Who stole the show at AMCHAM & EUCCC event?

On 14 January the European Chamber and American Chamber organized a New Year Celebration at the Kempinski.
A pretty large audience who was there to listen to Joerg Wuttke, Jim Zimmerman and a panel hosted by Andy Brown (Wall Street Journal). I felt standing around to listen to the panel discussion was not ideal, people pay less attention. Nothing earth-shaking to report from that panel anyway.


Personally I was more than happy to meet in person our “idol” Big Daddy Dough – aka as Andrew Dougherty who performed on stage the video clip “Beijing State of Mind”. I wrote about the clip earlier:
The best promotion video of Beijing: http://www.beijing1980.com/?p=169
I actually use the clip in most of my seminars until the students are ready for my presentation: it surely draws the attention and some asked me for the clip…
So, you know who stole the show!

Anniversary event of InterChina in Beijing

On 23 November in the Capital Club Beijing I attended the seminar of InterChina about their  China 2015 Annual Business Forecast, also for the 20th anniversary of the company.
Opening address and Forecast presentation were done by our Belgian friend Jan Borgonjon, President, InterChina, along with Eduardo Morcillo, Managing Partner.
Participated to the Panel Discussion:

  • Mark Duval, President, AmCham BeijingZ
  • Su Bahong, Director Corporate Affairs & JV Relations, Volkswagen Group China
  • Bernie Stefan, Vice President Strategy & Business Development, Greater China, Nestle


Jan Borgonjon is one of the Founding Partners and President of InterChina since 1994. He has been the Director of the China Europe Management Institute (CEMI, Beijing), and later became one of the founders of the China Europe International Business School (CEIBS) in Shanghai, of which he is now a board member. From 2002 to 2006, he was a member of the executive committee of the European Union Chamber of Commerce in China. InterChina has offices in Beijing and Shanghai and a staff of over 55.
Jan can be called one of the pillars of the Belgian business community in Beijing
As for the seminar, a very well done analysis. I might not fully agree with all details but overall the research was carefully done and talking with relevant insiders.
I might have a less positive view on the attitude of the Chinese government towards foreign companies and foreigners in general. It is true MNC have to look ahead and the “golden times” are over: Chinese companies have progressed a lot. However the anti-foreign sentiment is too obvious to be ignored.
It was mentioned that Chinese companies going abroad have still a lot to learn and many Chinese companies are less flexible to switch strategies when markets and the environment change – as it the case today. Interestingly some commented that foreigner buyers get more hesitant about Chinese quality, even if products come from foreign-invested companies. I can’t but agree on all that.
It was also said that looking at companies that succeed or not, it is all very dependent on a case by case basis. In the same sector one can see companies going down while others do very well. And true that many head offices have no clue about China, I can confirm that. Now the same applies for Chinese going abroad. They are facing what we face for three decades.

China survey: Work Rather than Pleasure

This interesting survey was published by Internations. For the original article:
http://www.internations.org/expat-insider/2014/china
Every survey has a different angle and one can always criticize the results. It also very much depends on how the survey is carried out and who were the typical contributors. Here they are mostly young to middle-level professionals who have a rather steady job and are “legal” (see the graphics for the details). Anyway the results are interesting while it all finally depends on the individual way of living, taste and goals. For quite a number of expats, life overall is rather good in Beijing while costs of housing and schooling are a serious concern, along the heavy pollution and more stringent visa rules. See here the results:
China is a great place to work, but can it feel like home? Results suggest that it is neither easy to settle in nor great for expat families.
An economic hub, people go to China for business and work, as well as to benefit from the country’s comparatively low cost of living. However, although China ranks 4th in Personal Finance and 19th of 61 in the Working Abroad Index, it faces sharp criticism in regards to the general quality of life.
Only 14% of expats in China are completely satisfied with their life abroad, which lags behind the global average of 21%. Moreover, survey participants also indicate a marked dissatisfaction with the country’s medical facilities; only 32% agree the system is good compared to the global average of 53%.
Expat Statistics China infographic

 
Small Cost in Big China
The low living costs in China makes it a beacon of value in an expensive world. While only one in three (35%) expats the world over find their local cost of living to be either good or very good, China excels with nearly half of the respondents living there agreeing to the same (48%).
The comparatively low cost of living is complemented by a greater disposable income, as 59% of expats in China agree that their income easily covers everyday expenditures, in contrast to the worldwide average of 45%.
Companies seem to be trying their best to attract expats to China, too. Four of five respondents (83%) say they received help from their employer with attaining a work visa and two in five (42%) say they were provided housing by their companies. This overshadows the global averages of 65% and 29% respectively. It also helps explain why the most frequently cited reason for expatriation to China is work; 18% say they were sent by an employer and 17% found work there themselves.
Finding Ying and Yang
China plummets down the overall country index when one takes the Ease of Settling In into account, however, where it ranks 52nd out of 61. Famed for the affability of its people, the survey results highlight how expats experience a chasm between politeness and formulating friendships. Although three-quarters of respondents (76%) agree that they work with very few expats, they are less likely to have friends who are local residents. Rather, 45% say they usually meet people at expat events, whereas this figure is just 36% worldwide
However, this could ultimately be due to the culture gap between expats and the local culture. Although 43% of participants profess to the ability of being able to speak Mandarin, just one in five (23%) agree that it is easy to get used to the local culture compared to the global average of two in five (41%). As such, only one in ten (12%) expats in China feel completely at home.
Homeschooling Anyone?
Further dragging China down is its poor display on the Family Life Index, where it comes just 4th from the bottom (30th out of 34). However, this is mainly due to its education system, for the country remains on par with the global averages for most aspects of childcare and general family life.
Expats in China are, with 16%, half as likely to agree that education choices were numerous and readily available compared to the worldwide average of 32%. Thus, respondents in China are more likely to send their children to an international school than their compatriots elsewhere (45% against the global 35%) and as a result find education to be very expensive.
However, according to the survey results, one of the grimmest aspects of life in China is the atmosphere it presents for children. One fourth of participants (25%) are not happy in regard to their children’s health and safety there. On a global scale, only 11% feel this way.

2014: China at the crossroads: the latest Newsletter

I have started a regular newsletter, in principle monthly, focusing on China’s economy, environment, business and any topic that merits a closer look.
The first edition looked into the Chinese real estate market, to give an overall view on what real estate companies, news media and economists are talking about. Certainly a hot topic, as hot as the Beijing weather. If you did not receive it, see here:
https://blog.strategy4china.com/?p=5561
Snapshot China – Newsletter No. 2 looks into the many challenges China is facing in 2014 and how the government under the leadership of President Xi Jinping is expected to cope with it all.
Working with China since late 1980 I have lived through many ups and downs. There were times we thought the future looked bleak, the least to say. Three decades later, the country has witnessed a unique progress, transforming a grim Stalinist-looking country into a world power.
Today the country is at the crossroads facing the most serious challenges since its opening up in the late seventies. Its leaders confirm our worries by admitting the situation is indeed critical.
It is easy to be a pessimist today.
My intent is to give a quick overview on the complexities when trying to understand China’s challenges. For some foreign observers, “China should do this or that and all will be well.”
If it were that simple.
Overall, I admit to be worried but I still remain more on the side of the optimists.
You can download the complete report here: China2014.pdf
Prof. Gilbert Van Kerckhove
Author of “Toxic Capitalism”
http://prodygia.com/experts/gilbert-vankerckhove/profile
Twitter: @bjprc

Interview Bloomberg News (TV) in my office

Another Bloomberg interview today 5 August, same place (our meeting room), same lady – Christine Hah, just another cameraman as my friend Dieter left for Belgium.

This time, a near two hour discussion, I can say mostly covering the newsletters I am currently working on: the e-vehicle market in China, the challenges China is facing in 2014 plus “restauration” of the Gulou area. And about the complicated USA-China relations.