The China Strategy

You Ain’t Seen Nothing Yet

The fruits of China’s economic development are obvious – from the imposing skyscrapers in its eastern megacities to its investments on every continent. China’s rapid recovery from the 2008 economic crisis proved its resilience. Although the government’s nearly $600-billion stimulus package played a large role, credit also goes to the entrepreneurial spirit and steely resolve of China’s 1.3 billion citizens. Their attitude is a harbinger of things to come. During the second decade of the 21st century, every aspect of China will change from its 2000-to-2010 status quo: New business leaders will emerge, consumer tastes will shift, and the government will instigate new policies and move in fresh directions. Given that China’s economic expansion will cause disorder and dynamism worldwide, to do business there, your firm must create a “China strategy” – a “long-range developmental plan” for working in a world where China is a central constituent. Four “drivers” will shape the future of China’s economy:

1. “Open China”

China’s consumers are the primary beneficiaries of its “unlocked” economy. The business world now vies for their attention...