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?
The wish to be healthier and the benefits that can come of it are boosting the growth of fitness gyms and sporting events. During the past couple of years, over 37,000 fitness clubs mushroomed in China. And in 2016 alone, 2.8 million people participated in 328 marathons, the latter number now being 14 times the level of five years ago, according to the 2016–2017 China Fitness Industry White Paper and the Chinese Athletic Association (CAA). So Chinese consumers are ready to pay for health and wellness, but have the fitness clubs figured out their best offer?
Medical spending in China is increasing every year, and people have started to buy medicine online, with nearly 3 million people buying medicine through mobile apps, among which the largest one is Yiyaowang–the”No.1 pharmacy.” Set up by Yu Gang and his partner, the founder of China’s first large online supermarket, Yihaodian, Yiyaowang is also a key part of a healthcare ecosystem that combines an online hospital, a drugstore and patients. Yu, an experienced businessman and a scholar, tells how he built the ecosystem, how it simplifies the medical process and gives patients access to cheaper drugs.
eSports is more than playing digital games online. With an estimated market value of $104 million in 2017, it is a multi-billion industry that both traditional and tech companies are pursuing in China. It is about networking, with millions of people watching contests online at a same time, and about a new way for brands to get closer to Chinese millennial, a demographic many find tricky to connect to. Behind the momentum is both digital sophistication and a maturing internet ecosystem in China. Yet to continue expanding, the industry is facing the difficulty of finding an entrance for traditional sports like soccer and basketball.
Before Daniel Kahneman, few if any psychologists influenced the field of economics. But the Nobel laureate reversed the assumption underpinning most economic theories: people always make rational choices. “People are rational, except they are myopic,” says Kahneman. As a result of his work, which pioneered the ideas of behavioral economics, individuals learned how to modify their less-than-perfect decisions and organizations learned to take human limitations into consideration in decision-making. In this interview, Kahneman talks about the history of his research, how he, who began as a psychologist, ended up influencing economics, and why his work generated so much impact.
Professional networking platforms have already changed the way people find and do work. Where do observers of the virtual working world think this functionality may be heading? What consequences might that have for professionals? Some observers think there will be both utopian and dystopian possibilities ahead for virtual networking because although virtual networking makes it easier to find job opportunities and reduce transaction costs, people or organizations may also misuse the online data or use it to entrench an elite, extract rents, or manipulate people. Others see more tailored networking services, such as using artificial intelligence in recruiting.
For decades, China has been a top destination for foreign firms to move their operations abroad, now the trend is reversing—Chinese firms, especially manufacturers, are now moving to the US, not only to lower the cost of production but also to build their brands in global market. Indeed, China is losing its old advantage of cheap labor and raw material, and in certain parts of the US, the land is much cheaper than in China. Meanwhile, the re-booming US economy, flexible financial system and beneficiary tax policies are also driving ambitious Chinese entrepreneurs, who are changing the “Made in China” to “Made in the US”.