China led the world technologically in the early 15th century, yet Europe surpassed it overnight. How did this come about? Maverick economist Deirdre McCloskey offers an answer in her work. Although in her youth she fell under the sway of socialist economists, she brings an iconoclasts’ view to her subject believing it is wrong to limit the achievements of humanity to academic theories concerned solely with maximization of utility. Her latest book, Bourgeois Equality, is the concluding volume in a trilogy that seeks to explain “The Bourgeois Era,” which she believes laid the basis for the material and spiritual wealth enjoy by the modern world.
Although China’s official GDP for the first two quarters and industrial growth exceeded expectations, the industrial economy has not yet bottomed out, according to the latest CKGSB study. Led by CKGSB Professor Gan Jie, the study shows that overcapacity remained at a historical high in the second quarter, and product and cost prices continued to rise, while production stayed flat. Meanwhile, the gap between the BSI of state-owned enterprises and that of private enterprises kept widening. The latest BSI findings show that the structural problems of China’s industrial economy remain a significant concern.
Historians say that paper currency was invented by the Chinese during the Tang Dynasty. Today, their descendants are taking the lead again: Young Chinese are abandoning cash. Shop anywhere in China–from a grand shopping mall to a small street vendor–and you can use your smartphone to pay. Of course, the wide acceptance of smartphones and 4G internet is one thing, the rise of fintech firms like Ant Financial is another. Yet to seriously phase out cash, authorities and professionals are pursuing something more than just QR codes: digital currencies based on blockchain technology. Despite the cracking down on unfavorable operations like ICOs, China is studying blockchain in a rather serious way.
Is it true that consumers nowadays need less stuff? Statistics show that in the West at least, the long shopping spree is ending—people are spending more of their disposable income on recreational activities like travel and dining in good restaurants, but less on buying things. Even in China, a country that many thought to have just entered a material era, people have shown less interest in buying new things. What on earth is “minimalism”? What are the reasons behind this trend? For business, minimalism undoubtedly presents a challenge. What can you sell to people who’ve decided they don’t want more?
Wellness tourism is a $3.7 trillion market globally and China is becoming one of the largest source countries for tourists who wish to combine tourism and medical treatment. 2016 saw the greatest number yet of Chinese tourists opting for such medical travel, and the largest spending ever. The rising numbers can be explained by a lack of medical resources domestically combined with people making overseas medical tours a form of luxury entertainment. What are the most favorable destinations for medical tourism? How do people book these tours and how emerging tourism companies make money from such customized trips?
Drone maker DJI made drones, once a high-end toy for rich niche hobbyists, into a mainstream consumer product. Begun 10 years ago in a college dorm room, the company now controls 70% of the consumer drone market. Xu Huabin, Vice President of the Shenzhen-based tech firm, explains how the company’s product-driven philosophy helped the firm grow from a maker of model planes to become the world’s largest commercial unmanned aircraft manufacturer. He also discusses DJI’s future plans for diversification and industrialization—to go beyond only making drones with cameras to developing drones with industry-tailored features for diverse customers including engineers and farmers.
Silicon Valley may hog the artificial intelligence (AI) limelight, but Chinese companies are catching up by implementing AI technologies in real life. According to a McKinsey Global Institute research report, China is one of the leading global hubs of AI development and its advantages include the vast population and a diverse industry mix that has the potential to generate huge volumes of the data needed to feed AI systems. That population not only provides an enormous market for AI-related products, but also, with the large number of internet users, about 731 million, China generates more data than most other countries—a key to AI innovation.
Many people in India still have the impression that Chinese products are cheap and of low quality. Yet India’s smartphone market is 51% Chinese, which may surprise many Indians. And it’s not just smartphones: More Chinese companies, from new tech firms to traditional manufacturers, are heading to China’s southern neighbor, along with many of the largest multinational enterprises. Companies like Ebay, Apple and Uber, have all targeted India as their next growth market. For Chinese companies, though, India market entry might not be easy. They have to face both their old competitors as well as rising local Indian firms.
Although official data for first-quarter GDP and industrial growth exceeded expectations, the industrial economy has not yet bottomed out, according to the latest CKGSB survey. The survey, led by CKGSB Professor Gan Jie, shows that overcapacity remains at a historical high, both in terms of its prevalence and severity in Q1 2017. As in 2016 Q4, rising costs have been the driving force behind rising prices. Among firms with product costs inflation above 5%, cost rises were the most prominent. Meanwhile, the advantage of state-owned firms over private firms has increased in recent quarters.
HNA Group is the most acquisitive Chinese conglomerate in China. Through acquisitions, the group quadrupled its size and made its debut on the Fortune 500 list as the world’s 464th biggest firm in terms of revenue. And it aims higher: becoming one of the top 10 by 2025 with holdings of $5–6 trillion in assets—more than double the assets held today by JPMorgan, the biggest bank in the United States. What is its business model like? How did the Group, which started as a small regional airline company in China’s southernmost island, with only two jets, make it? What are the risks behind the buying spree?