Day: September 4, 2019
Tech Titans of China and the Shifting Paradigm of Global Economic Dominance
“In the ebb and flow of history, economic powers shift from one country to the next. I believe we are now at this juncture with the United States and China.” So says Rebecca A. Fannin in her new book “Tech Titans of China” (Nicholas Brealey Publishing, 2019). It’s a bold premise, and given the fact that the U.S. stands on the precipe of an all-out trade war with the Asian giant, it’s also a timely one. But Fannin’s book isn’t a hue and cry or “know thine enemy” text as much as it’s a candid appreciation of how far China has come–and how far yet it may go–in the tech space. From ByteDance to Xpeng Motors, and dozens of innovators in between, the book is filled with great research and stories depicting the rise of Chinese companies that are changing the world. It is a valuable, timely read.
And its insight extends beyond just a market snapshot. Through Silicon Dragon, which functions both as a media hub for Asian market news and matchmaker for innovators and investors, Fannin has established herself as one of the world’s foremost experts on the topic of Chinese tech growth. She has firsthand knowledge of China’s entrepreneurial boom, and in Tech Titans of China, explains how the Chinese workforce is “out-hustling” the rest of the world with their work ethic. After all, simple math tells us that the standard Chinese work week of 9am to 9pm six days a week (a 9/9/6 schedule) compared to the U.S. work week of 8am to 5pm five days a week (8/5/5) is really no comparison at all.
She also examines the nuts and bolts of the success stories, like how DiDi Chuxing beat Uber for ride-sharing dominance, how Luckin Coffee has battled Starbucks, and how Airbnb managed to stake their claim in the fickle local market.
China is an economic and tech force to be reckoned with. As Fannin put it:
China has shed its image as the world’s low-cost producer and flagrant copier of western internet and mobile brands to become a breeding ground in today’s tech-centric world for disruptive breakthroughs not seen to such an extent since the Industrial Revolution of the eighteenth and nineteenth centuries. China’s scale, innovations, speed of execution and determination to rejuvenate the country and reclaim its glory for the riches, power, and exotic goods that so amazed Marco Polo in his travels to China during the Middle Ages is unmatched.
I recently sat down with Fannin to talk about Tech Titans of China, and pick her brain about how much China truly has evolved, and what the nation’s “secret sauce” may be.
Ed: This is a very timely book given today’s climate. What key message would you like to say about the book?
Rebecca: I think it’s amazing the progress that China has made in the last decade, in the technology sector and many sectors that matter… It’s innovating fast, it’s working hard, and its tech startups are going global.
Ed: What’s the bold idea that’s giving them the success some of these companies are having? What’s the secret sauce?
Rebecca: I think a top-down, centralized policy by the government is driving it, overall. This doesn’t mean the government is financing them – they have traditional funding. But the Chinese government said China would be a tech leader, and they set the agenda. I think that does influence the entire tech sector.
Ed: If we are in fact entering into a trade war, how are Chinese companies positioned?
Rebecca: [Baidu, Alibaba and Tencent] are the first generation of tech companies, and in some cases, they were the copiers of Silicon Valley companies. But today Chinese companies have evolved and spread out into many other sectors… It’s something that US companies haven’t done to the degree that Chinese companies have done. In addition, Chinese companies are investing in Southeast Asian countries, and Chinese culture can spread more easily than Western cultures, as it’s from Asia to Asia.
Ed: If I were going to create a chart that had the culture/work ethic/innovation environment, how would that compare with the US? Can you go through a couple of dimensions that would almost be lessons to the US as to why these Chinese companies are becoming titans?
Rebecca: Tech entrepreneurs are almost like warriors. They’re very fierce. With price-cutting, talent stealing… there’s fierce competition. Take the case of Uber and Didi. Uber did their best, but Didi did their price-cutting… and Uber actually lost. I think that US companies are really underestimating the fierceness of the competitors and their work ethic… some of them are working [12-hour days seven days a week]. A lot of employees see this as their life and their mission, and they want to get rich. They see their titans, who cashed out and got rich, and they have a lot of heroes to follow.
Ed: You use the word “fierce”, but there’s also the word “ethical”… is there some kind of values difference?
Rebecca: For years you heard that you couldn’t trust the Chinese, that you would set up a plant and they’d steal your workers and set up a plant a few miles away. But that’s changed. I think this idea of IP protection is not as pronounced as it used to be, and China has definitely come up the curve in terms of patents. When you look at the number of patent filings in the world, China is ranked up there with the US.
Ed: That’s kind of a natural progression – in their earlier years, they didn’t have the research and development, and innovation, really that developed, so they copied a bit. But now they have more innovation.
What’s your quick blink: This escalating trade conflict between the US and China – is this the beginning of a new cold war?
Rebecca: It looks like it could escalate. What we’re doing now will only reinforce China’s desire to innovate on its own.
Ed: There’s a long-term burden being put upon the Chinese economy now, because once factories are set up in Vietnam, et al., China will lose jobs. Do you see this as having an impact?
Rebecca: Yes, but I’ve also heard that it’s hard to get the same quality elsewhere. When you go to Malaysia or Vietnam, you may win on the tariff part of it, but you won’t get the same quality.
Ed: Would this cold war permanently hurt the Chinese economy?
Rebecca: Possibly. But I’ve also heard companies say we can’t get the same part from somewhere else, we can only get it from China, so we’re going to have to pay the tariff.
Ed: Do you think that some of the technology is going to thrust forward as easily in this environment?
Rebecca: Yes, we have [Beijing ByteDance Technology Co Ltd.] going global, it’s the world’s number one unicorn. They have TikTok, and it’s giving Facebook and others a run for their money. You do see the Chinese electric vehicles making some inroads here, too. And the Chinese are ahead in the production and adoption of electric vehicles.
A rich vein of eager venture capitalists. A government keen on setting an agenda of economic growth and tech dominance. An individual work ethic that’s virtually unmatched anywhere else, turning its massive workforce into a global game-changer. Clearly, the days of underestimating our friends in the east are over.
“You have a situation where Chinese companies have an advantage,” said Fannin, speaking as much about the potential of the Chinese market as the top-down positive influence their government has in guiding that growth.
According to Tech Titans of China, the Amazons, Apples and Facebooks of the world may have carved out their sizeable share of the tech market, but Chinese companies like Pinduoduo, SenseTime, DJI and others could soon disrupt everything.
Ignore China–and the insight Tech Titans of China offers–at your peril.
Click on the link below to purchase it.
Edward Kopko
CEO & Publisher
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Ed Kopko is BoldBusiness.com’s CEO and Publisher. He has a passion for business, economics and media. A serial entrepreneur, Ed has launched Bold Business to help broadcast the great accomplishments that come from business and entrepreneurial activity. He believes the very real and amazing Bold Impacts that these activities have created also make a micro economic case for trade and commerce. Ed’s previous media experience was as CEO, Publisher and Owner of Chief Executive Magazine and its related media activities. He has been published in many media venues including the Wall St. Journal, Detroit Free Press and Forbes.com. He has also been a sought after commentator and appeared numerous times on CNBC, MSNBC, Fox News and other media outlets.
CEO & Publisher
———————
Ed Kopko is BoldBusiness.com’s CEO and Publisher. He has a passion for business, economics and media. A serial entrepreneur, Ed has launched Bold Business to help broadcast the great accomplishments that come from business and entrepreneurial activity. He believes the very real and amazing Bold Impacts that these activities have created also make a micro economic case for trade and commerce. Ed’s previous media experience was as CEO, Publisher and Owner of Chief Executive Magazine and its related media activities. He has been published in many media venues including the Wall St. Journal, Detroit Free Press and Forbes.com. He has also been a sought after commentator and appeared numerous times on CNBC, MSNBC, Fox News and other media outlets.
The Evolution of Employee Benefits and the Impact of Future Workplace Trends
Employee benefits and compensation were unheard of until the 1900s. While milestone developments for employee benefits were achieved in the past, the 20th century brought a significant increase in employee benefits. Employers—both in the private and public sector—began implementing strategies aimed at meeting the needs of their workforce. Alongside government-enacted health and retirement programs, employers started actualizing incentives, such as insurance policies, pension, profit-sharing, and bonus plans.
However, by the end of the 1900s, employers gradually cut back on employee benefits and programs. The responsibility has been shifted to the employees through increased premiums and deductibles. High labor costs, the wave of globalization, and increased competition are some of the reasons for this shift. Except for a few enhancements on already existing laws and regulations, improvement in employee benefits has plateaued for the next few decades.
Fast forward to the digital revolution of the 21st century, and we are witnessing a new wave of transformation. Employers are reviewing and evaluating their compensation program. Likewise, we are seeing a growing number of companies with the best benefits for employees. With these changes, the workplace of the future seems to be showing great promise.
The War for Talents: Shaping Employee Benefits to Attract and Retain Talents
Businesses and organizations thrive because of people. As companies compete to attract, develop, and retain talent, an arsenal of competitive employee benefits can help win the war for talents. However, crafting competitive compensation packages go beyond salary or wages. A deep understanding of trends shaping the workplace of the future is necessary.
- Employers must be cognizant of the trends that influence and shape employee benefits. For instance, with the rising healthcare costs, employees are looking for companies offering employee benefits that can help address this need.
- Employee engagement, employee experience, and work-life balance are some of the emerging human capital management concepts that place people at the center. Companies offering employee benefits, such as extended time offs, paid parental leave, and vacation incentives are attractive.
- Companies with the best benefits for employees are on the lookout for ways to cater to unique and specific employee needs. Some of these employee benefits are directed to specific demographics within the company’s field or industry.
- Retraining, cross-training and upskilling are great employee benefits that strategic employers can provide their workforce. As companies prepare for transformation, equipping the workforce for changes can also help bridge the talent gap.
- With a workforce that is becoming highly socially-aware, integrating corporate social responsibility in the employee benefits and compensation package is beneficial. For employees who are looking for ways to give back, combining social causes with employee benefits supports retention and employee loyalty efforts.
Responsive, Unique, Future-Ready: Companies with Attractive Employee Perks
- Salesforce has successfully integrated the concept of giving back to their compensation package. With $1,000 per year to donate to a cause of their choice and six paid days for volunteer work, employees are motivated to stay in the company—and of course, do good.
- Airbnb promotes work-life balance by including a travel stipend of $2,000 per year to employees for Airbnb listings worldwide. House envy is never a problem for Airbnb employees. With travel perks anywhere in the world, employees can truly “belong anywhere”.
- Timberland Outdoor Apparel offers a benefit called “Path of Service”. It is a program that gives employees up to 40 hours of paid time to serve communities and encourages them to become proactive agents of service in and out of the office.
- Netflix doesn’t track its employees’ vacations days. In fact, the streaming giant encourages employees to take time off. The company focuses on what gets done versus the number of hours clocked in.
- Goldman Sachs provides medical coverage for sex reassignment surgery of its employees. To uphold diversity and inclusion—and in support of the employees’ wellbeing—, services, and programs that promote overall health and wellness are in place.
Other Companies with the Best Benefits for Employees
- Google provides a “death benefit” to employees. This means the surviving spouse receives 50 percent of the employee’s salary for the next 10 years. The children of the deceased employee will also receive $1,000 per month until the age of 19.
- SAS has been consistently voted as one of the companies with the best benefits for employees. If flexible time and 37.5 maximum hours of work per week are not enough reasons, throw in a subsidized employee cafeteria and your own private office into the list. The company even provides an on-site hair salon, shoe repair, dry cleaning, and a tailor.
- Zappos wants employees that are above-average happy. Thus, their employee benefits are above-average, too. As one of the companies with the best benefits for employees, Zappos gives its employees above-average medical, dental, and insurance coverage. There’s also free food, monthly outings, and a 40 percent discount on shoes and accessories.
- Spotify can freeze their female employees’ eggs. This benefit is attractive to female employees who have chosen to delay pregnancy to focus on their careers. The benefit does not have a cap amount and also covers fertility treatments.
- AT&T’s upskilling project—dubbed as Future Ready—is worth $1 billion. The goal is to upskill its workforce and be digital transformation-ready by the year 2020. The company—as surely one of the top companies with the best benefits for employees —is a leading force in upskilling initiatives that most of the technology management jobs were filled internally.
Bold Challenges Amid A New Wave of Change
Employee benefits have evolved and changed significantly over the years. Noticeably, these changes coincided with the prevailing industrial and social movements of the time. The increase in economic activity in the 1900s has shifted the composition of the workforce from farming to manufacturing and mass production. Indeed, this shift led to the concentration of workers within the bustling and highly-industrialized cities. Thus, that paved the way to the establishment of environments that look after employee welfare. With the Fourth Industrial Revolution, a new wave of change is coming. The challenge is how quickly various sectors of the society can catch up with the change.
Employee Benefits: The Key To Win The War For Top Talents
