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Series: Doing Business in China I

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The Environments of Chinese Business

EDITORIAL

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Doing business in China is a much needed series on one of the contemporary forces affecting the global economy. Will China rule the world? If so, what will be the implications? China is now the second largest economy in the world, measured by purchasing power parity GDP, and will, by some estimates, overtake the USA by 2017. What does that mean for the globalization of the Chinese economy and its impact on the rest of the world?

The globalization of the Chinese economy has been a conference topic organized at Harvard University for five years in a row (see www.chinagoesglobal.org) producing the China Rules. The fact that China will surpass the United States in the figure most used to compare economic might means that increasingly China is boasting more influence on the global stage, backed by a growing military, and that it will exercise more say in international organizations such as the International Monetary Fund and the World Bank. By some measures, even now, China has already surpassed the United States.
For instance, in the demand for new autos and the consumption of various resources China indeed now rules. China’s large population, high economic growth rates and its reputation as to some degree a still unexploited market ensure that it is a country foremost in the minds of international investors and globally expanding businesses.

One key drawback to business in China is governance. Governance is the way a country implements and enforces rules, controls corruption, limits political risk, and provides voice and accountability to its citizenry. The weakness of Chinese governance can be a hindrance to sustainable growth. According to the World Bank governance indicators, China is far below global averages in most dimensions.

China’s GDP per capita is also relatively low. Large percentage increases in some areas do not necessarily translate into a great market. Addressable markets in China are, in fact, much smaller than some companies predict. Engaging, marketing and negotiating in China merit a discussion of key success factors. Historical, cultural, economic and political antecedents to contemporary Chinese business help understand the enigma, fascination and fear surrounding the debates about China. When the Chinese GDP eclipses that of the USA, it would be perhaps the first time in history when a developing country was also the leading economy. International political relations, business opportunities and risks, cultural encounters and the world economy in the 21st century will be shaped by the emergence of China.

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TALKS IN THIS SERIES (18)

Political Environment of China
Play '1. Township and village enterprises (TVEs) (42 mins)'
1. Township and village enterprises (TVEs) (42 mins) More info
Dr. David J. Pollard  –  Leeds Metropolitan University, UK

TOPICS COVERED IN THIS TALK

  • The background to TVE development
  • Evolution of TVEs
  • The economic contribution of TVEs
  • TVE statistics and possible reasons for success
  • TVE models
  • Some TVE examples (Cord Fabric, Shangfeng, Golden Cat, Kelon)
  • TVE advantages and disadvantages
  • Comparison of TVEs with SOEs
  • TVEs and strategic alliances
  • Recent trends & the future of TVEs
Play '2. The political economy of China-U.S. relations: the group of two (44 mins)'
2. The political economy of China-U.S. relations: the group of two (44 mins) More info
Dr. Thomas D. Lairson  –  Gelbman Professor of International Business, Rollins College, USA

TOPICS COVERED IN THIS TALK

  • Complex interdependence
  • Deep interdependence
  • Multiple forms of interdependence
  • Differentiated gains and loses
  • Management of interdependence
  • Foreign direct investment
  • Foreign invested enterprises
  • Regional production networks
  • Trade imbalances
  • Foreign reserve holdings
  • Economic rebalancing
  • Beijing Consensus
  • Washington Consensus
  • Preferential trade agreements
  • ASEAN
  • Trans-Pacific Partnership
  • Exchange rate conflict
  • Liberalization of exchange rate
  • Financial power
  • Consumption
  • Investment
  • Urbanization
  • Transnational firm strategies
  • Competitiveness
  • Innovation
  • Clean energy competition
  • Shifting balance of political-economic power
Play '3. An institutional perspective and the role of the state for Chinese OFDI (29 mins)'
3. An institutional perspective and the role of the state for Chinese OFDI (29 mins) More info
Dr. Bing Ren  –  Professor of Management, Business School of Nankai University, China
Mr. Hao Liang  –  Center for Economic Research, Tilburg University, Netherlands

TOPICS COVERED IN THIS TALK

  • State capitalism
  • State-owned enterprises
  • National champions
  • Formal control to informal control
  • Corporate governance and administrative system
  • Managerial incentive structure
  • Ideological control
  • Political promotion system
  • Enforcement mechanism
  • Two-stage globalization
  • Split-share reform
  • The role of the Chinese state
  • The role of the foreign country state
  • Debates
Play '4. Globalization and governance: China’s politics (20 mins)'
4. Globalization and governance: China’s politics (20 mins) More info
Prof. Julian Chang  –  Tsinghua University, China

TOPICS COVERED IN THIS TALK

  • Globalization
  • Governance
  • Levels of analysis
  • Public policy
  • China
  • Chinese business
  • Chinese overseas direct investment
  • Governance changes as a result of internationalization

Economic Environment of China
Play '5. Getting real about China: myths about China debunked (45 mins)'
5. Getting real about China: myths about China debunked (45 mins) More info
Mr. Jan Willem Blankert  –  Asia Analyst

TOPICS COVERED IN THIS TALK

  • Myths about China
  • The serious problem in China's rise
  • China's perspectives
  • Myth 1: "when China rules the world"
  • Myth 2: "They are stealing our jobs"
  • Myth 3: "China will overtake us"
  • Climbing the world prosperity ladder
  • Myth 4: “China is buying up the world”
  • Myth 5: “China will never be a democracy”
  • China in the East Asia region
  • China and ASEAN
  • China relations with Taiwan and Japan
Play '6. Myths of doing business with Chinese (25 mins)'
6. Myths of doing business with Chinese (25 mins) More info
Dr. Mona Chung  –  Deakin University, Australia

TOPICS COVERED IN THIS TALK

  • Outline of the presentation
  • Doing business with China
  • China business development
  • The uniqueness of China
  • Costs of doing business with China
  • Relationship building in doing business with China
  • Chinese economy
  • Power
  • Language
Play '7. The change and continuity of China’s trade policy and its participation in global governance (61 mins)'
7. The change and continuity of China’s trade policy and its participation in global governance (61 mins) More info
Dr. Wei Liang  –  Graduate School of International Policy and Management, Monterey Institute of International Studies, USA

TOPICS COVERED IN THIS TALK

  • Trade policy
  • China
  • Rise of China
  • Globalization
  • U.S-China trade relations -WTO
  • Asian Regionalism
  • Developing countries

Social Environment of China
Play '8. Social consequences of globalization: from isolated to globally connected (29 mins)'
8. Social consequences of globalization: from isolated to globally connected (29 mins) More info
Prof. Jiaming Sun  –  Fudan University, China and Texas A&M University, USA

TOPICS COVERED IN THIS TALK

  • An unprecedented transformation
  • "The Middle Kingdom"- Foreign contacts
  • Foreign civil-related notary
  • Kinship network to overseas Chinese
  • Growing attractiveness to foreigners
  • Foreign students in China
  • International schools
  • Sent officials abroad for training
  • Cross-cultural marriages
  • An indicator of the openness of a country
  • Chinese studied abroad
  • Significant number of returnees
  • Booming overseas tourism
  • The Chinese wave
  • Instantaneous connections worldwide
  • "Internet Citizen" in China
  • Valentine's Day in China
  • Consumption and lifestyle of Chinese
  • China's rising yuppie
  • Being nurtured with transnational identities
Play '9. The importance of Guanxi in business in China (32 mins)'
9. The importance of Guanxi in business in China (32 mins) More info
Dr. Stephen Grainger  –  Edith Cowan University, Australia

TOPICS COVERED IN THIS TALK

  • Defining Guanxi
  • Business implications
  • Using Guanxi successfully
  • China
  • Mianzi (face)
  • Negotiation
  • Guanxi base
  • Guanxiwang
  • Producing Guanxi
  • Commitment
  • Renqing
  • Transferability
  • Trust
  • Real world examples supporting theory and content
Play '10. The landscapes of China: past and present influences on society and politics (48 mins)'
10. The landscapes of China: past and present influences on society and politics (48 mins) More info
Prof. Gregory Veeck  –  Western Michigan University, USA

TOPICS COVERED IN THIS TALK

  • Chinese economy
  • Uneven landscape
  • East-West stairs
  • China's topography
  • Physical features
  • Annual precipitation
  • China's rivers
  • Chinese dominion in Central Asia and trade
  • Western trade routes
  • Trade in its historical context
  • Value of West China
  • Population distribution
  • Railways
  • Rural per capita income
  • Migration patterns
  • Fuels, power, minerals, metals
  • Develop the west initiative
  • Eurasian pipeline
  • High-speed rail
  • Comparison of China's regions
  • Rural per capita change
  • National integration

Technological Environment of China
Play '11. Win the China IP war and gain globally I (52 mins)'
11. Win the China IP war and gain globally I (52 mins) More info
Prof. David Reid  –  Seattle University, USA

TOPICS COVERED IN THIS TALK

  • IP
  • What is IP
  • Why it is important to protect IP
  • The IP war
  • Losers of the IP war
  • Economic impacts
Play '12. Win the China IP war and gain globally II (35 mins)'
12. Win the China IP war and gain globally II (35 mins) More info
Prof. David Reid  –  Seattle University, USA

TOPICS COVERED IN THIS TALK

  • Protecting IP
  • IP and the global enterprise
  • Methodology to protect IP
  • BARD
  • Benchmarking
  • Audit
  • Review
  • Design of systems
Play '13. The state and development of science and technology parks in China (46 mins)'
13. The state and development of science and technology parks in China (46 mins) More info
Prof. Peter Enderwick  –  Head, Department of International Management, Auckland University of Technology, New Zealand

TOPICS COVERED IN THIS TALK

  • The importance of technology to China and its challenges
  • China's innovative potential & system
  • China's economic ambitions
  • China's technological performance
  • Research and development plans, costs, spending & staff
  • Comparison of R&D performance and R&D in OECD and non OECD economies
  • Student numbers and focus
  • Patents and trademarks per capita
  • University & Innovation 'hotspots'
  • Patents, Basic research and High-tech exports
  • Criticisms of China's S&T parks
  • Foreign MNEs concerns with Chinese R&D staff

Industry Case Studies
Play '14. Globalization and the car industry in China (46 mins)'
14. Globalization and the car industry in China (46 mins) More info
Prof. Tom Donnelly  –  Coventry University, UK

TOPICS COVERED IN THIS TALK

  • The Chinese state
  • Theories of Foreign Direct Investment (FDI)
  • Joint ventures
  • The Chinese automotive industry to 1978
  • The Open Door Policy
  • Motives of multinational enterprises (MNEs)
  • JVs and the Chinese government
  • The growth phase from 1990 -Sources of growth
  • The current state of the Chinese automotive industry -Weaknesses in the Chinese automotive industry
  • Government policy responses to weaknesses
  • Conclusion
Play '15. Globalization of China’s petrochemicals industry (42 mins)'
15. Globalization of China’s petrochemicals industry (42 mins) More info
Mr. Alain Sepulchre  –  McKinsey & Company, Hong Kong and France

TOPICS COVERED IN THIS TALK

  • Market dynamics
  • Playing fields
  • Competition
  • Feedstock
  • Pricing
  • Technology
  • Distribution
  • Comparative benchmark
  • Chinese national oil companies
  • Oil majors
  • ODI
Play '16. Australian firms doing business in China (82 mins)'
16. Australian firms doing business in China (82 mins) More info
Dr. Jane Menzies  –  Deakin University, Australia

TOPICS COVERED IN THIS TALK

  • Australian businesses doing business in China
  • Australia
  • China
  • Australia-China Business Relations
  • Doing business
  • International trade
  • International investment
  • Chinese cultural issues
  • Politics in China
  • Legal issues in China
  • Entry modes and strategies in China
  • Internationalization to China
  • Motivations for entry into China
  • Planning for entry into China
Play '17. International acquisitions of Chinese firms (41 mins)'
17. International acquisitions of Chinese firms (41 mins) More info
Prof. Ping Deng  –  Maryville University, USA

TOPICS COVERED IN THIS TALK

  • Chinese multinational corporations (MNCs)
  • Outward foreign direct investment (FDI)
  • Cross-border mergers and acquisitions (M&As)
  • International acquisitions
  • Strategic assets
  • Absorptive capacity
  • Chinese government
  • Political economy
  • National security issues
  • Institutional theory
  • Resource-based theories
Play '18. Entrepreneurship development in China (25 mins)'
18. Entrepreneurship development in China (25 mins) More info
Prof. Xiaohong He  –  Quinnipiac University, USA

TOPICS COVERED IN THIS TALK

  • China private enterprises
  • Entrepreneurial empowerment for a better life
  • Major entrepreneurial clusters in Zhejiang
  • Cluster networks
  • The world socks capital
  • Income and standard of living
  • Population living under poverty: Zhejiang vs. China
  • Capitalistic approach with socialistic mindset
  • Village led by entrepreneurial CCP secretary
  • An entrepreneurial dream for everyone
  • China 12th five-year plan
  • Environment paid high price
  • Issues facing the development
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ABOUT THIS SERIES

Editor(s)

Prof. Ilan Alon Show Biography

EDITOR BIOGRAPHY

Prof. Ilan Alon – Rollins College and Harvard University, USA

Ilan Alon is Rollins College's Cornell Chair of International Business and Director of The China Center, and Harvard Kennedy School's Visiting Scholar & Asia Fellow. He has 20 published books to his credit (3 authored), and over 100 peer-reviewed articles and chapters. His recently published books on China include Chinese Culture, Organizational Behavior and International Business Management (Greenwood, 2003), Chinese Economic Transition and International Marketing Strategy (Greenwood, 2003), Business and Management Education in China: Transition, Pedagogy and Training (World Scientific, 2005), The Globalization of Chinese Enterprises (Palgrave McMillan, 2008), and Biographical Dictionary of New Chinese Entrepreneurs and Business Leaders (Edward Elgar Publishing, 2009), China Rules (www.chinarules.org) (Palgrave McMillan, 2009). Prof. Alon established the Rollins China Center in 2005, one of few such centers in academic institutions worldwide. Prof.. Alon is a recipient of the Chinese Marketing Award, a dual award from the Tripod Marketing Association (China) and the Society for Marketing Advances (USA), and the prestigious Rollins College McKean Award for his work on education in China. He has taught courses in top Chinese MBA programs including Shanghai Jiao Tong University, Fudan University, East China University for Science and Technology and China Europe International Business School. He is also an international business consultant, with experience in China as well as other countries, and a featured speaker in many professional associations.

Publication Date  /  Last Updated

March, 2013  /  August, 2014

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Prof. Merlin Stone

TOPICS COVERED IN THIS TALK

  • Characteristics of customer management leaders
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  • The rise and rise of digital
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  • Spend on social, digital and mobile
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  • Listening
  • CRM challenges
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