Will China take over corporate US? Not likely and certainly not very soon, argues China veteran Tom Doctoroff in his upcoming book What Chinese Want: Culture, Communism and China’s Modern Consumer, and summerizes his argument here in The Huffington Post.
The Chinese are (not) coming! It will be decades before Chinese corporations — even in strategic industries such as renewable energy or information technology — beat American, Western, and European companies on their own turf. Indeed, it may never happen at all. Indian companies have a better shot. Anyway, for the time being China is focusing energies on its expanding domestic market, a sensible strategy given its growth and price-conscious consumers. However, the single largest obstacle to the emergence of powerful Chinese brands is not tied to policy or preference. Put simply, the Chinese are great at dazzling application but lousy at innovation. Companies find themselves limited by: inefficient investment in research and development; limited shareholder rights; ineffective corporate governance; zero protection of intellectual capital; capital markets corrupted by political favoritism; and CEO “kings” whose focus is split between the bottom line and political imperatives.
- China’s spiritual crisis? – Tom Doctoroff (chinaspeakersbureau.info)