@englishbusiness
There are three elements of chinese military strategy, taught to every school child for generations, embedded in this response. Not all understand, but all know these strategies.
Just speaking a language fluently is insufficient to create, grow/sustain, and scale long-term relationships.
You'll need to understand your stakeholders, so you can lead them, influence, them, attract them, as opposed to following trends, which has its advantages and risks. Leaders enjoy the benefit of first kill, while the pack that follows compete amongst themselves for the scraps. This is one of tenets of entrance barriers. While your competitors are fighting over the carcass of last year's kill, you've moved on to the next market or market segment, within your chosen domain(s).
LANDSCAPE AKA BATTLEFIELD
China is not the China most westerners see. It is as diverse and as complicated as Europe in both locations and peoples - aside from the debatable and arguable advantage of centralized control.
HARD OR TECHNICAL SKILLS
2. If you have a business MODEL, it should be long term, difficult to copy, profitable (short term to longterm), sustainable, and scalable. These principles hold true regardless of where you set up shop - but even more so here - as a population density 4-5x that of the USA would logically dictate a competitive environment 4-5x as fierce.
Most successful 1 trick ponies - fail within 3 years. Typically, the first year is sunk cost building up your brand and business. The second year is spent trying to fend off copycats, and the third year is spent shutting down from ludicrously excessive competition, offering poorer cut-rate knockoff services, starving and strangling your baby to death.
That is the reality of competition and we haven't even delved into the force majeur realms of dirty tricks, corruption, and political risks.
Sales take place all over china - but can you survive on their profit margins or in their highly competitive environments until you can establish brand and distinctive differentiation?
Do you have multiple exit strategies, to include catastrophic failure?
SOFT SKILLS
This mostly addresses your short term plan to establish a beachhead, to the longer term organic and ultimately exponential growth. You'll need to have a strong executable technical plan, well trained and loyal staff and loyal stakeholders - but it will ultimately depend on your ability to influence and lead others as a leader and visionary, if you're ever to make it off the beach and push inland.
China is littered with the carcasses of local businesses inspired by brilliant ideas and native level Chinese language abilities.
Interview: Brian Eyler on Baihetan, China's second largest dam
Posted byFirst - excellent and informative article. Although I absolutely must concur with some of the views of the expert - the facts are always not so obvious, when one chooses to micro-focus on subsystems as opposed to expanding one's view to a larger system. This is a popular management trend called decision-based data as opposed to data-driven decisions. So agreement, disagreement, or no opinion - depends on one's perspective.
Most westerners, especially those with hidden or obvious political agendas, look at China as they look at the west - a free market based economy.
China is a planned economy and certain infrastructures are built looking forwards decades.
China's energy consumption trajectory is not considered by the author, so let's take a look at that subjectively or qualitatively, since I'm too lazy to do the research numbers.
ENERGY CONSUMPTION IN KUNMING
Our hot water heaters used to be gas powered - but we had to replace the "damned" thing every two years because of the buildup of ash (aka toxins - seriously...green flecks in the ash - what is that? Chromium?) from the dirty gas. We switched to a combination of solar and electric (which do NOT work in tandem).
The prolific construction of new high-rises do not permit the effective use of solar in high density residential communities (e.g. most real estate development mega projects in Kunming are around the 2k residence level. So on demand electric systems make more sense.
COOKING
We haven't switched to electric because the power grid where we live simply won't handle the load (much less our ancient wiring). New high rise developments come with the option of gas or electric - with most choosing electric. It's fast, clean, and doesn't expose the stove components to cooking spillage. We've replaced our gas stove twice in the last 8 years - but to be fair - the last replacement was required because we switched to a new "cleaner" gas.
E-BIKES
Prolific.
MASS TRANSIT
The subway - electric powered. Buses moving towards electric power. And automobiles - e-powered vehicles are an emerging phenomenon with incredibly central government support and subsidies. Occasionally, you'll spot that rare BYD electric powered taxi (the SUV). China is migrating as much as its domestic infrastructure off fossil fuel dependence as possible.
So just from our own personal experiences and observations - consumer-based consumption of electric services is increasing at a steady pace.
ENVIRONMENTAL
There is no argument about the destruction of surrounding habitats and the migration of valley dwellers. This is a management issue for the government as they strive for poverty elimination. A large part of China's poverty elimination program is focused on attracting rural workers to cities, with jobs, education, and the ever upwardly mobile opportunities that education can provide - hence that insane construction pace. Kunming is planned to grow to a size of 10 million (but don't know the date on that plan).
Last time I checked - the city is at about 6.6 million, so we have another 3.4 million to go - so those 2000 unit mega developments (assume a family size of 4) housing up to 4 people, not including grandparents, in-laws, and others - 8k per development. That means ROUGHLY we'll need another 425 real estate development projects to house those 3.4 million additional residents.
That's another 850k families (3.4 mil/4,assuming a family unit of 4) consuming energy, services, infrastructure, e-bikes, cooking, water, toilet flushing, etc etc etc.
And that's JUST Kunming - there are 15 other prefectural level cities with supposed urban sprawl magnet program requirements as part of the nation's poverty elimination strategies.
So the author points out the displacement of a few thousand to a few hundred thousand people. Cast that against 3.4 million and things perhaps aren't quite as obvious - and again, that is ONLY based on Kunming plans. As we all noticed with the formerly famous and internationally maligned Chenggong ghost city (not so ghostly anymore), planned economies can be sustainably successful. And we didn't even discuss all the government (schools, 2 fly toilets, etc) and commercial infrastructures (restaurants, businesses, etc ad infinitum) that spawn from those residential communities. And we haven't even begun to address the energy sucking behavior of the internet and all its derivative industries - data centers, cloud computing centers, distributed corporate IT migration strategies.
Easy to criticize a microscopic spot than to manage the mega complicated system that is China.
However - that said - the author's points ARE valid and we do need alternate perspectives, so we understand the cost/benefit trade-off more responsibly.
And...I'll just get off that soapbox now...
Film Review: Paths of the Soul
Posted byI'm thinking that's a pretty aerobic pilgrimage...
Editorial: Hydro expansion will fail without energy market reform
Posted byum...yes - I actually meant central Asia - neighboring countries closer than say Shanghai, that would appreciate energy and be willing (maybe) to pay competitive rates for it (as opposed to just dumping the power potential).
Editorial: Hydro expansion will fail without energy market reform
Posted byChina is ramping up the use of e-vehhicles - which should take some of the capacity. I'm also wondering about whether we're exporting power to SE asia, which would seem to be an excellent market, and to the middle east where they DEFINITELY need power along the OBOR (one belt, one road).
1920s China through the lens of Joseph Rock: Simao
Posted byI'm thinking his romanizations can be forgiven, given that putonghua was not standard and he's probably hearing a variety of dialectic Kunming hua and the incredibly diverse minority languages and dialects, when the locals or guides provide descriptions of various names and places, not to mention the various linguistic eccentricities of the various european missionaries.