Welcome to China
This week I'm in Beijing. And the first thing I noticed is how American it feels. The streets look like American streets, the road signs look like American road signs, and the cars look like American cars. In fact, many of the cars are American cars. The other day we walked past a Tesla.
It's a testament to market integration. When markets are not integrated, it's like each is a little Darwinian island. Protected from predators, the local products are free to adapt to local conditions. But as information costs have lowered, it's easier to know what else is out there. As transportation costs have lowered, it's easier to get what other people have. And as barriers to entry have lowered, more competition enters and the strongest global businesses survive.
The one place that felt distinct from America further confirms the miracle of market integration. Even though the moment I landed I felt like I was in America still, the one place where I felt instantaneously transported to another world was the paradoxical hutongs.
The hutongs are the city's historical section. The narrow alleys and haphazard layout reflect a time when buildings were developed without worrying about how accessible the area was to cars. The construction has a distinct style from a time when Chinese markets were isolated (or at least insulated) from the world. Their historical charm makes them a popular tourist attraction, which leads to the paradox. These buildings have been updated and retrofitted as souvenir stores. But the souvenir stores don't even necessarily sell Chinese trinkets. We saw Mickey Mouse, One Piece, and Pokemon. The first thing I saw when I walked in was a giant Goku statue.
The historical distinction had met the modern market.