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This program is an eClub One Rotary Fireside – a chance to meet another Rotarian, digitally up close and personal. Other “Firesides” included Lt. Col. Rick Francona, Retired  (Port Orford Rotary and Correspondent Member of eClub One) about his experiences in Iraq; Helena and Bo Hesselmark (eClub One and Rotary Club of , about their Rotary Volunteer work with the Rotary International Avoidable Blindness program); and Drew Vactor (Tucson Rotary, AZ and Correspondent Member of eClub One) about his experiences teaching computing on cruise ships.

Today we introduce Jeff Englestad, Professor of Real Estate at The University of Denver and a Director of eClub One.

eClub One:  You recently visited mainland China. What were your destinations and the purpose of your trip?

Engelstad:   I went to China to consult with a domestic pharmaceutical company called Neptunus.  Neptunus is involved in research and development and produces mainstream pharmaceuticals as well as traditional Chinese medicines.  Neptunus also distributes its products through a network of approximately 300 retail stores located throughout larger cities in China.  The company is unique in a way because they have no desire for trade and export to the US or other countries, they are strictly a Chinese concern.  The owner of Neptunus, Dr. Zhang, is about 40 years old and is reputed to be one of the 12 wealthiest individuals in China.  The retail division of the company has recently gone public and they plan to increase the number of retail outlets from the current 300 to over 2,500 in the next several years.  The real estate needs of Neptunus include managing and facilitating this enormous growth as well as developing US style logistics and distribution facilities.

I met with Neptunus officials in Shanghai, then traveled to Hangzhou, then to Shenzen.  We looked at manufacturing facilities, retail stores and research laboratories, but the main purpose of the trip was for me to get a perspective on how business is conducted in China so that I could make an introduction to some US real estate development firms on behalf of Neptunus.

My introduction to Neptunus came through a former graduate student named Shu, a Chinese national, sent to the US to study business at the University of Denver compliments of Dr. Zhang.  Shu does not work for Neptunus, but Dr. Zhang had met him in Shanghai and, impressed with his abilities, provided the means for him and his wife to study in Denver for two years.  Shu explained to me that Chinese culture dictates that he is now obligated to repay this favor. 

eClub One: How would you assess the business climate in the places you visited?

Engelstad:   China is nothing short of amazing.  I have led real estate delegations to over 20 countries in the past 5 years and I can say that China possibly represents more genuine opportunity than all the others combined.  China is a strange mix of ancient and modern.  Shanghai has more new buildings and post-modern architecture than 10 Houstons, but outside of Hangzhou, just 150 Km away, the air is thick with industrial pollution and the roads are unpredictable at best.

Overall the business climate in China, from my brief visit, seems very positive.  China is a communist country but it is filled with a sense of capitalism.  The movers and shakers in China are not 55 year old business executives, but 35 and 40 year olds, who began to benefit from China's experiments with capitalism around 1980.  Many of the top-level business people with whom I met were educated at top Chinese Universities and had a genuine lust for creating opportunities in business in China.

eClub One: What was you feeling about the places you visited - impressions?

Engelstad:   China is not what you think it is.  Most Americans over the age of 40 have notions of China dating at least back to Nixon and Dong Xiao Ping.  I expected everyone to be wearing green fatigues and Chairman Mao hats.  Shanghai is a modern city of over 18 million and is truly a world capital.  Shenzen is a bustling city of nearly 8 million less than two hours by ferry from Hong Kong.  Shenzen was a farming community of less than 200,000 people in 1980.  Hangzhou is a city of about 7 million and boasts a beautiful lake, West Lake, which is the inspiration of many Chinese poems and traditional lore.

eClub One: What did you sense about attitudes toward the U.S.?

Engelstad:   The Chinese people were very friendly, however it was rare to find anyone that spoke any English at all.  I think the Chinese see the US as a country that can help them as they transition into more of a capitalist society.  As a University professor I was treated very well.  Mr. Shu, my former graduate student, said that Chinese business people would travel a long distance and pay a high price to hear a US professor speak on just about any business topic, even though it would have to be translated to the audience.  He said that a similarly knowledgeable Chinese professor would draw almost no audience.   

eClub One: What suggestions would you give to Rotarians considering a trip to China?

Engelstad:   Pack some Power Bars!  Sometimes you will eat the sort of stuff you see on Fear Factor.  The Chinese do not particularly like American food, and what we think is Chinese food is not at all what you will eat.  Get with an organized group if you are the least bit timid.  You can't read anything and you can't ask for directions.  I had my Chinese hosts with me every waking moment.  I have traveled quite a bit but have never felt further from home than in China.  I would strongly suggest that the way to see China is with a Chinese host, on a individual basis. 

eClub One: eClub has provided Makeups for Rotarians in the few clubs that exist in China. What suggestions would you offer Rotary for developing more clubs in China?

Engelstad:   Rotary is a business oriented organization and I think China is a place where Rotary will thrive.  Relationships are very important to doing business in China and Rotary provides a means for developing such relationships.  Also, I believe the attitude of the Chinese business people is to "give back" and Rotary is a terrific means for this as well. 

Don't forget to return to the eClub One website and click on Make-Up request to complete your make-up.

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