EXPLOREMY LIBRARY
Business & Finance
CKGSB Knowledge - China Business and Economy

CKGSB Knowledge - China Business and Economy June 2013

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.

Country:
United States
Language:
English
Publisher:
Cheung Kong Graduate School of Business
Frequency:
Quarterly
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4 Issues

in this issue

4 min.
no more free lunches?

I have been working out of CKGSB’s Hong Kong office for the past few weeks now whereas most of my team sits in Beijing. It’s during times like these that I appreciate the value of services like Skype. Thanks to Skype it is possible for me to communicate with my colleagues in Beijing or those in our global offices in London and New York at virtually no cost at all. A lot of us have gotten used to such free services in our everyday lives. The experts call this the ‘freemium’ business model, wherein the basic service is free and amasses a huge user base. The extras, which few users subscribe to, are paid for. Services like Skype, LinkedIn and Dropbox ascribe to the freemium model. The freemium model is not new…

3 min.
china briefs

Internet giants Alibaba and Tencent lock horns after Alibaba teams up with Sina’s Weibo, Hershey’s capitalizes on China’s chocolate cravings, and Warren Buffet advances into China’s condiment market via America’s favorite fry-topper. Proud to buy American American brands are still all the rage in China, according to USA Today’ list of top brands in China. General Motors is at the very top, followed by Apple and Nike. Starbucks, Microsoft Windows, KFC, Gillette, Coca-Cola and Intel followed respectively. While US brands do well in China, the US-China Business Council says nearly 100 sectors have tight restrictions that prevent foreign companies from competing fairly with their domestic counterparts. Baidu ups the Stakes Though expected by avid tech geeks, Baidu confirmed in May its purchase of online video service PPS for $370 million, TechCrunch reported. Baidu will…

3 min.
what’s in a brand?

1 China Mobile BRAND VALUE: $50.6 billion YEAR ON YEAR CHANGE: 6% SOCIAL MEDIA RANK: 1 To expand the brand abroad, subsidiary China Mobile International initiated a major Hong Kong facility as a cloud computing center, a submarine cable landing and other functions. China Mobile also partnered With US-based Clearwire, to develop 4G roaming between China and the US. 2 ICBC BRAND VALUE: $40.4 billion YEAR ON YEAR CHANGE: -8% SOCIAL MEDIA RANK: 19 ICRC’s overseas activities driven partly by a desire to become a global financial institution not dependent exclusively on the Chinese market. Especially in the investment banking business, ICBC emphasizes its Chinese roots to differentiate from recent failures associated with Western financial institutions. 3 China Construction Bank BRAND VALUE: $24.0 billion YEAR ON YEAR CHANGE: 9% SOCIAL MEDIA RANK: 4 One of China's largest banks, China Construction Bank traditionally has differentiated…

13 min.
mobile encounters of the 4th kind

There is never a dull moment for Chinese smartphone users. More than 330 million users have access to the greatest volume of free internet content on the planet. Whether thumbing through news, watching a soccer match or simply buying clothes or groceries, Chinese are burning mobile internet data as fast as their third-generation (3G) connections allow. But that connection often isn’t quite fast enough. “I can’t always stream video with my service. I use Wifi connections for that,” says Yang Liwei, an unemployed 28-year-old from Harbin, Heilongjiang Province, who uses China Mobile’s 3G plan. “Of course, I want to go faster.” But Yang isn’t completely willing to double the price of his service plan, which runs about RMB 80 per month, and he doesn’t want to buy a more expensive phone either.…

10 min.
no love lost

CCTV, China’s powerful state-run television broadcaster, unleashed a torrent of faulty vehicle claims against foreign automakers in March. First, the network targeted Volkswagen, alleging transmission issues with some of its cars, which led to the recall of more than 380,000 vehicles at an estimated cost of $618 million. The broadcaster then attacked BMW and Daimler, who were accused of selling cars that produced harmful fumes. The media’s indictment of foreign carmakers dovetails with China’s policy to nurture indigenous players. From removing financial incentives for foreign carmakers to requiring they launch Chinese brands, Beijing has tried to curtail the seemingly endless popularity of nonlocal autos as domestic brands continue to cede ground to their foreign counterparts. Foreign auto manufacturers first set foot in the Chinese market 30 years ago, fully aware that…

6 min.
smeared!

In China, the benevolent cartoon of Master Kong—pudgy, cheerful, topped with a white chef’s toque—is the face of instant noodles, the ubiquitous logo that grins out from supermarket shelves. The brand has the largest market share in China’s instant noodle business, with flavors to tempt taste buds from Shanghai to Kashgar, as well as assorted other beverages and snacks. Tubs of dry, uncooked Master Kong noodles, sold for roughly 4 yuan, are a staple in Chinese dormitories and train stations. There’s even a Master Kong noodle-making museum in Tianjin, where the company was founded by brothers from Taiwan in 1992. Understandably Chinese consumers were taken aback when accusations appeared on microblogs late last year claiming that the Hong Kong-listed maker of Master Kong, Tingyi (Cayman Islands) Holding Corp., was actually a…