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“To be in the 21st Century is to be in China”

42 Articles 10 Interviews Red Gate Corner Doing Business in China Who is Who in China Macao Summit, September 2008 Macao, , Taiwan

http://www.chinainsightstoday.com China Insights Today, Volume 1 Issue 1 January-March 2008 hina is not a Golden CXanadu in a bed of roses

An Interview with Andrew Leung Founder and Chairman, Andrew Leung International Consultants Limited, London

“China Insights”: Dear Andrew we are honored you agreed to this interview. Almost everybody to- here can be no single formula for all and day talks about China’s potential. Let me tell you for all times. Instead on imposing a single from the beginning that your articles, keynotes etc formula, she recognizes mutual differ- are our favorites. I love the way you make insights encesT but is not preoccupied by them. Instead she to China Issues. Can you please share with our seeks common grounds for constructive coopera- readers your perception for modern China? In few tion, knowing that such cooperation will eventually words what is China for you? build trust to reduce mutual differences. This may be a better way in approaching modern asymmetric hina as an ancient civilization is now recov- international conflicts. ering her lost potential after a long decline and a great deal of suffering over several hundredC years. She had been the world’s largest But with a population of a fifth economy up to the early fourteen century, not only of mankind, she still ranks below in absolute terms but also in per capita terms. She 100th in terms of per capita GDP, was active in outreaching the outside world in peace amongst some of the poorest and trade during the Tang, Song and Ming dynas- countries in Africa. ties. n a world full of confrontation and aggression, China is preaching peace, tolerance, diversity and cooperation. She realizes that each coun- n aggregate terms China is already the 4th try’sI development path is different because of his- largest economy. But with a population of a tory, culture, resources, geography, demographics, fifth of mankind, she still ranks below 100th and a host of diverse internal and external chal- inI terms of per capita GDP, amongst some of the lenges. Just like your family being different from poorest countries in Africa. Moreover she has only mine. Your Gateway to China Page 42 Your Gateway to China 7% of the world’s arable land and only a third to a balization to help achieve her goal. quarter of the world’s per capita water resources. “China Insights”: Dear Andrew, as Founder and She needs to produce 24 million jobs each year just Chairman, Andrew Leung International Consul- to stay even. She has to maintain a relatively rapid tants Limited, London and with your tremendous growth rate to develop a sound economic founda- expertise in consulting, I would like to ask you some- tion before her aging population profile begins to thing concerning Chinas characteristics. Which are bite in 30 to 40 years time. She has to do all these, the main points that differentiate the business en- yet maintaining the sustainability of her environ- vironment in China. In simple words why is China ment as more and more of the West’s energy-inten- different in doing business in comparison to doing sive manufacturing is moving to China. business in the States or in EU?

o China welcomes international help and First, China is very diverse in its regional develop- cooperation, especially in technology, inno- ment. There is a world of difference between the vation, resources, and in clean and efficient richer coastal regions and poor inner provinces. energies.S She is honing her skills in playing a better Second, China is a single-Party meritocracy. There game in engaging the rest of the world, including is both wide decentralization and centralization, all the West, as a leading Responsible Stakeholder. at once. Third, Chinese culture is markedly differ- “China Insights”: Our readers would love to read ent to Western cultures. In China, a carefully com- in the inaugural issue the article that you let us re- pleted legal contract is not the end-game. Just like produce on “How Technology and Globalization marriage, it is just the beginning of an evolving re- are driving China in the 21st Century (A Keynote Speech given at the AGM of the China-Britain Tech- nology and Trade Association on 11 June, 2006)”. In my humble opinion you give an excellent overview China can no longer afford to of China’ s Potential. Could you please share with continue relying on T-shirts and us some hints on how globalization drives China in DVD players to finance her need the 21st century? for Boeings and Airbuses. here are two major drivers of Globalization in the 21st Century. First, unlike the previ- ous Revolutions in the West, this timeT a large part of the entire world including Chi- lationship. There is much more emphasis on hier- na, India, and to varying degrees South East Asia, archy, status, respect, harmony, and indirect rather Eastern Europe, Latin America and even Africa are than direct communications. Effective engagement all industrializing and urbanizing at the same time. in China requires absorption and effective blending This creates unprecedented pressure on natural re- of both Chinese and Western cultures. sources especially Energy and Water. “China Insights”: Andrew, doing Business in china Second, modern technology including the Internet is for many foreign entrepreneurs a key challenge. and global supply chain management skills, have Do you feel that china is really a paradise for for- made the entire world a much ‘flatter’ environment. eign investments? Value creation migrates across borders much more hina is not a Golden Xanadu in a bed of readily in terms of outsourcing, offshoring and net- roses. In such a diverse, new, rapidly worked operations.Trade and foreign investment changing and relatively unfamiliar market, accounts for a huge proportion of China’s GDP. horrorC stories naturally abound. But no market in But with growing competition, exports of ‘Made in the world can compare with China’s rapid econom- China’ goods have become wafer thin. China can ic development sustained over several decades. She no longer afford to continue relying on T-shirts and is already the second largest economy in the world DVD players to finance her need for Boeings and in Purchasing Power Parity (PPP) terms. She is set Airbuses. In her 11th Five Year Plan, she has vowed to become the world’s second largest trading na- to build a Nation of Innovation driven by techno- tion within a decade. The ‘Chinese Middle Class’ logical upgrading, creativity, and sustainable ener- is growing by leaps and bounds, poised to welcome gies. She needs to maintain the momentum of Glo- much more of the products and services the West http://www.chinainsights.com Page 43 China Insights Today, Volume 1 Issue 1 January-March 2008 may take for granted in their consumer societies. business in China. I take on speaking engage- ments in local and international conferences, seminars and forums. I write feature commen- taries and appear on live TV and other media estern Chambers of Commerce have interviews on any strategic or development is- reported growing and faster profits sue related to China. The list is not exhaustive amongst more of their China inves- and I am open to ideas and suggestions. tors.W Rather than a Paradise, Modern China is a

Paradox and a Promising Frontier. She is none the less fascinating in her demand for patience, “China Insights”: Andrew can you please tell us understanding, finesse, skills and insight on few words for your consulting activities? How you how to leverage her dynamics in the Globaliza- can help an entrepreneur interested in investing in tion of the 21st Century. china? I am sure many of our readers would love to hearing from you. “China Insights”: Dear Andrew, all over the world people are looking for the China challenges. I mean it seriously that in our days the business dream is ame as for Q6 above. I am aided by my da- the CHINA DREAM. Can this dream be also a tabank of over 5,000 of my own personal nightmare? international contacts (including UK and China)S built up over decades. They include vari- t can. For the reckless and ill-prepared, the nightmare can also be horrible. But ous decision-making levels from Managers, Di- as I explained above, China can also be a rectors, VPs up to CEOs and Chairmen, MPs, DreamI Come True, as Walmart, Carrefour, B senior government officials and other business, & Q, Volkswagen, Toyota, Proctor and Gamble scientific, academic, professional and commu- and a host of other foreign investors, big and nity leaders. They include entrepreneurs, fund small, are beginning to realize. Some projects hit a rock. Others reap handsome profits. This is the name of the game in the world’s most dynamic, most rapidly changing, and liveliest Rather than a Paradise, Modern market economy. China is a Paradox and a Promis- ing Frontier. “China Insights”: Andrew can you please tell us few words for your consulting activities? How you can help an entrepreneur interested in investing in owners and operatives, consultants, service pro- china? I am sure many of our readers would love to viders and experts. hearing from you.

he range includes international bank- help companies develop better strategies ing, insurance, risk assessment, legal to leverage the China market. I assist insti- services, accounting, architecture, en- tutional investors to better understand Chi- ergy,T environment, materials, resources, bio- na’sI changing dynamics, to minimize risks and tech, healthcare, science, technology, property increase opportunities. I help venture capital, development, intellectual property, logistics, private equity, and hedge funds to identify and media, human resources, think-tanks, aca- realize M & A and other investment opportuni- demia, hospitality, culture, arts, and charities. ties. I help with negotiations, IPOs and Road- They provide a vital source for value-creation or shows. Where appropriate, I sit on Boards as partnerships for various China-related projects Non-executive Director or Advisor. I accompa- or ventures. ny business or familiarization trips to as China Advisor. I take on Visiting Professorships for Business Schools’ MBA programs. I give talks “China Insights”: Andrew you are serving as and training to executives on Cross-culture Chairman, China Group, Institute of Directors Management and understanding how to do City Branch, London, United Kingdom as well as Your Gateway to China Page 44 Your Gateway to China Chairman, China Group, Royal Society of Arts, crisis in Chinese Stock market. London Region, United Kingdom. I am sure many hose perplexed by the recent roller-coast- of our readers would love to hearing from you con- ers in China’s stock market may be inter- cerning these activities. ested in my recent articles ‘Irrational Exu- he City of London represents the very heart berance,T Rational Economics or Irrational Politics’ of London as the world’s leading financial under Publications and ‘The China Black Swans’ centre. It is managed under the aegis of under CHINAwatch on my website www.andrewle- theT City’s Lord Mayor. The Institute of Directors unginternationalconsultants.com (IoD) is a premier business institution and one of t is not always the most influential business organizations in the meaningful to United Kingdom with overseas affiliations. Its City do China pre- Branch China Group, which Idictions. That’s why I chair, organizes China- I referred to China’s related business and Black Swans. And the networking events in- world is full of books cluding those in part- either predicting a nership with other path to eventual col- financial, business, lapse or depicting a and professional range of thought-up organizations. scenarios loaded in Its Member- favour of the author’s ship is open to argued choice. I think both IoD and It is more meaningful non-IoD mem- to delve more deeply bers. Anyone into China’s funda- wishing to join mentals, her under- should email di- lining currents and rect to the Hon- imperatives. Most of orary Secretary these I have tried to MeiSim@LaiPe- capture on my web- ters.org for details. site, which inciden- tally you may wish to he Royal Society of Arts, Manufacture and save on your computer, laptop Commerce, commonly referred to as the or Blackberry as a China resource. Royal Society of Arts (RSA) is a prestigious UKT Society promoting commerce, arts, culture, and ut if I have to predict, then my take is that human understanding, with HM The Queen as Pa- China stands a fair chance of maintaining tron and HRH Prince Philip as President. As a Fel- a relatively high rate of growth at least in low (FRSA) and elected to the Executive Commit- theB next several decades or so, provided the world tee of the London Region branch,I lead its China is not shaken by major tremors such as a world epi- Group, which organizes events to further the aims demic, severe Climate Change, or a Middle East of the RSA. Its events are open to both Fellows and implosion. I say this because unilateral US neo-con- non-Fellows. Information on RSA events can be servatism is likely to lose steam with changing US obtained from www.theRSA.org/events internal politics. There is also a global re-balance towards multilateralism as the EU, Asia, Russia, “China Insights”: If someone asked you to predict the Middle East, Latin America and Africa are ris- the future of China in the international business ing in geopolitical influence. China-Japan relations arena which would be your comment? That in X are on the mend. China is also building up regional years china can be the 1st economic power on plan- cooperation and friendship across the globe. The et? Is there something that make you worry for the Taiwan status quo is likely to be preferred as much future of China Economy, e.g. recently we had the by Washington as by the business-minded Taiwan http://www.chinainsights.com Page 45 China Insights Today, Volume 1 Issue 1 January-March 2008 electorate. It also suits China’s strategy of achiev- foreign investment which brings her much needed ing eventual voluntary unification through increas- innovation, technology and international business ing economic and social integration. Internally, savvy. Many cities and provinces are competing for China’s vigorous policy towards more balanced and such investments by bending backwards to help in- sustainable development is likely to diffuse or con- vestors through one-stop business promotion units, tain the rising pockets of discontent. The continu- special development zones, high tech parks etc. The ing fight against corruption and IPR infringements challenge is to truly understand China’s diverse and are likely to remain high on the political agenda. rapidly changing business environment, establish Civil society and Christianity are on the rise. There reliable and effective local partnerships and net- is a vibrant and expanding private sector together work, and obtain traction by leveraging projects in with a fast growing and generally contented Middle tune with China’s national development strategies. Class. This is opening up a vast consumer market It is no longer difficult to start a busi- embracing more cosmopolitan lifestyles. ness in China. But to be a winner recent proprietary study by Credit Suisse in any business always requires First Boston is telling. Taking into account a contest of entrepreneur- gradual RMB appreciation, the USD size ship. In China it demands ofA China’s economy is likely to grow to 90% of the an insightful strategy as US’ by 2014 with an annual growth twice that of the well as deeper cultural US. The consumer pendulum has begun to swing understanding of her towards China. China thus stands a fair chance of unique national and progressing economically, socially and politically local characteristics. so as to be able to showcase a convincing alterna- “China Insights”: So Andrew, let me put it simply. If I want next The challenge is to truly under- month to establish a stand China’s diverse and rapidly publishing company changing business environment, in China, do you feel establish reliable and effective lo- that bureaucracy is cal partnerships and network worst than European countries or States? Do you have examples from tive development model to the entire world. Indeed, your consulting activities of Goldman Sachs’ latest linear forecast (The Econo- successful launches of new busi- mist, 30 June, 2007) predicts China’s economy not nesses in China? only to catch up with the US by 2027/8 and to ex- his is an important unique China ceed it by 75% by 2050, at the same point as India’s characteristic. While most businesses do economy matches the US. China’s looming chal- not touch on national sensitivities, publish- lenging mountains to climb are her ongoing energy ingT is not one of them. The media is subject to more and resource constraints and the onset of her aging control in China. But translations of Western busi- profile in about 30-40 years time. This is the more ness, self-improvement, and children’s books are reason why China cannot afford and does not want hugely popular in China as are Chinese versions of to be aggressive. She needs peace and Harmony, world-class fashion and lifestyle magazines. I played both at home and internationally, to continue to a part in offering advice to Lenovo in cross-cultural build a better society for her people. management (in the wake of the IBM Computers “China Insights”: Andrew given your expertise on Division acquisition) through a leading US consul- China, can you please tell us few things for the Chi- tancy firm. Recently I helped coordinate an inter- na Business System in General? How easily is for a national strategic consultancy looking at the global foreigner to establish a business in China? risks and opportunities of China’s energy sector ecause of the imperatives I have outlined, as overall Editor-at-Large. I just returned from Ji- China has to be very business proactive lin Province as an invited Guest of the Municipal and business-friendly, especially towards Government of Changchun, where, amongst other B things, I was looking at a project involving agricul- Your Gateway to China Page 46 Your Gateway to China tural mechanization and sustainable energies. preneur interested in investing in China, the typical “China Insights”: A last practical question. How context is “We are looking for a low cost production do you comment the Taxation system in China es- line, and we will apply our advanced, high quality pecially for enterprises? Are there incentives for new know-how”. Is the China business arena that sim- investments in China? In one of our next issues we plistic? will have a special section in taxation of enterprises o. As I said, China cannot afford to sur- in China. vive on low cost alone. In fact she doesn’t. axation is China has become more and Apart from low cost, she is extremely productionN efficient and has successfully honed a more developed and professionalized. But apart from revenue collection, it serves world-class critical mass in a variety of manufactur- Tabove all as a central policy instrument. For ing sectors. Her products are already achieving an example, in line with China’s latest de- extremely competitive quality-to-price ratio. That’s velopment, the taxation between why ‘Made in China’ labels can be found in the foreign and local enterprises world’s leading stores. . has recently been equalized. “China Insights”: Do you feel that the “low cost” The rebates for energy and characteristic of production in China causes some emission-prone exports problems in “branding” of Chinese products? have been removed so as to promote sustain- able development. There are recent China cannot afford to survive increases in stamp on low cost alone. In fact she duty on share trans- doesn’t. actions to curb un- healthy speculations in the stock market, along with removal of s I explained, China cannot live on low cost tax on interest earned alone. But in spite of all her upgrading and to encourage retention often first-class quality, the Low Cost image of bank deposits. There remains.A What is more, the image of her being an is a variety of tax incentives ostensibly ‘Communist’ country (even she appears offered by a multiplicity of more Capitalist than Victorian England) sometimes special high tech parks and de- rubs on her products, along with her perceived velopment zones in various provinces deficits in human rights, freedom of expression, and cities. intellectual property protection, clean governance, “China Insights”: The global community has a transparency, and the rule of law. See my earlier ar- critical gap on knowledge concerning China. Which ticle ‘The Long March for Brands’ dated January you consider as the key themes of the Agenda re- 31, 2006 under CHINAwatch on my website www. lated with doing Business in China? andrewleunginternationalconsultants.com irst, a deeper understanding of China. Sec- “China Insights”: In most of cases investments re- ond, a bespoke business strategy suited to quire a well-defined context. How would you evalu- the chosen investment sector and target. ate Chinese policies, government procedures for Third,F identification of a reliable local partner or helping foreign investments in China? network. Last but not least, how to institutionalize s explained under Q10 to Q12 above, Chi- cross-cultural understanding in the business ven- na’s policies are generally pro-business, ture. This list is by no means exhaustive. Above all, pro-market and pro-foreign investment, implementation is the key, from due diligence, ne- exceptA in areas of national sensitivity, particularly gotiation to scaling up a globally integrated busi- the so-called Three Ts (Tibet, Taiwan, Tiananmen ness. Square). “China Insights”: I would like to ask your help in a “China Insights”: China Mainland, Taiwan, Hong very practical issue. I think that if you ask an entre- Kong, all areas with great differences in terms of http://www.chinainsights.com Page 47 China Insights Today, Volume 1 Issue 1 January-March 2008 cultural and business characteristics. How difficult and wide in China and the rest of the world. is for a businessman to understand the diversity of “China Insights”: Recently I had a conversation china Puzzle? Which is your advice to people inter- with an entrepreneur. In few words he stressed me esting in investments in China? the gap in knowledge about China. Do you believe othing can substitute an open mind, and that international organizations, associations, cen- a proactive attitude to find out and learn. ters are performing well in knowledge dissemina- Above all, avoid stereotype thinking and tion activities? I am aware of many initiatives al- lookingN everything through Western –colored spec- most in every country concerning China-X country tacles. First-timers would find it both enjoyable and cooperation. Which you consider as the pillars of educative to visit the chosen territory, to see and any sustainable cooperation at business, scientific, feel how the society and people behave, and to ex- or other context? perience the local ‘hardware’ and software’, before irst, there is no substitute for regular, open- drawing any conclusions, however tentative. minded, and unbiased exchanges. This “China Insights”: Dear Andrew, you have provid- applies especially to information dissemi- ed consultation to many UK Companies. Can you nation.F China is essentially a rapidly transitional share which us, which is the typical perception of European Executives for China? Are there typical stereotypes and misunderstanding? Can you share The 2008 Olympics stays at the with us few clips from talks with executives? top of China’s national agenda as a timely and God-given opportu- ome of my best UK colleagues have a good nity to showcase Modern China to and balanced understanding of China. Some the entire world. visit China regularly and have successfully developedS good rapport with their Chinese coun- terparts. But there are some who unconsciously harbour stereotypes, biases, prejudices and half- economy and society. By way of parable, it is all too truths, borne of their personal hearsay, background easy for a blind man to focus too much on an un- reading, and individual experiences. Examples are seen elephant’s tusk to think that it represents the ‘The Western model is the only model that will work entire shape of the animal. This lack of balance for China‘ ‘China being Communist will eventually lead to her collapse’, ‘China is not a unified nation but consists of many different China’s’; ‘Guanxi is all paramount and that’s why there is so much win- ing and dining’; ‘The key to a trouble-free partner- ship is a water-tight contract’. While there is always a grain of truth in some of these concepts, they can preclude a more balanced understanding of China and may even threaten China business success as much as total ignorance. “China Insights”: In our inaugural issue we have a special section on Beijing’s 2008 Olympics. Do you believe that these Olympics generate new opportu- nities for China’s Economic Development? he 2008 Olympics stays at the top of China’s national agenda as a timely and God-given opportunity to showcase Modern China to theT entire world. She has also openly committed to making it the first Green Olympics. It will there- fore provide foreign investors or potential investors a golden opportunity to show what they can offer to China, to develop good relations with local part- ners, and to make their own brand-name known far Your Gateway to China Page 48 Your Gateway to China reporting could reinforce stereotypes and prejudic- lead time required to boost creativity, international es. Second, It often pays to be proactive in build- business savvy, and global branding. We are likely ing mutual trust and friendship, by offering con- to see more Chinese M & As with, or outright ac- crete help and cooperation before they are directly quisition of, international brands (e.g. MG Rover) sought (the last resort in Chinese culture). Perhaps and more professional marketing at the top end even more important, it is really up to these coop- (Huawei advertisement in The Economist). This eration organizations to educate their constituen- will also open up opportunities for Western global cies back home and to help them understand and brands to take a stake in upcoming Chinese na- engage China better. tional champions (Danone in Wahaha). However, “China Insights”: Dear Andrew, in 2010. Shanghai as the Danone example shows, the course of true is hosting the World Expo. Can you explain us in partnership seldom runs smooth. My earlier advice few words the significance of this event and also under Q3 above on cross-cultural understanding is the participation of China in WTO? very relevant. hina has already joined the WTO since “China Insights”: Andrew I don’t know if you have 2001. The transitional arrangement for full any expertise on the banking system of China. Do compliance came to an end in December you feel that foreigners can find a friendly banking 2006.C Following the 2008 Olympics, the 2010 Shang- system for supporting them in business initiatives hai Expo will be China’s next golden opportunity to in China Furthermore are you aware of Govern- showcase herself to the entire world. It will likewise ment investment incentives in China for foreign be a golden opportunity for foreign enterprises to Companies? showcase themselves to China and the rest of the here is no lack of tax incentives for foreign world. As with the 2008 Olympics, China is likely businesses as explained under Q10 and to pull all the stops to make this the best Expo ever. Q12 above. As for bank credit facilities for Work has already proceeding at great speed. Poten- foreignT investors, a recent Mckinsey Quarterly arti- tial foreign partners have no time to lose. cle shows that in terms of private corporate debt as a percentage of GDP, China ranks bottom with 1% compared with the top US 145%., Most of corporate lending through China’s banking system remains Understanding China as a coun- dominated by the largest state-owned banks, which try. Understanding her diverse tend to favour State Owned Enterprises. Therefore, business environment. Under- until China completes her banking reform, foreign standing the Chinese business investors generally prefer their own banking and culture. And understanding China credit facilities outside Mainland China. Some of business strategies through the these investors also expect to raise funds through latest case studies. . listing of their China enterprises in Hong Kong, London or New York. “China Insights”: Dear Andrew, many people worldwide are “drunk” with the potential of Chi- nese Economy and in most of times they are look- “China Insights”: Sometimes we focus on the per- ing for short-term profits. Last weeks we had the formance of foreign companies in China. But at the decline in stock index in Chinese Stock Exchange. same time several Chinese companies, like Lenovo, Do you consider Chinese Markets as mature ones? etc, perform excellent at the global competitive are- Are there any hints for people interesting in avoid- na. How do you see the future of Chinese brands in ing bad surprises? the worldwide business landscape? hina’s stock markets are still very much hina’s major national business champi- work-in-progress, pending more robust ons are all gearing up to take to the global corporate governance, transparency, and regulation.C On their roller-coaster behaviour, please stage. This is in line with China’s strategy ofC nurturing more Chinese multinational champi- see my explanation under Q9. The Chinese econ- ons to rank amongst the top Fortune 100s. But so omy, however, is much more stable, supported by far this is still an uphill battle, owing to the long robust export and growing internal consumption, http://www.chinainsights.com Page 49 China Insights Today, Volume 1 Issue 1 January-March 2008 with more sensible government policies geared to tionship and profits can be ‘lost in translation.’ maintain stability. “China Insights”: Dear Andrew, our readers would “China Insights”: Do you consider some domains love to hear for your future plans. Are you planning like Tourism or Energy as of key importance in the new books, events? Will you be in Beijing Olym- agenda of making business in China? pics? would choose Sustainable Development (in- y published articles on China are build- cluding Green Energies), High-tech Manu- ing up into a valuable China resource for facturing (e.g. precision components for car use by entrepreneurs, senior executives, andI aircraft engines), Fund Management, Life Sci- bankers,M analysts, politicians, government officials, ences, Creative Industries, and Tourism. think-tank researchers, academia, and a variety of “China Insights”: You are aware for several pro- other decision makers and observers wanting to grams on China Studies in many universities world- gain a deeper understanding of a rapidly chang- wide. If you would be asked to design a degree on ing China. This resource may be turned into Doing Business in China, which are your main a book, suitably embellished.I hope propositions in terms of courses, objectives, pro- you’re not asking me to attend the gram philosophy? Beijing Olympics as an athlete! Yes, I wish to be able to at- y program philosophy would be flagged tend the Beijing Olympics up by the word ‘Understanding’. Un- as well as the Shanghai derstanding China as a country. Un- Expo, ideally with my derstandingM her diverse business environment. family. Understanding the Chinese business culture. And understanding China business strategies through “China Insights”: the latest case studies. It would feature Cross-cul- Any thoughts you tural Management and modern-day business appli- would care to share cations of Sun Tze’s Art of War. There would be on the publication proactive class participation and interaction, with of China Insights experience sharing as part of the learning process. Magazine? We made Rather than a formal degree course, I have designed a painful effort to de- a modular Elective series which can be adapted to velop a magazine on suit specific needs, ranging from 4 selected lec- China themes target- tures to the full syllabus of 12 lectures spread over ing in various groups. a month or so. And we would like really to thank you from the bottom of “China Insights”: Dear Andrew, in close relevance my heart for your great support. to the previous question. I think that many busi- ness people are interested in executive training on any thanks for your kind China business. I am aware that you provide such words. I am passionate about program in your company. Do you feel that business my mission to help promote a deeper understandingM of China. I look forward to reading leaders need to learn from China Business Case? the China Insight Magazine in full as a final prod- uch of the West’s modern business uct. I would be happy to offer my thoughts about it school theories lose some of their rel- in due course. evance in a transitional fast-moving marketM economy with Chinese characteristics. It “China Insights”: Dear Andrew thank you for your is vital to have the support of actual business case time. It was an excellent talk. Would you like to give studies on Chinese or Foreign-invested enterprises parting thoughts to our readers? operating in China.Additionally, the recent Danone ne out of every five persons on the plan- -Wahaha saga highlights the importance of cross- et is Chinese. Not long ago, few people cultural management. This is of increasing appli- in the West cared very much about the cation as more and more expatriate executives are InscrutableO Chinese. Now part and parcel of 21st working in China with their Chinese counterparts Century globalization, China is everywhere, every inside and outside their own enterprises. Many a day. This is the title of my early article dated June time, not only communication but long-term rela- 1, 2005 under CHINAwatch on my website www. Your Gateway to China Page 50 Your Gateway to China andrewleunginternationalconsultants.com Yet, ndrew is an international and independent China there are still many people around the world think- specialist. He is Founder and Chairman of Andrew ing that China is too far away and mysterious for ALeung International Consultants Limited. He has them to understand. Only recently I came across written and spoken extensively on strategic China issues at local an article in a leading UK broadsheet. There is this and international forums on numerous occasions. Many of his small UK trade association for importers of prefab- articles can be found on his website www.andrrewleunginterna- ricated wooden planks. Its office is somewhere in tionalconsultants.com . Andrew chairs the China Interest Group the backwaters. Its telephone seldom rings. But of the Institute of Directors’ City Branch. He has been elected to one day, it seemed that the whole of the UK media the Executive Committee of the Royal Society of Arts, London was after them. Region and chairs its China Group. He is an invited Member of the Asymmetric Threats Contingency Alliance (ATCA), an influential global think-tank. He is a Senior Consultant with he telephone almost went MEC International with special interest in energy businesses in- dead with overheating. The volving China. He sits on the Executive Committee of the 48 big story was that virtually all Group Club with historical links with the Chinese leadership. Tthe wooden planks had gone to He sits on the Governing Council of King’s College London and China. The association did not the Advisory Board of the China Policy Institute at Nottingham have to care too much about University. He is a Visiting Professor at the graduate schools of China. Now they know. management at NIMBAS University in the Netherlands as well Indeed, the word ‘In- as Sun Yat-sen University and Lingnan University in China. scrutable’ denotes de- Andrew has amassed a great deal of China-related knowledge spair in understand- and experience with a career of some 40 years in a variety of ing. I am afraid that senior government positions. His last was Hong Kong’s chief rep- such despair will in- resentative for the United Kingdom as well as all the new EU creasingly translate Member States, Russia, Switzerland and Norway. During a into business dis- mid-career sabbatical, Andrew helped set up Standard Chartered ruptions (as in the Asia Ltd, a merchant banking subsidiary in Hong Kong. He story above), loss of was twice sponsored by the U.S. Government for month-long visits business opportuni- to the US, including a visit to brief multi-national Chairmen ties or profits. It may and CEOs on China post-Tiananmen Square. He was invited to even threaten the very brief the Duke of York and the Lord Mayor prior to their respec- survival of the business tive China visits. He was sponsored by the Economist as a speaker itself. at a China conference in Berlin with the German Foreign Affairs Institute. Andrew was included in UK’s Who’s Who since 2002. n the other hand, un- He was awarded the (SBS) in the July 2005 derstanding China Hong Kong Honours List. Andrew has graduate qualifications and her culture is ex- from the University of London, postgraduate qualifications from citing. It’s fun. ItO is full of promise. It is poised Cambridge University and the Harvard Business School, and So- to widen your personal horizon. And also your ho- licitors’ qualifying examination certificates from the Law Society, rizon for profits. London. He speaks and Mandarin, writes Chinese calligraphy, and paints classical Chinese paintings.

Now part and parcel of 21st Century globalization, China is everywhere, every day.

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