CKGSB Knowledge - China Business and Economy Spring 2019

CKGSB Knowledge is an English language business publication focused on China. It features original articles on business and economy in China, the evolution of “Made in China”, policy issues, the rise of Chinese companies, the emergence of Chinese multinationals, and foreign multinationals’ strategy and operations in China. It also features interviews with influential thought leaders and CEOs, both Chinese and global, on trending topics. CKGSB Knowledge provides a unique vantage point from which to discover the latest general and China-specific business trends. It also provides a matrix to understand how emerging markets are transforming the global business landscape.

United States
Cheung Kong Graduate School of Business
€ 1,86(Incl. btw)
€ 5,22(Incl. btw)
4 Edities

in deze editie

3 min
a balancing act

With a slowing economy and mounting debts, as well as Belt and Road Initiative renegotiations and a brewing trade war to contend with, China has in recent months been engaged in a balancing act of great delicacy. It has also become evident that China is now integrated into the global economy so much that any tremors here are felt all over the world. In this issue of CKGSB Knowledge, we analyze several of the challenges that China is facing, led with our cover story looking at the prospects for the country to move to another level of prosperity. China has grown at an unprecedented rate over the past few decades, but with the country’s economic growth now slowing down, “Aiming for the Top” (page 27) explores the possibility of China getting…

9 min
stretched to breaking point

Late last year, China’s Vice Commerce Minister Wang Shouwen, criticized the World Trade Organization (WTO), saying its very existence is threatened by serious issues. The US President Donald Trump agreed with him, albeit for different reasons. “If they don’t shape up,” he threatened, “I would withdraw from the WTO.” The WTO is nothing less than the world’s primary trading system, comprised of 164 member-economies scattered across five continents. It is obviously in the interests of the world that it works effectively. Struggling to accommodate so much diversity, the WTO has in recent years been facing an escalating standoff mainly between its three most powerful members: China, the European Union and the United States. “Some countries are in reality just hoping to uphold their monopoly status and restrict other member states’ development,” said Wang…

11 min
china’s tax dilemma

China’s economy seems to be slowing faster than the government would like, and US trade war tariffs are just one of the issues weighing down overall growth and threatening hopes for a choreographed and gradual deceleration. The last time this happened in 2008, Beijing responded with massive stimulus spending, thereby creating a debt mountain. This time, what should the economic planners do? At the annual National People’s Congress in March, Premier Li Keqiang downgraded China’s 2019 gross domestic product (GDP) growth target to between 6.0 and 6.5%, warning of a “grave and more complicated environment.” At 6.6%, last year’s economic growth rate was already the lowest since 1990. Instead of another strong stimulus to boost growth, this time Beijing is instead turning to “proactive fiscal policies” to encourage private-sector spending, with wide-ranging…

10 min
the secrets of successful digital marketing in china

China’s private consumption is expected to increase from $4.4 trillion to $9.7 trillion by 2030. With older people becoming increasingly familiar with technology and the rise in popularity of the short-video content, having an effective digital marketing strategy for the Chinese market has never been more important. China is already the single largest market for many multinational corporations being one of the world’s largest unified economic spaces. However, with fierce domestic competition, many foreign entrants are left scratching their heads on how to keep up with China’s ever-changing digital sphere. Arnold Ma is a leading specialist in digital marketing, a technology enthusiast and entrepreneur. He has unique insight and experience from creating China marketing strategies for some of the biggest brands in the United Kingdom. In this interview, he walks us through the…

10 min
small is good

China last year recorded its slowest economic growth in 28 years, but for leading e-commerce player Pinduoduo, it was boom times. Business was up 234% for the year thanks to a largely ignored market—China’s vast rural regions and smaller towns and smaller cities, termed “non-first tier cities.” Pinduoduo is an online shopping platform that allows users to participate in group shopping deals, which have become a very hot area in China’s online economy. “More players are looking at lower-tier cities and they’re also trying to mimic what Pinduoduo is currently doing,” said the company’s CEO Huang Zheng. “The greater emphasis given to the lower-tier cities by our peers is also helping awaken the underlying demand for consumption that has been dormant in these cities.” His peers include Alibaba, China’s biggest e-commerce player,…

10 min
the sky’s the limit

Online travel giant Ctrip is one of the great by-your-bootstraps success stories of China’s technology sector. Much like its more famous rival—Jack Ma’s e-commerce juggernaut Alibaba Group—Ctrip has effectively built its market from the ground up. When the Shanghai-based firm was founded in 1999, only 0.7% of China’s population had internet access and vacations remained an unthinkable extravagance for most people. Yet Ctrip has surfed the wave of China’s growth miracle for 20 years, and today remains the country’s dominant online travel player with a 60% market share. Last year, 135 million Chinese tourists made bookings through Ctrip’s platforms. This is all the more impressive considering that the Chinese travel market has attracted a number of formidable players, from US travel industry leader Expedia to domestic tech behemoths Alibaba and Meituan-Dianping. But none of these…