On December 6th, I was on BBC World News to discuss eurozone debt crisis and how the Chinese middle class can help re-balance the West’s economy.

On December 5th, I spoke with Lord Wei at Asia House in London on the impact of China’s middle class to the West and the meaning of a new Chinese Dream. Sir John Boyd, chairman of Asia House, introduced Lord Wei and me at the event. Below is the speech I gave at the event.

Thank you, Sir John Boyd, for your kind introduction.

First, I’d like to thank Lord Wei and Asia House for hosting my book launch here. It’s such an honor for me. Thank you very much!

This is my second time in London. London is a special place for me because, as a native Chinese, my first exposure to the Western world was through Dickens’ novels and Shakespeare’s plays. I remember the first time I visited London in 1993, I made a point to visit the Dickens House and Shakespeare’s home.

Today, I come to London at a very different time. The West’s economy is faltering. The eurozone debt crisis is looming large. Yet, I believe the biggest story of our time is not Italy’s default, or occupying London. Although these events are very significant, there is another story that has far-reaching implications – the rise of China’s middle class.

Do you know that the Chinese middle class is already five times the size of the UK population? In fifteen years, the Chinese middle class will reach 800 million. It will change the dynamics of the world we live in, and have huge impact on everything – our life, our jobs, our economy, and the world.

Today, I’d like to talk about three things: First, I will tell you a little bit about myself – who I am, and why I wanted to write this book. Second, I will tell a story about people I interviewed in China to give you an idea what it is like to be middle class in China. Third, I will discuss briefly the main thesis of the book: “the Oneness of the World.”

During the speech, please excuse my references to my adopted country across the pond, because it’s part of my experience. I hope I would not offend you by that.

Well, I am originally from China and grew up in a city called Hangzhou. How many of you have been to China? or Hangzhou? For those of you who have been to China, you would know that Hangzhou is known for a beautiful lake called West Lake.

I grew up hearing people say that Hangzhou is a paradise on earth. But I was oblivious to its charm. The stillness of the water seemed lifeless to me, and I was desperate to leave the country.

Twenty years ago, China was a very different place. We had very little information about the outside world. I was studying in college at that time. By chance, I came across class reading materials that included Abraham Lincoln’s “Gettysburg Address” and Martin Luther King’s “I Have a Dream” speech. It was an epiphany for me. I may not have fully understood the significance of these speeches, but something in them touched me profoundly – all I knew was that I wanted to go to that great country!

In 1989, I went to the United States to pursue my graduate study. To me, it was a dream coming true. A couple of weeks after I arrived in the States, I went to Washington DC for a conference. I was very excited to visit the White House, national museums, and memorial parks. As I stood at the Lincoln Memorial and read the Gettysburg Address, the reality that I was really in a free country finally hit me. I found myself at a loss for words.

Later that afternoon, I took a walk on the National Mall. Along the way, I bought a sandwich, and was about to sit down on a bench to eat my lunch. I was thrilled to see birds flying so closely around me. Suddenly, a bird dove toward me. Before I realized, it grabbed a big chunk of my sandwich and flew away. I was shocked, and thought to myself: “This is indeed a country of freedom. Even a bird can pick on me.”

In China, this would be totally impossible. All the birds are afraid of people. They would never dare to be near any person, not to mention to rob food from a human’s hand. Otherwise, they would likely end up on someone’s dinner table.

I remember, when I was a child, I saw a young boy who caught a bird, wrapped it in wet mud, and choked it to death. Then he threw it on a hot coal stove and cooked it for his dinner. We were all excited, screaming and jumping around while we watched the boy roast the bird. It didn’t occur to any of us that this was inhumane, cruel, or perhaps even a violation of animal rights.

In a country where food was rationed, some people were starving, and eating meat was considered a luxury, the concept of protecting animals did not even exist back then.

Twenty years later, China has changed to a very different country. Each time I go back to China, I see amazing changes. It struck me that when I left China 20 years ago, there was no Chinese dream. I had to leave my country and go to America to pursue my dreams of a better future. But today, many young people in China can start their own businesses and have a lot more opportunities.

At the same time, however, I found increasing fears in the West about China’s spectacular growth. While some fears might be legitimate, most fears are unrealistic or due to misunderstanding. But these fears can be a self-fulfilling prophecy, and they are a source of global instability.

As a Chinese native and an American citizen, I feel compelled to bridge the difference in understanding between China and the West, because I believe the world’s stability and prosperity will depend on how well China and the West understand each other , trust each other, and learn from each other.

So, The Chinese Dream, taking its title from the American Dream, shows that many of these fears are misplaced. It deconstructs many myths about China, and offers an alternative view that the rise of the Chinese middle class provides a balancing force for the world economy and is a catalyst for us to realize our global oneness.

In writing this book, I traveled all over China and spoke to more than 100 people. The book features interviews of Chinese entrepreneurs, rural migrants, office workers, managers at state-owned companies, executives at foreign-owned firms, Communist party members, and government officials. In order to gain a clear view of China today, I also provide a careful analysis of social and political forces at work in Chinese society, as I take you on a journey to many places that reflect my own life-changing experiences.

Now, I’d like to tell you a story about Chinese consumers.

On a trip to China, after passing through the security check at San Francisco International Airport, I went into the first duty free store I saw on the concourse – Gucci. I saw two Chinese women trying on different pairs of shoes. Because they spoke my native tongue – Mandarin, I knew they were from China.

One of the women brought a pair of shoes that cost $475 without any hesitation. After they left, I chatted with the saleslady at the store. She told me that many Chinese had bought luxury goods in recent years. The day before, she sold a purse for $1,200 to a Chinese woman. The woman bought the purse for her daughter, who was studying in college in the States. She wanted her to impress their neighbors when they returned home.

After I boarded the airplane, I settled into my seat in economy class. Then I saw the woman who bought the Gucci shoes walk down the aisle, carrying many fancy boxes from Gucci, Versace, and Fendi. I thought to myself, if I could afford a pair of shoes for $475, I would be sitting in first class.

I was curious. So, I started a conversation with her. I learned that she worked in a government agency in Beijing. She and her friend were in a tourist group that toured eight U.S. cities in 12 days. She said many luxury products she bought were for her friends – they gave her a shopping list before she came.

I knew people who worked in government in Beijing making about 5,000 yuan a month, which was about $800. How could people with that income afford luxury goods that cost thousands of dollars?

Here are three truths about Chinese consumers:

First, Chinese have more money than you think. Chinese households hide “grey income” that is never reported. For example, many state companies give big bonuses that are not accounted for as official salary.

Second, Chinese are status conscious people. They would pay premium prices for products and services that can enhance their “status.” But for products and services that their neighbors and friends cannot see, they would be very price conscious. For example, the woman who bought Gucci shoes would not spend more money on first class airfare.

Third, the next big opportunity is in smaller cities. Recently, I visited a second tier city in Western China, called Chengdu, with about 5 million population. At Chengdu’s downtown, you can see big signs for “Cartier,” “Louis Vuitton.” Chengdu’s retail was booming. And China has hundreds of cities like that.

A recent Credit Suisse report indicates that Chinese consumption will reach $16 trillion by 2020, and China will become the largest consumer market in the world. This shows how big the opportunity is in China. That’s why I said the rise of China’s middle class is the biggest story of our time.

Now, I’d like to spend a few minutes to discuss the main thesis of my book: The Oneness of the World.

Because I am a Chinese native and American citizen, I have straddled two cultures and lived at the crossroads of the East and West. My personal experience tells me that the differences between the East and West are more complementary rather than contradictory.

For example, for years, the Chinese economy has been heavily dependent on investment and exports. Many Chinese save a big chunk of their incomes for a raining day. On the other hand, people in the West have been spending beyond their means for decades.

We know that the West’s economy is imbalanced with excessive borrowing. The Chinese economy is also imbalanced – but with the opposite problem, such as over-saving.

Both the Western and Chinese economies need to rebalance, and this process has already begun. The Chinese middle class is creating enormous opportunities for Western companies selling into China. As this process unfolds, the Chinese economy will rebalance from over-saving, and the West’s economy will, hopefully, rebalance from over-spending.

When major economies, such as the UK and China, with opposite strengths and weaknesses can rectify and fortify each other, the world will be able to thrive on a virtuous cycle of globalization. This is what I mean by “the Oneness of the world.”

To summarize what I said, the rise of China’s middle class is the biggest story of our time. It will inevitably disrupt the world, as the dynamics of the global economy, environment, politics and culture will be altered. But The Chinese Dream offers a hope. It calls for the recognition of “unity in diversity’, and shows the incredible opportunities that await the world, if a spirit of oneness and understanding can be brought to bear on relationships between China and the West.

In closing, I would like to leave you with a final thought, which goes back to the reason I wrote my book The Chinese Dream.

I love China, because China is the country where I was born and grew up, the country where I have blood connections, and the country that has made me who I am.

But whenever I am in China, I find I love America more than ever, because America is the country where I have found my dreams, the country that gives me a new spirit, and the country that has made me more than who I am.

I believe that the world is becoming increasingly interconnected and interdependent. As I said earlier, the world’s stability and prosperity will depend on how well China and the West understand each other, trust each other, and learn from each other.

So, I invite each one of you, and encourage you, in whatever endeavor and capacity, to make a difference by becoming a bridge between China and the West, because the world’s stability and prosperity depend on it.

Upon the invitation of Lord Wei, a member of the House of Lords in the UK, I will be speaking at Asia House in London on December 5th. I am very honored that Lord Wei will share the stage with me and have a conversation about the Chinese Dream. Please see the invitation below:

Lord Wei is the youngest member of the House of Lords and a former adviser with the UK Government on the Big Society project. Due to his extraordinary work as a community leader, he was appointed a life peer at age thirty-three by Prime Minister David Cameron.

Register at:  http://thechinesedream.eventbrite.com

I will also be attending the House of Lords to discuss with Lord Wei the future of the Chinese dream, and how overseas Chinese can help bridge China and the West to create a more balanced and sustainable world.

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A few months back, I wrote an article “What Is the Chinese Dream” here. In that article, I recounted an incident in which someone asked me: “tell me in one sentence or two, what is the Chinese dream?” I stuttered, and then said, “This is a simple question, but there are no simple answers.”

Since then, I have been thinking about this question, “what is the Chinese Dream?” I feel a little foolish that, having written a book titled The Chinese Dream, I still cannot articulate what the Chinese dream is.

When I speak to an American audience, I often say “the Chinese Dream is like the American Dream” (and this has even offended some of my Chinese compatriots). Yes, the Chinese middle class wants what Americans have – owning a big house, driving a luxurious car, and living a comfortable life.

But many would argue with me that that is not the essence of the American Dream.

Wikipedia defines the American Dream as “a national ethos of the United States in which freedom includes a promise of the possibility of prosperity and success.” American historian James Truslow Adam coined the term “the American Dream” as “life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement.”

My version of the American Dream, which I hope many would agree with, is:  regardless of one’s background, with determination and hard work, one can achieve whatever one aspires to in life.

In order for such a dream to thrive, it needs a system that encourages entrepreneurship, creativity, and diversity. That system must also guarantee equal opportunities, freedom, and rule of law.

During my trip to China in June, I asked Chinese audiences what they thought the Chinese dream was. No one, not a single person, could answer the question. To put it bluntly, China doesn’t have the Chinese dream. Or, there is no “Chinese Dream” that defines China the same way that the American Dream defines America.

This is a serious problem for China. It is like a person without soul, a computer without an operating system, and a ship without a navigator.

In Beijing, a young woman challenged me: “Why do we need a dream?” she asked. True. The Chinese are pragmatic people. Good health, good fortune, and good family are all they need – fair enough.

In writing my book The Chinese Dream, I spoke to over one hundred people in China. They are from all walks of life – entrepreneurs, office workers, rural migrants, and so on.  About half of them said they didn’t have dreams, didn’t bother to dream, or there was no use to dream because dreams and reality are too far apart.

Without dreams, one will lose the source of inspiration and imagination. It is dreams that drive upward mobility, that allow us to see beyond our limitations and achieve what seems impossible.

When I left China 20 years ago, there was no Chinese dream. I had to leave my country and come to America in order to pursue my dreams of a better future. Today, many young people in China can start businesses and they have a lot more opportunities. But many of them still want to come to America. There is still no Chinese dream.

Recently, more and more Chinese middle class families have emigrated to the United States. They saved up enough cash, sent their children to American universities, and bought properties in the States and settled down here.

One might ask “why?” Today, China seems to have all the opportunities while the United States seems to have all the troubles. Yet, the promise of the American Dream is still attracting people from around the world.

What is the Chinese Dream? This question is not only important to China, but also to the rest of the world. Today, China is the second largest economy in the world, a major economic power. What does China stand for, what will China become? People around the world are watching and speculating.

I believe part of the reason that people in the West fear China is that they are not certain whether China will be a benign power or an evil power because they don’t know what the Chinese Dream is.

In my recent speech, one person from the audience asked: “I understand many positive things you said about China, but why does China support regimes like North Korea? We consider Kim Jong-Ji as evil as Gadhaffi.”

I explained to him that Chinese don’t see friends and enemies the same way American do because they don’t see things as black and white. But honestly, I don’t have an answer to this question.

Recently, a Canadian reporter discovered that China intended to sell a huge amount of weapons to Gadhaffi during the final months of his regime. As a commentator from Phoenix TV, a Hong Kong based Chinese TV station, pointed out, the Chinese government has no problem befriending the governments with bad reputations. So don’t blame the West for demonizing China.

The United States as a superpower has done many wrong things and bad things internationally. But people around the world in general know what the U. S. stands for. Some people may disagree or resent U.S. foreign policies, but few people see the U. S. as an evil power.

It is time for China to define a new dream. The real Chinese dream has to come from the Chinese people – something that reflects the fundamental values of who they are and what they represent.  It will probably require some deep soul searching of an entire generation or even several generations of the Chinese people to identify the true Chinese dream.

Now my book The Chinese Dream is being published in China. It is my hope that it will not only serve as a bridge between China and the West, but also start an important conversation about the Chinese Dream.

What do you think? Please add your version of the Chinese Dream in the comments area.

(This article is originally published on Forbes)

I was on KTSF Channel 26, a San Francisco Chinese TV station, on Sept. 5, to talk about my book The Chinese Dream and the impact of the Chinese middle class on the U.S. economy.

I will be speaking at Authors’ Series in Saratoga Library on Wednesday, September 7, 2011.

This event is organized by the Friends of Saratoga Libraries, a non-profit organization founded in 1972. Here is a link to the Authors’ Series.

The event will start at 10 am and be held at Community Room in Saratoga Library. Please join me if you can.

Here is more information about The Chinese Dream:

In The Chinese Dream, a groundbreaking book about the rising middle class in China, Forbes columnist, consultant, and China expert Helen Wang challenges us to recognize that some of our fears about China are grossly misplaced. As a result of China’s new capitalist paradigm, a burgeoning middle class-calculated to reach 800 million within the next fifteen years-is jumping aboard the consumerism train and riding it for all it’s worth-a reality that may provide the answer to America’s economic woes. And with China’s increasing urbanization and top-down governmental approach, it now faces increasing energy, environmental, and health problems-problems that the U.S. can help solve. Through timely interviews, personal stories, and a historical perspective, China-born Wang takes us into the world of the Chinese entrepreneurial middle class to show how a growing global mindset and the realization of unity in diversity may ultimately provide the way to creating a saner, safer world for all.

• Deconstructs the myths about China as a superpower and global manufacturing power
• Takes us into the world of the driven middle class and shows how the not-so-private sector operates
• Provides a historical perspective on China and examines the possibility of democracy in China’s future
• Shows how a mindset that embraces the idea of unity in diversity could help solve China and America’s growing energy, health, and environmental problems

Also, please watch the book trailer on the left. I look forward to seeing you on Sept. 7!

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Since my book THE CHINESE DREAM is translated into Chinese and available to Chinese readers, I opened a Sina Weibo (Chinese Twitter + blog) account to interact with my Chinese fans.

Here is my weibo address: http://weibo.com/TheHelenWang. If you are also on Weibo, please connect with me. I look forward to interacting with you!

Until next time, live your dreams fully, everyday!

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