Tsinghua Business Review

Issue No. 5， 2015

Transformation of Transnational Corporations

Chinas reform and opening-up has witnessed a dazzling succession of transnational corporations entering the Chinese market. But the salad days are over， along with business transformations， capital withdrawals and enterprise shutdowns. What kind of business environment do these transnational corporations now face？ How can they make the necessary strategic transformation？

In the past 40 years since transnational enterprises entered China， the Chinese economy has surged and its market has broadened with a robust consumption demand and cheap， ample and high quality human resources. Compared to their local peers， transnational companies had considerable advantages in such areas as capital， technology， brands， products， and management. That they should achieve such outstanding success in China， therefore， was no surprise.

Nowadays， in an environment where such benefits are less obvious， transnational firms are beset with difficulties and challenges. After years of catching up， Chinese enterprises have made great progress in technology， brand， and management， and are hence more competitive. Their natural adaptation to the local environment has enabled them to provide products and services more swiftly and conveniently. It is time， therefore， that transnational enterprises reflected on their future development and made strategic transformations.

China is manufacturing center of the world， and is also becoming a global innovation and fashion hub. Taking into consideration Chinese consumers increasing maturity and buying power， transnational corporations that simply bring their native products and services to China can hardly expect to find a profitable market. Localization of their products and services and optimum utilization of local highcaliber workers have become vital. Therefore these corporations must now build China into a marketing and R&D center， so strategically upgrading their localization and personnel management.

Furthermore， in the new normal of a competitive environment， transnational corporations must optimize their operations to heighten efficiency and reduce cost.

South Reviews

Issue No. 12， 2015

Select Competent Officials

An anti-corruption campaign has swept China since the 18th CPC National Congress in November 2012. Many corrupt officials have been investigated and prosecuted. It now remains to fill their positions. Selecting new cadres has become a public focus， reflecting profound changes in the criteria for the selection of officials.endprint

Xi Jinpings speech at the National Meeting of Heads of Organizational Departments on June 2013， and the Regulations on CPC Cadre Selections and Appointments published in January 2014 both underlined the central authorities clear orientation， standards and procedures for selecting cadres. Reforms to the cadre personnel system have been pushed forward， and to strengthen it the appointment criteria has changed. Moreover， independency of supervisory appointments has been enhanced， and judicial appointment is now disassociated from the civil servant management system.

The main difference lies in a total change in the logic of politics in efforts to achieve modernization of the governance system and governance capacity， and make honesty and accountability the two main characteristics of future CPC cadres. Since the 18th CPC National Congress， the central authorities have made systematic “top-level designs” that emphasize probity and capability. Specific actions include transparency as regards the background of newly promoted cadres， and leading officials being encouraged to promote the reforms that General Secretary of the CPC Central Committee Xi Jinping recently proposed.

CBN Weekly

Issue No. 18， 2015

Brand-New Start

Growing numbers of graduates are becoming disenchanted with formerly coveted jobs in big city state-owned enterprises， government departments and multinational companies. As young people are giving priority to life quality and individual interests， their criteria as regards a good job and being successful become more subjective and diverse.

From this broader perspective， graduates are contemplating the brandnew world that beckons.

This is one reason why the phrase“the most difficult year for employment” is now so seldom heard. Statistics from the Ministry of Human Resources and Social Security project the number of graduates in 2015 at 7.49 million， 220，000 more than in 2014 – considered the hardest year for job-hunting， yet the employment market is little different. This is attributable to the boom spurred by the Internet economy in start-ups and medium-sized and small companies that offer so many positions， and whose vitality and innovative company culture are so attractive to graduates.

New graduates these days have more mature values and a more open-minded attitude toward employment. They are attracted to steady job opportunities in small entrepreneurial companies in new potential cities rather than to high salaries working at large famous corporations in Beijing， Shanghai， Guangzhou， or Shenzhen. Achieving their ideals and enjoying life appeals to them more than a so-called high status position. Their preferences have hence dramatically changed from chasing stereotypes to self-fulfillment， according to their personal definition of the right career choice. This generation is thus more free and open than ever before.endprint

Life Week

Issue No. 22， 2015

Play – A Rare Spiritual Resource

There is nothing like play to stimulate childrens brains.

In his book The Evolution of Childhood， Emory University anthropologist Melvin Konner indicated that play is a biological mystery： it uses immense energy， often lures one into peril， and has no clear focus， aim or function， yet intelligent animals such as primates， elephants， and large-headed birds all love to play.

The generally accepted explanation in the scientific world is that fun enables the practice of techniques necessary for an animals future survival. For example， predators， such as lion cubs， constantly run on dried leaves to train their speed and reflexes， while prey such as zebras play at hide and seek and escape strategies. Evolution designs play to spur development of an animals brain and so handle challenges in order to survive and breed. Once they stop playing， their brains stop maturing.

U.S. writer Richard Louv initiatively proposes this concept in his book Last Child in the Woods， pointing out that most urban grown-up children nowadays display symptoms of“nature deficiency syndrome”from spending too much time on electronic products and in artificial environments rather than within nature. Although parts of nature have been preserved in urban zoos， museums and seaquariums， due to the plate glass separating children from them they can only watch and learn， rather than touch， feel and play amid nature.

Xinmin Weekly

Issue No. 20， 2015

Internet Plus

Each era marks a landmark change， for example， when model T Ford cars first appeared on the market， 200，000 horses were at large on New Yorks roads， producing five million pounds of manure per day. Five years later， horses on the road were 90 percent less.

Yet it seems that no other age has brought such immense and sudden change with such impact on every aspect of our lives， from daily consumption to music and film entertainment， as that of “Internet Plus.” We are now all beneficiaries of the “Internet Plus” era， but many also feel uneasy about its overwhelming effect.

A few years ago， online purchases and express home deliveries superseded physical shopping at stores in popularity. Some experts insist on the necessity for offline services， for example you need to leave the home for a foot massage. Unexpectedly， however， a large quantity of life services “O2O” （Online to Offline） programs have emerged in the mobile Internet age. Consumers find home call services irresistible. They need only to download an app on their cell phones to access personal services such as beauty therapy， hairdressing， manicures， massages， home-cleaning， laundry， and domiciliary services. Several apps also offer a hugely convenient car parking service.

In the “Internet Plus” era， apps have become universal housekeepers. As long as they make life easier for lazy humans， their success is assured！endprint