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Living, Importing/Exporting, Manufacturing & Cultural Observations from China
May 11, 2012 | 801 views | 0 0 comments | 1 1 recommendations | email to a friend | print | permalink

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Development Breeds Opportunity
by Shakiri
May 04, 2012 | 211 views | 0 0 comments | 1 1 recommendations | email to a friend | print | permalink
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My background is in finance, so when I graduated from university in 2005 the normal expectation was to move to New York City and get a job on Wall Street.  So I did the equivalent in Atlanta, Georgia and became a financial planner.  Needless to say, within the next year and a half I would see first hand the lack of upside potential for Americans interested in advancing their careers and salaries as was possible in the late 90’s.  As a result, in November of 2006, I took a leap of faith and moved to the “Middle Kingdom” otherwise known as China.   
 
I must admit, upon arrival I was very skeptical about all the “China” buzz.  To me, it was yet another developing country where the people worked extremely hard but were basically the factory for the rest of the world.  I went directly into exporting basic goods & commodities to Spain.  Over the next year, I began to realize something I would describe as eerie at best.  The overseas orders began to get smaller in quantity, total amount & consistency.  Conversely, on the Chinese side, I began to see factories that did not want the small orders so they would pay little to no attention at all to frantic foreigners asking for quotes that they believed were supposed to be given yesterday (at times extremely unrealistic).  But the foreigner on the other end of the phone seldom realized that this quote/order was well below a standard amount for the factory to make a reasonable profit.  This was strange to me because just a year earlier when I arrived in China, the factories were hungry for any order and would work hard to make sure the customer was happy.  Now, unless the order was at least their (arbitrary) minimum order quantity, they would ask for the order to be sent elsewhere (further inland to a less developed factory in China, or Cambodia, Laos or even Vietnam). 
 
So I endeavored to learn more.  What was happening to cause this global shift?  It seemed real in theory but heading towards the end of 2007 and into 2008 it resounded clearly in my mind that not only were the Chinese positioning themselves as the factory for the world, but they were learning from their experience and beginning to start their own brands and quenching some of their swiftly increasing internal demand.  I began seeing brands like Li Ning and Snow, that on a local level would compete with Nike and Budweiser.  Even though they were virtually unknown outside of China, there was enough existing demand within the economy to allow the brand to stabilize itself and in the process accelerate the wealth building process for the Chinese business community.  Now, you see these businesses/corporations popping up all over the place.  The idea of “If you build it, they will come…” is not necessarily so in China.  The idea is more “They are already here, so just build it….” Then I began to see Baidu (Chinese version of Google), Taobao (Chinese version of Ebay),  Youku (Chinese version of Youtube), and Sunning (Chinese electronic giant-rival of Best Buy). 

This made me ask myself, in a developing country with so many unanswered questions and “problems” how are so many people prospering? And why does the opposite seem to be true in my own home country?  I had no idea what the answer to this question was, so I endeavored to research more and look closer at this global economic revolution.  Over the next few years, I talked to many people, studied business & economics through online and print media in China and I learned a lot.  But the main thing I learned was that with every solution, someone gets a little closer to economic success.  Whether it was water purification or creating Alibaba (a comprehensive online database of Chinese suppliers), by creating an answer to a “problem” the Chinese were simultaneously finding ways to bring themselves into the 21 st  century while enriching themselves by satisfying their own demand.  Organic growth. 
 
So I looked back at my home country, and other developed countries around the world, and I am still asking myself, where is the organic growth going to come from?
 
I am cautiously optimistic about the future of our developed countries.  Where are we headed? What is the power structure of the world going to look like in 20 years? 10 years? Was Thomas Friedman correct in his theory that the world truly is becoming flat?
 
I don’t know the answers, but my hunch is that if you see a problem, instead of complaining about it, create a solution, it may be your way to prosperity… 
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They're Just People!
by Shakiri
May 04, 2012 | 223 views | 0 0 comments | 0 0 recommendations | email to a friend | print | permalink
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So interesting to hear the stereotypes about Chinese people.  But then look through your closet? Your shoe rack? Your kid’s toy room?  How many of the products are Made In China?  I’d suggest probably 60-80% of them.  But HOW are they made is a much bigger question.
 
From those with little background in manufacturing, I’ve heard the most interesting stereotypes about the factories that supply the world with products.  Are they all sweatshops?  Do the people work 24 hours a day in sub-par conditions (i.e. No air condition, food or breaks)?? 
 
Then from those with a little more experience with China I’ve also heard some weird questions.  Do the managers always invite you out for food? Smoking cigarettes? Drinking Chinese White Wine? 
 
I’m still learning everyday, but I must say in my experience, THEY ARE JUST PEOPLE!  Just like you and I, the people in these factories want a better life for their families, want a stable income and comfortable place to work, etc. 
 
Today, I had the pleasure of visiting a knitwear factory in a small city (Baitu) just outside of Zhenjiang still in Jiangsu province.  Driving from the train station to the factory was a little scary because we were in this truck/van called a (面包车-Mian Bao Che) which literally means a loaf of bread vehicle.  Strange because it actually looks like a loaf of bread from the outside.  On the inside, it’s like a van with two individual seats in front & two rows of (bench-style) seats in the back. 
 
The scary part was even though we were “supposed” to be on one side of the street, I guess I was the only person who thought so.  We were all over the place.  No matter if an 18-wheeler was coming toward us or not!  Didn’t matter.  It was like a free-for-all.
 
Then we arrived at the factory, and I must say I was surprised at the family-like structure that existed.  We were greeted by a group of women working diligently on our mass production.  They welcomed us to come and take a look and they were even more surprised when I open my mouth and they could understand me!  The look of amazement came over the first woman’s face and she started to talk to her co-workers about this foreigner who could understand her.  Too funny!  Then they let us open boxes and check products with no problem.  

Next we went into the boss’ office and like clockwork he offered us a cup of hot tea, with the tea-leaves floating inside.  It was really hot!  And not to mention, it’s a high of 35 degrees Celsius (95 degrees Fahrenheit) here right now, so I couldn’t believe they were drinking hot tea.  But when in Rome….  So we finished our tea and the boss (Mr. Shi) asked us if we would like to go to the factory nearby that specializes in embroidery and the cross stitching of logos.  My colleague and I said yes.  So off we went in yet another “loaf of bread truck” speeding through this small town’s back alleys until we arrived at the other factory (less than 10 minutes away). 

Couldn’t believe what I was to see next.
 
I thought it was going to be a small operation, unorganized with workers everywhere.  But it wasn’t like that at all.  There were computers with a USB slot connected to what looked like electronic sewing machines.  The machine could read the artwork from the USB, then transfer than idea onto the product being branded.  It was awesome!  To actually see famous brands in the process of being made was something I’d never seen before and never thought about. 
 
For the sake of privacy, I won’t go into the names of the brands being made but think about this.  Every time you go to a football game, all those t-shirts, knit caps, socks, etc with the team logo have to be made somewhere.  At first it was someone’s idea, accompanied with the know-how and capital to make the product.  Then combined with a little time and man/woman-power, an idea becomes reality…..right in front of your face. 
 
Another misconception was that all this was done in one place.  Once I saw it I realized, but didn’t previously think about it.  Normally one place can’t specialize in taking the raw material all the way to the finished product.  There is a network of factories working together.  One to make and gather the raw material (cloth, nylon, etc) then another one to actually make the product, then yet another to stitch the logo and branding the client requires.  A lot of time, energy and planning go into making these products.  So the next time someone looks down on the manufacturers, they should try to come and do it themselves and see what a challenge it is.
 
Around noon we went to lunch and had a very traditional meal.  Mr. Shi was not just a ~50 year old man who ran the factory, but he was also extremely well traveled and knowledgeable.  Was great to talk to a man like that.  You can learn so much from his life experiences.  He is what we would call “a self made man”.  He told us about how he grew up in the countryside and how different life in China has become since Premier Deng Xiao Ping began economic reforms in 1986. 
 
Yeah, exactly!!  We talk about the civil war in the late 1800’s then the civil rights movement in the 1960’s that drastically changed the path of our country (USA) and we are at least one generation removed from those events but 1986 really wasn’t that long ago.  So to see Mr. Shi here talking to a foreigner and making products for export and accepting payment in USD in 2011 is an amazing leap forward from where the country was just 30 years ago.  So much growth…


There was also the boss of the embroidery factory that dispelled yet another stereotype.  While Mr. Shi laughed and told stories, I figured the logical next step was to begin drinking beer/wine and smoking cigarettes.  Well, (Mr. Zhang) didn’t even blink an eye before he opened up and told me he neither smoked nor drank!  Didn’t know that was possible in a Chinese business environment, but it definitely is.  And it was great to know that these acts are not necessary.  He was very comfortable laughing and talking with us without partaking...  Admirable guy.
 
So my result from today is bigger than a quality inspection of goods.  And as I speed back home on the fast train at 260 kph (~160 mph), I can’t help but to dismiss many of the stereotypes of Chinese manufacturing & technology.  At the end of the day, they are just people.  Trying to do the same thing people in my home country are trying to do.  Live and get better. 
 
It was an eye-opening experience of the best kind.  Very normal.  I bet I’m the only one writing a blog about this experience because other than me, everyone else just had a normal day.  But for this small town boy from Jackson, Mississippi, this experience was anything but normal.  And I appreciate the knowledge, new experience and friends that would have otherwise never come into my world. 
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The Chinese Language - To Study or To Work?
by Shakiri
May 04, 2012 | 181 views | 0 0 comments | 1 1 recommendations | email to a friend | print | permalink
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Since arriving in China in November 2006, I have met many many foreigners coming for a multitude of different reasons.  Some come for study abroad trips, some for business & some just to see the anomaly we call China.  The common denominator is that we all came with huge ambition and not a lot of knowledge of what China actually is like (In my opinion, print/online media give such a limited view).   So no matter how you look at it, there is a lot to learn.
 
Starting with the students.  Nanjing (the first city I lived in) is especially known for the large community of foreign students that come from around the globe to study Chinese language, Chinese medicine, engineering, etc.  It is also a good way for students to leverage the opportunity to learn English.  I’ve seen students from under-developed countries or slowly developing countries get combination scholarships from the Chinese government and their home country government.  In the first year most students (no matter their eventual subject of study) have to study at least one year of Chinese language.  The default language of the Chinese textbooks for translation is Chinese to English.  So if your native language is Portuguese, French, etc. and you want to learn Chinese, first you have to translate from Chinese to English, then to your native language.  So while learning Chinese, many are also learning English. Which is usually much cheaper than going to America, Canada or the UK to study.   The serious students are the ones who have been in China for more than a year and plan to stay for at least two-three years.   When I would meet a student on a study abroad trip for a semester, my first question would be, “When do you plan to come back to China?”  Since it is literally impossible to gain any level of proficiency in the Chinese language within one semester.
 
The next level of people are those coming to China for business.  These are the people I’d like to focus on today.  Most expats come with the ambition, determination and motivation to be successful in China.  But the one thing they usually don’t have is the language ability to go along with that motivation.  We (expats) usually also don’t understand the culture but that is for another blog…. That said, the expat living in China has a few choices.  She/he can get a translator or use a colleague in the office for translating during meetings, emails, etc.  Another option is to live in one of the larger, more international cities (Shanghai, Hong Kong, Taipei, Beijing).  In these larger cities, there are usually enough foreigners to use English daily and do business in English.  There is also a multitude of Chinese with a high level of proficiency in English.  This is mainly because in the larger cities, access to better education, jobs & opportunities is obviously more abundant than the smaller cities, the countryside, etc. The third and final option is to learn Chinese for oneself.
 
Let’s be clear.  There is no easy option.  Each of these options will have high points and low points, but the most difficult by far is learning Chinese.  Most of the expats come here at a time in life when they have already started their career & family so they are really coming here to expand their business.  To start learning a new language at age 30 (or later) is difficult.  Too difficult for some.  The time commitment involved, as I said before, starts at about two years and up from there.  If you talk to those who truly love the language, they will tell you learning Chinese is a life-long test of humility.  There is no finish line.   You have to love it or giving up will seem the easiest option. 
 
After being here for a while, I see the different level of foreigners.  There are some who learn just enough to talk to taxis, buy food in the street, yell at people, etc.  Then there is the next level, where maybe they studied Pinyin, but never got to the characters.  Pinyin is a system established to help beginners learn Chinese.  Because you have to understand, after the initial level of this beautiful language, there are no roman letters.  Therefore in intermediate & above Chinese language study one must learn to read a character & memorize its tone and meaning.  But I would argue, that if you only learn Pinyin, you will hit the ceiling of language learning.  There are a finite number of sounds in the Chinese language, so by only learning Pinyin, you will inevitably get to the point where it just sounds like you are repeating the same sound over and over again.
 
Then there is the next level of language lovers.  These are the people who I would submit, love the language & culture, love living in China and are probably a little crazy for staying so long!  For this group, you will normally find some sort of dictionary on their person at all times.  They are always looking for the next Chinese conversation and/or an opportunity to learn more characters.  When I first started studying with my private tutor, it was a painstaking process.  She drilled me on the tones for the first two months! I was so tired; I didn’t know what to do.  But after persevering on, I realize the method to her madness.  I honestly couldn’t hear the difference in the tones as a novice, but the more I studied and practiced, the more I began to hear the distinction.  This was creating a solid foundation. 
 
So how does it all play out?  Well, as our expat careers continue in China, they are very much molded by how much Chinese we can speak.  The Chinese definitely respect you more when you walk in and can communicate independently.  They recognize how difficult this language is to master, so if you can competently communicate, you are put in a different category (mentally) of foreigners than those who merely come here to do business.  In my opinion, the Chinese business community is a bit leery of the expat coming here to capitalize on their economy.  So by learning the language well, it shows a true commitment to China and as a result, open doors that may otherwise not have been visible.  
 
The question then becomes whether or not to make the commitment and learn Chinese.   And the answer is, it all depends on you!  The language takes a long time, which is a luxury many of us do not have.  There is a financial commitment (one semester of language study at Nanjing Normal University cost me about USD 1,200 including tuition, books & materials).  There is also something I would refer to as language learning confidence.  I have seen many students come here from Africa, Europe, etc. who are already studying language number four, five or six.  For these individuals, learning a language is a part of life.  Then I see the other type of expat who has never learned a foreign language and Chinese is their first foreign language.  For this crowd, it will definitely be an uphill battle.
 
So in conclusion, I would definitely recommend learning the language first and attempting to do business second.  If one has the time, money and determination this will make a huge difference in the long run.  But if there is no time, money, motivation, this is not to say you will not be successful in China, but you will be caught in a situation where you are constantly depending of the kindness of others (translators, co-workers, friends, etc.) to translate for you.  And in business, with opportunities coming in real-time, a strong network will be mandatory to stay abreast of the fast paced business conducted here in China.
 
Either way, good luck for those willing to persevere!
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African-American Living In China
by Shakiri
Apr 27, 2012 | 541 views | 1 1 comments | 3 3 recommendations | email to a friend | print | permalink
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The other day at the gym a girl asked me “why is your skin black?”  After almost falling off the treadmill and killing myself, I looked at her to determined whether or not she was serious. She was… So I straightened up and said the first thing that came to mind.  “Because my mother and father are both black”.  An ambassador I tell myself.  An ambassador. 
 
I’m learning that the word ignorant does not have to have a negative connotation.  It simply means someone doesn’t know something.  That’s fine.  We all have room to learn & grow.  So I realize that the only contact some here have had with African-Americans is on TV or the internet.  President Obama & the guys from the 2008 Olympic Basketball team (Kobe, Lebron, D. Wade & NBA players in general) have done a lot to increase exposure.  
 
Still I get a LOT of interesting questions about black people.  Now granted, every foreigner who comes to China gets weird questions.  But most Chinese I come in contact with associate being black with Africa. And associate being American with being wealthy.  So to see an African-American is kind of like seeing someone who is 8 feet tall in China.   It’s usually pretty tough for me to prove I’ve never been to Africa.  Apparently, I can rap and dance well…. And I’m an athlete, etc.
 
This means a lot of different things. It means that a lot of times you just have to take a question with a grain of salt.  Because it is just that.  A question.  Not meant to upset or offend you.  They just honestly want to know.  That’s what I would call it.  More curiosity than anything.  Seldom have I been in a situation where I felt any type of animosity or ill will.  Although it gets annoying to hear kids see you and shout “黑人-Hei Ren-Black Person”, it feels good when their parent tells them to say “叔叔你好-ShuShu Ni Hao-Hello Uncle”.   You realize that this experience would not have happened unless you were there at that moment.  Pay it forward right? So now that kid, instead of thinking of foreigners as scary and/or dangerous, has the opportunity to think of us in a positive light. 
 
It’s just experience.  There are people in the USA that I probably also have little in common with.  But with experience we can all learn from each other. 
 
Just my opinion, but I think more of us should travel beyond our present.  You can always go back home….
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Olander
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November 11, 2012
Excellent post sir. I'm thinking of moving to China perhaps Shanghai in a few months and reading your post here has helped me in my decision. I've traveled around the world for years and to China many times in the past. Great to know there's another brother there representing the diversity of our people beyond the limited media exposure given.

Olanderonline@gmail.com

Chinese Women - Submissive?
by Shakiri
Apr 27, 2012 | 278 views | 0 0 comments | 1 1 recommendations | email to a friend | print | permalink
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This is completely my opinion, so take it with a grain of salt.
 
There is a stereotype that Chinese women are submissive & passive.  A kind of thought that they are quiet and you can sort of “have your way” as a man when dealing with them.
 
In my experience, this is completely false.   I mean, I’m sure every person is different but as a stereotype, I would say it is more untrue than true.


A couple examples:


My colleagues are all (except one) women.  And all Chinese. They are some of the strongest women I have come across.  Now, I’m not talking about physical strength (i.e. muscles, height, weight, etc.) but even without these physical attributes, they are definitely a group of no-nonsense characters.  The women I work with daily are very aggressive when negotiating prices and have no fear when dealing with the men who manage factories, shipments and/or sales.  They have a clear mental picture of the goal and stop at nothing to get to that point. 
 
Now it is arguable as to whether this goal is actually attainable and if impromptu change is necessary, whether or not they will be willing to compromise.  I guess this depends greatly on the person & the situation. 
 
But I have been pleasantly surprised by their innate ability to fight for what/who they think is right regardless of the “situation”. 
 
Just today I walked into a factory that specializes in making PVC items for export.  Before we arrived, we were told that the factory had another client who would take the train with us to our next destination city (宁波-Ningbo).  My mental picture was of an older person and my first thought was, “well, if he or she cannot buy a ticket with the same time as the one we already bought, they will be out of luck.  We will have to go anyway.” 
 
So we arrived at the factory and to my surprise, the other client was less than 30 and clearly in charge.  She was on a mission to take pictures of each and every carton of goods that her client ordered. She also had samples neatly placed across the table taking pictures with what looked like a Samsung version of an IPhone…  Was very interesting to see her in action.
 
Then when the factory manager came over and tried to start casual conversation (flirting), she quickly shut him down and focused again on questions involving business.  She went on to ask him for samples of other items that he made in the past and he obliged.  Soon, he was following her into the next room to let her pick out the samples she wanted.  In about 3 seconds, she completely changed the tide of the conversation and took control.  Within 10 minutes, in my mind she went from a female to a (genderless) businessperson.  It was a good experience for me.
 
Then on the way to the train station, when our train was initially set for 3:30pm, she found us all a better train leaving at 3:00.  So instead of her needing us and worrying whether or not she would get a ticket on our same train, she was the one who negotiated a better deal for the group.  And saved us money in the meantime.  I was very impressed!
 
I feel the need to express the fact that this tenacity doesn’t just take place in business.  The idea that Chinese women sit quietly while the men talk loudly is not so true in my experience.  I remember being in a sporting goods store when I first arrived in China and this man and woman were checking out together in front of us.  He reached for his wallet and found that he did not have enough money to pay the bill.  So he asked her to help.  She looked at him in a very strange way. My friend and I behind them didn’t really pay attention because we thought it was a normal quarrel between a married couple.  In other words, none of our business.  In addition, I didn’t speak a word of Chinese at the time, so I didn’t understand what they said.  But I knew she wasn’t happy.  They paid the bill, pushed the cart forward and with a great burst of energy, she slapped him! Right in the face.  We couldn’t believe it.  We were in public and I had no idea a woman would be so forward in a “male dominated” society…. But I soon learned that shewas this forward and didn’t care who saw it.  My friend and I were astonished. And even more astonished when the guy just walked away.  Yeah, he gave her a look, but he dared not make a move.  At least not there.  Now, I have no idea what happened when they got home, but that quickly dismissed the whole submissive in public idea in my mind.
 
So is this a male dominated society? I don’t know.  I know that the formula is a little different here.  Since there is the one (1) child per family policy & right now the ratio is about 1.2 men to every woman, the women have a substantial amount of power to select who and what they want.
 
I imagine a woman sitting on top of a mountain (behind the scenes) somewhere pulling the strings for everything major that happens or doesn’t happen in this country…. But wait, is that not true for every country??
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Jackson vs Suzhou
by Shakiri
Apr 27, 2012 | 202 views | 0 0 comments | 2 2 recommendations | email to a friend | print | permalink
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Usually I’m completely against comparing two cities cause it’s all about your experience on that day, at that time, with the people you are with.  You can go the next day and change the equation and it could all possibly be different, right? 


But I recently had a chance to go to the wedding of a very close friend in Jackson, Mississippi.  Much appreciated as well, because it was excellently done with class & respect.  Not until now do I see strong similarities between Suzhou & Jackson. 
 
In Jackson, there is a level of pride taken about the person you are and where you are from.  We have very close relationships because the city is ~250,000 people and generations of families have lived in Mississippi for years.  So just by default, everyone knows everyone. 
 
In China, because of such a long history of warring states, places that are close geographically are also relatively similar in culture & tradition.  The closer they are, the more similar the local dialect, the typical food, etc.  So also by default, the people in Suzhou develop very close relationships & everyone knows everyone within their “area”.
 
Small town feeling.  It’s the same in both.  The feeling that someone will just invite you home and cook the best meal possible.  Both cities have such a connection with the place that there are family stories, events and memories that are worth more than money.  More than just “I live in that city” but more like “this is my home”.   They both feel like that….
 
But so different at the same time.  There is no way to compare ~250,000 to ~7 million.  For a third tier city in China, Suzhou has a lot of people & subsequently needs a lot of services.  Evidence of development is everywhere.  Suzhou is building a subway system as we speak.   Otherwise, people normally walk, take the bus or ride a motorbike or taxi.  
 
There is a special economic zone called the Suzhou Industrial Park (SIP).  The SIP accounts for about 30% of the total city.  Modeled after Singapore’s architecture, it has a LOT of factories with companies from all over because the whole purpose of the SIP is to bring foreign investment, collaborations & joint ventures to the zone.  Suzhou has a very mature feel.
 
Jackson has more of a familiar feel.  It’s like when I got in, went directly to the barbershop and it was as if I never left.  Perfect.  My guy was in the same spot, with the same environment, same jokes as always.  I learned everything that was going on in the city in about a half hour. 
 
I was talking to a good friend from, whew, middle school…. And he and his beautiful wife (also middle school or before classmate) were an inspiration to me.  He told me of how he works in IT & none of his current job functions require travel, but he is interested in traveling to Italy.  Then I learned his wife spent three and a half weeks in Hong Kong on business and she thought the city was amazing!  It’s so great to see them because their relationship is such a sure thing.  I have a lot of faith in them.  They can accomplish anything because they believe in each other and because of that intimacy inherent in the people in both Jackson & Suzhou.
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Competition Is Good
by Shakiri
Apr 27, 2012 | 143 views | 0 0 comments | 1 1 recommendations | email to a friend | print | permalink
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Competition is good.  Interesting because for the last few days I have been home in the USA and the general sentiment has been a bit shocking.  I’m sure it’s a combination of things but probably most importantly due to the fact that next year is an election year, the unemployment rate is hovering around 9% and the gradual erosion of real income/wages has persisted for longer than most of us are willing to admit.

 
The focus is on jobs.  Growing the economy by putting people back to work.  And the idea I’m seeing expressed is the push for manufacturing to return to the USA.  The best supporting argument I have heard so far is that every manufacturing job creates an average of three (3) jobs within the economy, while a service job (on average) creates only 1.5 other jobs. 


So obviously the first step is to start setting up factories in the United States, manufacturing products and subsequently deciding whether to export or use the supply to quench domestic demand.  This means that companies who mainly design products & manage brands while leaving the manufacturing to China may look to cut back some overseas manufacturing and bring a substantial amount back to the USA for the sake of growing the economy.  In addition, I’m sure the good press from buying locally wouldn’t hurt the company’s brand.
 
But will they start buying everything from the states?  Will this lead to direct competition between Chinese & American manufacturers?  Who will eventually benefit from this?
 
Buy everything from the States? Just as it took time for the manufacturing sector of the American economy to slow down, it will take time to re-gain momentum.  Manufacturers will have to find competitive ways to buy raw materials, put in place the processes/machinery to produce the desired product(s), manage logistics, etc.  It can happen with time, but just as with anything, proficiency will come with trial & error.  Thus, I think companies will move some of their manufacturing to domestic facilities & leave some in China.
 
Will this lead to direct competition?  I don’t really think so.  There is a LOT to go around on this level.  By engaging the international marketplace, I think the idea is more to find a niche area where you have specialization of trade.  This simply means that you have specialized in an area to the point where you can call yourself an expert.
 
In our company, we manufacture & export promotional goods.  These could be for anything from a new movie to a new product launch.  The items are usually relatively inexpensive & usually metal, plastic or knit wear.  For these “trinkets” I just don’t think a country as developed as the USA will be able to compete with a developing country like China.  There are still many, many places in China where the average salary is less than USD 200 per month.  True, the average salary is increasing in China but increasing fairly slowly. 
 
But I do think the USA will be extremely competitive when dealing in more “high technology” items or products that involve design/creative development in conjunction with manufacturing.  I recently read that Mars (the company that makes Snickers, Mars bars, etc) is bringing a large factory back to the USA.  I have heard of others as well and I don’t think it will lead to direct competition.  Sure, there will be some overlap but the areas of specialty and strength are different for the two countries & there is enough room for the two to co-exist.  There are certainly people/businesses around the world that need these American & Chinese made products. 
 
Who will benefit? Everyone! As I said in the beginning, competition is good.  With competition companies will be held to a strict standard on pricing because there will be many alternatives.  This is good for consumers.  Manufacturers will attain increased efficiency in the area of specialization & gain the core competencies that allow them to eventually own more of their value chain (i.e. produce raw materials, find better ways to train employees, etc).  Both economies will benefit because we are so interdependent.  This progress will help our Sino-American relationship in many ways. 
 
I’m looking forward to seeing the next few years as the manufacturing sector in the USA matures.  Their progress will naturally take the form of the natural resources in the area, the creativity of the individuals & the kinds of companies involved (i.e. cell phones, automobiles, solar technology, food/beverage, hospitality).  There will be companies that push the envelope with their ability to find ways to navigate through tough environments.   With this innovation, some will fail but those who succeed will define the American form of manufacturing.  More important than direct competition is getting into the game.  Get started and get some momentum going.  This will propel the economy into a direction where people can reasonably expect to get a job and control their own future.
 
By relying too heavily on service-based jobs, any country would lose the core competencies involved in manufacturing.  So move back!  Make manufacturing a priority.  Give tax incentives for manufacturing domestically.  Reward productivity and innovation.  And most of all develop students interested in supporting the manufacturing sector. 
 
With this formula, no country can lose in the long run.  Innovation and manufacturing together will lead in the direction of controlling more of your products and thus controlling more of your destiny…
 
This is true globalization… Good luck to all involved!
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Evolution Of The China Expat
by Shakiri
Apr 27, 2012 | 140 views | 0 0 comments | 1 1 recommendations | email to a friend | print | permalink
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There is a new expat on the loose and I think he/she will be recognized soon.  It’s interesting to see the diversity of China.  While some places are still very agricultural, some have developed and have a well-represented middle class.  Soccer moms and everything….
 
Although few in number, I’m seeing a growing group of foreigners who have been here for 8 years who are now taking hold professionally in China.  These expats have worked the tedious jobs, the hard jobs, the awkward jobs, etc but now they have attained the skills & abilities to manage others to get these jobs done (and may even have the language ability to communicate with staff directly). 
 
I spoke with a good friend just today that proves this theory.  He has been in China for 6 years and Asia for 8.  He has climbed the “corporate ladder” here and is now a Quality Director in an automotive company.  The company is growing by leaps & bounds and his skills, expertise & perspective I can only imagine are irreplaceable within the organization.  He’s worked hard to carve out his niche…
 
On the other hand, not long ago, I met some really nice guys who are living & working here in China.  They were all in their mid 40s. By all means successful in their careers, so either for entrepreneurship or to do a specific task in a big company, they were asked to up-root their lives and move to China.  Cool, because the whole reason is “the package” right.   Kids international school paid for, house with (阿姨 – cook, clean the house), and a nice, comfortable lifestyle. 
 
Their neighborhood looked like America.  There were garage doors and swimming pools.  They had central ac and all this overlooked a Chinese subdivision literally on the other side that probably rented for  ~USD250 a month that had none of these amenities.  The contrast in Suzhou and China in general is great. 
 
But how do these guys survive?  It has to be based on translators and their specific skill.  They are sent from the multi-national to bring the attitude, culture & most of all the standard of quality to the atmosphere.  But not necessarily expected to learn China. 
 
Hard to do.  How do you live and work within a culture that is so different if you don’t understand it?  The idea is good but it’s an everyday battle getting to know people in your own culture, imagine the values being different. 
 
I argue that these expats who have been on the ground for 8 years, spent time studying the culture and working hard have the potential to make more profit (in the long run) than the expat transitioned from the large company. 
 
There are many opportunities on the ground here that you can’t see from a high level (internet, news, etc).  You kinda have to be on the ground.  And people that have done that for a while understand the pulse of the country. 
 
How does it play out?  I think in the near future, we are going to see increasing numbers of high-level executives in China that are 8 year veterans of this crazy place.  Those who enjoy living here and are trying to understand the culture & planning to live here a long time, over the family up-rooting from the home country. 
 
The experienced guy will be able to get more done on the ground.
 
But that is not to say there will be no room for the foreign expat w/ family.  Especially if they have a specific skill like architecture or law.  There is a lot of growth potential for the companies with long time investments in China (KFC, McDonalds, Century 21, etc).  Therefore, there is potential for professionals to come and support these organizations.
 
Won’t be easy to find a job.  There aren’t clear channels like monster.com or other employment/resume listing websites (and I’m not sure I’d want to post if it was possible…) So as always the best way is to know someone. 
 
It’s ironic, cause it’s just a cycle.  Everyone comes as a fish out of water and with time the water becomes more comfortable.  With that comfort you meet people with opportunities.  Isn’t easy but isn’t hard either.  The country really is growing a lot.  And growing unevenly but that’s another blog…
 
Cheers to those guys on the ground fighting the good fight!
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Ego
by Shakiri
Apr 27, 2012 | 153 views | 0 0 comments | 1 1 recommendations | email to a friend | print | permalink
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Seems many start with the desire to be successful.  This desire then leads to ambition as our environment gives perspective to opportunities around us.  This ambition then leads us to try new things and from our failures we learn and from our successes we gain motivation.
 
I recently had a long conversation with an extremely good friend where she made me think.  She said this motivation has two effects.  The positive side is the confidence to try for even larger goals, while the negative side leads to ego. 
 
Ego seems to be prevalent in every culture.  In Latin American culture, it is called machismo, in China it equates to “face” and in my culture in the USA it could be called bravado, respect or pride. 
 
What is interesting to me is that it is not specific to men or women but instead with these wins and losses they both (Ego and Confidence) seem to grow simultaneously.  As confidence grows we have the power to attain more material things, gain higher status and even have more attraction from the opposite sex. But at the same time the ego side grows to make us more callused to the feelings of others and more jaded to the world around us.  So while confidence can be so positive, ego can be extremely dangerous.
 
I’ve seen ego destroy marriages, tear apart business relationships, make otherwise successful businesses unsuccessful and lead people to becoming an “island” of sorts.  Instead of caring more for others, it’s easy to get this feeling that we are in fact the center of the universe and these accomplishments are somewhat tied to our personal being.  Meaning, if we weren’t there, the successes would not have been possible.
 
So the question is how to balance these two seemingly opposite but connected forces?  It’s obviously tough to realize when we are going too far from one side to another because the confidence allows us to see a path and make decisions based on past experiences so we feel “confident” about our ability to make decisions and stand alone if necessary.  But that good ole’ ego then leads to not being a team player and doing things by the old adage of “my way or the highway”.
 
I don’t know the answer but I’d say the balance point is no matter how high we go in life or how many successes we have, to be surrounded by solid people whom we respect and listen to them.  Take their opinions and let it shape you.  Not just one person, but multiple people.  I realize this is a luxury that everyone isn’t able to have at their fingertips, but seek these people out.  They could be in your place of worship, above or below you in your office or in your family.  Doesn’t matter where you find these “board members for life” as I call them, but consult with them just as you would a board of directors for a business.  While making decisions use them as a sounding board.  Of course at the end of the day, we are all free to make our own decisions but it’s so important to have an impartial voice in your corner.  Someone who will listen objectively, ask specific questions about your goals and ambitions for the task at hand and knows you well enough to give advice specific to your situation. 
 
Then it is our job to listen.  To take this advice from multiple people and not let it inhibit us, but to take the good or possible from each person’s advice and let it propel us into positive action. 
 
It seems to be a constant battle between gaining confidence and gaining ego so it’s not expected that we will wake up tomorrow and solve the problem of allowing our ego to grow too large.  But we can work on it daily.  We can work on growing into better people while at the same time learning from those around us.  All the while keeping our eyes on that goal through which we were motivated in the first place.  Seems we all have a goal for where we are headed in life, but the question is how do we get there?
 
And more importantly, what does it matter if we reach the goal and find ourselves alone because we have alienated our friends, loved-ones and/or co-workers?
 
Thus, we strive for balance….to move forward and become better human beings.
 
Good luck!
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Art & Culture
by Shakiri
Apr 26, 2012 | 194 views | 0 0 comments | 1 1 recommendations | email to a friend | print | permalink
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What’s the difference between art and culture?  Interesting to me because Suzhou has a LOT of these cultural monuments/statues all around the city.  Some of them are obviously a depiction of ancient Chinese life but others like Don Quixote & Sancho have absolutely nothing to do with Chinese culture.  But they are fun to climb on!
 
It sparked my interest the other day while on my way to work thinking of who made the decision to put this here…hmmm.  Why did it make sense to use this piece of public land for this reason?  Then I thought, why not?
 
Must art have a reason to represent a part of the culture?  Or is it just a spark of imagination that cannot be judged?  Just the expression of someone’s thought.  To be respected.
 
Further lead my thinking to what made Langston Hughes write poetry? What made Picasso & Salvador Dali paint portraits? What made Mahalia Jackson sing?  Not sure…. but I’m glad they had the tenacity to create.
 
These expressions told a great amount about the times in which they lived and more important than financial success, they told a story.  This story defines who we are/were at that moment in time.  Think of Picasso’s Battle of Guernicapainting or Michael Jackson’s Thriller or Edwin Starr’s War?  These definitive works of art are just like the monuments I see on the street.  Without an inch of personal edification for the artist, they promote culture, class & self-awareness to the community.  How else would we be able to accurately remember history? Sure, we have writing, movies and now the internet to research but I would argue that art is just as substantive.
 
Salvador Dali is one of my favorite artists of all times.  His surreal paintings are up to you to decipher.  Not like an article or story that tells you what to think, I appreciate his art because it’s meaning is up to your imagination.  That means two people can look at the exact same piece of work and develop two completely different meanings.  Seems it has so much to do with our personal experience as human beings.  Think of the differences in males and females.  We can look at or hear the exact same fact pattern and have a different thought about it. 
 
When pressed to explain them (imagery of horse & bull) in Guernica, Picasso said, “this bull is a bull and this horse is a horse…. If you give a meaning to certain things in my paintings it may be very true, but it is not my idea to give this meaning.  What ideas and conclusions you have got I obtained too, but instinctively, unconsciously.  I make the painting for the painting.  I paint the objects for what they are.” -Wikipedia
 
It makes me stray from using “definite history” as the only source of information.  Like the history books I learned from in grammar school.  I mean, they are great at teaching the basics but aren’t they just one person’s or company’s rendition of the story.  There are so many untold stories about the American Revolution, the Industrial Revolution, Slavery, etc that I would never learn from a book.  But I can remember as a teenager my dad taking me to visit the Henrietta Marie slave ship that had been uncovered by a group of scuba divers and thinking to myself, wow, I never learned that in school!  But from this piece of art I understood the story a little better.  In addition, I was left with a piece of information that could apply directly to my life. 
 
So this is what I’ve tried to do as I pass these “abstract” pieces of work everyday.  Try to make sense of them and define them as they relate to me.  Now, I must give a disclaimer, I appreciate art to the fullest but have very little artistic ability myself…. meaning without a few drinks, I can’t sing, dance and will probably never be able to draw, but this doesn’t mean I’m not an artist.  Doesn’t mean any of us aren’t artists in our own way.  I think it is up to us to find our artistic ability and tell the story around us.  Define it for ourselves.  If we don’t, the story will be left to the history books to define culture & I tend to think we have a little more control over history than that.
 
Thus, I challenge us all to find that artist within and create something!  I heard it once said that if you are feeling creative, create something….
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