Enterprise China

Chapter 4STRATEGIC PILLAR III: WINNING GLOBALLY

In the previous chapter, we discussed China's second strategic pillar, which is to dominate domestically. In this chapter, we focus on China's third strategic pillar—to compete and win globally. Winning at home is one thing; winning in the home markets of your competitors is quite another. If this weren't enough, China is determined to win in the technology‐intensive industries central to the Fourth Industrial Revolution. The focus adds weight to an already heavy lift, considering that many of the toughest foreign competitors have significant head starts on China in the targeted sectors and sophisticated operations already in place.

Despite these challenges, Enterprise China recognizes that in a globally connected world continued prosperity at home is at least partially dependent on competitiveness abroad. This focus is supported by the fear that unless China can be competitive, it risks repeating the “great isolation” that the country suffered from the mid‐15th century to the mid‐20th century. Losing out on the nascent high‐tech industries that will drive prosperity over the coming decades would trap China in the role of low‐end manufacturer of commoditized products with few opportunities to move up the value stack. Enterprise China recognizes that increasing prosperity and strength at home depends on winning abroad.

On top of this, domestic strength and international influence are key to ensuring that China never suffers economic, ...