China: World's Largest Startup
Those that stuck around for today's keynote were treated to a fascinating glimpse in to the real world of business and life in China. James McGregor, who has spent over twenty years as a journalist (Wall Street Journal China Bureau Chief) and businessperson there, reminded me what a pleasure it is to listen to a true expert.
In his recent book "One Billion Customers : Lessons from the Front Lines of Doing Business in China" McGregor relates the stories of his experiences and over 300 interviews with Chinese from all walks of life. The title of his book was taken from a book written in 1937 by Carl Crow called "400 Million Customers" about Crow's experience starting the first western ad agency in Shanghai.
According to McGregor, there is a lot we can learn about China and it's culture by understanding it's pre-communist history. "China is all about business--I think of it as the worlds largest startup". There is a tradition and culture of commerce there that is much more fundamental to Chinese life than most westerners appreciate.
The phrase used to wish someone a happy new year in China translates to "congratulations on getting rich". "Does that sound like a population that is ready for communism?" asks McGregor. But, while he views the emergence of communism as an "accident of history" it would be wrong to think his view of Chinese government is completely negative or in any way without nuance. "The communist party is probably the best run corporation in China." He describes the party as (like many US corporations) very democratic at the top, and completely autocratic at the bottom.
What about the censorship issues in China that we see so much about in US media? According to McGregor the government is trying to walk the line between full control, and the necessity for a certain amount of informational freedom. All media in China is answerable to the Communist Propaganda Department but the boundaries are constantly being pushed. And, the Internet is playing a big role in pushing those boundaries. For US companies he says "they need to follow the laws of China" it is their country and they establish the rules.
But, he mentioned Google as a company that is doing things the right way. They comply with the Chinese censorship rules, but actually label missing content in a search results page with something akin to a "due to government regulations, certain results not shown". Foreign companies should insist that the government follow it's own rules. If you are asked to censor, get it in writing. "Yahoo caved too quickly" he says.
When asked about China's environmental problems, McGregor agreed that the country is in very bad shape, "But, they know it". To paraphrase, he said that China has gone through over 100 years of equivalent US history, in just the past 20. The standard of living has improved dramatically in that country. They are driven to achieve prosperity, they will, and with it will come environmental improvements.
Should we be scared of China in the USA? No, says McGregor. They will be consumed with their own internal problems [like their environment] for a long time. "My opinion is that we should be afraid of America. We need to figure out what we are doing here."
If you have any interest in China, it's culture, it's growth, and it's increasing importance in the world, I would highly recommend you check out the podcast of this presentation on the AdTech site. The final comment from of the session came from an audience member born in Shanghai, and raised in Hong Kong. "Many speakers go to China once and come back to speak about it, your presentation was much more accurate."
I can't speak to the accuracy, but I will thank AdTech for rewarding us last-day die-hards with an excellent keynote.
