The China Executive: Marrying Western and Chinese Strengths to Generate Profitability from Your Investment in China

By examining Sino-Western joint ventures, the most complex and challenging of all business arrangements that are in a sense an engagement of 2,500 years of almost oppositely developed Western and Chinese civilisations, The China Executive provides an inside-out, human-centred perspective on what it takes to achieve business success in China: from stepping into the networked society, reading the dynamics of the China market, approaching and selecting a partner, and negotiating with a potential partner, through to bridging communication gaps, training local staff, leading the Chinese, and balancing managing and leading. Packed with anecdotes, pictures, and above all, wisdom, the book is easily accessible and highly practical.

Using China as a reference point, The China Executive also illuminates the limitations of the Western view of business, and offers existing and potential executives worldwide the definitive guide to developing a global view of business in the 21st century, including the integration of results and relationships, of analysis and intuition, and of competition and co-operation. The book concludes that the secret of global business success lies in taking a higher worldview by combining a Western things-oriented, divided worldview with a Chinese human-centred, integrated worldview, and mastering global business by combining modern Western management excellence with ancient Chinese leadership wisdom.

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All Customer Reviews
Average Customer Review:
1 of 1 people found the following review helpful:

Isn't it time to replace Porter's five-force model with Wang's five-force model?, 2008-01-13
I bought a copy of The China Executive over Christmas holidays in 2006 to develop my understanding of China business. Since then, I have recommended other professors on China business this wonderful book, which contains almost everything we need to teach our students.

But the republication of Prof Michael Porter's "The Five Competitive Forces That Shape Strategy" in the January 2008 issue of Harvard Business Review has compelled me to write this review.

Porter's five-force model has dominated courses on strategy in business schools since the article and his book Competitive Strategy were published in 1979 and 1980 respectively.

But a re-reading of Porter's article and a more careful reading of the last chapter of The China Executive has made me think that it is time to replace Porter's five-force model with Wang's five-force model.

Porter's five-force model is about competition to the extreme. According to Porter, strategy is about coping with competition; managers only regard their direct competitors as competition; as such, they should consider customers, suppliers, potential entrants and substitute products as four other competitive forces.

But such hyper-competitive thinking surely leads to corporate greed. As a company takes everybody as a competitor (or even enemy) and tries to do everything possible to maximize its own profits by minimizing others' (or even beating them down), its profitability may improve in the short term, but surely at some point in time it will crash because there will be nobody left who is happy to do business with it. Isn't Enron an example?

Furthermore, thinking around the five-force model does not lead to effective actions because all five forces are beyond a company's control. Competitors will always do what they like to do. Customers and suppliers are much better to be treated as partners, but still the world is so big that they can always choose somebody else. Whatever barriers to entry (from hundreds of millions of dollars for a car plant to thousands of dollars for a book publisher), new competitors will always come up. And who can stop substitute products from occurring?

By absorbing the strategic wisdom of Sun Tzu, whose 2,500-year-old book has proven to be the most insightful ever in the field of strategy, Wang has come up with his five-force model, which is presented in the last chapter of The China Executive.

The five strategic forces are: business purpose (the moral force of a business), business climate (the temporal force of a business), business location (the spatial force of a business), business organization (the organizational force of a business), and business leader (the command force of a business).

Consider business purpose. Isn't this or answer to the question of "to what extent, are we still creating real value for society?" what the new CEOs of Merrill Lynch and Citigroup should be contemplating? (By the way, Goldman Sachs has not exposed to the sub-prime crisis because it did not abandon itself to the lure of easy money - proof of the power of the moral force of a business.) Indeed, if they can somehow organize their thinking around what is important to creating that value despite all the incoming distractions, crisis and complexity crashing down all around them, then they will have a sustainable model for their business.

Overall, as the subtitle of Porter's article suggests, his model is about helping a company "stake out a position" within a precisely-defined local industry. It might well have been helpful to the largely predictable American industries in the early 1980s. But entering the 21 century and in a world that is now "flat", what American businesses face are the strategic challenges of how to cross national borders, how to understand local aspirations, how to have good partnerships...

In a word, strategic thinking in this new world is about how to prosper together rather than how to maximize one's own profits at the expense of others, and this is why I think Wang's model is more valuable and deserves to be published by Harvard Business Review.


1 of 1 people found the following review helpful:

Be more effective in your business dealings in China, 2007-11-08
I highly recommend this book.

As a US business exec who has been traveling to China for over 5 years, I can honestly say this is one of the best books I've read for helpful and practical insight for executives traveling to China for business.

There are many books available that address cultural comparisons between East and West including both social, and business situations. However The China Executive focuses exclusively from a business perspective and more specifically; how to understand cultural perspectives and work with strengths in each to be the most communicative and effective in business dealings.

It is well written with an easy to read writing style. The cover text under the title "Marrying Western and Chinese Strengths to Generate Profitability from Your Investment In China" sums the book up quite well.



1 of 1 people found the following review helpful:

A pioneering book of real value and wide appeal, 2007-10-13
I met Wei Wang at the Sixth Annual China Conference, held at the Port of Los Angeles on September 12-13. The conference (thechinaconference dot com), presented by Seattle-based, eighty-five-year-old Cargo Business News, not only provided each attendee with an autographed copy of Wang's book The China Executive but also had him give the closing keynote speech to several hundreds of executives from the global logistics industry. His speech, entitled China and the Human Side of Business and supported by a series of compelling slides, was the highlight of the entire conference.

In particular, I found his presentation of ancient Chinese wisdom (e.g. "Virtue is the root; wealth is the consequence", "Without self-interest, your interest succeed" and "Without expectations, you will be strong; with tolerance, you will be big.") extremely eye-opening. And if you don't know how to deal with your Chinese partner, this one will surely inspire you: "Before marriage know your partner's weaknesses; in marriage use your partner's strengths."

Of course, you will better understand the above with the help of his book, which I managed to read after the conference. And I must say that it is a pioneering book of real value and wide appeal!

Indeed, China's rise is transforming global politics, the global economy, and societies worldwide. So, everybody will arguably need to develop responses to meet the China challenge.

But first and foremost, business people worldwide - in particular Western business people due to our long-held superiority in the areas of technology and management - have to understand China if we want to achieve sustained business success in the age of globalisation, in which China is in the driving seat.

Wang's book contains everything you will need to know about China - above all what it means for business in a practical sense. Of course, the book's most original contribution is to connect Chinese civilisation with Western civilisation, thereby demonstrating the vital importance of combining intuition with analysis, leadership with management, relationships with results, and ultimately Chinese human-centered, integrated worldview with Western things-oriented, divided worldview.

I strongly recommend The China Executive because it has the potential to change how we see the world. And once we can see the world from a truly global perspective, every difficulty we experience in our endeavour to do business with China becomes an opportunity.


0 of 0 people found the following review helpful:

Initial impression, 2007-08-27
For perspective - I am part of a team investigating China and made my first trip to China 6 months ago. This book is well written and gives a good quick overview - it is weak on details, however my limited experience in China shows a very dynamic situation with each company different. Flexibility is key - this book will give an excellent foundation to be better prepared as business situations are approached. Each team member has purchased a copy of this book and it is frequently referenced as we work to clarify and grow our understanding in China


2 of 2 people found the following review helpful:

A wonderful book on China business!, 2007-08-10
Business with China takes many forms. Whether you are considering import/export, technology transfer, licensing, joint venture or wholly-foreign owned investment, this book will guide you to success.

Of course, this book is not just about these business arrangements; it is about the essence of them. As this book shows, any business arrangement not only is an abstract idea about the future but also has people at its heart.

All too often, Western business people (and professors) only see the idea side of business, with the people side largely ignored.

In our homeland, this may not cause too big a problem (although bringing the best out of every individual is becoming more and more important). But in a non-Western environment where people have different ways of thinking and want different things from life, mastering the hearts of people is really the key to business success.

This is, in my view, where most books on China business have got muddled up, and why I say The China Executive is "A wonderful book on China business!"

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