China’s “Human Capital Gains”
The piece originally appears on LinkedIn, we reproduced it here under Kaifu Lee’s authorization. Kaifu is the founder of Chinese incubator Innovation Works , he also served as Google and Microsoft VP.
1.3 billion people. 20% of the world’s population.
The size of China’s population is a historical advantage that China has leveraged throughout its 5,000 years of history. This advantage enabled the construction of The Great Wall of China, a structural and engineering marvel that is one of the Wonders of the World. It enabled a quarter century of blistering economic development that pulled hundreds of millions of citizens out of poverty. China is projected to overtake the United States in GDP in 2016, but with a nation that has 4 times as many citizens, the per capita growth is still at its infant stages. Many may believe that China may lack in pure innovations.
中国の人口の多さはその5,000年の歴史を通じて、中国が利用してきた歴史的な強みである。この強みにより、驚異的な構造と工法で世界に存在する奇跡の1つとなっている万里の長城の建設が実現した。これによって、四半世紀で速やかに経済発展を遂げ、何億という市民が貧困状態からぬけだすことが可能となった。中国は2016年にGDPで米国を追い越すと予測されているが、4倍の数の人口を抱えており、1人当たりの成長率では未発達の段階にある。多くの人々は中国が純粋なイノベーションに欠けているのではないか、と考えるかもしれない。
The truth is that China often harnesses the scale of human capital towards uniquely innovative solutions.
Many individuals in the United States enjoy the expedited services of Amazon Prime, offering 2nd day shipping in the United States. Amazon is frequently seen as the paragon of excellence for logistics – having strategically situated fulfillment centers and streamlining inventory to quickly deliver product to loyal customers. The United States benefits from a mature delivery infrastructure network, since the nascent days of the Pony Express. China’s rise to economic prominence has occurred only within the previous quarter century, with a relatively poor delivery infrastructure.
アメリカの多くの人は国内翌日配送のAmazon Primeサービスを利用している。Amazonは頻繁に物流の模範であり、戦略的な物流センターの設置と合理化された在庫管理で顧客に迅速な配送を提供している。アメリカはPony Expressの登場以来、成熟した配送インフラネットワークの恩恵を受けている。中国の経済成長はまだ25年ほどしか経っておらず、比較的配送に関するインフラ整備は整っていない。
米国にいる多くの人々はAmazonの、米国内では2日で届くという迅速なサービスの恩恵を享受している。Amazonはしばしば、すばらしいロジスティクスの見本と考えられる。戦略上、重要な拠点に位置するフルフィルメントセンターを持ち、在庫を合理化して素早く忠実な顧客に商品を配達するのである。米国は、Pony Expressが始まった時代から、成熟した配送インフラネットワークから利益を得ている。中国が経済的に台頭するようになったのは、たった前四半世紀以内のことであり、配送インフラの質は比較的低い。
Nonetheless, many Chinese enterprising companies have come up with creative solutions to harness China’s inherent advantages of scale to achieve similar effects. One of China’s largest e-commerce giants, 360buy, has spoiled Chinese consumers with the concept of guaranteed same-day delivery. Place an order in the morning, and have it delivered to you in person a few hours later. 360buy accomplishes this monumental task by having a huge on-the-ground mobile delivery fleet concentrated in the most densely populated cities.
With the correspondingly large number of daily orders received, 360buy has been able to leverage a massively scalable work force to efficiently and quickly deliver product to its customers, leading to a superior e-commerce experience.
Additionally, this scale of human capital has similarly enabled the construction of many modern architectural feats. Consider Broad Group, a corporation previously known for manufacturing central air conditioning units. Through the continual process of simplifying and further streamlining the manufacturing process, Broad Group realized that similar techniques could be feasibly applied to the construction of entire buildings. Witness this recent YouTube video (http://www.youtube.com/watch?v=Hdpf-MQM9vY) that went viral depicting the incredible time lapse construction of a 30 story hotel in only two weeks!
Broad Group was able to achieve this remarkable feat through manufacturing a pre-fabricated set of building pieces, then having an army of construction workers expertly and quickly assembling the pieces for an end result that is incredibly sturdy (able to withstand a 9.0 earthquake), cost and time efficient, and environmentally sustainable. This concept of bringing to the traditionally laborious construction process a simple and effective solution for the masses is not unlike IKEA and the impact that it had on the home furnishing industry.
The incredible scale of human capital in China has enabled numerous advances. The truly exciting chapter for which to watch will be the ongoing transformation of China from its previous position as a low-cost labor producer to one moving forward off the heels of a highly-skilled workforce. We are still in the infant innings, and there are many exciting developments to come in the years ahead.
(Thanks to @mickey_du for his contribution)
