Innovative Chinese firms have previously suffered at the hands of firms who have followed the imitation and copying model. But in the future, if Chinese firms are serious about long-term, sustainable success, they will need to adopt a more global perspective and create a new era of innovation.
CKGSB Founding Dean Xiang Bing has called for Chinese firms to become more innovative in the future, warning that the previous model of imitation is no longer sustainable. At a seminar this week in New York City, Xiang said Chinese companies have to adopt a global perspective for their evolving role in international markets, adding that Chinese firms should focus more on social responsibility, environmental protection and entrepreneurial morality.
CKGSB Founding Dean and Professor of China Business and Globalization Xiang Bing talks at a CKGSB Knowledge Series event in New York City on April 27.
Dean Xiang also compared the current philosophy of China’s businesses to the Qing Dynasty period in the 19th century, when attempts were made to modernize China by copying the Western political and economic systems, including studying technology from more developed countries and sending young talents. But he added that many Chinese firms today lack the global perspective and capacity to leverage resources worldwide, which has limited their role globally, despite success and influence in the domestic market.
An article this week by China Daily reporter Zheng Xin highlighted Dean Xiang’s insights at length:
History has shown that copying, plagiarizing and imitation no longer work in today’s economy, he said. “For Chinese companies, despite their past prosperity after copying and referencing Western firms, it’s time they adopt a global perspective and create a new era with innovation,” said Xiang.
Xiang said most of the Chinese firms in the past that have been innovative have suffered devastating defeats in the marketplace while those who copy the successful Western companies have made great profits, which has encouraged the “copying model”. But he warned of an opposite result in the future.
“Copying Google, Facebook, Twitter and Uber might succeed during a certain period of time, but it’s definitely not going to in the future,” he said.
One example of an innovative Chinese company cited by Dr. Xiang was Huawei, whose strategy and originality has brought the company recognition in several international markets—despite continuing struggles in the US—as well as sustainable long-term success.
Xiang said it doesn’t matter whether a company chooses a developed country or a developing one to expand its business abroad and crack the local-to-global code. “What matters is that the companies adopt a global perspective and enhance the ability to leverage resources globally,” he said.
To read the original article on China Daily, please click here.