Watkins: Michigan should build relationship with China

Watkins: Michigan should build relationship with China

I recently returned from China, where I have traveled countless times over the last 20 years, attempting to build economic, educational and cultural bridges.

China is a kaleidoscope of complexity and change. What has transpired in China over its 5,000-year history is amazing. The last 20 years, since the student massacre in Tinanmen Square, have been both remarkable and universally acknowledged.

There once was a time when what happened in China had minimal impact on our lives. Those days are gone.

What happens in China no longer just stays in China. We feel not only the ripple effect, we are being hit with a tsunami wave of change that will continue to wash upon our shores as the 21st century unfolds. How we adapt to and lead the changes that are coming will define our state and nation. As large and powerful as is China, few in Michigan or America know much about the country — its history, customs, geography, language, politics or people. This needs to change.

China is underwriting the U.S. debt to the tune of one trillion dollars and growing as our government goes on a spending spree to jump start our economy. China has the fastest growing, large economy in the world. Its economy has been expanding at double digits annually during the last two decades and “slowing” to 6-8 percent as the world economy constricts. As the global demand for goods from the “factory of the world” slows, the Chinese government is moving aggressively to stimulate the Chinese consumer market to spur growth.

For the first time ever China has produced more autos than America for four months in a row.

Michigan needs to ride the China wave

China’s rise does not need to come at Michigan’s demise. There is an opportunity to both sell goods and services to China and attract Chinese investment to our state. Michigan needs to get aggressive in building the “guanxi”/relationships necessary to make this happen.

The County Executives from Wayne and Oakland, Robert Ficano and L. Brooks Patterson, along with Paul Gieleghem, the Chairman of the Macomb County Board of Commissioners, are doing their part to build bridges to China.

The state universities, especially U of M., MSU, WSU and Oakland University have extensive academic and research bases in China. What is missing is a comprehensive statewide initiative to tap this rich vein of potential investment in ways to create jobs for our citizens.

China has been pounding our shores for sometime. Where is the strategy/plan to make the China wave work for us?

Michigan has much to offer the Chinese, from our world class system of higher education, technological know-how, abundant crops, golf, casinos, and personal and commercial property at fire-sale prices to name a few. Given the horrible pollution in China, there is a great opportunity for Michigan to make “green” off China’s dirt.

With 1.3 billion people, hundreds of millions that have climbed into the middle class, and hundreds of thousands of new millionaires, along with a push to modernize and invest overseas, there is not much the Chinese do not need or want.

Ford, GM, Amway and other Michigan companies have tapped the China market. They are doing quite well and helping to employ workers here in Michigan.

Michigan needs a globalization/China strategy that can make the rise of China and the other BRIC countries (Brazil, Russia, India and China) work for us.

Our political leaders need to stop using China as the 21st century boogieman as a means to scare workers that have suffered as Michigan’s fortunes have turned downward. This rhetoric may win votes but does nothing to create jobs or build relationships.

Are there issues with China such as fair trade, theft of intellectual property, currency manipulation and human rights that need to be addressed? Of course. However, leaders don’t stand on the sidelines and complain and blame, they get in the game to win.

Northwest/Delta airlines has re-instituted its nonstop flight to Shanghai, China. This flight has established a direct, two-way, economic bridge to China and has the potential to become the 21st century silk route.

Michigan leaders need to board a future NW/Delta nonstop flight to China on a quest to make sure the China bridge that has been built is a two way span that can create jobs and wealth right here in the Mitten State of Michigan.

Remember, the ancient Chinese saying, “the longest journey begins with a single step.”

Tom Watkins is a business and education consultant in the U.S. and China. He was Michigan’s State Superintendent of Schools from 2001-2005.

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