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How to Cope With the New Challenges of International Management

Jan 02-2025   



*This article is based on the speech given by Liu Debing, Senior Expert of JP Morgan International and former Chairman of China General Consulting & Investment Co.

 

My Internationalization Journey: from Fearlessness to Reverence

At the early stage of reform and opening up, there was a huge gap between China and the world in many aspects. At that time, international trade mainly consisted of the import and export of raw materials, and it was mainly book trade with the Soviet Union and Eastern Europe in a simple way. With the deepening of reform and opening up, the field of foreign economic and trade cooperation is rapidly expanding, and many internationally accepted forms of cooperation have been introduced into the country. These complex technology introductions, operation of major equipment projects, joint ventures with foreign companies and operation of overseas projects require knowledge and skills in politics, economics, diplomacy, science and technology, finance, law, culture, society, ecology and environmental protection and other aspects. I am aware that there is no end to learning, and that I must study carefully and practice hard to adapt to the complex needs of domestic and overseas operations.

 

New Stage of Globalization with New Explicit and Implicit Barriers

At present, the business environment has entered the VUCA era, and the major changes that have not occurred in a century are accelerating, with geopolitics, competition among major countries, new forms of industry and trade brought about by high technology, as well as environmental climate change, etc., bringing many challenges and opportunities that require serious attention.

To curb China's development, the US and Western countries have abandoned the concept of 'globalization' and want to exclude China from international business cooperation. In addition to tariff barriers, they have also activated non-tariff barriers and used domestic laws such as the Foreign Corrupt Practices Act (FCPA) to impose long-arm jurisdiction on companies from other countries. All indications suggest that the blockades, embargoes, restrictions and oppression of China by the US and Western countries will continue.

 

New Technologies and New Markets also Give Rise to New Paradigms

The fourth industrial revolution has been launched, new technologies continue to emerge, bringing new business paradigms, the corresponding standards and rules will also appear, a single trade paradigm will be replaced by the integration of the new paradigm.

The future international market is an integrated 'Comprehensive Service Solution' (CSS) mode of operation involving a variety of aspects. Energy consumption, ecological and environmental requirements will be higher, Corporate Social Responsibility (CSR), Environmental Social and Governance (ESG) will be in the whole project operation. With the accelerated progress of connectivity, Free Trade Area (FTA) and cooperative industrial parks will be the trend of the future. This will motivate us to keep learning and practicing.

 

Chinese Companies Are Going Overseas: One Must Be Strong to Forge Iron

Although there are objective and external reasons for Chinese companies to make mistakes in overseas operations, we should find out the reasons ourselves. The reasons include: lack of basic quality for overseas operation; unfamiliarity with the culture and customs of the place of departure and international rules; adopting snake-eat-elephant tactics; misjudging the nature of the investment which leads to loss of assets; bringing domestic irregularities abroad; little communication and integration between the overseas offices and the local community; malicious intent among companies; and lack of good relations with the local community.

Companies should not be afraid of the difficulties of going abroad. Instead, they should learn from competitors, benchmark themselves against world-class companies, and improve their international management capabilities, including project operations, stakeholder communication, and cultural adaptation. We hope that through learning and practice, we can enhance and create value, realize the value of life, and brave the wind and waves in overseas operations.

How to Cope With the New Challenges of International Management

Jan 02-2025   



*This article is based on the speech given by Liu Debing, Senior Expert of JP Morgan International and former Chairman of China General Consulting & Investment Co.

 

My Internationalization Journey: from Fearlessness to Reverence

At the early stage of reform and opening up, there was a huge gap between China and the world in many aspects. At that time, international trade mainly consisted of the import and export of raw materials, and it was mainly book trade with the Soviet Union and Eastern Europe in a simple way. With the deepening of reform and opening up, the field of foreign economic and trade cooperation is rapidly expanding, and many internationally accepted forms of cooperation have been introduced into the country. These complex technology introductions, operation of major equipment projects, joint ventures with foreign companies and operation of overseas projects require knowledge and skills in politics, economics, diplomacy, science and technology, finance, law, culture, society, ecology and environmental protection and other aspects. I am aware that there is no end to learning, and that I must study carefully and practice hard to adapt to the complex needs of domestic and overseas operations.

 

New Stage of Globalization with New Explicit and Implicit Barriers

At present, the business environment has entered the VUCA era, and the major changes that have not occurred in a century are accelerating, with geopolitics, competition among major countries, new forms of industry and trade brought about by high technology, as well as environmental climate change, etc., bringing many challenges and opportunities that require serious attention.

To curb China's development, the US and Western countries have abandoned the concept of 'globalization' and want to exclude China from international business cooperation. In addition to tariff barriers, they have also activated non-tariff barriers and used domestic laws such as the Foreign Corrupt Practices Act (FCPA) to impose long-arm jurisdiction on companies from other countries. All indications suggest that the blockades, embargoes, restrictions and oppression of China by the US and Western countries will continue.

 

New Technologies and New Markets also Give Rise to New Paradigms

The fourth industrial revolution has been launched, new technologies continue to emerge, bringing new business paradigms, the corresponding standards and rules will also appear, a single trade paradigm will be replaced by the integration of the new paradigm.

The future international market is an integrated 'Comprehensive Service Solution' (CSS) mode of operation involving a variety of aspects. Energy consumption, ecological and environmental requirements will be higher, Corporate Social Responsibility (CSR), Environmental Social and Governance (ESG) will be in the whole project operation. With the accelerated progress of connectivity, Free Trade Area (FTA) and cooperative industrial parks will be the trend of the future. This will motivate us to keep learning and practicing.

 

Chinese Companies Are Going Overseas: One Must Be Strong to Forge Iron

Although there are objective and external reasons for Chinese companies to make mistakes in overseas operations, we should find out the reasons ourselves. The reasons include: lack of basic quality for overseas operation; unfamiliarity with the culture and customs of the place of departure and international rules; adopting snake-eat-elephant tactics; misjudging the nature of the investment which leads to loss of assets; bringing domestic irregularities abroad; little communication and integration between the overseas offices and the local community; malicious intent among companies; and lack of good relations with the local community.

Companies should not be afraid of the difficulties of going abroad. Instead, they should learn from competitors, benchmark themselves against world-class companies, and improve their international management capabilities, including project operations, stakeholder communication, and cultural adaptation. We hope that through learning and practice, we can enhance and create value, realize the value of life, and brave the wind and waves in overseas operations.