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Sunday, November 15, 2009

5 Things the U.S. Can Learn from China

By Bill Powell / Shanghai
Thursday, Nov. 12, 2009

China's schools are adding more creative and practical topics to their notoriously rigid curriculum.

China is experimenting with eco-friendly technologies, from electric cars to urban wind turbines like this one in southeastern Shanghai.

Masons at work in front of the China Pavilion at the future site of Expo 2010 in Shanghai.

Most Chinese seniors live with and are cared for by their relatives.
On the evening of Nov. 15, President Barack Obama, the youthful leader of one of the world's youngest countries, begins his first visit to China, among the world's most ancient societies. Obama and his Chinese counterpart, Hu Jintao, have much to discuss. Nukes in Iran and North Korea. China's surging military spending. Trade imbalances. Climate change.

But the visit comes at an awkward moment for the U.S. China, despite its 5,000-year burden of history, has emerged as a dynamo of optimism, experimentation and growth. It has defied the global economic slump, and the sense that it's the world's ascendant power has never been stronger. The U.S., by contrast, seems suddenly older and frailer. America's national mood is still in a funk, its economy foundering, its red-vs.-blue politics as rancorous as ever. The U.S. may be one of the world's oldest capitalist countries and China one of the youngest, but you couldn't blame Obama if he leaned over to Hu at some point and asked, "What are you guys doing right?"

Could the world's lone but weary superpower actually learn something from China? It's a politically incorrect question, of course. China is an authoritarian nation; its ruling Communist Party deals ruthlessly with any challenge to its hegemony. It remains, relatively speaking, a poor, developing country with huge problems to confront, massive corruption and environmental degradation being Nos. 1 and 1a. Still, this is a moment of humility for the U.S., and China is doing some important things right. If the U.S. were to ask the Chinese what it could learn from their example, it might gain some insight into what it's doing right and wrong. Here are five lessons from China's success story:

1. Be Ambitious
One day this summer, Sean Maloney, an executive vice president at Intel, was bouncing from one appointment to another in northeastern China, speeding along in a van traversing newly built highways. He gazed out at one of the world's biggest construction projects: a network of high-speed train lines — covering 10,000 miles (16,000 km) nationwide — that China is building. As far as the eye could see, there sat vast concrete support struts, one after another, exactly 246 ft. (75 m) apart. Each was full of steel cables and weighed about 800 tons. "We used to build stuff too," Maloney mused, unprompted. "But now it's NIMBY [not in my backyard] every time you try to do something. Here," he joked, "it's more like IMBY. There's stuff happening here, everywhere and always."

It's not just NIMBYism that constrains the U.S. these days, of course. America is close to tapped out financially, with budget deficits this year and next exceeding $1 trillion and forecast to remain above $500 billion through 2019. But sometimes the country seems tapped out in terms of vision and investment for the future.

Some economists believe that given its stage of development, China spends too much on expensive items like high-speed rail lines. But step back from the individual infrastructure projects and the debates about whether a given investment is necessary, and what's palpable in China is the sense of forward motion, of energy. No foreigner — at least not one I've met in five years of living here — even bothers denying it. And the Chinese take it for granted. When a brand-new six-lane highway opened in suburban Shanghai in October, Zhong Li Ping, who shuttles migrant workers to the city and back to their hometowns, said, "I don't know what took them so long." In truth, it took about two years — roughly the time it would take to get the environmental and other regulatory permits for a new highway in the U.S. If, that is, you could get them at all.

There's no direct translation into Chinese of the phrase can-do spirit. But yong wang zhi qian probably suffices. Literally, it means "march forward courageously." China has — and has had for years now — a can-do spirit that's unmistakable. Americans know the phrase well. They invented it. It used to define them.

Critics of the authoritarian Chinese government would say it's a system more accurately called "can do — or else." And they have a point. No one in the U.S. would argue that it should adopt China's dictatorial style of government. America doesn't need to displace tens of thousands of people in order to build a massive dam, as China did in Hubei province from 1994 to 2006. (The value of checks and balances is, in fact, among the many things China could learn from the U.S.) But you don't have to be a card-carrying communist to wonder how effectively the U.S. develops and executes ambitious projects. Ask James McGregor. He's a former chairman of the American Chamber of Commerce in China and now a business consultant who divides his time between the two countries. "One key thing we can learn from China is setting goals, making plans and focusing on moving the country ahead as a nation," he says. "These guys have taken the old five-year plans and stood them on their head. Instead of deciding which factory gets which raw materials, which products are made, how they are priced and where they are sold, their planning now consists of 'How do we build a world-class silicon-chip industry in five years? How do we become a global player in car-manufacturing?'"

Some of this is the natural arc of a huge, fast-growing country in the process of modernization. The U.S. in the late 19th century was nothing if not what Intel's Maloney would call an IMBY country. America was ambitious. There's no secret formula to help the nation get back its zeal for what it used to enthusiastically and sincerely call progress. But even though the U.S. is a mature, developed country, many economists believe it has shortchanged infrastructure investment for decades. It possibly did so again in this year's stimulus package. Just $144 billion of the $787 billion stimulus bill Congress passed earlier this year went to direct infrastructure spending. According to IHS Global Insight, an economic-consulting firm, U.S. spending on transportation infrastructure will actually decline overall in 2009 when state budgets are factored in — this at a time when the American Society of Civil Engineers contends that the U.S. should invest $1.6 trillion to upgrade its aging infrastructure over the next five years.

When the economic crisis hit China late last year, by contrast, almost half of the emergency spending Beijing approved — $585 billion spread over two years — was directed at projects that accelerated China's massive infrastructure build-out. "That money went into the real economy very quickly," says economist Albert Keidel of the Carnegie Endowment for International Peace.

But it's not just emergency spending on bridges, roads and high-speed rail networks that's helping growth in China. Patrick Tam, general partner at Tsing Capital, a venture-capital firm in Beijing, says the government is aggressively helping seed the development of new green-tech industries. An example: 13 of China's biggest cities will have all-electric bus fleets within five years. "China is eventually going to dominate the industry for electric vehicles," Tam says, "in part because the central government has both the vision and the financial wherewithal to make that happen." Tam, a graduate of MIT and the University of California, Berkeley, says he does deals in Beijing rather than Silicon Valley these days "because I believe this is where these new industries will really take shape. China's got the energy, the drive and the market to do it." Isn't that the sort of thing venture capitalists used to say about the U.S.?

2. Education Matters
On a recent Saturday afternoon, at a nice restaurant in central Shanghai, Liu Zhi-he sat fidgeting at the table, knowing that it was about time for him to leave. All around him sat relatives from an extended family that had gathered for a momentous occasion: the 90th birthday of Liu's great-grandmother Ling Shu Zhen, the still spry and elegant matriarch of a sprawling clan. But Liu had to leave because it was time for him to go to school. This Saturday, as he does every Saturday, Liu was attending two special classes. He takes a math tutorial, and he studies English.

Liu is 7 years old.

A lot of foreigners — and, indeed, a fair number of Chinese — believe that the obsession (and that's the right word) with education in China is overdone. The system stresses rote memorization. It drives kids crazy - aren't 7-year-olds supposed to have fun on Saturday afternoons? - and doesn't necessarily prepare them, economically speaking, for the job market or, emotionally speaking, for adulthood. Add to that the fact that the system, while incredibly competitive, has become corrupt.

All true — and all, for the most part, beside the point. After decades of investment in an educational system that reaches the remotest peasant villages, the literacy rate in China is now over 90%. (The U.S.'s is 86%.) And in urban China, in particular, students don't just learn to read. They learn math. They learn science. As William McCahill, a former deputy chief of mission in the U.S. embassy in Beijing, says, "Fundamentally, they are getting the basics right, particularly in math and science. We need to do the same. Their kids are often ahead of ours."

What the Chinese can teach are verities, home truths that have started to make a comeback in the U.S. but that could still use a push. The Chinese understand that there is no substitute for putting in the hours and doing the work. And more than anything else, the kids in China do lots of work. In the U.S., according to a 2007 survey by the Department of Education, 37% of 10th-graders in 2002 spent more than 10 hours on homework each week. That's not bad; in fact, it's much better than it used to be (in 1980 a mere 7% of kids did that much work at home each week). But Chinese students, according to a 2006 report by the Asia Society, spend twice as many hours doing homework as do their U.S. peers.

Part of the reason is family involvement. Consider Liu, the 7-year-old who had to leave the birthday party to go to Saturday school. Both his parents work, so when he goes home each day, his grandparents are there to greet him and put him through his after-school paces. His mother says simply, "This is normal. All his classmates work like this after school."

Yes, big corporate employers in China will tell you the best students coming out of U.S. universities are just as bright as and, generally speaking, far more creative than their counterparts from China's élite universities. But the big hump in the bell curve — the majority of the school-age population — matters a lot for the economic health of countries. Simply put, the more smart, well-educated people there are — of the sort that hard work creates — the more economies (and companies) benefit. Remember what venture capitalist Tam said about China and the electric-vehicle industry. A single, relatively new company working on developing an electric-car battery — BYD Co. — employs an astounding 10,000 engineers.

China, critics will point out, doesn't produce (at least not yet) many Nobel Prize winners. But don't think the basic educational competence of the workforce isn't a key factor in its having become the manufacturing workshop of the world. It isn't just about cheap labor; it's about smart labor. "Whether it's line workers or engineers, we're finding the candlepower of our employees here as good as or better than anywhere in the world," says Nick Reilly, a top executive at General Motors in Shanghai. "It all starts with the emphasis families put on the importance of education. That puts pressure on the government to deliver a decent system."

And the Chinese government responds to that pressure in some intriguing ways. It insists that primary-school teachers in math and science have degrees in those subjects. (Less than half of eighth-grade math teachers in the U.S. majored in math.) There is a "master teacher" program nationwide that provides mentoring for younger teachers. Zhang Dianzhou, a professor emeritus of mathematics at East China Normal University in Shanghai who co-chaired a committee charged with redesigning high school mathematics programs across the country, says recent changes have begun to reflect more of a "real-world emphasis." Computer-science courses, for example, have been integrated into the math curriculum for high school students. And China is placing even more importance on teaching young students English and other foreign languages. If you think China's willingness to constantly fine-tune its educational system is not going to have much of an impact 20 years from now, there's a 7-year-old boy in Shanghai who'd be happy to discuss the issue with you. In English.

3. Look After the Elderly
it's hard to imagine two societies that deal with their elderly as differently as the U.S. and China. And I can vouch for that firsthand. My wife Junling is a Shanghai native, and last month for the first time we visited my father at a nursing home in the U.S. She was shaken by the experience and later told me, "You know, in China, it's a great shame to put a parent into a nursing home." In China the social contract has been straightforward for centuries: parents raise children; then the children care for the parents as they reach their dotage. When, for example, real estate developer Jiang Xiao Li and his wife recently bought a new, larger apartment in Shanghai, they did so in part because they know that in a few years, his parents will move in with them. Jiang's parents will help take care of Jiang's daughter, and as they age, Jiang and his wife will help take care of them. As China slowly develops a better-funded and more reliable social-security system for retirees — which it has begun — the economic necessity of generations living together will diminish a bit. But no one believes that as China gets richer, the cultural norm will shift too significantly.

To a degree, of course, three generations living under one roof has long happened in the U.S., but in the 20th century, America became a particularly mobile and rootless society. It is hard to care for one's parents when they live three time zones away.

Home care for the elderly will most likely make a comeback in the U.S. out of sheer economic necessity, however. The number of elderly Americans will soar from 38.6 million in 2007 to 71.5 million in 2030. But, says Arnold Eppel, who recently retired as head of the department of aging in Baltimore County, Maryland, "There won't be enough spots for them" in the country's overwhelmed nursing-home system. Appreciating the magnitude of the coming crisis, the U.S. government has begun to respond. Two new initiatives — Nursing Home Diversion and Money Follows the Person — expand subsidies for home elder care, and the Veterans Health Administration has just put in effect its own similar initiative. "The whole trend will be into home care, because nursing homes are too expensive," Eppel says, noting that nursing-home care in the U.S. costs about $85,000 annually per resident.

In China, senior-care costs are, for the most part, borne by families. For millions of poor Chinese, that's a burden as well as a responsibility, and it unquestionably skews both spending and saving patterns in ways that China needs to change (see Save More, below). For middle-class and rich Chinese, those costs are a more manageable responsibility but one that nonetheless ripples through their economic decision-making. Still, there are benefits that balance the financial hardship: grandparents tutor young children while Mom and Dad work; they acculturate the youngest generation to the values of family and nation; they provide a sense of cultural continuity that helps bind a society. China needs to make obvious changes to its elder-care system as it becomes a wealthier society, but as millions of U.S. families make the brutal decision about whether to send aging parents into nursing homes, a bigger dose of the Chinese ethos may well be returning to America.

4. Save More
You've now heard it so many times, you can probably repeat it in your sleep. President Obama will no doubt make the point publicly when he gets to Beijing: the Chinese need to spend more; they need to consume more; they need — believe it or not — to become more like Americans, for the sake of the global economy.

And it's all true. But the other side of that equation is that the U.S. needs to save more. For the moment, American households actually are doing so. After the personal-savings rate dipped to zero in 2005, the shock of the economic crisis last year prompted people to snap shut their wallets. Now that it's pouring, in other words, American households have decided to save for a rainy day. The savings rate is currently about 4% and has gone as high as 6% this year.

In China, the household-savings rate exceeds 20%. It is partly for straightforward policy reasons. As we've seen, wage earners are expected to care for not only their children but also their aging parents. And there is, to date, only the flimsiest of publicly funded health care and pension systems, which increases incentives for individuals to save while they are working. But China, like many other East Asian countries, is a society that has esteemed personal financial prudence for centuries. There is no chance that will change anytime soon, even if the government creates a better social safety net and successfully encourages greater consumer spending.

Why does the U.S. need to learn a little frugality? Because healthy savings rates, including government and business savings, are one of the surest indicators of a country's long-term financial health. High savings lead, over time, to increased investment, which in turn generates productivity gains, innovation and job growth. In short, savings are the seed corn of a good economic harvest.

The U.S. government thus needs to get in on the act as well. By running perennial deficits, it is dis-saving, even as households save more. Peter Orszag, Obama's Budget Director, recently called the U.S. budget deficits unsustainable — this year's is $1.4 trillion — and he's right. To date, the U.S. has seemed unable to have what Indiana Governor Mitch Daniels has called an "adult conversation" about the consequences of spending so much more than is taken in. That needs to change. And though Hu Jintao and the rest of the Chinese leadership aren't inclined to lecture visiting Presidents, he might gently hint that Beijing is getting a little nervous about the value of the dollar — which has fallen 15% since March, in large part because of increasing fears that America's debt load is becoming unmanageable.

That's what happens when you're the world's biggest creditor: you get to drop hints like that, which would be enough by themselves to create international economic havoc if they were ever leaked. (Every time any official in Beijing muses publicly about seeking an alternative to the U.S. dollar for the $2.1 trillion China holds in reserve, currency traders have a heart attack.) If Americans became a bit more like the Chinese — if they saved more and spent less, consistently over time — they wouldn't have to worry about all that.

5. Look over the Horizon
The energy that so many outsiders feel when they are in China and that President Obama may see when he is there comes not just from the frenetic activity that is visible everywhere. It comes also from a sense that it's harnessed to something bigger. The government isn't frantically building all this infrastructure just to create make-work jobs. And kids aren't studying themselves sleepless because it's a lot of fun. A few years ago, I interviewed Zhang Xin, a young man from a deeply poor agricultural province in central China. His parents were wheat farmers and lived in a tiny one-room house next to the fields. He had graduated from Tsinghua University — China's MIT — and gotten a job as a software engineer at Huawei, the Cisco of China. His success, Zhang told me one day, had changed his family forever. None of his descendants would "ever work in the wheat fields again. Not my children. Not their children. That life is over." (And neither would his parents. They moved to prosperous Shenzhen, just north of Hong Kong, soon after he started his new job.)

Multiply that young man's story by millions, and you get a sense of what a forward-looking country this once very backward society has become. A smart American who lived in China for years and who wants to avoid being identified publicly (perhaps because he'd be labeled a "panda hugger," the timeworn epithet tossed at anyone who has anything good to say about China) puts it this way: "China is striving to become what it has not yet become. It is upwardly mobile, consciously, avowedly and — as its track record continues to strengthen — proudly so."

Proudly so, because as Zhang understood, hard work today means a much better life decades from now for those who will inherit what he helped create. And if that sounds familiar to Americans — marooned, for the moment, in the deepest recession in 26 years — it should.
Work hard, work smart, live strong. Don't enable weakness and reward failure. Let people simply get what they deserve. Quit whining and get your job done. And quit playa-hatin' on China. Got that, Amer-I-can'ts???


At Wednesday, November 18, 2009 at 5:19:00 PM PST, Anonymous trudat said...

Finance Minister Uhuru Kenyatta announced this summer that government ministers, along with assistant ministers and permanent secretaries, must turn in their ubiquitous Mercedes-Benz for Volkswagen Passats

Why, average Kenyans are asking, the Volkswagen Passat and not a Toyota, Honda or some other cheap and more widely available alternative? "To me, these guys are playing around with the minds of Kenyans," says Martin Kitunga, the 37-year-old senior mechanic at New World Auto in Nairobi. "Passat or Mercedes, it doesn't make that big a difference. If they really want to make a change, they should get a Toyota."

At Monday, November 23, 2009 at 1:13:00 PM PST, Anonymous Huan said...

It's true, we can take small lessons from China, but in the long run, that country is seriously fucked up. It's overpopulated, the Gobi desert is growing rapidly, their environmental policies are somehow worse than the US (That's amazing), the government seems to favor certain ethnic groups over others, and their Internet censorship is both pathetic and scary.

I hope the US never becomes the way China seems to be right now. It really seems like they've sacrificed a lot to become a superpower.

At Tuesday, November 24, 2009 at 12:13:00 PM PST, Anonymous january said...

Iz tru, we are teh failing.

Come save us Asia!!!

At Sunday, April 4, 2010 at 6:06:00 PM PDT, Anonymous jiange said...

How about some original, non-corporate style too?

Beggar "Brother Sharp" walks the streets & rocks the house down...

At Saturday, June 26, 2010 at 6:33:00 PM PDT, Anonymous plainfax said...

It's simple, folks. Asians work harder & smarter for less.

Whites work less hard & not as smart for more.

Jews just manipulate and take everybody's money with financial shell games.

And Blacks don't work at all and just want handouts.

That's it in a nutshell! Hence, you will see the same, predictable results all over the world from these different behaviors!

Skilled workers at American Yuncheng will earn $25 to $30 an hour, line operators $10 to $12. That's a lot more than the $2 an hour that unskilled labor costs in China

Fortune asked Sen. Jim DeMint, a Republican torchbearer for conservative causes, what he thinks of communists creating work in his home state. "South Carolina is one of the best places in the world to do business, and that's why so many international companies are moving jobs into our state"

Brenda Missouri, a 43-year-old leaks tester who works for appliance maker Haier, speaks about her employer in glowing terms. Haier was the first Chinese company to build a factory in the U.S. -- a refrigerator plant in Camden, S.C., in 2000. "They're good business folks; they get the job done," she says. As for communism? "Doesn't matter," she shrugs. "It's money that makes the difference."

Last December the National Committee on U.S.-China Relations dispatched me to Corpus Christi to give a speech about the Chinese and their economy. Why? Because, they told me, the region is about to become home to the largest-ever Chinese-built factory in the U.S., a $1 billion plant by Tianjin Pipe Group to manufacture seamless pipe for oil drilling. If everything proceeds as planned -- the company received its air-quality permit on April 14 and hopes to break ground by fall -- Tianjin Pipe expects to employ 600 Texans by 2012 and to provide an estimated $2.7 billion to the local economy over the next decade.

when Chinese delegations from Tianjin Pipe visited Corpus Christi, the townspeople made them feel at home by welcoming the visitors to backyard barbecues. They even enlisted the Taiwan-born former owner of the local Chinese restaurant, Yalee Shih -- perhaps the only woman in town who could speak Mandarin -- to help them navigate cultural nuances.

Chinese companies are resuscitating American outfits that had been left for dead. About 70 miles west of Spartanburg, near the Georgia border, past signs reading "24-hour fried chicken," another Chinese company is hiring engineers -- metallurgical and mechanical, some from nearby Clemson University.

one of China's self-made entrepreneurs, who started Top-Eastern in 1994 with just $500, Chee now has worldwide sales of more than $120 million, 4,000 employees, and factories in Germany and Brazil. He visits the South Carolina plant monthly to make sure all is proceeding as planned, and employs American managers to run it in his absence rather than bring over Chinese. "There's good, experienced people and good know-how already here," he says.

The Jewish-American media should stop hating on China and welcome them as our REAL Bailout - actual private JOBS - not taxpayer-funded deficit spending!

At Friday, December 23, 2011 at 6:09:00 PM PST, Anonymous Anonymous said...

"Poisoning their brainwashed minds." xtainity brainwashed you. Liberalism is the poison.
The gods used xtainity to demonize Lucifer, ensuring people refused to heed the teachings of THE SECOND COMING!!!. Lucifer is the Second Coming of Christ!!!
xtianity is the product of the Apostle's books of the New Testiment and can't be trusted to contain the true teachings of Jesus Christ. Just like each one of you corrupt whores, the gods could have tempted them with immortality if they lied when writing the New Tesatiment. Then the gods dictated verbatim specifically to parlay into the destructive phenominah known as xtianity.
We have seen the gods engage in similar behavior to keep people away from good religions, with the Jews in Palestine and Muslims recently post-9.11, demonizing both.
This is another of the god's wicked curveballs, their reverse positioning tool extensively employed, utilizing positioning to prepare for the Apocalypse and your "consolation prize" of "1000 years with Jesus on Earth".

Guns are bad because they empower men. Much like weightlifting and racing...
Any male-dominated activity is a red flag, just like anything which black subculture compells blacks. Yes, women have guns. Now. Historically this wasn't an issue. They didn't drink. They didn't gamble. Sports. They didn't do so many behaviors the gods dump men into because they are so destructive.
Now we are losing this, and with it the hope for the future of humanity on Planet Earth.
Your women are your only chance, and the more masculinized they are the less hope you have. Women have always avoided these temptations, and have always guided the men into wisdom and knowledge, allowing them to make progress and avoid another shitty placement when reincarnated. This is the historical relationship between the two genders, and it is changing as we approach The End.

"It's all going to hell. I don't have to deal with this mess I helped create. I won't be here so I don't give a fuck." This is the theory people have subscribed to for a couple of lifetimes, and will continue to until they understand reincarnation is real and will be enforced upon them.

What I say is no different than any Republican in the quest to reduce the enormous scope of government.
All those years of increasing government. None of those people were laid off as we regulratly witness in the private sector. Imagine the dead weight on the payroll.
You have to start laying people off. Unfortunately insolvency is the goal the gods have for the United States.
It's kind of like Mom:::So evil she isn't eligible for punishment until the end of her life when it is too late

Brain scramble jokes. She was a fake.
All in this position likely are fakes. The gods want things to prgress according to their agenda, and the clone host fakes guarentee the legislation they desire/require.
They aree always fresh, new know-it-all 20 year olds, eager to hurt people and "earn", so the only way things will improve is ironically if our children improve, if parents raise considerate, moral children. But while we have trashy parents like my family the gods will always have an endless supply of immoral monsers happy to sabotage the country through legislation.

In the course of decay and deterioration of the favor of the people the gods instructed their clone host tools in corporate to make changes to their products and subsequently in people's lives. The switch to plastic/disposable-based packaging is an outstanding example. Another is the extensive use/proliferation of disposable diapers. Whereas diaper services were the norm during the 20th cenutry a change occurred in the 70s/80s and parents began to incurr evil upon their children, and sadly in some cases think they were "earning" off their own infant children!!!

At Wednesday, November 6, 2013 at 1:17:00 PM PST, Anonymous Anonymous said...

Update this blog. I want to hear more about how my cock is bigger than white guys

At Wednesday, February 19, 2014 at 5:41:00 PM PST, Anonymous kingwangwei said...

Sorry, I am confused. Why do Americans copy policies from Detroit instead of China? You elected a President descended from a 3rd world African activist. Is there a cabal that has hijacked your government or are you voters really that stupid?


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