What happens in China changes the world.

Below is a summary of the article for English readers and here’s the link to the original Chinese Article:

In the deep ocean, rogue waves, destructive 100-foot-tall walls of water rise up when individually manageable waves collide. Something similar occurs in business.

Such sea changes are a shock for most organizations but an opportunity for the prepared. As the world moves faster and more connected, these rogue waves become more frequent.?

While we may not know what will seed the next disruption, we can know many of the waves it will collide with, so we can talk about what will happen after.?

First and foremost, we know that the next rogue wave will dramatically shape the relationship between China and the world.?Second, we know that it will dramatically change the trajectory of domestic economic development. Here are some of the key undercurrents that will shape what happens next.

FIVE UNDERCURRENTS SHAPING CHINA’S RELATIONSHIP WITH THE WORLD

New Globalization —?Trade is moving in new and unexpected directions.

Currency Confusion —?As the Chinese government reboots the economy, its policy focuses on long-term investment will conflict with growing short-termism and higher interest rates in the West.

New Trade Mechanisms —?As the center of gravity of global trade continues to shift toward China, countries subject to US sanctions will seek to trade using non-SWIFT and non-Dollar denominated currencies.

Brand China —?After a three year hiatus of travel, Chinese companies must better understand how both they and the Chinese government are being perceived and build a strategy to change these perceptions.

The Rise of Asia —?Asia's rapidly growing middle class will continue to shift global power dynamics and intensify resource competition, increasing the need for good trade relations.

FIVE UNDERCURRENTS SHAPING CHINESE DOMESTIC PRIORITIES

Digital Value —?Who will create value, who will do the work, and who will take the spoils of the AI economy? This question will drive the relationship between business, government, and consumers in the coming years.

Service and Knowledge Economy —?Much like in the US after the financial shocks of the 1970s, China will need to accelerate the development of its service and knowledge work to absorb the economic stimulus it puts into the domestic economy.

Consumption Growth —?China must walk the tightrope of boosting domestic consumption while growing low-skill, low-income jobs.

Green Economy —?China is investing heavily in clean technology, but they are unlikely to offset industries that will drive growth, which are inherently polluting.

Automation —?Large-scale digitalization of large manufacturing enterprises will be limited by a shortage of high-quality labor to take advantage of these skills.

How can you proactively turn these changes to your advantage? What happens when they collide? It's more likely that you'll be disrupted than to be the disruptor. Most leaders deny this truth and hope for the best. You can choose to plan and take advantage of it.

If you're interested in more in depth information about China, I wrote a much more in depth report about what these trends mean for your business and how to take advantage of it. If you're interested, I'd always love to chat.

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