Up the value chain

China is dreaming up its own Silicon Valley.


Its young are flocking NE universities in the summer, learning about American culture and history.

While in San Jose, they visit Tech Museum.

Are ideas and innovation moving offshore?

I was told to “follow the money”.

Does anyone know what time it is? Doesn’t anyone even care? (Chicago).

Actually, they have been nickel-and-dime, with rising costs (of wages, inflation pressure etc…).

Either they move South to Vietnam, Cambodia etc… or up the value chain.

Moving of the mind instead of moving the factories.

In crisis, there is opportunity. (Inida after 4 decades of leapfrogging the manufacturing step, end up with inflation).

30 years ago, China did it, out of necessity (with obvious consequences such as wage pressures and pollution).

This time, it is forced to go beyond dorm-room refrigerators to solar panel and software development.

Already we saw Baidu. And cities which offer high rebates for film makers (free extras). Watch out Bollywood!

If history taught us anything, it is this: China made a huge mistake by burning its world-class vessels back in the 16th century.

It drifted away and distracted itself  with opium and orthodoxy. Now China wakes up, moves fast and away from its progress-resistant mode. It has no time to eat or spend its money.

Money and success feed themselves. And each Chinese is moving up the Maslow scale. So is the interior country (with each province’s RFP and coordinated initiatives),

to catch up with Coastal cities such as Shanghai. The latter have been on steroid, while the former adrenaline.

Turns out, China is doing what exactly anyone in its place would: follow the money because its leader said “to get rich is glorious”, in this case, optimizing the value chain and use all its resources (which means it will soon have to outsource, offshore and build Tech museum as well). The force of nature favors survival of the busiest. And China is busy building its own Silicon Valley.


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