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With its wide boulevards; beautiful green spaces; and nexus of universities;
technical colleges; and massive software park; Dalian would stand out in Silicon
Valley。 I had been here in 1998; but there had been so much new building since then
that I did not recognize the place。 Dalian; which is located about an hour's flight
northeast of Beijing; sym34
bolizes how rapidly China's most modern cities…and there are still plentyof miserable;
backward ones…are grabbing business as knowledge centers; not just as manufacturing
hubs。 The signs on the buildings tell the whole story: GE; Microsoft; Dell; SAP; HP;
Sony; and Accenture… to name but a few…all are having backroom work done here to
support their Asian operations; as well as new software research and development。
Because of its proximity to Japan and Korea; each only about an hour away by air;
its large number of Japanese speakers; its abundance of Internet bandwidth; and many
parks and a world…class golf course (all of which appeal to knowledge workers); Dalian
has become an attractive locus for Japanese outsourcing。 Japanese firms can hire three
Chinese software engineers for the price of one in Japan and still have change to
pay a roomful of call center operators (90 a month starting salary)。 No wonder some
twenty…eight hundred Japanese companies have set up operations here or teamed up with
Chinese partners。
〃I've taken a lot of American people to Dalian; and they are amazed at how fast the
China economy is growing in this high…tech area;〃 said Win Liu; director of U。S。/EU
projects for DHC; one ofDalian's biggest homegrown software firms; which has expanded
from thirty to twelve hundred employees in six years。 〃Americans don't realize the
challenge to the extent that they should。〃
Dalian's dynamic mayor; Xia Deren; forty…nine; is a former college president。 (For
a Communist authoritarian system; China does a pretty good job of promoting people
on merit。 The Mandarin meritocratic culture here still runs very deep。) Over a
traditional ten…course Chinese dinner at a local hotel; the mayor told me how far
Dalian has come and just where he intends to take it。 〃We have twenty…two universities
and colleges with over two hundred thousand students in Dalian;〃 he explained。 More
than half those students graduate with engineering or science degrees; and even those
who don't; those who study history or literature; are still being directed to spend
a year studying Japanese or English; plus computer science; so that they will be
employable。 The mayor estimated that more than half the residents of Dalian had access
to the Internet at the office; home; or school。
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〃The Japanese enterprises originally started some data processing industries here;〃
the mayor added; 〃and with this as a base they have now moved to R & D and software
development。。。 In the past one or two years; the software companies of the U。S。 are
also making some attempts to move outsourcing of software from the U。S。 to our city 。 。 。
We are approaching and we are catching up with the Indians。 Exports of software
products 'from Dalian' have been increasing by 50 percent annually。 And China is now
becoming the country that develops the largest number of university graduates。 Though
in general our English is not as competent as that of the Indian people; we have a
bigger population; 'so' we can pick out the most intelligent students who can speak
the best English。〃
Are Dalian residents bothered by working for the Japanese; whose government has still
never formally apologized for what the wartime Japanese government did to China?
〃We will never forget that a historical war occurred between the two nations;〃 he
answered; 〃but when it comes to the field of economy; we only focus on the economic
problems…especially if we talk about the software outsourcing business。 If the U。S。
and Japanese companies make their products in our city; we consider that to be a good
thing。 Our youngsters are trying to learn Japanese; to master this tool so they can
compete with their Japanese counterparts to successfully land high…salary positions
for themselves in the future。〃
The mayor then added for good measure; 〃My personal feeling is that Chinese youngsters
are more ambitious than Japanese or American youngsters in recent years; but I don't
think they are ambitious enough; because they are not as ambitious as my generation。
Because our generation; before they got into university and colleges; were sent to
distant rural areas and factories and military teams; and went through a very hard
time; so in terms of the spirit to overcome and face the hardships; 'our generation
had to have more ambition' than youngsters nowadays。〃
Mayor Xia had a charmingly direct way of describing the world; and although some of
what he had to say gets lost in translation; he gets it…and Americans should too:
〃The rule of the market economy;〃 this
Communist official explained to me; 〃is that if somewhere has the richest human
resources and the cheapest labor; of course the enterprises and the businesses will
naturally go there。〃 In manufacturing; he pointed out; 〃Chinese people first were
the employees and working for the big foreign manufacturers; and after several years;
after we have learned all the processes and steps; we can start our own firms。 Software
will go down the same road 。 。 。 First we will have our young people employed by the
foreigners; and then we will start our own companies。 It is like building a building。
Today; the U。S。; you are the designers; the architects; and the developing countries
are the bricklayers for the buildings。 But one day I hope we will be the architects。〃
I just kept exploring…east and west。 By the summer of 2004;1 was in Colorado on
vacation。 I had heard about this new low…fare airline called JetBlue; which was
launched in 1999。 I had no idea where they operated; but I needed to fly between
Washington and Atlanta; and couldn't quite get the times I wanted; so I decided to
call JetBlue and see where exactly they flew。 I confess I did have another motive。
I had heard that JetBlue had outsourced its entire reservation system to housewives
in Utah; and I wanted to check this out。 So I dialed JetBlue reservations and had
the following conversation with the agent:
〃Hello; this is Dolly。 Can I help you?〃 answered a grandmotherly voice。
〃Yes; I would like to fly from Washington to Atlanta;〃 I said。 〃Do you fly that route?〃
〃No; I'm sorry we don't。 We fly from Washington to Ft。 Lauderdale;〃 said Dolly。
〃How about Washington to New York City?〃 I asked。
〃I'm sorry; we don't fly that route。 We do fly from Washington to Oakland and Long
Beach;〃 said Dolly。
〃Say; can I ask you something? Are you really at home? I read that JetBlue agents
just work at home。〃
〃Yes; I am;〃 said Dolly in the most cheerful voice。 (I later confirmed with JetBlue
that her full name is Dolly Baker。) 〃I am sitting in my office
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upstairs in my house; looking out the window at a beautiful sunny day。 Just five
minutes ago someone called and asked me that same question and I to