This is China! blog

I recently received an email query from a young American fellow who’s been working out of south China for the past five years, mostly in contract manufacturing. I’ve edited the letter to maintain his anonymity:

I seem to be plagued with constant thoughts of returning back to the states to go to school for an MBA or a JD, but I will turn 29 in November and I can’t wait until I am 35 to start earning a living…

I feel like I have a fairly limited perspective of world business and have been so focused on China for the last 5 years, I’m not so sure what the situation is like in the rest of the world.

My question to you is, would you recommend staying in China and gutting it out? Or is it worth it to try to get a higher degree in the US and do some networking?

I do speak Mandarin, conversationally fluent, and have quite a lot of QC and general China experience, is that alone enough to make me an attractive candidate to US multinationals?

I understand that this is not really up you ally, but I have been reading your blog for years and I trust you opinion.

To which I responded:

Thanks for the kind words about the blog.

Actually, you’re not the first American here in China with whom I’m acquainted who has been seriously considering returning to the States for good. I’m meeting an American friend on Friday for lunch who’s been in China likely nine years. He’s moving to Texas in a month or so with his very frightened Suzhounese wife; and another friend from New York City/Long Island figured that next year he’ll likely move back. I wouldn’t call it a mass migration, but the global economic downturn has certainly made everyone consider their situations.

As for returning to the U.S. in your situation (you’re younger than these guys I’m talking about), I’d suggest first seriously considering what region you intend to return to. The downturn Stateside seems to have dramatically affected certain industries and the areas in which they are concentrated. For instance, I wouldn’t council going to North Carolina for the textile business, which was seriously hit; the Research Triangle is not as strong as it used to be, too. However, if you wanted to begin to network in some of the green industries that have received U.S. government funding, Indiana is supposed to be a good place, and even some parts of Ohio (companies in the midwest got a lot of that funding). If you intend to return to China one day, you’d want to align your transition in the States with China industries and policies that the Chinese central government is strongly pushing; then, you return the conquering hero, having dug yourself out of the “import/export/sourcing” ghetto here in China.

Unfortunately, there are a lot of Western guys in that ghetto. We already know American consumer markets will not be coming back in strength the same way they had been; and the Europeans will always remain conservative. The problem with that trade sector is that you meet the same old problems after a while; and if you’re not the company owner, the work gets old real fast. It’s tough to feel like you’re advancing your personal and professional goals. And there’s a lot of Westerners who’ve stuck it out here in China who have similar levels of experience as yourself. So, you need to make yourself more special than the others!

I’d suggest for a young, bright fellow like yourself to move into a high-value services sector, and within that sector develop a specialty that allows you to toot your horn loudly. For instance, it could be law (IPR, international labor law, monopoly law, trade law) or finance or marketing (with your specific knowledge of China) et al. It kind of sounds like you’re burned out; so getting out of China for a bit isn’t a bad idea. If you’re looking for world perspective, though, I wouldn’t necessarily council returning to the States. How about taking a degree in Australia (so you have a base to explore the rest of Asia), or even the EU (more expensive, though)? But you’ll certainly get a broader perspective on world markets and the new world order forming up around Asia from any other country than bunker-America. Unfortunately, right now, the States is rather self-absorbed because of the economic disaster and the debacles in Iraq and Afghanistan. Heck, I’d even suggest Canada over the States, since Canadians were not at all touched by the financial meltdown. I’m not knocking the States; it’s just that folks back home figure they have enough on their plates without considering the rest of the world, too.

So, summary: figure out the sector->industry->specialty that will use what you’ve got and give you demi-god status; pick a place SOMEWHERE IN THE WORLD where you can learn and hone those skills, a place that will provide you a vantage point from which you can ponder the shift in balance of power from East to West and and where you can build a network of like minds that will help you along in achieving your worldly goals.

Any other suggestions for our friend?