Saturday, July 12, 2008

Impressions

China and India are always lumped together as if they are the same and in many ways they are. Both economies are experiencing tremendous growth. This is immediately apparent when landing and seeing the amount of cranes present in both countries. Yet they are also shockingly different in many ways.

For me the differences left the most impression. China is very modern, clean, and orderly. The infrastructure is tremendous, exceeding that of the United States. I saw this first hand with a thrilling ride on the Maglev. During one of the free days, I went to the planning museum in Shanghai and the city had a twenty year plan for just about everything in the city. This included a plan for the building of information infrastructure for improved internet. This is largely a function of the type of government China has. China has an authoritarian government which allows for it to get things done at any cost. It can create infrastructure like the Yangshi Deep Water Port even if it requires moving a few thousand people. Authoritarianism has allowed it to create many incentives for business and drive development at break neck speed.

India, on the other hand is a democracy and as such is developing much slower. Additionally, the democratic form of government causes much more chaos than in China. From the second we got off the plane we were shocked by the lack of organization in driving. There were no lanes and no order yet everyone was moving towards a destination. This was a metaphor for India as a whole. Everything in India seemed like it wouldn’t work on the surface but at the same time it seemed like it was being driven by an unseen force. Another major difference between the two countries was that China’s flaws seemed hidden, but India’s flaws were out in the open. We saw shanty towns in front of the huge sprawling call center campuses of western companies. The infrastructure was lacking and a good road was hard to find. All of the differences between the two countries seem to be related to the type of government they had. Democracy is a messy and lengthy process but it often provides better results due to the inclusion of the opinions of many. Authoritarianism on the other hand is a short process but it doesn’t necessarily create the best results for all parties involved.

There were very many similarities between the two countries even if they were not apparent on the surface. I think the biggest similarity was best described by quoting the vice president at Genpact. He described Indians as being more “hungry” than Americans. I think by this he meant determined to do anything possible to carve out a better place in the world for oneself. This spirit is the driving force behind change. These changes have led to much nationalism in both countries and this was very apparent in every company we visited. Though this was even more transparent in India where each company visit included an introduction to the country.

The company visits taught me two very important lessons about practicing business, the strength of networking and the power of hospitality. Both countries placed a high value on networking. Business is more about relationships in each country. At our first company visit to Lenovo, our host talked about Guanxi which is a Chinese system where relationships are extremely important and often consist of gifting and favors. This concept highlights the importance of the relationship in doing business in China. The amount of hospitality we received at every company was unparalleled and far exceeded any hospitality I have received in the US. As visitors we were truly treated as guests. This is just part of business in China and India and while doing business there I think one needs to keep these two concepts in mind. I think these are the two lessons I will take with me most into the future.

Along the same lines, I feel that the type of person that is most suited for doing business in these countries is first and foremost someone with patience. Relationships and hospitality take time to be effective. The next most important characteristic would be an ability to be flexible and adapt to change. Things are very exciting and unpredictable in a rapidly changing place and this can cause difficulty when attempting to stick to plans.

International business excites me. Mentally I think I am very prepared for any travel my future company may have me do. At the same time, physically it is very hard on my body. First, my body has to adjust to time change followed by a need to adjust to different foods. While I found most of the food abroad to be delicious, it wreaked havoc on my system. This was very distracting for me at the meetings and proved to be quite trying at times.

While the breathtaking sights I saw in both China and India are images that will stay with me for a long time to come, the lessons I learned about how business can be done will be just as lasting. International business is exciting and quite challenging. I will never look at the international economy the same way after seeing China and India. I have learned many things from this trip that I can take with me wherever I go as an individual and business person.