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Oprah time: China’s Disruptors by Edward Tse

Reading Time: 3 minutes

Reading China’s Disruptors by Edward Tse is a great primer on how China’s enterprises are structured differently to foreign companies. The government / private relationship is a complex one. Tse does a good job at explaining it well. This alone is a good reason to read the book.

Tse’s background as China based management consultant and academic provides him with a greater understanding of how the China’s entrepreneurs work.

Innovation

His points about the equal but different status in Chinese versus Western innovation are well made and not given sufficient consideration in non-Chinese analysis of the country.

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At the time of publication Premier Xi’s changes were only starting to take root and so one has to take Tse’s writing in that lens. He identifies some of the main reasons why Chinese companies have managed to grow, even where they haven’t had explicit government protection: notably eBay versus Alibaba. It is also noticeable that eBay failed in Japan as well.

Tse didn’t cover how Baidu’s battle with Google in the same depth. Even before Google was banned; Baidu had become the market leader. Google didn’t do as good a job as it should have done indexing the Chinese web. The Chinese web was growing at a faster rate than even Google could have imagined. Google also struggled in other ideogram based language markets like Korea and Japan. This implies a weakness in their core search offering. Baidu has had only limited success outside Chinese language speaking markets.

Optimistic viewpoint

The author takes an optimistic view on the future of Chinese companies abroad. He thinks that Chinese approaches applied to foreign markets will win out. Yet one of the key aspects of Haier’s past success has been extreme localisation.

As an outsider I detect a certain hubris and arrogance in some Chinese companies going abroad.

Wolf culture

Tse doesn’t explore the wolf culture at all. The wolf culture that has been fostered inside some of China’s most notable companies has toxic side-effects on employees and partners. Even within the company it can create a ‘them and us’ division that splits Chinese workers from their non-Chinese colleagues. This is much greater than the grain of sand in a shoe type irritation that you get between US and other western management structures. It’s even greater than the insiders / outsiders friction working in a Korean or Japanese firm.

China acquiring abroad

One of Tse’s examples: Chinese company Sany acquiring German concrete pump company Putzmeister now looks like a high water mark for Chinese acquisition of German technology and knowhow. Tencent buying into Reddit has seen a community pushback that is designed to push the buttons of an increasing assertive Chinese government.

The complex amorphous nature of Chinese company structures, the directive nature of their relationships with the Chinese government and strategic nature of their products has created an equal and opposites reaction in foreign markets. Chinese state companies have had variable success in Belt and Road initiative projects. The service sector growth desired hasn’t kicked in yet as Chinese consumers still prefer to save in preparation for whatever future change throws at them.

Western tire of Chinese tactics and populism rises

There has also been an attitude change in western businesses who have had enough. They’re tired of the regulatory environment and non-tariff barriers being stacked against them. You also see a backlash against globalisation spreading across the western world which will adversely affect China going global.

In conclusion, Tse’s work is an excellent primer, just bear in mind when you read it:

  • Edward Tse has a got a glass half-full perspective
  • The one constant in China is economic and social change
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Oprah Time AngloArabia by David Wearing

Reading Time: < 1 minute

I got sent a copy of AngloArabia and was interested in having a read of it. I grew up at a time when the Gulf states influence grew through OPEC. I started my work life with a brief time in the oil and gas industry. Since then I have moved on through a number of iterations in my career.

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The Gulf states sit in a peculiar part of British history that isn’t generally understood. Wearing goes through the history of the the area from the Trucial states attached to the British rule of India. And brings up to date regarding the UK’s role in the modern Middle East.

The modern relationship between the Gulf states and the United Kingdom blurs the hierarchy between client states and their former colonial master.

Lots of western countries have seen sovereign funds invest with a view to gaining influence. The UK is unique in terms of the Gulf States are bailing the country out. Without the support of Middle East money, the country would be overwhelmed by its current account deficit.

The implication is that the UK government literally can’t afford for any of the Middle East monarchies to fall in an Arab Spring style revolution.

The author David Wearing is a left of centre leaning journalist with wonkish credentials. As with any author, you need to ask yourself about his agenda. He has managed to write a relatively accessible book.

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Oprah time: To kill the truth by Sam Bourne

Reading Time: 2 minutes

To kill the truth is very much a book of our time. It explores the power of historical records, the alt-right and technology. The plot opens with a very current battle between ‘woke’ academia meets the polo-shirted, tiki torch-bearing far right. A former academic has gone to court in order to dispute our understanding of the slave trade and create a revisionist history.

Historical records and accounts were picked apart to cast sufficient doubt on them. By using this legal standard record-by-record the mass of evidence is ignored. The truth becomes lies, rather like social political discussions over Brexit and Trump’s election.

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Then key establishments of historical record start to burn down around the world. Online repositories from websites to Google are brought to their knees by hackers. Into this mess steps a smart wonkish protagonist Maggie Costello. Maggie is tired of the political machine and gets pulled back in. Soon she suffers from online identity theft.

Taking one side Costello’s gender for a moment. Costello feels familiar. This is partly because she is so similar to Dan Brown’s Robert Langdon and Tom Clancy’s Jack Ryan. Smart bookish heros who could see what the establishment couldn’t.

The second parallel to Clancy’s work is that characters are secondary to the big ideas and technical wonders. And here lies the book’s achilles heel. Costello has obviously beeen developed as a smart vulnerable ‘woke’ hero. But she feels like a cardboard cut-out rather than a believable character. The androgynous nom-de-plume Sam Bourne hides the identity of Guardian journalist Jonathan Freedland. His wonkish credentials created a great high concept, but he hasn’t managed to create a character that we can root for.

Enjoy the exploration of big contemporary issues, just keep our expectations low on the character development.