The Chinese Century: The Rising Chinese Economy and It's Impact on the Global Economy, The Balance of Power, and Your Job


By 2015, China may well have the world's largest economy. In The Chinese Century, Oded Shenkar shows how China is restoring its imperial glory by infusing modern technology and market economics into a non-democratic system controlled by the Communist party and bureaucracy. Shenkar shows why China's quest for global success differs radically from predecessors such as Japan, India, and Mexico... why it represents a fundamental restructuring of the global business system... and why it will transform the roles of ...
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By 2015, China may well have the world's largest economy. In The Chinese Century, Oded Shenkar shows how China is restoring its imperial glory by infusing modern technology and market economics into a non-democratic system controlled by the Communist party and bureaucracy. Shenkar shows why China's quest for global success differs radically from predecessors such as Japan, India, and Mexico... why it represents a fundamental restructuring of the global business system... and why it will transform the roles of participants in the global economy. He previews tomorrow's new competitive ground rules, terms of employment, and consumption patterns, and shows how Chinese ascendancy is redrawing political, economic, and social battle lines. Learn why the U.S. is most vulnerable to China's ascent... how China's disregard for intellectual property creates sustainable competitive advantage... how China's growth impacts global businesses and individual purchasing decisions. Above all, Shenkar shows what you must do to survive and prosper in "The Chinese Century."
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Editorial Reviews

Soundview Executive Book Summaries
The Rising Chinese Economy and Its Impact
Some economists believe that China's rise as an economic power is simply another case of an Asian country making decent headway much like Japan or South Korea. But management professor and international business researcher Dr. Oded Shenkar disagrees. In The Chinese Century, he writes that China's ascent has more in common with the rise of the United States a century ago than with the recent progress of its predecessors and followers. Shenkar writes, "What we are witnessing is the sustained and dramatic growth of a future world power, with an unmatched breadth of resources, lofty aspirations, strong bargaining position, and the financial and technological wherewithal of an established and business-savvy Diaspora." He writes that China's impact on the world will be enormous.

The Chinese Century describes the impact that China's rise will have on business, employees and consumers around the globe. By exploring the factors that play a role in its rise, and its impact on the United States, Shenkar assesses what companies and employees will need to do to remain competitive as China's role in the global economy expands. He writes that the "dislocations" that result from China's growth as a global economic force represent a fundamental restructuring of the global business system.

Planes, Bicycles and Automobiles
Not only is China a country of 1.3 billion people, but it is already the largest market for Boeing's commercial aircraft and American machine tool makers. It is also Volkswagen's biggest foreign market (ahead of the United States). China makes 70 percent of the world's toys, 60 percent of its bicycles, half its shoes, and one-third of its luggage. Shenkar points out that China's size also means a vast pool of human resources. With its unlimited supply of menial laborers; a growing number of engineers, scientists and skilled technicians; as well as an educational system that continues to be modernized and stocked with foreign-trained faculty, Shenkar writes that China is poised to overcome its problems (of which there are still many) and emerge even stronger from the process.

How can companies, employees and consumers prepare for the new economy? Shenkar writes that the protectionism of a trade war would be a severe mistake, "producing grave consequences for all." He also explains that we all share the responsibility of maintaining the perception of fairness, and the belief in opportunity for all must not be undermined.

Japan and India
For those who might believe that China's rise to prominence as an economic power is equal to that of either Japan or India, Shenkar breaks down the factors that point to China as its own, robust force. For example, Shenkar writes that a "crucial difference between Japan and China has to do with their capacity for innovation and propensity for entrepreneurial and international activities." He explains that historically, China has been an innovator, while Japan has been an imitator or an incremental improver, rarely producing radical innovations. China's advantages in innovation, size and timing suggest that, as substantial as the Japanese impact has been, the Chinese impact is likely to be much larger, more sustainable and broader in terms of economic sectors.

When comparing India and China, Shenkar writes that India is only gaining in a narrow range - software, back-office operations and call centers - while China is globally competitive in a variety of industries, from textiles to appliances. This makes India's presence felt in the outsourcing market but does not necessarily translate into a country-wide impact.

For businesses to succeed in China, Shenkar explains that "a company must do its homework, understand how the Chinese environment works, and determine how to develop and protect a competitive advantage under different game rules." He adds that this same formula also applies to the entire China game.

Shenkar also makes many forecasts, including: If current trends continue, China will surpass the United States to become the world's largest economy in two decades, maybe even sooner. He concludes The Chinese Century with the thought that how we handle the coming challenge "will define much of the world our children will inherit."

Why We Like This Book
The Chinese Century presents a fascinating and detailed look at the factors that have shaped where the global economy is today, and provides valuable insights into the international transformation that is taking place both in the United States and Asia. By focusing on the jobs that are at stake and the new realities we are soon to face, Shenkar offers the foundation on which effective strategies and responses can be built. Copyright © 2005 Soundview Executive Book Summaries

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Product Details

  • ISBN-13: 9780131467484
  • Publisher: Pearson Prentice Hall
  • Publication date: 10/13/2004
  • Pages: 208
  • Product dimensions: 6.16 (w) x 9.32 (h) x 0.85 (d)

Meet the Author

Oded Shenkar is Ford Motor Company Chair in Global Business Management at the Fisher College of Business, Ohio State University. His research interests include international business, comparative and international management, and strategic and managerial issues pertaining to international strategic alliances, with a focus on China and East Asia. Dr. Shenkar has published numerous books and articles on international business and management and on China in particular. He also has edited several books, including Handbook for International Management Research Second Edition and International Business. Dr. Shenkar serves on the editorial boards of the Academy of Management Executive, Journal of Cross-Cultural Management, Journal of International Business Studies, Journal of Management Inquiry, Management International Review, Human Relations, and Organization Studies. He advises multinational firms, national and state governments, and international organizations, and serves as a member of the Conference Board Council of Integration Executives. He holds a Ph.D. from Columbia University, New York.

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Table of Contents

About the Author.

1. The Dawn of the Chinese Century.

China in the Global Economy.

Resources and Capabilities.

The Synergies of Greater China .

Coming to America .

The Chronic Importer.

The Naïve Trader (or the One with More to Lose).

Follow the Curve.

Foreign-Generated and “Self-Inflicted” Imports.

The Currency Play.

China Takes on the World.

The World’s Factory.

The Export Imperative.

Where the Jobs Are.

A Consumer Paradise .

The Coming Realignment.

2. The Middle Kingdom.

An Imperial (But Not Imperialist) Heritage.

The Imperial Bureaucracy.

China and Its Neighbors.

The Imperial Imprint.

The Modern Era: China and the Foreign Powers.

The Shadow of Humiliation.

China Under Communism.

The Communist Imprint.

The Reform Period.

Lofty Aspirations.

National Symbols.

Political Aspirations.

Economic Aspirations.

3. Like No Other.

Is China a New Japan ?

Analogies of Response.

Japan , China , and the Limits of Analogy.

The Innovation Imperative.

Dragons, Large and Small.

Hong Kong .

Taiwan .

Singapore .

South Korea .

The Asian Crisis, Misinterpreted.

China and India : A Tale of Two Nations.

4. From Socks to Aircraft.

The Technology Legacy.

Inventions But No Science .

The Price of Falling Behind.

Technology by Decree: The Central Planning Legacy.

Climbing the Technology Ladder.

Leveraging Foreign Investment.

Technology Transfer Incentives.

Learning from the Barbarians.

Indigenous Innovation: Still a Dream.

Developing Research Capabilities.

Upgrading China ’s “Humanware”.

Transforming the Educational System.

The Return of the “Turtles”.

Bringing Technology to the Enterprise .


Technology as a Freebie.

5. The Two-Dollar Rolex.

Yankee Footprints.

Piracy, Counterfeiting, and the Like.

The Costs and Benefits of Knock-Offs.

An Industry in the Making.

Institutional and Legacy Factors.

The Organization of Fake Production.

Pirating “Digitized” Products.

The Enforcement Failure.

The Globalization of Piracy and Counterfeiting.

Going Forward.

Navigating Pirate Seas .

6. The Business Challenge.

Industry Tales.

America ’s Clothier.

Furniture from Afar.

The Geography of the China Impact.

Holding Its Own: The European Union.

The Invasion of Japan .

Mexico Undone.

Friends and Foes: ASEAN and Beyond.

What’s Coming.

Preparing for the Chinese Century.

A New Game Plan.

If You Can’t Beat Them.

7. East, East, and Away: Where the Jobs Are.

Job Migration: Myth and Fact.

Job Migration and Job Losses.

In Context.

Who Benefits.

Macro Promise, Micro Reality.

The Economics of Job Migration - Here We Go Again?

China and the Global Labor Market.

China ’s Job Impact.

Is Your Job in Jeopardy?

Politics and Policies.

Navigating the New Job Landscape.

Up (or Down) the Ladder.

8. A TV from Sichuan .

The Factory to the World Meets the Consumer of the World.

The Nation of Wal-Mart.

A Level Playing Field.


Would You Buy a Chinese Product?

China and the Brand.

Is “Buy American” Returning?

9. China Rising.

Misplaced Analogies.

The Tortoise and the Hare.

China and the World Trade Organization.

Scenarios for the Future.

Soft Landing.

Hard Landing.

Fault Lines.

Nations and States.

Global Battle Lines.




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  • Anonymous

    Posted May 11, 2006

    useful but not deep

    The topic is hot and his presentation is OK. Worth reading, but the author lacks first-hand experience, which makes discussions less penetrating. Two more insightful books are strongly remmended: (1) China's global reach: markets, multinationals, and globalization by a leading Chinese commentator, and (2) China's balance sheet by Nicholas Lardy and coauthor. Both books offer extensive and far-reaching studies on current China and global affairs.

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  • Anonymous

    Posted November 16, 2005

    Important Assessment of China's Growth

    This is an important book for anyone doing business with China or facing a competitive threat from the world's most rapidly expanding economy. Author Oded Shenkar presents the forces that have made China a global economic powerhouse. He explains how it uses fair and unfair competitive advantages to muscle trading partners and manufacturers to get what it wants. This includes copying everything from technology to factory blueprints and training manuals so it can leapfrog ahead of other developing nations. Unofficially, China also encourages counterfeiting and smuggling as well as copyright violations. To compete, European and U.S. corporations must understand how the Chinese operate and develop new business plans. This dry text is not casual reading, but it provides important information about how to contend against a tough, rule-breaking competitor. We recommend this book to anyone doing business with or competing against China. Shenkar makes it clear that U.S. businesspeople must learn the new rules in the global marketplace. It's game time.

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  • Anonymous

    Posted December 10, 2004

    Far-reaching insights

    This book portraits a realistic future of the Chinese economy and its profond impacts on the globalization. The author goes beyond the presence and offers far-reaching insights to where the Chinese economy will evolve and how the Chinese economy integrates into the web of the global economy. It is a must reading for those who want to be the tomorrows' business leaders and policy makers.

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