My reverse culture shock and 4 trends in China that you need to know

In the last piece, I wrote about the new age of consumerism has arrived in China. I returned to live in China after over a decade studying and living in the U.S. and around the world. 

Today, I wanted to start with an anecdote of my reverse culture shock and how "backward" I felt with an oatmeal online order.

A few weeks ago, I was house-sitting for a friend in Beijing. He was in San Francisco on a business trip. Both of us have been living between the U.S. and China. 

I was missing my go-to oatmeal choice and wrote to him, "Bob's Red Mill oats is better than Quaker. " 

He responded, "Nice. Get some for the house."

I told him with confidence that, "Well. it's not available in China. I always get it in Whole Foods while in the U.S." 

Then I checked JD.com and my face turned red. It is sold at similar price as in the U.S. and I clicked "order". 

My friend was returning to Beijing the next day. I thought there was no way to get the oatmeal before his return. But I was wrong again. The oatmeal was delivered to me first thing the next morning. 

My friend was happy to see the oatmeal I recommended upon return. 

This example illustrates 2 important trends that happened in China in 2017. 

First, accessibility to global brands at the finger tip - one tap away on Taobao, TMall or JD.com.

Second, extreme fast logistics system, as exemplified by JD.com's own logistics network. Granted that China still benefits from cheap labor and the hardworking culture. However, technology is an important enabler. 

Photo below features the JD delivery team (photo credit Forbes.com)

In the past, every time I return home, I would bring half suitcase of vitamins, nuts and skincare products because the price difference is so sharp to buy imported goods in China. This is all changing. 

I am just one of the thousands overseas returnees who are experiencing jaw-dropping reverse culture shock of how convenient, efficient and safe China has become and how accessibility to high quality global goods has evolved in just a few short years. It shackled my ideas about China and I learned to open arms to fully embrace the new China as I will tell you today. 

Four Key Trends in China in 2017

In mid 2017, a new word has been coined in China "The New Four Great Inventions". Ancient China is known for Compass, Gunpowder, Papermaking and Printing, collectively they are called "The Four Great Inventions". The 2017 version include:

(1) High Speed Rail way

(2) Mobile Payment

(3) E-commerce

(4) Bike Sharing

1.High Speed Railway: a unique China feature

(photo from Wikipedia)

Over the last decade, China has invested heavily in basic infrastructure. If America is a country on the wheels, then China has become a country on the rail. According to a 2016 State report, China plans to spend 3.5 trillion RMB (~$503 billion) by 2020 to expand the high-speed rail network to 30,000 kilometers (18,650 miles). As a consumer in 2018, I have already felt the benefit of fast and easy transportation and less dependency on the airplanes or wheels. 

Fast and efficient ground transportation provides a skeleton for more collaboration between cities and within cities. Now Guangzhou to Shenzhen is 30 min and Hangzhou to Shanghai (125mile) is only 59 min by train. This makes Hangzhou, where Alibaba HQ is located, a satellite city of Shanghai. It is worth noticing that the economy of scale makes it more cost effective and time efficient for China to build infrastructure than other countries.

Moreover, the quality of infrastructure has also increased. I used to avoid train stations due to the dirty environment. However, the new railway station in my hometown (a 4th city in China) makes me feel like stepping into a nice airport. The upgrade of infrastructure has resulted in more commute and collaboration among people from regions of China, which expands over 5 timezones. 

(photo credit: The Telegraph)

High Speed Railway Network has meanings beyond domestic China. Once the Belt and Road initiative connects Europe and Asia by rail, we would no longer rely on airplanes to get to Europe. It will change the geopolitical landscape of the world. 

2. Mobile Payment:  

Thanks to Alibaba and Tencent, the duo have fiercely competed with each other and collectively popularized mobile payment via Alipay and WeChat Pay. Now it is possible to pay everything with a smartphone, even in the most remote villages. 

Interestingly, mobile payments also reduced theft rate. In the past, people always wore backpacks in the front while taking subways. It is no longer the case. Nowadays, people do not bring a cash and the phone is a swiss army knife that includes digital wallets. 

3. E-commerce: 

With the ease of mobile payment and a ultra developed logistics network, you can get everything delivered to your door step with a peace of mind- food delivered via Meituan and grocery delivered via JD.com or Taobao. Some housewives in 1st tier cities even consider removing fridges from home as food and grocery can be delivered within a few hours of purchase. Automatic vendor machines are in every office building, even in the hospital I visited. 

In the US, I have the habit of going to Whole foods or Trader Joe's to buy groceries as delivery fee can be pricey. However, in China, due to cheap labor, everything can be delivered at neglectable price. The downside is the fear of becoming a "couch potato" because I could literally spend all day at home. 

4. Bike Sharing: dock-free bikes

In my article Did Uber fail in China? I detailed the impact of Uber on China's entrepreneurship community with the legacy of "The Uber China Mafia" and the wave of bike sharing apps. As the weather starts to freeze, the popularity of bike sharing has also decreased. Now, everyone is talking about whether Ofo or Mobike would merge and how Didi will play a role in bike sharing. Like everything in China, hot topics can be ephemeral as for the last 4 months, bike sharing is no longer the buzzword, and the new "all in" trend is Blockchain. 

For the curious mind, Mobike and ofo are great examples of the future of apps in China. It may no longer needs an app approved by Apple Store as WeChat Mini Program is sufficient to function as an app within WeChat ecosystem. 

One Caveat - The Way of Thinking

Yes, coming back to China has been eye-opening and convenient. . In a given time, I can get more things done in China than stuck in traffic in LA. The pollution has been better controlled. The government took an effort to shut down many factories and I noticed an improvement of air quality compared to summer 2016. Pollution is no longer a concerning factor for me to work in China. 

I must admit my struggle, which is another part of the reverse culture shock — the way of thinking. Over the years, I have been converted to Starbuck's way of "Happiness is in the choices" and America's way of direct communications. I value choices and the ability to be oneself. 

When I returned home to live with my parents, they think I am "weird" - that I don't eat meat as a "pescatarian" and stay away from sugar, salt or oil. When I was writing my book in a remote mountain area with Ace-Hotel-like interior and Cocomat high end mattress, I requested to have a light meal with less oil but the ayi (a local who cooks food for boutique hotels) told me "That doesn't taste good." In America, a paying customer's reasonable requests are always met if possible. But in China, it is the local's responsibility to show the right way to do things. 

In a Didi ride home, the driver told me "You need 1 year to stay 'dumb 'and 'get grounded' (接地气) as an overseas returnees to get used to China. The slow lifestyle from the West does not work in China. We adapt things in local ways. That's why Uber couldn't compete with Didi. " 

I was reminded that Shanghai was once regarded as "Paris of the East" and in the 1930s before the World War II, China is as developed as Europe. After the war, China went through a difficult 20th century as a closed up and poor country. It may not be exaggeration that in the 21st century, China is making a come back .