China Daily | China’s Three-Layered Duality Continues to Evolve

By Edward Tse | China Daily Africa | Updated: 2018-10-12

Working paradigm of nation’s economy has enabled robust momentum in driving progress and generating significant resilience

On Sept 27, during a visit to Liaoyang in Northeast China’s Liaoning province, President Xi Jinping stressed that China’s State-owned enterprises should continue to grow and develop. He added that the principle of having the Communist Party of China guiding the SOEs must be consistently followed.

On another occasion on the same trip, Xi stressed that, since the start of market reform and liberalization, the CPC Central Committee has always been supportive and protective of privately owned enterprises. China’s basic economic system must unwaveringly consolidate and develop the public sector, and unwaveringly encourage, support, guide and protect the development of the nonpublic sector, he said.

Are these stances regarding SOEs and privately owned enterprises contradictory to each other? How should we interpret the dual support by Xi for both types of enterprises?

The past 40 years of reform and liberalization have brought incredible changes and progress to China, turning the image of the country upside down, from a planned economy to one of the world’s most dynamic business landscapes.

Along the way, China has evolved its own development path, without consciously knowing it. At the top, the central government’s guiding hand sets goals and directions for the country, giving the rest of the country clear targets to follow. At the grassroots level, private-sector entrepreneurs have re-emerged and become a major force in driving not only the growth of China but also of the global economy. In the middle, China’s local governments, in response to the central government’s direction and strategy, channel their resources and focus on areas of national and local priorities. The local governments often collaborate closely with entrepreneurs who bring innovative ideas to bear. Local governments compete with each other as well as cooperate to form regional clusters. A good example is the Greater Bay Area, which consists of nine cities in Guangdong province, including Shenzhen and Guangzhou, as well as the special administrative regions of Hong Kong and Macao.

This three-layer working paradigm, while evolving, has enabled robust momentum in driving progress forward and generating significant resilience. Between 1978 and 2016, China’s annual GDP growth averaged 9.7 percent, faster than the growth of any other country over the same period and almost quadrupling that of the United States.

The symbiosis of SOEs and privately owned enterprises, in China’s dual economy structure, is a defining feature. SOEs take initiatives on the country’s mission-critical projects such as major infrastructure, utilities, natural resources, military and defense. Within a decade, for example, China was able to build the world’s most extensive high-speed railway network from virtually nothing, thanks to its SOEs – a feat that would probably not have been possible if left to the private sector. On the other hand, privately owned enterprises are great at market-driven innovations, often enabled by technology that addresses society’s pain points. While SOEs in many cases enjoy greater advantages in terms of policy privileges, resources and capital, and licensing rights, privately owned enterprises embody more speedy organizations, higher business innovation potential and more sensibility and adaptability to market changes.

Though the dual economic structure encounters occasional glitches with inherent conflicts at times – on many occasions, pundits asserted “guo jin min tui”, meaning “the state advances while the private sector retreats”, while other pundits asserted the opposite – the two sides of the economy for the most part complement each other, often without knowing it, as each takes on its respective role.

China’s entrepreneurs have evolved in generations. In the late 1970s, at the end of the “cultural revolution” (1966-76), the underdevelopment of the Chinese economy spurred a new sense of purpose among China’s newly emerged entrepreneurs – the desire to strive for success and to show the world that they, too, could succeed. Even today, this notion of “Why not me?” is still the key motivator that drives the Chinese entrepreneurial spirit.

Source: Internet

Today, younger generations of entrepreneurs continue to inject vigor into the country, and they are also more geographically diverse. China Youth Daily reported in 2016 that the age of first-time young entrepreneurs in China averaged around 25; another study found that although startups generally prefer top-tier cities, they are also reaching lower-tier cities such as Xi’an and Qingdao.

An earlier article in South China Morning Post said that the scale and influence of China’s private economy can be recapitulated by “56789” – contributing 50 percent of tax revenue, 60 percent of gross domestic product, 70 percent of industrial upgrades and innovation, 80 percent of total employment and 90 percent of the total number of enterprises.

With President Xi’s declared goal of creating an innovation nation by 2030, we will expect more innovations to come from China. The country is now already the second-largest spender on research and development and accounts for 21 percent of the world’s total, according to the US National Science Foundation. The World Intellectual Property Organization reported that China contributed to 98 percent of global growth in patent filings, more than the combined total of the US, Japan, South Korea and Europe.

The Chinese are fully embracing new and emerging technologies like artificial intelligence, the internet of things, blockchain and 5G to further enable innovations. The three-layers paradigm continues to manifest itself. Governments at central and local levels alike, as well as the private sector, are investing significantly in revolutionary fields. These technological breakthroughs will enable a higher level of automation, connectivity and intelligence, and will enable more game-changing business models.

Source: Internet

Recent research from Tsinghua University found that two-thirds of global investment in AI is going to China, enabling a 67 percent growth in the industry in just the past year. A report by ABI Research says that Chinese AI startups have already overtaken their US counterparts by raising nearly $5 billion (4.3 billion euros; £3.8 billion) in venture capital funding in 2017. In November, Shanghai announced a new plan outlining a road map toward becoming a major national AI hub.

Around 450 blockchain technology companies have been registered in China, according to the Ministry of Industry and Information Technology. The regulatory attitude toward blockchain has turned from skepticism to acceptance and now to support. Throughout this year, the Chinese government has funded multibillion-dollar initiatives to develop blockchain-based networks, with Hangzhou’s city government investing a total of $1.6 billion in the Global Blockchain Innovation Fund in April.

China will be in the front seat witnessing the turning point to the Fourth Industrial Revolution, characterized by cutting-edge technologies that are blurring the lines between the physical, digital and biological spheres, perhaps ahead of most of, but not all, other countries in the world. As the country continues to embrace multilateralism, naturally it will play an even larger and more responsible role in future global governance.

We expect China to step up further and take on more global leadership in an increasingly turbulent and uncertain world, and even more and disruptive innovations to come from China’s businesses through a unique, three-part duality construct.

The author is founder and CEO of Gao Feng Advisory Co, a global strategy and management consultancy with roots in China, and author of China’s Disruptors. The views do not necessarily reflect those of China Daily.

 

SCMP | Powering Ahead

By Edward Tse

Original published by South China Morning Post on October 8, 2018. All rights reserved.

The topic of the Fourth Industrial Revolution topped the agenda last month at the World Economic Forum “Summer Davos”, where over 2,000 top-level representatives from politics, business, social sectors and the arts gathered in the Chinese municipality of Tianjin.

China has been one of the leading countries in this imminent revolution, characterised by cutting-edge new technologies that are “blurring the queues between the physical, digital and biological spheres”, according to forum chairman Klaus Schwab. The Made in China 2025 initiative, for example, has set China’s vision to take on global leadership in advanced manufacturing and hi-tech industries.

China has rid itself of its “copycat” stigma and has emerged as a global innovation hub in business. In 2017, the internet and technology sector–ranging from ride-hailing to e-commerce, robotics and artificial intelligence–grew at 18 per cent, substantially outpacing the overall economy, which grew 6.9 per cent, according to Xinhua.

In a recent op-ed in The New York Times, journalist Thomas Friedman quoted internet and technology analyst Mary Seeker as saying, “Five years ago, China had only two of the world’s largest publicly traded tech companies, while the US had none. Today, China has nine of the top 20 and the US has 11. Twenty years ago, China had none.”

In a recent Forbes op-ed, financial writer John Mauldin pointed out that China is building the world’s largest innovation economy and that its Greater Bay Area, which comprises Hong Kong, Macau and nine cities in Guangdong, is like “Silicon Valley on steroids” due to its size, policy support and innovation competitiveness.

The Chinese are fully embracing new and emerging technologies like artificial intelligence, the internet of things and blockchain, as well as 5G, to further enable innovations. Governments at both central and local levels, as well as the private sector, are investing significantly in revolutionary fields. These technology breakthroughs will enable a higher level of automation, connectivity and intelligence, as well as more game-changing business models.

For example, in a drive for automated manufacturing, in 2016, China added a total of 87,000 industrial robots, just slightly shy of Europe and the United States combined, according to the International Federation of Robotics. Schwab characterises China’s initiative in advanced manufacturing as “a supply-side miracle, with long-term gains in efficiency and productivity”.

Two-thirds of the world’s investments in AI have been going into China and have enabled a 67 per cent growth in the industry just in the past year, according to recent research from Tsinghua University.

A report by ABI Research says that Chinese AI start-ups overtook their US counterparts by raising nearly US$5 billion in venture capital funding in 2017. The Chinese companies also filed the largest number of domestic AI-related patents, trumping Silicon Valley by as much as seven times, according to data from CB Insights. Last November, Shanghai Municipality announced a new plan outlining a road map towards becoming a major, national AI hub.

In China, new value chains for the use of blockchain in different industry sectors have emerged. Around 450 blockchain technology companies have been registered in China, according to the Ministry of Industry and Information Technology. The regulatory attitude has turned from scepticism to acceptance and now encouragement.

This year, the Chinese government has funded multibillion-dollar initiatives to develop blockchain-based networks, with Hangzhou city government investing a total of US$1.6 billion in the Global Blockchain Innovation Fund this April.

In the automotive sector, innovations in new energy vehicles are gaining speed, in addition to autonomous driving and “mobility as a service”, which aims to reshape how city-dwellers get around. Traditional carmakers, both foreign and local, are trying to reposition themselves as future new-energy vehicle makers, while competing or collaborating with dozens of new, non-state-owned players, such as Nio, which was recently listed on the New York Stock Exchange.

Source: SCMP

China will be in the front seat, witnessing the turning point into the Fourth Industrial Revolution, perhaps ahead of most, but not all, other countries. Innovation has become and will continue to be a global, prevailing theme, and a country’s future well-being hinges on its willingness and ability to embrace this trend.

Many foreign companies and their lobbyists have complained for a long time about the lack of market access in China and have demanded “reciprocity”. While they remain fixated on such issues, they have largely ignored the major shift in China’s innovations in the meantime, and have become bystanders.

The US-China trade war notwithstanding, China will emerge as a larger and more capable innovative economy. China’s pathways will inevitably involve many ups and downs, some experiments may not work out as planned and some resources will be wasted.

The lack of core technologies such as cutting-edge microchips have exposed China’s weakness but this has also given the Chinese the impetus to catch up. Many start-ups will fail, but a small percentage will make it. It would be foolhardily for anyone to discount China’s will and ability to achieve its goals.

Innovations will certainly create social challenges such as job dislocations, educationre – configurations and increased wealth disparity but they will also bring about advances to humanity and create major opportunities for companies and individuals who can anticipate the opportunities and figure out ways to capture them. Those who can’t, or won’t, run the risk of being marginalised or worse. It’s time to ask yourself: which side of history would you rather be on?

Edward Tse is founder & CEO, Gao Feng Advisory Company, a global strategy and management consulting firm with roots in China. A pioneer in China’s management consulting profession, he led the Greater China operations for two major international management consulting firms for 20 years and is widely known as China’s leading global business strategist. He is author of The China Strategy (2010) and China’s Disruptors (2015).

China Daily | US-China Trade Spat Harming 3rd Parties

By ANDREW MOODY | China Daily | Updated: 2018-10-03

‘Every country’ in supply chain will be affected’, expert says

The escalating trade dispute between China and the US is beginning to inflict economic damage on third-party countries, according to a new report.

An analysis by the Centre for Economics and Business Research, an economic consultancy in London, concludes that US President Donald Trump’s trade measures have already hit £1.9 billion ($2.48 billion) of UK exports this year.

The report is one of the first to highlight the global ramifications of the trade standoff between the US and China.

“British goods — directly and through global value chains — consumer confidence and financial markets are particularly exposed to the escalation of protectionism across the globe,” Josie Dent, a member of CEBR’s economics team, wrote in the report, which she authored.

Edward Tse, chief executive officer and founder of the management consultancy Gao Feng Advisory, said on Tuesday that the CEBR report makes clear that the trade dispute’s impact will be felt across the globe.

“This has to be expected. Supply chains have become so globalized and China is so much the center of world manufacturing, particularly in areas like consumer electronics, that every country that is in this chain will be affected,” he said.

“This is not just the UK, but South Korea, Japan, Malaysia and so on. The whole world is brought in by this.”

The report by the CEBR, which is headed by its founder Douglas McWilliams, a former chief economist of the Confederation of British Industry, the UK industry body, said UK exports have been particularly damaged by the tariffs imposed on China because the United Kingdom is an integral part of the world’s second-largest economy’s supply chain.

On Sept 24, Trump enacted tariffs on $200 billion worth of Chinese imports on top of the $50 billion he had already imposed.

Beijing immediately responded, slapping tariffs on 5,207 categories of US products worth $60 billion.

The report said that the tariffs on Chinese goods alone have damaged about half of the £3 billion of Chinese exports to the US that are originally sourced from the UK.

In addition, the US tariffs imposed on European Union steel and aluminum exports in May have adversely affected £389 million of UK exports, leading to a total impact on £1.9 billion of exported goods.

Dent said on Monday that because of the nature of global supply chains, the tariffs China placed on US goods have had a bigger impact than those imposed directly on the EU, of which the UK is a member.

“A far greater impact on the UK comes through the escalating US-China trade war,” she said.

Dent, who has done extensive research into global value chains, fears the situation can only deteriorate if Trump makes a further move.

“In the most recent round of the dispute, Trump warned that if China retaliated, then nearly all goods exported from China to the US could face additional duties. As China did indeed retaliate, the ball is back in Trump’s court,” she said.

Wang Huiyao, president and founder of the Center for China and Globalization, the leading Beijing-based independent think tank and a counselor to the State Council, China’s Cabinet, said on Tuesday that the eventual effect of the trade measures will be felt globally.

“It certainly won’t just affect the UK, but many European countries and others too. I don’t think people fully understand the complexity of this. If you take a company like Siemens, which makes SUV vehicles in the US, it will be impacted by tariffs both ways. Its exports to China will be hit, but also the components it sources from China.”

Wang has just returned from the US presenting the Center for China and Globalization’s own report, China-US Trade Relations and Challenges, at 20 events across the country.

“As the world’s two largest economies, the US and China collectively account for almost half of global GDP, underwriting global prosperity. A trade war between the two will inevitably lead to a lose-lose outcome, harming not only both countries, but also the global economy at large,” that report concluded.

Dent said that automakers in the UK are likely to be the worst hit by a trade war.

Daimler has already announced that the tariffs on cars exported from the US to China contributed to its profits falling from €2.5 billion ($2.9 billion) in the second quarter of 2017 to €1.8 billion in the same period this year.

“The global nature of car production often means that components cross many borders before the final car is assembled. If each element faces a tariff at border crossings, costs will accumulate along supply chains,” she said.

Dent said this could be particularly damaging to the UK economy since the auto industry made up 12 percent of exported UK goods.

“The UK car manufacturers will feel the impact of the trade war strongly, and the fall in profitability will hit the UK economy.”

Dent said the trade dispute has already hit UK export growth, which has fallen from 14.2 percent year-on-year in the second quarter last year to 1.9 percent now.

She said it has already also affected consumer confidence — the YouGov/Cebr UK consumer confidence index already fell notably when Trump announced his steel and aluminum tariffs — and she expects it to have a damaging effect on equity markets.

“(The recent escalation) was already priced in by market players, though further escalations of the trade war are likely to have a negative impact (on stock markets),” she said.

 

China at Front Seat of the Fourth Industrial Revolution

In his 2017 book, The Fourth Industrial Revolution, Professor Klaus Schwab, chairman of World Economic Forum (WEF) wrote of an upcoming era characterized by “a range of new technologies that are fusing the physical, digital and biological worlds, impacting all disciplines, economies and industries.” It would, according to him, shift and disrupt the means that we live in this time of great promise and peril.

Source: Google

One year later on, at WEF’s ‘Summer Davos’, over 2000 top-level representatives from political, business, social sectors and the arts gathered in the Chinese municipality Tianjin. Topping the agenda were emerging and new technologies underlying the Fourth Industrial Revolution such as artificial intelligence (AI), the Internet of Things (IoT), gene editing and robotics, as well as how countries should collaborate and ensure these technologies will bring about a human-centered, sustainable and inclusive future. The Forum also highlighted China’s rapid developments in the upcoming revolution. In recent years, China has accelerated its progress towards technological leadership through a series of initiatives, including the Made in China 2025 that aims at closing the gap with Western hi-tech prowess in 10 areas.

High-tech and innovations may not come up as the most intuitive or relevant topics to China, since China has been branded as a “copycat” for decades. Western media and other pundits paint a picture that China’s industrial regulations represent forced technology transfer, confer unfair advantages on domestic companies, penalize foreign participants and cheat on the country’s commitments to the World Trade Organization.

However, particularly in the past 10 years, China has gradually moved away from its “copycat” image and emerged as a global innovation hub. Grass-root innovations have proliferated. In 2017, the growth in the internet and technology sector – ranging from ride-hailing to e-commerce, robotics and AI was 18 percent, substantially outpacing the overall economy which grew 6.9 percent, according to Xinhua. In the same year, a report by Deloitte and China Venture says that China accounts for more than a third of the total number of “unicorns” globally, becoming the world’s second-largest birthplace of companies valuing above US$1 billion. Internet giants like Alibaba and Tencent, benefiting from the scale and speed of China’s market as well as the prevalence of technology, are able to rapidly scale up and have created extensive sophisticated and lucrative business ecosystems. Today, this pair is within two of the world’s top ten most valuable companies, according to Kantar and WPP’s 2018 BrandZ™ Top 100 Most Valuable Global Brands.

ource: Google

With plans and programs in mind, China upped the ante in nascent technologies that are just around the corner and that would, if properly captured, enable yet another age of growth and opportunities.

In 2016, in a drive for automated manufacturing, China added a total of 87,000 industrial robots, just slightly shy of the combined total for Europe and the US, according to the International Federation of Robotics. Schwab characterizes China’s initiative in advanced manufacturing as “a supply-side miracle, with long-term gains in efficiency and productivity.”

China aims to become the global AI powerhouse by 2030 with a domestic AI industry that will be worth about US$150 billion. The Ministry of Industry and Information Technology released last December a three-year action plan that calls for “major breakthroughs in a series of landmark AI products”, focusing on such “core competencies” as the production of intelligent sensors and neural network chips. The plan is paralleled by governments on all levels, most notably of which are Beijing, Shanghai and Zhejiang.

Source: Google

Domestic technology giants and startups alike will be the integral players in this endeavor. For example, Baidu, Alibaba, Tencent and iFlytek formed the “national AI squad”, respectively backing the development for autonomous vehicles, cloud-empowered smart cities, medical imaging and voice recognition. Up till now, two-thirds of the world’s investments in this sector have been going into China and have enabled a 67% percent growth in the industry solely in the past year, according to recent research from Tsinghua University. Chinese companies also filed the largest number of domestic AI-related patents, trumping Silicon Valley by as much as seven times, according to data from CB Insights.

In China, new value chains for the use of blockchain in different industry sectors have emerged. Around 450 blockchain technology companies have been registered in China, according to the Chinese Ministry of Industry and Information Technology. The regulatory attitude towards blockchain turned from skepticism to acceptance and now to support. Throughout 2018, the Chinese government has funded multi-billion-dollar initiatives to develop blockchain-based networks, with Hangzhou city government investing a total US$1.6 billion in the Global Blockchain Innovation Fund this April.

In the automotive sector, China is poised to be at the world’s forefront in going through a four-phased evolution – from car ownership, on-demand mobility, then smart car ownership and lastly personalized “automobility” happening as early as 2030 or thereabouts. Traditional carmakers, foreign and local, are trying to reposition themselves as future electric vehicle makers, while collaborating and competing with more than a dozen of newer, non-state-owned NEV players such as NIO, which went public in the New York Stock Exchange recently. Caocao Zhuanche was launched by Chinese automaker Zhejiang Geely Holding Group in 2015 as the country’s first all-electric vehicle ride hailing company. In July, carmakers Dong Feng Motors, FAW Group and Chang’an Automobile launched T3 Mobile Travel Services as a new ride-sharing platform, indicating they will seek other partners to push into driverless cars.

While promising higher levels of automation, connectivity, intelligence and more game-changing business models, these new technologies also pose critical questions as to how governments and entrepreneurs should properly leverage them and minimize societal externalities. Corporates shall think critically about socially responsible business models going forward, and governments will need to rebalance the gives and takes among growth, security, privacy and citizen wellbeing.

China will be in the front seat witnessing the turning point into the Fourth Industrial Revolution, perhaps ahead of most of, but not all other countries in the world. Many foreign companies and their lobbyists have complained for long about the lack of market access in China and have demanded “reciprocity”. While they remain fixated on such issues, they have largely ignored the major shift in China’s innovations in the meantime and have become as bystanders on the sidelines. Innovation has become, and will continue to be, a global, prevailing theme, and a country’s future well-being hinges upon its willingness and ability to embrace this trend.

Source: Google

The US – China trade dispute notwithstanding, China will emerge as a larger and a more capable innovative economy. China’s pathways will inevitably involve many ups-and downs, and some of the experiments may not work out as planned and some resources will be wasted. The lack of core technologies such as cutting-edge microchips have exposed China’s weakness but this has also given impetus for the Chinese to catch up. Many start-ups would fail, but a small percentage will make it. It would be fool-hardily for anyone to discount China’s will and ability to achieve its goals.

Innovations will certainly create social challenges such as job dislocations, education re-configurations, and increased wealth disparity but it will also bring about advances to humanity and create major opportunities for companies and individuals who can anticipate the opportunities ahead of time and can figure out ways to capture them. For those who can’t or won’t, they run the risk of being marginalized or even disrupted away. It’s time to ask yourself, which side of history would you rather be on?

Dr. Edward Tse is founder and CEO of Gao Feng Advisory Company. A pioneer in China’s management consulting industry, Dr. Tse built and ran the Greater China operations of two leading international management consulting firms for a period of 20 years. He has consulted to hundreds of companies – both headquartered in and outside of China – on all critical aspects of business in China and China for the world. He also consulted to the Chinese government on strategies, state-owned enterprise reform and Chinese companies going overseas. He is the author of over 200 articles and four books including both award-winning The China Strategy (2010) and China’s Disruptors (2015) (Chinese version «创业家精神»).

新浪财经 | 企业的觉悟

文| 谢祖墀

有智慧的企业领导者应该是缔造、维护和逆转企业命运的人。他们的关键工作就是要带领团队进行修炼和不断自我反省,由外向内地进行系统化的调整,并将企业的意识不断提升。最终,在某临界点上,企业的觉悟便会自然发生

今年8月24日,滴滴顺风车司机奸杀案成为国内各大新闻媒体的头条。而此案件的发生,距离前不久震惊全国的空姐滴滴遇害案只有三个月,滴滴在“空姐遇害案”后就曾经发布了对其顺风车整改的一些相应措施。

此次案件发酵后,滴滴再次进行了整改,宣布自8月27日起下线其顺风车业务。而后9月7日,滴滴出行CEO程维在一封内部信中表示:“滴滴绝不是一家黑心企业,也绝不是一家赚钱高于一切的企业。”

这些话都是遇害事件发生之后才讲的,而问题在于,为什么滴滴不在事情发生之前就采取足够的措施防范这些风险?而此类事件也非第一次发生在滴滴顺风车上,滴滴也非第一次公开道歉,为什么之前的承诺不但没有实现,反而让此类案件重复地出现?

在我看来,其实这一切都是由于企业在觉悟上的不足所致。

其实出了这种问题,并不是滴滴一家企业的问题。先不说那些作假的企业,诸如长春长生、三鹿奶粉等。不少看似正常的企业,也往往会在某些节点上出了问题,比如百度、乐视等。

我以前曾讲过,企业是有意识的。和人类一样,企业也具有其显意识和潜意识。显意识是“看得见,摸得着”的,而潜意识则是根植于企业的深处,“看不见,摸不着”的意识。在日常运作中,企业绝大部分的行为都是在不知不觉之间,由潜意识推动,尽管这些行为在企业的显意识之中没有什么特别大的问题,一切都看似正常。而其余那些必须由显意识引导的过程、系统等“看得见,摸得着”的方法和工具来调控企业行为,但这往往只是企业行为调控中极小的一部分。

在很多时候,企业的潜意识往往会在不知不觉之中将企业推到某个边缘,可能是巅峰,亦可能是深渊,而企业和企业的领导者却往往都不会在第一时间内意识到。这种情况在快速发展的“指数型”企业之中更为常见。在管理层和企业背后的资本一意孤行地追求企业发展的速度和规模之余,尽管他们的显意识并不一定是要企业作恶,但潜意识却往往会将企业在那“旋转的游戏”(circle game)中越转越大,而他们自己都还不知道。

一家企业创立的初衷是什么?一家企业生存的意义和原因是什么?一家企业应该追求什么?一家企业的领导人应不断地问自己这些问题。假如一家企业只是盲目、单独地追求经济上的绝对回报,或者最大化估值的话,我可以说这些企业已经迷失了自己。

我并不是说所有的企业都要以济世为怀,并无偿地为社会工作。但企业所影响的并不仅仅是大多数人通常所讲的顾客、员工和股东而已。“顾客-员工-股东”这个圈是企业的“物理边界”,是距离企业最近的能够影响的圈子。在这圈子的外部,还有其它很多多数企业所忽视了的问题。

许多企业,特别是那些规模较大、和社会接触较频繁的企业,它们在社会上的影响力往往远远超过此狭义的物理边界。在物理边界之外它们亦会影响到各个社会阶层。以滴滴为例,它在中国乃至海外的品牌影响力,已经超越了一家普通的互联网公司,它已经成为中国社会的核心组成部分之一。坐拥5.5亿的注册用户和3000多万名司机,在全国400余座城市中运营,滴滴已经与当地政府构成了不可分割的命运共同体。诸如滴滴这种类型的公司,有着庞大的责任和义务去履行模范企业公民的角色,而经济上的回报只应是它追求的一部分而已。

企业背后的资本是这其中的一大推手,在追求“金钱的速度”(speed of money)之时,他们亦需反省他们存在的价值根本是什么?

因此,滴滴要改进的远远不只是顾客的安全问题。改善和确保顾客安全当然是最基本的工作,但这却只是弥补了操作上的缺陷而已,并不能从根本上改变一个企业的潜意识。对滴滴而言,最重要的是在提升企业整体的意识,让所有(或者至少大多数)的行为和决策都能在有清楚的意识下进行,而不是被不知所措的潜意识所牵引,坠入迷惘而不知觉。

做到这一点并不仅仅是遵循所谓“企业的价值观”的问题而已。“价值观”这一概念在企业里已经有点被滥用和被“庸俗化”。狭义的价值观是不足够从根本上解决企业意识的问题的。

那么企业领导者的工作是什么?他们不单是许多人所说的企业的愿景、战略等的领导力的缔造者。企业领导人最主要的工作就是让企业的意识不断地提高,和通过清晰的意识去让整个企业都明白什么应做,什么不应做。同时亦带领企业知道企业发展最恰当的速度和节奏是什么,什么时候应该快,什么时候应该慢。就像美国著名心理学家、诺贝尔经济学家获得者丹尼尔·卡尼曼(Daniel Kahneman)在他所著的《思考,快与慢》(Thinking, Fast and Slow)一书里所提出:“进行判断和做出决策需要快思考和慢思考的结合”。领导者要知道节奏和分寸在哪里,追求速度无可厚非,但亦不能永远盲目地全速进行,结果欲速而不达。有时候放慢一点,并非坏事。

有智慧的企业领导者其实应该是缔造、维护和逆转企业命运的人。他们的关键工作就是要带领团队进行修炼和不断自我反省,由外向内地进行系统化的调整,并将企业的意识不断提升。最终,在某临界点上,企业的觉悟便会自然发生。

原文发表于《亚布力观点》(2018年9月刊)并保留所有权利

(注:本文图片均来自网络)

关于作者:
谢祖墀博士(Dr. Edward Tse)是高风管理咨询公司(Gao Feng Advisory Company)的创始人兼首席执行官。中国管理咨询业的先行者。过去的20年里,他创立并领导了两大国际管理咨询公司在大中华区的业务。外界评价他为“中国的全球领先商业战略家”和 “谢博士之于中国企业界就如大前研一之于日本企业界”。他曾为数以百计的公司(总部设在中国及其它地区)咨询过所有关键战略和管理方面的业务,涉及中国的各个方面和中国在全球的地位。他还为中国政府在战略、国有企业改革和中国企业走出国门等方面做过咨询。他已发表200多篇文章并出版了4本书,其中包括于国际获奖的《中国战略》和《创业家精神》。谢博士获得了加州大学伯克利分校工程学博士、MBA以及麻省理工学院的工程学学士、硕士。

 

Newer Startups will Address Safety Worries if Didi Doesn’t

By Edward Tse and Bill Russo
September 18, 2018 16:21 JST

After passenger deaths, Chinese ride service has to show it is not ‘evil’

Didi Chuxing Technology, China’s dominant ride-hailing service, pledged this month to invest 140 million yuan ($20.39 million) to improve safety and customer service.

In May, Didi had also vowed to put through a range of safety enhancements. Those promises followed the rape and killing of a flight attendant in the central city of Zhengzhou, allegedly by the driver she had been matched with by Didi’s Hitch carpooling service.

Yet the company did not move quickly on those safety measures. On Aug. 24, a 16-year-old Hitch user was also allegedly raped and killed by her driver in the northeastern port city of Yantai.

The two deaths have sparked a crisis for Didi and exposed underlying issues with China’s new breed of fast-growing, entrepreneurial companies. Despite suspending Hitch and dismissing two senior executives, the ride service faces a public furor and boycott calls on social media. This could cloud its hopes to hold an initial public stock offering by the end of the year.

Until now, Didi’s primary focus has been on growth. By 2016, it had achieved a market share of more than 95% after merging with Tencent Holdings-backed Kuaidi Dache and taking over the China operations of Uber Technologies.

Didi’s consequent near-monopoly produced higher prices and gave it little incentive to keep up its previous pace of innovation. In a survey last year by web portal Sina, 82% of respondents said that hailing a ride had become more difficult over the previous year and 87% said it was costlier than ever before.

Didi nevertheless continued to grow. Recently, it expanded into Australia and Latin America. Besides Tencent and early backer Alibaba Group Holding, Didi has picked up investments along the way from Apple, Singapore state investment fund Temasek and Japan’s SoftBank Group , with the ride-services group’s valuation last year reaching $56 billion.

With the focus on growth, top Didi executives may have missed red flags they should have seen.

The value proposition of Hitch was problematic from inception. The company’s marketing campaigns implied Hitch could be used to find a romantic partner. A platform function enabled drivers to label passengers to one another using sexually suggestive terms, unbeknownst to the customers.

Didi’s current crisis has opened up the opportunity for competitors who can promise safer, more secure ride services. In general, Didi’s customers have been willing to pay a bit of a premium to upgrade from public transportation to the personal space of a private car service. Many of these users are likely to be willing to pay a little more for additional peace of mind.

Source: Google

The mobility service landscape in China is poised to evolve in a more sophisticated manner and open up further for new entrants. In a market of nearly 800 million urban residents, the vast majority of whom do not own a motor vehicle, demand for such services has grown exponentially and they have become an indispensable tool.

Traditional Chinese carmakers, whose main focus has been on manufacturing and product engineering capabilities, have started to realize that digital ecosystem players have significant competitive advantage in the mobility services. Consequently, they are becoming more experimental to retain relevancy.

Caocao Zhuanche, one of the services that has been growing in Didi’s shadow, was launched by Chinese automaker Zhejiang Geely Holding Group in 2015 as the country’s first all-electric vehicle ride hailing company.

Valued earlier this year at $1.6 billion, Caocao now operates in 17 cities and fills roughly 150,000 orders a day. As of January, it ranked seventh among Chinese ride services in market share, according to figures from data company Jiguang. Caocao’s primary vehicles are Geely-made EVs.

A distinguishing feature of Caocao is the service’s training certification system. All drivers go through a standardized course, adapted from one used in London for nearly a century.

In a parallel initiative, Geely’s new premium Lynk & Co. automotive brand offers personalized car-sharing services to a younger target market. Through experiments like Lynk & Co. and Caocao, Geely is blurring the line between manufacturer and service provider and transforming into an “automobility solutions” provider.

Shouqi Group, a long-standing state-owned car rental and limousine company in Beijing, has expanded into app-based services as well. Its iZuche.com platform focuses on providing fleets of high-end vehicles for major business meetings and events. The company also operates ride-hailing platform Shouqi Yueche, and electric-vehicle time-sharing platform GoFun Chuxing.

Shouqi’s ride service platform has won financial backing from internet company Baidu as well as an arm of EV maker Nio. Traditional carmaker Chery Automobile meanwhile has acquired 10% of GoFun to build up its mobility service capabilities. Chery has also launched its own taxi hailing service, called Veni.

Source: Google

As with Caocao, Shouqi has realized the need to provide more safety assurance for passengers. GoFun, for example, is rolling out an artificial intelligence-driven system for real-time monitoring of rides.

Other traditional carmakers are collaborating to find ways to survive the changing market climate and strengthen their competitiveness in the nascent automobility sector. In July, carmakers Dongfeng Motor Group, FAW Group and Chang’an Automobile launched T3 Mobile Travel Services as a new ride-sharing platform, indicating they will seek other partners to push into driverless cars.

Though the business models of some of these new challengers may catch on if they can correctly anticipate how consumer mobility needs will evolve, Didi still retains an advantage based on its 450 million registered users.

With the exposure its corporate culture of accepting outsized risks, it is time for investors and managers to think critically about Didi’s business model going forward, just as those in Uber have been forced to do. Like Uber, Didi’s investors include a number of venture capital funds whose purpose is to quickly generate high financial returns. The incredible speed of money has distorted the priorities of Didi’s management.

Didi’s latest safety plan appears meaningful, however. A new system in trial makes audio recordings of each ride to provide a record in case of harassment allegations or disputes. An enhanced app feature connects riders immediately to police. The company has also enhanced its driver training and critical response programs.

It remains to be seen how much difference these measures will make. The real problem lies in the corporate culture and social responsibility of Didi. Didi has to demonstrate corporate leadership well beyond the narrowly defined realm of financials.

In a recent letter to Didi staff, Chief Executive Cheng Wei said, “Didi is not an evil company and we don’t put profit ahead of everything.” Let’s see if the company lives up to that.

About the authors
Dr. Edward Tse
Founder and CEO, Gao Feng Advisory Company
Dr. Edward Tse is founder and CEO of Gao Feng Advisory Company. A pioneer in China’s management consulting industry, Dr. Tse built and ran the Greater China operations of two leading international management consulting firms for a period of 20 years. He has consulted to hundreds of companies – both headquartered in and outside of China – on all critical aspects of business in China and China for the world. He also consulted to the Chinese government on strategies, state-owned enterprise reform and Chinese companies going overseas. He is the author of over 200 articles and four books including both award-winning The China Strategy (2010) and China’s Disruptors (2015) (Chinese version «创业家精神»).
Email: edward.tse@gaofengadv.com

Bill Russo
Managing Director and the Automotive Practice leader
Gao Feng Advisory Company
Bill Russo is Managing Director and the Automotive Practice leader at Gao Feng Advisory Company based in Shanghai. With 15 years as an Automotive executive, including over 14 years of experience in China and Asia, Mr. Russo has worked with numerous multi-national and local Chinese firms in the formulation and implementation of their global market and product strategies. He was previously Vice President of Chrysler North East Asia, where he managed the business operations for the Greater China and South Korea markets. Prior to this, Mr. Russo was Head of Product & Business Strategy for Chrysler. He also has nearly 12 years of experience in the electronics and IT industry, having worked at IBM Corporation as a manufacturing and systems engineer, and formerly served as Vice President of Corporate Development at Harman International.
Email: bill.russo@gaofengadv.com

China’s Three-Layered Duality Continues to Evolve 

Working paradigm of nation’s economy has enabled robust momentum in driving progress and generating significant resilience

On Sept 27, during a visit to Liaoyang in Northeast China’s Liaoning province, President Xi Jinping stressed that China’s State-owned enterprises should continue to grow and develop. He added that the principle of having the Communist Party of China guiding the SOEs must be consistently followed.

On another occasion on the same trip, Xi stressed that, since the start of market reform and liberalization, the CPC Central Committee has always been supportive and protective of privately owned enterprises. China’s basic economic system must unwaveringly consolidate and develop the public sector, and unwaveringly encourage, support, guide and protect the development of the nonpublic sector, he said.

Are these stances regarding SOEs and privately owned enterprises contradictory to each other? How should we interpret the dual support by Xi for both types of enterprises?

The past 40 years of reform and liberalization have brought incredible changes and progress to China, turning the image of the country upside down, from a planned economy to one of the world’s most dynamic business landscapes.

Along the way, China has evolved its own development path, without consciously knowing it. At the top, the central government’s guiding hand sets goals and directions for the country, giving the rest of the country clear targets to follow. At the grassroots level, private-sector entrepreneurs have re-emerged and become a major force in driving not only the growth of China but also of the global economy. In the middle, China’s local governments, in response to the central government’s direction and strategy, channel their resources and focus on areas of national and local priorities. The local governments often collaborate closely with entrepreneurs who bring innovative ideas to bear. Local governments compete with each other as well as cooperate to form regional clusters. A good example is the Greater Bay Area, which consists of nine cities in Guangdong province, including Shenzhen and Guangzhou, as well as the special administrative regions of Hong Kong and Macao.

China’s three-layered duality continues to evolve

This three-layer working paradigm, while evolving, has enabled robust momentum in driving progress forward and generating significant resilience. Between 1978 and 2016, China’s annual GDP growth averaged 9.7 percent, faster than the growth of any other country over the same period and almost quadrupling that of the United States.

The symbiosis of SOEs and privately owned enterprises, in China’s dual economy structure, is a defining feature. SOEs take initiatives on the country’s mission-critical projects such as major infrastructure, utilities, natural resources, military and defense. Within a decade, for example, China was able to build the world’s most extensive high-speed railway network from virtually nothing, thanks to its SOEs – a feat that would probably not have been possible if left to the private sector. On the other hand, privately owned enterprises are great at market-driven innovations, often enabled by technology that addresses society’s pain points. While SOEs in many cases enjoy greater advantages in terms of policy privileges, resources and capital, and licensing rights, privately owned enterprises embody more speedy organizations, higher business innovation potential and more sensibility and adaptability to market changes.

Though the dual economic structure encounters occasional glitches with inherent conflicts at times – on many occasions, pundits asserted “guo jin min tui”, meaning “the state advances while the private sector retreats”, while other pundits asserted the opposite – the two sides of the economy for the most part complement each other, often without knowing it, as each takes on its respective role.

China’s entrepreneurs have evolved in generations. In the late 1970s, at the end of the “cultural revolution” (1966-76), the underdevelopment of the Chinese economy spurred a new sense of purpose among China’s newly emerged entrepreneurs – the desire to strive for success and to show the world that they, too, could succeed. Even today, this notion of “Why not me?” is still the key motivator that drives the Chinese entrepreneurial spirit.

Today, younger generations of entrepreneurs continue to inject vigor into the country, and they are also more geographically diverse. China Youth Daily reported in 2016 that the age of first-time young entrepreneurs in China averaged around 25; another study found that although startups generally prefer top-tier cities, they are also reaching lower-tier cities such as Xi’an and Qingdao.

An earlier article in South China Morning Post said that the scale and influence of China’s private economy can be recapitulated by “56789” – contributing 50 percent of tax revenue, 60 percent of gross domestic product, 70 percent of industrial upgrades and innovation, 80 percent of total employment and 90 percent of the total number of enterprises.

With President Xi’s declared goal of creating an innovation nation by 2030, we will expect more innovations to come from China. The country is now already the second-largest spender on research and development and accounts for 21 percent of the world’s total, according to the US National Science Foundation. The World Intellectual Property Organization reported that China contributed to 98 percent of global growth in patent filings, more than the combined total of the US, Japan, South Korea and Europe.

China’s three-layered duality continues to evolve

The Chinese are fully embracing new and emerging technologies like artificial intelligence, the internet of things, blockchain and 5G to further enable innovations. The three-layers paradigm continues to manifest itself. Governments at central and local levels alike, as well as the private sector, are investing significantly in revolutionary fields. These technological breakthroughs will enable a higher level of automation, connectivity and intelligence, and will enable more game-changing business models.

Recent research from Tsinghua University found that two-thirds of global investment in AI is going to China, enabling a 67 percent growth in the industry in just the past year. A report by ABI Research says that Chinese AI startups have already overtaken their US counterparts by raising nearly $5 billion (4.3 billion euros; £3.8 billion) in venture capital funding in 2017. In November, Shanghai announced a new plan outlining a road map toward becoming a major national AI hub.

Around 450 blockchain technology companies have been registered in China, according to the Ministry of Industry and Information Technology. The regulatory attitude toward blockchain has turned from skepticism to acceptance and now to support. Throughout this year, the Chinese government has funded multibillion-dollar initiatives to develop blockchain-based networks, with Hangzhou’s city government investing a total of $1.6 billion in the Global Blockchain Innovation Fund in April.

China will be in the front seat witnessing the turning point to the Fourth Industrial Revolution, characterized by cutting-edge technologies that are blurring the lines between the physical, digital and biological spheres, perhaps ahead of most of, but not all, other countries in the world. As the country continues to embrace multilateralism, naturally it will play an even larger and more responsible role in future global governance.

We expect China to step up further and take on more global leadership in an increasingly turbulent and uncertain world, and even more and disruptive innovations to come from China’s businesses through a unique, three-part duality construct.

The author is founder and CEO of Gao Feng Advisory Co, a global strategy and management consultancy with roots in China, and author of China’s Disruptors. The views do not necessarily reflect those of China Daily.

(China Daily Africa Weekly 10/12/2018 page8)

Foreign Companies Should Take Advantage of China’s Innovations

By Edward Tse and Bill Russo
17 Sep, 2018

Despite the simmering trade tensions, China announced on April 17th to scrap a two-decades-old limit on foreign ownership of automotive ventures by 2022. While unsettling some state-owned car manufacturers who worry about emerging competition, the plan unveils tremendous opportunities for foreign corporate investors to fully leverage the advantage of China’s market size and growth. Earlier in April, the country had also lifted ownership cap on banking and financial sectors.

President Xi Jinping described the measures as part of a “new phase of opening up” which has its roots back in the 1970s. For a long time, foreign multinational corporations (MNCs) complain about a lack of market access in China and ask for reciprocity. They argue that China’s regulatory and industrial policies confer unfair advantages on Chinese companies, represent forced technology transfer and penalize foreign companies. In reality, China has been liberalizing its sectors for non-state Chinese companies and foreign companies gradually over the past decades. Many previously closed sectors were opened, either entirely or partially. Though not every sector is now open, the trend and direction are pretty clear.

Is the golden era for MNCs in China over? Pundits take examples of companies such as Best Buy, Home Depot and PepsiCo, which have had to make “strategic retreat” from China’s market. PepsiCo, for instance, sold its bottling business in China in 2011 to the Taiwanese company Tingyi Holding, which has a broad distribution network across China.

Source: Internet

The answer lies in how foreign MNCs approach the China market. They tend to copy-and-paste their strategy approach that has worked, perhaps for decades, in their home markets, assuming that it must also work elsewhere in the world. However, coming out from a planned economy at the end of the 1970s, China is a highly complicated and fast-evolving environment. This market context makes the “cookie-cutter business model transfer” approach not always appropriate.

However, China’s environment is not entirely without patterns. Through years, China has found its own development model: at the top, the central government plans the direction of the country. At the grass-roots level, entrepreneurship is thriving and driving economic growth often through innovations. In the middle, local governments compete and sometimes collaborate in clusters of cities within regions. This three-layered model, though not perfect, has indeed enabled China’s tremendous economic growth for the past four decades and offered major resilience for continued growth.

China’s innovations, in particular, are picking up with unforeseen speed and intensity. With “Made in China 2025” outlining China’s roadmap to becoming the world’s leader in high-tech, China is now already the second-largest spender on research and development and accounts for 21% of the world’s total, according to the US National Science Foundation. From the grass-roots level, patents, trademarks and industrial design soared in recent years. World Intellectual Property Organization reported that China contributed to 98% of global growth in patent filings, more than the combined total of US, Japan, Korea and Europe.

While China’s innovation is taking place with speed and intensity, MNCs have largely been a bystander. For long, China was known as a “copycat nation” and admittedly, for a long time, copycatting was blatant. However, innovations, largely business model innovations driven by China’s entrepreneurs have emerged with unprecedented speed, ever since technologies such as the wireless Internet became prevalent in China. Most MNCs were not even aware of this phenomenon because they didn’t believe the Chinese could be that innovative, and they did not really mix themselves into the Chinese business ecosystems.

Source: Internet

This lack of awareness is a key reason why MNCs have not captured the full potential that China offers. The “core competency” mindset from western corporate management drives foreign CEOs to not take risks and cling to what they are (supposedly) good at, often missing out on new opportunities to learn from Chinese consumers and companies. On the other hand, China’s leading entrepreneurial companies are good at identifying emerging market opportunities and are often willing to “jump over” to capture the new opportunities, even if they don’t have all the required capabilities to compete in the new conditions. They would often make up the capability gap through a combination of self-building and leveraging partnerships in the ecosystem.

Another reason why MNCs didn’t “get it” is that they see China as one of the many markets in the world, albeit often a very important market, but few put China at the core of their global development strategy. As much, they position their managers in China merely as operational or administrative people. Without an in-depth understanding of the China context, decision-makers from faraway global headquarters often find it difficult to stay informed of China’s innovations and to take full advantage of them. Or worse, they think they know and make decisions on that basis while in actuality they don’t (or at least not enough).

Lessons can be learned from multinational drug companies that are already bleeding talent to China startups. Zhi Hong, an 11-year veteran of GlaxoSmithKline, who led the company’s infectious diseases business, launched Brii Biosciences which raised $260 million from investors including Sequoia Capital. Dr. Xiaobin Wu, former China manager of Pfizer, left for a local cancer drug developer, BeiGene, where he sees opportunities for indigenous innovations for patients in China.

First, their strategy requires a thorough understanding of the China context which is evolving in a peculiar and multidimensional manner. Instead of using a linear, incremental approach at micro business levels, which is common at MNCs, they should focus on, or at least start with, the big picture and capture changes that can be abrupt and rapid.

Second, because these changes can be abrupt and rapid, MNCs should shorten their decision-making process, thus becoming more sensitive to innovations happening at the grass-roots level. Compared with the complex layers of management at MNCs, the dynamics at China’s new start-ups are very nimble and the decision-making is very fast. MNCs should therefore draw inspiration and create more agile organizations.

Third, the speed of development, uniqueness, complexity and strategic importance of China require foreign MNCs to fully embrace China as the core of their global strategy and organization, not just as one of many markets. Foreign multinationals should also train their China managers to be thought leaders and place them at senior levels as well as empower them with appropriate decision rights and resources.

There are cases of MNCs capturing significant value from China’s innovations. Earlier examples include Telstra, an Australian telecommunication and media company. Though its core business in China is restricted by foreign participation rules, it turned to invest in China’s online automotive advertising platform Autohome and made a handsome profit. Insiders estimated Telstra profited well over US$ one billion in well less than 10 years. Lately, Coca-Cola China ventured into the yogurt business with an investment in Beijing Lepur to tap the growing demand for health products and consumption trade-up. Lepur, a premium yogurt startup, is one of China’s fastest-growing brands.

Source: Internet

The golden era for foreign MNCs in China is not over. But to capture the rightful potential that China offers to them, foreign companies have to step up their game through more innovations, as well as better disruptive strategies supported by the right organizations and driven by the right leadership under a new and empowered global governance. Participating in China’s innovations in a full-fledged manner gives foreign companies a much better chance to succeed.

A major potential is emerging in Sino-foreign collaborative innovations (“co-innovation”). While China needs access to breakthrough technologies from global innovation hubs such as North America, Europe and Israel, top global technology firms also need a market that allows innovations to scale up. One of the most progressive markets with a vibrant digital economy, China is an ideal place to deploy and scale up new technologies.

To catch up with the new rules of games, foreign MNCs must accelerate by joining or even creating their own innovations ecosystems. Thriving or failing in China depends on whether they can strategically anticipate and capture the opportunities and handle the challenges. After all, it goes back to companies’ own mindset and awareness.

About the authors
Dr. Edward Tse
Founder and CEO, Gao Feng Advisory Company
Dr. Edward Tse is founder and CEO of Gao Feng Advisory Company. A pioneer in China’s management consulting industry, Dr. Tse built and ran the Greater China operations of two leading international management consulting firms for a period of 20 years. He has consulted to hundreds of companies – both headquartered in and outside of China – on all critical aspects of business in China and China for the world. He also consulted to the Chinese government on strategies, state-owned enterprise reform and Chinese companies going overseas. He is the author of over 200 articles and four books including both award-winning The China Strategy (2010) and China’s Disruptors (2015) (Chinese version «创业家精神»).
Email: edward.tse@gaofengadv.com

Bill Russo
Managing Director and the Automotive Practice leader
Gao Feng Advisory Company
Bill Russo is Managing Director and the Automotive Practice leader at Gao Feng Advisory Company based in Shanghai. With 15 years as an Automotive executive, including over 14 years of experience in China and Asia, Mr. Russo has worked with numerous multi-national and local Chinese firms in the formulation and implementation of their global market and product strategies. He was previously Vice President of Chrysler North East Asia, where he managed the business operations for the Greater China and South Korea markets. Prior to this, Mr. Russo was Head of Product & Business Strategy for Chrysler. He also has nearly 12 years of experience in the electronics and IT industry, having worked at IBM Corporation as a manufacturing and systems engineer, and formerly served as Vice President of Corporate Development at Harman International.
Email: bill.russo@gaofengadv.com