The first wave of Chinese entrepreneurs are now in their 70s and 80s and it’s time to hand over the family business to their children. But in many cases it may not happen. With greater opportunities and a more international worldview, the younger generation has their own plans. Will this lead China to a business succession crisis?
Few people have had the opportunity to watch the rise of video games as an economic and cultural force as closely as Jordan Mechner, who began making video games while in high school in the 1970s. He had his first hit, Karateka, in 1984 while he was still in college, and later went on to create the Prince of Persia franchise, which to date has sold over 20 million copies. In a wide-ranging interview over Skype from his office in Montpellier, France, Mechner, who is also a successful screenwriter and graphic novelist, talked about the evolution of game design and where games might head next.
Few people outside China will have heard of Bytedance, the Beijing-based software startup that creates fiendishly addictive content apps using world-leading artificial intelligence technology. However, more than 200 million people in China—or over one in four of the country’s mobile users—use Bytedance’s products every day, and now the company has ambitions to hook the rest of the world on its apps too. Huge traffic brings customized contents to Bytedance users, which is the magic code for its success. But copyright lawsuits and competition from the BAT companies are just two of the challenges Bytedance faces.
Forget e-commerce. In today’s China, the smartest businesses are moving the digital revolution into the offline world as the boundaries between online and offline become increasingly blurred. The integration of information technology into our daily lives is allowing companies to apply advanced big data techniques to transform a range of industries previously considered relatively impervious to digital disruption. For businesses across nearly every sector, the key to future success now lies in three areas: data, smart systems and the sharing economy.
As Donald Trump signed the memorandum proposing the introduction of tariffs on $50 billion of Chinese imports on March 22, 2018, the president of the United States quipped, “This is the first of many.” He didn’t go back on his words. No one seems to be a winner, but the trade war goes on and the entire world is paying close attention. Although both sides express willingness to have talks, can the trade war be stopped? What’s the future for US-China relations?
Cities across China are making huge investments in order to transform themselves into world-class innovation hubs. So far, the Pearl River Delta Greater region, led by Shenzhen, Guangzhou and Hong Kong, is the most promising area. Connected by high-speed railways and land bridges, barriers between Hong Kong and mainland have been removed. With Hong Kong as the financial hub, Shenzhen as the innovation center and Guangzhou as the long-term trade harbor, China’s “Greater Bay Area” is taking shape. Will the regional integration create a new innovation engine that China urgently needs?
In the early seventies, mechanical pinball games still dominated the arcades, as they had since the Great Depression. Then in 1972, Allan Alcorn, a 24-year-old designer in Sunnyvale, CA, developed a two-dimensional electronic table tennis game and installed it in a local bar. Pong was an unexpected hit at Andy Capp’s Tavern, and soon became so popular that it spawned an entirely new entertainment medium, the videogame. As Devin Griffith put it in his 2013 history of the videogame, Virtual Ascendance, “[t]hree vertical lines and a bouncing square of light. That’s all it took to change the world.” Flash forward 45 years and annual videogame revenue now exceeds $100 billion.
Chinese parents today are willing to spend more than their parents’ generation were to make their children smile. Retail sales of toys and games in China leaped over 250% between 2011 and 2016, making the toy market very appealing. Today, playtime in China is more about learning than fun and games—Chinese parents think play should be constructive, making educational toys more popular than traditional ones. Meanwhile, seizing kids’ playtime is also a key to winning the toy market, and that’s why toy brands are attempting to combine their products with a learning center.
China’s once-mighty industrial heartland in the Northeast, or Dongbei, has fallen on hard times in recent years. Could the key to its revival lie in the American Rust Belt experience? As happened in the US Rust Belt, firms in Dongbei, almost all state-owned, started to struggle in the 1980s. They have been in decline ever since, leaving local governments with a cluster of problems, including heavy industry pollution and high debt levels, which would be instantly recognizable to policymakers in Gary, Indiana, or Pittsburgh, Pennsylvania. Now that its counterparts in the West have now largely transcended the phase, what can Dongbei learn from the American rust belt’s experience?
We all know that air pollution is bad for our health. But what is often overlooked is that high pollution levels also cause significant harm to our economic well being. Brian Viard, Associate Professor of Strategy and Economics at CKGSB, has been researching the economic effects of pollution for much of the past few years. His team has found persuasive evidence that the costs of air pollution are greater and more wide-ranging than most people realize. In this interview with CKGSB Knowledge, he explains how tackling the pollution crisis could actually make the Chinese economy more productive.