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The U.S. Business Skill That China Doesn't Have

May 18th, 2009 @ 8:51 am

15 Comments

Categories: Academics, Group Dynamics, Managment, Research, Schools

Tags: U.S., China, Workforce Management, Government, Business Structures, Human Resources, Finance, Stacy Blackman

China has given the U.S. a lot over the past few years: loans, computer parts and one of the NBA’s most elite players. Yet China is looking to the U.S. and the rest of the West for something it desperately needs: people with critical thinking skills.

In a recent article in the Atlanta Journal-Constitution, Randy Pollock wrote about his experiences teaching MBA classes in China. By sharply focusing its studies on math and science, Pollock concludes that China has created a problem:

Highways, dams, bridges and airports have been built, every conceivable product manufactured and sold, but so few sophisticated marketing and management minds have been cultivated that it will be a long time before most people in the world can name a Chinese brand.

China’s need for Western talent

In order to rectify this problem, China is becoming more open to working with Western forces. Pollock names Chinese partnerships with schools such as the University of Southern California, Johns Hopkins, Yale and the Massachusetts Institute of Technology, as well as an initiative called “The Thousand Talent Scheme” courting top foreign-trained scientists to work for the country.

As more and more U.S. businesses forge relationships with China, it’s a good idea to keep in mind some cultural differences that may affect business relations. Pollock wrote of several distinctions he observed while teaching Chinese MBA students, many who were successful middle managers, analysts and marketers from multi-national companies and government institutions:

  • Innovating vs. copying. In the U.S., we prize bold, original ideas. The Chinese put more emphasis on copying strategies that have already proven effective.
  • Analyzing vs. summarizing. Whereas the ability to interpret and critique other’s ideas is a valuable skill in the U.S., the capacity to memorize key facts is more important in China.
  • Relationship between politics and business. We have the freedom in the U.S. to talk all we want about how the government affects business. In China, this topic is off limits.

In order to boost the country’s critical thinking skills, Pollock would like to see China start with its young minds: “The Chinese don’t need expensive free-agent scientists,” he writes. “They need … about 10 million liberal arts professors.”

Flags image courtesy of Flickr user U.S. Department of State, CC 2.0

 
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  •  
    1

    RHashim

    05/19/09 | Report as spam

    RE: The U.S. Business Skill That China Doesn't Have

    I think this behavior can be found in most Asian class!

  •  
    2

    lihua.gao@...

    05/19/09 | Report as spam

    RE: The U.S. Business Skill That China Doesn't Have

    this is a result of the social political system under which being liberal is not part of the bring-up.

  •  
    3

    mensoelrey

    05/19/09 | Report as spam

    RE: The U.S. Business Skill That China Doesn't Have

    lihua is right. The Chinese government does not want a lot of critical thinking because people would question the government's ever more tenuous grip on power. You're right either way--China would benefit enormously from more critical thinking ability.

  •  
    4

    DataArchitect_MI

    05/20/09 | Report as spam

    RE: The U.S. Business Skill That China Doesn't Have

    I would like to point ou

    1. Innovating vs. copying: Japan was also initially accused of copying. So was Microsoft (off Apple) and Compaq (off IBM). Copying is not necessarily bad as long as you make it better or cheaper.

    2. Analyzing vs. summarizing: This is the rote vs. logic discussion. I agree that there is too much rote learning in the East but at the same time there is little learning of the facts in the West. Knowledge of history is virtually gone in the US. How can you analyze if you don't know the facts?

    3. Relationship between politics and business: I agree totally that there has to be more freedom in China. But on the otherhand, even people in censored countries get to know what's really going on. Our Corporate media feeds us bull and we buy it. There really is no stopping of information but it can be diverted.

  •  
    5

    metal_might

    05/20/09 | Report as spam

    RE: The U.S. Business Skill That China Doesn't Have

    There is more deeper meaning from this article than what meets the eye:
    US is a FREE country in every sense of the word. Right from its formation, it was built by minds that thought FREELY.
    Chinese "kingdom" (most Asian) was formed based on the "proven" style of tradition and "handing-over of legacy" of values etc.
    In the East, people are "taught" to do things the way the "teachers" did. In the West, Children grow up on their own.
    WOW, what a thought provoking article by Stacy!

  •  
    6

    metal_might

    05/20/09 | Report as spam

    RE: The U.S. Business Skill That China Doesn't Have

    There is more deeper meaning from this article than what meets the eye:
    US is a FREE country in every sense of the word. Right from its formation, it was built by minds that thought FREELY.
    Chinese "kingdom" (most Asian) was formed based on the "proven" style of tradition and "handing-over of legacy" of values etc.
    In the East, people are "taught" to do things the way the "teachers" did. In the West, Children grow up on their own.
    WOW, what a thought provoking article by Stacy!
    About MS copying Apple, Apple is American, first. Copying another may be Chinese style, but Americans have copied that copying style as well.

  •  
    7

    WORLDWIDESHARES

    05/20/09 | Report as spam

    RE: The U.S. Business Skill That China Doesn't Have

    CHINA, ready to lead...?

    I have spent the last month travelling around ASIA to try to find an answer to this question. Just now, when we are in the middle of a global crisis, with almost all foundations of economy in danger, I wanted to answer myself about the role that each country is going to take to lead the world out of this recession period.

    I travelled to Hong Kong, Shanghai, Taipei and Seoul. I spent a certain time reading the local press, involving myself with their domestic issues, and watching and asking about the role of Hong Kong, China, Taiwan and South Korea in the future recovery process.

    China latests are focused on the opening of Shanghai Stock exchange listings to foreign companies, but still with the limitation of doing it only with yuan currency, and still being not convertible.
    Hong Kong, who belongs to China, but with a S.A.R. ( special administrative regime ) is deciding now its own future, since Shanghai and itself must now compete to become the financial centre of the "new" China.

    Taipei celebrates that for the first time in six decades, a mainland company, China Mobile is due to acquire a 20% stake in a local communications carrier, breaking with this step, the so long disputes among these 2 asian states. Nevertheless, some old nationalists from Taiwan see into this movement from mainland, the challenge of a new adhesion process, similar to the one carried with Hong Kong.

    And finally, Seoul is focused on recovery the way they best know. That is, working tough and smart to become again what two years ago it really was... an still unknown, but highly effective and productive capitalist economy.

    So, the answer to my question was not easy, but I think I can clarify some things that really matters to a global economy world.

    China strategy along the years has been to manufacture goods at a low work labour cost, and sell them mainly to the US and Europe. Now, with 1,3 billion people living in the mainland, they realise that their real market may be inside, may be domestic. But to go along with this change in the way exports are handled, is not an easy task... but you can see already some interesting movements, such as the recently signed collaboration with India, to get a chunk into the OUTSOURCING market, as well as, the already mentioned opening of Shanghai Stock index to foreign companies.
    So the path seems to be built ahead, but still with critical issues such as if yuan will become the reference currency, if it will be flexible against other international currencies, or even maybe, if China and its allies decide to launch a takeover bid against dollar and euro world supremacy.

    My opinion resides on the idea that in a not so long future, we will start looking at Shanghai index closings the same way we do it with Wall Street now.

    If China converges into a more open performance, USA supremacy as the first economy in the world may be in danger.

    China will try to joint Hong Kong current power and international presence, with Shanghai newest challenges. At the same time, it will break old and stupid disputes with Taiwan and even South Korea, to walk along a new asian world, capable of assuming the role of leading it.

    India will have to decide if it goes alone in this new era, with its 1,1 billion people and therefore, their impressive economic and social potential... or decides to take part with the US or with CHINA. That decision is going to become critical for India in the very near future.

    But, for sure, we do not expect China president to become a worldwide "prime time TV star" the same way the US does with its presidents. We will never know if China president has bought a dog called "Bob" to his daughters... we even won?t know if he has kids at home,... or if his wife is dating another men ...

    We must expect a new role, focused on discretion, hard work, no discussions, but highly effective and consumer oriented strategies.

    If the US unveils its secret CIA files, ... China will continue with its secrecy in domestic critical matters.
    If the US continues fighting muslims in Afghanistan, China will stretch its ties in a peaceful way with its long time disputed neighbors, trying to consolidate its presence in Asia.
    If the US continues with prime time interviews, China will present only specific topics of its politicians activities.

    This does not mean OPEN economies vs CLOSED ones, but it means, to be focused on real issues and leave marketing or branding for others.




    Jose Luis Revilla Escudero
    President
    WW Shares, Inc
    www.worldwideshares.blogspot.com

  •  
    8

    sgiles3

    05/20/09 | Report as spam

    RE: The U.S. Business Skill That China Doesn't Have

    Thanks Jose Luis Revilla Escudero!! Your insight is greatly appreciated.

  •  
    9

    Stacy Blackman

    05/20/09 | Report as spam

    RE: The U.S. Business Skill That China Doesn't Have

    @WORLDWIDESHARES: thanks for the great insights - lots to mull over in your post!

  •  
    10

    Lynn110

    05/20/09 | Report as spam

    RE: The U.S. Business Skill That China Doesn't Have

    Liberal arts professors? no.
    Liberty. yes.
    China may become the leading capitalist nation in the next 10
    years, a position currently being vacated by the USA. The
    leadership in China may be Communist, but they have shown
    a remarkable flexibility to bootstrap China into the 21st
    century.

  •  
    11

    kevin.wolford

    05/21/09 | Report as spam

    RE: The U.S. Business Skill That China Doesn't Have

    I hate to break the news but the science/technical people can pickup the business part fairly easily. But not the other way around. If your business has anything to do with technology it's the people who understand the basis for the technology who will, eventually, make the best decisions.

    I would totally agree that right now the U.S. has a business skills and attitude advantage (ESPECIALLY in quality control) however with all the Chinese students at U.S. schools I don't see that lasting more than 5-10 years at most.

    I also see an overwhelming advantage to China in it's education system. They go to school 250 days a year and we do 200 at most. After 5 years they have gone to school one more whole year.

    Chinese political leaders aren't charming-so what? They look long term and have resource/financial/energy deals for the next 5-10 years that will put us at a huge disadvantage.

    I think the U.S. has some huge advantages now over China but I don't believe they will last unless we change our educational system/financial/political system for a more long term focus. China has a 5 to one population advantage.

    Finally--Chinese brand? Ever heard of a Thinkpad laptop? It's already happening but people just don't know it.

  •  
    12

    RocketmanFive

    05/21/09 | Report as spam

    RE: The U.S. Business Skill That China Doesn't Have

    Exactly the same was said of Japan from the 1950's (the Tin Toy era), but look how Japanese engineering has moved from copying to innovation as their economy grew and afforded them to exercise their greater skills. Sixty years on and Ford, GM and Chrysler are now looking at Japanese cars to copy from.

    Don't underestimate Chinese ingenuity - they have been coming up with 'firsts' for thousands of years.

  •  
    13

    Econ 1

    05/21/09 | Report as spam

    RE: The U.S. Business Skill That China Doesn't Have

    I was doing quite a bit of business in Asia 15+ years ago. It was evident then, that anyone considering doing any serious business in the future, had better learn to converse in chinese.

    The current financial downturns will only accelerate the ongoing demise of U.S. domination.

    Any suggestion that the PRC can only succeed if they gain liberal educations from the likes of Harvard and Yale is assinine. Domestically we have sunk our own ship by the likes of the same.

    And so-on and so-on.............

    Neehow!



  •  
    14

    Humila

    05/22/09 | Report as spam

    RE: The U.S. Business Skill That China Doesn't Have

    wow, i learn lot out of this.
    I hate china government block the access to youtube. In China our information all are censored, they dont like we have too much critical thinking, they like teaching us "their way".

  •  
    15

    gmoeller1

    05/22/09 | Report as spam

    RE: The U.S. Business Skill That China Doesn't Have

    It's great for the West to have a gentler economic and status landing based on our strengths being in short supply and high demand elsewhere, but we had better not become complacent about it.

    Chinese culture will continue to self-adjust. The current state is far from static; already it is hugely different from what it was just 20 years ago. Further movement is guaranteed as emergent opportunities are exploited and evolving internal and external expectations must be satisfied.

    China is ambitious and focused. It will change to meet the challenges of global leadership. And, like every other dominant nation in human history, it will struggle to cope with the sacrifices and losses that such success always brings.

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