China Internet

China's Internet industry has attracted significant amount of attention from investors abroad. By talking to people there and reading what the industry experts say, I observed some interesting characteristics of the China Internet market:

1. China's Internet users reached 100 million this year, according to China Internet Network Information Center (CNNIC). Although a small percentage of Chinese population, it ranked No. 2 in the world behind the United States. With its GDP growth at 9% for the past ten years, it's not difficult to see that China will become the No.1 Internet player in the world in the foreseeable future.
2. More than 70% of Chinese Internet users are under the age of 30 (see Morgan Stanley report on China Internet Trends). That's why most Internet portals such as Sina, Sohu, and Netease have large amount of ring-tones, downloads, and other fun-seeking content. The flip side of it is that there is less content for knowledge-seeking and business information than in the US.
3. With more than 350 million mobile phone users and low PC installation, China Internet is mobile-centric rather than PC-centric. Morgan Stanley analysts estimate mobile value-added ervices (MVAS) contributed $770 million in revenue to the Internet industry in 2004.
4. Finally, China Internet space seems to be a combination of online and off-line model, so called "click plus brick." This has to do with Chinese strong sense of relationships and love for face-to-face connections. This aspect of social fabric is deeply rooted in the culture and is not going away any time soon.

I do think China Internet is a very exciting play ground with the brightest people. While the US is leading the innovation in this field, the smart entrepreneurs know how to leverage it and adapt to local taste. The fact that most first-movers die and fast-followers succeed may let China leapfrog. No wonder so much money is going to China Internet industry!

China business, emerging markets, Internet, VC, China

Not-Just-For-Profit

I found the concept of Not-Just-For-Profit group very interesting. We can clearly see the profit-driven business model resulted serious market failures and created the extreme wealth and poverty in the world, which in term causes many social economic problems and environmental imbalance. The Not-Just-For-Profit group promote five points for any businesses in order to succeed in the long run: 1) profit-making; 2) community; 3) ethics; 4) individuals; and 5) environment. To me, this is more holistic view of business.

Making a Difference Creatively

Talking about making a difference, one of the most creative social entrepreneurial projects I have ever seen is the "Impression Liu Sanjie" in Guilin in the southern part of China. It is a grand musical show directed by Zhang Yimong, the famous director in China, on the largest natural theatre in the world consisting of area of 2 km long Li Jiang river and 12 peaks as stage setting.

The magnificent background setting, artistic neon lighting, and celestial beauty of the show took my breath away. The story is about a legendary figure Liu Sanjie who represents the beauty, love, and courage. Much has changed in the outside world, but people in this remote village are still singing the old songs... Time seems stopped here.

What's different about this musical show is that it's actually a poverty-alleviation project. The average income for the farmers there is less than $10 a month. Thousands of people from the surrounding villages participated in the show. Each show employs 600 local village performers. Each person received $3 for the performance he/she attended. It attracts the significant amount of tourists to the area. The tickets cost anywhere between $20 - $80. This is absolutely a world-class show - as someone said: "a masterpiece by the Creator and man."

I was deeply moved and inspired by the show. It taught me that there are many different ways to make a difference, and you just have to be creative!

China, musical, tourism, entertainment

My Trip to China

My trips to China have always been a wild experience mixed with excitement and confusion. Even as a native Chinese who grew up and had most of my education there, China's dazzling speed of changes makes me feel that I am in a foreign country each time.

Most of my encounters in China have been with old and new friends, local entrepreneurs, foreign investors, government officials, returnees, multi-national executives, Stanford alumni, etc. It's interesting to see a wide variety of perspectives from these people. Again, they are mixed with excitement and confusion.

Looking at the bright side, China has attracted the best entrepreneurs, business people, and in the recent years, flooded with investment money. Someone from a prominent venture capital firm told me that Shanghai (I assume Beijing too) is like the Silicon Valley a few years ago with most innovation and exciting start-ups going on. Hopefully, it will learn from the Silicon Valley and not end up waking up in another bursted bubble. But who knows?

Talking to the taxi drivers is one of the good ways to find out the real stories of people's lives. The taxi drivers in Beijing and Shanghai, who are making $300 per month on average, are the mouths of the cities. One big complaint I often heard is that the widening gap of the rich and poor. Life for some people is better, but for the majority it becomes harder. This time, Beijing's tax drivers complained about the terrible traffic - it's unbearable. I found Shanghai is much better than Beijing in this regard.

Having been living in California for more than ten years, the blue sky and fresh air are the things I missed the most when I am in China. One of my friends told me that the Bay Area is the most beautiful place she has visited (she has been to many foreign countries including Europe). I remembered I was thinking about Highway 101 and ugly constructions along the side when she said that. But after three weeks in China, my eyes were brightened by the green color and beautiful landscapes when I got off San Francisco International Airport. Everywhere I looked is like a picture in the dream! I couldn't wait to roll down my car window on the ugly Highway 101 to breathe the fresh air!

China, entrepreneurship, emerging markets, China business