It's All About Technology

As the representative for our new office in China, I have move back to Shanghai. In my daily interactions with Chinese businesses and public, one thing is extremely clear to me: It is all about new technology. China is no longer solely dependent on cheap labor for growth. The people here understands that in order to maintain its status as a global economic power, China needs to be more technically advanced. Most my conversations with potential partners and clients always touch upon importing foreign technology into China. Chinese businesses are eager to have newest technology to gain a competitive advantage in the market and are willing to pay for it. Also, their knowledge of the unique needs of the Chinese market helps adapt foreign technology to be better suited for China. What is even better is that the government is in full supports these efforts.

We see these developments especially in the healthcare/pharmaceutical and entertainment industries. Shanghai has become a prime location for R&D centers, taking advantage of favorable government policies, relatively low cost engineers and scientists, and access to the world's largest market, many foreign businesses are focused on developing new technology in China. Most recently, DreamWorks announced that they will work with their Chinese partners to jointly produce the next "Kung Fu Panda" movie and develop an entertainment district in Shanghai. For DreamWorks, it will gain access to China's creative talents and large market. For the Chinese, DreamWorks will provide much needed advances in animation technology. This is a win-win for both sides.