Do MNCs Understand the Movement of China’s Tectonic Plates?Monday, July 30, 2012 14:46
In Russell Flannery’s recent article Foreign Businesses In China Are Increasingly Concerned About The Future, Ken Lieberthal states:
If I have a concern about foreign businesses here, it is that too few of them have learned how the political system here operates as it engages the economy here. They don’t understand how to adapt strategy to deal with the realities of China’s political economy – that is, how the political system interacts with the economy here. So the level of surprise is much more than it should be.
A statement that I feel is not only accurate in nature, but I would go a step further and say that I don’t think many firms in China understand what is going on beyond their own market interests or understand the pressure that China is coming under as the economy slows, social pressures rise, and environmental failures are beginning to have an impact.
An impact that ultimately is of strategic importance to firms who are investing, or invested, in China