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WU Jinglian “My Life Is Closely Connected with China’S Reform”

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WU Jinglian “My Life Is Closely Connected with China’S Reform” EDUCATING CHINA FOR THE WORLD, AND THE WORLD FOR CHINA T he LINK TheLINKCEIBS Alumni Magazine 2006 Summer 2006 S ummer WU Jinglian “My Life is Closely Connected with China’s Reform” To JV or Not To JV: How MNCs Choose Local Partners? Engaging Leadership: An Interview with Corporate Strategist-Henry Mintzberg Listen, Speak and Think: How Do We Do Marketing in B&Q? CEIBSKnowledge www.ceibs.edu/knowledge �������������������� �������������������������������������������� ������������������������������������������� �������������������������������������� ������������� �������������������������� � ������������������ � � �������������������������������������� ������������������������������������������������������������������������������������������������������ ������������������������������������������������������������������������������������������� ������������������� ����������� ��������������������������������������� ��������������������������������������������������������������������������� ������������������������������������������� ��������������������� �������������������������������������� ������������������������������������������������������������������������������������� ���������������������������������������� ����������������������������������������������������������������������� ������������� �������������������������������������������������������� ��������������������������������������������������������������������������� ������������������������������������������� ��������������������������������������������������������������������� ������������������������������������� ����������������������������������������������� ���������������������������������������������������������������������� ����������������������������������������������������������������������������������������������������� ��������� �������� �������� �������������� ���������������� ����������������� ���������������� ���������������� ����������������� MESSAGE FROM THE EDITOR “If there’s one economist in China always worth listening to, it’s Wu Jinglian.” This is a statement in an article about China’s economy in Wall Street Journal on December 22, 2003. Wu earns him a nickname of “Market Wu” for his role in promoting the market economy in China in the 1980s and 1990s. Today, “Market Wu” becomes “Good Market Wu”. He realises that a market economy is not sufficient for China; on many important occasions, Wu argues for the rule of law to create a “good market economy” and the transformation of government functions to realise the change of economic growth pattern. The “Cover Story” of this issue will go inside Wu, revealing what shapes his per- sonality, perceptions, and thoughts, and how he grows from a naughty boy to the most prominent economist in China. Indeed, “Market Wu” is not alone in the debate for a good market economy; with and behind him are a number of scholars with the same vision, conscience, and sense of social responsibility, includ- ing the renowned economist Xu Xiaonian and law expert Jiang Ping. At the recent “China Policy Initiatives Forum” co-sponsored by CEIBS in Beijing, they echoed Wu’s concerns over China’s eco- nomic growth pattern, stressing that China must continue its reform and opening-up and improve its legal environment to build a real socialist market system, where the change of government functions is the key to success. Quoted in this issue are their speeches at the forum. For multinationals, China remains one of the most appealing areas for foreign investment in the world; however, a study shows that over 50% of multinationals are not financially successful in the first five years in the Chinese market. There seems to be a correlation between the financial perform- ance and the entry strategy chosen by the multinationals. To JV or not to JV, this is a question for any multinational planning to enter the Chinese market. Juan Fernandez and Laurie Underwood’s inter- view with over 20 CEOs of multinationals will provide us innovative ideas and hands-on experiences on the entry strategy and successful operation in China. The same important is human resource management: companies are increasingly aware that, in a competitive environment, human resource is the only source of sustainable advantage. In this issue, we will introduce the DDI hiring model and HR practices of the Ritz-Carlton Hotel which have helped them excel in the competition. In “Case Study”, we invite three experts from the industry to explore the challenges facing an IT company in its overseas expansion initiative. The case is more than about project management: it talks about globalisation, or more specially, how Chinese companies can go global successfully. From this issue we will also add a new column – “Thought Leadership” – to create a platform of open dialogue with the world’s most renowned business thinkers. Our first guest Henry Mintzberg, who is known for provocative and controversial thinking on leadership and MBA education, will examine what it takes to be an effective manager and why an MBA is not necessarily part of that equation. While most of the articles in this issue are serious in nature, some are amusing and insightful. “No Need to ‘Understand’ Music” and “The Campus Life of Some Entrepreneurs” offer us new perspec- tives and feelings side by side with great fun and amusement. Dr. Snow Zhou Managing Editor TheLINK 2006 Summer 3 zxcvdvsd TheLINK CONTENTS 2006 Summer PUBLISHER: CEIBS PEOPLE MANAGEMENT COMMITTEE Professor Pedro Nueno, Executive President Professor Zhu Xiaoming, President Professor Rolf D. Cremer, Dean and Vice President Professor Zhang Weijiong, Vice President and Co-Dean MANAGING EDITOR: Snow Zhou SENIOR EDITORS: Cherry Zhong, Audrey Wu CONTRIBUTING EDITOR: Du Qian ART EDITOR/ PHOTOGRAPHER: Lin Yun “My Life PART-TIME EDITORS: Suzanne Updike, Sandy Chow is CONTACT US: EDITORIAL OFFICE: 699 Hongfeng Road, Closely Pudong, Shanghai 201206, P.R.C. Connected with TEL: 86-21-2890 5501 FAX: 86-21-2890 5273 China’s EMAIL: [email protected] Reform” WU Jinglian 08 CEIBS SHANGHAI CAMPUS 699 Hongfeng Road, Pudong, Shanghai 201206, P.R.C. 15 Tel: +86-21-28905890 Fax: +86-21-28905678 Website: www.ceibs.edu CREMER’S COLUMN BEIJING REPRESENTATIVE OFFICE 7 “How will the teachers behave 3/F Raycom InfoTech Park Tower A, when they become students?” 2 Kexueyuan South Road, Zhongguancun, Beijing 100080, P.R.C. CEIBS KNOWLEDGE Tel: +86-10-82861688 Fax: +86-10-82861678 16 Setting People Up for Success: E-mail: [email protected] How the Portman Ritz-Carlton Hotel Gets the Best from Its People? SHENZHEN REPRESENTATIVE OFFICE 21 To JV or Not To JV: How MNCs Room.2303B, 23/F, Han Tang Building, Choose Local Partners? Overseas Chinese Town, Shenzhen,518053, P.R.C. Tel: +86-755-26935750 25 ECONOMIC & FINANCIAL DATA Fax: +86-755-26935743 E-mail: [email protected] IN FOCUS Published quarterly in the last week of March, June, 26 The 11th Five-Year Programme September and December, by CEIBS. The author’s views expressed in this publication do not necessarily reflect the and the Change of Growth Pattern views of our editors or of CEIBS. 29 Broaden and Deepen the Financial Copyright 2006 © by CEIBS. All rights reserved. 19 Reform 4 TheLINK 2006 Summer zxcvdvsd CEIBS FOUNDATION - CORPORATE SPONSOR PARTNERS Together with our Partners, the goal of the CEIBS Foundation is to ensure continuous investment in the school for short and long-term growth: • To attract world-class faculty • To innovate world-class research • To provide an inspiring environment • To ensure continuous improvement • To attract the best students 08 AD Spanish Government For Further Information on CEIBS Corporate Sponsorship Projects and Programmes, please contact: Ms.5 Seanie TComerford,heLINK Development 2006 Summer Director: Tel: +86-21-2890-5120/ Email: [email protected]/ Fax: +86-21-2890-5126 32 The Construction of China’s Legal 62 News Briefing System in Prospect CEIBS FOUNDATION THOUGHT LEADERSHIP 64 Interview with Mr. Frank 36 Engaging Leadership: An Interview Christiaens, MD, with Corporate Strategist-Henry Barco China Mintzberg 66 Atlas Copco (China) Investment Co.,Ltd. joins CEIBS Corporate VOICE FROM ENTREPRENEURS Sponsor Network 40 Listen, Speak and Think: How Do 40 66 LVMH Asia Scholarship Laureates We Do Marketing in B&Q? Announced 67 Carrefour China partners with EXECUTIVE FORUM CEIBS for the Development of Future Talent 45 Better Hires, Less Waste: How HR Can Make a Million Dollar Difference? ON CAMPUS 68 CEIBS EMBA Welcomes New CASE STUDY Classes of Shanghai and Shenzhen 48 The Dilemma of a Project Manager 70 An Ever-lasting Memory: the 51 No Giving Up, No Gain Journal on CEIBS EMBA’s Entry Residency Module 53 Yida’s Difficulty: Problems Beyond Project Management 72 MBA Activities 55 Before Going Global 45 74 A Pool of Elite with a View Beyond BUSINESS PRACTICE LIFE STYLE 58 Effective Performance 75 No Need to “Understand” Music: Management On Music Appreciation SCHOOL UPDATES ALUMNI ACTIVITY 60 New Appointment 78 The Campus Life of Some 61 Spring 2006 CEO Forum: Entrepreneurs Reinvigorating Talent Management in China 80 The Alumni Photo Album WORDS AND THOUGHTS 82 A World with Chinese Characters 85 A Glimpse at EFMD NEW BOOKS 58 88 Intellige ut credas 56 89 CEIBS Recommendation 6 TheLINK 2006 Summer CREMER’S COLUMN “How will the teachers behave when they become students?” For the past two to three decades, ever fast increasing numbers. Last since Deng Xiaoping committed China to year, 31 million Chinese tourists the “gaige, kaifeng” (reform and opening travelled the world,
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