On June 24, the student cohort gathered in Shanghai for the program’s kickoff. While in Shanghai, students toured the store and warehouse of the innovative grocery chain model, Freshippo. Next, students learned about cutting-edge environmental initiatives and spoke directly with young professionals at Ant Finance. The Shanghai leg of the trip also featured a tour of the Luckin Coffee factory, which is the largest roastary in Asia, and a networking dinner with local Stanford alumni.

“It was incredible talking to people in very high positions of power in these digital companies that we took tours of, for example, the Ant group or even some of the manufacturing companies we went to...that the core thesis of their drive for profit, it's underpinned by, ‘we need to be environmentally friendly.’” Arshia Mehta, a management science and engineering major going into consulting, reflected on these visits. 

From Shanghai, students traveled to Deqing, a prosperous rural county in the Yangtze river delta region, where they explored a local health clinic and a pearl farm responsible for a sizable portion of global pearl production. From Deqing, students traveled to the nearby township of Tongxiang, where they dove into China’s dynamic manufacturing sector through informative conversations with factory personnel and tours of a conveyor belt factory and fiber glass company. 

The program cohort then traveled to Xi’an, where they had the opportunity to marvel at the Terracotta Warriors and explore the city’s Muslim Quarter. From urban Xi’an, students rode a bus through tunnels and over mountains towards the rural county of Ningshan, where they visited a local parenting center, rural agricultural communities, and local hospitals. Students also visited local households where they conversed with villagers and families to learn more about rural life in Ningshan.

“Everybody wanted their children to go to college, everybody wanted to see a better future and how to help for that future,” said first year political science major Garrett Molloy, “that reminds me – no matter how distant we seem politically, people are actually very similar.”

Finally, after traveling overnight on a sleeper train, students arrived in Beijing. While in China’s capital, the cohort toured the newly operational Xiaomi EV factory, engaged with students from Tsinghua University High School and Peking University, and spoke directly with the country’s stock market regulators. Students also joined the 4th of July celebration hosted by the U.S. Embassy, where they were greeted by the U.S. Ambassador to China, Nicholas Burns.

Reflecting on her conversation with the Ambassador, Amaya Marion, a junior studying international relations, said, “This trip makes me more certain that I do want to do something in the future with U.S.-China relations.”

The student cohort also had ample opportunity to explore China’s culture and history throughout the program. They visited a paleolithic archaeological site, learned to make traditional Chinese rice cakes, practiced the art of Chinese calligraphy, and visited the Zhujiajiao Water Town. The cohort also explored traditional indigo tye-dyeing practices and cloisonné, an ancient technique for decorating metalwork with colored enamel material.

Students not only gained new insights from the cultural and business visits, they also learned from one another. Stella Meier, Stanford junior studying international relations, remarked, “this is a really remarkable opportunity to see parts of China that otherwise wouldn't be accessible to me.”

Having experienced urban and rural China firsthand over the course of two weeks, students walked away with a deeper and more nuanced understanding of China’s economy and people that, according to one student, “fundamentally reshaped my global perspective.” To continue facilitating transformative student exchanges with China, planning for SCCEI’s second annual Summer Program is already well underway.
 

Watch the Program Highlights 

Visit the program page for more program details and future program announcements.

Allen began with an anecdote about a conversation with the governor of one of China's poorest agricultural provinces. When asked about his economic priorities, the governor cited advanced technologies such as semiconductors and biotechnology, mirroring the sectors highlighted in the Made in China 2025 plan. This response underscored China's government's relentless focus on technological advancement across all levels of government, which Allen described as a "techno-utopian quest."

Allen traced the roots of China's techno-utopianism back over a century ago to the May 4th Movement, which called for a new culture based on science and democracy. He argued that this vision aligns perfectly with Marxist ideology and the Communist Party's current policies. "China’s leaders have long believed in the transformative power of technology," Allen noted, "a belief that is deeply embedded in their political and ideological fabric."

Allen emphasized that China is not just an "innovation sponge" but has also become a leader in its own right. "China’s definition of innovation is tailored to its needs," he said, "differing significantly from the Silicon Valley model." He outlined five key points about the new productive forces that may distinguish Shenzhen from Silicon Valley:

1. China recognizes that it is facing an acute labor shortage and is thus focusing on factory automation and efficient production in mature industries.
2. China wants to spur innovation and create new industries at almost any cost.
3. There is an overwhelming mandate for self-reliance and import substitution. 
4. There is plenty of government money.  
5. China plans to turn “data” into the “fifth factor of production”, behind – land, capital, labor, and entrepreneurship. 
    

China’s innovation is evident in its ambitious industrial policies, which are supported by substantial government funding and a strategic focus on self-reliance and import substitution.

Allen continued to discuss the implications of the U.S. export controls aimed at decoupling from China, highlighting the unintended consequences for American companies. He pointed out that unilateral export controls often harm U.S. firms more than their intended targets by reducing their customer base and long-term competitiveness. "We must recognize that these controls can backfire, hurting our own industries while China accelerates its push for technological independence," Allen warned.

Another critical issue raised by Allen was the regulation of data flows. China's Cyber Administration has introduced stringent controls over cross-border data transfers. "The regulatory environment is becoming increasingly complex," Allen explained, "making it challenging for companies to maintain operational connectivity and compliance across borders."

From a corporate perspective, Allen urged companies to recognize the political realities and prepare for potential conflicts that could disrupt international trade. Many American firms are already scenario planning for severe sanctions, similar to those imposed on Russia, to ensure business continuity. "Strategic foresight is essential," he advised, "as geopolitical tensions between the U.S. and China show no signs of abating."

Craig Allen's remarks were a reminder of the far-reaching implications of the competition for technology leadership between the U.S. and China. His insights underscored the need for a nuanced understanding of China's ambitions and the strategic adjustments required for American businesses to navigate this complex landscape. As the world witnesses unprecedented techno-economic competition, the stakes for both nations and the global economy could not be higher.

All views Craig Allen shared are his own and do not reflect the positions of the US-China Business Council.
 

Watch the Recorded Event   

Discover more from the inaugural SCCEI China Conference which brought together over 20 expert panelists from around the world and from across Stanford’s schools and disciplines, as well as experts and business leaders from Silicon Valley and the Bay Area to share insights on China's economic prospects. 
 

Huang concluded his talk with some lessons from history. He proclaimed that economic and technological successes require both scale and scope. Scale being uniformity, such as government support, and scope being diversity and heterogeneity, such as competition and ideological freedom. China in history and today is most successful when both conditions are present. 
 

Watch the Recorded Lecture

If you are interested in  learning more from Professor Yasheng Huang and his study on technological achievements in China, read his book The Rise and Fall of the East and stay tuned for his forthcoming book focusing more specifically on technology in China.