Doing Business with China

BUS352 EXAM#2 Fall 2020 NAME________________________________
1. The 4 pillars for China-based “world factory“ (from PWC Consulting) and its importance to the
growth of the Chinese economy before 2015 were
a. China’s “world factory” was largely created by foreign MNCs.
b. Advantage of China infrastructure network.
c. Benefit of Chinese financial supply chain
d. Assistance from Government services supply chain.
Please describe and give examples of why each of these four main pillars are now under stress in China?
(Reference: Lecture 8-1 China and Manufacturing on CANVAS) (200 words)
2. Silicon Valley Bank (SVB) is a California based high-tech commercial bank with offices worldwide. In
2012, Silicon Valley Bank became the 1st joint venture bank to get a new banking license in 15 years in
China. SVB established a joint-venture bank in China: SPD Silicon Valley Bank which will provide capital
to start-up technology entrepreneurs. In about 200 words, can you tell us why Silicon Valley Bank is
successful in China? (Reference: Lecture 7-1 SVB)
3. US China “Decoupling” is Washington’s new foreign policy buzzword: For the White House, the phrase
is shorthand for the administration’s commitment, through taxes, tariffs and other punitive measures,
to disentangle its companies and their technologies from China’s supply chains. Yet, American
companies that produce, import, or exports from China are caught in US China Trade War crossfire. The
deepening economic rivalry creates a headache for multinational companies that have spent decades
constructing global supply chains and building market share in China. In your own words, can you
comment on the ongoing US China Trade relationship? (200 words)
a. Reference: A New Cold War? China, America, and the Geopolitics of COVID-19
i. https://www.youtube.com/watch?v=PnjvBbdHEbw
b. Kevin Rudd on the U.S.-China Trade War (Former Australia Prime Minister)
i. https://www.youtube.com/watch?v=7GnAzXjII3k
4. Tom Doctoroff talked about his ‘3 golden rules’ of marketing in China in his VIDEO. According to
Doctoroff, brands need to understand the Confucian “tension” between climbing social hierarchy and
protecting oneself from social or economic failure. The 3 golden rules are: 1: “Maximization of public
consumption”, 2: ‘externalization of benefits, and 3: ‘reassurance’. Please describe and give examples of
each of Tom Doctoroff’s 3 golden rules. (200 words)
a. Reference: Tom Doctorff: Old World, New Minds- China’s Post-90s Generation

b. The three golden rules of marketing in China: Tom Doctoroff

5. Shaun Rein in his book and video: “The End of Copycat China”, makes the case that much of
China’s early growth was based on heavy investments and export, driven by a whatever-it-takes
mentality of adopting western business models. China’s growth model of the last three decades is
becoming increasingly ineffective, as relying on heavy investment and exports is becoming less and less
feasible. China’s changing course, and sustainable success requires a shift in strategy. Please describe
and give examples of Shaun Rein’s recommendations on doing business in China?
BUS352 EXAM#2 Fall 2020 NAME________________________________
a. Reference: Shaun Rein Open Mind- The End of Copycat China

6. China’s Market has over a billion consumers. In 2019, China has become the largest consumer
market in the world. The Chinese middle classes has just emerged in the last 15 to 20 years. According to
American Chamber of Commerce Survey of 800 US companies in 2017, more than 93% of the US
companies were profitable in China. In about 200 words, will you give four major factors on how an
American company can be successful in China? (Reference from Week 9)
7. In Nike’s “Battle of the 9 Gates” 3-on3 basketball tournament marketing initiative, Nike kicked
off this initiative in by combining traditional icons and contemporary culture. In about 200 words, will
you explain what Nike winning formula was in order to attract over 6,000 basketball fans and great
mindshare in China? (Reference: Week 13 lecture and videos)
Reference: 1. Nike: Battle of the 9 Gates (DMG Media 2008 : 4 min)

or https://www.youtube.com/watch?v=r-MTNlKc4mY&t=5s
NIKE : Beijing Young Masters (3 min)

8. “China’s economy is at a significant crossroads after 2012, it has come to the end of the export
focused industrial model of development.” In about 150 words, will you explain this statement and give
examples of the current status of China’s economic development?