Transcript Document 7176294

China and the World
China and the World Economy – and
Personal Experiences working in
China
“Realities and People”
The Library House Ltd – 20.06.2008
Professor Alan Barrell
Slide 1
Agenda
• Some facts about Globalisation and the
shifts in World Economic Power
• Reflections on key issues affecting
business and connections with China
• Personal experiences – including War
Stories
• Can I explode a few Myths ? I will try !
• But first….a few PICTURES ……..
Slide 2
A Good Place to Start - The Changing
Horizon
Organisations
Environment
Issues
Technology
The death of
deference
Globalisation
New employment
patterns
Slide 10
Slide 11
The Changing Face of Globalisation –
Opportunity or Threat ?
• Two fifths of the Worlds people
live in the two fastest growing
large economies – China and
India – FACT
• Education, Wealth Creation
and New Knowledge are at the
heart of Economic Planning in
Asia
• Growth in Asia is far ahead of
Europe
• The desire to LEAD is strong
in Asia
• CASH is in place in the Asian
economies – as well as
brainpower
• The Will to work together is
strong
Slide 13
The Competitive Threat
“Today’s Peacock is tomorrow’s feather duster” –
Think about it……..
Slide 14
Sources of Competitiveness – Could
they be sources of “Co-opetition”?
Information
Learning
Risk
Creativity
Reputation
Speed
Values
Cost
Slide 15
Some Economic Indicators – How are key
Countries doing?
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GDP % Change
Ind. Prod. %
Trade Balance
US $ Bn
Foreign Reserves
US $ Bn
China
+ 9.5
+ 8.9
+60
1.65 Trillion
And growing!
India
+ 8.6
+ 8.0
- 25
130
Britain
+ 2.9
+ 0.1
- 49
Euro Area
+ 2.1
+ 1.0
+ 86
USA
+ 3.9
+ 3.5
- 679
Economists can be wrong ……..
Resource and Environmental Factors and Challenges
Some unprecedented trends are being seen….
The Euro Area as a Block plus USA remain Economic Powerhouses
Slide 16
India/China Vs The G6
Slide 17
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Slide 19
Source: The Economist 2005
Slide 20
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Slide 24
Just a little bit of reflective History….
Back to when it was REALLY thought the
World was flat – and beyond….
Exploring, inventing and changing the
World….
And when the Economic balance of Power
was different….
Slide 25
The subject of the first of the 2008 Reith Lectures on
BBC Radio….
Slide 28
Confucius on Wealth
“Virtue is the root; Wealth is the
consequence”
Confucius, 500 BC
Slide 29
The Book of History
Slide 30
“允执厥中”
“To Impartially
Adhere to the
Middle Way”
Slide 31
Emperor Shun
Emperor Yu
The Phenomenon of Ancient China – Creativity and
Inventiveness – some of the Inventions – just to remind us all
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The first lamps
Magnetic Compass
The Camera
Gunpowder
Paper for writing
Printing
Iron and Steel Smelting
Copper and Bronze ware
Oil Drilling and Production
Coal Mining
Pottery and Porcelain
Wine making and tea and tea culture
Early Astronomy
Sericulture – gave us Silk
Seismography
Traditional Medicine and Anaesthetics
Acupunture
Vaccination against Smallpox
The Hot Air Balloon
The Soushi Calendar
Decimal and Binary Mathematics
Slide 32
Developing a discussion - IMAGINATION, CREATIVITY
MINDSET ENTERPRISE and ENTREPRENEURSHIP –
KNOWLEDGE AND LEARNING
Slide 33
Getting closer to the future – and looking at
Entrepreneurship
“You look at things
and ask - why?
but I dream of
things that never
were and ask why not?”
George Bernard Shaw
Slide 34
Exploring Creativity and Innovation – sources
of New Knowledge – our many Opportunities
• CREATIVITY – The ability to develop new ideas
and discover new ways of looking at problems
and opportunities
• INNOVATION – The ability to apply creative
solutions to problems and opportunities to
enhance or enrich peoples lives
• Creativity is THINKING – Innovation is DOING –
• Consider the relationship between Creativity,
Innovation and Vision as we work together and
combine our strengths
Slide 35
Exploration, Innovation, Education,
Entrepreneurship and Enterprise - Reflections
• Learning from History – Great People,
Great Deeds
• Contributions of China – and the West
• Present and Future Opportunities
• Education, Business and Industry and
Public Policy
• Education and Business Without Borders
Slide 36
So - What about IMAGINATION ?
Slide 37
Einstein on IMAGINATION….
“Imagination is more important than
knowledge. Knowledge is limited.
Imagination encircles the world”
Albert Einstein 1879 - 1955
Slide 38
Slide 39
So what about TECHNOLOGY in all
this?........
Reflections on the Impact of Technology and
how technological strength and leadership,
and the issues of Research and New
Discovery might be considered as we face
the future
Slide 40
The Impact of Technology -Traffic in
one day in 2003:
1971
All international phone calls
1975
All airline passengers
1984
All mobile phones
1992
All emails
1998
Source: Analysys, World Bank and ITU
Slide 41
All SMS
Innovation, Invention, Science and
Technology
“90% of all the scientists born in
the human race are alive today”
Prof. John Story - INSEAD
Slide 42
Three Converging Revolutions
Three Pervasive Technology Platforms –
Developments in the West and China
BIO TECH
Pharmaceuticals
Diagnostics
Research/Info
Tools
Industrial
INFO TECH
Hardware
Software
Communications
Genomics
Bioinformatics
Proteomics
Biosensors
Biochips
Bioelectronics
Microfluidics
Nanobiotechnology
Drug Delivery
Nanodevices
Nanosensors
Nanoelectronics
NANO TECH
Electrical
Structural
Biomedical
Energy & Environment
Slide 44
Overlapping Technologies support
Overlapping Business Clusters
HEALTH
Medical
services
Bio-informatics
Telecoms
INFORMATION and
COMMUNICATIONS
TECHNOLOGY
Medical devices and
scientific instruments
Networking
Computing
Bio-pharmaceuticals
University/ Research Institutes
Wireless
Inkjet printing
Medical
research
Sound &
vision
Technology Consulting
Publishing
Basic Research
KNOWLEDGE
CREATION
Education
Slide 45
Converging Interests and Influences
Innovating in the Overlap and Adding Value – working together –
across functions as well as across borders – wherever we are located
EDUCATION
&
RESEARCH
including Universities
INDUSTRY
&
BUSINESS
GOVERNMENT
National & Local
Slide 46
Slide 47
Characteristics of high technology regionsCatalysts for Growth
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Universities and centres of academic excellence
Exploitable, converging Technologies
Entrepreneurs with marketable ideas and products
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Business angels and established seed funds
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Sources of early stage venture capital
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Core of successful large companies
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Quality management teams and talent
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Supportive infrastructure
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Affordable space for growing businesses
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Access to capital markets
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Attractive living environment and accommodation
source :- Gibbons - Stanford University 1998
Slide 48
China’s recent years – Imaginative and Innovative
International Policies that changed the World….and
make it exciting and profitable to work with China
“To get rich is
GLORIOUS”
Deng Xiaoping 1982
Slide 49
Some of China’s Achievements
• Compound growth of GDP at 9% since 1995, sixth in
the world
• One of top 10 trading nations
• The most popular FDI destination
• The largest mobile phone market
• The second largest PC market
• The third largest advertising market
Slide 50
The World’s Factory – and much more….
China already produces:
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50% of world’s toys
50% of world’s shoes
60% of world’s air-conditioners
51% of world’s microwave ovens
Now more cars, laptops, ICs, mobile phones…
Slide 51
China -The Market for Everything
• Urban population 450 m,
160 cities over 1m
• Emerging of middle class
• Privatisation of housing
• Increasing attention to
well-being
• Availability of Internet
• Enormous market for
FMCG
• Lifestyle products
• Home improvement
• Healthcare and fitness
products
• E-learning services
Western type of consumerism is mainly driven by 15-25 years
age group (70 m)
Slide 52
Some of the things China Offers….
• 750 m people live in the
countryside
• Returning overseas
students and local MBAs
• Science and Engineering
students on the rise
• Increasing usage of ISO
accredited process
• Easy access to other Asian
markets
• Virtually unlimited supply
of low cost labour
• Local management talent
more available
• R&D bases well
established
• Quality of outsourced
manufacturing
• Convenient re-export base
Slide 53
UK and Capabilities fit well with China's priority
areas
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Telecoms, information technology
Climate Control / Environment / Sustainability
Transportation, power generation
Chemicals and petrochemicals
Bio-tech
Agriculture/ food processing
Potential opportunities also with:
Consumer goods, healthcare, education and training,
and financial services
And Creativity and Innovation are Strong
Characteristics
Slide 54
Potential of China - Healthcare
China Healthcare has more than
• 320,000 healthcare institutions
• 75,000 hospitals
Over 20 biotech parks covering
• Shanghai
• Beijing
• Guangzhou
• Shenzhen
• Chengdu
• Wuhan
Further examples Biotech/Pharma
Production facilities development in
• Pudong, Shanghai; Hangzhou,
Zheijang Province
China is one of the world’s largest
supplier of raw materials to pharma
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Slide 55
Land area comparable to US
Huge population as consumers
Major economic giant
Major internal market
China -Seventh Largest Pharmaceutical Market
Top 10
1996
2000
2005
2010
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US
US
US
US
2
Japan
Japan
Japan
Japan
3
Germany
Germany
Germany
Germany
4
France
France
France
France
5
Italy
UK
UK
China
6
Brazil
Italy
Italy
UK
7
UK
China
China
Italy
8
Spain
Brazil
Brazil
Canada
9
Korea
Canada
Canada
Spain
10
Canada
Spain
Spain
Brazil
11
China
Slide 56
Focus and Markets – Biotech in Asia
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Biotech in Asia - origins in
Asia Biotech Market Share
producing new crops and food
products - feeding the massive
MalaysiaAustralia
India 0.26% 6.89%
populations
10.29%
Emerging is in new drugs to
Taiwan
cure prevalent diseases in Asia 3.06%
eg respiratory, infectious
diseases
China
Rapidly ageing populations of 13.35%
Japan
Asia have spurred new
59.73%
developments in biotechnology
Korea
5.99% Singapore
China today has 130 million
Source: AsiaBiotech, 2003
0.43%
people age 60 or older
Likewise 45% of the population
is aged between 15-25 demands of the nouveau riche
Slide 57
Key Geographical Areas – Biotech in China
Human Genome & Genetics
Academy
Key Clinical Research
Centers
Biopharm Park,Xi’an
University
Biotech/Pharma
Prodn,Pudong
Biotech Research Park,
Guangzhou
Centres for TCM
Slide 58
Slide 59
Working in China -Cost savings can be
significant
• Labour cost 10% of the
UK’s, however direct
labour saving has limited
contribution to total costs,
usually up to 9 %
Typical cost structure of UK
manufacturers
Ov e r h e a d
Raw
s 30%
Mat erials
60%
• The real savings come
from materials, typically
10 to 60% (Arup &
Partners’ findings)
Dir ect
La bour
10 %
Source: Institute for manufacturing, Cambridge University
Slide 60
Willett International Ltd - Things that
happened
Coding and Labelling and International
Growth and Success – achieved by
Ordinary People in 100 + countries
“Dreaming of things that never were…?”
The World’s Coding Company
Slide 61
Slide 62
Willett’s Business
Coding and Labelling – Case Study
Slide 63
Willett’s Business
Coding and Labelling
Slide 64
What’s it really like ? Willett China War
Stories
• Understanding Cultural Issues – “Think
Like Chinese”
• What’s a General Manager ?
• A Strike in the Factory
• Values and Perceptions – A Criminal Crisis
in the Company
Slide 65
Exploding Myths
1. You can’t trust the Chinese !
2. In China “Yes” and “No” don’t mean “Yes” and
No”!
3. You’ll lose your technology and intellectual
property in China
4. China is good at copying – but not at creating
5. You can’t build meaningful Partnerships in
China
6. Contracts don’t mean anything in China
Slide 66
Going International – Not least China
– Key Words “TTR”
• TRUST !!
• TRANSPARENCY
• RELATIONSHIPS
Slide 67
Partnerships
Top-Level
commitment
Openness
and trust
Involvement of
relevant disciplines
Clear joint
objectives
Flexibility
Long-term
Relationship
Working Together
Total Quality
Management
Proactive
not Reactive
Slide 68
Wisdom from a Chinese Proverb – thoughts
for a Successful Way Ahead
“Before marriage know your partners
weaknesses;
In marriage use your partners
strengths”
Anon
Slide 69
Slide 70
Education Without Borders – Starting
Cultural Understanding Earlier….
• New Graduates in China 2006 – 2.5milln.
Excellence of Chinese University Teaching
• Increased activity & spending on R and D
• I million Chinese Students studying in
West – 120,000 in UK Universities
• President Hu’s policy – “Liberate Minds”
• “Go Abroad” Policy
Slide 71
Cambridge University Education Without
Borders – Case Study
Creativity and Innovation – Ideas Into
Action!
Entrepreneurship and Enterprise in
Tomorrow’s World
International Forum – Beijing – December 8th 2007
UK – China, Student Initiative
1500 Students from 15 Universities –
Practitioner Entrepreneurs from four Continents
Slide 72
Building Across Borders - Partnerships for
Education Innovation and Cross Cultural
Understanding
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University Student and Teacher Exchanges
Joint Curriculum Development
Joint Educational Events - Conferences etc
Industrial Placements and Internships
Joint R and D and Technology Development –
Universities and Companies
• Chinese Studies and Confucius Institutes
• Cultural Exchange activities
• Industry specific Education and Management
Development – eg. Banking
Slide 73
The West and China Working Together –
some thoughts on Excellence
“Excellence can be achieved, if we:
Care more than others think is wise,
Risk more than others think is safe,
Dream more than others think is practical,
Expect more than others think is possible.”
Deborah Johnson-Ross
Slide 74
Competition is healthy, but not the only way….
• Beware the “Arrogance of
Knowing Best”
• But Competition is not the only
way….
• Beware Arrogance
• “Today’s Peacock is
tomorrow’s feather duster”
• Knowledge, Innovation, Skills
and Attitude and open
minds….can find other
ways…..
• Let’s try Co-Opetition,
Complimentition and
Partnership – how about A
WORLD WITHOUT
BORDERS!
Slide 75
Expecting Great Things from Collaboration
in sustaining a Better World!
For more information……
www.alanbarrell.com
[email protected]
Slide 76