Key Point: People that lose their way “turtle,” and like to pretend and/or protect. They become fear-driven folks with a scarcity mentality. They pretend that things will eventually go back to the way things were in the “good old days,” and are dupes for every snake oil huckster that promises the “turn back the clock” lie. They also look for ways to try and protect their turf by most often crying out to the government to do something; create a regulatory fence to preserve their dwindling resources. In the meantime, what is happening around them is disruptive and rapidly advancing competition. At the macro-level, let’s take a look at what China’s market is like now, particularly in the entrepreneur sector. The following is borrowed from co-founder of Singularity University, Peter Diamandis’ blog:
“9-9-6: Work Ethic
While I love the Silicon Valley work ethic, what I found in China was unparalleled.
The mantra is 9-9-6… Or 9-12-6…
Meaning, entrepreneurs are working 9 a.m. to 9 p.m. (or midnight), six days per week.
Seriously, no joke.
Another important difference I found was the more militaristic, “all-powerful CEO” in China’s startups.
While in the U.S., a CEO may “guide” or “influence” his team, in China, what the CEO says is gospel. No discussion.
And when a CEO makes a decision, the company takes it and runs.
Chinese Innovation on the Rise:
While a decade ago, it might have been true that China was a copycat ecosystem, today that assumption is 100 percent wrong.
Chinese companies are innovating at a faster pace than I could have imagined, and it’s this innovation that has maintained a 9.71percent GDP annual growth rate.
One factor that is driving a vibrant entrepreneurial engine is the massive availability of capital.
Because the Chinese government has imposed very strict restrictions on the outflow of capital, the wealthy in China are investing more and more cash into Chinese entrepreneurs, driving a frenzied ecosystem and driving up valuations.
‘The typical Series A there ranges from $15 million to $100 million.
China has also committed to becoming a world leader in Artificial Intelligence. Just this past week, it laid out its development plan to achieve this by 2030, aiming to surpass its rivals technologically and build a domestic industry worth almost $150 billion.
My host (and friend) for my recent visit to Beijing, Dr. Kai-Fu Lee, the head of SInnovation (a $1.2B venture fund). Kai-Fu, a former Apple and Microsoft exec, was also the founding president of Google China.
Kai-Fu has an amazing record in investing in, and creating, a new generation of Chinese Unicorns (and pre-corns). He was kind enough to introduce me to three of these amazing companies: UISEE, VIPKid, and Face++.
UISEE takes a different approach on the self-driving car. Instead of aiming for public roads, UISEE has built autonomous driving vehicles for campuses, communities, parking structures, and more. This isn’t just a concept — their vehicles are operating and generating revenue.
VIPKid is massive and experiencing exponential growth… This startup has achieved $500 million in annual revenues in just two years! What do they do? They pair up, talented, underpaid American schoolteachers with foreign (mostly Chinese) students who want to learn English. But they do it with an amazing, easy interface. Last month they received over 80,000 applications to become teachers.
Face++ has built a revolutionary machine learning facial recognition system. Their software can recognize your face from live video better than any other software in the world. They have ranked No. 1 in almost every metric and competition. Already working with companies and the government, their ultimate goal is not just facial recognition, but to model the entire human brain.
These are just a few of the companies I came across that represent the radical innovation coming out of China.
My message to American entrepreneurs is don’t underestimate China as competition, or as an important future marketplace.
While most American entrepreneurs focus on the United States and ignore China, the opposite is not true… Chinese entrepreneurs are focused on China in the near term and America in the mid term.”
- Be aware of what’s happening at the edges of your personal and business boundaries. If you become too introspective or local, erosion may cause you to become weakened and defensive. Be a curious pioneer, relentlessly seeking abundant opportunity. As Diamandis points out regarding China; “an opportunity to ‘co-Innovate’ is important. Either develop a joint-product for China with a Chinese partner, or to partner with a local giant to bring your product/service to this massive and growing market.”
- “China is going from ‘deceptive’ to ‘disruptive.’” Who at a micro or macro level is doing this to you personally and in business? If you do not actively use your mental and literal passport, you’re going to be replaced. It’s just a matter of when. Why? You are blind; so “pretend and protect” rapidly becomes like buying a lottery ticket to get rich; a hopeless strategy of hope.
China-like in the Triangle,
One Millennial View: Oh great, we thought so-and-so over in accounting had a target on us, and turns out it’s a whole country of more than one billion people. Really though, I guess as Millennials, it’s just a great reminder to stay sharp, refrain from being complacent, and try to remain on the frontline of trendsetting.
Edited and published by Garrett Rubis