“If you think of the Chinese as yellow-skinned people of
a totally different race from us, you probably will never get to know them” –The Pocket Guide to
China
In 1943, the US Army handed
out military pamphlets to the GIs stationed in China. Fighting side by side
with the Chinese, the government promoted cultural exchange to strengthen its alliance.
At the time, China was a military strategic partner and not much more. 70 years
later, the need to understand China has increased far beyond just to the GIs.
As the most populous nation, the second biggest economy, and the fourth largest
country, China now demands the U.S.’s attention.
Though much has
changed about the views toward China, the increased attention did not
necessarily translate to increased understanding. As if staring at a piece of
abstract art, Americans are watching, but most do not know what to watch for. They
struggle to understand its complex political economy, dense language, and seemingly
insulated society. Despite the increased media coverage, language studies, and
travel opportunities, not much seems to make sense. Yet, as most Americans just
scratch their head and stare at the piece, the American China watchers have
been making the most out of it.
Ever since China
became a global interest after its leader, Deng Xiao Ping, decreed “to get rich
is glorious,” marking the shift to capitalism, the world has been eager to enter
China. Since then, the newfound attention has created a need for bridges to
connect the East and West. The West wanted to access the cheap labor, navigate
the government, and more recently, break into the market; the East wanted to attract
the foreign technology, management, and capital. As for these experts, they sought
an adventure and have reinvented their careers as China insiders. With
backgrounds in international affairs, economics, or journalism, American expats
use their academic training to analyze evidences and recommend actions. Through
reading dense academic research papers, conducting insider interviews, and
visiting firms and agencies in on-site due diligence trips , they figure out
the specific ins and outs of China and present their findings to clients, news
outlets, conferences, and publishers. Ranging
from topics such as the financial system, business law and practices,
government structure, to foreign relations, their detailed research has helped
firms and governments vie for economic and political interests. Adept at turning muddled data and into clear
cut action plans, they have excelled at institutions, think-tanks, consulting
firms, or investment research firms.
As experts, they
fulfill useful, if not expensive, roles. Given China’s presence, clients are
willing to go to great lengths for the insider economic, political, and
cultural developments since each detail bears great significance to foreign
relations, businesses, and investments. As a result, the high demand from clients
and the low supply of experts have allowed them to capitalize on the first mover
advantage and monopolize the market. They have the knowledge and the world is
willing to pay for it. With fees up to $13,000 per newsletter subscription annually
and opportunities at TV networks, conferences, and publishers, these savvy,
entrepreneurial expats have been able to make a good living out of their roles.
Yet before such
opportunities, they were just like any other American who stared idly at the
abstract art piece of China. It all began with their challenge to explore the
unknown. For many, the journey began with study abroad, English teaching, or
company assignments. Throughout the years, while their American peers trickled
back to the U.S. for home, for the better living standards, or the comfortable
familiarity, the China watchers stayed behind. Driven by their curiosity, zest,
and hard work, they caught up on their lack of cultural and language
understanding and created a life for themselves abroad. Undaunted by the media
portrayal, the language barrier, and the inherent career risks, they took the
risk and sought the adventure.
For instance, Bill
Bishop, the blogger of Sinocism, has reinvented his career as an online
journalist. Having starting out his career as a business executive, Bishop gave
up on climbing the corporate ladder and pursued his undergraduate Chinese
studies interest. Decades later, he has blossomed as an online Journalist with
his blog. Sinocism is a newsletter that compiles important China news stories to
more than 12,000 investors, policy makers, and diplomats. By providing timely
economic and political insights, Bishop has gained credibility and followers. His
growing influence has allowed him to write for the New York Times as well as
being named one of the top 100 foreign policy “Twitterati” by the Foreign
Policy Magazine. Having the foresight to anticipate for his 12,000 subscribers’
demand, he is now one of the preeminent western bloggers in China. Now, as
Bishop writes from his apartment in Beijing, his words influence companies, investors,
and policy makers worldwide.
Nicholas Consonery
from Eurasia Group, a political risk consultant firm, also seized opportunities
based on his Chinese interest. Complementing his Asian studies degree from
George Washing University and Furman University with a language program in
China, Consonery expanded his horizons. Pouring through hours of classes, rote
memorization, and uncomfortable practices, he mastered Mandarin. Since then, he
has worked as a private equity analyst in Tianjin, a US consulate member in
Shanghai, a security risk analyst in Washington D.C, and now as a top senior
analyst at Eurasia Group. As a regular expert commentator on networks such as
Bloomberg, CNBC, and Fox and contributor on the New York Times and the Wall
Street Journal, he has capitalized on China’s growing prominence. More than
just an interest, Consonery has developed a career all during his 20s and 30s.
In addition to natural
China enthusiasts, Michael Pettis, an established Wall Street trader also
joined in on the ride. Sparked by an interest in emerging markets, Pettis gave
up his Wall Street Managing Director position for opportunities in China. Though
he had little expertise in China, Pettis capitalized on his education,
transferred his skillsets, and became the University of Peking finance
professor and an influential blogger. On a day to day basis, he teaches
finance, observes economic patterns, theorizes future developments, and provide
commentaries on the future. Frequently quoted by finance magazines and praised
by the Wall Street Journal as a “brilliant economic thinker,” he leads the pact
of the China watching community with his timely insights. Furthermore, as a punk
rock enthusiast, he has also taken on the challenge to support and develop the
local music scene. As the owner of the Beijing’s punk night club, D22, he
creates opportunities for local bands, as well as his sponsored Chinese band, Carsick
Cars, to play. Though he is still known for his finance, his passion and
involvement in the local music scene is notable. Taking risks and living large
in China, Pettis carved out a new life in China.
While most China
watching community members are a fan of China, such is not the requirement. Carson
Block, the founder of Muddy Waters, is far from a China enthusiast. As a lawyer
by training, Block is wary of China’s “too good to be true” economic stories.
As a result, he founded Muddy Waters, a due diligence investment research
company aimed at detecting fraudulent accounting practices at Chinese
companies. Having assembled a team in China to track the company’s deliveries,
accuracy of its inventory, store sales number, among other numbers, Block seeks
to catch the cheaters for the investors. Furthermore, using his own research to
make trades himself, Block has achieved solid returns on his short selling.
With each report capable of dropping a stock drop down to 50%, investors have
rushed to sign up for what he has to say and conflicting Chinese business
owners have supposedly issued death threats. Block’s innovative idea instantly
made himself a finance household name and redefined his career.
China’s economic boom
has shifted the world’s attention and enabled these experts’ careers. Having
the foresight to recognize China’s growing importance and the courage to take
the risk, they have reinvented their careers.
Though so far they have been successful bridges to the East and West, this
all may become ephemeral. As time goes on, more and more will join in the China
watching community and their time being the world’s China consultant is
limited. Within decades, their roles may be replaced or eliminated as China
becomes more outward looking and the world becomes more globalized.
Furthermore, time will also test the validity of their insights as the future
unfolds. However, these expats’ lives are not wasted and bear greater meanings.
Beyond the service they provide and the bridge they built across the east and
west, what may be most valuable is their success story in China. More than
their acquired, learned ability to navigate within the complexity of the
Chinese government, language, and culture, it is their drive, risk-taking, and entrepreneurship
that allowed them to create new lives abroad. Inheriting early pioneers’ sense
for adventures, they have set out a good example for the future to follow.
Tearing down national borders, cultural differences, and xenophobic tensions,
they showed that it is still possible today to break out for adventures. For
this generation of China watchers, they have fulfilled their needs of improving
China’s transparency and connecting the East and West, but their most important
contribution is the reminder that the world is still full of unknowns and
adventures and rewards await those who have the drive, risk-taking, and
entrepreneurship to follow.
