Saturday, July 5, 2008

Trip Reflections

For the past eighteen days I have been traveling around Asia, seeing the differences between the two up-and-coming economies: China and India. These two countries are often compared and I was looking forward to seeing their similarities and differences firsthand as we arrived at our first stop, Beijing. The first thing I noticed about the city was the smog. It hung over the city like a blanket, covering everything and giving the city a very dull look. The smog, of course, is an unfortunate result of China's booming economy. With each new factory and each new car, the city fights a losing battle to keep the pollution down. As the Olympics approach, China has a real challenge before it. We visited the Olympic Bird's Nest on one of our days in Beijing. It was so smoggy that we could barely make it out from about 200 yards away. As we looked at this great structure that is poised to show off China's greatness this August, I wondered how on earth they were going to keep the smog down enough to make sure that the worldwide audience could see the Bird's Nest - and the athletes.

Despite the smog, Beijing was my favorite place we visited. It has rich history, which you can see in the Forbidden City, the many temples around the city, Tienanmen Square, and, of course, the nearby Great Wall. Shanghai, on the other hand, was much more of a city - tall buildings make up its skyline and the traffic is much worse (though part of the reason for this may have been driving restrictions in Beijing in anticipation of the Olympics). Shanghai seems to be where the business happens. Our group visited more businesses and began to settle into our routine after having more time off in Beijing. One of the visits that really interested me was Subway. After hearing about Subway's entrance into the Shanghai market a few months ago at Cal Poly, I was looking forward to seeing it for myself. They showed us four locations, each location having a different reasoning behind it. Some locations did better on the weekends and some during the week; some depended on the weather. It was interesting to hear how they dealt with each location and how they marketed such a foreign concept of food to the Chinese.

As we began our journey to India, we encountered the many issues that can be presented when traveling by air. The remnants of a typhoon grounded our flight, delaying us by five hours and making us miss our flight from Hong Kong to Delhi. The challenges of dealing with this problem are magnified when you are in a group of 46 people, but I was impressed by everyone's willingness to go with the flow. There weren't too many complaints and people even found ways to entertain themselves with mini flying helicopters and wheelchairs. This is just the reality of doing international business - sometimes things don't work out as planned, but you have to move forward anyway. We missed our free day in Delhi, but were still able to see the city, attend business meetings, and, most importantly, see the Taj Mahal.

The city of Gurgaon brought to life the quote about India that was posted on our information sheets: "There are two India's in this country, one India is straining at the leash eager to spring forth and live up to all the adjectives the world has been recently showering upon us; the other India is the leash." The quote is by Amitabh Bachchan, a Bollywood celebrity and entrepreneur from India and after seeing India firsthand I think this quote is right on. Amongst the brand new shiny buildings bearing the names of Dell and American Express were dirt roads, shanties with blue tarp rooves and cows wandering the streets. It was the strangest sight, something we are not used to in America. It was as though India had taken off, while at the same time leaving many behind, but both were living together. The wage gap is obviously huge in India, which was even more apparent on our visit to a local developer. Their new development focused on India's elite. It will take them away from the poverty on the streets and into their own protected haven. Hearing from a local developer was very interesting in a country where the infrastructure is so lacking. One question asked of the developers was regarding whether or not they are required to help with road upkeep around their sites. The answer they gave was vague, but it was clear that that was not required.

Infrastructure is the most apparent difference between China and India. It is also the main reason for the differences in types of industry that come to these countries. China is known as the manufacturer of the world, while India is the world's call center. A phone company we visited had a factory in India and my question to our host was if this was the only place they had factories. The man laughed and answered that they also had factories in China. I can see why, it would be a challenge to transport large quantities of goods all over the world from India's rough roads.

India has many challenges ahead of it as their economy grows. Unlike China, India's democratic government cannot move quickly enough to keep up with it's growing economy. This makes India appear as if it is far behind China. While China's cities are beginning to resemble those of the West, India's cities are still inhabited by wandering cattle and old rusty bikes that take up the road and slow down traffic.

China's government, on the other hand, has been able to make things happen to keep up with their economy. A great example is the new Yanghshan Deep Water Port on an old fishing island outside of Shanghai. When they realized they would need a better port for Shanghai, China simply moved a whole village of fishermen and built a new port that can hold several large ships bound for places like California. These are just a few of the apparent differences between China and India.

Yet, if you look below the surface, these two countries are not all that different. This is very apparent in the way they do business. Business in these places is about who you know. As an outsider, you will most likely need a local contact to really do business and be successful. You also need to know the local etiquette as senior members are treated with the utmost respect, much more so than in America. If you do not make an effort to understand these cultures, doing business here will be a challenge, but more importantly, you will be missing out on what makes China China and what makes India India.

Saturday, April 5, 2008

Chinese Business Etiquette

A Guide to Protocol, Manners, and Culture in the People's Republic of China
By Scott D. Seligman

When I first decided to give this book a try as my final book review book, I was a bit worried. My main concern was its publish date of 1999. I wondered: would the book be out of date with the many changes of the last nine years? However, I was pleasantly surprised by the book's timelessness. It focused on the cultural aspects of the way in which the Chinese conduct business, which hasn't changed much in the past nine years or the past 2,500 years as I learned in Seligman's first chapter.

The book is organized into several chapters covering everything from how to interact with the Chinese in China to how to host the Chinese in America. Seligman starts with the basics of forming the all-important relationship with the Chinese, getting in touch and the meet and greet being important first steps. Following the first steps, he takes the reader through the etiquette of business meetings and banquets. Allowing the reader to delve into the way the Chinese make deals. Seligman also goes on to address the importance of saving face in China. This is much more important for Chinese and they spend much more time thinking about it than Americans do. For this reason it is important not to forget to always use proper titles, since these forms of address have been very important to the Chinese for centuries.

Seligman brings this knowledge to his readers from both personal experience and experiences of others he has learned about through his professional interactions. One of the things that struck me as I was reading was the book's professionalism. It never "chose sides," simply giving readers a guide to understanding the business aspects of the Chinese culture. Seligman never gave an opinion about whether the traditionally American way of doing business was better than the Chinese way. Instead, he focused on a mutual respect for both cultures and finding a common ground for them to mesh successfully.

Overall, I felt the book had few weaknesses. There were some rather cliched references to sports examples often used by American males, which I felt were not good examples. They seemed stereotyped and meant only for a male reader. Also, I would love to see the book updated to include more "netiquette" information regarding business in China. In several sections Seligman gives an example of an American using a fax as a way of communication with the Chinese. Although, this scenario could still be possible today, e-mail certainly seems to be a more likely choice. Many, even those in the business world, need to learn the importance of "netiquette" and the consequences of not taking e-mail seriously.

I would definitely recommend this book to anyone who is planning on doing business in China or even to someone simply interested in gaining some insight into the Chinese. It is well-organized and easy to read. Because it is separated into chapters and subheadings, it is also easy to go back and reference for further information. Seligman obviously spent some time on this book as it was very thorough. It is a great book to have read before our trip to China - I only wish it was a little smaller, so I could carry it in my pocket for reference.

Saturday, January 19, 2008

China...AND India!!

As of Thursday, January 17, 2008 we are officially going to India as well as China in our upcoming business trip! I am very excited by this news and totally support this decision. I think it will be important for us to see both countries as they are fast becoming the countries in the global economy. Often these two countries are compared and by visiting both, we will be able to see the similarities and differences for ourselves. Although I am sad to be giving up the past visits to Southern China, the prospect of seeing a whole other country and culture will really enhance the trip. Thank you Dr. Carr, Vicki Walls, Dr. Singh, his wife, and anyone else I may have missed who is helping make this trip happen!

Monday, January 7, 2008

River Town

By Peter Hessler

River Town is Peter Hessler's candid account of life as a "waiguoren" or foreigner living and working in China. Hessler spent two years in the late 1990's along the Yangtze River in the remote town of Fuling. Prior to his arrival, the town had not had seen "waiguoren" for fifty years. He was sent as a Peace Corps volunteer to teach English and American literature at the local teacher's college. During his time in China, Hessler not only learned Mandarin, but also learned a great deal about the Chinese people and their customs.

Hessler is willing to tell it like it is - including both the good and the bad aspects of his experience. One of my favorite aspects of the book was the passages he included from his students' writings. He did not filter their writings, leaving in their misspellings and grammar mistakes. This gives the reader real insight into the minds of his Chinese students.

I also enjoyed following Hessler in his changes over the two year period. When he first arrived, he knew little of the ways of the Chinese and almost no Mandarin beyond a few simple phrases. It was interesting to see how not only he changed, but the way he looked at the world changed with his ability to speak Mandarin and his better understanding of Chinese culture. By the end of the book he is no longer a "waiguoren," but a resident of Fuling and he very much considers himself so.

One of the problems I encountered with this book was Hessler's use of Chinese words. I liked that he included some Mandarin, but after a while, he dropped his English translations. This would not have been a problem had I read the book in one sitting, but after a few days without reading, I found myself flipping through the pages for translations. I did learn a few Mandarin words because of this - "waiguoren" anyone? - but still found myself struggling with some of the other less used words. This was only a slight hiccup in my reading as I found myself quickly engrossed in his stories. My suggestion to anyone reading this book is to really pay attention to those Mandarin words because they will probably continually show up, eventually without English translation. It was a real challenge to find the original translation and I often found myself giving up and trying to decipher it's meaning from the sentence it was used in. The good thing is I do know a few Mandarin words now!

The only other weakness I found in this book was the interruption of flow created by a short story after each chapter. In some cases the story was the history of White Flat Mountain, the mountain above Fuling, and in other cases the story delved into the lives of some of Fuling's residents. Each little story was very interesting, but it broke up the flow of the main story, which followed a chronological order from the time of Hessler's arrival in Fuling to the time he left. The real problem was that most of these stories didn't have a clear link to the chapter before them. Some did have a link, but for the most part, I felt that the flow was hard to re-grasp after these stories.

Despite these weaknesses, River Town's attributes more than make up for them. The book is well-written and easily captures the reader's attention. I would suggest this book for anyone who may travel to China, particularly if they are considering living there. Although, really this book can be read by anyone interested in Chinese life. River Town is a good read that is both fun and enlightening.