BRICS Business Magazine English Edition No.6(10)
In the multipolar world of the not so distant future, the Chinese pole could turn out to be the strongest. The West is slowly departing from its role as the undisputed economic leader, and we are entering an era for which none of is fully equipped.
While fear and misunderstanding are increasing in certain countries, districts, and regions, opportunities are multiplying. China will become much larger in our lifetime – not only in terms of goods and money, but also in the spread of Chinese ideas, fashions, and lifestyles. Global migration patterns will also change dramatically.
The attitudes towards these changes will be even more varied. Some countries are vying for the new Silk Road to travel through their territory, while others are eschewing major collaboration with the Celestial Empire. After all, if change is perceived as a threat, then maintaining the status quo becomes more expensive than any forgone benefit. In my opinion, knowledge about China – its values, ideals, and aspirations – is insufficient for optimists and pessimists alike.
For example, one must bear in mind that military seizure of foreign territories is not a traditional Chinese practice. Outward expansion has occurred hand-in-hand with culture, which successfully spread into new lands. Perhaps this is also feared. A look back at history provides us with the mythology of the eternal and immutable Middle Kingdom. It has lost none of its steam, but instead has accumulated more and more over the centuries. In fact, the China that was formed from different ethnicities is diverse and subject to influences, too – this in itself is a sign of its modernity. Westernization is in full swing in China, which only expands the scope for dialogue. Every country in the world should learn not only to understand China, but also to offer valuable knowledge about itself in return.
In the late 1990s, the Chinese government initiated the Go Out policy, an effort to encourage corporate China to make investments abroad and secure resources and technology in overseas markets. This initiative gave birth to a new class of companies, the Chinese Globalizers. The World Economic Forum (WEF), in collaboration with Strategy& (a global team of practical strategists formed when the firm formerly known as Booz & Company combined with PwC), identified the best corporate outperformers in Emerging Best Practices of Chinese Globalizers: Develop the Innovation Model.Trends
While cooperation between China and Russia looks to be at its strongest since the Sino-Soviet split, it is extremely one-sided, benefitting China but offering little to Russia in return. The natural counterweight to China is Europe and Russia working together. To restore its strength, Russia must shift back to a course of engagement and friendship with Europe.Opinion
Some experts believe that people will always seek out bad news. According to Stuart Soroka, a professor of Communication Studies and Political Science at the University of Michigan, “evolutionarily speaking, there are advantages to being an animal that prioritizes negative information.”
Today’s global economy looks much as it did in the wake of WWII. We are facing a crisis of high unemployment, rising debt levels, and enormous financial hardships. Now, as was the case 70 years ago, an effective strategy to spur economic growth depends on international cooperation.Opinion
The Arab world and its neighbors are stuck in a violence trap. The fighting in Libya, Syria, Yemen, and Iraq, together with the predations of groups like the Islamic State, is destroying the economic links needed to ensure long-term political stability. Indeed, by redrawing the region’s economic boundaries, the latest wave of violence has brought about a veritable trade shock, the true scale and significance of which has largely gone unnoticed.Opinion
China’s success in establishing the Asian Infrastructure Investment Bank has been widely regarded as a diplomatic fiasco for the United States. After discouraging all US allies from joining the AIIB, President Barack Obama’s administration watched as Great Britain led a raft of Western European countries, followed by Australia and South Korea, into doing just that.Opinion
This list showcases 10 Chinese businessmen who built business empires. They serve as the best illustration of China’s entrepreneurial spirit, as well as its scale and diversity. Their behavioral models – together with their business principles, attitudes, and outcomes – will one day fill entire chapters of textbooks.Asia
Although there is growing interest in Russia and China for business partnerships, entrepreneurs and investors are just starting to take the steps needed to forge these alliances. Unfortunately, there is still a lack of understanding of culture and business ethics. To better prepare for these business dealings, it is useful to recall a few Russian proverbs that are very much in line with ‘Chinese wisdom,’ and should make it easier to avoid problems from the outset. They are applicable not only for Russian businesses, but also for any other countries seeking to establish partnerships with China.Asia
China’s current economic slowdown will not lead to a ‘hard landing,’ at least not in the next decade. A serious crisis is possible later on, but only if the government is unable to find solutions to China’s most serious challenges: its changing demography, energy security, and environmental problems.Asia
A new front is about to flare up in the war for control of trade routes between Asia and Europe. India and Pakistan – the two largest countries on the Indian subcontinent – are determined to break out of their geographical borders and link themselves to the European continent through new transport routes.Asia
Ufa, the capital of the Republic of Bashkortostan, will play host to the SCO and BRICS Summits this summer. Head of Bashkortostan Rustem Khamitov is determined to leverage this opportunity to garner greater interest in his city from foreign investors and to implement his idea of a region-to-region international cooperation format.Ufa 2015
Rostec, a public Russian corporation, works on upgrading communication systems and on building strong brands. It aims at internal consensus between top and middle managers, reaching target audiences, and translating and implementing the company’s image of the future. Technodynamika, Kalashnikov, Baikal, KRET, and Rostec itself are all part of the bigger corporate brand portfolio.Technology
Russia’s participation in the BRICS organization is a key to its long-term foreign policy. The future of the alliance lies in mutual technological cooperation, which will create innovative products and solutions, and allow the BRICS countries to reduce their dependence on the West.Technology
AvtoVAZ president Bo Andersson does not want to prevent foreign companies from entering the Russian automotive market, but he believes that the government should support local automakers. His main goal is to change the perception of Lada branded products, both among buyers and his own employeesBusiness
Novikombank serves the largest and most strategic Russian companies – those in the defense, mechanical engineering, automotive, and high technology industries. Novikombank President Ilya Gubin talks about what is needed to successfully implement import substitution in Russia.Business
Despite empirical difficulties and challenging circumstances affecting the global markets, the Russian aircraft industry has managed to achieve lift-off. Thanks to the United Aircraft Corporation (UAC), the manufacture of a new family of civil aircraft has been launched in Russia.Business
The BRICS countries are among the key stakeholders in the pulp and paper industry. Here they have found an environment conducive to both sourcing raw materials and selling finished goods. International Paper is a global leader in the paper and packaging industry, which operates in four out of the five BRICS countries. Ksenia Sosnina, President of International Paper in Russia, talks about some of the specific aspects of International Paper’s business in Russia and other BRICS nations.Business
Neglect of remote rural areas is a major cause of poverty and hunger. As we consider the challenges of the future, including how to establish stable food supplies, reduce risk and build resilience, we must be careful not to neglect rural areas and the people who live there. They are a crucial part of the solution.