dish. In this new village, there is a cultivation zone with 1600
standardized lairs and pens, as well as long jujube gardens, cashmere knitting mills and a
reservoir with 200,000 cubic meter capacity.
The delegation drove through the village and viewed the schools and factories, stopped at the
service center which deals with about 30 village community issues such as new born registration,
first aid, building houses, job training, etc., and then visited a family in their home. The new
village was laid out like a subdivision with all homes single story and 5-6 foot walls separating
the small plot (400 sq. meters) property lines between homes. The small plots are used to grow
corn and watermelon. The family we visited graciously hosted us in one of the three rooms,
which was the children’s bedroom complete with a Disney princess back-pack belonging to one
of the children. The mother of the family, our primary host, explained that everything was so
much better since they had moved. We met her son who was attending high school and studying
English and her husband who said that since they had moved, he was doing different types of
work in the community, as it was needed.
Meeting Notes: Shanghai High School, hosted by Tang Shengchang, Headmaster
Report by Mr. Patrick Terrien
Friday, August 31, 2012
Mr. Tang met us at our bus and gave us a brief tour of the
school’s art building. A clean, modern facility, the art
building had a gallery for paintings by both students and the
school’s professional art teachers. Each teacher had his/her
own studio from which to create art and to welcome students
for office hours. We walked through a well-groomed
courtyard to the Media Lab where two students interviewed
Todd. The rest of our delegation watched from the
production room, which was staffed by the students. It did
not take long to know that this school was special.
Shanghai High School was founded in 1865 by the Mayor of
Shanghai at the time. In 1993, the International School was
founded. Currently, Shanghai High School enrolls 4,200
students: 1,200 local students and 3,000 international students.
The local student body represents the region’s highest
achieving
studentsentrance
is
extremely
competitive. The student’s family pays about $30/year
and the government subsidizes the remaining
$5,000. The average class size is 40 students. Local
students also live on campus Monday through Friday
and return to their homes for the weekend. A majority
of the international students are from other Asian
countries, mostly the sons and daughters of
expatriates. These students follow the International
Baccalaureate (IB) curriculum and offer Advanced
Placement (AP) courses with an average class size of 25 students. Local students and
international students have separate teachers, classes, and facilities: classrooms, labs, cafeterias,
etc. There is limited interaction between the two student groups, which mostly happens through
extracurricular activities.
Additional highlights:
•
Shanghai High School graduates the
country’s best students and boasts an
alumni list of China’s business,
government, and military elite.
•
Standards: The government provides
minimum standards for all schools. If
they are not met, then the government
visits to figure out why and what can be done.
•
Priorities: The government has asked Mr. Tang to figure out how to teach creativity and
innovation and then report back on his research. They often use Shanghai school as a
place to identify best practices and then replicate across Shanghai.
•
PISA: Shanghai has one of the world’s highest performing systems as measured by the
international test PISA. Mr. Tang attributes this in part to the government’s investment in
the lowest performing students. This focus ensures that all students are achieving at the
highest level.
Meeting with Wang Yimin Ph.D., Chairman of Supervisory Board; Hiroki Miyazato, Deputy
Chief Executive Officer; Chen Suqin, General Manager; and Nick Lu, Senior Vice President at
Haitong Securities Co., Ltd
Report by Mr. Michael Phillip
Friday, August 31, 2012
We had the most delightful meeting and exchange. Haitong Securities was founded in 1988 as
one of the earliest securities companies in mainland China. Its business covers complete financial
services including brokerage, investment banking, mergers and acquisitions, asset management,
funds, margin trading and short selling, futures and PE investment. In 2007, Haitong officially
went public on the Shanghai Stock Exchange. It currently ranks in second place in the sector in
terms of total assets and the company has over 200 offices.
China’s economy and equity markets: Haitong
felt the Chinese economy was still strong and
growth would continue, although at a slightly
slower rate. The slowing is more of an
adjustment to many moving parts and the
government has initiated several actions to
reinvigorate growth. While the equity market
has been trading at a three year low, Haitong
felt that valuations were very attractive,
signaling the bottom is near.
The Wealth Management Business: A spirited
discussion occurred on the Wealth Management
Business, citing the differences and similarities
of the process in each country. It appears that
Mr. Michael Phillip at Haitong Securities meeting
the Chinese market is still transaction
(commission) based vs. the U.S. which is
moved to more of a fee based environment. In addition, Haitong has made the necessary
applications seeking approval to deal in non-Chinese securities.
Politics: Haitong was reluctant to comment on the U.S. presidential election, but acknowledged
that the purchase of U.S. Treasuries by the Chinese government could involve more than just a
pure investment decision.
Reflections on China
Report by Mr. Patrick Terrien
August 26-September 1, 2012
Seven days in 3 cities of the world’s most populous country does not make one an authority on
China. China’s diversity and complexity emerges from a civilization whose history is 20 times as
old as the United States and whose citizens represent more than 50 ethnic and cultural groups. So
to provide conclusions or assessments is not only difficult and premature, it is also arrogant and
risky. I can merely paint a picture of China; a snapshot in time, through my lens, that combines
my education about China with my experience of China.
Good Fortune
One of the most fun parts of eating Chinese food in
the US is the fortune cookie (by the way, not even
once in my 7 days in China did I eat, let alone see,
a fortune cookie). While slightly tastier than
cardboard, the cookie’s greatness is not its taste.
The cookie holds inside a gift; the gift of a surprise.
While I may love a surprise, the Chinese
government does not like surprises. Order and
stability in society is treasured, and gained only by
equity in fortune by all people. Wealth is pursued
in China with vigor and the government not only
encourages it, it demands it. Fortune must be
gained by all- lack of balance, any disparity, is not
good. The government’s purpose is to ensure, and
enforce, that balance.
No Surprises
The Chinese government does not like surprises. Surprises are uncontrolled, volatile and do
nothing to further the goal of fortune for all. To eliminate surprises, the Chinese govern with
deliberate planning, total alignment, and control. Every government official and business leader
with whom we met referenced “China’s 5-Year Plan.” This comprehensive plan guides all
aspects of the economy from which sectors get investment, and how much, to what will be taught
in schools. What this provides the market and the people is certainty; because in China the
government has both the power to implement plans, and the money.
Alignment around the 5-Year Plan is complete: from the rural resettlement project manager, to
the Ministry of Education. No one spoke “off message.” When asked whether he thought lending
money to the US was a good investment for China when plenty of need for that investment exists
at home, a local Chinese official replied: “We trust our government and its decisions.”
Alignment and buy-in is absolute and at every level. Of course, as one official told us from the
economic commission, “The Plan has specific targets for local officials and businesses, and if
those targets are not reached, the central government will intervene.”
So what was the consistent message?
1) China is facing an economic slowdown. This isn’t a recession, but a slowdown of
growth. So instead of growing at a double-digit rate, China chugs along still at a steady
clip. Those we met with attribute this slowdown to both external factors and internal
factors. Externally, the European crisis and the general global economic crisis have
shrunk the world’s ability and appetite for Chinese goods. China’s exports, the primary
engine for their economy, are well below previous years. Internally, China’s government
is requiring adherence to its 5 Year Plan, which in some cases slows growth. One official
highlighted the target of 20 percent reduction in energy usage. Though short on specifics,
his point was that these kinds of demands naturally cool growth but are important.
2) Clean energy is a priority. For the health of its people and for the sustainability of its
economy, China is investing in clean technology and energy innovation. On our flight to
Ningxia, two hours west of Beijing and in one of the least populated provinces, I saw at
least three dozen enormous wind turbines dotting the landscape. And it was just last year
that China surpassed Spain as the world’s largest producer of solar panels. China also has
a problem with pollution. Beijing has terrible smog, a haze that you feel when you
breathe deeply.
3) The rural areas are not succeeding. Our itinerary included a trip to the rural area
because our hosts wanted to show us the difference between the rural poverty and the
urban wealth. This was not acceptable for China; all should thrive according to our hosts.
During a meeting with the Ministry of Education, I complimented them on Shanghai’s
educational successes. I was surprised that they quickly re-directed the conversation to
the education gap.
4) Our goal is to become a service economy. One economic official said that currently 43
percent of China’s economy is services and that all great Developed Countries have about
80 percent. They see a huge middle class, larger than the entire United States population,
and they want that middle class to buy Chinese goods and services. The Chinese know
how to make things, but do not yet have the skills in the service industry.
5) Qualified talent is a critical need. The talent gap is in two areas: technical skills and
critical thinking skills. The people we met with talked a lot about wanting to collaborate
on education, and also community colleges and vocation training. They were not
producing enough skilled talent to meet the demand. On the plane I talked with a US
executive who runs several factories in China. He said his biggest challenge is turnoverthere is such a demand for skilled workers that competition is fierce among employers:
offering a few dollars more an hour pulls talent away. More and more, the Chinese
government is trying to figure out how to teach critical thinking skills, creativity,
innovation, entrepreneurship to its students because they recognize that this fuels growth.
6) Resettlement is good for China. The government is leading enormous resettlement
programs, mainly moving people from rural areas to urban centers. The stated goal is to
raise their standard of living, but resettling also provides a ready talent pool. This pool,
combined with good education can create employable workers that can feed the voracious
appetite of the Chinese economy. In Ningxia, we visited one relocation village where
about 6,500 families from the nearby mountainous region were resettled. The government
provided the home, a garden, helped them find work, built a school for their children, etc.
As one woman said, “everything is better here than before.” This urbanization also
includes moving people from the largest urban centers to tier two cities to relieve the
pollution and decrease the demand on resources.
Balancing Act
China is a very orderly place. I was surprised that
two of the world’s most populous cities not only
functioned, but functioned quite smoothly.
Shanghai’s roads and sidewalks are cleaner, well
maintained and less crowded than New York
City’s, yet twice as populous. When I got off the
plane in Beijing, I expected chaos. Visions of
long lines at Customs and bottlenecked traffic
filled my head. I briskly passed through Customs,
swiftly transported to baggage claim, and quickly
found by our driver. Almost every experience of
movement during my time in China was efficient,
swift, and on time.
This commitment to order shows itself in
meetings. Each business meeting had several
things in common. First, everything was set up
well in advance: we all had assigned seats with
name tents, a glass for tea, a water bottle, a pencil,
paper. Second, our hosts were always already in
the meeting room waiting for us. Third, we knew
the highest-ranking official based on who sat in the middle of the entourage. Fourth, the host
always opened up with introductory comments: first with compliments to us, then with structured
remarks. And finally, the meeting always ended with the presentation of a gift and a group photo.
This level of preparation was humbling, gracious and unparalleled in the US system.
Education Rules
Monday through Friday, she arrives at 7:20am. Monday through Friday, she is picked up at
9:20pm. This 14-hour day is not that of a Shanghai executive, nor a construction laboring
struggling to keep up with the unquenchable growth. This routine is the life of Lan, a 16 year-old
Beijing girl in her junior year of high school. Lan is the daughter of a successful family in
Beijing who is not unlike her peers. Lan has suspended her participation in sports or other extra
curricular activity to devote her year to intense study and preparation. She eats three meals a day
at school, not out of economic need but out of convenience. By junior year of high school, most
students have dropped any extra-curriculars, sports, or other distractions, to focus on studying.
Junior year is the time when students take the ever-important national exams that determine their
future in college. Will they get into the country’s top three universities? Or will they be relegated
to learn with the masses at one of the 2,000+ Chinese colleges? The pressure for children to
succeed in education seems well beyond what I know in the United States.
Superstition
The Chinese are not overtly religious people- most spiritual activity is built into the family life
and homes, not community-oriented like it is in the US. The Chinese are, however, quite
superstitious, which seems counterintuitive in a country so governed by order, logic, and utility.
For example, the number 8 is a very lucky number because when spoken it sounds like the word
for prosperity. So when the Chinese won the bid for the 2008 Olympics, they set the opening
ceremonies to start at 8pm on the 8th day of the 8th month in the year 2008. And I was told often
that while the 2012 Olympics brought fewer medals to China than 2008, their future looks bright
thanks to winning a total of 88 medals.
Weibo, Facebook, Twitter
Information is managed in China. I was unable to update my Facebook account, or tweet about
my feast of Peking duck. A surprise to me, however, is that the Chinese can indeed have a
Facebook page. A citizen can pay for a “proxy” which allows them access. That’s how the
Columbus Council on World Affairs now has China followers. While Facebook and Twitter are
blocked in China (yes, I tried several times), other sites find themselves “unresponsive.”
Googling “US Constitution” and “Freedom” seemed to trigger “Access to server not available at
this time. Try later.” What the Chinese government has encouraged, however, is cloning US
social media like Twitter and Facebook; preferring a Beijing-based server to one in Menlo Park.
The Chinese hybrid of Twitter and Facebook is called Weibo, and is growing fast. Already China
is home to more microbloggers than any other country. Weibo boasts a user list the size of the
United States’ entire population.
China: Friends Around the World
One final observation. During our short trip to China, Egyptian President Mohamed Morsi,
German Chancellor Angela Merkel, and US Secretary of State Hilary Clinton visited Beijing.
And then China’s Hu Jintao was off to Tehran, Iran for the summit of the Non-Aligned
Movement- a group of 118 countries that formed more than 50 years ago. Virtually no Western
countries, including the US, participate- though China and Brazil have observer status and
Russia was invited this year as a guest. What this tells me is that China engages, everywhere and
anywhere. And China engages with vigor- one headline while I was there quoted “China will
double the number of Sister Cities in Africa within 5 years.”
China is a diverse country, complex in its political and economic ambitions, with a long history
and deep tradition; yet one open to change, eager to learn, and ready to engage.