Homepage / Technology / Michael Moritz is right: Silicon Valley should be terrified of China
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election

Technology

Michael Moritz is right: Silicon Valley should be terrified of China

The reaction has been swift and negative to investor Michael Moritz’s essay arguing Silicon Valley companies have something to learn from China’s hard-working entrepreneurship culture. Moritz, a partner at the exceptionally successful venture capital firm Sequoia, has been accused of being sexist, out of touch, and an evangelist of

.

I’ve spent my entire career working in China and travel to Shanghai monthly to visit manufacturing partners as CEO of Anomalie, a Silicon Valley-based e-commerce wedding dress company. My takeaway from visiting the country over 30 times is clear: Silicon Valley should be terrified to compete with Chinese entrepreneurs over the coming years.

Based on my experience, the Bay Area criticism of Moritz reflects a lack of appreciation for China’s recent history, a misunderstanding of the factors driving the work ethic of Chinese workers, and a worrying belief that Silicon Valley’s pre-eminence as the center of entrepreneurship is to be inherited by future generations instead of fought for.

In Silicon Valley circles, it is common to acknowledge that people in China work harder than us but there is a prevailing sense that the Chinese miss an “innovation gene.” The thinking goes that China might outwork us, but Silicon Valley competitiveness will be sustained by a unique ecosystem that encourages risk-taking and invention.

I used to have this biased view too but then I met Esther, the owner of a garment factory I worked with years ago. Walking with her through the floor of her 1,000-person operation, I asked her whether the enterprise was a family business. She gave me a confused look and said, “The phrase ‘Family Business’ does not exist in China. My parents grew up during the Cultural Revolution.”

She informed me of a fact I was embarrassingly ignorant of: this is China’s first generation of entrepreneurs. The older generation, which runs the country and most large Chinese companies today, lived through a period of unfathomable violence, starvation and poverty under Mao. The biographies of China’s leaders are case studies in human resourcefulness and resolve. The current President, Xi Jinping, had his education cut off at 15 and was later arrested for deserting his rural area and forced to dig ditches in a labor camp. Huang Nubo, one of China’s richest men, saw his family lose everything and father commit suicide during the Cultural Revolution – he now writes poetry about this horrifying period.

I have deep disagreements and concerns with many decisions the Chinese government makes domestically and internationally. But that doesn’t negate that fact that what China has achieved over the past 40 years is the fastest and largest movement of humans from poverty to prosperity in history. The key lesson we should take from China’s innovation culture is how fast it has developed, and how concerned we should be to compete with the ascending generation.

Getting off the plane in Shanghai, I always have a sense that a once-in-a-century global shift is occurring and opportunity is everywhere.

Detractors of Moritz’s essay claim that long work hours in China is “

,” but I don’t sense most people in China feel this way. Far from a dystopian workaholic state, I see in China a sense of optimism, feeling of upward mobility, and pace of improvement that is extraordinary. With the horrors of Mao still in recent memory, I (and I think many in China) see it as very inspirational that so many people have the opportunity to now work hard, provide for their families, and take them to Disneyland on the weekend.

It is also worth noting that the majority of managers I’ve worked with in China have been women. While they might not see their kids left often as they’d like, they are able to give those children a life their parents could have never dreamed of. Tens of millions of moms are also able to provide incredible role models to their children of what a smart, hard-working woman looks like.

From my experience, the U.S. can learn a lot from China about women and work. A significantly higher percentage of Chinese tech companies have C-Suite women leaders than their U.S. counterparts. One senior female executive told me that she agrees with Warren Buffet’s assertion that the U.S. economy has been operating for much of its history at “50% capacity” because of attitudes towards women. While there are obviously systemic gender inequities China must work through, I have personally never been in an environment that felt more meritocratic and less devoid of gender politics than when I am working with a Chinese team.

The younger generation in China is optimistic, hard-working, aggressively upwardly mobile, and adopting new tech trends and a furious pace. We should only expect China’s pace of innovation to increase as they take over levers of power.

In short, compared to the United States, China is an economy that is improving its innovation engine at an unprecedented rate with more workers who work longer hours at a higher labor participation rate. The disdain with which the Silicon Valley Twittersphere reacted to Moritz’s call to learn from China unfortunately only highlights his point that a competitiveness gap is growing.

There are three direct flights per day from SFO to Shanghai. The flight is a quick 12 hours and often costs only $300. Everyone on our team makes this trip and I encourage anyone who cares about the future competitiveness of Silicon Valley to take this trip and view what is happening in China (particularly among the rising entrepreneurial generation).

The entrepreneurial economy is not zero-sum, and I hope that the competition among Chinese and American startups over the next generation will lift all boats. China is definitely learning from us and iterating quickly. Silicon Valley should heed the calls to learn from them.

Leslie Voorhees is the CEO and co-founder of Anomalie, which brings more customization, transparency, and value to wedding dresses. She previously worked in supply chain operations for Nike and Apple in China.

Source: Tech CNBC
Michael Moritz is right: Silicon Valley should be terrified of China

Comments are closed.