Silk Road International Blog

I first came to China in 1995 and spent a year in Chongqing (then in Sichuan Province) teaching English. It was probably the most interesting and difficult year in my life. I taught at a little college of about 3000 students. I’ve since been in China (and Taiwan) for most all of the last 12 years and have managed to keep in touch with only 3 students from 900 that were in my classes that year. I also read this book while traveling through Zhejiang and Jiangsu province visiting factories this past week.

With that background you can see that I was a sucker for Peter Hessler’s book “River Town.” Set in a small college just down the river from Chongqing in 1997, Peter describes exactly what I had felt, seen and recorded in my journal and on film while I was in Chongqing. The sights, the struggles, the successes, the friends, the misunderstandings, the smells, the food, the politics, the weather—he nailed it. I laughed, I cried, I remembered. I loved it. Perter Hessler not only knows about China, he knows how to write.

Now this isn’t a book about China today or a book about how great China will become in the future. It’s about living in a glass box—that’s what China was for foreigners as recently as 10 years ago. If you are doing business in the coastal cities this book will bear little resemblance to the China that you know today. But if you want to know what it was like “back in the day” this is the book for you.

This is a very romantic look at 1997 China and my experience of talking with people about China is that they typically can’t relate to the past while looking at the current development. I think that most people who read this book will probably think one of two things: either that China is still like this (people that have never been here) or that he’s off his rocker (people that only visit Shenzhen and Shanghai in the last few years). In that light, my only issue with Peter’s book is that he doesn’t balance what he experienced then with what he knows now—but maybe that wasn’t his point.

Read this book if you want to know what it was really like to experience China before it was used to the West. Great job, Peter. Thanks.

Tags: Book Reviews, Culture by david
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There were a couple of obvious differences from China that I noticed while in Taiwan this past week. Nothing major, but different enough that I consciously recognized that even though everything was in Mandarin I was not in Kansas any more, Toto.

First, I was sad to realize that Taiwan wasn’t as nice as I remembered it from when I lived here almost a decade ago. Taipei and Taichung look pretty much like any other Asian cities that were in their heyday 15 years ago. I lived in Taiwan 7 years ago and it’s still pretty much the same—not like China where every 6 months and you’ve got a completely new city!

The coolest new thing in Taiwan was the high speed train that now zips from Taipei to Kaoxiong. What once was a 6 hour drive is now an hour and 40 minute train ride. Taichung is now a suburb of Taipei-only an hour away by train. This train was fantastic.

Second, the lack of over abundant labor is readily apparent almost everywhere you go—in China receptionists can be beauty contestants; problems are solved by adding more man hours to the equation; and garbage is collect by an army of little ladies with their own carts and brooms. In Taiwan, the staff seem to be competent in their jobs first—better English, service with a smile and noticeably more experience. Production issue solutions are calculated decisions and typically require an adjustment to the technology rather than an additional night-shift. And the garbage trucks…if you’re not been to Taiwan, you don’t know what you’re missing. I’ll give you a hint: Mozart.

Third, most people I worked with in Taiwan are pretty much resigned to the overwhelming sucking sound to the West that is China. Seven years ago, there was still fight in the Taiwanese. I was struck by the resignation in almost everyone I talked with this time. A decade of lost jobs and capital has really taken its toll on the spirit of the Taiwanese. The recent local political missteps seem to have also depressed a large % of the Taiwanese.

Fourth, I didn’t have an argument in 3 days. Not one. No one argued about QC standards or price. While a French friend railed on Bush, no one criticized US foreign policy—it probably helped that we just concluded a huge new missile deal. And on the streets, you won’t believe this, but people actually waited in lines-yes, they exist in Asia-be still my beating heart.

Fifth, International standards were indeed the default standard. Quality of products, levels of QC, knowledge of foreign expectations seemed to be much more clearly understood in Taiwan. I didn’t have to explain why our QC standards were so high—the factory managers understood and clearly explained their QC and production processes. Not a single factory had an ISO 9001 banner hanging up.

Except for the smell of the 1,000 year old eggs in the 7-11’s it was a breath of fresh air. The attitudes of the people in general were different—polite, service oriented, honest. Maybe my trip was too short. Maybe I’m jaded by China. Maybe the Taiwan prices will bring me crashing back to earth. But all in all, I have to say it was nice to be back in Taiwan.

Tags: Business, Culture by david
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That’s it! I’ve had it. I’m so tired of reading books about how the US will soon become a second rate country (if it’s not already) and how this is the new Chinese Century. Give it a rest! We’ve heard you all—over and over again. Skulls are sufficiently bludgeoned already. We believe, we believe—isn’t that what we’re supposed to say in this new PC world?

The latest addition to this hullabaloo was Bill Gates’ Editorial in the WP last week. Now, you can’t fault anyone that donates billions to charity, and I agree with his premise—the US must invest in education and take an active interest in political support to market systems that will improve the US economy/competitiveness in the future. I just want people to start talking about solutions rather keep reminding me that the sky is falling.

So to this end, I must disagree with his closing comments. He, like most authors who write about the new Chinese century fault the US government for not taking appropriate and timely action to stop the decline of the US educational system. He states that the problem is “political will.” Last time I checked it was still a government by, for and of the people. Blaming politicians is simplistic and self serving—it also gives individuals an excuse, a way out, a scapegoat.

Sure the government has serious issues. Certainly there are major “gaffes” in the creation of US foreign policy. But the reality is most Americans either don’t know or don’t care enough to even notice what the government does outside of Iraq—and how many even know the difference between The Republic of China and The People’s Republic of China?! This isn’t the fault of the educational system. Any political agenda with enough grass roots support (i.e. individuals doing something) get’s put into public school curriculums. Further, anyone that went to college or has a job knows that the economic reality of China and its increasing impact on the US economy and even individual jobs.

The real problem is apathy. As Americans, we are fat and comfortable. The welfare state and trade deficit are skyrocketing. College graduation levels for American citizens are declining and when compared with just about anywhere else in the world the number of Americans who speak a second or third language is pathetic.

Unfortunately, the editorial in the WP does a serious disservice to Bill Gates’ charitable actions and fuels the fires of “it’s the government’s fault” and “it’s the government’s responsibility to fix it.”

The solution is not government, it’s individuals—people and companies that both know enough and care enough to do something that embraces rather than runs from the future (of Chindia). The best international relations are created by people and though open engagement between businesses and governments. Think this is simplistic? Then ask yourself: Why won’t China and the US go to war? In part because there are anally billion$ and billion$ of reasons to not—it’s simply not financially worth it. Historically wars do not happen between two countries that are completely financially dependent on each other. MFN status for China was pushed though by big business over all the political objections to Human Rights and whatnot.

So if it’s an individual problem, what do individuals do?

First, they take care of themselves and stop blaming others. If this is really the Chinese Century do you or your children speak Mandarin? You don’t’ need to go to China to do this either; there are so many online materials and schools that offer resources now that only the laziest person couldn’t get started on their own.

Second, how about other professional skills? Computers, science, math, advanced technical skills? If you don’t do anything to improve your future, why should anyone else. Are you enrolled in continuing education? My father was an MD and despite being recognized as one of the top in his profession and delivering more than 15,000 babies in his career, he was annually taking classes on new procedures up until the time he retired. If continuing Ed isn’t in your career plan, it needs to be added ASAP.

Third, whatever you do get ready to deal with a new reality. From the end of WWII until the mid 80’s you could get a job with a single company, get your gold watch and retire with maybe one same-industry job change in a career. Then we realized that companies were not going to provide lifetime employment and that individuals would most likely change not only jobs but industries multiple times in the course of a career. Now, we are competing with highly motivated, highly skilled people via the internet and global travel who speak English (as well as two or three other languages), have US degrees or their equivalent and will work more hours for much much less money.

If college isn’t your thing, technical school or entrepreneurialism better be. Just about the only thing that can’t be done digitally are medical and physical services (food services, janitorial work, washing dishes, trash removal, etc.). It’s a small small world after all!

You’re probably saying—“yea, so what are you doing about it?!” I agree, it’s easy to be a critic, sure. But I’m not just talking out of my hat. The company I was working for out of grad school was sold and I was unemployed. I started out on my own working in Asia with no Chinese and a family to support. Since then my children studied Chinese and/or Thai. I personally learned Chinese after I graduated from college because I realized that China was the future—so I know you can do it on your own too. I live in China and run my own (registered) company here. And while I’m not Bill Gates I support charitable organizations in the US and China and believe that helping foreign companies and foreign businesspeople work out production issues in Asia is part of my contribution to the world.

Kudos to Bill Gate’s for using his wife’s forum to make a statement and using his billions to help those who really need it. Now if he would direct his passion and pen (keyboard) at creating opportunities for those still stumbling in the darkness of protectionism rather than blaming politicians we may see some change for the future.

Tags: Business by david
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I visited Taipei 101, the tallest building in the world, this last weekend on a business trip to Taiwan. Not only is it the tallest building, it has the tallest roof, the highest occupied floor and the fastest elevators–they went 60km an hour straight up. My ears popped at about the 75th floor. Wow.

Tall buildings are cool, for sure. You can argue about the meaning of having the “biggest one” if you want. I just liked the view from the top…And Bigtom Ice Cream on top floor lobby was pretty good too! No, I didn’t make the name up.

Anyway the coolest thing was this list of the top ten tallest buildings in the world. And guess what? I’ve been to 9 of them.

1. Taipei 101, Taiwan.
2. Petronas Towers, Malaysia (been to KL, but not the towers).
3. Sears Tower, Chicago.
4. Jin Mao Building, Hong Kong.
5. Two Int’l Finance Center, Hong Kong.
6. CITIC Plaza, Guangzhou.
7. Shun Hing Square, Shenzhen.
8. Empire State Building, New York.
9. Central Plaza, Hong Kong.
10. Bank of China, Hong Kong.

If you agree that Taiwan is part of China, then 13 of the world’s top 20 tallest buildings are in China. The remaining 7 are: Chicago (3) and then one each in New York, Malaysia, Dubai and North Korea–that’s right, North Korea. Either this means that all the world’s money and business has migrated to Asia and/or in Europe size really doesn’t matter.

Maybe not earth shatteringly important, but I thought it was pretty cool to know that I’ve got photos of myself at each one of the 9.

Tags: Culture by david
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