Understanding China: doing business in the world’s most dynamic economy

Abstract

Purpose

The author believes that China’s modern development is reaching a crossroads, and that country is facing some critical challenges as it seeks to keep its modernization program, and further economic development, on track.

Design/methodology/approach

This masterclass posits that understanding more fully what is happening in China, and how to succeed there, is rapidly becoming a strategic imperative for any corporate leader with global ambitions.

Findings

China’s importance to global business is undeniable. Even though its growth rate now seems to be stabilizing at 7-8 percent, China looks set to become the world’s largest economy within a decade, and is likely to be more than twice the size of USA economy by 2050.

Practical implications

Soft infrastructure should be China’s next priority. China’s ability to construct a modern airport and a fleet of world class aircraft has been progressing at a much faster rate than its overall ability to operate an efficient, world-leading, inter-city and international, civil aviation passenger service.

Social implications

While the pace of political reform is likely to remain cautious, it has already been quite “extensive and far-reaching” in China’s own terms and continues to evolve.

Originality/value

Western leaders should reconsider how they measure China’s progress. China can be expected to experiment its way very cautiously towards greater democratization, but the outcome is likely to be profoundly different from the Western model.

Citation

Leavy, B. (2015), "Understanding China: doing business in the world’s most dynamic economy", Strategy & Leadership, Vol. 43 No. 3, pp. 25-36. https://doi.org/10.1108/SL-03-2015-0020