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

CKGSB Knowledge - China Business and Economy March 2014

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

1 min.
how much do you really know about doing business with china? why are you blushing?

What are the global implications of China’s rise? How do Chinese companies compete, and what does this mean for your industry? And how should you modify your strategies to take account of competition within and outside of China? These are probably the most pressing issues of the day for senior businessmen and women. Which is why many of them from industries around the world are turning to us: CKGSB, Cheung Kong Graduate School of Business. Our alumni include over 2,500 Chairmen and CEOs, running companies that comprise 20% of China’s most valuable brands, generate $1trillion in revenue and account for 12.7% of China’s GDP. And our world class faculty represent many of the best minds from the leading U.S. and European business schools. Now CEOs and senior executives around the world can gain…

3 min.
a piggy bank revolution

ICBC, the largest bank by market value in the world, officially stands for Industrial and Commercial Bank of China. Its customers in China however call it Ai Cun Bu Cun, meaning, we do not care whether you put your money with us or not. As the banking sector is tightly controlled by the government and run by only a few state-owned banks, customers in China have to live by their terms. Sometimes the interest earned on deposits is lower than the inflation. The internet has been a disruptive factor for many industries in the world, it may also shake the foundations of these large banks that have been complacent for decades. New Economy businesses challenge the old ones. Can it happen in China’s banking industry? Apparently yes. And here’s why. Over the…

3 min.
china briefs

China’s New Year resolutions are underway, including but not limited to: embracing private investment in government oil, giving gambling junkets the boot, awakening its agriculture to the modern world and allowing tech companies to take a wrecking ball to traditional banks. Macao Doubles Down Casinos in Macao will entice rich gamblers from China directly, cutting out the junket operators that act as middlemen, Bloomberg reported in February. Junkets have long recruited mainland gamblers and given them interest-free loans to blow on gaming in Macao. Now companies such as Sheldon Adelson’s Sands China Ltd. offer the same services, launching a turf war in the world’s biggest gambling market. All Aboard the Bank Train! Beijing may give the green light for high-tech companies to set up the country’s first private banks in early March, according to…

1 min.
china’s crushing debt

Nearly everyone agrees that China has a serious debt problem, some would even call it a crisis, one which the State Council addressed in a highly anticipated report released last summer. The National Audit office said local government debt, including contingent liabilities and guarantees, had risen by nearly 70% to RMB 17.9 trillion as of June 2013. The report also said that shadow banks accounted for at least 13% of all local government borrowing. To put things in perspective, Shanghai-based Tiger Economics market research firm ranked the top 10 most indebted provincial capitals. Below is a snapshot of those cities, the size of their debt problem, and what investments got them in the hole. Source: CnAgri Database, Wanfang Database, China Customs data, China Ministry of Agricutlure, Xinhua News…

10 min.
down on the farm

Wang Liang is a farmer in the northeast province of Heilongjiang, China’s top corn producer. Despite fertile soil, Wang says the small size of his plot limits his crop yield and income. Both took a hit last year when unseasonably cool spring weather delayed planting by two weeks. “It’s not that my situation is bad, I just don’t earn very much money,” Wang says. “It’s the same for all of us here.” Farmers like Wang are straining to feed China’s 1.3 billion people and the country’s export markets on just 7% of the world’s arable land. Urbanization further threatens capacity, as Beijing aims to move 100 million people from rural to urban areas by 2020. To meet expected food consumption needs that year, China must boost grain output by 10% over current…

11 min.
smog warriors

Wang Bin browses a selection of facemasks at a supermarket in central Beijing. After scanning several different styles, he picks out an intimidating, thick mask made by 3M, an American conglomerate. He’s buying the mask as a replacement, he says, after he lost his last one. Wang and his grandmother have experienced coughing fits of late, likely due to the smog. Such immediate and tangible impacts of air pollution have caused a psychological shift in the minds of many in China. “The big change is that air purifiers have gone from being a luxury item for ‘health-conscious’ people to a mainstream purchase,” says Chris Buckley, owner of Torana Clean Air Center, a Beijing-based company that sells face masks, air purifiers, and other similar items. And mainstream purchasing means big mainstream profits. Nationwide sales…