Thursday, September 3, 2009

Emersion in Chinese business: 9-02-09



It’s no longer the cultural differences in China that amaze me; that's just scratching the surface. The restrooms may be holes in the floor, they may eat meals from a lazy susan with 10 different food options, they may focus on relationships with people, they may live with their parents their whole lives. That's just scratching the surface. In China, if you want to fix up your house, you cannot get a loan. Banks don't loan money; Chinese people don't have credit. There are no credit cards, no mortgages, no home equity loans, etc. If Chinese people want to do something that costs money, they save. In fact, the savings rate for Chinese people is 40%. This is just a complete shift from the lifestyle we live as Americans.

Regulations depend on who you know in the government. The laws may be strict, depending on the issue. For instance, healthcare regulations are strict. However, there is construction everywhere and the scaffolding is made of bamboo shoots held together with clothe straps. There are many many buildings that would be demolished in the US for safety violations.

Today, we visited the McCormick spice factory. We had to wear face masks, lab coats and a hair net. The dust from the spices caused many of us to cough and gag, but the workers were indifferent. We saw spices being sorted, packaged, labeled and bottled. It was a clean facility and was certainly not what some would call a “sweat shop.” The floors were lined with mouse traps. Good I guess... at least they're working to keep them away from the spices, right? Outside, the streets were full of garbage. This was the first day that I feel we really got a clear view of some reality of Chinese living. On previous days, we've only been exposed to the lifestyle of the Chinese rich or upper middle class.

Next, we went to Price Waterhousecoopers. A female partner shared her experience working in China and the US. It was great to hear from a female Chinese national. She was very proud that 27% of PWC's execs in China are female. This is about 10% lower in the US. She talked a little about how China's appreciation and respect for women has changed significantly with the acceptance of more “Western” societal practices. Certainly though, she admitted that families in the rural part of the nation still prefer to have sons.

We were so desperate for Western food tonight that we went to a fancy Italian restaurant in a European influenced part of town. I am so blessed to be an American. This experience has made me truly thankful for all the choices we have.

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