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to the States。 There is a saying in China that whatever you put in your head and your
stomach�察�no one can take away from you。 In this whole region�察�that is in the DNA。
You just have to study hard and move forward。 I was told relatively early by myteachers��
'We can never live like Americans and Canadians。 We have no resources。 We have to
study hard�察�work hard�察�and export hard。';
A few weeks later I had breakfast in Washington with P。V。 Kannan�察�CEO of 24/7 Customer。
When it comes to the flat world�察�said P。V。�察�he had just one question�此 �Is America
prepared�拭�It is not。 。 。 You've gotten a little contented and slow�察�and the people
who came into the field with ��the triple convergence�А�are really hungry。 Immigrants
are always hungry´and they don't have a backup plan。;
A short time later I read a column by Steven Pearlstein�察�The Washington Post's business
columnist/reporter�察�under the headline ;Europe's Capitalism Curtain。; From Wroclaw�察�
Poland ��July 23�察�2004���察�Pearlstein wrote�此 �A curtain has descended across Europe。
On one side are hope�察�optimism�察�freedom and prospects for a better life。 On the other
side�察�fear�察�pessimism�察�suffocating government regulations and a sense that the best
times are in the past。; This new curtain�察�Pearlstein argued�察�demarks Eastern Europe�察�
which is embracing capitalism�察�and Western Europe�察�which is wishing desperately that
it would go away。
;This time�察�however�察�it is the East that is likely to prevail�察─�he continued。 ;The
energy and sense of possibility are almost palpable here 。 。 。 Money and companies
are pouring in´not just the prestige nameplates like Bombardier�察�Siemens�察�Whirlpool�察�
Toyota and Volvo�察�but also the network of suppliers that inevitably follows them。
At first�察�most of the new jobs were of the semi´skilled variety。 Now they have been
followed by design and engineering work that aims to tap into the largest concen264
tration of university students in Eastern Europe 。 。 。 The secret isn't just lower
wages。 It's also the attitude of workers who take pride and are willing to do what
is necessary to succeed�察�even if it means outsourcing parts production or working
on weekends or altering vacation schedules´ things that would almost certainly
trigger months of acrimony and negotiation in Western Europe。 'The people back home�察�
they haven't got any idea how much they need to change if they want to preserve what
they have��' said Jose Ugarte ��a Basque who heads the appliance manufacturing
operations of Mondragon�察�the giant Spanish industrial cooperative�А� 'The danger to
them is enormous。 They don't realize how fast this is happening 。 。 。' It's not the
dream of riches that animates the people of Wroclaw so much as the determination to
work hard�察�sacrifice what needs to be sacrificed and change what needs to be changed
to close the gap with the West。 It is that pride and determination�察�says Wroclaw's
mayor�察�Rafal Dutkiewicz�察�that explain why they are such a threat to the 'leisure´time
society' on the other side of the curtain。;
I heard a similar refrain in a discussion with consular officials who oversee the
granting of visas at the U。S。 embassy in Beijing。 As one of them put it to me�察 �I
do think Americans are oblivious to the huge changes。 Every American who comes over
to visit me ��in China�А�is just blown away 。 。 。 Your average kid in the U。S。 is growing
up in a wealthy country with many opportunities�察�and many are the kids of advantaged
educated people and have a sense of entitlement。 Well�察�the hard reality for that kid
is that fifteen years from now Wu is going to be his boss and Zhou is going to be
the doctor in town。 The competition is coming�察�and many of the kids are going to move
into their twenties clueless about these rising forces。;
When I asked Bill Gates about the supposed American education advantage´an education
that stresses creativity�察�not rote learning´he was utterly dismissive。 In his view�察�
those who think that the more rote learning systems of China and Japan can't turn
out innovators who can compete with Americans are sadly mistaken。 Said Gates�察 �I have
never met the guy who doesn't know how to multiply who created software 。 。 。 Who
has the most creative video games in the world�拭�Japan� �I never met
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these 'rote people'。 。 。 Some of my best software developers are Japanese。 You need
to understand things in order to invent beyond them。;
One cannot stress enough�此�Young Chinese�察�Indians�察�and Poles are not racing us to the
bottom。 They are racing us to the top。 They do not want to work for us�察�they don't
even want to be us。 They want to dominate us´in the sense that they want to be creating
the companies of the future that people all over the world will admire and clamor
to work for。 They are in no way content with where they have come so far。 I was talking
to a Chinese´American who works for Microsoft and has accompanied Bill Gates on visits
to China。 He said Gates is recognized everywhere he goes in China。 Young people there
hang from the rafters and scalp tickets just to hear him speak。 Same with Jerry Yang�察�
the founder of Yahoo� �
In China today�察�Bill Gates is Britney Spears。 In America today�察�Britney Spears is
Britney Spears´and that is our problem。
Dirty Little Secret #3�此�The Education Gap
All of this helps to explain the third dirty little secret�此�A lot of the jobs that
are starting to go abroad today are very high´end research jobs�察�because not only
is the talent abroad cheaper�察�but a lot of it is as educated as American workers
or even more so。 In China�察�where there are 1。3 billion people and the universities
are just starting to crack the top ranks�察�the competition for top spots is ferocious。
The math/science salmon that swims upstream in China and gets itself admitted to a
top Chinese university or hired by a foreign company is one smart fish。 The folks
at Microsoft have a saying about their research center in Beijing�察�which�察�for
scientists and engineers�察�is one of the most sought´after places to work in all of
China。 ;Remember�察�in China when you are one in a million´there are 1��300 other people
just like you。;
The brainpower that rises to the Microsoft research center in Beijing is already one
in a million。
Consider the annual worldwide IntelInternational Science and Engineering Fair。 About
forty countries participate by nominating talent through local affiliate affairs。
In 2004�察�the Intel Fair attracted around sixty´five thousand American kids�察�according
to Intel。 How about in China�拭�I asked Wee Theng Tan�察�the president of Intel China�察�
during a visit to Beijing。 In China�察�he told me�察�there is a national affiliate science
fair�察�which acts as a feeder system to select kids for the global Intel fair。 ;Almost
every single province has students going to one of these affiliate fairs�察─�said Tan。
;We have as many as six million kids competing�察�although not all are competing for
the top levels 。 。 。 ��But�А�you know how seriously they take it。 Those selected to
go to the international ��Intel�А�fair are immediately exempted from college entrance
exams; and basically get their choice of any top university in China。 In the 2004
Intel Science Fair�察�China came home with thirty´five awards�察�more than any other
country in Asia�察�including one of the top three global awards。
Microsoft has three research centers in the world�此�in Cambridge�察�England�察�in Redmond�察�
Washington�察�its headquarters�察�and in Beijing。 Bill Gates told me that within just
a couple of years of its opening in 1998�察�Microsoft Research Asia�察�as the center in
Beijing is known�察�had become the most productive research arm in the Microsoft system
;in terms of the quality of the ideas that they are turning out。 It is mind´blowing。;
Kai´Fu Li is the Microsoft executive who was assigned by Gates to open the Microsoft
research center in Beijing。 My first question to him was�察 �How did you go about
recruiting the staff�拭─�Li said his team went to universities all over China and simply
administered math�察�IQ�察�and programming tests to Ph。D。´level students or scientists。
;In the first year�察�we gave about 2��000 tests all around�察─�he said。 From the 2��000�察�
they winnowed the group down to 400 with more tests�察�then 150�察 �and then we hired
20。; They were given two´year contracts and told that at the end of two years�察�
depending on the quality of their work�察�they would either be given a longer´term
contract or granted a postdoctoral degree by Microsoft Research Asia。 Yes�察�you read
that right。 The Chinese government gave Microsoft the right to grant postdocs。 Of
the original twenty who were hired�察�twelve survived the cut。 The next year�察�nearly
four thousand people were tested。 After that�察�said Li�察 �we stopped
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doing the test。 By that time we became known as the number one place to work�察�where
all the smart computer and math people wanted to work 。 。 。 We got to know all the
students and professors。 The professors would send their best people there�察�knowing
that if the people did not work out�察�it would be their credibility ��on the line�А�
Now we have the top professors at the top schools recommending their top students。
A lot of students want to go to Stanford or MIT�察�but they want to spend two years
at Microsoft first�察�as interns�察�so they can get a nice recommendation letter that
says these are MIT quality。; Today Microsoft has more than two hundred researchers
in its China lab and some four hundred students who come in and out on projects and
become recruiting material for Microsoft。
;They view this as a once´in´a´lifetime income opportunity/' said Li of the team at
Microsoft Research Asia。 ;They saw their parents going through the Cultural
Revolution。 The best they could do was become a professor�察�do a little project on
the side because a professor's pay is horrible�察�and maybe get one paper published。
Now they have this place where all they do is research�察�with great computers and lots
of resources。 They have administrators´we hire people to do the dirty work。 They just
could not believe it。 They voluntarily work fifteen to eighteen hours a day and come
in on weekends。 They work through holidays�察�be