Welcome to China Global Impact, an initiative of Stephen Perry, chairman of the 48 Group Club, and a small group of his close associates.
While many people have varied interests in China, we are focused on those who have to address the real issues that arise from China’s emergence in the global landscape, particularly in business and national and international policy making.
We offer, from many years’ experience of working with China, an attempt to understand and explain China’s policies within the context of its short, medium and long-term plans.
Our perspective is that China, unlike most Western nations, has medium and long-term plans, and reacts to challenges in the context of those plans.
But the big questions today are around the corporate responses to China as a global player, and how Governments – national and other – can respond to the questions raised by China’s presence and future trajectory.
Much time has been spent in the corporate world in addressing China as a market, essentially since 1992/3.
But now China has exploded on to the global landscape, impacting the world in many ways.
The U.S.A. tried to deal with the sudden realisation of China’s large dollar reserves in 2006/7, and having failed to browbeat them, has tried ever since to determine the priority of China in developing their domestic and global policies.
Corporations are only just beginning to move from a focus on joint ventures in China, managed by a junior Board member, or just below, to now asking planners to develop China strategies for the global positioning of China.
The leading professional firms and Banks all provide strategic consulting on China, but they are also grappling with the impact of China on their sectors, as China shows a distinct uniqueness in its going global.
The USA is attempting to counter the China roll by embarking on a Post WTO strategy of EU-NAFTA and TPPA as ways to restore leadership of global markets – but the horse may have bolted.
It is doubtful that circling the wagons – as the telecoms companies have tried, or are trying with Huawei, will lead to a result. Global markets are porous.
So what do global corporations do? Roll over and take the blows? Is this an end game where China will dominate where it chooses?
We think not. The costs are too high and China’s priority is China and its 14 bordering nations.
But the march of China into global competitiveness is not a passing phenomena, nor is it limited to some strategy to build China internally.
The answers to the China challenge are sectoral, and need to be based on a China understanding overall and specifically, that few senior corporate leaders could have, and whose planners and advisers may wish they had.
Our aim is to establish some coherence to understanding China and to answering the particular strategy questions as they emerge.
We hope that our perspectives produce value and insights for our readers that will support better, and more informed decision making – contributing to mutually beneficial outcomes for all.
– Stephen Perry
(image source: http://www.telegraph.co.uk)