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The War for China's Wallet: Profiting from the New World Order
With Chinese-led initiatives such as One Belt One Road (OBOR) and the Asian Infrastructure Investment Bank (AIIB) combined with uncertainty due to US shifts in policy and apparent commitments over the past decade, the stakes are high for companies looking to profit from the world’s newest superpower.
Post-financial crisis, China has emerged as the largest or second largest trading partner for most countries. It has become the second largest market for Fortune 500 companies like Starbucks, Apple, and Nike and drives growth for Hollywood and commodity products. Yet the profits come at a price for countries and companies alike—they must adhere to the political goals of Beijing or else face economic punishment or outright banishment. Using primary research from interviews with hundreds of business executives and government officials, The War for China’s Wallet will help companies understand how to profit from China’s outbound economic plans as well as a shifting consumer base that is increasingly nationalistic. The countries and companies that get it right will benefit from China’s wallet but those that do not will lose out on the world’s largest growth engine for the next two decades.
Post-financial crisis, China has emerged as the largest or second largest trading partner for most countries. It has become the second largest market for Fortune 500 companies like Starbucks, Apple, and Nike and drives growth for Hollywood and commodity products. Yet the profits come at a price for countries and companies alike—they must adhere to the political goals of Beijing or else face economic punishment or outright banishment. Using primary research from interviews with hundreds of business executives and government officials, The War for China’s Wallet will help companies understand how to profit from China’s outbound economic plans as well as a shifting consumer base that is increasingly nationalistic. The countries and companies that get it right will benefit from China’s wallet but those that do not will lose out on the world’s largest growth engine for the next two decades.
250 pages, Paperback
First published December 1, 2017
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123 people want to read
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Displaying 1 - 7 of 7 reviews
December 16, 2017
I spent nine years living and working in Beijing as the American ex-patriate manager of a wholly owned foreign subsidiary of a US multi-national company. We had a large manufacturing plant less than 50 km from the heart of Beijing built to support the Chinese market, in which we had built a leading market position, so I acquired a fairly deep and broad understanding of what it means to do business in China as a foreign company and brand.
After returning to the US to retire into the next chapter of life in 2016, I must say that I have been bewildered by the degree to which Americans in general and our politicians in particular have a very inaccurate understanding of China at every level, from politics to culture. And, of course, this stems from the very distorted media coverage the country receives.
While I had never heard of Shaun Rein or his company during my time there, and would never suggest that I have his breadth of personal, political, and business network in China, this is the most informed and accurate book about China that I’ve read in some time. And I read a lot.
There are a lot of Chinese hands out there. To understand China, however, you must understand the context in which it has developed and currently exists. And Rein clearly does, to an extent few other westerners, including many who have lived there for long periods of time, can match.
I particularly liked two things about this book. The first is that Rein does not follow the path that most authors, myself included, have followed into the seemingly inevitable path of Confucianism and Eastern philosophy. While he certainly acknowledges their importance, he adds a more practical dimension to cause and effect.
He notes, for example, the prevalent expectation that the state will take care of all things social and how that impacts behavior. Although this habit is changing, for example, he references the ease with which many Chinese have historically littered public spaces. And he correctly notes that they are not littering in the western sense so much as they are leaving it for the legions of state workers who they know will soon be by to sweep up and clean the area. While walking in Beijing’s plentiful and beautiful parks, for example, I frequently noted empty water bottles that had been nestled into the crotch of tree branches, typically at eye level. It didn’t take long to realize that it was put there by a fellow walker to insure that the state worker who would clean up the area could find it easily.
I also liked this book for the grave misconceptions it corrects. It is these misconceptions, I believe, that are at the heart of much of the friction that currently exists in the US’s relationship with China. The truths that Rein makes an accurate case for include:
- China is not the Soviet Union. It has no desire to either dominate the world or to export “socialism with Chinese characteristics.” It wants respect and security; and that’s it.
- The Chinese who are emigrating out of China are not doing so for political reasons. The fact is that the Communist Party of China enjoys strong support from most Chinese for getting it right. People emigrate for educational opportunities and a less hectic quality of life.
- The Chinese people, with relatively few exceptions, want nothing to do with the American system of democracy. Nearly all will tell you that it simply wouldn’t work in China and I believe they are absolutely right. (And it’s not working all that well here, at the moment.
Rein’s message to the international business community is also spot on. China is different and foreign companies who wish to do business there must understand those differences and react accordingly.
To speak to his point, I was in Beijing during the 2008 Olympics and the plant I was managing, like every other plant so close to Beijing, came under intense scrutiny for environmental and security reasons. And while many of my fellow western managers in the area attempted to resist government pressures to take extra precautions by banding together to fight, they ultimately failed. I consciously chose to work with the government and expressed my genuine empathy for the job before them. And I must say that after a few meetings with the proper government officials and a few very reasonable concessions on our part, my business operated without any disruption throughout the Games. And, for both myself and my employees, it was a splendid time to be a Beijinger.
I thoroughly enjoyed my time in China and my Chinese wife and I plan to spend a lot of time there in the years ahead. If you haven’t been there, or you’re not doing business there, I encourage you to consider it. But read this book first. It is a very easy read and right on the money – or the wallet, as it were.
After returning to the US to retire into the next chapter of life in 2016, I must say that I have been bewildered by the degree to which Americans in general and our politicians in particular have a very inaccurate understanding of China at every level, from politics to culture. And, of course, this stems from the very distorted media coverage the country receives.
While I had never heard of Shaun Rein or his company during my time there, and would never suggest that I have his breadth of personal, political, and business network in China, this is the most informed and accurate book about China that I’ve read in some time. And I read a lot.
There are a lot of Chinese hands out there. To understand China, however, you must understand the context in which it has developed and currently exists. And Rein clearly does, to an extent few other westerners, including many who have lived there for long periods of time, can match.
I particularly liked two things about this book. The first is that Rein does not follow the path that most authors, myself included, have followed into the seemingly inevitable path of Confucianism and Eastern philosophy. While he certainly acknowledges their importance, he adds a more practical dimension to cause and effect.
He notes, for example, the prevalent expectation that the state will take care of all things social and how that impacts behavior. Although this habit is changing, for example, he references the ease with which many Chinese have historically littered public spaces. And he correctly notes that they are not littering in the western sense so much as they are leaving it for the legions of state workers who they know will soon be by to sweep up and clean the area. While walking in Beijing’s plentiful and beautiful parks, for example, I frequently noted empty water bottles that had been nestled into the crotch of tree branches, typically at eye level. It didn’t take long to realize that it was put there by a fellow walker to insure that the state worker who would clean up the area could find it easily.
I also liked this book for the grave misconceptions it corrects. It is these misconceptions, I believe, that are at the heart of much of the friction that currently exists in the US’s relationship with China. The truths that Rein makes an accurate case for include:
- China is not the Soviet Union. It has no desire to either dominate the world or to export “socialism with Chinese characteristics.” It wants respect and security; and that’s it.
- The Chinese who are emigrating out of China are not doing so for political reasons. The fact is that the Communist Party of China enjoys strong support from most Chinese for getting it right. People emigrate for educational opportunities and a less hectic quality of life.
- The Chinese people, with relatively few exceptions, want nothing to do with the American system of democracy. Nearly all will tell you that it simply wouldn’t work in China and I believe they are absolutely right. (And it’s not working all that well here, at the moment.
Rein’s message to the international business community is also spot on. China is different and foreign companies who wish to do business there must understand those differences and react accordingly.
To speak to his point, I was in Beijing during the 2008 Olympics and the plant I was managing, like every other plant so close to Beijing, came under intense scrutiny for environmental and security reasons. And while many of my fellow western managers in the area attempted to resist government pressures to take extra precautions by banding together to fight, they ultimately failed. I consciously chose to work with the government and expressed my genuine empathy for the job before them. And I must say that after a few meetings with the proper government officials and a few very reasonable concessions on our part, my business operated without any disruption throughout the Games. And, for both myself and my employees, it was a splendid time to be a Beijinger.
I thoroughly enjoyed my time in China and my Chinese wife and I plan to spend a lot of time there in the years ahead. If you haven’t been there, or you’re not doing business there, I encourage you to consider it. But read this book first. It is a very easy read and right on the money – or the wallet, as it were.
October 24, 2018
As a Vietnamese to read this book I have so many realizations. First Vietnamese we tend to think China with a very different point of view covered up by the local media although we are the next to Country to China. This is nonsense right ? However I think most of the global media and coverages outside the mainland often report far from what exactly happened in China.
This book reveals a lot of hidden truths underestimated by the rest of the word. Believe it or not I think this is one of the most important read for me so far and it is a must-read also if you are going to do business in China. I want to quote the last paragraph of the book here :
"Going forward countries and companies have to understand the thinking process and viewpoints about China's government and consumers much as countries have to learn about America when it welded so much influence in the post-world War II era. The ones that do will see the Chinese wallet powering profits for the next two decades. The ones that do not well will lose out on the world's greatest growth engine.
I'm so surprised that this gem has not attracted a lot of Readers and I believe that everyone should read this book because our lives will be affected sooner or later by this world emerging superpower.
This book reveals a lot of hidden truths underestimated by the rest of the word. Believe it or not I think this is one of the most important read for me so far and it is a must-read also if you are going to do business in China. I want to quote the last paragraph of the book here :
"Going forward countries and companies have to understand the thinking process and viewpoints about China's government and consumers much as countries have to learn about America when it welded so much influence in the post-world War II era. The ones that do will see the Chinese wallet powering profits for the next two decades. The ones that do not well will lose out on the world's greatest growth engine.
I'm so surprised that this gem has not attracted a lot of Readers and I believe that everyone should read this book because our lives will be affected sooner or later by this world emerging superpower.
January 13, 2021
Rein includes bits on geopolitics but he mainly focuses on giving cultural strategic advice to entrepreneurs/businesses/countries/organizations on the average Chinese consumer and their spending habits, and he details the waves of Chinese emigrants and their impact on housing and gentrification in their country/countries of residence. He provides insight into the behaviors and habits of Chinese consumers, and he, like a scientist, gives evidence to link the causes and the effects of political clout. But his interviews with companies and CEOs mostly offers basic PR nonsense ("we're establishing stronger ties with X and Y! we're delivering great impact!"). On the section with a Honeywell exec, it felt like I fell into a meeting with the company's promotional team.
Still, I'll give this book four stars because of how clearly he writes (or maybe I can attribute this to his undergraduate editor). Also, is anyone else concerned that he hired a college student to edit for him?
What is Rein's M.O.? I noticed that his tone throughout the book is fairly self-serving. What sort of advice is he leaving out? How much data does his group, CMR, have? Where did Rein invest his money and was he lucky enough to make a buck from the boom? (My guess is yes--because in the book he mentions that he wanted to start a private equity firm for a casual $150 mil.)
Still, I'll give this book four stars because of how clearly he writes (or maybe I can attribute this to his undergraduate editor). Also, is anyone else concerned that he hired a college student to edit for him?
What is Rein's M.O.? I noticed that his tone throughout the book is fairly self-serving. What sort of advice is he leaving out? How much data does his group, CMR, have? Where did Rein invest his money and was he lucky enough to make a buck from the boom? (My guess is yes--because in the book he mentions that he wanted to start a private equity firm for a casual $150 mil.)
March 26, 2018
This book offers quite a lot of insights into how Chinese think and spend money. I am a Chinese and am still quite intrigued by some of the findings and analysis in this book.
October 27, 2018
Otro gran libro de Shaun Rein para seguir entendiendo muchas cosas sobre China.
July 21, 2021
I have a feeling this book will be more useful to me in the future if I ever need to work around Chinese business. For now, it was merely interesting to note cultural differences.
What was less interesting was the style of the book. I felt the dialogues were more or less pointless and added no value, but the parts before and after, including the key take away points were of use.
I sense I will look to these take away points again in years to come, but cannot say that this was an entirely riveting read.
What was less interesting was the style of the book. I felt the dialogues were more or less pointless and added no value, but the parts before and after, including the key take away points were of use.
I sense I will look to these take away points again in years to come, but cannot say that this was an entirely riveting read.
March 9, 2021
Không phải quá sâu nhưng giúp mình có cách nhìn rộng hơn và khác hơn về cách hoạt động kinh doanh với Trung Quốc và gợi thêm nhiều điều tò mò sau đó nữa. Thú vị!
Displaying 1 - 7 of 7 reviews