China played a surprisingly prominent role in debates surrounding the UK’s 2016 referendum on leaving the EU. For leading “Leavers”, Brexit was a chance for Britain to free itself from a stifling Brussels bureaucracy and build stronger trade relations with upcoming powers like China. But those expecting a blossoming in China-UK relations after Brexit might be disappointed, says Leslie Young, Professor of Economics at CKGSB. Professor Young, who received a doctorate in mathematics from Oxford University in 1971, at the age of 20, and who is now a recognized authority in international economics, explains how Chinese business is likely to be affected by Brexit.
More domestic brands appearing on store shelves may indicate that the golden days for foreign brands are slipping away. “Made in China” was once considered a sign of cheapness and low-quality, but the belief now has changed. Chinese consumers now think that Chinese brands are equal to, or even exceed, foreign brands. As buyer confidence grows and domestic quality improves, what can multinational brands do to regain ascendancy?
Few in the expat business community can rival Patrick Horgan’s depth and range of experience in the Chinese market. Since first coming to China as a volunteer in 1989, Horgan’s career has spanned business, diplomacy and cultural relations. Since 2011, he has been Regional Director of Northeast Asia for Rolls-Royce. As he tells CKGSB Knowledge, he believes China’s development ambitions make this an exciting time to be at the British manufacturing giant. China now has about 2,800 aircraft while in the US the number is 7,000 and there is a massive opportunity for international air framers and engine providers.
Central and Eastern Europe faces a tough balancing act as it looks toward China for investment and growth. Launched first in 2012, the “16+1” Cooperation Framework includes 16 countries in Central, Eastern, and Southeastern Europe. As a key part of the Chinese transcontinental economic and geopolitical vision, the heavily invested “16+1” becomes a perfect solution to some Central and Eastern Europe countries facing economic crisis. This closer tie with China, however, has made EU rattled. How to balance the relationship with EU and China becomes a head-scratching problem for many.
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?
Ioana Kraft began her career in international law, and moved to China 14 years ago. Since 2009, she has been the General Manager of the European Union Chamber of Commerce’s Shanghai chapter, working tirelessly to promote the interests of European businesses operating in eastern China. In this interview, she discusses the challenges and opportunities European businesses face in China.
China has been involved in Africa for decades, with total investments reaching $3.5 trillion by the end of 2015, nearly seven times the 2007 amount. Over 10,000 Chinese firms are operating there, handling 12% of Africa’s industrial production. Now, in addition to the traditional large construction projects, Chinese firms are also getting involved in retail markets like smartphone and home appliances. As China’s momentum in Africa has picked up, so too has the need to expand beyond economic involvement. A key event happened in July 2017, when China dispatched military personnel to set up its first overseas base in Djibouti, the small but strategically-placed country on the Gulf of Aden.
Many developing nations see China as a champion and as an investor. Western countries wish to see China shoulder a greater share of the burden of global leadership, and a growing number of Chinese citizens want China to reclaim its ancient role of international dominance. But is China ready to “lead the world?” Has it reached the stage where it can set the international tone, take the central role on global issues and provide preeminent guidance toward the future? To many the answer might be “yes”, but as the foundations of the powerhouse economy are actually weaker than they seem, that assessment may be premature.
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.
The fourth industrial revolution (4IR) is “a fusion of technologies” that blurs the lines “between the physical, digital, and biological spheres,” according to Klaus Schwab, the founder of the Davos Forum. This fusion of so many fields will ultimately see 4IR change the world far more fundamentally than the first three industrial revolutions. Any analysis of the many technological breakthroughs that now define this new 4IR business world is incomplete at best if it misses the China factor. At the dawn of the 4IR era, China is much better positioned than in the past to seize the opportunities offered by an industrial transformation.