China vs. the U.S.

This is a big topic and also a hottest topic. But I’m not going to discuss it like a politician nor an economist. I’m going to make a miniature comparison in a particular industry, telecom/IT related industry, which is the sector I’m working at and passionate about.

My idea about this topic was initiated with the discussion with my director.  He introduced me an article in internal magazine about working hard and making contributions to company. Then i came up with numerous thoughts and ideas about China vs. US. 

Q1: In china, the society embraces the idea of working hard and contributing to country and society. While in US, as i know and believe, the  society actively support individual success, to realize your own “american dream”.

Q2: However, in contrast to the idea of making contribution to society and others. in China, according to my own experience from primary school to university, I wasn’t taught a lesson or haven’t had a project with others to learn about team work. I was judged by my scores of exams which were always done by myself. Not any work was required cooperation.  To make it worse, as a single child in my family, my whole family treated me so well that i felt myself as a king. I admitted that i had great difficulties to adapt myself to the society/job environment and learn to work with others and to be a good team player.
While in US, according to my preparation of MBA and the application essays, the society emphasizes the importance of being a team player even though in parallel it encourage personal success and realization. 
What a paradox in both of these two countries.

Now Let’s take a look at the result.  A comparison of the NO.1 of Fortune 500 in china in the telecom/IT/Electronic sector and other well-known US high-tech companies.

The NO.1 in china is Huawei Technology. I’m very proud of it, a high-tech company, which developed from a start-up to a giant enterprise with over 95000 employees within 20 years.

Let’s compare its financial record with those of other US high-tech companies (2009)

                            Revenue  (billion)                    Net Profit                         Employees

Huawei                          21.3                                 2.68                                90000

Apple                            42.0                                  8.4                                 34300   

Microsoft                      58.4                                14.5                                 93000

Google                          23.6                                  6.5                                   20000  

Ebay                             8.7                                   2.3                                    15500          

Cisco                            36.1                                 6.1                                     63000       

The difference is efficiency. Why the US peers master the efficiency of making money and profit? Because each of above US companies created their own business model and creat a high barrier for competitors to enter.  Then why always US companies are able to lead the trend and creat innovative business model/product/capital model again and again? That’s the question i want to find out during my future MBA in US.


3 Comments to “China vs. the U.S.”

  1. Let us look at this differently !

    Amercians, the progeny of the baby boomers, are brought up to beliveve that they are free, and therefore need to be taught to work in teams.

    While the Chinese, progeny of the Cultural Revolution, are naturally compliant ….. the Chinese Government is afraid to set people free, but has the good sense not to hold back on their initiative.

    Chinese business is also inhibited by bureaucracy, whose basic tenet is to resist change …….
    Whereas Americans are free to pursue commercial initiatives ………

    The business models in place are a product of the macro culture ……..

    You might change the model …….. but can you change the people …… ???

    My sense is “Yes you can” ………. but that will need another peasant revolt ….. when the impoverished masses and frustrated intelligencia in China rise up again ……

    As for the Amercians ………. can the new Messiah change that Evil Empire ????

    I doubt it, whoever is President, the paymaster, as we see with Israel, remains the same ….

    • To be optimistic, violent revolt may not be necessary.
      Although there are some man-made barriers, China is connected to the world with Internet, trading activities, personal travelings etc. Therefore, people’s mind is changing to realize what is the correct style, at least for the youngs, it is happening. Then we are going to see a big change several decades later without revolt but a reform triggered by different minds from the old ones.

      • Even though the US government and the media talked a lot about the risk posted by China and being afraid of catching up by China, china is legging behind in the areas of high-technology, renewable energy and clean tech.

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