Ted Fishman’s China, Inc.: How the Rise of the Next Superpower Challenges America and the World is a much needed read in the new era of globalization. In today’s world it seems everything is about China.
There are so many emerging topics of interest Americans need to understand about this giant economy and manufacturing base.
So powerful in fact that it’s now on my recommended list for business and education. Actually I’ll move it next to Tom Friedman’s bestseller The World Is Flat and John Kao’s Innovation Nation as noteworthy companions.
So what? The next time your holding an empty coffee cup or your child’s toys, flip them over and discover the country of origin. Yes, China is changing the rules of business and society.
If you do not believe this impacts America’s school children — well … your in trouble. Consider China graduates more honors students than the total number of students in American schools. Think about that statistic and what it means for your children or your grand-children’s future job market in the coming decades. I’m even concerned about my own son’s future career choices, yet confident it will require him to speak a non-roman language.
Rapid changes in the business landscape via globalization means the global market will continue to get more competitive. Americans will continue to be challenged to find secure, solid employment. It will be just as challenging to find a company who does not outsource elements to China’s fast growing economic empire in order to stay competitive. Fishman delivers this message loud and clear.
Take into consideration the production of cement. Do you see construction sites on your daily commute? Well think about the construction in China based upon this cement chart listed in Gigatons. Look how little America consumes next to China. What does that say about their growth?
Fishman also shares how the Chinese copy products (and processes) of successful companies around the world. In many cases buying a product and taking it back to China where its taken apart, examined, copied and produced at a fraction of the original vendor’s costs…regardless of copyright.
The Wisconsin connection:
Some of the more compelling chapters in Fishman’s books even cover the impact of Chinese manufacturing impacting local SE Wisconsin businesses. Regardless of your geographic location in America, the story is the same. Fishman introduces Chapter 6: Through the Looking Glass with a quick study of Pekin Illinois, a rural farming community outside Chicago (blessed with that great Midwest topsoil) not found in China. The impact of food ie. wheat and grain production to feed over a billion people is quite challenging.
But his discussions in Chapter 7 The China Price brings into focus two companies in greater the Milwaukee area that serves as yet another wake-up call to America. One steel foundry company Signicast in Hartford Wisconsin (between Madison and Milwaukee) has been able to remain competitive by staying lean and relying upon engineering solutions to keep manufacturing in Wisconsin. Harley Davidson is a big customer for Signicast, but their competition is coming from China. In contrast Milwaukee Valve closed its Wisconsin manufacturing base and moved into China establishing five manufacturing plants. Global competition in my own backyard is also in your backyard.
These two examples regarding Wisconsin serves as a real-world lesson for our educational institutions. You’ll be well advised to read China, Inc. and learn how deep their impact is in America. Kao’s Innovation Nation: How America Is Losing Its Innovation Edge, Why It Matters, and What We Can Do to Get It Back acknowledges this same topic but outlines how American can respond.
X + Y = Z ?
The core of China, Inc. is a wake up call regarding educational globalization. Fishman points to China’s quickly emerging education system, the rising number of engineering students and the dwindling number of Americans pursuing engineering degrees. In a global marketplace driven by advanced technology more than ever before, business and technology jobs will be the cornerstone for companies to remain competitive. Remember GM is shutting down plants around the country including Janesville Wisconsin yet at the same time launching new plants in Central America and Asia.
2008 Summer Olympic Games – 40 days and counting
Take a look at math and science scores as a Olympic competition: US students do not even make the final round in math and science competitions. Visualize ten lanes for the 100 meter dash gold medal race with no American students even qualified for the finals. Our country’s children are being knocked out in the first round of competition. Actually the winning prize is not a medal but rather career employment opportunities.
Don’t miss Fishman’s lessons of China bringing top American educators to establish new schools with cutting edge technologies and curriculum. Its happening and Innovation Nation documents this process and exodus of top American researchers too. Personally I do not like where this is going.
GM, Toyota and the RIAA?
Fishman’s Chapter 9: Pirate Nation is an eye opening look at how China’s enormous economic power permits them to simply ignore piracy and trademark laws. Remember the good old days of industrial espionage?
In 2002 GM was shocked to find at the largest auto show in China their brand new SUV for the Chinese market had not only an exact duplicate in the same isle at the auto show … but was manufactured with the exact same parts GM used with an outsourced Chinese part manufacture. Why was this not headline news in America? May GM live in interesting times indeed! Reminds me when the Soviets stole (and built) a copy of the Concord back in the 1960s before the French could even fly Concord.
Fishman’s Pirate Nation rehashed China’s well known pirating of movies, music and software from American companies as the next step in digital espionage. The Chinese acknowledge the problem yet say they don’t have the manpower to enforce copyright laws. And the RIAA is busy suing college students? So while the Chinese further pirating digital products … well maybe from their perspective the internet is a perfect tools to destroy more markets and companies.
Even Toyota ran into a similar situation but decided to purse legal action against the Chinese … only to learn China “did not recognize” Toyota as a brand. GM and Toyota, two of the biggest auto companies in the world simply buckled under the Chinese threat and not risk access to their market.
Clearly Fishman’s work results in one of the best books on China’s globalization impact on America, our manufacturing and educational systems.
Highly recommending reading. Book Website here