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?
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?
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.
As the Chinese economy shifts from exports and investment toward domestic consumption, the country is counting on the middle class to drive consumption levels higher. A good reason to be optimistic is that the growing middle class club, with more millennials, is getting more comfortable with borrowing. Yet it is also a worrying phenomenon because the amount of consumer debt keeps climbing. Meanwhile, the red-hot property market has always been a heavy burden on Chinese households and has been getting even heavier in recent years. Will China’s middle class be derailed? Should we worry about the finances of Chinese middle class?
Economic changes and government policies are driving millions of China’s migrant workers away from the wealthy coastal regions back to the less developed western regions. The trend is a clear sign that a fundamental change to China’s economy is in progress, as a growth model that lifted more than half a billion people out of poverty starts to slow. From the early 1990s onwards, China’s double-digit GDP growth was fueled largely by the cheap labor provided by people leaving their farms in China’s poorer inland provinces to find work in the factories springing up along the coast. Now this has changed.
Imagine a city where commuters are chauffeured to work by self-driving cars and artificial intelligence systems control every power plant, traffic light and light bulb, making road accidents, power cuts and even traffic jams a thing of the past. Thanks to 5G, the latest protocol for mobile communications, this vision may be realized soon. The world’s leading telecoms companies are already testing the next generation of wireless internet and the first 5G services could be rolled out in 2019. China and the US are locked in a furious battle for control of this and the winner will gain a big economic advantage for years to come.
Decades of breakneck development in China have taken a terrible toll on the air, water, and soil. The good news is that the government has started a massive anti-pollution campaign, investing at least $477 billion in environmental protection and shutting down thousands of factories. While many are being driven out of business by the campaign, it’s also creating new opportunities for green technology companies and pushing manufacturing companies to upgrade. And although a government-led campaign, further clean-up efforts can be made by private companies as local governments search for clean solutions.