Thursday, June 9, 2011

Bullet Train to Hangzhou

Another early day today, we are taking the bullet train to Hangzhou, a Tier 2 city. We have both a cultural visit and 2 business visits lined up for the day.

First stop was the Longjing Tea Village. It was a beautiful drive up to the Tea Village, a big change from the hustle and bustle of Shanghai. Lots of trees and small villages lined the road up to the Tea Village. Our guide told us that the area is a weekend getaway for many people in the city, which was not surprising.

At the Tea Village we learned about the process of making green tea and then learned from Dr. Tea about the properties of green tea and the differences between the different types. We sampled some of the best tea that I have had in China so far and then a lot of us bought some of the most expensive tea that we have ever bought or probably will buy. If the whole thing was a sales pitch, like some of our classmates thought, then Dr. Tea is the best salesman around. Even if it was only a pitch I was able to get a few gifts for folks at home when I bought the pound of tea to bring home. It was a nice change of pace since the majority of our time in Shanghai has been focused on business visits.

After another traditional Chinese lunch we headed to Geely Motors, a Chinese car manufacturer most recently known for their purchase of Volvo. Geely primarily sells cars in Asia, Eastern Europe, and Africa. After looking around the showroom it was clear that their car models all resemble other successful car models. Their best seller is a dead ringer for the Toyota Camry. In their business presentation they presented several new models of car that they are planning to introduce over the next few years. I think their business strategy is not very strong, they are focusing on too much innovation instead of finding a gap in the market and using it to their advantage. In my opinion they need to focus on one or two models that are needed in the market and then mass produce those. It will be interesting to see how Geely proceeds now that they have purchased Volvo. There is already press around the differing management of the Chinese owner and German operator. It will be interesting to see how this situation progresses.

Our last stop was the Asian American Amity Association. Because we needed to make our train, it was a very quick stop. Due to the rushed nature of the visit I walked out not completely sure what the AAAA does. It was clear that everyone we met with was proud of the work that they do. From what we heard my assumption was that they aid Americans trying to do business in China and pair investors and businesses after they research the Chinese businesses. Unfortunately we didn't have much time for questions there to better understand their role. We were all excited to have the last of our business visits done. Personally, I am about ready to head home, it has been a great trip but I am exhausted and a little homesick at this point.

From there it was back to the train and back to Shanghai. A little tired of traditional Chinese food we ventured out for some pizza tonight. It wasn't bad, especially considering it is hard to get good pizza outside of NJ in the US. Siteseeing in Shanghai tomorrow and late flight to Beijing, then the long journey home.

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