A trip to China’s commercial centers can be mesmerizing, especially the first time. Seeing massive cityscapes, seemingly endless housing construction, whirring high-speed trains and throngs of consumers can give new visitors a sense of inevitable growth — especially without the context the rest of the country provides.
It can also be disorienting from a business perspective, making it tough to figure out how companies might crack this vast, varied and fragmented market.
Luckily for three alumni of the Robinson College of Business at Georgia State University, context was an integral part of their experience during a Young Leaders trip led by the World Affairs Council of Atlanta last fall with the help of the university’s Confucius Institute.
Martin San Cristobal, who works with poultry and protein exporter AJC International, said he’d heard and read about a Chinese slowdown, a potential real estate bubble and inflated asset values, but he didn’t feel it — neither on the streets nor in the boardrooms of Chinese companies of various sizes, from Huawei, the telecom and technology giant, to iQiYi, a streaming content company which operates similar to Netflix in the U.S.
“I did not perceive anxiety at all in the companies we visited or the people we talked to. We heard some concerns about the growing cost of living and housing in the Shanghai area, which seems to be in line with major urban centers of the world, but nothing more than that,” the Argentina native told Global Atlanta.
Hicham Jaddoud, who just joined Intercontinental Hotels Group from the Marriott chain and is finishing up his doctorate in business and organizational behavior, also took a bullish approach to the China market after seeing and hearing how the economy is transitioning from a production to a services-led economy and improving its manufacturing base.
“Undoubtedly, China has several internal issues with human rights and shortage of energy and resources, but the consumption and production power of China will always allow the country to remain strong,” Mr. Jaddoud told Global Atlanta. “Furthermore, China has focused in the last decade on finding new markets for its mass production. China (the Walmart of the world) has flooded Africa and South Asia with its products.”
Alex Ciuca, who blogged about the group’s visit to the Suzhou Industrial Park on the trip, said he saw evidence that the growing pains of China’s transition to a services-led economy were taking their toll, with the manufacturing workforce becoming more scarce and more expensive in powerhouse coastal cities like Shanghai.
“Every city we visited had a dynamic vibe; people were working, innovating and looking forward to the future. I saw those as signs of an economy that is more likely to blossom than to falter,” Mr. Ciuca said.
He added that China seems to be waking up to the innovation potential of its population: A startup incubator in Suzhou gets 4,000-5,000 applications per year, and similar centers are springing up throughout the country.
“I think over the next few years they will continue to grow at high rates as the global economy improves, and we will see a more economically diverse China where there is a more significant high-skilled workforce while low skilled jobs move to inland China and their (poorer) neighboring countries,” said Mr. Ciuca, an investment operations associate at Drapac Capital Partners.
Upon their return from the trip, the alums have been seeking applications for the lessons they experienced. Overall, even though few are working directly with China on a daily basis, having the experience made them more well-rounded and informed about a key global market, which they all considered invaluable.
“For me it was a fantastic experience, one of the best overall experiences of my life, and I personally look forward to be more involved with the Chinese business and culture in the future,” Mr. San Cristobal said.
The council is aiming to replicate this experience annually for Young Leaders members who haven’t traveled to China before, though it’s unclear whether government funding will be available in 2017.
Read full responses from the three Robinson College alums below, or see other perspectives from the trip here: A Fresh Look at China: Young Leaders Recount First-Time Visit
Martin San Cristobal
Finance Manager, AJC International
Global Atlanta: What intrigued you about the opportunity?
When I saw that the WAC was offering this program I thought it was a fantastic opportunity to learn about the actual business environment in China first hand. The company I work for has offices in China, but it’s a niche type business and doesn’t give us a full blown perspective of the country. Finally, I had never been to China and I was very intrigued and excited about the prospect of being there.
Why did your employer see this as a great opportunity for you?
As I mentioned before, we have offices in China and I’m exposed to their people and business, but travel opportunities in the company are limited. My boss saw this opportunity as a great learning experience for me as a manager, professional and personally. From the moment I presented the program I received full support and at the end everyone was happy with the results. I was able to meet the company team in our Shanghai office, had on site meetings and of course was able to discover the different aspects of China provided by the China fellowship program.
One of RCB’s core beliefs is “Crossing Boundaries” finding a better appreciation and understanding of another country’s culture. In what ways did you find this true in your experience? Did RCB classes/professors/etc. in any way prepare you for a trip of this kind?
RCB is a truly diverse and international school of business, and I consider myself a true example of both. They way Robinson opens your mind starts from the time you attend your first class, and grows up not only with classes, but mostly with the interaction with a diver critical mass of students. What prepared me the most was knowing my Chinese classmates, the different discussions we had in class about China and also their personal experiences and tips.
A lot of people are fretting about a potential slowdown of the economy in China. What’s your anecdotal opinion; did you feel any anxiety in your interactions with people/companies? In other words, what were some of your impressions about China’s economic capacity?
Before traveling to China I was well aware of the different concerns about the slowdown of the growth of the Chinese economy, the potential real estate bubble and the overpriced values of the shares of the companies in the Shanghai stock exchange. However, by visualizing the Chinese economy and environment first had I was completely amazed not only by the size of everything you see, but also by the potential that the economy has for the future. I did not perceive anxiety at all in the companies we visited or the people we talked to. We heard some concerns about the growing cost of living and housing in the Shanghai area, which seems to be in line with major urban centers of the world, but nothing more than that.
I understand that a globalized economy poses different challenges for countries locally, and that sometimes slowdowns are impossible to stop, however seeing the plans that China has for the future, the immense infrastructure projects and the constant urban growth, my impression is that a slowdown would be temporary and a way for the macroeconomics of the country to reaccommodate on its way to continuing with the long term growth and expansion of the Chinese economy.
What will be your followup to this — the practical application? Making use of what you’ve learned professionally isn’t always easy. How will you do this?
In terms of my personal experience in AJC International (where I currently work), the trip has already open doors to new business relationships and opened the scopes of the project I work on. However, the challenge relies in the long term use of the trip, and how to make the most out of it from abusiness perspective outside my normal tasks and relationships. For me it was a fantastic experience, one of the best overall experiences of my life, and I personally look forward to be more involved with the Chinese business and culture in the future.
Hicham Jaddoud
Intercontinental Hotels Group
What intrigued you about the opportunity?
I work in a global corporation that is constantly seeking new markets by understanding the consumer’s behavior and needs. Unlike the Western economies, Chinese economy is manufacturing-based. However, for the last decade, we have seen a shift to service, such us Hospitality & Tourism. This opportunity allowed me to experience the Chinese culture, cross boundaries, meet people, and observe”the way Chinese do business”.
Why did your employer see this as a great opportunity for you?
My workplace is composed of talents from around the globe. My employer believes in diversity as a key element to succeed in the workplace. With diversity comes knowledge about different cultures and consumers. By allowing me to participate in the China Fellowship, my employer saw it as an opportunity for me to gain an insight about the Chinese hospitality market and add to the body of knowledge of the entire company. In addition, with the rise of Chinese tourists into the US (3.1 million Chinese tourist in 2016), it is a competitive advantage to be aware of this new consumer’s needs and expectations.
One of RCB’s core beliefs is “Crossing Boundaries”—finding a better appreciation and understanding of another country’s culture. In what ways did you find this true in your experience? Did RCB classes/professors/etc. in any way prepare you for a trip of this kind?
During the visit to China, and throughout the organized company and sites visits, I was able to observe the unscripted details about Chinese day-to-day life. I watched people’s social and business interactions closely and gained an understanding of the country’s history and culture. During my program at GSU, I took a few classes in International Business, but the visit was an eye-opener. I consider the class as a theory, while the visit was the practice.
A lot of people are fretting about a potential slowdown of the economy in China. What’s your anecdotal opinion; did you feel any anxiety in your interactions with people/companies? In other words, what were some of your impressions about China’s economic capacity?
I strongly believe that China made the right decision by shifting to service-based industries and relying heavily on technology and innovation. This shift allowed the Chinese companies to modernize their tools and trainings. The Chinese economy is strong. I personally don’t foresee a slowdown. China’s GDP growth in 2016 is at 6% (along with India). “ChinIndia” (China & India) are the getting ahead and will remain strong for long years. Undoubtedly, China has several internal issues with Human Rights and shortage of energy and resources, but the consumption and production power of China will always allow the country to remain strong. Furthermore, China has focused in the last decade on finding new markets for its mass production. China (the Walmart of the world) has flooded Africa and South Asia with its products.
What will be your followup to this — the practical application? Making use of what you’ve learned professionally isn’t always easy. How will you do this?
Since I came back, I have shared my “Chinese experience” with several co-workers and during the company meetings. I shared my observations of the Chinese consumer and of the hotel companies I visited while in Shanghai and Beijing. I was able to delegate lots of my work while in China.
Alex Ciuca
Investment Operations Associate, Drapac Capital Partners
What intrigued you about the opportunity?
This was an opportunity to explore the cultural, business and personal depth of China in a way that is not typical through traditional trips. Having the opportunity to see the behind the scenes of business, to meet with Chinese company representatives and policy makers were the main reasons for my interest in the trip. We always hear stories of how businesses operate there or the various levels of government involvement — this was a unique opportunity to get to see these elements first hand.
Why did your employer see this as a great opportunity for you?
Expanding the horizon of business to the market and innovation of China is highly desirable for most employers. In my case in particular, the Chinese economy has become so vast and will continue to be an increasingly important player in business. Having exposure to the Chinese people and business culture and getting a hands on understanding of their operating style were seen as long term investments by my employer.
One of RCB’s core beliefs is “Crossing Boundaries”—finding a better appreciation and understanding of another country’s culture. In what ways did you find this true in your experience? Did RCB classes/professors/etc. in any way prepare you for a trip of this kind?
I actually think that GSU’s diversity was the most helpful preparation for the trip. Always being surrounded by multi-cultural students and professors continuously brought perspective on other cultures and encouraged appreciation for discovering and exploring Chinese culture.
A lot of people are fretting about a potential slowdown of the economy in China. What’s your anecdotal opinion; did you feel any anxiety in your interactions with people/companies? In other words, what were some of your impressions about China’s economic capacity?
It definitely did not feel like there was a slowdown. Every city we visited had a dynamic vibe, people were working, innovating and looking forward to the future. I saw those as signs of an economy that is more likely to blossom than to falter.
I do think they are experiencing more pronounced effects of a transitional economy (from manufacturing to higher skilled). For example in Shanghai, manufacturing jobs are becoming more and more scarce, previous manufacturing sites are being converted into work-live-play developments to accommodate the higher skilled (higher paid) population.
Additionally, they appear to be learning (from a policy perspective) that their population is innovative and can bring real benefits to economic advancement. We met with a start-up incubator in Suzhou which receives 4,000-5,000 applications per year (and we were told that this type of start-up incubator is a serious trend throughout China) – it has become much more accessible for the general population to innovate and be entrepreneurial.
I think over the next few years they will continue to grow at high rates as the global economy improves – and we will see a more economically diverse China where there is a more significant high skilled workforce while low skilled jobs move to mainland China and their (poorer) neighboring countries.
What will be your followup to this — the practical application? Making use of what you’ve learned professionally isn’t always easy. How will you do this?
It may not be a direct application, and it may not be an immediate application, but having the experience and having an idea of the business and cultural practices will without question become beneficial in the future. One specific avenue considering my current role at Drapac Capital (an international real estate investment firm), we need to be in continuous understanding of global market conditions, especially in large economies like China that can significantly impact economic conditions throughout the world. The trip to China certainly deepened my understanding of their economy that I think will be highly beneficial in determining future economic trends.
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