How to assure that China's rise does not come at Michigan's demise
The statewide reporting on the recent Beijing Auto Show captured the changes both in China's auto market and the country itself.
It should also be a wakeup call and a major catalyst for change by Michigan's leaders.
The reporting reinforces my experience in China and my more than 21 years of travel there. It should convince the governor that Michigan needs an aggressive plan to make China's rise and globalization work for us.
China can and must be part of the ingredients necessary to reinvent and revitalize Michigan's economy.
Sadly, there is no such plan in Michigan today or the will at the highest levels to begin crafting one. This is unacceptable in a day and age when ideas and jobs can and do move across the globe effortlessly.
It is clear that when it comes to China, Michigan is like the proverbial nine blind men holding an elephant. Each individual describes the animal quite differently depending on the part he is holding. There is no shared vision, no overall direction, no common agenda.
It's high time Michigan's leaders stopped using China for division and subtraction and started developing a plan to assure that China's rise results in addition and multiplication of jobs in Michigan.
There was a time when what happened in China had minimal impact on our lives. Those days are gone. What happens in China no longer stays in China.
The Asian behemoth is underwriting U.S. debt to the tune of $1 trillion and growing, has the fastest-growing large economy in the world, is producing more autos than America, and is intent on winning the race for clean, alternative energy technology.
Since the opening of China to the world by Deng Xiaoping, the leader who followed Mao Zedong, China is a rising economic superpower. The Chinese economy has grown by double digits for the past 20 years and the auto market remains in its infancy with an enormous growth potential.
It all adds up to countless business opportunities in China for Michigan companies willing to be creative and innovative. Further, the Chinese will continue to seek places to invest throughout the world we should be bending over backwards to make Michigan a hospitable place for such investment.
State government has an important role to play, once it stops looking at China through a rearview mirror and recognizes the reality of the situation and the enormity of the opportunities.
The Chinese market, with 1.3 billion people and a rising middle class, is the mother lode of 21st century global commerce. More than 300 million Chinese people have risen out of poverty in the last quarter century.
Leadership At The Local Level
The county executives from Wayne and Oakland, Robert Ficano and L. Brooks Patterson, along with Paul Gieleghem, chairman of the Macomb County Board of Commissioners, together with Commissioner Ed Bruley, Ken Lampar and State Representative Fred Miller are doing their part to build bridges. The have organized multiple trade missions, set up offices in China and encouraged their local community schools to begin to offer Mandarin Chinese to their students.
What is missing is a comprehensive statewide initiative to tap this rich vein of potential investment in ways to create jobs for our citizens and assure China's rise does not come at our demise.
Action Steps

Here are some steps that could be taken to enable Michigan to tap the rich China vein:
1. First, drop the China rhetoric that is not conducive to building positive relationships (what the Chinese call “guanxi”), conclude China is not going away and ask how to make its rise work for our state.
2. Seek advice from knowledgeable individuals inside and outside Michigan on what other states and nations are doing that we should emulate and what is uniquely Michigan that the Chinese want or need.
3. Convene a cross section of Chinese American community leaders from such groups as the Chinese Association of Greater Detroit, Chinese American Association, Asian and Pacific Islanders Chamber of Commerce, and Detroit Chinese Business Association and ask how the state can leverage their existing China relationships.
4. Brainstorm with all the various China experts and pull together an action plan that can position Michigan to take full advantage of the continuing rise of China, with emphasis on economic, cultural, agricultural, tourism and education initiatives.
The China wave will continue to come, we can do nothing and be swamped -- or learn to surf and ride the wave.
Remember the ancient Chinese saying about beginning with a single step? It is time Michigan broke into a run.
Tom Watkins is a business and education consultant in the U.S. and China. He served as Michigan's state superintendent of schools, 2001-05. He can be reached at tdwatkins@aol.com.
Comments
Dan Simms
Thu, May 27, 2010 : 2:21 a.m.
The only reason Chinese buy Chinese cars is because they can't afford the VW/Audis that the government workers/police get and taxi companies use. No one wants a Chinese car. Secondly, you have no idea the difficulty of being a foreign business in China without GUANXI. It's difficult if not impossible for any laowai to acquire it. It's not a 2 way street. Third, the only thing Asians care about in the US is getting the Harvard degree then returning home to show it off. Traveling does not equal living and studying there, with a Chinese family and on your own, and being embroiled in the "face" and "guanxi" tug of war.
David Briegel
Tue, May 25, 2010 : 6:36 p.m.
Thank You,.....Only to embrace the values of the Fortune 500 and Jesus! Cheap Stuff!
tracyann
Tue, May 25, 2010 : 9:11 a.m.
When my daughter was around 5 years old, she started looking to see where various products were made when we went shopping. One day she asked me "Almost everything says 'Made in China' so if we go to China will everything say 'Made in America'?" When I told her no she said "Why don't we just make this stuff here so we don't have to get it from China?" Why, indeed.
David Briegel
Sun, May 23, 2010 : 1:50 p.m.
Clearly the victors of Ronnie Reagan's cold war, the Chinese Communists are providing the necessary tools to spur capital investment. Those tools reflect the values of the investors. Child labor, slave labor, prison labor, plundering the natural resoursces and polluting the environment while shipping defective and poisoned products to the "free world". These are the values of the ruling bankster class here in "civilized" America. Once we sent over 55,000 of our finest to their deaths to stop the spread of communism. We just couldn't stop the Walton family. We were sold the concept of free trade while in reality we were buying unfair trade. Growth in China is an equal and opposite reaction to the demise of the American economy and jobs. You can dress it up and put whatever color lipstick on this you want but it won't change the reality of our dilemma.
picabia
Sat, May 22, 2010 : 4:51 p.m.
China, the government that gunned down young people in Tianemman square, the ones who brought us tainted toys and pet food and gave their own children poisoned milk is now going into the car business. Well, if the Chinese want to buy Chinese cars, fine. I will never buy a Chinese vehicle no matter what the price. If Americans start buying Chinese cars, I won't be among them, ever. Gandhi taught that non-cooperation with evil is a necessity.
Tom
Sat, May 22, 2010 : 11:28 a.m.
I just returned from a business trip to China last Saturday. I visited five cities, large and not so large (I don't think there is such a thing a small). What I found was a country undergoing a major transformation. There are building cranes across the horizon. Shanghai is as dynamic and cosmopolitan as cites get. I met with the deputy director of the national high speed railroad office. His plans are incredibly ambitious, including that of connecting with Europe within three years. Centralized government and significant financial resources will guarantee that this transformation and growth will continue for years to come. We have only one choice, get on board or get out of the way. As a proud American who believes that isolationism is dead, I have no intention of getting out of the way. This is the future and we have the opportunity and even obligation to be a part of it.
Diagenes
Sat, May 22, 2010 : 9:14 a.m.
It's a well reasoned article. China is a force to consider. Pretending that it does not exist will not make it go away or change its form of government or the represion of its people. A well thought out plan to trade with China could be to America's benefit. It might also help to change the political landscape in China. We must not let China steal our technology, trade unfairly, manipulate its currency or dump cheap products on the American market. Unfortuanely I am not sure there is the brain power or political will in Lansing or Washington to accomplish the goal.
Technojunkie
Sat, May 22, 2010 : 7:56 a.m.
How about if our MBAs figure out that the logistics costs and other headaches of moving production to China will wipe out most of the cost savings they thought they'd have? Long supply chains are inherently fragile too. Minimizing supply chain length would help insulate businesses from fuel price spikes, disruption from natural disasters and terrorism, etc. The cheap wages being paid in China won't last forever and are already starting to rise. Listen to your engineers!
roadsidedinerlover
Fri, May 21, 2010 : 10:56 p.m.
I will never support a Communist government that represses its people through brutality and poisons the environment and kills Tibetans for practicing their Budddist faith. I don't buy anything from China and Icertainly would never buy a Chinese car nor learn their language. I will never "ride the Chinese wave".