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20080429 Tuesday April 29, 2008
1000 Days

Today is number 1,000. Where were you on August 4th, 2005? How have you changed since? Did I play a part in your life? Hopefully nicely remembered.

China teaches. Everyday I soaked up and learned. I discovered things in me that were long forgotten. I watched China, the USA, Sun Microsystems, and other companies and institutes. I smiled, I laughed, I sighed, and, many times, I found myself almost in tears.

Things are happening here with such epidemic boldness. Billions, BILLIONS of people are marching to quiet orders and shaping the earth with forces this world has never experienced before. Clearly, the world does not know how to deal with China. I don't think China does either. March on, nevertheless.

The poor touched me the most. A young man told me that his parents paid for his 4 years of college. Each year cost 3 times their total annual income as rural farmers. After he "made it" in Beijing, he bought 2 houses: one for his own family and another for his elderly parents. He told me that he will never be able to pay them back. I agreed whole-heartedly. Another told me about his college friend who eats only one meal a day. He has 500 yuans to live by every month. When inflation drove up the cafeteria meal to 15rmb (2 dollars), he cannot afford 2 meals anymore. I thought of him whenever I ordered from Starbucks.

I found Chinese entrepreneurs emancipated. For every bureaucratic inefficiency, there is an entrepreneur offering services. For every cent of arbitrage difference, there is a business exploiting it. For every profit margin, there is a hard-working person earning it. Government tries to keep up with infra-structure build-up and found capacity soaked up instantaneously. China will be fully enterprised in a decade or two. The profiting model will then change from "vacuum filling" (claiming a segment as the 1st arriver) to "competitive advantage" (trying to out-do existing players). I am curious to observe the transition then.

I pondered long on the struggle of foreign enterprises, very few did well here. Root causes seem mundane and obvious: they have been inflexible, ignorant, and arrogant. Enterprises tried to import value systems with assumptions: they are poor and therefore must not know better, they are different and therefore must be inferior, they are inexperienced and therefore must be weaker. Educated will see the stupidity of these assumptions, yet corporations repeat them years after years while Chinese are agreeing with them all the way to the bank.

Everything is possible, nothing is easy. Cliché on the lives in China, yet so true. Getting a driver's license, for example, is definitively a blog-worthy topic. Most people resigned to the arbitrary, tedious, and ever-changing bureaucratic processes. For thousands of years, China governs more with processes and less with laws. In fact, the passage of a law means very little until the publication of implementation specifics. The adage "there is a counter-measure for every policies" (上有政策,下有对策) refers to the commonality of law circumvention and a reflection of the chasm between the legal systems and the reality. In China, people spend a large percentage of their attention and resources to circumvent out-dated laws and regulations creatively to get things done. Westerners gasp and Chinese just smile.

Personal milestones happened during these 1000 days too. My mother passed away, a niece married, my 2nd kid thrust me into empty-nester's club, and I re-bonded with childhood buddies. I guess milestones always happen, but China marks a distinct period for these 1000 days. I have been thinking of how to harvest from the learnings more and more these days. This means this phase will be winding down and the next will start soon. A few years from now, I will look back to see another distinct 1000-day period.

How exciting!


posted by syw Apr 29 2008, 12:00:00 AM CST Permalink Comments [4]

Comments:

It has been an exciting 1000 days! Well, I guess for me it's more like 970 or so. Yes, I am much different person today than I was 1000 days ago, and I think I made a difference in the world. Definitely in my own kids' lives. What a great ride it has been.

Posted by melanie gao on April 29, 2008 at 08:01 AM CST #

very few foreign enterprises are doing well? How is that? It seems the foreign consumer companies (drinks, soap, cosmetics, cars etc) are doing ok The enterprise IT companies might be struggling a bit, but I think there are larger factors than just people's altitudes.

Large foreign enterprises competes on economic scale by investing in enterprise IT. If there's no IT, company like walmart will simply dis-integrate into smaller shops. Why? the cost of managing a complex supply chain without IT will be so high that walmart won't offer the lowest price. enterprise IT companies make a business solving scale-related problems.

Not many Chinese companies are facing competitive pressure on "economy of scale" problem. That means less investment for enterprise IT in China.

Posted by pirates on April 29, 2008 at 09:14 AM CST #

The Story about the Young men of their college lives touched me as well, I remember I do not eat any meal with meat to save money as well when I was in college, although that was very cheap compare to how it is right now. Live wasn't easy, and now we are doing much better on many areas.
Wish Sun, and ERI will be doing better and better in the next 1000 days.

Posted by Helen on May 02, 2008 at 11:21 PM CST #

Intrigued by your reflections, but the big question I would have is how well is Sun integrating into the Chinese marketplace?

Are they guilty of the same sins as other foreign enterprises (inflexible, ignorant and arrogant?)

Posted by Rob on May 19, 2008 at 08:39 PM CST #

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