Observations on Globalisation
Since the turn of the century, I have traveled to countries that the are transforming world trade as part of the trends associated with "Globalisation". Having been a student of international economics for many years, it seems to me that a major issue arising from the current economic crisis is the gap between the macroeconomic views of policymakers (which we all hear a lot about in the mainstream media) and the microeconomic realities faced by businesses in the real world economy. As a result of shared information across the Internet, the everyday issues faced by small/medium sized business worldwide can seen to be much more common across the globe than previously thought - especially as governments in emerging market countries all implement similar policies that seek to encourage some sort of 'free enterprise'.
Another positive change that the Internet has enabled is the ease with which links that can be made and developed between smaller business and entrepreneurs. In days past only the multinational corporations which strode the global economy could facilitate such links through representatives on the ground located in their regional offices. Nowadays business can be done without ever having to meet with partners, suppliers and purchasers in person through such community sites as LinkedIn or Alibaba. It through the prism of the local partnerships (and friendships) that I have developed in these countries that this 'travel' blog is created.
Another positive change that the Internet has enabled is the ease with which links that can be made and developed between smaller business and entrepreneurs. In days past only the multinational corporations which strode the global economy could facilitate such links through representatives on the ground located in their regional offices. Nowadays business can be done without ever having to meet with partners, suppliers and purchasers in person through such community sites as LinkedIn or Alibaba. It through the prism of the local partnerships (and friendships) that I have developed in these countries that this 'travel' blog is created.
China: Odd (or Even) Who Cares?While Heads of State gather at the G20 meeting in Seoul, South Korea, to discuss macroeconomic issues this economist visited Guangzhou, China, 48 hours ago and has the following specific observations on the micro issues that may be feeding into the larger debate on China's role as a BRIC economy and globalisation:
++ There appeared to be no real presence of western brands for everyday shoppers at stores like 7-11 (this brand is now ubiquitous in almost all the Asian countries I have been to) or WalMart's Sams Club (with the irony being that these stores are themselves western brands!). Even low cost goods manufactured in China (plastic washing up bowls, mops etc) are more expensive to China shoppers than to those shopping at a Pound (sterling) Store on a British High Street! On the ground it certainly looks like US lawmakers have a point when they refer to China a "currency manipulator". |
Food plays a its part in developing business relationships. This video blog examines the choice that my colleague, Stanley Lee, and I were offered in Guangzhou.
|
++ Guangzhou is a ‘first tier’ city in China (probably number 3 after Beijing and Shanghai) currently hosting the Asian Games and frankly the infrastructure is truly incredible. Pot-hole-free-six-lane highways were the norm in most parts of the city we drove through (we stayed at a hotel complex about 20 klicks from the City centre). The use of energy to light the place at night in coloured lights (it seemed whole trees were made out of these things) is staggering. One can only assume this is for the purpose of impressing visitors to the Asian Games, as the cost to run this level of illumination in any other city would break the bank.
++ Very little English was spoken outside of the Big western hotels. Also the big media names like the FT, TIME, International Herald Tribune and even, the South China Morning Post (one of the world's greatest newspapers) that you see on the newsstands in most international cities were missing.
++ Forged notes are obviously an issue. We paid for our hotel with cash which was immediately thrown into a machine that checked the quality of the paper.
Overall (Really General) Impressions...
++ China is developing the part if its economy that we visited at breakneck speed. Guangdong province is the world’s manufacturing hub and its increasing wealth is obvious for all to see. But wages are rising fast. One person we met told us that a lot of the ‘low-cost’ textile work that used to be done in the province was being moved to other countries (like Bangladesh) because the “factory girls who used to do the high quality stitching are now getting higher paid jobs in Starbucks”. Although this is obviously an exaggeration we did see a heck of a lot of coffee shops!
++ The bit of the Society we saw was very ordered. On entry to the country a big screen showed rolling text with the immigration and importation laws outlined in bright text – even down to the sub paragraphs. At Heathrow you get a folded A4 leaflet showing spiders with a red line through them and a simple chart declaring how many fags and units of alcohol you are allowed to bring in.
++ As we were driven in the 5-series BMW of our host we were told that to reduce traffic congestion for the duration of the Asian Games cars were only allowed on the road that day if they had an ODD number at the end of their license plate. The next day we were returned to Guangzhou station for our train to Hong Kong in another 5-series Beamer with an EVEN number at the end of its license plate. One can only imagine the outcry if the London mayor tried that trick in the British capital. They’d be a good old English riot!
In summary...
The highly ordered nature of China that I expected manifested itself in many unexpected ways. My Hong Kong partner and I are probably the scruffiest types you can expect to see in a business environment – even making allowances for us being members of the Global Digeratti. Very casually dressed but connected to the hilt with iPads, iPhones, Blackberries and laptops (and that’s just the two of us). In fact, it’s fair to say that my Hong Kong friend looks like a Chinese version of Frank Zappa (he can sing like him too)! Our mainland Chinese partners wore ties, smart suits and only after a few thousand cigarettes and a glass of wine seemed to laugh at all.
Their lack of knowledge of the outside world took me by surprise – particularly a poor understanding of international business-to-business marketing outside of China. A good case can be made that this is because they don’t have access to full information particularly in Chinese, and that this inhibits their understanding of how business (and the world?) works globally. For example, on the day we left, Prime Minster Cameron gave a speech to selected students at a prestigious University in Beijing extolling the virtues of a more open society for China. It was the first thing I read about when we arrived back in Hong Kong. Needless to say our Chinese business partners would never hear of it since it wasn’t reported in the Party-controlled Chinese press. (GL - November 2010)
++ Very little English was spoken outside of the Big western hotels. Also the big media names like the FT, TIME, International Herald Tribune and even, the South China Morning Post (one of the world's greatest newspapers) that you see on the newsstands in most international cities were missing.
++ Forged notes are obviously an issue. We paid for our hotel with cash which was immediately thrown into a machine that checked the quality of the paper.
Overall (Really General) Impressions...
++ China is developing the part if its economy that we visited at breakneck speed. Guangdong province is the world’s manufacturing hub and its increasing wealth is obvious for all to see. But wages are rising fast. One person we met told us that a lot of the ‘low-cost’ textile work that used to be done in the province was being moved to other countries (like Bangladesh) because the “factory girls who used to do the high quality stitching are now getting higher paid jobs in Starbucks”. Although this is obviously an exaggeration we did see a heck of a lot of coffee shops!
++ The bit of the Society we saw was very ordered. On entry to the country a big screen showed rolling text with the immigration and importation laws outlined in bright text – even down to the sub paragraphs. At Heathrow you get a folded A4 leaflet showing spiders with a red line through them and a simple chart declaring how many fags and units of alcohol you are allowed to bring in.
++ As we were driven in the 5-series BMW of our host we were told that to reduce traffic congestion for the duration of the Asian Games cars were only allowed on the road that day if they had an ODD number at the end of their license plate. The next day we were returned to Guangzhou station for our train to Hong Kong in another 5-series Beamer with an EVEN number at the end of its license plate. One can only imagine the outcry if the London mayor tried that trick in the British capital. They’d be a good old English riot!
In summary...
The highly ordered nature of China that I expected manifested itself in many unexpected ways. My Hong Kong partner and I are probably the scruffiest types you can expect to see in a business environment – even making allowances for us being members of the Global Digeratti. Very casually dressed but connected to the hilt with iPads, iPhones, Blackberries and laptops (and that’s just the two of us). In fact, it’s fair to say that my Hong Kong friend looks like a Chinese version of Frank Zappa (he can sing like him too)! Our mainland Chinese partners wore ties, smart suits and only after a few thousand cigarettes and a glass of wine seemed to laugh at all.
Their lack of knowledge of the outside world took me by surprise – particularly a poor understanding of international business-to-business marketing outside of China. A good case can be made that this is because they don’t have access to full information particularly in Chinese, and that this inhibits their understanding of how business (and the world?) works globally. For example, on the day we left, Prime Minster Cameron gave a speech to selected students at a prestigious University in Beijing extolling the virtues of a more open society for China. It was the first thing I read about when we arrived back in Hong Kong. Needless to say our Chinese business partners would never hear of it since it wasn’t reported in the Party-controlled Chinese press. (GL - November 2010)
