China

John Gapper

The western image of Chinese higher education is of relentless self-improvement and of hundreds of thousands of students graduating from universities with degrees in science and engineering. From China’s perspective, it looks a little different.

The slowing of growth and the fact that most new job creation is now taking place in the private sector, rather than in the public sector and state-owned enterprises, has led to a glut of new graduates. The unemployment rate among 21 to 25-years olds is now highest for university graduates.

But some Chinese analysts think it is not simply a demand problem – there is also a supply issue. Victor Yuan, chairman of Horizon Research, a Shanghai-based research group, argues that many universities are offering poor quality vocational education. Read more

John Gapper

Being invited for tea in China sounds like the sort of hospitable gesture that visitors come to expect. For the growing arm of Chinese bloggers – and users of Sina Weibo, China’s equivalent of Twitter – it has a different connotation.

In that context, he cha” (drink tea), means being asked to come and talk to the state security services about what you have been writing. That doesn’t mean being arrested, or even banned from Weibo permanently, but it is a shot across the bows. Read more

John Gapper

You would think that an American executive who came to China in 2006 and has only made one sale since then might be feeling a little discouraged. But, as I discovered on a visit to the city of Wuhan in Hubei province, Brad Bean is not.

Since Mr Bean is trying to sell luxury yachts to billionaires – 70-to-100-metre vessels that retail for between $50m and $120m each – he thinks he is making good progress. China, after all, is not the obvious place to buy a yacht. Read more

In 2010, seven managers from PSA Peugeot Citroën and five from Chang’an Automobile met in Shenzhen, southern China, to lay the groundwork for a new car factory. Three years later, Capsa, a 50-50 joint venture between the French and Chinese companies, is in the final stages of preparing a 1m square metre plant for the September launch of Chinese-made premium cars under the DS brand. “Because we were beginning from a blank sheet, people wanted to make it as perfect as possible,” says Gilles Boussac, Capsa’s president, between meetings with his team of mostly Chinese managers. “So often in China, if you’re trying to rework or improve something, it takes years to achieve.”

Andrew Hill

Expect more Chinese heroes. That seems to be the clear message of the tie-up announced on Wednesday between China’s Seven Stars and Pinewood Shepperton Studios. Among other things, it should allow Chinese co-productions wider distribution in the fast-growing Chinese market, provided, my colleague Robert Cookson writes, they have “at least one Chinese actor, some scenes to be filmed in China, and somehow relate to China”. Read more

Andrew Hill

Having now read Tim Cook’s letter of apology to Chinese consumers, I think the Apple chief executive has rather deftly achieved his objective – a public act of contrition – without admitting that his company did anything wrong.

According to the Wall Street Journal’s translation, he says:

We are aware that a lack of communication … has led to the perception that Apple is arrogant and doesn’t care or attach enough importance to consumer feedback. We express our sincere apologies for any concerns or misunderstandings this gave consumers.

This is at best an apology for creating a misperception, rather than for discriminating against Chinese consumers, one of China Central TV’s accusationsRead more

It takes an Orwellian sense of irony – or a complete lack of it – for a censor to ban the phrase “freedom of speech”. Yet that was among the search terms blocked on Sina Weibo, China’s equivalent of Twitter, in the row over censorship that erupted in Guangzhou this week.

Andrew Hill

With the Chinese Communist party about to anoint Xi Jinping as its new secretary general, there is plenty of speculation about the implications of its political and economic changes for the rest of the world, but little about its capacity to inspire management innovation.

China is overdue a modern management guru (Sun Tzu, born around the sixth century BC, doesn’t count).

Walter Kiechel has written an excellent potted history of “The Management Century” in the latest Harvard Business Review, starting in the late 19th and early 20th century with an “age of scientific management” (led by Frederick Winslow Taylor), moving through a more sophisticated era of growing self-confidence from the 1940s to the 1980s (dominated by the insights of Peter Drucker, whose life and work is celebrated this week at the Global Drucker Forum in Vienna) and on to the modern era of specialisation and globalisation. But, as Kiechel writes, “most of our story so far takes place in the United States”: Read more