I believe you need to read Thomas Friedman, a columnist for The New York Times with a deep interest in China. Mr. Friedman has mostly been filing columns from various parts of China for some weeks now--with an exception or two.
Consequently, for the good folks who chose not to pay to read Thomas Friedman and the other influential columnists in The Times, I am reproducing in full two of Mr. Friedman's most recent columns, calling upon the vigilant Angels of intellectual property rights to excuse me only because I am a member of the club.
There is a techie adage that goes like this: In China or Japan the nail that stands up gets hammered, while in Silicon Valley the nail that stands up drives a Ferrari and has stock options. Underlying that adage is a certain American confidence that whatever we lack in preparing our kids with strong fundamentals in math and science, we make up for by encouraging our best students to be independent, creative thinkers.
There is a lot of truth to that. Even the Chinese will tell you that they've been good at making the next new thing, and copying the next new thing, but not imagining the next new thing. That may be about to change. Confident that its best K-12 students will usually outperform America's in math and science, China is focusing on how to transform its classrooms so students become more innovative.
"Although we are enjoying a very fast growth of our economy, we own very little intellectual property," Wu Qidi, China's vice minister of education, told me. "We are so proud of China's four great inventions [in the past]: the compass, paper-making, printing and gunpowder. But in the following centuries we did not keep up that pace of invention. Those inventions fully prove what the Chinese people are capable of doing - so why not now? We need to get back to that nature." Nurturing more "creative thinking and entrepreneurship are the exact issues we are putting attention to today." But this bumps head-on against Chinese culture and politics, which still emphasize conformity.
But for how much longer? Check out Microsoft Research Asia, the research center Bill Gates set up in Beijing to draw on Chinese brainpower. In 1998, Microsoft gave IQ tests to some 2,000 top Chinese engineers and scientists and hired 20. Today it has 200 full-time Chinese researchers. Harry Shum, a Carnegie Mellon-trained computer engineer who runs the lab, has a very clear view of what Chinese innovators can do, given the right environment. The Siggraph convention is the premier global conference for computer graphics and interactive technologies. At Siggraph 2005, 98 papers were published from research institutes all over the world.
Nine of them - almost 10 percent - came from Microsoft's Chinese research center, beating out M.I.T. and Stanford. Dr. Shum said: "In 1999 we had one paper published. In 2000, we had one. In 2001, we had two. In 2002, we had four. In 2003 we had three. In 2004, we had five, and this year we are very lucky to have nine." Do you see a pattern?
In addition, Microsoft Beijing has contributed more than 100 new technologies for current Microsoft products - from the Xbox to Windows. That's a huge leap in seven years, although, outside the hothouses like Microsoft, China still has a way to go.
Dr. Shum said: "A Chinese journalist once asked me, 'Harry, tell me honestly, what is the difference between China and the U.S.? How far is China behind?' I joked, 'Well, you know, the difference between China high-tech and American high-tech is only three months - if you don't count creativity.' When I was a student in China 20 years ago, we didn't even know what was happening in the U.S. Now, anytime an M.I.T. guy puts up something on the Internet, students in China can absorb it in three months.
"But could someone here create it? That is a whole other issue. I learned mostly about how to do research right at Carnegie Mellon. ... Before you create anything new, you need to understand what is already there. Once you have this foundation, being creative can be trainable. China is building that foundation. So very soon, in 10 or 20 years, you will see a flood of top-quality research papers from China."
Once more original ideas emerge, though, China will need more venture capital and the rule of law to get them to market. "Some aspects of Chinese culture did not encourage independent thinking," Dr. Shum said. "But with venture capital coming into this country, it will definitely inspire a new generation of Chinese entrepreneurs. I will be teaching a class at Tsinghua University next year on how to do technology-based ventures. ... You have technology in Chinese universities, but people don't know what to do with it - how to marketize it."
A few of his young Chinese inventors demonstrated their new products for me. I noticed that several of them had little granite trophies lined up on their shelves. I asked one of them, who had seven or eight blocks on her shelf, "What are those?" She said the researchers got them from Microsoft every time they invented something that got patented.
There are only about 60 gold-standard green buildings in the world - that is, buildings certified by the U.S. Green Building Council as having been made with the materials and systems that best reduce waste, emissions and energy use. One of those buildings is in Beijing - China's Ministry of Science and Technology, at 55 Yuyuantan Nanlu Street.
I toured it the other day with Robert Watson from the Natural Resources Defense Council, who advised China in designing the building. What struck me most was how much stuff in China's greenest building was labeled "Made in China."
Get used to it. In China, conservation is not a "personal virtue," as Dick Cheney would say. Today it is a necessity. It was so polluted in Beijing the other day you could not make out buildings six blocks away. That's the bad news. Here's the good news: China's leaders and business community know it. They know that as China grows more prosperous, and more Chinese buy homes and cars, it must urgently adopt green technologies; otherwise, it will destroy its environment and its people. Green technology will decide whether China continues on its current growth path or chokes itself to death. So green innovation is starting to mushroom in China.
And what's the U.S. doing as green technology is emerging as the most important industry of the 21st century? Let's see: the Bush team is telling our manufacturers they don't have to improve auto mileage standards or appliance efficiency, is looking to ease regulations on oil refiners and is rejecting a gas tax that would help shift America to hybrid vehicles.
We should be doing just the opposite: creating more pressures and incentives so our companies will innovate and dominate the next great industry. You think China is cleaning our clock now with cheap clothing? Wait a decade, when we'll have to import our green technology from Beijing, just as we have to import hybrid motors today from Japan.
Green China will be much more challenging than Red China. Look around the nine-story Ministry of Science and Technology building. Yes, a lot of cool things here are from Europe, and some are from the U.S.
But what about the porous pavement bricks, made of fly ash, a byproduct of coal combustion that allows storm water to flow through and be reabsorbed into the Beijing aquifer? Made in China. The photovoltaic panels that provide 10 percent of the building's electricity from sunlight? Made in China. The solar hot water system? Made in China. The soil substitute in the building's roof garden that is 75 percent lighter than regular dirt and holds three to four times more water per cubic foot? Made in China. The concrete building blocks filled with insulating foam that keeps you warmer in the winter and cooler in the summer? Made in China, by a U.S.-owned company. The water-free urinals? Made for the China market by a U.S.-owned company.
Jack Perkowski, who runs Asimco Technologies, the huge China-based auto parts maker, told me where this is heading: "As China moves from the second-largest market to the first in autos ... the industry here will have to come up with transport that is more affordable, fuel-efficient and environmentally sound."
As green technologies get adopted here and gain scale - Mr. Perkowski cited a Chinese auto company now rushing to develop a green diesel engine for passenger cars - the Chinese will set the standards for the world.
"So they will become technology exporters rather than importers," he said. And because of the unique needs of China and the fact that it will become the biggest market for any product, the Chinese will "innovate at their affordability level." Once they come up with low-cost solutions that work inside China, they will take them global at China prices.
The China Daily reported that China's 11th five-year plan, which starts soon, includes a program to sharply reduce China's energy usage per unit of G.D.P. by 2010. "To hit the target, a huge business potential will be open to investors," Zhou Dadi, director of China's top energy research institute, told a forum held by the paper.
"China is growing three times as fast as we are," Mr. Watson said, "[so] a lot of innovation is going to happen here, and once it is introduced [on the low-cost China platform] it is going to spread a lot faster. ... We are not the only source of innovation on the planet. The Japanese and Europeans are here in a big way, and they are giving their stuff away. ...
"We deserve to lose. We are clutching our past with these tremulous hands, and everyone else is vigorously grasping the future."
