In this third and final instalment of his entrepreneurial adventures, Yann Poirier shares his thoughts on his 14 years in China, as well as his views on the country's prospects.
As we mentioned in the previous episode, you didn't know China when you moved there in 2009 and you only imagined it based on its stereotypes. What was your first impression of Shanghai?
It was spectacular when I think about it because my ignorance of China was total. When I arrived in Shanghai in 2009, it was a year before the World Expo. There were cranes everywhere and the city was looking beautiful. I'd lived in New York when I was young, but here I was in New York in 2050, much cleaner, much more modern.
How did your integration into China go?
First, there was the language barrier. It took 6 months before I was able to get by and start communicating, but with 3 months of private lessons I reached a level of survival. Having already lived in several foreign countries, I was used to integrating without imposing my culture. Rather than seeking to join French communities, I appreciated the diversity of nationalities. This diversity includes not only expatriates, but also locals. Everyone comes to Shanghai to work and have fun, but Shanghai is not representative of the whole of China.
China has undergone huge changes in recent years, with, for example, the almost total abandonment of cash and credit cards in favor of telephone payments. What major changes have you seen in your 14 years in Shanghai?
So many. For example, I've seen the advent of smartphones in China. Chinese consumers are open to new technologies, without barriers or resistance. In a way, the Chinese are virgin consumers. WeChat arrived around 2011 and I don't know of a platform as effective. They copied existing platforms, but they did it better.
In your previous answer, you mentioned that the Chinese copied but improved. We sometimes hear the phrase: The United States innovates, China copies and Europe regulates. What are your thoughts on this?
China is at a turning point, aiming to set its own technological standards rather than relying on Western standards. To achieve this, their research must match their ambitions, with quality patents. 10 years ago, intellectual property protection was virtually non-existent in China. You could buy counterfeit goods in the city centre, but that has changed. Aware of its potential for innovation, China is committed to protecting its brands and intellectual property. Huawei, for example, was a forerunner in the field of 5G, which prompted the United States to react so as not to be left behind. I think, for example, that China will become a global manufacturer of electric cars.
What do you think of the opportunities for foreigners in China, where some foreign entrepreneurs say that everything is complicated, but everything is possible, whereas in Europe everything is easy, but nothing is possible?
I don't know of many success stories for French entrepreneurs in Shanghai, despite many naive attempts to make a lot of money. Due to high unemployment among young people and increased visa restrictions, opportunities for foreigners are increasingly rare, even for those with specific qualifications. The market for foreigners is changing, and Mandarin is often becoming an essential prerequisite. There are still a few opportunities for qualified foreigners, but you must be lucky.
What makes it so difficult to do business in China and really succeed?
In general, doing business in a foreign country is more difficult. As foreigners, we are at a disadvantage compared to the Chinese, who attach great importance to relationships, creating a natural barrier. Another challenge is the changing and draconian regulations, which are often unfavorable to foreigners.
Now that you're back in Europe. What do you miss about working in China or in general?
Professionally, China offered mainly positive aspects. However, the use of a VPN was necessary to access international information, which can be restrictive. The control over our actions was also noticeable, even though we felt a certain freedom in Shanghai. The process of compulsory registration with the police on arrival and the constant feeling of being watched are not to be regretted.
In Europe and Switzerland, we have many preconceptions about China. If you had to deconstruct one, what would it be?
Trust! Many people in Europe are afraid of being ripped off by the Chinese and that they always have something up their sleeve. For me, it was completely the opposite, they kept their promises. My only two unpaid invoices in China were from French customers.
To conclude, what prompted you to leave China?
I was fed up with China and the fact that the COVID-19 pandemic seemed never-ending. During the confinement in Shanghai, we were on the island of Hainan watching the situation in China. We said to ourselves that we had to leave China. If I hadn't lived through Shanghai's heyday 10 years ago, I wouldn't hesitate to move there today. It's a dynamic city with an exceptional quality of life at the heart of a megalopolis of 25 million people, a combination that's unique in the world.
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