A culture of Success

世界首次！嫦娥四号到了！A world first - Chang'e successfully landed on the rear side of the moon. There is a lot to be said about setting long term goals, fortified by a slow initial pace, constant improvement and a consistent strategy. Within the space of 20 years China have caught up to and even surpassed (by some measures) the Space Capabilities of NASA, ESA & ROSCOSMOS.

I have been fortunate enough to have worked in China several times, speak fluent Chinese and have had exposure to many major Space and Tech industries in the world from Tencent to NASA. What sets the Chinese Tech industry apart is far more than just the outdated stereotype of 'They can throw enormous amounts of people and resources into projects until it works'...

Radical transformations are currently underway in China, most notably in the way that career paths are viewed and chosen. Previous generations, millennials in particular (who are now in their 30s) simply faced too much scrutiny & taboo for working in tech pioneering industries and startups. This was due to parents passionately driving their children into more traditional & thus safer roles (Medicine, Law etc). It was not out of some materialistic greed, rather a product of the scarcity mentality which was remnant from the cultural revolution i.e. it is imperative to focus on tangible careers that will allow their children to support the family down the line.

Now China is leading the world in many if not all the major industries, living standards have improved dramatically across the country, thus those old taboos have died along with previously outdated mindsets. Suspicion and distrust of new technology and industries have been replaced with optimism and what my recent colleague in Guangzhou has coined Techno-National Capitalism - a state-wide call to arms with a rejuvenated sense of both personal and national pride that comes with the pursuit of high skilled tech roles. In China getting a high skilled job, doesn't just make your family proud , it makes your country strong.

Artificial Intelligence (AI) being a perfect example, both the public and specialists alike see AI as the key accelerator which will allow China to surpass North America as the number one global super power. This is in fact mandated by the Chinese constitution, 2030 being the date in which China aims not only to be number one, but to dominate the AI industry globally, projections from the PWC and other reputable analytics support this.

Attitudes in China contrast greatly with that in the west, particularly Europe and the USA which have fallen back into skepticism and distrust of tech companies (in part for good reason). This is evident in red tape legislation ranging from GDPR to PSD2. Scandals like Cambridge Analytica don't help things either. Meanwhile in China the vision set out by Xi JingPing's "China Dream' seems to be moving full steam ahead, attitudes towards technology being primarily that of an enabler and source of opportunity rather than an area for potential abuse and manipulation.

Granted this is just a brief insight into some of the rational driving the rapid change in China, as is with every country the complex interaction in regulations, environment & history are what shape the market.

I believe the take home message from the China success story is - whilst big tech companies in the west have a duty to regain trust in the people, our duty is to remember it is also the people who comprise these companies, our sons, daughters, friends and neighbours. Companies are not geographically loyal, applying too much pressure and too little stimulus results in outward job migration. The balance between tight regulation and competitive freedom have never been more important, but having the right mindset makes all the difference.