Pacific Perspective
Pacific Perspective
On opposite shores
of the same seaSince Ping-Pong diplomacy and the 1972 Nixon visit to China, the promise of the China market has been a lure to western business executives. The refrain ... "With 1.3 billion people, certainly some will want to buy my product" was common. Now forces seem to be in place to realize this promise. What does this mean for Hawaii?
Stopping in Hawaii on his way to Washington, D.C., China's heir apparent, Vice President Hu Jintao, seemed to signal the U.S. foreign policy of engagement is working to benefit both countries.
Strategic thought leaders now suggest that an era of increasing cooperation with China and the United States is the most likely path for the immediate future. The events of 9/11 and the ensuing cooperation from China in the fight against terrorism has put the spotlight on what the two countries have in common in contrast to focusing on their differences. Terrorism is just one global issue where the policy of engagement can lead to mutual benefit of both countries. Other global issues of common concern include the environment and pollution; the war on drugs; health concerns, such as the AIDS epidemic; and the looming global energy shortage.
China-U.S. cooperation is indicated by China's active and constructive participation in the important global institutions such as the World Health Organization, the World Bank and the United Nations. The recent admission of China into the World Trade Organization is a positive signal that economic cooperation will increase. Trade relations with China are central to the U.S. policy of comprehensive engagement.
As China becomes more integrated into the global market-based economy and trading system, the process of economic reform within China will continue on the current path of prosperity. Concomitantly, China's stake in the stability and prosperity of East Asia will become vital. Indeed China's economic growth in Beijing and the coastal corridor from Shanghai to Hong Kong has been spectacular.
The United States seeks to expand U.S. exporters' and investors' access to the Chinese market. As China grows and develops, its needs for imported goods and services will grow even more rapidly. U.S. Trade Representative Robert B. Zoellick praised Chinese leaders for embracing globalization. "The decision to join the WTO, and to accept the disciplines and rules that lie at its heart, is the latest important step enabling China to navigate globalization's currents," he said.
Attractively positioned to benefit from this era of U.S.-China cooperation, Hawaii has a cultural environment that is user friendly for the Chinese. A flow of edu-tourism is under way. Industry study tours to the United States often book Hawaii as a first or last stop and are reminiscent of the 1960s Japanese business men that swarmed into U.S. factories to learn our best practices. Such tours are an opportunity to sell Hawaii's many advantages.
Typically, tourism becomes more prevalent with increasing wealth. Under China's current economic reform, an upper-income class is fast emerging and there is considerable pent-up demand for travel in this market segment. Capturing a significant share of the emerging China travel market will certainly enhance Hawaii's tourism industry. Despite the current visa barriers, today's tourism visionaries are planning their China marketing strategies.
Hawaii has more to offer China than sand, surf and sun. Hawaii leads the way with answers to common issues. Endeavors in aquaculture provide solutions to worldwide hunger; in solar-energy based water purification systems that save lives; and in hydrogen energy cell research may reduce global dependence on oil -- to note a few examples.
Beyond technology, Hawaii's unique contribution to the policy of U.S.-China engagement may be to share enduring models of successful cross-cultural understanding. Let us take the case of entrepreneurship as a reference. Most scholars agree that "culture matters" as a determinant of economic development. Market-driven economic development is dependent upon an entrepreneurial class. The entrepreneurial mandate is in turn derived from the moral character of the society, which in China is based on Confucianism. Family business with Confucian values provides for a vertically stable family order, paternalistic employee relations and bonds of trust associated with obligation. Now we can begin to understand the fundamental character of the Chinese entrepreneur. Yes, culture does matter.
This week Warren Buffett predicted a nuclear holocaust in the United States. Broadband cultural understanding is the best remedy to thwart the forecasted clash of civilizations.
James R. Wills Jr. is associate dean and executive secretary of the Academy of International Business at the University of Hawaii College of Business Administration. Reach him at Wills@cba.hawaii.edu.