China CEO II

Voices of Experience from 25 Top Executives Leading MNCs in China

Juan Antonio Fernandez, Laurie Underwood

• Publisher: Wiley
• Year: 2020
• Print ISBN:
  9781119583431
• Edition: 1
• eBook ISBN:
  9781119583219
• Topic: Business
• Subtopic: Management
• Index: Business

Straight from the China CEO: Advice on leading operations in the world's fastest-moving, highest stakes market. 25 top executives leading high-profile multinational companies in China, as well as seasoned and respected China-based consultants, give their front-line advice on succeeding in this market.

Soaring spending power among the world's largest consumer population, radical digital transformation creating a cash-less, 'always on' society, severe generation gaps – these are just some of the factors which have completely transformed China since 2006, the year when the first volume of China CEO was published. And these are three of the main reasons the authors have again teamed up to put together this second volume – collecting entirely new content via in-depth, exclusive interviews with the heads of 25 high-profile CEOs of multinational companies in China, as well as a number of highly respected consultants who have built their careers by delivering advice on succeeding in the market.

In this book, CEOs and experts share their strategies for overcoming the most pressing issues faced by business leaders in China now, including: fierce competition from strong, globalized Chinese companies; working with the powerful, complex Chinese government; and successfully attracting the nation's wealthy but fickle and tech-savvy domestic consumers. Top executives and consultants also divulge their secrets for keeping up with China's astoundingly broad and rapid digital transformation in which the nation is now leading the world in mobile payment, online shopping, social media, Artificial Intelligence, and facial and voice recognition. They also discuss trends including localization of top positions in China, the rise of female top executives in the country and the challenge of attracting the nation's highly international, purpose driven millennials.

• Hear directly from the China CEOs of: ABB, AB InBev, Bayer, Bosch, Carrefour, Coca-Cola, IKEA, Korn Ferry, Lego, L'Oreal, NIIT, Mango, Manulife, Marriott, Maserati, Microsoft, Philips, Scania, SAP, Sony, Standard Chartered, Tata, Udacity, Victoria's Secret (Lbrands Int'l), Volvo, etc.
• Learn from seasoned China experts at McKinsey & Co, Economist Group, and more
• Written in a practical, easy-to-read format ideal for busy professionals, educators, and students

China CEO II: Voices of Experience from 25 Top Executives Leading MNCs in China is an invaluable resource for any professionals seeking to work in or with China, or executives expanding their responsibilities in China, and those involved in international business, finance or executive programmes.

Chapter 1
Why China CEO II?

1. China's Boom Since 2006
2. Who's in China CEO II ?
3. Front-Line CEO Analysis: China Then and Now

Introduction

Why did we decide to write China CEO II? Following the success of our first book—China CEO—released in 2006, we have been asked why we wanted to repeat the whole exercise again 14 years later. Why again seek interviews with top executives running large-scale operations for high-profile multinational companies (MNCs) in China? Was there really a need to write a new edition of the same book?

The short answer to this question is: yes. By 2020, the time was right to embark on China CEO II for one main reason: China has changed—dramatically. And meanwhile, interest in working in or with China from the rest of the world remains as strong and vibrant as it was in 2006. Thus, the advice given by our interviewees in 2006—detailing how to lead large teams and complex operations for MNCs in China—needed updating.

What we didn't know until we began conducting interviews is whether another China CEO book was needed. Given China's high-profile and rising global presence in both the international business and political arenas during the country's 40 years of reform and opening, perhaps most non-Chinese executives working in or with China already knew how to succeed here. Maybe enough information was available—online and digitally—to offer the resources needed to close cultural gaps and to prevent business mistakes from being made.

But as soon as we conducted the first interviews for China CEO II, we confirmed another compelling reason to write this book: multinational companies still grapple with significant challenges when operating in China. Namely, foreign companies—and the executives running them—continue to face difficulties, including cultural differences between an MNC's home country and China, misunderstandings caused by geographical distance or psychological separation from a company's top executives, and problems caused by variations in standards or misalignments in business communications norms, negotiating styles, or operating procedures. After the first two interviews for the potential new book, we felt affirmed in the value of our endeavor to again gather first-hand information and advice through in-depth interviews with those holding top executive positions at selected high-profile multinational companies with large-scale operations in China. As with the first book, we interviewed only those holding the position of China CEO or the equivalent position in the language of their company. Each of our interviewees had been in his or her position for at least one year at the time of our interview. This time period was essential for us to feel that the challenges detailed and advice given had survived the test of time and that the CEOs' advice will therefore be fully useful to our readers. (Most had been in the role of leading China operations for their company for at least five years.)

“…[M]ultinational companies still grapple with significant challenges when operating in China.”

—Authors of China CEO II

China's Boom Since 2006

To help readers to grasp the extremely fast pace of change underway in China today, we offer a snapshot of the giant strides the nation has made in terms of both economic and societal development between the publishing of China CEO (in 2006) and China CEO II (in 2020). Consider these changes:

• In 2006, China was the world's fourth largest economy (after the US, Japan and Germany).¹ In 2018, China was the world's second largest economy² (surpassing Japan as of 2010).³ Some analysts project China to surpass the US as the world's largest economy by 2030 (HSBC).⁴ When purchasing power parity is factored in, China has been the world's leading economy since 2016.⁵
• In 2006, China was the world's third-largest exporting nation (after the EU and the US) with exports of US$968 billion.⁶ By 2018, China was the globe's leading exporter, with US$2.49 trillion⁷ in exports.
• Per capita GDP for Chinese citizens went from US$2,099 in 2006⁸ to US$10,099 in 2019.⁹ This places China above both Mexico (US$9,866) and Bulgaria (US$9,504) in terms of per capita GDP, and close to Russia (US$11,461).¹⁰ And in China's first-tier cities, incomes are far higher. In Shanghai, for example, per capita GDP was over US$20,000 in 2018.¹¹
• China's cell phone subscriptions went from 34 per 100 Chinese citizens in 2006¹² to 115 per 100 citizens in 2018,¹³ reflecting that some users have more than one phone.
• China's internet users jumped from 10.5% of the population (2006)¹⁴ to 59.6% by...

Table of contents

• Cover
• Title Page
• Copyright
• Dedication
• Foreword
• Chapter 1 Why China CEO II ?
• Chapter 2 Prerequisites for China CEOs
• Chapter 3 China's Changing Talent Pool
• Chapter 4 China's Digital Revolution
• Chapter 5 The Transformation of Chinese Consumers
• Chapter 6 Competing in China
• Chapter 7 Managing Relations with the Chinese Government and Foreign Headquarters
• Chapter 8 Living in China
• Chapter 9 The Future of MNCs in China
• About the Authors
• End User License Agreement