Chinese Openness and Intellectual Horsepower
Most days, China touches my business and family life. I reckon a lot more than USA does.
In recent weeks, my Chinese experiences and lessons have been most positive, and suggest a growing frankness and encouraging compliance with international norms. Straws in the wind maybe, but these elements form a picture:
- We flew the fine new China Southern Airlines to and from Europe – good quality trip and excellent value.
- A Chinese domain name regulator contacted us to seek our instructions in a matter of a party seeking to register Altiora in Chinese (cn, tw and hk) jurisdictions, assuring us that our prior rights held sway.
- My client companies are seeing significant improvement in quality, dependability and communication with their supply partners. (KiwiRail is not a client). However the protection of IP remains a fundamental concern.
In particular, I want to share with you some impressions from my attendance at the NZ China Business Leaders Forum. Wow! What intellect, wisdom, transparency and global perspective we heard! Of several statesmanlike speakers, my pick was Professor Cheng Siwei, a former ViceChairman of the Standing Committee of the National People’s Congress and a noted economist. His preparedness to critique his Government’s policy settings astonished me. From sound macroeconomic theoretical bases, he laid out a prescription for balanced economic and social progress. In summary, Prof Cheng’s Four Relationships: –
- Achieve consistent and incorrupt application of law.
- Balance Efficiency with Equality
- Strengthen Markets to counter the power of Government
- Balance Centralized and Decentralized power
Since China’s over-reliance upon exports and capital investment had not provided adequate sustainable growth in the last four years, his prescription for consumption-led growth for China was bold and comprehensive. To enable more discretionary spending via: –
- Being able to spend
- increased salaries o Increased productivity per capita
- Lower taxes
- Increased consumer credit
- Daring to spend
- Improved Social Security so that people trust the Government to care for them
- Wanting to spend
- Better products to stimulate demand
- Stronger service sector, marketing desirable services.
The young consumers of big international cities like Shanghai – earning, playing, borrowing and spending – are the early adopters who will power this second surge of Chinese growth. I am sure the responsibility sits lightly on them.
Meanwhile, China leads the Olympic medal table, with us not that far behind. Go Xinxilan!