To say that China has emerged as a leader in the global economic landscape is perhaps one of the biggest understatements of the year. The country’s economy has steadily and explosively grown for 30 years, making it the world’s largest. In 2017, it’s growth was an impressive $23.12 trillion, which was 6.8 percent more than in 2016, reports The Balance.
Business leaders in other countries, especially those who are outside of the Asia Pacific Region, can definitely benefit from understanding more about China and how the country has achieved its enormous economic successes. As for what business owners in the U.S. can learn from China, consider the following examples:
Start Small and Expand to Larger Successes
Twenty-five years ago, the streets of Beijing were overflowing with people, bicycles and trucks, reports Maciej Kranz of the Forbes Technology Council, remembering his first trip to the country. Kranz recently made his 14th visit to China and noted that while the streets are still hopping, smart fleets of bikes, buses and trains—all embedded with Internet of Things (IoT) technology—have made the city’s transportation more efficient and less chaotic. IoT startup hubs are opening up all over the country, and budding Chinese entrepreneurs are doing very well in this emerging field. Business leaders in other countries can look to the focus on IoT in China and adopt their strategies of committing to revolutionary change. Start with small successes in an industry like IoT and then grow them into a larger platform.
In addition, startup owners in China are no longer feeling like failures if their IoT business does not make it—they will keep on trying to succeed. Business owners in other countries can learn from this “can do” attitude by not being daunted by a fear of failure or being afraid to take risks.
Think Long-term for a Greater Perspective
In the West, many business leaders have a short-term mentality that can lead to economic issues—for example, the extreme focus on the rising housing market led to the 2008 economic downfall and recession in the U.S. On the flip side, Chinese culture focuses more on the longer term, which allows their business leaders to have a clearer perspective on things and thus reduces the risk of adopting policies that may provide immediate gain but be negative over time. This “focusing on the big picture” approach by Chinese business leaders is part of the Daoist philosophy, which states that constant change is the only unchanging law in the world. For Chinese business owners, they comprehend that changes will always take place and what looks to be a negative today may eventually turn out to be good, and that a “strong and steady wins the race” approach to business is the way to go.
Look to Those with Experience for Insight
In addition to studying China to learn more about their success in the economic realm, business leaders may also turn to experts on the county for their wisdom and advice. International best-selling author Joshua Cooper Ramo is an example of a successful entrepreneur who is highly knowledgeable about China. Ramo has been called “one of China’s leading foreign-born scholars” by the World Economic Forum. He has written a number of papers on the country’s development, including “Brand China,” which have been distributed in China and abroad. Reading some of Ramo’s writings about China and his diplomatic and scholarly work in and about the country may assist business owners in the U.S. to understand more about China and their rise to economic success.
China is a Positive Role Model for Business Success
Clearly, there is a lot that business leaders outside of the Asia Pacific Region can learn from China. The country’s impressive economic growth can be explained by a number of philosophies and approaches to business that U.S. company owners may wish to adopt. By reading more about China and looking to its scholars for inspiration, business leaders in other countries may start to enjoy the same economic successes.