A New Welcome Mat: The Changing Dynamics of Foreign Investment in China

Published in knowledge@wharton on 26.05.2010
“Growth in China has surpassed all expectations,” said Martin Winterkorn, CEO of Volkswagen, in late April as the German car company — Europe’s largest — announced plans to invest US$2 billion over the next two years in China, which includes building two additional plants and rolling-out or updating automobile models in the country.

Volkswagen certainly is not alone in its enthusiasm. Strong GDP growth and the allure of growing domestic consumption make China attractive for a range of foreign investors.

It always pays to be persistant

Published in China Daily 2010-04-14

When my friend and I set off for a relaxing walk along the Great Wall, we thought it would be an easy day free from pollution and profit seekers. But I should have known that wherever you go, the money-makers will be there to get you.

Ben and I boarded a bus to Miyun, from where we planned to take a second bus to Jinshanling, the starting point for a walk along the Wall to the tourist spot, Simatai.

At Miyun we tumbled out onto the side of a huge, busy road. Immediately a gaggle of taxi drivers were upon us. “Simatai, Simatai?” they crowed. We wanted to get a bus, so we pushed our way through the group.

We didn’t know where the bus stop was, so we went into a nearby hairdressing salon to ask. Just at that moment a wild-looking taxi driver burst through the door. When we explained that we wanted to get a bus to Jinshanling, the hairdressers and the taxi driver shook their heads. “No bus today,” they said.

We were suspicious,

Is China Still Competitive for Global Manufacturers?

Published in knowledge@wharton on 14.04.2010
 Having served the world as a manufacturing base for decades, is China still competitive for manufacturers? A number of factors indicate that its competitive lead will be chipped away, not least if the renminbi is allowed to appreciate against the U.S. dollar and costs rise. Some experts predict that low-value-added exporters may be driven elsewhere while manufacturers of high-value-added, complex products for domestic consumption will face even stiffer competition to thrive. Against this backdrop, as a new survey suggests, manufacturers in China are learning quickly about staying competitive in this ever-shifting landscape.

It certainly doesn’t help matters much that there’s uncertainty and tensions brewing on a number of fronts. Among the foreign IT industry, for example, the ugly exchange between Google and China, and a new rule that stipulates sellers of high-tech goods must contain Chinese intellectual property as part of an “indigenous innovation” campaign, have rattled nerves.

Yet despite all this, experts say there’s much that’s working in China’s favor. Costs are still low and the skills level is high. Meanwhile, the pent-up demand of a potentially huge domestic market combined with improving IT, infrastructure and regulatory regimes all put China well ahead of other low-cost countries.

Left exhausted by hospital’s super efficiency

Published in China Daily 2010-03-25 09:45
Beijing veers from smooth efficiency one minute to sheer chaos the next. Each time I do something new, there’s an added element of unpredictability, as I don’t know whether things will be organized with military precision or whether no one will have a clue what’s going on.

Take getting around the city. Look at a map of Beijing and you see an organized grid-style road network. But then when you undertake an excursion, chaos ensues. Crossing a road is like running a gauntlet. Bikes, cars, minivans, and even the odd horse and cart compete for space. People yell at each other and cars constantly beep their horns. 

China’s Property Bubble: Can It Be Deflated Safely, or Will It Burst?

Published in knowledge@wharton 17.03.2012
 The collapse in the property values in the United States and many European countries, which helped lead to so much financial and economic damage, could be repeated in China, according to professors from Wharton and the Guanghua School of Management at Peking University.

In a joint symposium held at the Peking University campus in Bejing on March 10 and organized by both schools, finance professor Xinzhong Xu of Guanghua assessed property values in China and concluded that China may well be inflating a real estate bubble. Wharton real estate professor Susan M. Wachter also said she saw the warning signs of a bubble, but suggested that China may be taking steps to prevent a major disruption.

Move on, what’s a bit of staring once in a while

Published in China Daily 2010-02-25

Babies toddling around in split pants, small dogs dressed in colorful coats with matching booties, and elderly people walking backwards at the crack of dawn are all sights that make a curious foreigner like me stop and stare.

But, of course, there has to be a bit of give and take, and I myself, with short peroxide blonde hair, blue eyes, and a tendency to wander around less popular parts of Beijing “exploring”, receive my fair share of gawking from locals.

Sometimes such attention can be flattering. On Christmas day, I went to Chongwenmen church. Nestled in Hougou hutong, this uniquely shaped building is a gem. The church was crammed with people who had braved the freezing night to worship and celebrate.

Upon spotting a lonesome foreigner,

Make it smooth and easy for a nice China ride

Published in China Daily 2010-02-04 10:34

Ever since I discovered that a sea cucumber was definitely not a vegetable, I pledged to do away with my preconceptions about anything in China even if I thought it was something with which I was already familiar.

Foolishly, I forgot this as I sat on the coach this weekend, bound for Lianhuashan ski resort north of Beijing. I indulged myself with memories of long days in the Alps, maneuvering over moguls, gliding over glaciers and skiing down endless different runs.

The day’s program showed we were to hit the slopes at 11 am, stop for a Chinese banquet at 12:30 and then be off the mountain by 4 in order to hand our kit in by 4:30.

A banquet? In the midst of a day out skiing? My friend and I balked. Lunch on European slopes was a quick sandwich grabbed between trying to cover all the routes.