Note on the Berkeley China Initiative. This conference was webcasted. These are the interesting things I’ve noted:
“Hispanified” – by 2050, 1/3 of the US population will be hispanic/latino
“Quebecified” – separate and separatist
“China needs more population growth.” – But look at Africa with the most pop growth can’t get off the ground – so maybe the focus is not necessarily on more women and casting the one-child-per-household rule aside but more education and women, and education for women. Although historically the greater the education, the smaller the nuclear family. Need to have directly proportionate population growth and education of women – which is very difficult to shift from it’s inversely proportionate nature. China should force people to have babies and then educate them! The more educated people, the more people will have higher positions in the work force (and out source the manual labor out to India 
).
Maybe the answer to Africa’s exponential population growth (and cases of AIDS related death) is to export manual labor there! Africa will be the India of the future! If more people put money into getting some more manufacturing companies and factories built there, Africa will be the China of the future! Wow, who knew that this was so easy? Just move your manual blue collar labor force to the next poorest, over populated country! It’ll benefit them, but honestly it will benefit your pocket the most Mr(s) Middleperson!
China has a savings surplus – almost 50% go into savings! This is because China is still “old-school” and we as the US will convert them to be in trillions of dollars in debt just like us, because they want to be JUST LIKE US.
In the near future there will be Inflation and Deflation: Health care is inflated, products made from India and china (and Africa) are deflated.
Laissez faire: look how far communism has gone from the 80’s to now! If you can’t beat them, join them.
“Innovation” in china will be the next import/export business. Local innovation is in two flavors “kaizen” – improvement of the existent as an innovation and new stuff innovation. It’s a 70% to 30% in favor of the kaizen; improvement is easier when you already have something for sure!
70% of internet users in china are with them!
∴∴ a good way to own the teen audience and adult is to have a game that is online and offline that is accessible through a phone.
VC’s may or may not travel well. 1-mile rule has it’s + and -. + is knowing the local culture, you know more about he business that you need to run, what looks better to the workers and corporate culture. Then the negative is tht the people could get used to you and then deemed less important when calling meetings- people will know you and push you to do things their way vs dealing with the “boss” at a distance and putting your best foot forward everytime that you have to meet them.
∴be in a good relationship with your managers and they will be local and you can be away, important, and still in control.
For investing look for companies that have low costs and scalable making profit margins greater. Slower the costs grow the faster the profits are made by scaling up.
Chinese CEOs have ADHD not because they want to, but because their idols are multi-tasking successes. VC’s are careful not to encourage this and ask them to focus on the one company they are in charge of instead of saying Yes to every invitation to be apart of the Board of Directors of any other company. “Face Interest” is a fun play of both sexism and chest pounding, since most CEOs are male in China (and in the US – grr).
The word “relationship” or “gwan shi” is spoken more on the asian representatives than that of the white representatives. Western and eastern thought are very different. It would be an advantage to the US to understand that to have a gwan shi makes boundaries softer, more negotiable.
WHOLLY COW section:
Employment/labor force is strong and cheap in china. 200$/yr can get you a college grad in china. So who’s going to take care of the engineers in US?
How do you still be able to make money in china, but not let china steal the ideas and make these ideas better? Manufacturing and labor is the big Chinese advantage, so use the manpower yet somehow keep the power. Innovation is heavily invested – out innovate and out pace the local.
