By Rafael Balago and Luciano Pádua
Original Portuguese version published in EXAME February 14, 2025.
Professor Xiang Bing, Founding Dean of Cheung Kong Graduate School of Business (CKGSB), one of China’s premier institutions for business education, offers a compelling perspective on China’s innovation trajectory and the evolving role of Chinese companies on the global stage. Known for his forward-thinking approach, Professor Xiang advocates for an often-overlooked strategy: the power of replication. “Don’t be afraid to copy,” he says. “If an idea worked in one market, it’s cheaper and safer to replicate it than to create something from scratch.” After all, that’s been China’s recipe: the country specialized in manufacturing products designed in the West at a lower cost.
Yet, Xiang’s mantra extends beyond mere imitation. “You learn to walk before you learn to run.” The success of companies like DeepSeek, a Chinese AI firm that has outperformed global competitors in efficiency, signals a new era. “You see Chinese companies coming to the American market, competing with the giants of the United States and doing incredibly well, even winning. This is unprecedented,” he said.
As the Founding Dean of the Cheung Kong Graduate School of Business, which he established in 2002, Xiang has seen firsthand how China has evolved from a manufacturing hub to a hotbed of innovation. His students include leaders from industry giants such as Alibaba and TikTok, who have gone on to shape the future of business both in China and globally. During a recent visit to Brazil, where he participated in an event alongside Saint Paul Business School (acquired by EXAME), Professor Xiang shared his insights on China’s growing influence in technology and the state of the global economy. He also revealed the advice he frequently offers to entrepreneurs navigating today’s rapidly changing landscape.
Xiang Bing: China started as a copycat, just as all countries do, including the United States in its early years and Japan. You learn to walk before you learn to run. So, there is no need to feel bad about being a copycat. China followed the same path. We imitated a lot, perhaps after the first 20 years after 1978. But over the last decade or more, more companies driven by innovation have emerged from China. Increasingly, Chinese companies are competing through innovation, not just in electric vehicles, batteries and solar panels, but across multiple industries. Before DeepSeek, we saw the success of TikTok, the rise of Temu in the U.S. market, and SHEIN’s rapid growth. Chinese companies are now entering the American market, competing with U.S. giants, and even winning. This is unprecedented.
Xiang Bing: About ten years ago, the U.S. was more driven by innovation, and China relied more on disruption and scale. But over the past decade, China has made significant progress in innovation. China and the U.S. are the two countries that have leveraged the Internet revolution.
Recently, the capitalization of Chinese tech companies has declined somewhat, but I remain optimistic that China will become more innovation-driven. We may still see more revolutionary innovation coming from China. TikTok is the first major example and I hope DeepSeek can qualify as another. It’s still unclear because there’s competition from AI companies like Google and OpenAI.
Xiang Bing: Yes, there will be impacts. Otherwise, ByteDance would have been the largest unicorn company for many years. But if companies like TikTok can’t operate in the U.S., we’ll see more and more Chinese creating companies in Brazil, Turkey, etc. The talent, money, and experience are with them.
Xiang Bing: First, leverage new technology. Think about what technology can transform a sector. Second, observe new global business models. If a new model has been growing exponentially in the U.S. and for five years, consider whether it could be relevant for China or Brazil. If it has already been tested successful in one market for a few years, the chances of success in another market are much higher.
This approach has already created many billionaires in China and will continue to do so. There are more than 30 sectors in China that still need to be deregulated. Once that happens, the strategy is simple: copy first, make money, and then innovate. First, build a $10 billion business. Then, invest 1 billion in innovation.
Xiang Bing: When I founded CKGSB in 2002, I made a strategic decision: no rankings. I didn’t want to compete with anyone. This opened new possibilities. Presidents of Google, Amazon and Goldman Sachs don’t attend traditional MBAs. Not even Harvard attracts the top leaders of American companies. So, I focused on bringing in the CEOs of China’s most respected companies, like Sinopec and Alibaba. If I could build a class with these executives, my school would make a major leap forward.
Normally, it takes 20 years for a student to become a CEO. Why wait? I started with CEOs from day one. But there were challenges. Teaching people of this caliber is challenging. For them, tuition isn’t the issue. The cost is their time. So, I brought in top specialists from the U.S. and gave them strong incentives to study the Chinese economy and business landscape, because traditional models simply didn’t fit our context.
Xiang Bing: For CEOs, not really. They don’t want theory—they want breakthroughs. Their mindset is: Show me something really new. Tell me which other companies I need to know. Are they doing something better than me? This is why we focus on exclusive content. It’s not about rankings or accreditations; it’s about delivering unique insights. And, of course, when you succeed with these insights and a group of people studying together, the value of alumni network becomes unmatched. Today, our alumni network is the envy of anyone. Our DBA (Doctor of Business Administration) program, with 70 students this year—the largest globally – commands a tuition rate of $300,000 per diploma. We are considered the elite of the elite.
Xiang Bing: It’s new money. No business school has anything like it, operates at the top of the pyramid, or works with this new money. We’ve had immense success. I don’t compete just with traditional MBAs and EMBAs. Ten years ago, our MBA prepared students for elite banks and consulting firms. Today, the best students want to be entrepreneurs. They don’t want to work for any company.
Xiang Bing: There are plenty of reasons for optimism. China and its government possess tools and resources that many countries would envy. For years, China has contributed around 30% of global economic growth and the country remain the world’s second-largest economy. China is not just a manufacturing powerhouse—it is the largest industrial and commercial nation in the world.
Much has been said about aging and population decline, but the median age in China and the U.S. is the same, even though our population is four times larger. Our workforce still surpasses India’s by 120 million, with a significantly higher proportion of skilled workers. This advantage will remain for at least the next two decades.
For any other country to reach China’s productive capacity, it would take at least ten years. Also, there are more than 30 sectors that remain regulated (under state control) and could be opened up. We can boost the economy simply through deregulation, something that isn’t available in the U.S. Ultimately, the only real threat to China’s economic trajectory is China itself.
Xiang Bing: Neoliberalism is practically exhausted in the U.S. There are still some opportunities, such as tax cuts – something Trump highlighted – but the structural challenges remain significant. I see the U.S. facing major problems, because it only relies on liberal democracy and neoliberalism. There are significant investments in social security, but the problem in the U.S., for me, is the lack of equity. Twenty-seven million people lack healthcare. Higher education remains inaccessible for many young people without financial means.
Xiang Bing: One of the biggest risks facing China today is the decline in long-term investment—both from foreign companies and the domestic private sector. This is very different from the global financial crisis of 2008, when both foreign companies and Chinese private companies saw the situation as an opportunity to acquire undervalued assets. Today, few entrepreneurs share that mindset.
This shift is concerning because consumption and GDP depend heavily on these foreign and private investments. We need both to keep the Chinese economy healthy. If the economy continues to expand, many structural issues will resolve before they become real problems. But if its growth stalls, challenges will surface, just like in any company. Without profit and cash flow, even the largest corporations can struggle and the Chinese economy is no exception.
The key to the future lies in restoring confidence among foreign investors and private businesses. Relying solely on state-led or government investments isn’t sustainable. History has proven this between 1949 and 1978, China followed this model, and it failed.
Xiang Bing: The relocation of production from China to Southeast Asia is not new—it began years ago—even before COVID—due to cost considerations and it will continue. Chinese companies need to relocate their facilities and improve value competition, not just price. This transition takes time.
Chinese companies have made significant progress in digital transformation. But foreign companies have been diversifying their supply chains to reduce dependency on China. Additionally, private enterprises in China often feel their assets lack sufficient protection, which pushes them to invest globally.
In the long term, this outward shift could actually be a blessing for China. The domestic market was so profitable that Chinese companies saw little incentive to expand internationally. But now, they are being forced to become global. A decade from now, we will see that transformation was one of China’s greatest advantages.
Xiang Bing: I highlight the commodity sector, including agriculture. I also expect more collaboration between China and Brazil, especially in sustainability.
Xiang Bing: In BRICS, the key issue is not just the currency– it is trade. It would be unfortunate to have a scenario where a single leader like Donald Trump could disrupt the entire global dynamic. While it’s understandable that the U.S. prioritizes its national interests, a true global leader should act with balance.
Emerging markets like China and Brazil must take on greater responsibilities in investments, trade, and financial systems. This doesn’t mean being against the U.S., but creating a counterbalance. The U.S. has made tremendous contributions to humanity through its science and technology. But when a president like Trump takes office and disregards fundamental principles, it becomes alarming. And I’m not even talking about high ideas, just basic decency.
Humanity is experiencing rapid technological advancements, but progress must extend not only in modernization to encompass a broader sense of modernity and human values. While technology is advancing at an unprecedented pace, social progress lags behind and, in some case, it has even regressed.
Xiang Bing: I’m extremely optimistic about AI-driven disruptions. I hope more giant biotech companies will emerge, because China has an aging society and huge demand for it. Agriculture is another important sector.
Xiang Bing: Brazilian companies need to bring cutting-edge technology, particularly in areas like AI and biotechnology, and understand the ecosystem. The Chinese market is enormous, but very competitive, because there are many foreign and local companies. The level of efficiency and cutting-edge technology is very high. Joint ventures are a great option for foreign companies looking to navigate this complex market.
