Zhibin Gu: why globalization must accelerate vs global financial crisis?

Should globalization go on? Why are late developing nations India and China moving ahead fast? Is global financial crisis reshaping world leadership and lifestyle? Are surging China and India to bring new world leaders in finance, banking, politics, and management? Which nation to lead 21st century, India, China, US, or Europe? Is a trade war coming? Get timely information and analysis from a timely book guide. <!--break--> Get inside knowledge and analysis from finance and management guide book: China’s Global Reach Borderless Business, National Competition, Politics, and Globalization (book excerpts) by George Zhibin Gu Afterword China, United States and Global Development by Andre Gunder Frank Part V Globalization in Light of History SUMMARY (1). For ages, East and West have moved on independent orbits. The divergence widened even more when Europe expanded globally starting some 600 years ago. Outward expansion and exploitation was the passion of the day. Along the way, the Industrial Revolution took place. This has offered vast advantages to the West, which quickly altered global map in all sorts of ways. The vast advantages in the traditional farming societies like China and India were gone. Consequently, China and India, among other developing nations, tried hard to close their doors as a way to fend off the Western expansionist power. (2). But as time went by, the waves of industrialization and development reached Asia. It started with the smaller Asian nations and regions like Singapore, South Korea, Hong Kong, Taiwan, Japan, and Malaysia. Among them, Japan’s influence was the biggest. This group of new players altered the global economic map significantly. However, Japan’s retreat since 1991 has opened doors wide for Western Inc. to tap into Asia in big ways. (3). Today, one most significant change is happening with China and India. Their full embracing of globalization is bound to create vast effects. Though both nations started this new growth at an extremely low level, their speed and scale is unprecedented. Also unprecedented are the new opportunities rising from these frontier markets. (4). Like never before, all developing nations are in a hurry in participating in the world development as now. The sudden surge of so many late developers has created vast new opportunities for the world. Now wealth creation is truly a global affair. No nation can truly refuse to take a part in this new movement without producing a mess for itself. More significantly, the entire world is moving toward the same development orbit for the very first time in man’s history. At the same time, sharing and collaboration as well as competition and learning have rapidly become a new norm for global life. This trend will only strengthen as benefits go to all participating parties. Hence, the world enters a new era, the era of great emergence of global civilizations. Though still at the very beginning, its development can hardly be reversed despite all the worries and conflicts. (5). But challenges are plentiful as well. The old world order is centered on the developed West, which can no longer fare well with the changing realities. Hence, there is an urgent need to create a new mindset. But reaching the stage is easier said than done; and (6). For China’s sustained growth, there is an urgent need to walk out the old bureaucratic framework. China’s new socioeconomic forces as well its ever-increasing openness promote fundamental changes. At this time, opportunities and challenges are equally great. [...] CONTENTS Introduction Three New Lessons Growing Up in China Going International Returning Home This Small Book The Big Picture Acknowledgments Part I China as a New Global Theater 1. Ambitions of Foreign Multinationals in China Today’s Versions of Columbus and Magellan International Rush Why Are They Here? Why China? One Big Factory-Market More Sectors, More Players 2. The Business of China Is Business! “Empty Talk Destroys Prosperity!” Foreign Bankers Spouses and Children Welcome! 3. Creation of a Global Manufacturing Center Unexpected Contributors Arrival of Indian Companies A Crowded Market Galanz: the Manufacturer of the World Convenient Settings Future Trends 4. The Ultimate Driving Force: Explosive Consumption Unexpected Development Impressive Outcome Continued Consumption Surge 5. Sharp Rise of Private Sector One U.S. Banker’s Discovery 40 Million New Businesspeople Rural and Urban Entrepreneurs Buttons Create a New Industrial Town Jinjiang, Fujian: Biggest Exporting Center for Sport Shoes Low-End Players 6. All Players Are Important Competing International Players Auto Market International Banks International Listings Consumer Views Part II Global Interactions, Business Dealings, and Job Transfers 7. Learning - A Big Industry Demand for Education A Top School International Involvement 8. The Officials’ Global Reach Officials Lead the Way Guangdong versus Inland Abolishing Bureaucratic Tricks International First New York versus Beijing 9. “Capital Is Not Enough” No Shortcuts Two Lessons to Remember Volkswagen versus Beijing Jeep “Capital Is Not Enough” Ericsson’s Seven Mistakes Bashing Carrefour 10. Global Job Transfers One International Question Hiring by Foreign Multinationals New Era of Global Job Transfers Job Worries around the World Hiring by Chinese Players Global Job Transfers: China versus India Part III China’s New International Experiences 11. Price, Price, Price A Chinese Edge GE in China Japan’s Global Efforts Cisco versus Huawei Microsoft in China Global Price Reductions 12. When Can Chinese Companies Become Global? Weakness at Home Foreign Observations Low Benefits for China State Banks: “The Troublemakers” A Long Way to Go 13. Chinese Multinationals Some Sizable Chinese Companies Buying Into International Markets Overseas Operations Creating More Partnerships 14. Bringing Foreigners In Trade Fairs Industrial Parks Foreign Acquisitions Part IV China’s Reform at Home: The Unfinished Task 15. Problems Outpacing Solutions The Ownership Issue State Assets and Death on the Nile “Two Pockets of the Same Jacket” Lack of Weapons and True Owners 16. How Can a Man Still Wear Baby Clothes? Credit Crisis and Banking Problems The Richest Man in Shanghai Corruptive Partnerships 17. Crises of State Sector Rapid Changes in the Managerial Class Hiring Foreign Managers Long Live Competition! Reform Difficulties Painful Layoffs Government Trimming 18. When Can China Achieve Meaningful Restructuring? A Saturated Market Difficulties for a Rational Order The CEO in China and Elsewhere Who Is Responsible for Wealth Creation? Buying Parties Ready? Need for Greater Determination 19. Employment Traps Resident Permits Lives of the Migrants Employment Difficulties for Other Groups Death of a College Graduate 20. Bureaucratic Tails Tails Everywhere Lucky International Players “The Red Building” Part V Globalization in Light of History 21. An Unbroken Circle? The British Isles as a Global Center China’s Missed Opportunities The U.S. Way: Dumping Losers Expansion and Wealth Creation, Past and Present 22. Universal Companies and Global Expansion Bigger and Bigger Multinationals First Strategy: A Strong Home Base Second Strategy: Creating a New Form of Dominance Third Strategy: A True Global Reach China’s Participation in the World Economy 23. More on the Circle Who Has Affected Globalization the Most? First Factor: Japan’s Global Reach and Retreat What Is Going On in Tokyo? South Korea: Glories and Bubbles Second Factor: Asia’s Financial Crisis Third Factor: The World Trade Organization Unexpected Developments Global Development Orbit 24. How Does China Achieve Sustained Growth? A Great Paradox Effective Government, Different Role The Big Picture A New Model Getting Out of the Box A New World Order Afterword: China, United States and Global Development by Andre Gunder Frank Notes ABOUT THE AUTHOR George Zhibin Gu is a journalist/consultant based in Guangdong, China. A native of Xian, he obtained education at Nanjing University in China and Vanderbilt University and the University of Michigan in the United States. He holds two MS degrees and a Ph.D. from the University of Michigan. For the past two decades, he has been an investment banker and business consultant with a focus on China. His work focuses on helping international businesses to invest in China and the Chinese companies to expand overseas. He has worked for Prudential Securities, Lazard, and State Street Bank, among others. He generally covers mergers and acquisitions, joint ventures, venture capital, business expansion, and restructuring. Also, he is a journalist focusing on China in relation to global development. His articles or columns have appeared in Asia Times, Beijing Review, The Seoul Times, Financial Sense, Gurus Online, Money Week, Online Opinion, Asia Venture Capital Journal, and Sinomania, among others. He is the author of three additional books, China Beyond Deng: Reforms in the PRC (McFarland, 1991), China and New World Order: How Entrepreneurship, Globalization, and Borderless Business Reshape China and World (Fultus, 2006), and Made in China: Players and Challengers in the 21st Century (English edition forthcoming; Portuguese edition, Centro Atlantico, 2005). He is a member of World Association of International Studies hosted by Stanford University.

<p>Should globalization go on? Why are late developing nations India and China moving ahead fast? Is global financial crisis reshaping world leadership and lifestyle? Are surging China and India to bring new world leaders in finance, banking, politics, and management? Which nation to lead 21st century, India, China, US, or Europe? Is a trade war coming? Get timely information and analysis from a timely book guide.</p> <!--break--><p>Get inside knowledge and analysis from finance and management guide book: China’s Global Reach</p> <p>Borderless Business, National Competition, Politics, and Globalization (book excerpts)</p> <p>by George Zhibin Gu</p> <p>Afterword<br /> China, United States and Global Development<br /> by Andre Gunder Frank</p> <p>Part V</p> <p>Globalization in Light of History</p> <p>SUMMARY</p> <p>(1). For ages, East and West have moved on independent orbits. The divergence widened even more when Europe expanded globally starting some 600 years ago. Outward expansion and exploitation was the passion of the day. Along the way, the Industrial Revolution took place. This has offered vast advantages to the West, which quickly altered global map in all sorts of ways. The vast advantages in the traditional farming societies like China and India were gone. Consequently, China and India, among other developing nations, tried hard to close their doors as a way to fend off the Western expansionist power.</p> <p>(2). But as time went by, the waves of industrialization and development reached Asia. It started with the smaller Asian nations and regions like Singapore, South Korea, Hong Kong, Taiwan, Japan, and Malaysia. Among them, Japan’s influence was the biggest. This group of new players altered the global economic map significantly. However, Japan’s retreat since 1991 has opened doors wide for Western Inc. to tap into Asia in big ways.</p> <p>(3). Today, one most significant change is happening with China and India. Their full embracing of globalization is bound to create vast effects. Though both nations started this new growth at an extremely low level, their speed and scale is unprecedented. Also unprecedented are the new opportunities rising from these frontier markets.</p> <p>(4). Like never before, all developing nations are in a hurry in participating in the world development as now. The sudden surge of so many late developers has created vast new opportunities for the world. Now wealth creation is truly a global affair. No nation can truly refuse to take a part in this new movement without producing a mess for itself. More significantly, the entire world is moving toward the same development orbit for the very first time in man’s history.</p> <p>At the same time, sharing and collaboration as well as competition and learning have rapidly become a new norm for global life. This trend will only strengthen as benefits go to all participating parties. Hence, the world enters a new era, the era of great emergence of global civilizations. Though still at the very beginning, its development can hardly be reversed despite all the worries and conflicts.</p> <p>(5). But challenges are plentiful as well. The old world order is centered on the developed West, which can no longer fare well with the changing realities. Hence, there is an urgent need to create a new mindset. But reaching the stage is easier said than done; and</p> <p>(6). For China’s sustained growth, there is an urgent need to walk out the old bureaucratic framework. China’s new socioeconomic forces as well its ever-increasing openness promote fundamental changes. At this time, opportunities and challenges are equally great.<br /> [...]<br /> CONTENTS<br /> Introduction<br /> Three New Lessons<br /> Growing Up in China<br /> Going International<br /> Returning Home<br /> This Small Book<br /> The Big Picture</p> <p>Acknowledgments</p> <p>Part I China as a New Global Theater</p> <p>1. Ambitions of Foreign Multinationals in China<br /> Today’s Versions of Columbus and Magellan<br /> International Rush<br /> Why Are They Here?<br /> Why China?<br /> One Big Factory-Market<br /> More Sectors, More Players</p> <p>2. The Business of China Is Business!<br /> “Empty Talk Destroys Prosperity!”<br /> Foreign Bankers<br /> Spouses and Children<br /> Welcome!</p> <p>3. Creation of a Global Manufacturing Center<br /> Unexpected Contributors<br /> Arrival of Indian Companies<br /> A Crowded Market<br /> Galanz: the Manufacturer of the World<br /> Convenient Settings<br /> Future Trends</p> <p>4. The Ultimate Driving Force: Explosive Consumption<br /> Unexpected Development<br /> Impressive Outcome<br /> Continued Consumption Surge</p> <p>5. Sharp Rise of Private Sector<br /> One U.S. Banker’s Discovery<br /> 40 Million New Businesspeople<br /> Rural and Urban Entrepreneurs<br /> Buttons Create a New Industrial Town<br /> Jinjiang, Fujian: Biggest Exporting Center for Sport Shoes<br /> Low-End Players</p> <p>6. All Players Are Important<br /> Competing International Players<br /> Auto Market<br /> International Banks<br /> International Listings<br /> Consumer Views</p> <p>Part II Global Interactions, Business Dealings, and Job Transfers</p> <p>7. Learning - A Big Industry<br /> Demand for Education<br /> A Top School<br /> International Involvement</p> <p>8. The Officials’ Global Reach<br /> Officials Lead the Way<br /> Guangdong versus Inland<br /> Abolishing Bureaucratic Tricks<br /> International First<br /> New York versus Beijing</p> <p>9. “Capital Is Not Enough”<br /> No Shortcuts<br /> Two Lessons to Remember<br /> Volkswagen versus Beijing Jeep<br /> “Capital Is Not Enough”<br /> Ericsson’s Seven Mistakes<br /> Bashing Carrefour</p> <p>10. Global Job Transfers<br /> One International Question<br /> Hiring by Foreign Multinationals<br /> New Era of Global Job Transfers<br /> Job Worries around the World<br /> Hiring by Chinese Players<br /> Global Job Transfers: China versus India</p> <p>Part III China’s New International Experiences</p> <p>11. Price, Price, Price<br /> A Chinese Edge<br /> GE in China<br /> Japan’s Global Efforts<br /> Cisco versus Huawei<br /> Microsoft in China<br /> Global Price Reductions</p> <p>12. When Can Chinese Companies Become Global?<br /> Weakness at Home<br /> Foreign Observations<br /> Low Benefits for China<br /> State Banks: “The Troublemakers”<br /> A Long Way to Go</p> <p>13. Chinese Multinationals<br /> Some Sizable Chinese Companies<br /> Buying Into International Markets<br /> Overseas Operations<br /> Creating More Partnerships</p> <p>14. Bringing Foreigners In<br /> Trade Fairs<br /> Industrial Parks<br /> Foreign Acquisitions</p> <p>Part IV China’s Reform at Home: The Unfinished Task</p> <p>15. Problems Outpacing Solutions<br /> The Ownership Issue<br /> State Assets and Death on the Nile<br /> “Two Pockets of the Same Jacket”<br /> Lack of Weapons and True Owners</p> <p>16. How Can a Man Still Wear Baby Clothes?<br /> Credit Crisis and Banking Problems<br /> The Richest Man in Shanghai<br /> Corruptive Partnerships</p> <p>17. Crises of State Sector<br /> Rapid Changes in the Managerial Class<br /> Hiring Foreign Managers<br /> Long Live Competition!<br /> Reform Difficulties<br /> Painful Layoffs<br /> Government Trimming</p> <p>18. When Can China Achieve Meaningful Restructuring?<br /> A Saturated Market<br /> Difficulties for a Rational Order<br /> The CEO in China and Elsewhere<br /> Who Is Responsible for Wealth Creation?<br /> Buying Parties Ready?<br /> Need for Greater Determination</p> <p>19. Employment Traps<br /> Resident Permits<br /> Lives of the Migrants<br /> Employment Difficulties for Other Groups<br /> Death of a College Graduate</p> <p>20. Bureaucratic Tails<br /> Tails Everywhere<br /> Lucky International Players<br /> “The Red Building”</p> <p>Part V Globalization in Light of History</p> <p>21. An Unbroken Circle?<br /> The British Isles as a Global Center<br /> China’s Missed Opportunities<br /> The U.S. Way: Dumping Losers<br /> Expansion and Wealth Creation, Past and Present</p> <p>22. Universal Companies and Global Expansion<br /> Bigger and Bigger Multinationals<br /> First Strategy: A Strong Home Base<br /> Second Strategy: Creating a New Form of Dominance<br /> Third Strategy: A True Global Reach<br /> China’s Participation in the World Economy</p> <p>23. More on the Circle<br /> Who Has Affected Globalization the Most?<br /> First Factor: Japan’s Global Reach and Retreat<br /> What Is Going On in Tokyo?<br /> South Korea: Glories and Bubbles<br /> Second Factor: Asia’s Financial Crisis<br /> Third Factor: The World Trade Organization<br /> Unexpected Developments<br /> Global Development Orbit</p> <p>24. How Does China Achieve Sustained Growth?<br /> A Great Paradox<br /> Effective Government, Different Role<br /> The Big Picture<br /> A New Model<br /> Getting Out of the Box<br /> A New World Order</p> <p>Afterword: China, United States and Global Development<br /> by Andre Gunder Frank</p> <p>Notes</p> <p>ABOUT THE AUTHOR</p> <p>George Zhibin Gu is a journalist/consultant based in Guangdong, China. A native of Xian, he obtained education at Nanjing University in China and Vanderbilt University and the University of Michigan in the United States. He holds two MS degrees and a Ph.D. from the University of Michigan.</p> <p>For the past two decades, he has been an investment banker and business consultant with a focus on China. His work focuses on helping international businesses to invest in China and the Chinese companies to expand overseas. He has worked for Prudential Securities, Lazard, and State Street Bank, among others. He generally covers mergers and acquisitions, joint ventures, venture capital, business expansion, and restructuring.</p> <p>Also, he is a journalist focusing on China in relation to global development. His articles or columns have appeared in Asia Times, Beijing Review, The Seoul Times, Financial Sense, Gurus Online, Money Week, Online Opinion, Asia Venture Capital Journal, and Sinomania, among others.</p> <p>He is the author of three additional books, China Beyond Deng: Reforms in the PRC (McFarland, 1991),</p> <p>China and New World Order: How Entrepreneurship, Globalization, and Borderless Business Reshape China and World (Fultus, 2006), and Made in China: Players and Challengers in the 21st Century (English edition forthcoming; Portuguese edition, Centro Atlantico, 2005). He is a member of World Association of International Studies hosted by Stanford University.</p>