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» China-Business-Articles » Reading: "China's Rise--Not America's Demise"
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| China's Rise--Not America's Demise |
By:
Tom Watkins |
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Thursday, August 6, 2009
Michigan should exploit rising Chinese economy
Tom Watkins / Special to The Detroit News
I recently returned from China, where I have traveled often during the past 20 years, attempting to build economic, educational and cultural bridges. While there have been fledgling attempts to make a connection, Michigan still needs a more aggressive strategy that makes the rise of China work for us.
There once was a time when what happened in China had minimal impact on our lives. Those days are gone. What happens in China no longer just stays in China. The Asian country is underwriting the U.S. debt to the tune of $1 trillion and growing, has the fastest-growing large economy in the world and has made more autos than America for five months in a row.
China's rise does not need to come at Michigan's demise. There is an opportunity to both sell goods and services to China and attract Chinese investment to our state. Michigan needs to get aggressive in building the relationships necessary to make this happen.
The county executives from Wayne and Oakland, Robert Ficano and L. Brooks Patterson, along with Paul Gieleghem, the chairman of the Macomb County Board of Commissioners, are doing their part to build bridges.
The state universities, especially the University of Michigan, Michigan State University, Wayne State University and Oakland University, have extensive academic and research bases in China.
What is missing is a comprehensive statewide initiative to tap this rich vein of potential investment in ways to create jobs for our citizens.
Former Gov. James Blanchard signed a sister state/province agreement with Sichuan Province. But after Blanchard left office in 1990, that connection dried up because of a lack of follow-up. The Chinese expect to meet with top elected officials in the state, like the governor, not lower-level representatives.
The China wave has been pounding our shores for some time. Where is the strategy to make China work for us?
Michigan has much to offer the Chinese, from our world-class system of higher education, technological know-how, abundant crops, golf, casinos, and personal and commercial property at fire-sale prices. Given the horrible pollution in China, there is a great opportunity for Michigan to make "green" off China's dirt.
With 1.3 billion people, hundreds of millions who have climbed into the middle class, and hundreds of thousands of new millionaires, along with a push to modernize and invest overseas, there is not much the Chinese do not need or want.
Ford Motor Co., General Motors Co., Amway and other Michigan companies have tapped the China market. They are doing quite well and helping to employ workers here in Michigan.
Our political leaders need to stop using China as the 21st-century bogeyman as a means to scare workers who have suffered as Michigan's fortunes have turned downward. This rhetoric may win votes but does nothing to create jobs or build relationships.
Are there issues with China such as fair trade, theft of intellectual property, currency manipulation and human rights that need to be addressed? Of course.
However, leaders don't stand on the sidelines and complain and blame; they get in the game to win.
Northwest/Delta airlines has restarted its nonstop flight to Shanghai. This flight has established a direct, two-way economic bridge to China and has the potential to become the 21st-century silk route.
Michigan leaders need to board a future NW/Delta nonstop flight to China on a quest to make sure the China bridge that has been built is a two-way span that can create jobs and wealth right here in the mitten state of Michigan.
Remember the ancient Chinese saying, "The longest journey begins with a single step."
Tom Watkins is a business and education consultant in the United States and China and was Michigan's state superintendent of schools from 2001-05. E-mail comments to letters@detnews.com Read Watkins' China/change blog at pod08.prospero.com/tomwatkins
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Thu. 08/06/09 02:21 PM
Michigan should exploit Chinese economy
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I like the way Tom Watkins thinks. China holds tremendous market potential for goods, services and technology that is or could be made here in Michigan. China has the people, we have the know-how....do the math.
Positioning Michigan to take advantage of the presenting opportunities will be the challenge, but we can align the stars to make it possible. The clock is ticking. If Michigan does not step-up someone else will. We need to move forward aggressively.
Elmer Cerano
ecerano@aol.com, White Lake, Michigan
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Thu. 08/06/09 01:56 PM
Tom's Right On
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As usual Mr. Watkins makes some fantastic points about China and our relationship with them.
The Chamber has made visits to China to reach out but it take the top government officials to really make the point clear that Michigan does in fact want business here from China!
Send a copy to the Governor and make sure she reads it!
garygp, Clinton Township, MI
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Thu. 08/06/09 01:54 PM
Exploiting the Rising Chinese Economy
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With Michigan's economic viability at tremendous risk, state leaders would do well to heed to this advice. The amount of our debt held by the Chinese should serve as a clarion call to aggressively cultivate our relationship with this expanding Chinese market...for if we don't take advantage of the new hoard of consumers, others decidedly will.
The sluggish response to foreign competition by the once Big Three ultimately led to the current crisis in the automobile industry. Michigan must WAKE UP NOW, and take action toward a new vision for our state. This vision must also include our educational system. Prior to my retirement as a public school superintendent, I instituted Mandarin Chinese language opportunities for our students. This, being the exception, should become the norm. Michigan could and should lead the way in developing multilingual students, if we truly want to enter the world economy. We must also work to educate our students in a way that makes them globally aware. We have the technology to do this, but we must alter instructional practices and goals in order for this to be a mainstay in every school in the state. Unfortunately, both of these goals will likely take several years to bear fruit. This makes it even more imperative that Michigan political and business leaders take the initiative to move our great state forward on a fast track toward global commerce, with a primary focus upon China. If we wait much longer, it will likely be too late.
Take that first step...now.
wmcoale, Spring Arbor, Michigan
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Thu. 08/06/09 12:08 PM
Exploiting the Rising Chinese Economy
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Tom Watkins has it right. We need to stop the fear-mongering and work with China on a range of mutual strategic interests from manufacturing to climate and education. The Chinese are not the reason why our Michigan manufacturing economy is faltering-- they hold over a trillion dollars in US debt. Globalization is here to stay.
We have a wonderful opportunity through education and exchange to build partnerships with the Chinese-- from language learning to e-learning exchanges.
Michigan, with its well developed e-learning network and robust virtual learning program at Michigan Virtual has the opportunity to set the stage and build a "next generation" global partnership with China. We need to exploit the possibilities here.
Just as Richard Nixon took the first steps in recognizing the importance of working with the Chinese 30 years ago, technology affords us a wonderful opportunity to build an e-bridge to a fellow economic force.
Let's move forward, not backward. Investing in our relationship with China can pay huge dividends for us all.
Ron J. Stefansk, Ann Arbor, MI
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Thu. 08/06/09 11:51 AM
Opportunity calls for leadership and hardwork
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Thanks Mr. Watkins for this article.
We all love Michigan and want our state to benefit from all the possible opportunities. The China opportunity is not only for Michigan, but open to the whole United State. Michigan has done a lot: it has an office in Shanghai China for more than 10 years; many real business, educational culture exchange activities, and so many successful stories such as the Amway, GM, Ford, Chrysler, Dow,Kellogg, UM, MSU ...
But over all as a state, we are behind some other states in benefiting from the China opportunity. The Great Lakes State is still unknown to most Chinese. We didn't have a fair share of growing Chinese tourists to US despite the world class DTW airport and the direct Detroit -Shanghai flight.
Opportunity calls for leadership and hard work.
koralo, Riverview, MI
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Thu. 08/06/09 11:45 AM
Michigan should exploit rising Chinese economy
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"Get in the game" ��" Well put.
The Chinese have gotten into the game ahead of us. We were too busy wringing our hands and clenching our teeth to see that. All schools in China are teaching English now. 6 years of English for every student (wish the Mexicans had thought of that).
Shifts in society are inevitable. Example: The U.S. Postal Service must cut out 700 post offices and take a look at reducing the number of employees at the remaining branches. Why? ��" because Americans are turning to email. The volume of paper mail has gone down drastically. Thousands of jobs will be lost. Do we turn back the clock and forbid email to save those jobs? No one would agree to that. It is a societal shift.
Do we forbid our friends and relatives from purchasing Chinese products? That would be the end of our freedom. We are talking about another societal shift called globalization. We had emotional problems when we were afraid the Japanese would take us over, remember? Did they? Don't underestimate the American mind and the uniquely American adaptability.
We aren't going to close our eyes and make China disappear. At the cusp of every societal change is a new frontier of opportunity. It is time to look for the opportunity here, realize we are the most adaptable people on Earth, and embrace the change that we cannot stop.
I have a small company in Southeastern Michigan. We are the logistical and QC interface for a company in China. Truck components are shipped from China to USA, Mexico, and Brazil, as guided by my small company. We employ people directly. We use a freight forwarder whose office is in Michigan. Trucking companies in Michigan employ people who move our product. ADP in Michigan handles our payroll. Utilities in Michigan are put to work to provide us with power and gas. Cars and refrigerators are purchased by employees paid by our transactions.
There are opportunities with China. We can be true Americans and adapt, or we can be spoiled Americans who sit down on the curb and just cry.
4Ward, Grosse Ile, MI
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Thu. 08/06/09 11:20 AM
China
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Tom Watkins has again explained a simple truth in the opportunity for Michigan to grow again by expanding its reach.
It makes all the sense in the world to pursue a growth strategy for any business individually, or as an entire state by "going where the customers are".
I doubt Henry Ford was critized for trying to penetrate the New York or Chicago markets with his automobiles. And, I am sure he invested heavily in distribution to these markets and set up partnerships with dealers and suppliers to bring in sales there locally.
Why do we in Michigan continue in what is a global economy think anything less is required? Why do we critize those who try?
Tom Watkins hits it on the head. We need to respect the companies that are doing business with and in China as they are creating jobs and opportunities back home.
Opportunities none of us has the luxury of disregarding.
Craig DeRoche, Fmr House Michi, Novi, MI
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Thu. 08/06/09 09:18 AM
Engaging China
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Tom Watkins is right on with his comments and suggestion that top state leaders in Michigan and elsewhere in the United States should actively engage in constructive commercial partnerships with China. Here in Cambridge, we are talking with Chinese investors, scholars, and technology leaders every day. That is small wonder given that the fastest growing population of graduate students at M.I.T. (Massachusetts Institute of Technology) are Chinese.
The fact that the Chinese nation represents a market with a billion customers, and is the world's largest creditor of U.S. debt should give us ample motivation to take Mr. Watkins' advice and leaders, be they commercial or governmental, need to undertake a thoughtful and comprehensive approach to engagement with China. In 2008, the Chinese government determined that all Chinese school students should speak know and speak English by the 5th Grade. What that will mean in the near future is tremendous. My organization, Open Learning Exchange, dedicated to Quality Universal Basic Education - it is little wonder that China is one of our centers. Michigan, and Massachusetts have a great deal of experience with the intellectual and industrial know-how that the Chinese seek.
It is time for us to start that journey and get a seat at the table with our Asian counterpart. Mr. Watkins urges us to begin that journey. Yes, it is time to step up now.
Dr.Joe, Cambridge, MA
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Thu. 08/06/09 09:17 AM
Michigan should exploit rising Chinese economy
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Amen to Mr. Watkins' comments regarding Michigan's lack of leadership related to a formal statewide initiative to tap into the "China opportunity" as a potential investment in creating jobs for Michigan. As he so accurately notes, "The China wave has been pounding our shores for some time. Where is the strategy to make China work for us?"
Folks, China is not going to "go away," nor are the products we are inundated with that say "Made in China." The amount of US debt held by the Chinese is staggering. We can pretend this isn't happening, or ignore this all we want, but failure to take the initiative with the Chinese Government will only result in our eventually having to respond to them in ways we may not like. I think Tom Watkins' key points - that we should be on the offense instead of defense, and that thus far, our state's defense has been woefully getting battered on all sides - are dead on, It's time for the leadership in our state to actually lead...and this is a prime area to target.
MI gal, Holt, MI
I am in agreement with Watkins. Our leaders do indeed need to "get in the game" and make things happen with China. Our state has a lot to offer China, a country that is now an economic and soon to be military superpower. Michigan and Washington leaders need to wake up.
Timothy Abramczyk, Dearborn Hts, Mi |
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