Authors
News Type
News
Date
Paragraphs

Across the world, societies are experiencing unprecedented demographic shifts as migration and aging reshape population landscapes. At the forefront of this global transformation is the Asia-Pacific region, particularly the countries of East Asia. Demographics and Innovation in the Asia-Pacific — a new book edited by APARC Director Gi-Wook Shin, Deputy Director Karen Eggleston, and Joon-Shik Park, a professor in the Department of Sociology at Hallym University in Chuncheon, Korea — provides a multidisciplinary examination of the demographic challenges facing East Asian nations and possible solutions.

At a virtual book launch held on March 2, 2021, contributing chapter authors James FeyrerJoon-Shik Park, and Kenji Kushida joined Karen Eggleston to discuss their findings.

[Subscribe to our newsletters to get updates on our experts' latest research.]

Published in APARC’s in-house series, the book is the second volume resulting from APARC’s Stanford Asia-Pacific Research Innovation project. It collects the research findings of participants at the project’s third conference that was held in South Korea in June 2019.

James Liang, a research professor of economics at Peking University and a leading scholar of demographics and social studies, opened the event by situating the discussion about population structure in the context of the U.S.-China technology race. China is quickly catching up with the United States in the quality of its talent pool and the number of its labor resources. It will continue to outpace and surpass the United States in talent and innovation power in the next 10-20 years, Liang says.

China, however, is on a demographic cliff, facing severe population aging and low fertility rates. Its population of young workers aged 25-44 year-olds is projected to decline much faster and sooner than its overall population, leveling out against the labor and innovation gains the United States makes through the inflow of international talent into U.S. universities and entrepreneurial ventures. To sustain its long-term growth in labor quality and innovation, China will need higher birth rates and additional talent gains through migration, argues Liang.

James Feyrer’s book chapter examines the macroeconomic relationship between workforce demographics and aggregate productivity in Asia. Feyrer confirms that the high-income Asian nations like Japan and Korea, and even some middle-income countries of the region, will no longer enjoy a “demographic dividend” boosting aggregate productivity. However, he finds that the negative consequences of shifting to an older population structure may be less severe than previously projected, and even weakening with time. Feyrer believes this may be a result of improved food security and better overall health experienced by old cohorts in childhood, reinforcing the long-reaching impacts of healthcare on societal well-being.

Joon-Shik Park focused on the specific challenges facing Korean society, where birth rates have dropped severely. These historic declines continue to contribute to rising social and political unevenness across Korean society today. Initially seen most visibly in rural areas and smaller villages, Park’s now sees this unevenness affecting the dynamics of medium-sized towns and more urban areas as well. Korea and other aging societies must find viable solutions to address these issues if they are to prevent demographic divides from hobbling development and innovation, Park says.

Closing the book launch event, APARC Research scholar Kenji Kushida offers perspectives from rapidly aging Japan. where the challenges of shrinking and aging populations, rural-to-urban population distribution, and labor shortages spur advances in technology and innovation. Kushida documents this trend across multiple sectors.

He shows that drone technology has increased the productivity of short-staffed surveying firms, while AI-assisted industrial machines allow a broader range of laborers to work in manufacturing. Even in traditionally human-dominated environments like nursing homes, staff increasingly use robots to help improve the physical and mental well-being of elderly patients. Rather than strictly retarding growth, Kushida makes the case that demographic challenges serve as a catalyst for the development and implementation of new technologies.

As the research collected in Demographics and Innovation in the Asia-Pacific demonstrates, the challenges facing aging Asian societies are complex, but there is reason to look to the future with optimism. As the editors of the volume state in their introduction to the book, “Few concepts are as critical for sustained improvement in living standards as innovation.” New technologies and solutions will be foundational to addressing the challenges of the new demographic frontiers many societies are now approaching.

Read More

A Japanese robot prototype lifts a dummy patient
News

Robot Adoption Brings Benefits to Japan’s Aging Society

In one of the first studies of service sector robotics, APARC scholars examine the impacts of robots on nursing homes in Japan. They find that robot adoption may not be detrimental to labor and may help address the challenges of rapidly aging societies.
Robot Adoption Brings Benefits to Japan’s Aging Society
Shifting Gears in Innovation Policy: Strategies from Asia
News

New Book Outlines the Role of Innovation and Entrepreneurship for Future Economic Growth in East Asia

Yong Suk Lee explains in the new volume, Shifting Gears in Innovation Policy, that while ‘catch-up’ strategies have been effective in promoting traditional economic growth in Asia, innovative policy tools that foster entrepreneurship will be needed to maintain competitiveness in the future.
New Book Outlines the Role of Innovation and Entrepreneurship for Future Economic Growth in East Asia
Stanford students participate in class.
News

University Entrepreneurship Programs May Not Increase Entrepreneurship Rates, Stanford Researchers Find

A study by Yong Suk Lee, the deputy director of APARC’s Korea Program, and Management Science and Engineering professor Charles Eesley investigates the efficacy of two major Stanford entrepreneurship education initiatives, suggesting they may not increase entrepreneurial activity.
University Entrepreneurship Programs May Not Increase Entrepreneurship Rates, Stanford Researchers Find
Hero Image
Demographics and Innovation in the Asia-Pacific
"Demographics and Innovation in the Asia-Pacific" examines the impacts of Asia's demographic challenges on the development of new technology and innovation.
All News button
1
Subtitle

Contributing authors to the new volume 'Demographics and Innovation in the Asia-Pacific' convened for a virtual book launch and discussion of the challenges facing aging societies in East Asia and the roles technology and innovation may play in rebalancing them.

All Publications button
1
Publication Type
Journal Articles
Publication Date
Subtitle
Background: The educational resources that parents provide at home are crucial to their children’s development. In this study, we focused on home reading environment, a key contributor to success rates regarding the mastery of reading skills. We aimed to investigate students’ home reading environments and examine its effect on the reading development of primary school students in rural China. Methods: We draw on a dataset composed of 10,740 randomly selected primary school students and their households in rural areas of Jiangxi province in China. Surveys were administered by trained enumerators in May 2015. Results: The results show that students exhibited quite poor reading environments and reading outcomes. Specifically, we found the majority of the rural students lacked reading and learning resources in the context of their families and their parents did not enjoy reading or support their children’s reading. Moreover, our regression analysis documented students with poorer home reading environments are more likely to have worse reading performance. Conclusion: Our study supports the significance of the home reading environment in the reading development of students in the upper elementary grades in rural China. Furthermore, the results suggest that the home reading environments of rural Chinese students must be improved.
Journal Publisher
Journal of Research in Reading
Authors
Huan Wang
All Publications button
1
Publication Type
Journal Articles
Publication Date
Subtitle
Universities contribute to economic growth and national competitiveness by equipping students with higher-order thinking and academic skills. Despite large investments in university science, technology, engineering and mathematics (STEM) education, little is known about how the skills of STEM undergraduates compare across countries and by institutional selectivity. Here, we provide direct evidence on these issues by collecting and analysing longitudinal data on tens of thousands of computer science and electrical engineering students in China, India, Russia and the United States. We find stark differences in skill levels and gains among countries and by institutional selectivity. Compared with the United States, students in China, India and Russia do not gain critical thinking skills over four years. Furthermore, while students in India and Russia gain academic skills during the first two years, students in China do not. These gaps in skill levels and gains provide insights into the global competitiveness of STEM university students across nations and institutional types.
Journal Publisher
Nature Human Behavior
Authors
Prashant Loyalka
Huan Wang
Paragraphs
Book cover showing a robotic hand holding an older human hand.

Demographic transition, along with the economic and geopolitical re-emergence of Asia, are two of the largest forces shaping the twenty-first century, but little is known about the implications for innovation. The countries of East Asia have some of the oldest age structures on the planet: between now and 2050, the population that is age 65 and older will increase to more than one in four Chinese, and to more than one in three Japanese and Koreans. Other economies with younger populations, like India, face the challenge of fully harnessing the “demographic dividend” from large cohorts in the working ages.

This book delves into how such demographic changes shape the supply of innovation and the demand for specific kinds of innovation in the Asia-Pacific. Social scientists from Asia and the United States offer multidisciplinary perspectives from economics, demography, political science, sociology, and public policy; topics range from the macroeconomic effects of population age structure, to the microeconomics of technology and the labor force, to the broader implications for human well-being. Contributors analyze how demography shapes productivity and the labor supply of older workers, as well as explore the aging population as consumers of technologies and drivers of innovations to meet their own needs, as well as the political economy of spatial development, agglomeration economies, urban-rural contrasts, and differential geographies of aging.

Desk, examination, or review copies can be requested through Stanford University Press.

Table of contents and chapter 1, introduction
Download pdf
All Publications button
1
Publication Type
Books
Publication Date
Authors
Karen Eggleston
Gi-Wook Shin
Book Publisher
Shorenstein APARC
-

* Please note all CISAC events are scheduled using the Pacific Time Zone.

 

Seminar Recording:  https://youtu.be/Mwjn39S48rE

 

About the Event: NATO Secretary General Stoltenberg will speak about how the transatlantic alliance is adapting to change in this turbulent period.  President Biden has clearly signaled that he is resolved to reach out to the NATO allies, working to repair the trans-Atlantic bond. To strengthen the bond between America and Europe and prepare the alliance for the future, the Secretary General has launched the NATO 2030 initiative.  This includes proposals on how NATO can better harness technology and innovation, tackle the security implications of climate change, and help make our societies more resilient. While NATO must continue to deter and defend against Russia, it is also keeping channels open to Moscow. The rise of China presents both challenges and opportunities that NATO has started to address. And missions in Afghanistan and Iraq are on the cusp of change, with decisions underway about what role NATO will play in the future. All in all, an exciting time to hear from NATO’s Secretary General.

This event is co-sponsored with The Europe Center.

 

About the Speaker: 

Jens Stoltenberg became NATO Secretary General in October 2014, following a distinguished international and domestic career. As a former Prime Minister of Norway and UN Special Envoy, Mr. Stoltenberg has been a strong supporter of greater global and transatlantic cooperation. Mr. Stoltenberg’s mandate as NATO Secretary General has been extended until the end of September 2022.

Under Mr. Stoltenberg’s leadership, NATO has responded to a more challenging security environment by implementing the biggest reinforcement of its collective defence since the Cold War, increasing the readiness of its forces and deploying combat troops in the eastern part of the Alliance. He believes in credible deterrence and defence while maintaining dialogue with Russia. He has also advocated for increased defence spending and better burden sharing within the Alliance, and a greater focus on innovation. NATO has also stepped up its efforts in the fight against terrorism. He strongly supports a partnership approach, with cooperation between NATO and the European Union reaching unprecedented levels.

Before coming to NATO, he was the UN Special Envoy on Climate Change from 2013 to 2014. He has also chaired UN High-level Panels on climate financing and the coherence between development, humanitarian assistance and environmental policies.

As Prime Minister of Norway, Mr. Stoltenberg increased the defence spending and transformed the Norwegian armed forces with new high-end capabilities and investments. He also signed an agreement with Russia on establishing maritime borders in the Barents and Polar Sea, ending a 30-years dispute.

Mr. Stoltenberg was also Prime Minister during the deadly terrorist attacks, which killed 77 people in Oslo and Utøya on 22 July 2011, urging in response, “more democracy, more openness, and more humanity, but never naïvete”.

Mr Stoltenberg holds a postgraduate degree in Economics from the University of Oslo. After graduating in 1987, he held a research post at the National Statistical Institute of Norway, before embarking on a career in Norwegian politics.

  • 2005-2013: Prime Minister of Norway
  • 2002-2014: Leader of the Norwegian Labor Party
  • 2000-2001: Prime Minister of Norway
  • 1996-1997: Minister of Finance
  • 1993-1996: Minister of Industry and Energy
  • 1991-2014: Member of Parliament
  • 1990-1991: State Secretary at the Ministry of the Environment
  • 1985-1989: Leader of the Norwegian Labour Youth

Jens Stoltenberg was born in Oslo on 16 March 1959. He is married to Ingrid Schulerud. They have two grown-up children.

Virtual Seminar

Jens Stoltenberg Secretary General NATO
Seminars
-

China Chats with Stanford Faculty

"Invisible China: How the Urban-Rural Divide Threatens China's Rise"

Friday, March 12, 2021 5 PM - 6 PM PDT

Saturday, March 13, 2021 9 AM - 10 AM Beijing

 

As the glittering skyline in Shanghai seemingly attests, China has quickly transformed itself from a place of stark poverty into a modern, urban, technologically savvy economic powerhouse. But as FSI Senior Fellow Scott Rozelle shows in his new book Invisible China, the truth is much more complicated and might be a serious cause for concern. 

Drawing on extensive surveys on the ground in China, Rozelle reveals that while China may be the second-largest economy in the world, its labor force has one of the lowest levels of education of any comparable country. The low levels of basic education of such a large share of workers may leave many unable to find work in the formal workplace as China’s economy changes and as manufacturing jobs both begin to automate and move elsewhere 

In this Stanford alumni event, Rozelle, who is also the co-director of Stanford Center on China's Economy and Institutions and senior fellow at the Freeman Spogli Institute for International Studies, will be joined by Hongbin Li, co-director of Stanford Center on China's Economy and Institutions and senior fellow at the Stanford Institute for Economic Policy Research, who will moderate a discussion about the major themes of the book. 

A question and answer session with the audience will follow the discussion.


About the Speakers:

Image
Headshot of Dr. Scott Rozelle
Scott Rozelle is the Helen F. Farnsworth Senior Fellow and the co-director of Stanford Center on China's Economy and Institutions in the Freeman Spogli Institute for International Studies and Stanford Institute for Economic Policy Research at Stanford University.  For the past 30 years, he has worked on the economics of poverty reduction. Currently, his work on poverty has its full focus on human capital, including issues of rural health, nutrition and education. For the past 20 year, Rozelle has been the chair of the International Advisory Board of the China Center for Agricultural Policy in Peking University. In recent years Rozelle spends most of his time co-directing the Rural Education Action Project (REAP). In recognition of this work, Dr. Rozelle has received numerous honors and awards. Among them, he became a Yangtse Scholar (Changjiang Xuezhe) in Renmin University of China in 2008. In 2008 he also was awarded the Friendship Award by Premier Wen Jiabao, the highest honor that can be bestowed on a foreigner. 

 

Image
hongbin li headshot
Hongbin Li is the James Liang Director of the China Program at the Stanford King Center on Global Development, and a Senior Fellow of Stanford Institute for Economic Policy Research (SIEPR). Hongbin’s research has been focused on the transition and development of the Chinese economy, and the evidence-based research results have been both widely covered by media outlets and well read by policy makers around the world. He is currently the co-editor of the Journal of Comparative Economics.

 

 

Register Here

Zoom Webinar
Registration Required

 

Seminars
Authors
Oriana Skylar Mastro
News Type
Commentary
Date
Paragraphs

This article by Oriana Skylar Mastro was originally published in The Interpreter, a publication by the Lowy Institute.

When China began three days of military exercises in the South China Sea’s Gulf of Tonkin back in January, some observers speculated that Beijing was testing the new Biden administration. Harsh words from Beijing accompanied the exercises, with China’s foreign ministry spokesperson Wang Wenbin declaring the drills were “necessary measures to resolutely safeguard national sovereignty and security”.

Even against this backdrop, China’s official position is that it remains committed to a peaceful resolution of the South China Sea issue. And the rhetoric China employs at different times does make for a fascinating contrast. For example, China’s Foreign Ministry asserted in July 2020 that “China is not seeking to become a maritime empire” and that it “treats its neighboring nations on an equal basis and exercises the greatest restraint.”

[Subscribe to our newsletters to get the latest from our researchers.]

How then should we make sense of the mixed messages coming from Beijing? Most China experts find discourse to be informative – if not about China’s intentions, then at least about its aspirations. But which statements are indicative of China’s true position?

I argued recently in research for the Wilson Center that scholars need to evaluate the content and specificity of Chinese national discourse in addition to the position of the author or speaker involved. To that end, I analyzed all public speeches made by members of the Politburo of the Chinese Communist Party from 2013 to 2018. Xi Jinping led both of the Politburos I studied, and each had 25 members. Since some members served in both, this yields speeches by 39 unique individuals.

The speeches related to the South China Sea could be separated into those that mentioned cooperative themes and those with competitive themes. Cooperative themes have two subcategories, cooperation, and political solutions. Competitive themes have five subcategories: sovereignty, military, freedom, tension, and non-regional countries/the United States.

In what might appear good news for regional stability, China’s leaders used more cooperative discourse in public statements about the South China Sea than competitive themes. This might be taken to indicate a willingness to compromise with other claimants – a feature that is especially evident during the first year of each new Party Congress, namely 2013 and 2018.

However, one of the tenets of deriving intentions from discourse is that not all leadership statements are created equal. We need to consider personal power, accountability, and reputation for honesty. This means that statements by Xi, who is described as having “more power and more personal authority than any post-Mao leader”, take precedent.

Ambiguity suggests the leadership wants to have maximum flexibility and avoid being boxed in by its aggressive rhetoric.
Oriana Skylar Mastro
FSI Center Fellow

So here is the bad news. My analysis showed that Xi’s statements accounted for 42.7% of the competitive themes mentioned, even though he is only one of 39 leaders during this period.

There are additional reasons to discount Xi’s cooperative statements: his reputation for dishonesty.

In September 2015, Xi made a public statement at the White House promising not to “militarise” the artificial islands China had been building in the South China Sea. Xi stated that “relevant construction activities that China is undertaking … do not target or impact any country, and China does not intend to pursue militarisation”. While the language at the time was deemed “new”, the pledge remained unclear. Then and subsequently, Xi did not promise to freeze dredging, island-building or activities in the region, nor did he offer any clarity about what “militarisation” meant. In May 2019, then–Chairman of the Joint Chiefs of Staff General Joseph Dunford said that China had “clearly … walked away from that commitment” given the “10,000-foot runways, ammunition storage facilities, routine deployment of missile defence capabilities, aviation capabilities and so forth” on the islands. My analysis in a previous Interpreter article shows that China has indeed militarised these islands to establish control over the islands and the surrounding waters.

Interestingly, China’s foreign ministry also makes more competitive statements than cooperative statements, contrary to what might be the expectation that professional diplomats would lean towards negotiations and reassurance. If soothing language was supposed to mask China’s intentions, ministry statements would be the most likely source. But instead, China seems to prioritise articulating its position on sovereignty and issuing threats to those who violate it over reassurance.

None of this means China will use force in the South China Sea. Xi’s statements calling for a tough stance to protect China’s perceived sovereignty in the South China sea lack specificity – there are no allusions to a timeline or preferred methods. Such ambiguity suggests the leadership wants to have maximum flexibility and avoid being boxed in by its aggressive rhetoric, even if it is popular with the Chinese public. And the Chinese leadership undoubtedly prefers to use diplomatic, legal and economic tools to establish sovereignty over these waters.

But my analysis suggests that China will be unlikely to make the compromises necessary on its expansive territorial claims in these waters to facilitate a viable diplomatic resolution. Instead, China’s leaders hope that political, economic and military power will convince other countries to accommodate China’s position without a fight. And if the other claimants concede to Beijing, it will be harder for the United States or Australia to push back on China’s position.

Read More

Oriana Skylar Mastro testifies to the U.S.-China Economic and Security Review Commission on Taiwan deterrence.
News

Oriana Skylar Mastro Testifies on Deterring PRC Aggression Toward Taiwan to Congressional Review Commission

China may now be able to prevail in cross-strait contingencies even if the United States intervenes in Taiwan’s defense, Chinese security expert Oriana Skylar Mastro tells the U.S.-China Economic and Security Review Commission. Changes must be made to U.S. military capabilities, not U.S. policy, she argues.
Oriana Skylar Mastro Testifies on Deterring PRC Aggression Toward Taiwan to Congressional Review Commission
Aircraft assigned to the Theodore Roosevelt Carrier Strike Group fly over the South China Sea
Commentary

How China is Bending the Rules in the South China Sea

Beijing’s misapplication of international law in the disputed waters is more complex than it seems on the surface.
How China is Bending the Rules in the South China Sea
Photograph of Xi Jinping and Vladmir Putin walking in front of two lines of armed Chinese soldiers
News

Military Competition with China: Harder to Win Than During the Cold War?

On February 10th, the APARC China Program hosted Professor Oriana Mastro to discuss military relations between the US and China, and why deterrence might be even more difficult than during the Cold War.
Military Competition with China: Harder to Win Than During the Cold War?
Hero Image
A naval ship in the South China Sea in the background fo two officers.
China’s leaders are using cooperative discourse in public statements about the South China Sea than competitive themes, but signalling more competitive actions.
Getty Images
All News button
1
Subtitle

The rhetoric weaves between cooperative and competitive, leaving the question of what – and who – to believe.

All Publications button
1
Publication Type
Working Papers
Publication Date
Subtitle
A burgeoning literature has documented the importance of elite colleges. Yet, little is known about access to elite education and its labor market implications in China, a country that produces one in every five college graduates in the world. College admission in China is governed by a single exam—the national college entrance exam, and the government sets admission cutoff scores for elite colleges. We examine the impacts of scoring above the elite-tier cutoff on a student's access to elite colleges and wage outcomes after graduation, using the discontinuity around the cutoff score. By employing hand-collected survey data, we find that scoring above the cutoff not only increases the chance of entering an elite college but also raises a young person's first-job wages after graduation. We also find that those just above the cutoff have peers with higher scores and better social networks than those below the cutoff, but it is less clear whether the two groups use their time differently in college.
Journal Publisher
National Bureau of Economic Research
Authors
Hongbin Li
News Type
News
Date
Paragraphs

The Benefits of Acing China's Most Important Academic Exam: High Scorers in the Gaokao Go to Better Universities and Earn Higher Wages

"Chinese students hoping for a reprieve from this year’s gruelling university-entrance exams are out of luck. Unlike America, where many top-tier universities have waived standardised testing requirements amid the covid-19 pandemic, China is keeping its students’ noses to the grindstone. On February 20th the Ministry of Education announced that the national exam, which determines which universities students can attend, will be held as planned on June 7th and 8th.

The annual assessment, known as the gaokao, is the biggest in the world. Every summer some 10m students in China trek to 7,000 testing centres around the country to sit the nerve-racking exam, which lasts for nine hours over two to four days. Pupils study for years, and for good reason. Those who score well on the test are eligible to apply to the country’s best universities, a prerequisite for many good jobs. The high-stakes exam is designed to be meritocratic: anyone can take it; for children from poor families, a good score can offer an escape from a life toiling on the farm or in a factory.

The gaokao influences students’ economic prospects for years to come, according to a recent working paper by Hongbin Li of Stanford University and Ruixue Jia of the London School of Economics. The authors looked at the cut-off score for qualification to enter China’s top 100 universities. Using hand-collected data from over 10,000 people, they found that, whereas students who score just below the cut-off have only a 6% chance of attending a top-tier university, those who score at or above it have a 20-40% chance. They also earn 5-9% more in their first job out of school (see chart)."

 

Read the full article from The Economist. 

Hero Image
These figures plot the probability of attending an elite (national first-tier) college against distance to the cutoff scores (which vary by province-year-track). Panel (a) is based on raw data; each point corresponds one point in the exam. "Just above the exam cut-off score: elite college admission and wages in China", by Ruixue Jia and Hongbin Li
All News button
1
Subtitle

SCCEI Co-Director Hongbin Li's research on elite college admissions and wages in China provides the basis for this article from The Economist.

Authors
Gary Mukai
News Type
Blogs
Date
Paragraphs

Stanford e-Kawasaki is an online course for high school students in Kawasaki City, Japan, that is sponsored by Kawasaki City. Launched in fall 2019, it is offered by the Stanford Program on International and Cross-Cultural Education (SPICE) in collaboration with Kawasaki City. SPICE is grateful to Kawasaki Mayor Norihiko Fukuda whose vision made this course possible. 


The two key themes of Stanford e-Kawasaki are entrepreneurship and diversity, and Stanford e-Kawasaki Instructor Maiko Tamagawa Bacha invites guest speakers with these themes in mind. Most guest speakers address one of the themes. However, when Victoria Tsai—a Taiwanese American entrepreneur who is the founder and CEO of Tatcha—agreed to speak, Bacha noted that she could not imagine anyone more qualified to share her insights on both themes. Tatcha was founded by Tsai to share the geisha’s wisdom with modern women everywhere, and to further the belief that true beauty begins with the heart and the mind. Launched in 2009, Tatcha is now one of the biggest skincare retailers in the United States.

While listening to Tsai’s guest lecture on February 5, 2021, Bacha and I were especially struck by her resilience, approachability and gift for empowering youth, openness to diverse perspectives, and respect for traditional culture. We both quickly realized what a great role model she is for all of the Stanford e-Kawasaki students but for the girls, in particular.

Resilience
While sharing her experiences as a young professional on Wall Street, Tsai mentioned that she was 21 and was next to the World Trade Center buildings when they were hit by a terrorist attack on September 11, 2001. She recalled, “We saw lots of people jumping and dying and then my husband got very sick and it made me question my purpose in life. And at that time, I didn’t know anything about ikigai [a Japanese concept that means “a reason for being”] but I knew that if I was going to spend the hours that I am awake working and not with my family and not playing, that I wanted my work to mean something.” After experiencing various jobs and going to business school, which “looked good on paper,” she decided to seek work with a greater purpose.

This led her to establish Tatcha. Tsai mentioned to the students that she hadn’t taken a salary at Tatcha for nine years. This prompted a student to ask about her motivation, to which Tsai replied, “When I think of my life’s purpose, I don’t expect it to be easy, but I do hope that it’s worthwhile. This work is my life’s purpose, so even when it gets hard, I just think, ‘that’s part of life.’” During the pandemic, I imagine that Tsai’s resilience really resonated among the students.

Approachability and Gift for Empowering Youth
I knew from articles about Tsai that she is a Harvard Business School graduate and an extremely successful CEO. Yet, by accepting the invitation to speak to the high school students in Kawasaki—some of whom are aspiring entrepreneurs—she demonstrated her desire to pass on her wisdom to the next generation. Prior to Tsai’s guest lecture, Bacha had sent her a list of questions that the students had written based on their reading about Tsai’s background. In her opening comments, Tsai noted, “You are much more advanced than I was. I could not compete with you.”

This comment seemed to quickly put students at ease. One of the students commented, “I think it’s wonderful that you found purpose in life and help people… A lot of young people like me and my friends feel lost in life, don’t have a dream or long-term vision of our lives, so I want to know how can we find our own purpose in life or dream.” This comment prompted Tsai to describe an activity that was devised by Harvard Business School’s Dr. Tim Butler, who has noted that as youth, they actually already have a hunch about what they want to be when they grow up, but just don’t know the specific names of the jobs. Tsai continued, “then, the problem is when you get older, you start hearing your friends, parents, and teachers saying, ‘oh, you should do that.’ And then in your head you can’t tell anymore if you really want to do something, or if you simply think you should do it because everybody else thinks you should do it.” The activity that Butler recommends is in two parts: (1) read articles that interest you, and identify patterns (specifically, areas of interest) in them; and (2) while keeping these interests in mind, write about what you envision yourself doing in ten years as you are the happiest that you have ever been—that is, completely focused and engaged. Tsai encouraged the students to try this, and some already have.

Openness to Diverse Perspectives
When a student asked Tsai about overcoming gender- and culture-related differences, she reflected upon three experiences: one on the trading floor on Wall Street and two in Kyoto with a taxi driver and geisha. Concerning her Wall Street experience, Tsai recollected, “When I first worked on Wall Street and I walked onto the trading floor, I was so scared. One, there were no women, and I couldn’t even understand what they were saying because they were speaking financial language… I remember being so intimidated. Then one year later, I could understand everything.” She came to the conclusion that “These people are not smarter than me. They’re just older, and the harder I work, the faster I can close the gap in knowledge. I have a great education, I have a decent mind, I have a very strong work ethic, I’ll just keep asking questions. So I figured it out.”

Concerning her experience with a taxi driver in Kyoto, Tsai noted that he is the one who taught her that there’s a difference between a job and a purpose. Through his actions, the driver taught her that his job is to be a driver but that his purpose is to make people happy. When he met Tsai for the first time, she was not feeling well and thus didn’t seem happy. After dropping off Tsai at her hotel, he went home to make CDs of images of Kyoto and delivered them to the hotel, thinking that the images would make her happy. They did and he felt only then that his job had been completed. Tsai reflected, “… and that just stuck with me and I did not know what omotenashi [hospitality that goes above and beyond the expectations of the person receiving the service] was back then, but then I felt it in my heart.”

Lastly, concerning her experience with geisha, who inspired Tatcha’s skincare products, Tsai noted “People in America don’t understand what a geisha is. The importance of a geisha is they were trained in a lot of the classical Japanese arts, such as dance, music, flower arrangement, and the tea ceremony. These are classical traditions that have very important meanings. I think that if you forget where you come from, then you don’t know where you are going. And so I try to hold on to tradition, because it matters. I just thought that’s a beautiful thing… I learned so much from geisha about entrepreneurship and about women’s empowerment through Japanese traditions.”

Respect for Traditional Culture
Her emphasis on Japanese traditions prompted a student to comment, “I was surprised that you made an innovation from old Japanese culture. However, there is a trend to discard old customs. So, how can we get a balance between new trends and old customs?” Tsai shared that what is so interesting about ancient civilizations like China and Japan is that “there is a lot of wisdom in this and something to learn from the past. What we try to do [at Tatcha] is to innovate within tradition, so I never tried to change the core of the tradition, because if it lasted 1000 years, there’s a very good reason for its continuity.”

What Does It Mean to Be a Global Citizen?
One very interesting part of Tsai’s presentation was to learn about Tatcha’s work with Room to Read, which seeks to transform the lives of millions of children in low-income communities in Southeast Asia and Africa by focusing on literacy and gender equality in education. A percentage of each Tatcha purchase is donated to Room To Read. Despite the enormity of some of the challenges that these youth face, Tsai noted that “they have a dream and they show up every day and they study hard and they work hard because they want that dream to come true. Nothing that I will ever face in my life will compare to what these little girls are going through, but then I think if I do my job and I don’t give up, then I can make sure thousands, hundreds of thousands, millions of those girls can have a different life, and then my life meant something.” This really resonated in Bacha, who is very familiar with Room to Read as her husband works for the organization.

Reflecting upon the session, Tsai noted “I learned about the concept of sekaijin [global citizen] when studying the writings of D.T. Suzuki, and I fell in love with the idea. As people who live between cultures, we have the opportunity to share the best of both worlds to advance society and uplift individuals. It was an honor to share my story of cross-cultural entrepreneurship with the students, who were inquisitive, earnest, and wise beyond their years. I believe that Stanford’s e-Kawasaki program is helping to nurture tomorrow’s sekaijin.” When I consider the question, “What does it mean to be a global citizen?,” Tsai immediately comes to mind, and believe that Tsai’s talk really encouraged the students to aspire to become sekaijin as well.


The SPICE staff would like to express its appreciation to Tsuyoshi Inoue of Kawasaki City and Hisashi Katsurayama from the Kawasaki Board of Education for their unwavering support of Stanford e-Kawasaki.

Read More

Archways and pillars in Stanford University's Main Quad
Blogs

Stanford e-Kawasaki: Arches and Pillars of Support During an Unstable Time

Stanford e-Kawasaki: Arches and Pillars of Support During an Unstable Time
SPICE Director Dr. Gary Mukai with Mayor Norihiko Fukuda
Blogs

Stanford e-Kawasaki: The Vision of Mayor Norihiko Fukuda

Stanford e-Kawasaki: The Vision of Mayor Norihiko Fukuda
120219 3010
News

Announcing the Honorees of SPICE’s 2019–20 Regional Programs in Japan

Announcing the Honorees of SPICE’s 2019–20 Regional Programs in Japan
Hero Image
Victoria Tsai in Kyoto
Victoria Tsai in Kyoto; photo courtesy Victoria Tsai
All News button
1
Subtitle

The entrepreneur and businesswoman spoke to students about how certain key experiences in her life influenced her path.

Subscribe to China