The Chinese economy faces some serious problems, including a slowing GDP growth, environmental degradation and financial disequilibrium. According to Larry Summers, former Treasury Secretary in the Clinton administration, there are some specific solutions, such as making sure that opportunities for children are the same regardless of where in China and to whom they are born, making sure that the success of enterprises depends on the quality of what they sell and taxes are collected in a fair way and, finally, making sure that those who lead enterprises and communities do so for the benefit of their stakeholders.
The opening of the Shanghai Disney Resort in June 2016 was arguably the biggest event in the history of The Walt Disney Company since 1995. Philippe Gas, General Manager of the Resort, who has been working with Disney for 25 years, discusses the challenges of building the park and offers a detailed, inside look at the long process of developing the park with the Chinese government, the unique localization that Disney built into the resort and the overall mission to bring happiness to guests. So far the park has received positive reception from the public, but according to Gas, it’s just the beginning.
Over 120 million Chinese went abroad and spent over $104.5 billion in 2015 and more are projected for 2016. But for young Chinese people, their spending isn’t all about shopping in tax-free shops. As Leo Lin Song, chief of staff of TripAdvisor says, Chinese travelers are becoming more sophisticated: they’re reaching to further places and want to have more distinct cultural experience and not afraid to explore the unknown. Yet compared to western travelers, Chinese tourists are still special. They like to read pictures and need clear guidance—and that’s where TripAdvisor chips in.
A common challenge faced by Western tech giants like WeWork and Airbnb: in China there are locally made equivalents already. Yet China is a market hard to ignore. Six years after its founding, WeWork entered the Chinese market and is trying to adapt. Localization happens in every detail, from office design to the hiring of team members. but how will the company win the already very fierce competition among the co-working spaces in China? With a more global network, or a more experienced team in the shared-office? How will it deal with the Chinese government?
China has achieved almost miraculous advancement in a mere 30 years, but at the same time is beset with a host of structural problems and contradictions that it must grapple with, especially as economic growth begins to slow. In this interview, Kroeber, the author of China’s Economy: What Everyone Needs to Know, a comprehensive introduction to China’s rise from an economic backwater in the early 1980s to the world’s second-largest economy, offers his analysis to CKGSB Knowledge on how China got here, where it might be headed, and how to understand the changes and implications.
When talking about gender equality, people think of blue-collar workers in the garment industry in Bangladesh or women in China’s factories. However, in the white-collar professional world at the other end of the spectrum, inequality exists and it has an enormous impact on individual lives and entire economies. Women in China are now half of the educated workforce, but play a disproportionately small role in management. How does this happen? What should we do to make changes? Ripa Rashid, Executive Vice President of the Center for Talent Innovation, discusses women in emerging markets with CKGSB Knowledge, and gives her original observations and answers.
In the past two decades, coffee has been making significant in-roads in China. Although it might not be a staple for workday breakfast yet, for young people in urban areas, it has become a status symbol and something that says about their style and taste. Coffee, says Esteban Liang, Managing Director of Costa, Asia, is an “affordable luxury.” In the interview with Liang, he discusses how coffee became so popular and what Costa Coffee has experienced in the Middle Kingdom so far. Attempting to ride the middle-class wave, Costa aims at becoming a “strong number two” in China with better environment, product and service.
Inspired by the unicorn WeWork in the US, Chinese entrepreneurs have been starting their own co-working spaces. And renting a spot in a co-working space has become a popular option for startups. At the end of 2015, there were over 16,000 of these co-working spaces in China. Are they being formed because of real customer demand or just inflated by a startup bubble? Can they really save cost? What’s their future? How do they differ from US co-working spaces? Read our interview with Mao Daqing, CEO of URwork, the largest co-working space in China in terms of scale, to find the answers.
Imagine when you walk in a shopping mall, a mobile advertisement pops up on your phone, giving you a coupon on exactly what you planned to buy. Or speaking to your friend about an interesting ad you saw on Facebook then discovering, to your surprise, that your friend is also interested in buying that exact product—that’s the beauty of well-designed marketing, thanks to big data. Professor Ghose at Stern Business School analyzes what consumers do with their smartphones and how businesses can tailor effective offers that occur at the optimal time, while also ensuring that information exchange is a healthy two-way street.
Central banking is not enough. While monetary policy did much to recover from the global financial crisis, its instruments have been largely exhausted and rendered ineffective. Low interest rates and quantitative easing may have kept the engine spinning, but are not pillars of sustainable economic policy. In China, there might still be scope for more monetary easing, but Mohamed El-Erian, chief economic advisor at financial services group Allianz and formerly at the helm of investment firm PIMCO, warns that, ‘‘China needs to avoid the trap that the advanced countries have fallen into, namely that of excessive prolonged reliance on central banks.’’