Interview: Shifting Tides | CKGSB

Tokyo, 4th July 2023 – Serica is pleased to announce the publication of an interview between our CEO, Benjamin Speyer, and the Cheung Kong Graduate School of Business, China’s leading independent business school. The interview titled Shifting Tides discusses the shifting patterns of Chinese FDI and the impact of public perception, government policy and economic headwinds on a company’s ability to expand into—or out of—China.

Key takeouts:

• FDI into China has plummeted as companies are in a state of strategic paralysis, unsure whether to decouple, de-risk or double down (in China, for China).
• Economic, political, and regulatory headwinds have become a major challenge but traditional hurdles such as localization, IP protection, and contrasting business cultures remain the most stark.
• Sectors that are addressing shared existential challenges such as climate change, food security, healthcare access and poverty alleviation are all booming, supported greatly by Healthy China 2030 and Net Zero 2060 in China, the IRA in the USA and the Green Deal in the EU.
• The era of global China is here, companies of all shapes and sizes are going overseas to seek new opportunities and bypass trade restrictions. The Middle East is filling much of the capital gap left by US firms and is investing billions into China’s more innovative tech compeanies.
• China’s ability to adopt, scale and commercialize technology will give it significant competitive advantages abroad but its companies general tendency to communicate poorly and globalise its practices mean most will struggle to make meaingful headway in these markets.
• Trade and investment between China and the West will increase, but it will be indirect with trade occuring in markets like Mexico and investment flows through jurisidctions like Singapore.
• Nearshoring and friendshoring will characterise 2024 much like ‘derisking’ has this year. Who the winners and losers of this new normal will be remains to be seen.
• Three pieces of practical advice for companies expanding into (or out of) the Chinese market.

As one of the world’s leading technology and financial advisory firms specializing in China, we are always striving to remain at the forefront of meaningful discourse and education about Chinese technology, innovation, and business practices. Benjamin’s interview  with CKGSB underscores Serica’s commitment to thought leadership and knowledge sharing in key areas of strategic importance to its clients and partners.

Read the full interview here: https://english.ckgsb.edu.cn/knowledge/article/shifting-tides/

Interested in gaining insights from one of our executives for your publication or platform? Email us at press@serica-group.com