China's Self-appointed Communist Bureaucracy Remains the Nation's Source of Deadly Troubles
by George Zhibin Gu
(author of several new books: 1. China's global reach, 2. China and the new world order, and 3. Made in China.)
George Zhibin Gu responds to Tor Guimaraes's question of 25 April:
Tor has raised an interesting issue on the possibility of a fast-expanding Chinese middle class, which could help to sustain a positive domestic Chinese economy, independent of global financial crises in the future.
My feeling is this: A further expansion of a Chinese middle class is relevant, but there are deeper issues. First, China's global economic connections and trade are fundamental to the nation's growth, which will be even more significant as time passes. At the same time, there is no way for China to distance itself from any troubles in the global marketplace for now or in the future.
Second, an even more relevant issue is at home: That is, China's healthy social and economic development must be based on turning the government body from self-serving to a service provider. This issue is far from resolved as of today. Its failure would cause more harm, infinitely bigger than the adverse impacts of global financial crisis.
The following interview may shed some light on this deeper issue:
Heart of China's Problems
1. Question: What do you think is the biggest challenge for China today-both politically/economically and socially?
Answer from George Zhibin Gu: The government is no service provider. As such, there is no way to establish a law-based, fair modern society as well as modern organizations and businesses. In short, people's power remains weak. What is more, all market deals are turned into bureaucratic dealings.
2. Question: Is China (meaning a) the Government and b) the People) aware of the huge potential, which China has and will have in the global business world?
Answer: True, both parties are well aware of the giant potentials in the global marketplace. But China's government remains self-serving. So that whatever it does must benefit itself above all, which happens at the very expenses of society and people. At this time, all things in the society and business world remain twisted.
3. Question: You presented the 3 elements that "pulled China out of the mud"-what will China need for the next 10 years to actually be as successful as the theories suggest?
Answer: One leg is out of the mud, while the other leg remains in the mud. Getting the other leg out of the mud will be the focus of the next decade. Further analysis exists in my books.
4. Question: And finally, some statistics suggest that China will need 1.2 million (trained and partly English-speaking) staff in the Hospitality Industries (tourism, hotels, gastronomy, meetings industry). It's called the "war for talent." How long will it take to actually have those needed 1.2 million new hospitality staff in place and successfully working?
Answer: More experienced international managers and staffs are badly needed. For inbound travel has been skyrocketing, but services remain narrowly minded. For example, the domestic tourism industry remains inexperienced to provide extensive services to the sophisticated corporate and business travel communities from the outside world. In this regard, more experienced and knowledgeable international marketing and service professionals are badly needed. But at the staff level, Chinese employees would do provided that they get trained.
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John Eipper, Editor-in-Chief, Adrian College, MI 49221 USA