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2017
Asia Needs more Dialogue
Solutions to urban pollution may prove complex
Spread of ESGs could herald new global movement
Investing in quality education is imperative if India wants to reap demographic dividends
China needs to lead in new multi-stakeholder world
China’s B&R initiative leading a resurgence of Asia
Education is key - but long-term: Can we survive?
New wave of robots will be beneficial to all
China needs to continue with its ‘heavy lifting’
Time is right for Chinese firms to invest in Europe
Robots to the rescue for China?
Asian Multinationals are Going Global, But to Where?
China ratchets forward with energy efforts
China’s calm necessary for globalization push
Bridging managerial gaps involves trust-building
China well-placed to power its future through green technology advances
China's new 'springtime' is here
2016
China’s moves show it’s banking on the future
Mindset for action at the G20 summit will be determined by Chinese presidency
Chinese head-hunting intensifies for rare managers that can steer overseas firms
US talk of isolation jars with growing links in Europe and Asia
Electoral rhetoric on global trade not in sync with reality
Is it time to be prudent and consider austerity policies again?
What will we do if we have no oil?
Unlock talent by finding the right fit for a person
The benefits are real and tangible
Trade along China’s ‘One Belt, One Road’ won’t succeed without the currency of trust
Reasons for optimism about the long term
2015
Can big oil go green and win?
Poorer Nations Could Sway Climate Talks
Combating Idleness and Deprivation
How China can be a model of food sustainability for the developing world
Kyoto II – Is it a Done Deal?
A meeting of the two largest economic powers
Why China will experience a 'soft' landing
Beware of superstitions
The Elephant and Dragon move ahead
G-7 target on fossil fuels raises many questions
Why Battle for Net Neutrality in the US Matters Globally
China’s resurgence – the ‘normal new’
Wanted: A managerial culture that embraces cultural differences
China's early education plan a smart investment in the future
The New Normal for China and India
2014
China's infrastructure push offers a sure track to better growth
US-China climate pact a good start, but not quite enough
Rethink the human’s place in the ‘digital revolution’
China springs a carbon surprise
Infrastructure - the invisible hand in full view
Dialogue vital for survival of Iraqi nation
China must nurture a new generation of beautiful minds
Great expectations in China and India
GM Cereals – The Pros and Corns
Time to be Honest about Our Energy Prospects
Weathering the Storm of Climate Change
Making a Big Decision? Beware of Your Biases
West Deserves Better Logistics Infrastructure
Digital Currencies do Represent the Future
From 'Printed' Houses to Wooden Skyscrapers
It’s time to bail out our schools, not our firms
Solution to India’s housing shortage – print new ones!
And the most promising green technologies of 2014 are ...
Transport infrastructure key to domestic, export growth
Oil stopgaps: Not worth risking
2013
Why the US should grant Edward Snowden amnesty
May we be more optimistic!
China headed for another massive social experiment?
A dialogue that worked
Yes, politicians deserve vacations - because we benefit
NPOs, NGOs invaluable as creators of dialogue
Look closer and ask: Is America reinventing itself?
Boston bombings case underlines need for dialogue
Millennium Development Goals or own goals?
As usual it's about balance - and timing - of course
Chinese strategists make right moves for growth
2012
Preparing for tomorrow
Austerity or growth?
Japan in danger of becoming 'just a place to fly over'
Beware of the business cycle?
An inconvenient truth
Limited offer sale: Buy a country
Where did our money go?
Leading from behind - a year of elections is almost over
Driving towards a green future
Waiting for springtime
Preserve or Perish
Startlingly similar Asia policy for Obama, Romney
Globalisation remains an irresistible trend
Google has the edge in smartphone war
U.S. Braces for China's Rise
Mankind’s General Scourge
The summer holidays are over and nothing has changed!
Put the hidden trillions to work
Making sense of India’s woes and wonders
Storm in a teacup!
Let’s give bad bankers a venue to admit their sins
News is about depth, not puff or velocity
Booming India, but too few toilets
Delayed Court decisions doesn't mean one may continue to play 'Great Game'
We need media to reflect on data and offer public a balanced view
Big polluters can lead in forging common purpose
The weighty issue of choosing a leader
EU-India Relations - Facing similar challenges
Educating with a goal
The Judicial Malaise
We are growing out, but not growing up
EU´s retrenchment enigma
Urbulence in the Eurozone and the effect on SMEs
Skolkovo May Help Russia to Diversify
Make things more effective
Tapping into the Commonwealth connection
Innovative models for public finance
Facebook revolution but Indian style
The feel-good factor
Asian investors - a private equity opportunity
India needs to be taller and stronger
China´s low sales volume...
Nations playing leapfrog
Shafts of sunlight
What webs we weave
As performers go to Davos, the circus steals the show
Can we control the politicians?
 
2011
Europe’s reminiscence
China firms should go for win-win in overseas ventures
Of procrastination...
Making sense of profiteering
Truth about financial mess must be laid bare
Small is also beautiful
China can help Europe with debt crisis
Excising the cancer of global corruption
Education, a critical asset
Arab uprisings set in motion forces of creative destruction
A new era of change
We must ensure better education for all
Beijing wary of bankrolling a lost cause
Asean's re-emergence as a local and global leader
Why India's Role in the Global Economy is Still Work in Progress
Its the leadership, stupid!
Reverse globalisation: The new buzzword
China’s resurgence – the ‘normal new’
sBusiness Times, April 15, 2015
By Pedro Nueno and Frank-Jürgen Richter
 

President Xi Jinping emphasised at the Boao Forum in March that China was changing and its headlong growth was slowing; its older characteristics were weakening, so more structural reforms were needed.

Some might have felt this to be negative, but we think it is a positive view. He focused mainly on the economy and the environment, and on the former noted that the GDP forecast of 7 per cent was in line with the “new normal” – by which he may be suggesting his nation might be becoming “developed” and so would have lower annual growth. After all, across Europe’s real GDP growth is low (in the UK it’s 2.5 per cent) and in the US it’s 2.4 per cent – far below China’s level. Mr Xi’s message is a subtle way of transforming Premier Li Keqiang’s key phrase of “new normal” which subtly would become the “normal new” viewpoint – which we think is so positive but also different from the past. All must learn this and strive for the future.

President Xi’s views will have consequences for the rest of the world and for the shaping of global trade, if not local economies and how they are made up. Previously strong consumer nations of China’s exports would have to re-establish their own manufacturing capability, lifting their total factor productivity by investing in new capital stock. In China we now find an increasing movement from state-owned to the private sectors, from real estate to production; and these firms are opening up interior cities to new ventures, thus spreading new wealth. One of us recently met about 10 high-level CEOs of very large Chinese companies in different sectors. In general, they projected China in a positive way.

Through its strong powers, the Chinese government has changed the nation vastly over the years. In determining to be the global manufacturing and assembly centre, it increased its need for energy. It undertook huge imports of oil, gas and oil as well as built vast hydro-electricity projects. It also built many fossil-fuelled power stations as well as nuclear ones.

This stimulation across all industrial sectors made it the globe’s greatest polluter – which it has offset by becoming the world’s largest producer of renewable energy through solar and wind energy, with the EU and the US following in turn. Premier Li stressed stronger pollution controls in his speech but we think this must also be pursued in parallel with strong adherence to international standards.

China already mandates that new motor vehicles built in the country as well as imported vehicles conform to the Euro 5 standard (and soon Euro 6, in a few years’ time). It is investing huge sums in new techniques of cleaning exhaust gases from large enterprises, and in creating energy from coal in ways that are cleaner than simply burning in power stations.

Such efforts will help China meet its forthcoming commitments to mitigate climate change.

While China surfs the waves of globalisation, we feel it understands the need to integrate historical Asian authoritarianism with its contemporary need to embrace global capitalism. This is seen clearly in its wish to move to a greater degree of entrepreneurship and private ownership – albeit at a centrally controlled rate. The government applauds middle-class purchasing power and its stimulation of the supply side of the economy as this will stimulate its entrepreneurial spirit and increase employment throughout China.

OUTBOUND FDI
Financial experts often look at the inward foreign direct investment (FDI) of a nation to assess its well-being. In China’s case, this is rising well, reflecting a long-term relaxation of regulations, and it looks set to enable more FDI. But investment is two-way: inward and outward.

China’s outbound FDI has surged from its low base, according to the OECD. Much initially was promoted by state firms as they looked for new providers of fuels or minerals. Latterly, private Chinese investors have entered the scene to invest in greenfield sites or more usually to create a joint venture (used loosely here, not as a legal term) with an existing foreign national firm. This new wave of investments in New York sees Fosun buying Chase Manhattan Plaza; Greenland bought Atlantic Yard; Zhang Xin bought the General Motors Building; and Alibaba is considering opening a new outlet in the US.

In the automotive sector, Geely bought Volvo in Sweden in 2010 and UK’s The London Black Taxi in 2013, and is now setting up an R&D centre creating 1,000newjobs to develop a new hybrid low-emissions taxi, while Dongfeng invested in Peugeot-Citroen. Up to 2013, Chinese firms had invested in 98 European firms, targeting the UK, France, Germany and Portugal (so far). Generally, Chinese investments have been in ailing firms, thereby boosting local national output from the firms and helping associated up and downstream businesses become more secure, maintaining supply chains and supporting local labour. Now, Chinese firms are bidding directly for new business, such as a new nuclear power station in the UK and high speed rail systems worldwide. China has confidence now.

We must remember that China has a long history of rebirth followed by social agitation. For instance, commercial development in the early 20th century was followed by the 1911 Revolution when the new Republic of China was assailed by demands for restructuring which may presage “echoes” of future stress prevailing today. Yet the world is now a globalised place; Chinese manufacturing and the country’s many entrepreneurs and innovators have benefited from globalisation, and “the butterfly in China does indeed rock the boats on distant waters”.

 

Mr Nueno is president of CEIBS and professor at IESE Business School. Mr Richter is founder and chairman of Horasis, a global visions community.


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