London, 9 March 2010 — “Indispensable to executives looking to enter in the Chinese marketplace…A comprehensive and worthwhile roadmap for doing business in China” – Publishers Weekly.
Few Western companies were prepared for the speed of China's recovery from the global financial crisis. Fewer still really understand the new and unexpected China that is emerging from the meltdown. Their China strategy has depended on an outdated and un-nuanced view of China as simply the world's largest market for untapped growth. Most haven't prepared for competing with China's new wave of entrepreneurial energy – or harnessing its rise to transform their own competitive position in the global economy. The engine driving the world out of the global financial crisis and back to growth is China. But only those multinational companies that develop a genuine China strategy will come along for the ride.
In The China Strategy (Basic Books, March 23, 2010, 288 pages, $26.95) Edward Tse, Booz & Company's Chairman for Greater China, shows companies how to prepare for the new China by identifying four key drivers of enormous change:
- Open China - The emergence of the middle class and urbanization will transform China's huge mass market into a vast, highly differentiated and sophisticated multi-tiered consumer economy.
- Competitive China - China has become a formidable global competitor on all fronts. It is now the world’s largest and fastest-growing source of entrepreneurial start-ups. Nearly 300,000 foreign-invested businesses have been established there. Meanwhile, Chinese companies such as Lenovo, Haier, and ZTE are taking their businesses worldwide.
- Official China - State-owned companies and a state-controlled economy are here to stay. But China's growth requires expanding trade relations and openness. The result is a first-of-its-kind nondemocratic but market-driven form of rule that experiments across traditional boundaries.
- One World - Although trade disputes, terrorism, and political tensions continue, China and the rest of the world are becoming interdependent as never before.
Tse puts all these pieces together, providing a roadmap for building effective strategies for the new China. "With an understanding of these dynamics, and of the four driving forces behind change," writes Tse, "corporate leaders can position themselves not just to succeed, but to be part of the great Chinese renaissance now unfolding - a renaissance that will change the world."
Advance Praise for The China Strategy
“The China Strategy provides a gripping, strategic examination of the dynamically evolving context of China, and the key players surrounding it. It contains a wealth of experiential knowledge, deep analytical insights, and broad strategic vision. Business leaders of multinational companies with a stake in China will benefit immensely from this book.”—Warren K. Liu, author of KFC in China: Secret Recipe for Success
“China is a country that has consistently surprised those who try to manage from afar. It is a marketplace that must be experienced first-hand. Too many CEOs and companies are still in denial of China’s role as the single most important link in a new global business paradigm. Ed Tse’s insightful book should be a wake-up call for them even as it serves as an important checklist for even the most seasoned China veterans. China has proven that its force is inescapable, and The China Strategy is a “must read” for those who have the courage to climb aboard. I wish I had this book 15 years ago!”—Dinesh C. Paliwal, Chairman, President and CEO, Harman International
“The Chinese market will one day become much bigger than any market that exists today. The Chinese population will also one day become well educated and sophisticated, taking the best from all the cultures around the world and avoiding the mistakes made by today's advanced economies. In each industry in China, the winner most likely will be someone who can integrate best practices from around the world and innovate to meet the constantly evolving needs of Chinese consumers. All business models will have to be reinvented here. Read The China Strategy and you will understand.”—Sam Su, Vice Chairman of the Board and President of the China Division, Yum! Brands, Inc.
“In The China Strategy, Edward Tse pulls together observations that have previously been handled separately – on Chinese markets, entrepreneurs, government trends, and the ever-more-integrated global economy — and combines them into a viable strategic plan for corporate leaders everywhere. I recommend this book for anyone trying to build a business in China – or to make that business successful.”—Douglas A. Jackson, President, Coca-Cola Greater China
“The China Strategy is specifically written for executives thinking about how to incorporate China fully into a corporate strategy—not just as a market, not just as a source of product, but in an integrated, well-considered approach to global enterprise.”—Kenichi Ohmae, author of The Next Global Stage
“The China Strategy presents a culmination and distillation of Ed Tse’s deep insights in China. Dr. Tse’s suggestions about the full integration of China into a company’s value chain and creating a true “One World” vision will be an essential part in helping corporations deal with this very dynamic marketplace. Many of the observations are equally apt for Chinese entrepreneurs who are expanding their business globally.”—Xu Lejiang, Chairman, The Baosteel Group Company Ltd
“Edward Tse is one of these rare people who deserve to be called an expert on the Chinese economy. The China Strategy should be at the top of the reading list for anybody interested in how companies should engage with and leverage the rise of China.”—Anil K. Gupta, Michael Dingman Chair in Global Strategy and Entrepreneurship, Smith School of Business, The University of Maryland, and coauthor of Getting China and India Right
“The China Strategy is a great achievement: a well-written book with the appropriate approach and scope for its subject. This is a must-read for all those who are doing business in China.”—Josef Mueller, executive-in-residence, International Institute for Management Development, and former Chairman and CEO of Nestle Greater China.