Adventures in the Chinese Economy: 16 Years from the Inside

Inhaltsverzeichnis

1. Frontmatter

2. Chapter 1. “Made in China” No Longer Means Cheap

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   Abstract

   China used to be a country where labor, production, raw materials, and daily life were cheap. Now, however, this is hardly the case anymore. Relentless economic growth and industrialization, combined with a huge amount of urbanization and the One-Child Policy, led to increased production costs, the production of high-quality goods, and a country where nothing is cheap anymore. 

3. Chapter 2. Pragmatic China

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   Abstract

   The saying “In Europe nothing is impossible, but everything is easy; in China everything is possible, but nothing is easy,” sums up how China works. Pragmatism and flexibility are the core of the Chinese DNA. The result is more important than the process, which in turn creates a very dynamic society, business environment, and a feeling that the sky is the limit.

4. Chapter 3. Multifaceted China

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   Abstract

   Because of its size and history, China is an incredibly complicated multi-layered and multi-faceted country. Not only are there huge differences between rich and poor, but also between young and old, north and south or east and west. China remains to a large extent a very intransparent country to deal with, with all its challenges and opportunities.

5. Chapter 4. The Unwritten Contract

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   Abstract

   The complexity of China may seem unfathomable to newcomers. But the Chinese grew up with this complexity—they virtually imbibed ways of handling it with their mothers’ milk. Moreover, China’s complexity is not always obvious and could collapse into instability—a state of affairs called luan, which literally means “messy”—and the result would be chaos! As such Chinese prefer stability and subsequent economic growth, which the government provides. In return, the Chinese citizen accepts the rule of one Party, providing it ensures a good quality of life.

6. Chapter 5. Why Chinese Students Go Abroad

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   Abstract

   During the Cultural Revolution, most schools and universities were closed, denying a whole generation of Chinese people and education. Since 1978, however, China has changed course dramatically, and spared no efforts to reinstate and upgrade the education system. As a result, China now boosts a well-educated work force. At the same time however, the education system focuses a lot on reproduction of knowledge, and little on creative thinking or personal growth. To fill this gap many Chinese students prefer to study abroad, but do return to China after graduation because there are better job prospects for them back home.

7. Chapter 6. One Billion Customers

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   Abstract

   The buying power of Chinese consumer has become a defining parameter of global business. No country nor company can ignore the Chinese market anymore, as the Chinese middle class is a driver of global economic growth. Furthermore, Chinese consumers are very demanding customers and have high expectations in terms of quality and service. To top it off, the relentless competition within China forces companies to introduce new and innovative products and services at blistering speed. 

8. Chapter 7. The Chinese Online Tsunami

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   Abstract

   China is the biggest digital market in the world and will soon have 1 billion internet users. The speed in which China’s digitalization has evolved is unprecedented and changed the country in every aspect imaginable. China is now a cashless society, with the world's most active social media, huge e-commerce players, and every service available online. It makes life in China extremely convenient. At the same time the internet provides Chinese citizens a new window to the world. Then there is of course the government, which utilized the Chinese internet to its own advantage and to the advantage of its domestic companies.

9. Chapter 8. Made in China 2.0 and Beyond

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   Abstract

   Where China used to be associated with “Made in China” low-quality products, innovation and an increasing focus on high-tech are all the rage now. “Designed in China” is increasingly becoming a reality, and Chinese products are now competing on quality and price directly with their foreign competitors. In many sectors, China is taking a leading role in innovation, while in others it still needs to do a lot of catching up. But as a result China is rapidly becoming a tech superpower, and a mass patent developer. IP-laws are becoming more stringent and where foreign companies had a monopoly on innovation, their tech supremacy is now eroding at breathtaking speed. 

10. Chapter 9. Better Unhappy Rich Than Poor

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    Abstract

    In the austere Maoist China of the 1960s, the Communist Party completely controlled economic, political, social, and cultural life. It set the economic cornerstones with the planned economy, determined which citizens were allowed to study at what universities, and ultimately decided how much food was available for each family. Modern China couldn’t be further from those days. In Chinese society, individualism has reached new heights as a whole new modern world has opened up to youngsters and urban citizens. This had obvious many positive effects but in turn also led to a society where norms and values have decayed, and selfish behavior started to rise. In many ways modern Chinese society is much more open than in the past but at the same is looking for a new set of moral standards and norms.  

11. Chapter 10. Qian’an: From Zero to Hero (and Back)

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    Abstract

    In September 2008, I moved to Qian’an in Hebei Province, a Tier IV city 125 miles east of Beijing, to set up a new multi-million dollar investment joint-venture company, which included building and then managing a new cement factory. I lived there for three years and worked there for another two years. The city is characterized by heavy industry, pollution, and everything else that modern China doesn’t want to be associated with anymore. Corruption was rampant. Now however, more than ten years later that city couldn’t be more different. It has cleaned up its act and embarked on a new course. Qian’an is a great example of how hundreds of Chinese smaller cities had to adjust to the new realities in order to survive and thrive further.

12. Chapter 11. China Goes Global

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    Abstract

    China is now an international force to be reckoned with. Its companies have global ambitions and regionally China will increasingly assert its influence. It launched far-reaching initiatives and projects like the One Belt One Road initiative and the RCEP which is the biggest trading bloc in the world. At the same time China is reshaping international institutions, while Chinese technology is also spreading its wings all over the globe. The Chinese yuan from its side is poised to have a bigger international influence also. China is here to stay and is building a network of allies and friends alike. That of course antagonizes the United States as the sole global superpower.

13. Chapter 12. The Great Decoupling and a New Cold War

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    Abstract

    As China is rising on the international stage, the United States as the sole global superpower feels the heat. The Presidency of Trump and the COVID-19 pandemic have accelerated this trend to such an extent that the two nations are seemingly decoupling on every level. Ideologically and politically the two countries are each others opposite, and a new Cold War looks inevitable. But decoupling looks easier than it really is, so much interwoven is China, the United States, and Europe. Whatever the outcome may be, the world will change drastically and the effects of all this will be felt by all of us. 

14. Backmatter