Today we visited two more companies: AmCham and Horiba. AmCham is a non-profit business organization who assists American companies with their international business relationships in Shanghai. Dan and Chris presented to us. Dan started work in journalism and has his master’s degree in Chinese studies. Chris works in the PNC office in Shanghai and his role is to help corporate clients do business.
Throughout our discussion, I learned many interesting facts about China from a business perspective. China now accounts for 20% of the world’s economy, since their economy has been growing after Chairman Mao’s death. One problem though, is their decreasing number of people in the work force. This is because the generation who were affected by the one child policy are now working age. China’s work force population was once 5 times that of the U.S., but now it is decreasing to about 3 times the size of America’s. We also learned about the difference is GDP between the two countries. There is more consumption in the U.S, while there is more government spending and net exports in China.
Chris and Dan also explained the Hukou system. It is a household registration system that controls who can use education and healthcare resources. We discussed the development of high-rise apartment buildings and how builders much purchase the land from a government auction. Finally, I learned about Xi Jinping’s initiatives to improve China. His goals include reducing poverty, cleaning the environment, improving healthcare, upgrading manufacturing, boosting consumerism, and increasing China’s global influence through trade. The Q&A session was very informative, and Dan and Chris were super knowledgeable. They helped us understand more about the Chinese economy.
Our next company visit was Horiba. Horiba is a Japanese company who creates measurement technologies and analysis solutions. Their five business segments include automotive test systems, process and environmental test, medical tests, developing semiconductors and scientific research. We spoke to the chief director and president of the China branch, Tadao Nakamura, and he emphasized that hard work is the most important value in their company. Mr. Nakamura mentioned that he works from 7 am to 7 pm, dedicating his life to his company.
Their large market share in specific industries is impressive. For example, they contain 80% of the global market for emission measurement systems and 60% of the global market for mass flow controllers. We learned about some of their main products and had a chance to tour the facility and labs to see products first hand. The facilities were very sterile and our hosts required us to wear shoe covers (they were very fashionable). I enjoyed this visit, but it reassured why I am in business school and not engineering school :).
For dinner, some of us went to a Mexican restaurant close to our hotel. As embarrassing as it is to eat Mexican food in China, in our defense, the restaurant was amazing. Shanghai has many other food options than traditional Chinese food, unlike the other cities we have visited. I cannot believe we only have two days left in China!
Goodnight from Shanghai!
Ttylxox,
Ali <3
