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From an unprecedented number of start-ups to a rising class of billion-dollar giants going global, high technology companies in China have a dramatically increasing need for effective leadership and will soon be facing a immense talent shortage. Even to seasoned executives, the current operating environment seems like a new frontier, due to extreme dynamism caused by rapid economic growth, state-to-private enterprise transition, emerging markets and other factors.

During the past year SPRIE and Heidrick & Struggles, a premier global executive search firm, have partnered to collect data and conduct in-depth interviews with executives in China's high tech firms. Research questions included: What principles and practices are executives using to lead their organizations effectively? How do these compare with practices in other regions? What talent strategies are executives using to promote the next generation of leaders?

As the product of this research goes public, SPRIE has invited two leading executives to give their own "view from the trenches" on the challenges of creating the next generation of high tech leaders in China.

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Jack Q. Gao Vice President, Apac Emerging Geography Speaker Autodesk, Inc.
Michael Zhao President and CEO Speaker Array Networks, Inc.
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Shorenstein APARC's Daniel Sneider takes the occasion of South Korean President Roh's visit to the United States to remind policy makers in both Washington and Seoul that they should keep in mind that the current challenges to the alliance are no more difficult than those faced and survived in the past.

The U.S. visit this week by South Korean President Roh Moo Hyun offers yet another opportunity to bemoan the crisis of confidence in our alliance. Anti-American views, particularly among the young, remain widespread in South Korea. On an official level, there are strains over the role of U.S. troops based in Korea and a stark divergence in approaches toward North Korea.

This portrait of a troubled alliance is often contrasted with a supposed golden age in U.S.-Korean relations during the Cold War. But that view obscures a history of sharp disagreement between the two allies. It is a mythical past that stands in the way of repairing our alliance today. In reality, Korean nationalism and American strategic policy goals have often clashed. Differences over North Korea have arisen repeatedly. And anti-Americanism has been a feature of Korean life for decades.

This was true from the earliest postwar days, in a relationship born out of a fateful and poorly considered decision to divide Korea, after decades of Japanese colonial rule, into American and Soviet zones of occupation. Syngman Rhee, South Korea's first leader, was often at odds with his American backers. Washington feared Rhee would provoke a war with the communist North, even after the end of the Korean War.

Relations with Park Chung Hee, who came to power in a military coup in 1961, were even thornier. Park was a fierce Korean nationalist and, according to a close former aide, uncomfortable with Americans. The two countries collided over North Korea policy, economic goals, human rights and democracy.

In the 1970s, South Koreans developed deep doubts about the durability of the alliance, an uneasiness fed by the Vietnam debacle and the withdrawal of U.S. troops from Korea. Park defied U.S. pressure in declaring martial law in 1972, junking the constitution and jailing leading opposition figures. He launched a secret campaign of influence-peddling and bribery of American congressmen to counter U.S. criticism of his policies.

While Park feared abandonment by the United States, North Korea's Kim Il Sung worried that China, after developing ties to Washington, might sell him out. Thus Park, even though he had been the victim of two assassination attempts by North Korea, reached out to Pyongyang. During high-level talks in 1972, there was a remarkable shared belief that the major powers were the obstacle to Korean reunification.

The most alarming sign of an alliance in crisis was Park's dangerous decision to develop nuclear weapons, made in secret in 1971 after Richard Nixon's withdrawal of one of the two American infantry divisions. According to my research, American officials became alarmed over the seriousness of this effort when a young CIA agent provided evidence of a crude design for a nuclear warhead.

In the spring of 1975, my father, the late ambassador Richard Sneider, sent a top-secret cable to Washington calling for an urgent review of the U.S.-South Korean alliance. Korea was "no longer a client state," he wrote, but was "well on its way to middle power status with ambitions for full self-reliance including its own nuclear potential."

Sneider recommended creation of a new partnership, one more akin to our alliances with NATO or Japan. He also pushed for quiet but tough diplomacy to dissuade Park from heading down the nuclear road. That campaign succeeded finally, but not before my father warned Park that the entire security alliance was jeopardized.

Park was assassinated in 1979 by his own intelligence chief, who claimed to have acted at American instigation. The charge was false, but it remains widely believed in Korea. The perilous state of our alliance reached a peak with the Kwangju uprising against military rule the following year, when hundreds of Koreans were killed by troops deployed with the alleged acquiescence of the United States.

Dispelling the myth of the previous golden era in U.S.-Korean relations does not mean that our relations lacked a foundation of shared interest or that the difficulties we face today are not serious. The gap over how to handle the threat from the North is certainly wider and more evident than in the past. And the democratization of South Korea makes our differences visible and harder to manage.

As policymakers from both countries meet this week, they need to take a deep breath and remember that our alliance survived tremendous stresses in the past. The task before us is not to focus on our divergence but to pick up the challenge left unmet 30 years ago -- to define the basis for a long-term relationship that is durable and reciprocal and that finally sheds the shackles of dependency.

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Shorenstein APARC
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Stanford University
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Pantech Fellow
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Xiyu Yang has, as a career diplomat, engaged in issues relating to the Korean Peninsula for more than ten years. He was Counselor in Department of Asian Affairs at the Ministry of Foreign Affairs of China in 2005. In January 2004, Mr. Yang was named as its inaugural Director of the Ministry's Office for Korean Peninsula Issues an office whose establishment he led. In that role, he dealt with nuclear issues on the Korean Peninsula, as well as affairs relating to the Six-Party Talks among China, the two Koreas, Japan, Russia, and the United States.

Xiyu was heavily involved in planning, drafting, and negotiating the Joint Statement, an important milestone for the talks process that was passed by the six nations in September 2005.

Besides the Korean issues, Xiyu has worked on policy planning and analysis in Chinese Foreign Ministry, and Development Research Center of the State Council of China. He achieved the China National Award for Outstanding Contributions to Social Science Studies in 1999, and was awarded the Honorable Subsidies for National Distinguished Experts by the State Council of China.

Shorenstein APARC
Encina Hall, Room E301
Stanford University
Stanford, CA 94305-6055

(650) 736-0685 (650) 723-6530
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Donald Macintyre is a 2006-2007 Pantech Fellow at Shorenstein APARC. He is researching and writing a book on how life in North Korea is changing at the grassroots level and what these changes mean for the international community's approach toward Pyongyang. He is also organizing a conference on the impact of the U.S. and South Korean media on U.S.-ROK relations.

Macintyre was Time Magazine's Seoul bureau chief from 2001-2006, covering general news, politics and culture in North and South Korea. He has traveled to North Korea six times and made numerous trips to China's border with North Korea to interview defectors, refugees and traders.

Before setting up Time Magazine's first permanent bureau in Seoul in 2001, Macintyre was a correspondent and Internet columnist for Time in Tokyo. Previously, he worked for Bloomberg Financial News as a reporter, editor and feature writer. He has also reported from Italy for Vatican Radio and Canada's CBC Radio.

The New York State Society of Certified Public Accountants awarded Macintyre its Excellence in Financial Journalism Award in 1996. He received an Honorable Mention from the Overseas Correspondents Club in the category of best newspaper reporting from abroad the same year.

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The history of groundwater in China is one of extremes, or apparent extremes. Before the 1960s, the story was one of neglect; only a small fraction of China's water supply came from groundwater (Nickum, 1988). Almost none of the Ministry of Water Resource's investment funds were allocated to the groundwater sector until the late 1960s. Certainly, to the extent that underground water resources were valuable, China was ignoring a valuable resource. Since the mid-1970s, however, the prominence of the groundwater sector has risen dramatically. Over the last 30 years, agricultural producers, factory managers and city officials, far from ignoring groundwater resources, have entered an era of exploitation (Smil, 1993; Brown and Halweil, 1998). Arguably, there have been more tube wells sunk in China over the last quarter century than anywhere else in the world. As a share of total water supply, ground water has risen from a negligible amount across most of China to being a primary source of water for agriculture, industry and domestic use in many of the nation's most productive regions. Unfortunately, the resulting fall in groundwater tables has been one of China's most serious environmental problems.

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Chapter in The Development, Challenges and Management of Groundwater in Rural China. Groundwater in Developing World Agriculture: Past, Present and Options for a Sustainable Future, Edited by Mark Giordano and Tushaar Shah, International Water Manage
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Scott Rozelle
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Although genetically modified crops are being grown on increasing larger areas in both developed and developing countries, with few minor exceptions, there has been almost no country that has commercialized a genetically modified major food crop. One reason may be that is unclear how the commercialization of genetically modified crops will help poor, small farmers. The objective of this paper is to report on the results of an economic analysis that uses three years of data from a series of quasiexperimental areas in China's GM rice program that were carried out in the fields of small and relative poor producers in two provinces in China. The paper attempts to answer two key questions: Does GM rice help reduce pesticides in the fields of farmers? Do the new varieties of GM rice increase the yields of farmers? Based on the results, the paper shows that the use of GM rice by farmers in pre-production trials allows farmers to reduce pesticide use and labor input, increase yields and improve their health. The paper concludes by arguing that the commercialization of GM rice in China could have consequences that exceed the direct impacts on China's farmers and could be a key step in breaking the world's current plant biotechnology logjam.

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The farmers in China's northern and central provinces began adopting Bt cotton in 1997 and in recent years almost exclusively plant Bt cotton. Adopted largely because traditional means of controlling bollworms by spraying insecticides were largely ineffective, the initial large gains in productivity from adopting Bt cotton, which expresses a toxin that can control bollworms, came mostly from sharply reduced levels of insecticide use. Despite the successes during the first years after adoption, there are uncertainties about the future of Bt cotton. On the one hand, the absence of refuges raises the question about whether or not the gains be sustained in the future. On the other hand, it also is a possibility that as Bt cotton acreage spreads, there may be positive externalities that can increase the gains. The overall goal of this research is to examine whether or not the gains from reduced spraying for bollworms that characterized the initial spread of Bt cotton is being sustained almost one decade after its initial adoption. Based on farm level data collected by the authors in 1999, 2000, 2001 and 2004 in 16 villages in Hebei, Shangdong, Henan, and Anhui provinces, our analyses show that insecticides applied to control bollworms instead of increasing as some expected in fact have declined. While the study's results, which are based on socio-economic data from Bt and non-Bt cotton farmers, are not able to pinpoint the exact mechanism that has allowed Bt to maintain or increase its productivity-enhancing effects, they are consistent with a story that suggests farmers, both those cultivating Bt cotton and non-Bt cotton, have been able to continue to reduce their use of insecticides due to lower populations of bollworm that have fallen as a result of Bt cotton area expansion. Moreover, our results are also consistent with the findings that at least eight years of commercialization, if there is any rise in the inherent resistance of bollworms to the Bt toxin, it still has not induced farmers to increase their use of insecticides to control bollworms. The findings from this study have important implications not only for refuge management policy in agricultural sectors of developing countries that are dominated by small, poor farmers that plant a diversified set of crops, but also for those that are interested in the methodologies that have been used to measure the direct and indirect impacts (or externalities) of insect-resistant GM technologies on crop production decisions.

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From an unprecedented number of start-ups to a rising class of billion-dollar giants going global, high technology companies in China have a dramatically increasing need for effective leadership. Since 1999, founders have led 24 Chinese firms to IPOs on NASDAQ, ranging from portals such as Sina and AsiaInfo in 2000 to mobile hardware makers and service providers like Hurray!, Vimicro, and Techfaith in 2005.

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Corporate Affiliate Visiting Fellow
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Jun Wang is a corporate affiliate visiting fellow at Shorenstein APARC for 2006-07. He is a deputy chief engineer of Refining & Marketing Company, Petrochina, where he has worked for thirteen years, focusing on development plan and project investment of refining & marketing. Wang is a PhD candidate on Refining Engineering from Petroleum University of China.

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