18 days in China...
Today, I returned to Leuven from an 18-day trip in China. I am very grateful to my school Vlerick – for putting this trip together in the first place, to my classmates and friends – for their companion, and to my family - for their support:).
The core of this trip was a 12-day MBA course on “International Management in China”. During the course, my MBA class spent a week in Beijing and five days in Shanghai, immersing in the cultural, social and business life of urban China. The course consisted of lectures, company visits, sightseeing and group projects. The lectures, which were delivered to us by numerous business and academic leaders, covered topics such as: understanding the macroeconomic policy, starting and developing a business, dealing with intellectual property issues and managing business-government relations. In order to get a flavor of how business is done on the ground, we would leave the classroom nearly every day to visit not only local subsidiaries of foreign multinationals, but also Chinese companies that have grown to the become relevant international players in their respective industries.
Parallel to the course, I was becoming increasingly amazed by how China’s single-party government had managed to rapidly grow the economy and improve the life standard of its people in the last 30 years. The predominant bias in the West is that only multi-party systems that foster fair political competition can lead to sustainable economic and social welfare; and that single-party systems are inherently flawed, corrupt and ultimately unsustainable (ex. USSR, the Eastern European communist countries and a dozen of African states). Well, China has proven the West wrong – China’s economic and social progress is attributed to a great extent to its single-party political system.
The question I kept asking myself was: will China keep its single-party system in its bright future, or will it have to transform its political system to a multi-party democracy? I argue that China’s system will gradually evolve into something in between these two extremes – a single-party system where the people will have a greater and faster say in policy making. The single-party system has so far enabled China to quickly develop policies and to be consistent in their implementation. Western democracies lack this focus and continuity in policy making: when the opposition comes to power, it is often reluctant to build upon what the previous government has already created. For example, in Macedonia, when the government changes, the new ruling coalition fires a significant part of the public administration staff and replaces it with people from its own ranks, thereby incurring a significant loss in knowledge and skills. Many of the economic and social policies set by the previous government are abandoned by the new government, although the old policies have perhaps just began to show results.
The challenge for China is to keep growing its economy and improving the life standard of its people. Only then can it justify its single-party system. One of the major problems that China is addressing is its growing income inequality, caused by the rapid economic growth and the rural-urban migration. The regional differences in GDP/capita are staggering: provinces in East and South-East China are significantly richer than those in Central and West China. The government is therefore heavily investing in moving jobs westwards, by investing in infrastructure and in rural development in the central and western provinces. China is also investing in social welfare: the government is preparing a health care reform (to be enforced next year), which will provide universal medical care to all Chinese people, regardless of their personal income level. A few days ago, I read in China Daily that children from rural China have a five times greater probability of dying, before the age of six, than children living in urban areas. The health care reform will address this issue.
We can’t have a discussion about China, without touching upon the issue of internet censorship. One of the first things I found surprising when arriving to China was that I wasn’t able to access Facebook – it is one of the many international websites (including YouTube and Twitter) the access to which is banned by the government. Through the notorious Great Firewall of China, the government forbids the creation, dissemination and access to any information that “endangers national security and honor of the state, undermines social stability or comments on the state’s policy towards religion.”
Before judging, we should realize that the overriding mission of the governing Communist Party of China is Social Harmony Above All, and the Party is prepared to go to great lengths to achieve its mission. Look at Google for example – they tried to defy the system (although they initially accepted to play by the Chinese rules so they can make money). A few months ago, Google disobeyed China by saying “we will no longer censor search results”. The outcome: the staff of Google China had to clear their desks, pack their suitcases and move to Hong Kong. When in China, do as the Chinese tell you to do, or else take your business elsewhere.
In my opinion, internet censorship is an unsustainable method of containment of public speech. Sooner or later, the Chinese government will have to loosen up the firewall. Chinese people are becoming increasingly better educated, and more capable of critical thinking. If this system is going to continue functioning, then the Chinese people will need to realize for themselves that they are better off in this system.
And now, back to the trip. From Shanghai, I flew with a group of friends to Guilin, a 1.3 million-citizen city in South China. Guilin was our base for some of the most amazing daily excursions of my life. The second day of our stay, we took a 3-hour boat cruise down the beautiful Li River, gazing at the strangely shaped rocks that make this river so unique. We then spent a few hours in and around the beautiful town of Yangshuo, visiting numerous breath-taking sites, including the Moon Hill. The next day, we took a 2.5-hour bus ride to a remote village called Dazhai. From there, we hiked for four hours to the village Pingan, traversing numerous mountains of rice terraces. Along the hike, we met several local villagers from the Zhuang minority, who were transporting goods on their backs from one village to the next. While we enjoyed our strenuous hike between the rice terraces, we also spent some relaxing time in the villages enjoying the local cuisine.
After three days of immersion in rural China, we went back to the urban and modern life. And what can be more urban and modern than Hong Kong? We enjoyed our evenings spent in Soho and Lan Kwai Fong, two small “quartiers” in the north of Hong Kong Island that are famous for their restaurants, bars and busy night life. During one of the three days in Hong Kong, we also explored the south part of the island, which is more residential. We stopped to discover the small communities of Aberdeen, Repulse Bay and Stanley, and went swimming in the Tai Tam Bay, near Stanley (the temperature was 28°C).

















