Transition and Opportunity: Strategies from Business Leaders on Making the Most of China's Future (China and Globalization)

This book is open access under a CC BY-NC-ND 4.0 license. Multinational corporations (MNCs) have long played a crucial role in the Chinese economy. This role is one that is set to continue in the post-pandemic era as China works to transit to a high-quality growth model that is more sustainable and innovation-driven. With global experience and front-line involvement in some of the most pressing economic, technological, and environmental issues of our day, leading figures in MNCs and chambers of commerce are well placed to share insights that could potentially contribute to policymaking and development strategies so that everyone can “make the most” of China’s future. This collection of essay aims to share these invaluable insights with a wider audience, offering balanced and diverse perspectives from companies and advocacy groups working on a range of issues related to China’s domestic development, international economic cooperation, and China-US competition. These insights are useful not only for the wider business community, but also for academics, policymakers, students, and anyone trying to deepen their understanding of this exciting period of “transition and opportunity,” and make the most of China’s bright future. Transition and Opportunity Preface Acknowledgments Contents About the Editors List of Figures List of Tables The Big Picture The Significance of International Business 1 The Fundamental Importance of International Business Relations 2 Understanding of Cultural Environment is Key to Success 2.1 Economic Environment 2.2 Political Environment 2.3 Competitive Environment 2.4 Cultural Environment A Roadmap to Bolstering EU-China Relations 1 No Major Economic Decoupling Yet, But a Growing Political Story 1.1 Several Months of Increasing Tensions 1.2 The Politicization of Business 2 China’s Economic Rise Follows Historical Norms 3 In China for China, and the World 4 China’s Market Access Lags Behind Its Market Potential 4.1 Procurement Blues 5 Rhetorically? Things Couldn’t Be Better 6 Policy Miscalculations 6.1 Sustainable Development Requires Sound Institutions 7 EU Must Prioritize Existing Multilateral Platforms 7.1 EU Poised to Further Protect Against Market Distortions 8 European Business as a Transition Catalyst Candor, Wisdom, and Persistence: The Keys to Stabilizing the All-Important Economic Relationship Between China and the US 1 Issues in the US-China Trade Relationship 2 Assessing the Phase One Trade Agreement 3 Impact of National Security Concerns on the Bilateral Economic Relationship 4 Lessons Learned from the Phase One Trade Negotiations 5 Achieving a New Equilibrium in US-China Economic Relations The Impact of Decoupling on US Employment 1 Trade Policy and US Employment 2 Ten Policy Prescriptions to Maximize US Employment 3 Conclusion Threading the Needle: The United States and Silicon Valley Business in a Changing China 1 Navigating an Uncertain Policy Environment 2 Changing Approaches from Trump to Biden 3 Executive Views of China’s Business Environment 4 Looking Forward Growing UK-China Trade within the Multilateral Frameworks of the Asia–Pacific Region 1 Introduction 2 Considering the UK’s Strategic Partnership with China Post-Brexit 3 The Opportunities the RCEP, CPTPP and the ASEAN FTZ Present for UK-China Trade Ties 4 Governing Free Trade 5 Conclusion Continued Clear and Practical Reform Policies Will Create a Positive Environment for French Companies in China 1 China—Increased Flexibility and Market Openness 2 A Comprehensive Strategy Moving Forward 3 The Impact of COVID-19 4 Continued Development and Growth Across Sectors 5 Pride in Our Achievements and Looking Forward China’s Growing Presence in Brazil and Latin America 1 Chinese Investments in Latin America and the Caribbean 1.1 Sector Analysis of Chinese Investments in Latin America and the Caribbean 2 Chinese Investments in Brazil 3 Brazilian Investment in China 3.1 Where Brazilian Firms Are Located in China 4 The Evolution of Chinese Investments Abroad 4.1 The Pandemic and Changes in the Direction of Investment Flows 5 Conclusion Analysis and Advice Key Opportunities for China to Lead Globalization 3.0 1 Introduction to Globalization 3.0 2 Reshaping of Global Supply Chain 3 Sustainable Development and Climate Change 4 Data Asset Ecosystem 5 Conclusion Five Reasons for Confidence in China’s Economic Future 1 The “Dual Circulation” Strategy: Opening More to the Outside World 2 Domestic Demand-Driven Growth: Focusing Reforms on Both Supply and Demand Sides Create a Healthy and Dynamic Balance 3 Digital Technologies: Boosting Productivity and Innovation Across the Board 4 Carbon Neutrality and the Circular Economy: Becoming a More Responsible Environmental Steward 5 Entrepreneurship and Innovation: Driving High-Quality Development Transition and Opportunity: Investing in and Benefiting from China’s New Development Paradigm 1 Market Size 2 Innovation 3 Role of Foreign Investment 4 Supportive Policies 5 Access to Markets Beyond China 6 Opportunities for Foreign Companies 6.1 Belt and Road Initiative 6.2 Digital China 6.3 Green, Low Carbon Economy 6.4 Development of Regional Economies 6.5 Inclusiveness and Public Services 6.6 Financial Services 7 Keys to Success 8 Concluding Remarks Continued Acceleration of the Reform of China’s Capital Markets Still Needed 1 Equities 1.1 QFII/RQFII 1.2 Stock Connect 2 Fixed Income 3 Foreign Exchange 4 Regulation 5 Operating in China 5.1 Simplification of the Complicated Regulatory Structure 5.2 Cross-border Sharing of Information, Cybersecurity, and Operation of Global Practices 5.3 Level Playing Field 6 Investing in China 6.1 Alignment of Access Channels China, Deglobalization, and the Multinational: What Does the Next Decade Hold for Multinational Companies from the East and West? 1 Can Multinationals Still Win in China? 2 Can Chinese Multinationals Gain Ground? Can Chinese Giants Become Multinational Companies? 1 With Political, Technological, and Regulatory Uncertainties, Traditional Management in Chinese MNCs won’t Work on the Current Global Platform 2 Despite All These Uncertainties, Chinese Companies Are Strongly Motivated to Globalize 3 Chinese Companies Are in the Fortune 500, but Only a Few Are Seen as MNCs 4 What is the Chinese Way of Becoming Multinational? 5 Hurdles to Overcome and Solutions On the Ground Airbus—A Solid, Reliable and Trustworthy Long-Term Partner for China 1 Airbus China’s Past and Present 2 The Chinese Market is a Huge Indispensable Strategic Market 3 Globalization is Our Philosophy 4 Competition is an Important Guarantee for the Healthy Development of the Aviation Industry 5 Airbus’s Vision for China is Long Term, Diversified and Strategic 6 Broad Prospects for Future Cooperation Between Airbus and China The Remarkable Rise of Premium Automobiles in China 1 China—The Engine of the Global Car Industry 2 Making China Our Second Home 3 Our Mindset: Grow in China, with China 4 Creating a Deep Understanding of Chinese Requirements 5 Paving the Way to the Future of Mobility 6 Shifting Gears Towards a Carbon–neutral Future Being Chinese in China to Ensure a Win–Win Solution: Michelin’s Goals for Development in China 1 Green China: Sustainability in All Areas 2 Innovation-Driven Win–Win Cooperation 3 Expanding Domestic Demand, Upgrading Experience A Look at the Digital Economy in Terms of Talent Using the LinkedIn Economic Graph 1 Digital Talent, a Unique Perspective on the Global Digital Economy 2 Millstones and Key Findings of Economic Graph Projects in China 2.1 Phase One (2017–2018)—“Digital Talent” First Defined Under the LinkedIn Economic Graph 3 The Understanding Migration Report 3.1 Phase Two (2018–2019)—Regional Research on China’s Digital Economy and Talent Development 3.2 Phase Three (2019–2020)—Deep Dive in Industry Concentrations of Global Digital Talent 4 Observations and Policy Suggestions on Digital Talent 4.1 Distribution of Digital Talent is Unbalanced in China 4.2 Digital Talent Cultivation in the Post-Pandemic Era 4.3 Skill is Becoming a New Currency in the Labor Market 4.4 Gender Gaps in Digital Transformation 5 Afterword Why Are Adaptive Learning Organizations Better Placed to Succeed in the Future? Insights from Research on Adaptive Learning Organization by NIIT and John Bersin Academy 1 What is the Adaptive Learning Organization Model? 2 What Are the Benefits of Being an Adaptive Learning Organization? 2.1 The Adaptive Learning Organization Model—Dimensions, Practice, and ALO Insights 2.2 The Adaptive Learning Organization Maturity Model 2.3 The Cost of Adaptability 2.4 15 Characteristics of Adaptive Learning Organizations 3 Conclusion Bibliography International Educational Testing Development in a Post-COVID China Context: Five Trends for the Future of Educational Testing 1 Trend One: Growth in International Education Creates More Opportunities for Tests and Learning Products 2 Trend Two: Sino-Foreign University Cooperation is Seeing New Growth Due to the COVID-19 Crisis 3 Trend Three: Remote Testing is Here and Technology is Constantly Innovating 4 Trend Four: Artificial Intelligence (AI) Will Bring New Opportunities and Challenges to Educational Testing 5 Trend Five: Keep Creating New Incremental Businesses DSM Brings Brighter Lives to China, Shaping China’s Future Together 1 Sustainability as a Business Driver 2 Openness and Continuous Innovation Driving China’s Development 3 Collaboration with Stakeholders 3.1 Global CEO Council 3.2 World Economic Forum Annual Meeting of the New Champions 3.3 Sustainability Organizations and Industry Associations 3.4 Working with NGOs to Fulfill Corporate Social Responsibility 3.5 Fight Against COVID-19 4 A New Chapter: Healthy Planet, Healthy People Opportunities and Challenges in the Health and Nutrition Industry with the Rise of Younger Consumers 1 Youth Demographics—An Important Driving Force of China’s Health and Nutrition Industry 2 Meeting the Needs of Young People 3 Supporting the Sustainable Development of the Nutrition Industry 4 Quality is at the Heart of Everything We Do 5 Working Together for a Healthier China Index