George Post 6 - China Striving to Become What It Has Not Yet Become

“A smart American who lived in China for years puts it this way: "China is striving to become what it has not yet become”.

I came across this quote as I was surfing the web to find out what China is doing right. Since there has been so much criticism of the China government over Google, I wanted to see if I could balance my own viewpoint. Here are four things that the Chinese are doing right in my opinion. As you read this blog think of what we can learn from them.

Thinking Big - Growth is everywhere in China. The big cities are becoming international cities overnight and hundreds of former villages are becoming medium size cities. China may not be doing everything correctly but they are moving forward. The government doesn’t stop progress they encourage and support it. New super highways are built in two years – concept to cars. In the U.S. planning, studies and permitting would take that long or longer.

According to James McGregor, former chairman of the American Chamber of Commerce in China: “China is setting goals, making plans and focusing on moving the country ahead as a nation.". "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'”?

Education – Education is an obsession in China. This may not be perfect…but it sure beats the opposite. This focus has turned a backwards country around. China’s literacy rate is now better than the U.S; 90% versus 86%. Math and science are seen as important subjects and apples to apples their students are ahead of ours. That’s because the kids are working harder. Homework averages 20 hours per week. As Jim R pointed out the family is anxious to make the sacrifices necessary so that the kids have what they need to be successful.

Nick Reilly, a top executive at General Motors in Shanghai says “Whether its line workers or engineers, we're finding the candlepower of our employees here as good as or better than anywhere in the world. It all starts with the emphasis families put on the importance of education. That puts pressure on the government to deliver a decent system."

Caring For Parents - In China, it's a great shame to put a parent into a nursing home. Historically the social contract has been straightforward for centuries: parents raise children; then the children care for the parents as they reach their dotage. These considerations are woven into the decision making for younger Chinese for example, when they are buying a new apartment they buy bigger to have a room for Mom and Dad. In China, senior-care costs are, for the most part, borne by families. For middle-class and rich Chinese, these costs are a manageable responsibility. 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 the society

Personal Savings - In China, the household-savings rate exceeds 20%. China is a society that has valued personal financial responsibility 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”.
Savings helps China continue to grow with the funds contributing to the capital requirement of a growing economy. Savings turn into Investments which impacts productivity gains, innovation and job growth. Personal savings forms the foundation a good economy.

The Chinese are motivated to achieve, they have left the farms and they don’t intend to go back, not the next generation or the generation after that. They are willing to sacrifice today so that their descendants can benefit tomorrow. “China is striving to become what it has not yet become”.