Saturday, November 20, 2010

Reports of my death have been greatly exaggerated

Every morning when I wake up, I attempt to look at the skyline through the smog, wipe my eyes, gaze at the smog again and then sit down to read the NY Times, WSJ, China People’s Daily and Cleveland Plain Dealer. The theme is the same...America’s reign is over and China is taking over the world.

The articles breathlessly describe items such as the high-speed trains sprouting up, the eye-popping amount of money spend on the World Expo and 15-story buildings being constructed in 6 days.

I understand why the China People’s Daily is so optimistic about China, after all, it is the mouthpiece of the Communist Party; it has to shuffle between journalism and the official party line. However, I’m always a bit surprised and off-put to see how pessimistic American papers are about America.

Whether it’s reporting a story or giving a first-person perspective on a visit to China, Americans are doughy-eyed when they talk about China. Don’t get me wrong, China is amazing. It’s evident to anyone that the country has a blank slate to work with and plenty of cash to accomplish its goals. The level of wealth creation over the past 30 years is incredible and the country has done more to change the world over this time than any other nation.

It’s hard not to think China is going to take over the world after you visit cities like Shanghai. However, as a tourist, you only see the best. It’s like basing your entire opinion of America on iconic locations such as Times Square. Sure, part of America look like this….


But other parts look like this (Detroit)


Westerners might think Shanghai is a Chinese city, but it’s really a faux-international city. Although I’ve lived in China for less than a year, I’ve had a chance to see real China. Due to the nature of my job, I travel quite a bit around the country and see tier-II and –III cities/towns. Also, I live in Wuhan, which is an authentic Chinese city. Westerners might be appalled at the pollution and traffic, but for the most part, Wuhan is reflective of how many urban Chinese live. This is when you see the problems that China truly faces...corruption, pollution and unemployment.

A great example of corruption in China can be summed up in a catchphrase that has swept through the country over the last month: “My dad is Li Gang”

A policy deputy’s son was drunk and ran his car into two girls. He killed one girl and severely injured the other….when security tried to stop him, he screamed “My dad is Li Gang” and tried to away. The CCCP tried to cover things up and told the media not to report the story but people started talking about it on the web and the government was unable to suppress the news. The kid hasn’t been charged with a crime and the victim’s family took a $70,000 payout. People in the country are outraged that a person in power could get away with this sort of crime. The law seems to be subjectively applied when it is regarding someone in power or with money. People have also pointed out a great question…where does a humble policy deputy in China, who only makes a few thousand dollars a year, get 70K in cash overnight?

I could talk about pollution in China but I think this picture sums it up….


I could go on and on about the problems that face China. The aging population, lack of a social safety net, men not being able to find women to marry…the list goes on. The point is to show that China’s rise to the top isn’t inevitable or guaranteed. China has accomplished a lot and I truly believe General Secretary Hu Jintao is a good leader that has the best interest of China at heart. However, the country has plenty of problems and we don’t know how the story will turn out. These aren’t secrets that people in China are afraid to talk about…in fact, you hear about it everyday. The thing that irks me is that the foreign media rarely picks up on this stuff; they just cherry pick all of China’s accomplishments.

With the exception of Chinese nationalists, I think Americans are more optimistic about China’s future than the Chinese are. Every time I talk to someone here about the progress the country is making, they always try to tone things down and start pointing out all the problems the country has and what improvements can be made.

While there is no doubt the Chinese would love to be #1, they are also in awe and aspire to have some of the things that make America as great as it is. We have different systems but the end goal is to the same: being judged on your merits and freedom of expression.

Let’s use my family as an example. I can, with a straight face, say that my family is a perfect example of the American Dream. We came to America with nothing; my dad’s friends helped us out until we got settled and my parents worked hard and sacrificed a lot to get to where they are today. Do you think this could happen in China? No way. A poor, ethnic family trying to start fresh getting a fair chance to prove themselves? Yeah right…that’s such an absurd proposition that it’s comical.

In China, I’m only respected because I have money. Before my company sent me to Wuhan, they sent another guy for a few months. He was a normal employee at our Company and people were indifferent to him. No one cared about his input. How am I faring? People listen to me. Does the fact that I drive a BMW and wear a fancy watch make a difference? Absolutely.

But take away the car and apartment my Company has given me and I become a second-class citizen regardless of what I bring to the table. That’s the thing the Chinese envy about the American way. In China, money and social status gets you a seat at the table; in America, money is the express route to the table but hard work and intelligence can get you there as well.

Our other big selling point is the ability to freely express ourselves. While I’m not going to jump into an argument about the proper level of government controls, I do feel there is a correlation between the freedom of expression and higher education.

Sure our primary and secondary schools are falling apart but we’re still the global hub for post-graduate education. No one in the world can dispute that as a whole, America is the best place in the world for advanced education. Americans are taught to think and to question the system; Chinese and Indian schools don’t do this. I’ve always joked that if I had to hire a team, I’d hire an American-educated manager and Indian/Chinese-educated worker bees. People in American schools are taught how to be leaders; people in Chinese/Indian schools are taught theories and can’t figure out how to apply logic to everyday situations.

Our ingenuity is the reason why the country has prospered as much as it has.

I realize there are plenty of injustices in America and everyone can think of several examples off the top of their head to demonstrate it. I’m not naïve; I know we’re not perfect. I get angry and frustrated just like everyone else. However, we have to also realize despite all our problems, our opportunities are unparalleled.

People say America is on a downward trajectory and cite studies showing immigrants going back to their home countries. This was bound to happen, there is more prosperity than ever in the world. People in China and India have opportunities that were unimaginable years ago. Instead of acting like this is a big blow; we should welcome the increased competition. If you truly believe in what has made America great, capitalism, you must acknowledge that more competition will increase innovation and make society better.

While our reign at the top is slowly being chipped away, the death of America is greatly exaggerated. Globalization in the 21st century has made the world a much more competitive place. Instead of raising the bar, Americans got comfortable, lost our way and squandered opportunities. Are most Americans truly aware of the painful times ahead? No. Are most Americans out of touch with reality? Definitely. We're down but we're not out.

There is no doubt that the gap between countries will continue to close and we’ll return to a multi-polar world. The point now isn’t to concede that Chinese domination is inevitable and partake in all the doom & gloom that the media reports. Despite losing focus, we are still in a great position. America is still light years ahead of any other country in the world. People are still playing catch up and hold us as the benchmark they aspire to be. If we stop doubting ourselves, continue to have an open immigration policy, increase investments public R&D and make the hard choices now, there is no reason to doubt our continuing success.

Pax Americana.

6 comments:

  1. i think i smell another media submission. think about it. good points, well written. your blog topic this time was well-timed...i just started reading The Party. enjoying it so far...but does the book not have chapters? it just keeps going and going!

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  2. Yeah, it's a great book...obviously banned in China. I thought it had chapters, maybe just very long ones?

    I was thinking of making this into an article, tightening it up and supplementing the arguments...but I don't know whom I'd submit it to.

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  3. hmm...nytimes oped? or new yorker?

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  4. You clearly hold my skills in high regards. Why not aim for the moon and try for Foreign Affairs while I'm at it? :)

    I don't want people to read this blog and think America can rest, we're #1 but that doesn't mean we can relax. Andy Grove, CEO of Intel, said it best..."only the paranoid survive"

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  5. Give it an economic hue... Which it largely already has... And submit it to seekingalpha.com ... Or Ritholtz.com/blog...

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  6. "In China, money and social status gets you a seat at the table; in America, money is the express route to the table but hard work and intelligence can get you there as well."

    I was confused and thought you were talking about legacies versus people who get in due to merit.

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