Asia Study Tour 2007

The 2007 Asia study tour will visit Shanghai, China, Hong Kong and Ho Chi Minh City, Vietnam.  The trip duration is May 18-28.  We chose to visit Asia in 2007 in anticipation of the Beijing Olympiad in 2008 which will make travel to that region more difficult.  China is a logical destination as it will dominate this part of the world in the 21st Century the way the US dominated the Western Hemisphere in the 20th.  Vietnam was selected by contrast as a country that is still striving to emerge from "third world" status.  Shanghai and Ho Chi Minh City are the leading industrial cities in their respective countries which makes sense as an appropriate business school study.  (Click to see Itinerary)

We gathered at dawn (5:30am) at Charlotte Douglas Airport for our first flight to Chicago.  In Chicago we waited in long lines to board the airplane only to wait another two hours for a mechanical repair.  Finally we took off, flew directly over the North Pole, Siberia, Mongolia, the Gobi Desert to Shanghai.  We met our guide, Molly, at the airport.  After several adventures around claiming bags, etc. we got to the hotel about 24 hours after arriving at the Charlotte airport.  Since we crossed the International Date Line it became Saturday evening, May 19th.

The evening’s group dinner was “real” Chinese food.  This is not necessarily what you get when you order P. F. Chang's.  Served family style, he highlight of the meal was the fish that stared back at you.  Washed down by Budweiser beer, a Chinese favorite as we will be told on Monday when we visit A-B Headquarters for China.

On Sunday morning we had breakfast with Gary Snipes, EMBA ’06, who was traveling in China on business.  He sat in on the Sunday morning presentation of Dr. Marcus Lee and later caught a flight back to Charlotte.

Dr. Marcus Lee’s presentation. (by Memuna Williams and Laura Navarro)

On Sunday morning we heard Dr. Marcus Lee present “Doing Business in China.” He is Vice President and China Chief of Durham Advisory Group (DAG) Asia Ltd., Shanghai Office. He has been the appointed Economic Advisor to Chinese Municipal Governments since 2004. Dr. Lee is listed among the 100 Who’s Who in China, and hosts a TV show called “Money Talk.” He Speaks 4 languages and 5 Chinese dialects. He has done business in 23 provinces in China and worked in New York at various companies for 7 years. 

Dr. Lee’s presentation to us included an overview of China, its economic outlook, information on the market and how to do business in and with China.  

 Dr. Lee told us that the call to do business with 1.3 billion people in China is deceptive because only 20% of the Chinese live in urban areas. The real available market number is 400 million people which is the number of people projected to live in urban areas by 2010. He reminded us that China’s GDP in 2005 was 1.5 trillion dollars, and that going after a portion of that output is worthwhile.

 Dr. Lee mentioned that each of the 23 provinces, 5 autonomous regions and 4 municipalities is much like a separate country and that the differences in culture and set up should be kept in mind. One example he gave is business people from Beijing will be friendly very quickly and be very eager to sign a contract quickly, but will forget about it the next day.

 Dr. Lee talked about how to set up business in China, including wholly owned subsidiaries, joint ventures, having representative offices and branch offices. The underpinning of any of this is that it is critical to have good partners and good relationships. He also wanted us to remember that it can be difficult to do business in China because it is still a planned economy, and due to lack of predictability, protectionism, and over enthusiasm in doing business here.

 Dr. Lee reviewed 15 industries including information technology, the medical industry and food and beverages that currently present opportunity in China. One of the largest markets in China is the cell phone. He gave an example of how this has changed Chinese culture. Traditionally, the Chinese New Year is a time to visit friends and family to wish them a Happy New Year. Now, many people just text message the New Year greeting. One interesting statistic was that in 2007, Chinese will surpass English as the most used language on the internet.

 Dr. Lee concluded his presentation with the following tips on doing business with China: 

• Do very careful research

• Find the right partner

• Have clear contract terms

• Ensure project viability

• Avoid prohibited agreements

• Practice problem prevention

• Do a thorough risk analysis

• Expect fierce competition and pricing pressure

• Know how to get paid

Click here to view Dr. Lee's summary of his talk.

Dr. Lee started a publishing firm last year. His book, Doing Business in China, will be published in 2 months.

Sunday afternoon the itinerary granted us some free time as even the director felt that the group had been pressed with the hectic travel schedule followed by a meeting on the first day.  Many of us went on a trip to the Temple of the Jade Buddha and otherwise toured Shanghai Shopping districts.   Sunday evening several of us went walking on the Bund (picture on right, the Huang Pu river at night) and we met with an old friend, Fransis Chadikun, EMBA ’99.  (picture below)

Reflecting on our trip to Singapore and Kuala Lumpur last year he allowed that those counties had interesting strategies to improve and sustain themselves, but as he said, "if you want to be in the place that will change the world, you will come to Shanghai."

We have been blessed by great weather in Shanghai.  The trip could not be going any better, we have 25 enthusiastic and energetic travelers, all are in good spirits and looking forward to the events of the coming days.

(posted May 21, 2007 by Bill Berry)