The China wave

12. September 2014

Date: 11-09-2014
Source: The Economist: Schumpeter

Chinese management ideas are beginning to get the attention they deserve

MANAGEMENT thinkers have paid surprisingly little attention to how Chinese firms are run. They routinely ascribe those firms’ rapid growth in recent years to their copious supply of cheap labour, or to generous financial backing from the state, rather than inventiveness. They have much more time for India, particularly its knack for frugal innovation, with all those colourful stories of banks putting cash machines on bikes and taking them into the countryside, and companies building water purifiers out of coconut husks.

However, it seems unlikely that China’s companies have come as far as they have just by applying lots of labour and capital. It is also hard to imagine that the huge expansion of China’s education system and its technology industries is not producing fresh management thinking. Western companies knew little about Japan’s system of lean production until its carmakers gobbled up their markets. The danger is that the same will happen with Chinese management ideas.

There are, however, signs that these are now getting the attention they deserve. The MIT Sloan Management Review devotes much of its current issue to examining innovation and management lessons from China. Peter Williamson and Eden Yin of Cambridge University’s Judge Business School contribute a fascinating essay on “Accelerated Innovation: the New Challenge from China”. The latest issue of the Harvard Business Review has a piece on “A Chinese Approach to Management” by Thomas Hout of the Monterey Institute of International Studies and David Michael of the Boston Consulting Group. Read the rest of this entry »


China’s Top 10 Business Stories in 2011

3. January 2012
Author: Patrick Chovanec · January 2nd, 2012 · RGE EconoMonitor

As the year comes to a close, and we look forward to 2012, I continue the tradition I started last year and offer a brief look at the top stories that shaped China’s business and economic climate in 2011:

1. High-Speed Rail. It was the best of times, it was the worst of times — China’s ambitious high-speed rail program embodied the highest highs and the lowest lows the country experienced this year. In January, President Obama cited the planned 20,000km network in his annual State of the Union address as a prime example of how America need to catch up to the Chinese. As if to prove his point, June saw the grand opening of the much-heralded Beijing-Shanghai line, timed to coincide with the Communist Party’s 90th anniversary celebrations. But even before then, there were signs of trouble on the horizon, starting in February when the powerful head of China’s railway ministry — the project’s godfather — was abruptly fired as part of a massive corruption scandal. Then a crash on a line near Wenzhou, in which at least 35 people were killed, unleashed a wave of fury on the Chinese internet, forcing the government to re-think the entire project amid charges of cover-up and sloppy construction. By November, with high-speed trains running at chronically low capacity and construction debts piling up, the railway ministry was asking Beijing for a rumored RMB 800 billion (US$ 126 billion) bailout just to pay the money it owed suppliers.

2. Inflation. Few issues preoccupied the average Chinese citizen — or Chinese policymakers — this year as much as rapidly rising prices. Read the rest of this entry »


The Chinese Solar Machine

21. December 2011

Date: 21-12-2011
Source: Technology Review

Chinese manufacturers have ­dominated the international ­market for conventional solar ­panels by building bigger ­factories faster. Now they will need to ­innovate to maintain their lead.

Ten years ago, solar panels were made mostly in the United States, Germany, and Japan. Chinese manufacturers made almost none. But by 2006, the Chinese company Suntech Power had the capacity to make over a million silicon-based solar panels a year and was already the world’s third-largest producer. Today Chinese manufacturers make about 50 million solar panels a year—over half the world’s supply in 2010—and include four of the world’s top five solar-panel manufacturers. What makes this particularly impressive is that the industry elsewhere has been doubling in size every two years, and Chinese manufacturers have done even better, doubling their production roughly every year. Read the rest of this entry »


Power in Numbers: China Aims for High-Tech Primacy

6. December 2011

 

Date: 06-12-2011
Source: The New York Times

BEIJING — In an otherwise nondescript conference room, Wu Jianping stands before a giant wall of frosted glass. He toggles a switch and the glass becomes transparent, looking down on an imposing network operations center full of large computer displays. They show maps of China and the world, pinpointing China’s IPv6 links, the next generation of the Internet.

China already has almost twice the number of Internet users as in the United States, and Dr. Wu, a computer scientist and director of the Chinese Educational and Research Network, points out that his nation is moving more quickly than any other in the world to deploy the new protocol.

IPv6 — Internet Protocol version 6 — offers advanced security and privacy options, but more important, many more I.P. addresses, whose supply on the present Internet (IPv4) is almost exhausted.

“China must move to IPv6,” Dr. Wu said. “In the U.S., some people don’t believe it’s urgent, but we believe it’s urgent.”

If the future of the Internet is already in China, is the future of computing there as well? Read the rest of this entry »


Where are the world’s most innovative companies and what do they do?

17. November 2011

Date: 16-11-2011
Source: The Economist
Subject: Where innovation lies

Where are the world’s most innovative companies and what do they do?

Companies that make semiconductors and other electronic components are collectively the most innovative industry, according to an analysis of patents carried out by Thomson Reuters, an information-services provider. Its “Top 100 Global Innovators” report rates companies by the proportion of their patent applications that are granted; the number of “quadrilateral” patents (those granted in China, Europe, Japan and America); how often patents are cited by other companies; and whether patents relate to new techniques or inventions or are refinements of existing ones. This approach is intended to overcome the limitations of using the number of patents filed or granted as a measure of innovation. Of the 100 companies in the list, which is not ranked and relates to patent activity from 2005-2010, 40 are from America, 27 from Japan and 11 from France. No Chinese companies qualified. The report says this “underscores the fact that although China is leading the world in patent volume, quantity does not equate to influence and quality.”


Too Many Hamburgers?

22. September 2010

  Date: 22-09-2010
 Source: THOMAS L. FRIEDMAN
To visit China today as an American is to compare and to be compared. And from the very opening session of this year’s World Economic Forum here in Tianjin, our Chinese hosts did not hesitate to do some comparing. China’s CCTV aired a skit showing four children — one wearing the Chinese flag, another the American, another the Indian, and another the Brazilian — getting ready to run a race. Before they take off, the American child, “Anthony,” boasts that he will win “because I always win,” and he jumps out to a big lead. But soon Anthony doubles over with cramps. “Now is our chance to overtake him for the first time!” shouts the Chinese child. “What’s wrong with Anthony?” asks another. “He is overweight and flabby,” says another child. “He ate too many hamburgers.”

That is how they see us. Read the rest of this entry »