June 2004

Aaron Kumove -- Managing Director, Horizon Consulting

I think for most Westerners China is a mystery.  It certainly was for me.  I came here with no real pre-conceived notions, but also with very little real knowledge of China today.  My conception was based on notions of China as it may have been a number of years ago, tempered with an understanding that China was “opening up”, but not really understanding what “opening up” meant.

Here is what I have found so far . . .

I have seen very little evidence of the stereotypical vision of communist China that I had thought was the case.  As far as I can tell the Chinese economy today operates under the same model as any Western capitalist economy.  The economy is based on free enterprise, and not just in the so-called “special economic zones”, which were set up by Deng Xiao Peng 25 years ago as experiments in capitalism.

The city of Shenzhen was the first of the special economic zones.  Twenty-five years ago it was a small fishing village of a few hundred people. Today it is a fast growing modern city of a few million people and is the home to many of China’s high tech companies.

All over the city I saw development – new office towers being built with amazing speed.  The Chinese even refer to “Shenzhen speed” when they talk about things happening fast.  One of my hosts pointed out to me an office tower that was built in a month, with one new floor being built every night!

I have travelled in a number of so-called “third world” countries and I guess was expecting China to be somewhat similar, but from what I have seen of the two Chinese cities that I have been to so far, they don’t appear to be too different from the West. 

The CBD’s are full of modern office buildings and shops.  The offices and hotels I have been into have all been well equipped with modern technical gadgetry.  I could have been in any modern office or hotel in any Western city.  The city streets are clean and well cared for.  The service in the hotels and restaurants has been top-notch.  The clothes that people wear are modern and stylish. 

Long gone are the days of everyone dressing like Chairman Mao!

(As far as the restaurants go, I am at a loss for words.  It will take a far better writer than me to even come close to describing how unbelievably delicious the food is here!)

I am sure that there are parts of these cities that look more like the “third world”, but then again I could say that about many modern Western cities if I wandered into the wrong neighbourhoods.

The progress that has been made in the last 25 years has been fuelled I am told to a large degree by foreign investment.  Many large multi-nationals have set up factories and offices here.   The other factor that is driving China’s rapid economic progress is the will and desire of the Chinese to improve their lot in life.  The students and other professional people that I have met have all been very smart, very well educated and very hard working.  One person told me that the Chinese professionals of this generation see themselves much as the Japanese of a generation ago did in their country – as the generation which will transform this country from the third world to a leader of the first world. 

Based on what I have seen so far I am inclined to agree.

The state of IT is maturing quickly as China makes this transition.  The IT professionals that I have met here have certainly been at least equal to any that I have met elsewhere.  While the IT infrastructure in most companies I am told may not be so advanced that is also rapidly changing as Chinese companies are starting to make investments in larger more strategic pieces of infrastructure such as ERP systems.

I can’t wait to come back to teach again in February and see what further progress has been made.

Aaron Kumove -- Managing Director, Horizon Consulting

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