Reaction versus Anticipation

After 8 years here, I continue to be intrigued and amazed by China's reaction to events rather than anticipation of events. This happens at all levels of society, from the government leaders to workmen. Even if by anticipating any given problem the amount of work would obviously be less, the preferred and default solution is to do nothing until the problem has arisen.

There are a number of examples of this which come to mind:
• China's resolution to the housing bubble, where instead of carefully considered economic policies over a number of years there has been multiple large boots applied to the neck of the problem over the last few weeks
• China's stance on Iran and North Korea (why worry about what MIGHT happen when it hasn't?)
• China's driving test. A key part of the test is to measure your physical strength and your reaction times. This is to be sure that you are fully qualified to react, rather than to anticipate. (I don't recall being asked about the shortest stopping distances from any given speed?)
• Building roads. I drove to Suzhou on Saturday and 15 km stretch of the 5 year old A30 motorway between Sonjiang and Qingpu was almost undrivable due to subsidance. A crew of workman were digging up one 10 metre stretch in an effort to smooth one lumpy bit.

I have a theory about all this. It comes down to the controlling culture instilled by Mao which continues to be present in government, state-owned business and all state-owned services such as education. Everyone is told what to do, with little or no opportunity (nor encouragement) to find a better way. Consequently, with nothing to gain from suggesting that something could be improved, why improve it?

This, I believe, is also why China has become a nation that copies rather than creates. Gone is the creative spark that brought us gunpowder, paper, the compass and the clock. And until China changes the way that its children are taught and finally has the courage to empower its People, nothing will change.

David King
Shanghai, 17th May 2010

IKEA: no kitchen knives for 6 months!

So, there I was in IKEA this afternoon ready to invest in a fine new set of kitchen knives. But no! The Shanghai Public Security Bureau has decreed that no knives should be sold for the duration of the Shanghai EXPO.

Clearly, Shanghai's undesirables wishing to obtain a kitchen knife for reasons other than vegetable chopping will have to revert to one they may already have in their collection, rather than select from the latest Swedish designs.

Better City, Better Life...unless you want to prepare fresh ingredients for cooking!

David King
Shanghai, 3rd May 2010

Yellow: The New White?

Throughout my childhood, youth and adulthood in the UK, white goods were always white. And white they seemed to stay. But since moving to China in 2002 I have noticed that every white appliance I have purchased has quickly turned an ugly shade of yellow.

When shopping last weekend for a new fridge, I was surprised to hear that it seems to be an accepted reality in China that ALL white goods ALWAYS turn yellow. Indeed, my Chinese wife was genuinely surprised when I told her that in some countries White Goods actually stay White!

I find it sad that the Chinese have for so long been at the receiving end of poor quality standards that they now have this as an acceptable benchmark. If the American and Korean manufacturers of the yellow White Goods that reside in my China home were to ship this sort of rubbish to the UK they would very quickly have a major recall on their hands. But not in China...and that is a real shame.

David King
Shanghai, 2nd May 2010

A Smart Buy? Or a Slippery Slope

I was intrigued this month to receive a leaflet in the post that reminded me of Littlewoods catalogues in the UK back in the 1970’s. It contained pictures of the very latest computers, cameras and mobile phones, but at amazingly affordable prices. How was this possible? Simply pay 12 equal instalments and receive the latest iPod, camera, smart phone or computer today, without having to save up first! This in China - a country which has boasted one of the highest savings rates in the world, and where the notion of debt for any purchase other than a house is still viewed with disdain by most people over the age of 30.

What does this tell us about today’s China? Actually it reveals more than you might think:

1. SELF CONFIDENCE. Never before has there been a generation of Chinese more certain of their destiny. There is a universal belief that China will regain it’s rightful place as the most powerful and important country on the planet – a position it has previously held for thousands of years (apart from the unfortunate hiccup of the last three hundred years).

2. TODAY, NOT TOMORROW. In the eight years that I have lived and worked as a marketeer in China it has all been about tomorrow, not today (and certainly never about yesterday). Well, it seems tomorrow has finally come with China no longer willing to wait for the trappings of success.

3. DISPOSABLE VALUES. The traditions and values that have helped make the People’s Republic of China what it was and is are disposable when they do not suit the aspirations of these same People.

And who is behind such a polar shift in Chinese values? None other than the Bank of China, who proudly head up their supporting website with a special “Smart Buy” logo (http://www.boc.cn/sdbapp/cmg/ )

So what this REALLY tells us about China is that these changes are permanent. This is a sea change. The many generations of cautious, prudent savers are being replaced by a new generation of spoilt, flashy debtors. And this is the same generation that already has unrealistic expectations of life resulting from the “Little Emperor” effect of the one child policy, where 6 adults dote and provide for every whim of every child. These young adults with an unbridled appetite for gain with no pain will no doubt lap up this new way to buy the latest “must have” gadget, ensuring the success of this and the inevitable clone credit schemes which the other banks (and switched on retailers?) are already crafting/launching.

Congratulations China. You have started down the same slippery slope that got the rest of the world into the mess we are still clearing up. Until now, I really did believe that China might just tread a new path.

David King
Shanghai, 25th April 2010