Few thinkers can speak about global governance with as much authority as Kishore Mahbubani. A former President of the United Nations Security Council, Permanent Secretary of Singapore’s Foreign Ministry and Dean of the renowned Lee Kuan Yew School of Public Policy at the National University of Singapore, he has been named “the muse of the Asian century”. In his latest book, due next year, Mahbubani plans to tackle the rising tensions between the US and China. As he explains, the US should embrace a more minimalist and strategic approach to foreign policy to maximize its interests in an era of Asian dominance.
To many people in its home market China, Transsion Holdings is a company name they’ve never heard of. But this smartphone maker, based in Shenzhen, taking over 38% market share, is rising to dominate the smartphone market by with its Tecno Mobile, Itel and Infinix. Its success shows what differences can a small company make by truly catering to consumers’ long ignored needs, as said by local tech expert, “Transsion has succeeded because they addressed the problems of the market directly. They make phones with features that are attractive to Africans.”
You are invited to download the Fall 2018 issue of CKGSB Magazine. “The old world is dying; the new world struggles to be born,” Antonio Gramsci wrote. The Italian philosopher was discussing Europe during the early 20th century, but the phrase appears just as apt when considering East Asia nearly a hundred years later. This […]
For China’s technology sector, the decision of the United States to hit Shenzhen-based telecommunications giant ZTE with a trade ban in April was an abrupt and painful wake-up call. Until then, many in China had grown accustomed to thinking of their country as a global leader in technology. After all, China’s smartphones, high-speed railways and e-commerce platforms were the envy of the world. But in the days following the ban, designed to punish ZTE for violating US sanctions on Iran and North Korea, it became clear that one of China’s most successful companies was totally dependent on American suppliers.
China’s huge current account surplus was once the symbol of its status as the “factory of the world.” But in recent years, that surplus has been shrinking. Last year, it sank to 1.3% of GDP. The half-year deficit announced in August was the first in more than 20 years. Some economists predict China could soon be running a current account deficit. If that happens, it will be a watershed moment with implications for all manner of issues, from the policies Beijing is able to pursue to the status of the RMB as a global currency and maybe even the way the US finances its debt.
The negative effects that industrial revolutions unleash on human society always stem from an overestimation and abuse of the power of new technologies. It has never been more important to heed this point than today. Big data and artificial intelligence (AI) are bringing forth a new industrial revolution, and the blind worship of these innovations is already on full display in some quarters.
In October, the CKGSB Business Conditions Index (BCI) dropped slightly from the worst reading to date in September, from 41.9 to 41.4. Although not quite as dramatic a decline as the previous month, the deterioration of conditions for doing business in China should not be underestimated. It shows that the majority of sampled companies, some of the most competitive private businesses in China, are pessimistic about their prospects for the next six months.
Sometimes, a major innovation starts at the top of a market and works down—think of Tesla’s electric sports car. Other times, as innovation theorist Clayton Christensen noted in The Innovator’s Dilemma, innovations bubble up from the bottom, beginning with a product that has limited functionality and seems at first like little more than a toy. That second uphill path has been the trajectory of the electric bicycle, which over the past 20 years has become an important mode of personal transportation in China and is now beginning to make inroads in the rest of the world.
What is the most important thing for a startup? Growing your business by focusing on the value to the customer is the answer given by Sean Ellis, founder and CEO of GrowthHackers, a service that helps 200,000 members with their growth strategy. According to Ellis, “growth hacking” is more than a buzzword in Silicon Valley—it’s a marketing strategy with actionable methods that prioritize business growth.
For nearly 50 years, most of the world’s oil has been bought and sold with US dollars. But that may be changing, as the energy exchange center in Shanghai has begun trading a yuan-denominated oil futures contract. Six months after the contract, more 10% of the world’s oil is now traded in yuan. Why are the Shanghai contracts so popular? Will the world enter a petrol-yuan era from petrol-dollar era? How will the situation evolve against the background of trade war between the two largest economies?