The China Mirage

After three weeks in China, it’s clear Beijing is Silicon Valley’s only true competitor

Chinese entrepreneurs are totally pragmatic. They just want to find the fastest way to win. As cloning reaches its max, the next fastest way to win is innovation.

Take consumer drones. That’s basically hardware meeting software meeting design. Sounds like a typical Silicon Valley play to win, right? Well, DJI dominates the consumer drone market from China (Shenzhen) with 70 percent (!) global market share. DJI is a harbinger of many more cases like these to come. We just don’t see them yet.

Another Gosh! Wow! piece about China tech.

I remain highly skeptical.

We went through a similar cycle — albeit with outright screaming from people such as Clyde Prestowitz (whose Wikipedia entry is a masterwork of evading his past, but the credit for his book, Trading Places: How We Are Giving Our Future to Japan and How to Reclaim It, is a hint) — with Japan.

Where is Japan today?

China has an unpredictable government. It can derail everything at any time.

And the overwhelming desire to win leads to taking shortcuts that, in one way or another, are harmful to customers.

Previously here:

Get This As A Tattoo: China Business Is Different!

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