Summary of China’s Disruptors

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  • Innovative
  • Eye Opening
  • Background


China earned a reputation as a low-wage, low-skill economy. That stereotype might endure, but is no longer accurate, argues strategy consultant Edward Tse. In this revealing look at China’s fast-changing business climate, he describes an entrepreneurial ecosystem that moved beyond copying American rivals to accomplishing bona fide innovation. Chief among the success stories is Alibaba, which boasts hundreds of millions of customers, sent eBay packing and successfully diversified into financial services, big data and cloud computing. Tse delves into the strategies of such companies as mobile messaging provider Tencent, online grocer Yihaodian, and smartphone maker Xiaomi. His well-reasoned conclusion: Rules that apply elsewhere don’t necessarily work in China. getAbstract recommends this analysis of innovative Chinese corporations to investors and managers seeking a fresh look at this dynamic economy.

About the Author

Founder and chief executive of Gao Feng Advisory Co., Edward Tse is a consultant who helps companies develop and apply their strategies.



Innovative Entrepreneurs

As China’s economy expanded rapidly, US economists and politicians criticized it sharply for violating a variety of free-market orthodoxies. Among the gripes: China manipulates its currency to keep the yuan low. The state subsidizes manufacturers. China steals intellectual property and deploys its wealth to snap up commodities and industries in Africa and Latin America.

China has defied all predictions of its demise. Analyst Gordon Chang’s forecast of failure, The Coming Collapse of China, was published in 2001, and the meltdown has yet to arrive. The national government dominates China’s economy, but to dismiss Chinese business activity as one giant bureaucracy would be a mistake. The Alibaba Group, Tencent, Baidu and Huawei are among the disruptive Chinese companies now reshaping global commerce.

Public or Private?

Until 1976, when Mao Zedong died, China had no private enterprise. It first officially recognized private business in 1988. China continues to have many effectively private, “red hat” businesses that register as collectives or state-owned enterprises.

In one prominent example, Haier is a large...

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    V. M. 2 years ago
    Chinese lads do not swing, they are not afraid to experiment, and I think they to some extent copy the Japanese at the beginning of their development of the economy
    • Avatar
      chenxin zhang 1 year ago
      If you have been to China, you will know how stupid your passage is.