Sunday, February 16, 2025
There is a test that evaluates emotional awareness called the Emotional Awareness Scale (LEAS). It asks participants to read 20 scenarios involving two people and then describe the emotions at play. These responses are assessed by psychologists against a rubric. Interestingly, chatbots like ChatGPT have achieved near-perfect scores on the LEAS, far surpassing the average human’s score.
This brings up an intriguing question: Does this mean AI has higher emotional intelligence (EQ) than humans? And is AI truly self-aware? For now, I have more questions than answers.
Lately, I’ve been hearing the term 出海 (chū hǎi), which translates to “going overseas.” It refers to companies seeking growth and development opportunities abroad. This has become a major business trend in China, driven by the challenges domestic companies have faced in the post-pandemic era, especially the slow recovery of the consumer market.
While businesses have historically sought international expansion, the trend of chū hǎi has gained significant momentum in recent years—particularly in the wake of the pandemic. As businesses look abroad for investment opportunities, new factories, and untapped markets, the scope of this international push has expanded to include both traditional sectors like manufacturing and emerging sectors like e-commerce, technology, and even entertainment.
Innovative Capabilities— Many Chinese business leaders believe their innovative products and services have strong potential in foreign markets. China’s tech companies, particularly in e-commerce (like Alibaba and JD.com), mobile apps (such as TikTok’s parent company ByteDance), and electric vehicles (like BYD), have already made significant inroads into regions like Southeast Asia, Europe, and the Global South.
Geopolitical and Trade Barriers—Despite this ambitious global expansion, Chinese companies face several significant hurdles, including tariffs and rising geopolitical tensions, particularly in the Global South. National security concerns about China’s mobile apps, especially in countries like the United States and India, add another layer of complexity.
Adapting Strategies— To navigate these challenges, many Chinese businesses are adapting and refining their strategies. They are localizing their products and marketing approaches to better align with the cultural preferences of new markets, such as in South America. Some are forming joint ventures or partnerships with local players to help them understand and comply with regulatory environments.
Reconceiving "Place"— The concept of chū hǎi is not just about physical expansion—it’s also about reconceptualizing “place” in the global business landscape. No longer confined by geographical borders, Chinese companies are embracing a more flexible, globally-minded approach to business operations. In this sense, they are following in the footsteps of many European companies.
For example, some Chinese firms are setting up research and development centers overseas to better understand local consumer needs, similar to Apple’s R&D center in Shenzhen. Others are shifting production and logistics hubs outside of China to reduce reliance on domestic supply chains or to mitigate trade tariffs.
There’s an old saying, 胸怀天下, 放眼世界 (xiōng huái tiān xià, fàng yǎn shì jiè) - translates roughly, Embrace the whole world, have the world in your mind. It conveys a sense of having a broad vision and global perspective.
Beyond expanding market share, chū hǎi represents a fundamental shift in how Chinese companies view competition with their global mindset.