Restarting Business in China After COVID-19: New Article in 'The Diplomat' Highlights Results from China Program Survey
Industries all over the world are grappling with new protocols and adaptations needed to safely reopen amongst changes the COVID-19 pandemic has wrought on the global economy. Nowhere have these changes been more apparent than in China, the original epicenter of the pandemic. Now, China is one of the countries leading the way in reopening its national economy.
To explore how business leaders and entrepreneurs in China responded to the lockdown and how they’re planning for the future, the China Program conducted a survey in coordination with the Stanford Center at Peking University and Stanford Business School alumni Christopher Thomas and Xue (Xander) Wu. Though taken from a small sample, the results are one of the best samples to date of how businesses in China are responding to the uncertain geopolitical environment the pandemic and current U.S.-China relations are creating.
High-tech firms and firms with a digital presence or the ability to quickly adapt to a digital environment have faired the best, as might be expected. Less expected are the indications that many of the business leaders surveyed are planning for some degree of 'decoupling' or economic separation from U.S.-based suppliers and markets. Both the pandemic and fluctuating U.S.-China relations have made access to global technologies uncertain and both factors are accelerating desires to create localized supply chains. While the long-term implications of these findings are still unknown, the survey provides a valuable snapshot of the current economic landscape within China.
Read an excerpt from the article below, and find the full article at The Diplomat. A Chinese language version is available on Caixin.
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From, "After COVID-19: Rebooting Business in China"
China was the first country to experience the ravages of COVID-19, having lost 4,634 people to the pandemic with 83,565 confirmed cases to date. Draconian measures were used to bend the curve and essentially stop the spread of the disease, although reports indicate that recently new cases have emerged, including those stemming from a Beijing market. For the most part, however, China has loosened restrictions and re-opened large parts of its economy. Individuals scan government-mandated QR health codes with their smartphones, and daily life has been restored to some sense of normalcy with restaurants serving customers and retail shops open to shoppers.
In this pivotal and important time, with streams of foreign policy arguments and opinion pieces sharply analyzing current U.S.-China geopolitical tensions continuing to pour forth, we at the Stanford China Program wanted to take stock of how businesses and the overall economy are coping as China tries to reopen its businesses and reboot its economy. Toward this effort, we conducted a collaborative survey of 135 senior executives in China from May 13-26. The survey was designed to help us better comprehend the variation in how Chinese businesses are reopening as well as how Chinese business leaders are viewing their prospects for the future. The research findings, based on one of the largest surveys to date of senior executives in China, helped us explore the following types of questions: What kinds of businesses have done better and what kinds have done worse? What role has the government played in economic assistance and business reopening? And how do China’s business leaders view the deterioration in U.S.-China relations, the possibility of decoupling, and even future access to technology?
Read the full article at The Diplomat.
Watch the panel discussion on the survey led by Jean Oi, Christopher Thomas, and Xue (Xander) Wu with Alvin Shiqi Wang (王世琪), Xiang Wang (王翔), Simon Yang (杨士宁), and Zhiqiang (ZZ) Zhang (张志强).
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The survey reveals mixed progress in reopening different sectors of China's economy, but also shows that many business leaders in China are planning for some level of decoupling as access to global technology and supply chains remains uncertain.
Alvin Shiqi Wang (王世琪) has served as CEO and President of 21Vianet Group, Inc. since February 2018. Currently, Mr. Wang serves as Vice President of TUS Digital Group, a subsidiary of TUS Holdings, and serves on the board of directors of Beijing CIC Technology Co., Ltd. and Guangzhou Tuwei Technology Co., Ltd. . Mr. Wang has nearly 20 years of experience in the telecommunications industry, working at various renowned international companies, including 11 years with Ericsson, focusing primarily on strategy development and execution, corporate management, and equity investments. Mr. Wang received a bachelor's degree from Tsinghua University and an MBA from Peking University-Vlerick MBA Programme (BiMBA).
Xiang Wang (王翔) is President and Acting CFO of Xiaomi Corporation, responsible for platform functions and for assisting the CEO with Group operations. Mr. Wang joined Xiaomi Corporation in July 2015 served as its Senior Vice President and President for International Business, responsible for global expansion, IP strategy, and strategic partner relationship management. Mr. Wang has more than 20 years of experience in the semiconductor and communications fields, with great vision and comprehensive understanding of next-generation wireless communications. He has played an integral role in shaping Xiaomi’s international business operations including with respect to its intellectual property compliance, management and strategy throughout the world. In 2016, Mr. Wang put together an international team of sales and marketing teams to expand into more markets outside of China. Within just 3 years, he led his teams into over 90 markets. As of Q3 2019, Xiaomi’s international revenue accounted for 48.7% of its total revenue. Today, Xiaomi is ranked among top 5 smartphone brands in over 40 markets. Mr. Wang previously served as the Senior Vice President of Qualcomm and President of Qualcomm Greater China, leading the company’s business and operations in Greater China. Prior to that role, he was Vice President of Qualcomm CDMA Technology, responsible for Qualcomm chipset business and customer service in China. Under his leadership, Qualcomm rapidly extended and strengthened its partnerships with increasing numbers of Chinese manufacturing customers. Before joining Qualcomm, Mr. Wang held key positions in sales and marketing at internationally leading companies, including Motorola and Lucent/Agere. Mr. Wang earned his BSEE from Beijing Polytechnic University.
Zhiqiang (ZZ) Zhang (张志强) is President of ABB in China since October 2018. He has extensive management experience and a deep understanding of the Chinese market, developed during his career at several large global companies over the past three decades. He joined ABB from Sandvik where he was Asia- Pacific Regional Holding Officer and President of Sandvik China, and Member of Sandvik Group Executive Committee. Prior to that, he held leadership positions at several other companies, including Nokia Siemens Networks, where he was President of the Greater China Region, and Siemens VDO Automotive, China, where he was President and CEO. Mr. Zhang is Non-Executive Board member of Georg Fischer AG (Switzerland) and Daetwyler Holding AG (Switzerland). He holds a bachelor’s degree in electronic engineering from Beijing Jiaotong University, China, and a master’s degree in business administration from the Smith School of Business at Queen’s University in Canada.
Jean C. Oi is the William Haas Professor of Chinese Politics in the Department of Political Science and a senior fellow in the Freeman Spogli Institute for International Studies at Stanford University. She directs the China Program at the Walter H. Shorenstein Asia-Pacific Research Center and is the Lee Shau Kee Director of the Stanford Center at Peking University. Professor Oi has published extensively on China’s reforms. Recent books include Zouping Revisited: Adaptive Governance in a Chinese County, coedited with Steven Goldstein (Stanford University Press, 2018), and Challenges in the Process of China’s Urbanization, coedited with Karen Eggleston and Yiming Wang (2017). Current research is on fiscal reform and local government debt, continuing SOE reforms, and the Belt and Road Initiative.
Christopher Thomas was most recently a partner with McKinsey & Company. He served as co-Managing Partner for the Firm’s Global Digital Strategy service line as well as its Global IoT service line; and as the leader of its Asia Semiconductor Practice. Prior to McKinsey, Mr. Thomas spent ten years at Intel. He was the General Manager of Intel China, with joint ownership for the region’s $5 billion-plus P&L. In this role, he grew revenues by more than 50% and oversaw China’s successful elevation from a sales unit to an independent regional P&L business reporting directly into headquarters. Mr. Thomas began his career as a private equity investor at The Blackstone Group in New York City. He is currently a Visiting Professor at Tsinghua University, China’s leading educational institution. He received an MBA from Stanford Business School, where he was an Arjay Miller scholar; a Master of Arts in Political Science from Stanford University; and a Bachelor of Science in Economics, summa cum laude, from the Wharton School.
