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I'm an Expert on War and Peace
Jeff LoCastro, August 17, 2011
Founder & President, NCCREA
I've recently had a frenzy of emails in response to the article Be Like
Mike: The Art of the Comp. The emails were generally from non-members
living outside of China who, I suppose enjoy the articles on
NCCREA.com. Of course all are welcome to enjoy the free content (hint:
members get even better stuff) but it's amusing that people who have
no stake, e.g., membership and no actual experience in China, get so
lathered up over some things. The suggestion by some was that I was
being "culturally insensitive" in my Be Like Mike piece; that I was hinting
that the Chinese don't have a culture of their own because they enjoy
western goods and services. Really? You see, I thought I was explaining
the intricacies of a very ancient culture and its affect on business and
marketing relationships.
It is understood that in all things China my perspective is that of
someone living and working in the country. With more expats in China
than ever before, some staying for multiple years, we are beginning to
see three very diverse groups emerging. These groups are becoming
more incompatible by the minute. The problem is, two of these groups
are completely unaware of the rift.
The tourist crowd believes they developed some expertise based on
their vacation to the Middle Kingdom. The tourist is ruffled by the
notion that others may be in-country as well. They want to have a
"China experience" and the presence of expats or other western folks
are a nuisance and infringe in their China episode. Their opinion
gathering only has a short duration and they seemingly can't concentrate
if others of their ilk are also around.
On a recent trip to Beijing this was quite evident. It was easy to
differentiate the tourist from the expat. The expat makes eye contact,
the tourist doesn't; almost to the point of being rude. I, who was
hungry for a little western communication, was totally shunned while in
Beijing. I couldn't make sense of it until I spoke to a young American
student studying for the summer at the Communications University of
China. This young woman from Texas, was not quite a tourist, but also
not quite an expat either. As I boarded the subway I gave her a friendly
smile of hello. She then did the unthinkable: She smiled back. I was
stunned. We talked for a couple minutes and then I said, "what's with
the tourists here . . . ?" Before I could finish she jumped on that and
replied, " I know! They are so rude aren't they?" I felt confirmed. She
continued, " I think they want to pretend we don't exist. To see other
westerners is ruining their 'Chinese thing.' So they just ignore us." I
smiled broadly. She continued, "It's as if they are angry that they are not
the only one's in the city." As we approached her stop at Gaobeidian
Station, I thanked her for independently confirming everything I had
been experiencing. I was not alone.
The tourist is not a dangerous breed. They seek not to direct the
national debate in their home countries and neither the expats nor the
CNC take them seriously when they expound on their expertise. They
are a bit of fly buzzing around your head; annoying, but harmless.
The Cliff's Notes Crowd are bit more problematic. The CNC firmly
believe they are the experts. They are so wrapped-up in opinion and
shouting to be heard that they remain clueless to the notion that those
with direct, actual, long-term, residence-visa types might know a wee
bit more.
The danger of the CNC is they are the ones educating, writing, opining,
and framing the China debate in their home countries. I recently spoke
to Fons Tuinstra, President of the China Speakers Bureau. He had
reached-out to me based on my affiliation with the NCCREA in the
hopes of recruiting me as a potential speaker. He said they are looking
for people in the US and Europe with the ability to "speak-up on China
related issues in the mainstream media." When I told him I wasn't
residing in the US or Europe, that I was actually in China, his voice sank.
He suddenly felt we "didn't have a match." Okay . . . you called me, Fons.
The more important fact is that actually being in China was a handicap;
to speak on China related issues from an actual current knowledge base
of China was a negative. I asked Fons if he was having any difficulty
filling those speakers roles. He told me that business has never been
better; that he is swamped. I believe him. Many times the CNC are
those with media connections, but little else in the way of authentic
experience. That's why they are the CNC. It's a shame Fons doesn't see
that as a problem. But then again, Fons is not in China. He's in Belgium
(yes, Belgium) and clearly a charter member of the CNC.
Further, it is the CNC that are typically the ones advising politicians,
policy makers, and business leaders. I think politicians in the west are
ill-informed enough on a bevy of subjects to add China to the mix. What
is more troubling is that CNC's build there knowledge base by talking to
other CNCers who in turn build from other CNCers. Honestly, how else
would one do it from an armchair in St. Louis? Or Belgium? It's the
drinking of their own bath water.
CNC's also firmly believe that they can pop over and the Chinese open
the proverbial golden gates for them. Sure they may sell a few things
while here, but the fact is that Chinese do not "let you in" without
commitment, without a promise.
I was recently contacted by a gentleman from the Chicago area who has
raised a fairly sizable "China Investment Fund." He is a very bright,
educated guy and on a personal level I enjoyed the conversation
tremendously. However, the more we spoke, he appeared to be a
classic CNC. He had only visited China few times and had never spent
more than seven days in-country on each visit let alone actually worked
in China. He simply decided several years ago to market himself as a
"China Expert", learned a few key CNC phrases and investors began
to throw money at him. Shocking. Astounding. But an altogether
true (and fairly common) occurrence.
The expat is a different breed altogether. They are the ones to whom
no one talks. And for good reason; they are actually in China doing
things with the Chinese every day. It's easier for the mainstream media
to hook-up with the CNC rather than, for example, the expat business
leader in Xi'an doing the heavy lifting. The expats, on a daily basis see
their politicians, journalists, business leaders, business school professors
and their students advanced as their countries "experts" talking,
writing, and pontificating at every opportunity on China. And these
expats see them getting it wrong everytime.
For example, in a recent article on KFC entitled KFC's Explosive Growth
in China by Maggie Starvish, published June 17, 2011, by Harvard Business
School she suggests that KFC management acted brilliantly when they
exclusively tailored their menu to the Chinese palate. Ms. Starvish draws
her conclusions based on research conducted in part by
Prof. David E. Bell and Senior Researcher, Mary Shelman also of Harvard
Business School. The article cites a long list of Chinese food items KFC
put on the menu in their effort to be "culturally sensitive" and drive
business. It further states that these Chinese items are very popular.
The article was astounding in its lack of any real knowledge and was just
outright wrong at every level. The piece even features a photo of a
supposed KFC restaurant in full pagoda style as an example of a typical
KFC establishment. Yes, perhaps, somewhere in China their may be that
pagoda KFC, but it so far from the norm as to be intentionally
misleading. Clearly Ms. Starvish, Prof. Bell, and Ms. Shelman, writing
from Summerville, Massachusetts have never actually been to
China . . . or even talked with anyone who has. They do however
quote, Sam Su, the CEO of the China Division of KFC as the foundation
of many of their conclusions. As they authors/experts are all CNC's
they don't understand that when someone with as high a profile as
Mr. Su speaks, he is also speaking to be heard by the powers-
that-be. One must take what is said and sift it through the government
relations filter. Mr. Su can't come right out and say that Chinese
customers come to KFC because they want American food, an American
adventure, to be treated with the egalitarian experience that American
"fast-food" delivers, that the restrooms are clean and well stocked, have
both hot and cold running water, and the air-conditioning is always
running in hot weather and the heat in on in cold. Can't do it, can't
say it. Not because their is some "law" prohibiting it, but rather
the constant dance between enterprise and government. The only
ones who would understand the realities of Chinese communication is
the expat: Living, working, building in China. The research in the
article was based on, as is all others, faulty research of other CNC's,
improper conclusions, and a fundamental lack of understanding of the
dynamics involved.
Personally gathered empirical evidence in scores of cities in China, and
(calorically regrettable) having spent thousands of yuan on KFC suggests
a wholly different conclusion. The fact is, the Chinese love KFC as KFC
because it is KFC. (See Be Like Mike: The Art of the Comp). Sure they
have the 'egg tart' on the menu, but no one's eating it. A walk into any
KFC in China is like walking into any KFC in the US: Lots of people eating
buckets of chicken, fries, mashed potatoes, gravy, cobettes, and
finishing with a soft-serve cone or sundae. They are even eating the
very popular "New Orleans Chicken Sandwich" and the tortilla rolled
"Mexican Twister" chicken wraps with spicy "salsa" (not Sichuan sauce as
the article states). The author of the KFC article is a classic CNC.
Expats discover, without even trying, dozens of these miscarriages of
fact everyday. The incompatibility of these groups stems from the
expats exasperation over the endless wave of individuals promoting
themselves as China experts (with no actual knowledge), the flood of
people essentially constituting the China debate in their home countries
(without any practical experience), and need for the CNC to thrust
their opinions upon everyone, including the expat (without a clue as to
what an "expat" actually is.)
Metaphorically speaking, the Tourist is the person who purchased War
and Peace and is intending to read it but has not done so, yet has some
very detailed opinions on the novel based on the cover art. 
The CNC bought the book, but has only read the first 10
pages then, as mentioned earlier, reads the Cliff's Notes
and suddenly becomes the recognized authority on the
subject. The Expat, however, not only bought the
book, but went to Russia to read it and attended the
Tolstoy lecture series at Lomonosov Moscow State University in order to
better understand what the heck Tolstoy was talking about. Given this,
if you were the expat, you'd likely get a little frosty when the tourist
or the CNC wanted to debate and contradict your knowledge of the
motivations of Maria Feodorovna or Pierre Bezukhov.
As China grows and develops, the need for individuals that do
understand and can explain to others the oddities, extremes,
inconsistencies, changes in policy, shifts in attitude, pace of change,
historical influences and national posturing that shapes the experience
called China will also grow. Every expat I have come in contact with finds
themselves more at odds with those that have no genuine knowledge,
but have convinced others that they do. The longer the expat stays in
China, the more irritated they become at the fabrications, the
mis-information, and the habitual piggy-backing of bad research and
intelligence in the name of "expertise."
So I say to those that shouted "cultural insensitivity" at the Be Like
Mike: The Art of the Comp article: 1) Join NCCREA and get the complete
picture, 2) Move to China. Work, live, start a business or two, live as a
resident, make some real friends, acquire some actual knowledge
before forming an opinion. Because those with whom you are piggy-
backing are just plain wrong.
COPYRIGHT 2011 JEFF LOCASTRO
DISTRIBUTED BY NCCREA
CHANGZHI, SHANXI, PRC
Contact the author at: Jeff@NCCREA.com or Jeff@CaliforniaSecured.com









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