It’s no secret that the phenomenal growth stories of
At the same time, both countries face significant challenges and growth hurdles. The populations of both remain relatively poor, with per capita income less than one-twentieth that of the
What follows are excerpts from the remarks of Summit panel participants Anil Gupta, the Ralph J. Tyser professor of strategy and organization at the University of Maryland’s Smith School of Business and author of Getting China and India Right, and Robert Lawrence Kuhn, author of the forthcoming The Inside Story of 30 Years of Reform: How China’s Leaders Think and What It Means for the Future, who discussed how CEOs can leverage these economies for global growth.
On global position:
Robert Lawrence Kuhn: There is no question that
Anil Gupta: I see
On challenges ahead:
Kuhn: The rural economy is extremely important in
Gupta: To put it even more starkly, if there is no salvation for the rural poor in
On potential protectionism:
Kuhn: A protectionist policy is virtually unenforceable. Or, if it is enforceable, it would have a dramatically negative effect on American industry, if not in a matter of months then in very few years. I tend to be not too worried that there will be a sea change once we get into the new administration because the President-elect is very smart and I hope somebody who’s very smart can see the right policies.
Gupta: There is talk in politics and there is reality. When you have bluecollar wages at $1 an hour versus $20- plus here, and a software engineer’s total cost is $15,000 a year versus $75,000 or $90,000, exactly how much subsidy can the
On navigating acquisitions:
Kuhn: Be aware that in many Chinese companies, if you ask for revenues, sometimes they give their factory production, not considering whether they ever sold any of the stuff or not. If it’s a state-owned enterprise in a municipality or province, the people will actually be on your side and try to negotiate against their own government because that’s in their own best interest. Every state-owned Chinese enterprise wants to be a joint venture or majority-owned or minority-owned by a foreigner because that gets them out of their system. That’s a benefit, but you must be able to really understand the whole landscape of all the constituencies for any deal that you want to do. To just do it in the way you would do it in