December 21, 2018. Shanghai – An article co-authored by CEIBS Associate Professor of Management Daniel Han Ming Chng and Organisational Behaviour and Human Resource Management Department Chair, Philips Chair in Management, and Professor of Management Tae-Yeol Kim has been cited as one of 2018’s best by MIT Sloan Management Review. This year’s best articles list highlights the pace at which the new digital economy is developing and how new technology is transforming the way we manage, organise, and work.

Entitled Why People Believe in Their Leaders — or Not, Prof. Chng and Prof. Kim’s article looks at what causes leaders to gain or lose credibility and what can be done to get it back. They write that the credibility of leaders hinges on perceptions of both competence and trustworthiness. In turn, these perceptions are formed through direct and indirect observations of a leader’s work and performance. Furthermore, in a digital age where vast amounts of information about people can be captured and scrutinized, they argue, these perceptions have taken on significant importance.

In addition to conducting research, Prof. Chng teaches strategic management, organisational turnaround, global strategy, organisational theory and design, managerial decision making, and strategic consulting. He is also interested in organisational and managerial strategic behaviours during situations adversity and understanding how organisations respond to the challenges of failure or the threat of failure. To learn more about his work, visit his CEIBS faculty profile here.

In his work at CEIBS, Prof. Kim focuses mainly on organisational justice, cross-cultural psychology, creativity, leadership, proactivity, and person-environment fit. He has received numerous research awards and his work has appeared in dozens of international publications. For more information about his work, visit his CEIBS faculty profile here.

Why People Believe in Their Leaders — or Not originally appeared as a research feature in the Fall 2018 issue of MIT Sloan Management Review and was written along with Colorado State University-Pueblo Hasan School of Business Professor of Management Brad Gilbreath and Temple University Fox School of Business Associate Professor of Human Resource Management Lynne Andersson. Read it online here.

December 19, 2018 – CEIBS Alumni Switzerland Association (CASA) recently hosted its Christmas get-together in Zurich. GEMBA17 and Advanced Management Programme (AMP) students – all of whom were in town for their Zurich modules – joined in along with CEIBS Professor of Finance and Accounting Oliver Rui.

Following some pizza, prosecco, and catching up, CASA Co-President Urs Casagrande kicked off the informal sharing session introducing two hot topics, trade disputes and Singles Day.

Prof. Rui led off the discussion about trade disputes by helping to explain the situation with one simple equation. Following this, Urs shared some insights and figures on the 2018 shopping craze Singles Day (China’s version of Black Friday).

After some discussion and knowledge sharing, alumni and students retreated to the Christmas market to wrap up the evening with a hot cup of Glühwein and Christmas cheer.

If you would like to learn more about the Swiss chapter of the alumni association, please email h.saxby@ceibs.ch.

December 19, 2018. Shanghai – 2018 proved to be a year full of headline-making news and trending topics and we were here to dig a little deeper to help make sense of it all. From trade spats and volatile real estate prices to cultural intelligence and managing professional relationships, we take a look back (in no particular order) at the year’s 12 most read articles from the CEIBS Knowledge section of the website.

Explainer: US-China Trade Spat

China-US trade tensions hit an all-time high in 2018, and our faculty had a lot to say on the issue. In this piece written in April, CEIBS Professor of Economics Xu Bin asked the question, if currency manipulation isn’t the cause of the US’ current trade deficit with China, what is? Read it here.

China-EU Partnership More Vital than Ever

As commercial confrontation began to spread beyond China and the US, 2018 proved to be a year where international exchanges and free trade were under duress all over the world. With this in mind, CEIBS Distinguished Professor and former Prime Minister of France Dominque de Villepin penned a thoughtful piece in June on how Europe and China can join hands to guarantee the world’s economic stability. Read it here.

6 Keys to Understanding China’s Rising Real Estate Prices

When China’s National Bureau of Statistics (NBS) revealed that, in the three-year period leading up to May 2018, new housing prices had increased by a whopping 20.4% nationwide, people took notice. In July, CEIBS Adjunct Professor of Economics & Finance Sheng Songcheng examined the government’s latest tightening measures and looked at the impact of China’s skyrocketing real estate prices. Read it here.

China’s Digital Revolution

In 2018, internet companies dominated Fortune Magazine’s list of the 500 most profitable companies in the US. CEIBS MBA Programme Director and Professor of Management Juan Fernandez took a look, in this piece published in June, at how the digital revolution is transforming the way China—and the world—does business. Read it here.

Jack Ma Can Retire with Confidence… But Will He?

Alibaba Group’s Jack Ma shocked the world in September when he announced that he would retire as Chairman of China’s largest e-commerce company. CEIBS Lecturer of Management Michelle Zheng shared her thoughts on how Ma’s proactive personality, coupled with Alibaba’s sustainable succession plan and well-developed organisational culture will ensure he can do so with confidence. Read it here.

Why KPIs often Miss the Mark on Innovation

Though they said being innovative was a top priority, many companies around the world continued to struggle to innovate in 2018. As CEIBS Assistant Professor of Management Sebastian Schuh showed, part of the reason might be that employees don’t always receive fair recognition for their innovation efforts in traditional performance evaluations. Read it here.

The Importance of Trust in the Workplace

The secret to a good marriage is mutual trust and communication. In a study published earlier this year, CEIBS Professor of Management Kim Tae-Yeol showed that these same principles also apply to the relationship between managers and their subordinates. Read it here.

How to Improve Your Cultural Intelligence

With the number of cross-border collaborations on the rise, multinational organisations have come to view cultural intelligence (CQ), the ability to adapt and function in foreign settings, as a valuable asset in the workplace. CEIBS Distinguished Professor of Management Jiing-Lih Farh offered a closer examination of CQ and challenged some of the assumptions about how it is acquired. Read it here.

Managing Personality Clashes at Work: How to Avoid Burnout & Boost Commitment

Combining team members with different personalities and skillsets can sometimes prove to be a double-edged sword. According to a paper co-authored by CEIBS Assistant Professor of Management Emily M. David, effectively managing personality clashes starts with creating an atmosphere where fair treatment is the norm. Read about it here.

Growing CSR in China: First Corporate Social Responsibility Index for Chinese Listed Companies

Corporate Social Responsibility was a hot topic in 2018. In March, Professor of Finance & Accounting Oliver Rui helped unpack the first Corporate Social Responsibility Index for Chinese Listed Companies. Along the way, he also explained why CSR is a bit like broccoli. Read it here.

Three Unique Ways Israeli Start-Ups Dance with Gorillas

By the beginning of 2018, Israeli companies were spending more than 4% of the country’s total gross domestic product (GDP) on research and innovation in a quest to develop expertise in an astonishing range of technologies. CEIBS Associate Professor of International Business & Strategy Shameen Prashantham took a closer look and helped explain why Israel is to innovation what Switzerland is to chocolate. Read it here.

Chinese Investors Shouldn’t Neglect Indian Corporate Technology Firms

In the first two months of 2018, a leading Indian business daily reported that Chinese corporations had already made investments of more than $1 billion in Indian early- and growth-stage companies. CEIBS Professor of Entrepreneurship Ramakrishna Velamuri offered a look at some of the reasons why the Indian technology entrepreneurial ecosystem presents attractive opportunities to Chinese strategic and financial investors. Read it here.

December 17, 2018. Shanghai – China-US relations in the current international context was the topic of a roundtable workshop hosted today at CEIBS Shanghai Campus with Stanford University Hoover Institution Research Fellow Dr. Lanhee J. Chen. The invitation-only event was co-organised by CEIBS and the Liu Ji Management Education Fund with the overall aim of enhancing understanding of American policy, as it relates to China, in the wake of the recent US midterm elections. The session was attended by CEIBS faculty and students, numerous VIP guests from other business and academic institutes, as well as CEIBS President Li Mingjun and Vice President and Co-Dean Zhang Weijiong.

In his opening address, Dr. Chen noted that the topic of US-China trade is “a very critical issue at a very critical time”. He also emphasised that “it is a time which some have described as a time of great tension, but [it is] also a time of great opportunity for both countries to develop a closer and deeper understanding of the ways in which we can work together for shared prosperity and a better world.”

As Dr. Chen explained, the results of the 2018 US midterm elections—one in which the Democrats regained control of the House of Representatives while the Republicans maintained a majority of seats in the Senate—reflect a deep division among Americans about a number of very important issues. Despite this split, however, he said he believes that at least one area in which most Americans are united has to do with their views on China-US relations (including trade). Importantly, the opinions of Americans is what largely influences President Trump’s decision making process.

“Domestic politics and the domestic constituency of the President drive his foreign policy-making, and the question of how and whether to proceed is dictated by how it will be seen by the domestic audience,” Dr. Chen stated. “When this President thinks about foreign policy, he thinks, ‘how does this impact [voters]? How does trade policy impact farmers in Iowa or car makers in Michigan?’”

Although the unpredictability of the current US President has left many expressing confusion, Dr. Chen said he believes Trump’s approach to issues such as trade make him both more changeable and more pragmatic.

“[President Trump] will conduct foreign policy on the basis of what he believes is in the best interest of the US at that point in time – which also means he’s more flexible in terms of his worldview and the things he cares about,” Dr. Chen said. “He is a deal-maker and he is much more focused on what it will take to get to a deal. What he cares about is, ‘how do I get to ‘Yes’? How do I get to a solution to advance the things I need to?’”

Dr. Chen added that he believes the US President’s focus on purely economic issues will pave the way for a quicker resolution to the current trade dispute. In addition, he said it is important to remember that the US economy fundamentally depends on a strong relationship with China.

“The US economy will not benefit from a deteriorated relationship with China. Even if you accept the reality that global supply chains are shifting and that there are opportunities to [move production from China to elsewhere], there is going to be an impact on the American economy,” he explained. “[As a result,] if the US President remains focused on keeping the economy strong, it will mean keeping the US-China relationship positive enough to make a positive contribution to the US economy.”

In line with this view, Dr. Chen told the audience that it is important for Chinese companies to emphasise the degree to which they are making a positive contribution to the US economy. He also pointed out that on-going dialogue is key to helping improve relations between the two countries overall.

“If you look at the American people, [when it comes to opinions about China] obviously now we’re in a period of relative negativity, but that doesn’t mean those opinions can’t change,” he said. “I think with a shared dialogue and the value of interaction between the US and China those opinions can turn around.”

Moreover, Dr. Chen said he believes, despite the at-times harsh use of rhetoric employed, that a commitment to continuing this dialogue is something that people in both China and the US greatly value.

“Active engagement between the US and China is the best course of action for both countries and continued strong engagement benefits the American people and Chinese people,” he affirmed. “On substance, the [US] administration has reinforced the notion that engagement is at the core of this relationship.”

Nevertheless, at the end of the day, any deal on US-China trade involving the current US President will have to have clear apparent economic benefits for American voters. On this point, however, Dr. Chen concluded that there is reason to be hopeful.

“I’m optimistic about the resolution of this trade situation in the next 90 days because the politics of the tariff policy are becoming unpopular. President Trump is going to want to get rid of them in a way that allows him to claim he has negotiated [a win],” he said. “Do you think this will be a spectacular deal? It doesn’t matter. Even if the substance of the deal isn’t great, President Trump will be able to convince the American people he’s done a lot.”

December 14, 2018. Shanghai – Wrapping up a week-long visit to the school’s Shanghai campus, CEIBS Distinguished Professor, former World Trade Organisation (WTO) Director-General, and Notre Europe Honorary President Pascal Lamy met today with CEIBS alumni for a special discussion on The Impact of US Policies on International Trade.

During the talk, Prof. Lamy explained that recent US action against China is motivated, in part, by the perception that, as China gains ground in terms of trade and development, the US is losing ground. At the same time, President Trump’s obsession with the US deficit has led to a shift from a strategy of “managing China’s rise” to one of trying to “hit China where it is the most successful” — namely, in the area of manufacturing and exports, he said. Ironically, however, the trade dispute which has resulted may not necessarily, in Prof. Lamy’s view, be a bad thing for China.

“Insofar as US tariffs hit China exports, it will force production in China in sectors where it is most costly to move elsewhere, especially in areas where labour is intensive,” he said. “[However,] China’s strategy recently has been to move up the value ladder and the process of outsourcing part of the value chain was already underway. So it’s just accelerating that process.”

Nevertheless, Prof. Lamy stated that further escalation of the dispute could result in a situation where the US and China engage in mutual decoupling or a disentangling of their production systems. Whether the US gains anything from this approach, however, depends largely on Trump’s ability to withstand the pain a long-lasting trade war would trigger for the US economy.

“Decoupling will be painful for both China and the US, but I think China can sustain the pain longer,” he said. “What I’m sure of is that [the Trump administration’s] aggressive policy will result in a cost for the US. Some people believe this cost is worth paying, but if the stock markets start factoring in, Trump will have to react because part of his support comes from the financial markets.”

As a result, he added, it is likely that the US will seek to use the 90-day tariff truce announced during the recent G20 summit in Argentina to find a quick solution to the dispute. Regardless of the outcome, Prof. Lamy explained that a decoupling between the US and China is unlikely to lead to less globalisation overall.

“Even if there is a bit of de-globalisation between China and the US, it could result in more globalisation between China and other places on the planet—with Europe being the obvious candidate,” he said. “In these circumstances, how much would that result in trading elsewhere? I think the answer differs from sector to sector.”

One possible alternative to re-coupling elsewhere would, of course, be for the US and China to increase domestic production (and, thus, self-reliance). Despite President Trump’s apparent intentions to do just this, Prof. Lamy argued it would still result in an undesirable outcome.

“For example, many people in the US use aluminium that is produced abroad,” he said. “What Trump is doing by putting tariffs on steel, is helping steel producers in the US, but he‘s also harming the whole downstream value chain that uses steel by making it more expensive and totally inefficient. [As a result,] he will win one or two jobs in the steel industry and lose twenty or thirty jobs in the car industry.”

At the same time, Prof. Lamy acknowledged that there are deeper issues which the WTO must address in order to re-level the playing field of balanced global trade.

“The big problem is that the WTO rulebook is quite old and a number of disciplines are different for developed countries and developing countries. In the WTO, countries are self-determining. Since it has a choice, China choses [to be seen as a] developing [country],” he explained. “Legally speaking, if you are developing you have fewer obligations than if you were developed, but [the reality is that] China is somewhere in the middle and the idea that it is either [a developed country] or [a developing country] doesn’t work.”

According to Prof. Lamy, a second issue which the WTO must resolve (and one which President Trump has drawn attention to) is the issue of whether Chinese companies benefit from excessive subsidisation as a result of state ownership.

“Chinese subsidisation is a problem and it is not in the spirit of the WTO, but China does not cheat. It is the WTO rules that in some areas are not disciplined enough,” he pointed out. “[Does this mean that] trade is unfair? It depends whether you believe the definition of fair trade is trade done in accordance with the rulebook or if you believe fair trade is trade which you and I both believe is fair.”

Ultimately, despite protests from President Trump about the lack of fairness in trade with China, Prof. Lamy said he believes it is highly unlikely that such beliefs would ever lead to a US withdrawal from the WTO.

“If the US were to pull out of the WTO, it would lose its insurance policy against the protectionism of others,” he stated. “If the US pulled out of the WTO, their protection on intellectual property would be gone. So, in my view, [the US’ threat to withdraw] is a bluff, but in any game that involves bluffing, that is the whole point of a bluff.”

The talk concluded Prof. Lamy’s first official visit to the school’s Shanghai campus in his role as a member of the CEIBS faculty – a visit which marks the beginning of a three-year tenure during which he will work to develop new ideas and research designs as well as engage in intellectual discourse and projects primarily aimed at fostering greater understanding between China and Europe.

December 17, 2018. Shanghai – CEIBS faculty gave us a lot to celebrate this year! We relive some of the accolades, awards, and appointments that made headlines in 2018.

In January, we welcomed former Prime Minister of France Dominique de Villepin to the CEIBS faculty as a Distinguished Professor. In his new role, Prof. de Villepin has been tasked with engaging in high-level discussions and lectures on topics ranging from the Belt & Road Initiative, art and culture to the new global economic competition. Prof. de Villepin was also inaugurated as Chairman of the CEIBS International Advisory Board in September of this year.

On February 7, CEIBS Professors Xiande Zhao, Ramakrishna S. Velamuri, and Yuhchang Hwang were named JD.COM Chair in Operations and Supply Chain Management, Chengwei Ventures Chair in Entrepreneurship and La Caixa Chair in Accounting, respectively. In June 2018, Prof. Zhao also received the 2018 Emerald Literati Award for Excellence for his work entitled “Analysing customer behaviour in mobile app usage” which aims to help app developers better understand user behaviour.

Former Prime Minister of France Jean-Pierre Raffarin joined CEIBS’ faculty as a Distinguished Professor in late-February of this year. The announcement followed his appointment to the CEIBS Board in November 2015. Prof. Raffarin was subsequently awarded the Charles De Gaulle Chair in Global Leadership at CEIBS, a position in which he will play a significant role in the school’s efforts to educate socially responsible business leaders of today and tomorrow.

In a list published in the May issue of Scientometrics, CEIBS Distinguished Chair Professor of Management and ABN AMRO Chair in Management Jiing-Lih Larry Farh was named in the top 1% of the most cited 1% researchers from among nearly 4,500 authors from 914 universities in 64 countries and territories. In addition, Prof. Farh was the only researcher from mainland China to make the list.

In July, CEIBS Professor of Finance and Accounting Oliver Rui was named among the Best Papers Award winners during the World Finance Conference. His paper “Analyst Team Diversity and Analyst Performance” received an Honourable Mention from among more than 200 submissions presented at the event. In conducting research for the paper, Prof. Rui used stock market forecasting to explore how diversity affects the efficiency and cohesion of teams.

Also in July, CEIBS Adjunct Professor of Economics and Finance Sheng Songcheng was appointed as a Counsellor of the Shanghai Municipal People’s Government by Deputy Secretary of the CPC Shanghai Committee and Mayor of Shanghai Ying Yong. Prof. Sheng was among the first to introduce western monetary financial theory into China and is one of only 30 scholars and experts who have, to date, been appointed to serve as part of the city’s official brain trust.

In early August, CEIBS Associate Professor of Management Han Jian was named the recipient of the Academy of Management’s 2018 Human Resource Division Innovative Teaching Award in recognition of her work entitled “Integrating Reflection into Executive Education.” The award was presented in recognition of Prof. Han’s innovation in the classroom and leadership in disseminating her innovations in the teaching of human resource management.

CEIBS teams dominated the CEEMAN and Emerald Case Writing Competition in 2018, taking two of the top three spots at the September award ceremony. “WinChannel's Digital Gambit to Revitalize Rural China” by CEIBS Associate Professor of Management Daniel Han Ming Chng and Associate Professor of Strategy Peter Moran was declared the overall winner while “Advantech: Evolution of Its IoT Ecosystem Strategy” by Lecturer of Strategy Guo (Ginkgo) Bai and MBA2019 student Zhenrong (Edison) Wang was named second runner-up. Both papers were co-authored by Dr. Liman Zhao and were produced with the support of the CEIBS Case Center. The occasion also marked the first time two CEIBS case studies finished in the top three positions at an international case writing competition.

On September 11, a new chapter in CEIBS’ history began as CEIBS Honorary President (European) Pedro Nueno handed over his duties to in-coming CEIBS President (European) Dipak Jain. Prior to joining CEIBS, Professor Jain served a as Dean of both INSEAD and Kellogg School of Management. In his first official address, he explained that his focus as President would be on CEIBS’ internationalisation by way of providing an understanding of and entry into the Chinese market.

In late September, former World Trade Organisation Director-General and Notre Europe Honorary President Pascal Lamy was officially announced as the latest member of the CEIBS faculty as a Distinguished Professor. Prof. Lamy made his first official visit to CEIBS this December, and over the course of this three-year tenure he will work to develop new ideas and research designs as well as engage in intellectual discourse and projects primarily aimed at fostering greater understanding between China and Europe.

December 14, 2018. Shanghai – 2018 was both an exciting and inspirational year at CEIBS. We take another look at some of the highlights, milestones, and firsts from the past 12 months.

Opening the calendar year, CEIBS accepted an invitation to join the Asian Management Research Consortium. The AMRC focuses on promoting networking and research collaboration among Asia’s top business schools. In the process of accepting the invitation, CEIBS also became the first business school from Mainland China to be included in the prestigious academic group.

On January 29, the CEIBS MBA moved up 3 spots to #8 in the Financial Times ranking of the world’s top 100 full-time MBA programmes. In doing so, CEIBS made its way back into the top 10 and cemented its position as #1 in Asia according to the world’s most authoritative business school ranking.

On March 21, Polish Ambassador to China, H.E. Mr. Wojciech Zajączkowski visited the CEIBS Lujiazui Institute of International Finance where he exchanged views on Sino-Polish economic and academic cooperation with CLIIF Director and CEIBS Adjunct Professor of Finance Jiang Jianqing and CEIBS President Li Mingjun.

On March 20, CEIBS organised its first ever event in Cote D’Ivoire, with Vice President & Dean Professor Ding Yuan speaking on the timely topic of investment opportunities available through the China-led Belt and Road Initiative (BRI). The event was also an opportunity for alumni from Francophone Africa to gather and network with guests interested in CEIBS and its programmes.

Also in late-March, CEIBS hosted the finals of the 2018 INNOVATEChina global business plan competition, bringing together teams from top business schools across five continents. The theme of this year’s competition was (Re)Inventing Entrepreneurship, and the top prize was won by a team from the Yale School of Management for designing an app that helps China’s elderly population find and join social activities

In May 2018, CEIBS officially partnered with École hôtelière de Lausanne to jointly launch a new Hospitality Executive MBA (HEMBA) Programme to address the growing need for talented people in the service industry. CEIBS and EHL then teamed up again in November to co-host the First Global Service Excellence Forum at our Shanghai Campus.

TEDxCEIBS 2018 landed at the CEIBS Conference Centre on May 26. The event drew a crowd of more than 700 guests who listened as pioneering leaders from industries such as architecture, food and beverage, healthcare, and entertainment shared their thoughts on how the concept of ‘origin’ has impacted their lives.

In June, CEIBS Vice President and Dean Ding Yuan visited the Charles de Gaulle Foundation (FCG) in Paris where he signed an agreement to establish the Charles de Gaulle Chair in Global Leadership. The chair was subsequently awarded to former French Prime Minister and CEIBS Distinguished Professor Jean-Pierre Raffarin.

On July 17, CEIBS kicked off the 4th Europe Forum series at Munich’s BMW Welt. The Munich event focused on the rise of the digital economy and the of role digital finance in fostering Sino-European cross-border integration and innovation. Two days later, CEIBS hosted the second leg of the forum series in London with a focus on potential opportunities for China-UK collaboration in the area of fintech.

In the first week of September, during a ceremony attended by more than 70 guests, former Prime Minister of France and CEIBS Distinguished Professor Dominique de Villepin was inaugurated as the new Chairman of the CEIBS International Advisory Board. As the head of the IAB, Prof. de Villepin will lead a committee of eminent leaders from the international business community in advising the school’s leadership on various strategic issues.

September was also a bittersweet time for many at CEIBS, as Professor Pedro Nueno took a step back from his role as CEIBS President (European) to begin a new chapter as CEIBS Honorary President (European). The historic moment was marked with an official ceremony during which the school also welcomed his successor CEIBS President (European) Dipak Jain.

On September 25, the historic Prague Castle played host to the third leg of the 2018 Europe Forum series where the focus this time was on China-CEE cooperation. The event welcomed nearly 200 participants, including China’s new Ambassador to the Czech Republic, H.E. Jianmin Zhang, for an in-depth discussion on how China and the countries of Central and Eastern Europe can work together to drive mutual economic growth.

From September 28 to 30, CEIBS held its largest ever European alumni reunion in Berlin. The gathering attracted over 80 MBA, EMBA, GEMBA and FMBA alumni from over 10 countries including the UK, France, Poland, the Netherlands, South Africa, and China, representing graduating classes dating back as far as 1998 and also including students from the current MBA2019 cohort.

In October, the CEIBS Global Executive MBA came in at #5 in the Financial Times ranking of the world’s top 100 EMBA programmes, moving up nine spots from the previous year. Following the #8 ranking for the CEIBA MBA in January, this made CEIBS the first ever Asian school to have two programmes in the FT’s top 10. It also placed CEIBS Global EMBA as the highest-ranked stand-alone programme in the world.

Paris was the scene of the fourth CEIBS Europe forum of 2018. On October 19, more than 300 participants gathered in the French capital for a discussion about opportunities for Chinese and French enterprises to collaborate in the field of artificial intelligence. The forum also explored different approaches to AI as well as its potential impact on the field of medicine.

Less than a week later, about 200 participants from both the Chinese and Swiss healthcare industries gathered in Zurich for the final leg of the Europe forum series. The event highlighted innovations in smart healthcare products and services, how to leverage smart healthcare technology as a way to reshape the industry, and how China and Switzerland can work together in the field.

In November, CEIBS Africa launched a new Business Accelerator Programme at our Accra Campus. The initiative is aimed at providing African enterprises with the support needed for growth, increased revenue, and profitability. Fourteen businesses made up the initial batch of the programme, in which they will receive mentoring from both local and Chinese peers as well as access to much needed inputs, new markets and industry experts.

December 13, 2018. Zurich – What a busy year it’s been for CEIBS alumni in Europe! Here’s a recap:

The first ever Chapter Head meeting, hosted at CEIBS Zurich campus in January, set the goalposts for the year ahead.

We had three chapter council re-elections with the UK, Spain and France all welcoming new leadership.

Professors Xu Bin, Oliver Rui, Zhang Yu, Jeff Sampler, Juan Fernandez and CEIBS Honorary President (European) Pedro Nueno were among the faculty who visited and hosted events for European chapters. They shared their insights on an array of hot topics such as the US-China trade dispute, singles day and Brexit.

The CEIBS 1+1 series was launched with President (European) Prof. Dipak Jain leading events in Munich, London and Paris.

We had numerous regional meet-ups including a Design Thinking Workshop led by the Germany chapter, a Chinese New Year banquet in London, the first CEIBS gathering in Amsterdam and dumpling making in Zurich.

Finally, in September, our largest ever CEIBS European Alumni Reunion took place in Berlin with over 100 alumni, faculty and friends of the school from across Europe and China coming together, united by a common bond: CEIBS.

December 11, 2018. Shanghai – Former Director-General of the World Trade Organisation (WTO), Pascal Lamy says WTO reform is just a part of the answer in addressing the current push back on trade, and needs to be complemented by strengthening domestic systems to lessen the pain that naturally comes from engaging in open trade. He made the comments during a Master Class at China Europe International Business School (CEIBS) this evening in his first major speech since joining the CEIBS faculty as Distinguished Professor earlier this month.

“The more [open trade] is efficient for many, the more it is painful for some,” he explained. “The US has the weakest social system because the American Dream is that everybody has a chance; it’s up to you to take [the chance], not for the state to address problems of inequality.”

Lamy believes more needs to be done to address the concerns of those who have not benefited from open trade as much as others, as this would help stem the anti-trade, anti-globalisation wave now seen in sections of the global economy.  “Open trade is good overall; but telling those who lose from it that ‘it’s good for many people, too bad it’s not good for you’ doesn’t work anymore,” he told an audience of about 300 that turned out to hear his views on whether open trade is in danger. There is a need, he said, to address issues such as unemployment and pensions, and other social safety nets that can effectively alleviate any negative fallout from economies engaging in open trade.

During his speech, he outlined the origins of trade opening, the current climate towards it, and where we need to go from here. He explained that, for several decades, open trade had benefited from a convergence of five cylinders that powered its growth: doctrine, action, technology, finance, and results. But times have changed. “This convergence is now under strain.  If we look at recent developments, now each of the five cylinders has a problem and the engine has lost a lot of power,” he said.  

In the past, Lamy said, there had been rapid globalisation of the financial industry, with liberalisation of capital flow and deregulation of financial systems in some countries spurring investments abroad. The last global financial crisis, however, had eroded many of those gains.

“The US financial system exploded with the sub-prime crisis of 2007/ 2008 which led to a global economic crisis which has left very serious, very severe, and lasting consequences in many countries: recession, shrinking public expenditure as [the funds were] pumped into restructuring bankrupt financial systems,” Lamy said. “The reaction was to re-regulate the financial industry, which led to a re-clustering of the financial industry which had been de-clustered in the previous period.” In China, he added, the result was disruption to the progress being made in trade opening and liberalisation, and in addressing the issue of the level of support provided to the country’s state owned enterprises. “In order to cope with this crisis, China [resumed] growing the part of the Chinese economy under state command. This is one of the consequences of the 2008 crisis,” he said.

Lamy also told the audience that, whereas in the past, concrete action was being taken that contributed to growth and “a period of happy globalisation”, in recent years these efforts have become less efficient – both at the international and domestic level. The WTO, he said, is using the outdated rule book of the 1990s, is less efficient at helping ensure there is a level playing field and open trade, and is also less efficient at distributing the benefits of global trade. “The number of losers might not have been bigger, but the treatment of the losers was harsher, thus creating discontent; hence the beginning of these populist, anti-trade stances which we have seen mostly in the US and, to a lesser extent, in Europe,” said Lamy.

He also pointed to the difference between the results of open trade seen then, as opposed to now. In the past, open trade played a major role in expansion of international trade and economic growth, which led to an increase in welfare that then helped make any pain experienced easier to bear. This then led to the formation of global supply chains, with a move away from producing one final product to instead focusing on market segments where countries had a comparative advantage.  But with the financial crisis-induced growth slowdown of the last 5-10 years, the results have been less impressive, inequalities have increased, populism is now spreading in many countries, and protectionism is on the rise, he said.

In the past, there had been a broad consensus, a doctrine, that open trade is a win-win game, that it creates efficiencies and that for it to work there needs to be a reasonable playing field. There was also the recognition that there would be some pain for those who have to adjust to the new competitive landscape of open trade, and that domestic systems would be put in place to address this. “[The view was that] it works because it is painful and it is painful because it works. [It was accepted that] at the domestic level, you need proper systems that help reduce social insecurity,” Lamy explained.

But Donald Trump’s election changed all that.

The former WTO leader told the audience that Trump’s approach to trade is not win-win, but is instead a zero sum game, as if the US were a “big real estate company” and the aim is to “buy cheap and sell pricey”. “That’s totally at odds with the previous doctrine,” said Lamy. Adding that Trump holds the mercantilist view that exports are good and imports are bad, he argued that the US President’s obsession with his country’s  trade deficit is misplaced. “If Trump measures his success [by how well he does] in shrinking the US trade deficit, it’s going to be a failure. Most of us know the US trade deficit is not a trade problem but a structural deficiency [because US consumers spend more and save less than most].” Lamy also noted that, in addition to the Trump effect, the doctrine has also changed as a result of changing times. For example, whereas protecting producers used to be the main driver behind erecting hurdles to open trade, today non-tariff measures (standards, regulations, certification, etc.) are increasingly important.  “Now non-tariff measures are probably four times more important than tariff measures in trade,” said Lamy. “We have a series of obstacles to trade, leading to difficulties that were not there before. The consensus we previously had has been eroded.”

Turning his attention to another cylinder of open trade, Lamy made the point that in the past technology had helped fuel the expansion of international trade by reducing the costs associated with the distance between trading partners. In contrast, technology now poses a challenge as new frameworks need to be established to deal with issues related to the administration, access, protection, and globalisation of data. This is especially formidable as the US, EU, and China each have different approaches to how they handle data, he said.

He also noted that, in addition to the challenges that have emerged for each of the five cylinders that once used to bolster the argument for open trade, current tensions have been fuelled by the rising rivalry between the US and China. Unlike the previous US approach of accepting China’s rise as inevitable and encouraging the country to take on the responsibility that accompanies its increasing power, Trump’s approach is drastically different. The focus now is on curtailing China and, according to Lamy, the current US strategy is to undermine China’s ability to grow.

“China’s legitimacy lies in its growth performance, that’s the view both internationally and domestically. The reality is that this outstanding growth performance owes quite a lot to international trade. A lot of Chinese growth was through exports, it benefited from low labour costs and will still do so for the next 10-20 years,” said Lamy. He acknowledged the role domestic consumption has played in that growth but believes exports will continue to grow, leaving the US unimpressed by China’s increasing imports and shrinking trade surplus.

Faced with these challenges, Lamy provided suggestions on what can be done to preserve open trade in the future. These include strengthening the multilateral system, beginning with the multilateral trade system, meaning reforming the WTO. The need for a reformation of the organisation is the only thing Trump is right about when it comes to trade, he quipped. He specifically spoke of the need for the WTO to address the issue of subsidisation, an area in which he believes it is too weak. This, he believes, needs to be done in the short term and would help address the long-standing issue of whether China’s SOEs have an unfair advantage. He also spoke of the need to address, in the short term, US concerns about whether or not there is a level playing field when it comes to open trade.

Issues that he believes need to be addressed in the medium term include non-tariff measures which go beyond the scope and mandate of the WTO such as standardisation, which is vital for economies of scale to be effective; wider environmental issues; and providing a level playing field when it comes to data. There will also be a need to address the stabilisation of the financial industry, which needs to be globally regulated to prevent a repeat of the last financial crisis, as well as a reform of the international monetary system, including reassessing the US dollar’s role as a global currency, he said.  “I don't think, in a world which is globalised the way it is, we can very long allow the dollar to keep its supremacy. There will have to be some sort of diversification of the currency system worldwide,” Lamy added.

He stressed that in order for the suggestions he proposed to work, they need to be balanced with strengthened domestic systems.

Lamy remains optimistic that, despite the push back on open trade and anti-globalisation sentiments from some quarters, there will be no widespread move away from globalisation. The US’ efforts may lead to shifts in the global supply chain, but it is merely a redistribution, not a reduction. “Trump is trying to de-globalise the US and China.  He probably will get that done to some extent for socks, washing machines, ships; but this decrease in globalisation will be compensated for by an increase in globalisation elsewhere,” said Lamy. “This is why I am not that pessimistic, because globalisation offers good solutions to partial de-globalisation of this kind.”

Lamy also believes that the current extent of the world’s globalisation can withstand any shocks. He pointed to Britain’s messy attempt to extricate itself from the EU as one example of “mini” de-globalisation, saying it was a good example of why integration is good and why de-integration is difficult. “I don't think de-globalisation will happen,” he said.

Lamy’s Master Class is the final one in a series hosted by CEIBS this year to mark the 15^th anniversary of the China-EU Comprehensive Strategic Partnership. As CEIBS Vice President & Dean Ding Yuan noted in his introduction, Lamy’s speech came at the perfect time to shed light on trade issues and at a historic point where the global economy is attempting to “navigate unknown waters”.

For his part, Lamy welcomed the opportunity to spend a week at CEIBS in his capacity as a member of the faculty. “CEIBS is a success story in EU-China cooperation that deserves to be celebrated,” he said. “I’m happy to share some of my knowledge and experience with faculty and students here. Teaching is also learning and I consider that to keep learning at my very advanced age is a huge privilege, which I am happy to share with you.”

Lamy’s visit to CEIBS began on Monday with a day of interviews with BBC TV, WSJ, ARD German Radio, Spanish media group Vocento, China Daily, China Global Television Network (CGTN), and Yicai Global. Ahead of his Master Class this evening he spoke with Chinese journalists. On December 12, he will lecture during the Key Talent Programme for Chinese Companies Going Global. The lecture will be followed by a frank discussion with CEOs from MNCs doing business in Asia on how they can adjust their strategy as we enter the next decade. The discussion will take place against the backdrop of the possibility that multilateral trading blocks may give way to bilateral ones. During his visit, Lamy will also have several other opportunities to interact with the school’s faculty, students, and alumni.

During his three-year tenure as CEIBS Distinguished Professor, Lamy – who is also Honorary President of Notre Europe – will collaborate closely with CEIBS faculty to develop new ideas and research designs as well as engage in intellectual discourse and projects primarily aimed at fostering greater understanding between China and Europe. He may also touch on other global issues that are both within his areas of expertise and that will also provide further enlightenment for CEIBS students, alumni, and faculty.

December 6, 2018. Shanghai – November was a season of harvest for CEIBS. On November 24, nearly 800 students from CEIBS’ Shanghai, Beijing, and Shenzhen campuses gathered together for the 2016 EMBA/FMBA graduation ceremony. Professor Wu Jinglian, a researcher at the Development Research Center of the State Council and Honorary Chairman of the International Economic Association, was also in attendance to officially accept his appointment as CEIBS Lifetime Honorary Professor.

The event’s morning session kicked off with a series of "unforgettable lessons" imparted by CEIBS Associate Professor of Strategy Chen Weiru, Professor of Entrepreneurial Management Practice Gong Xi, and Professor of Accounting Su Xijia.

After lunch, the 2016 EMBA/FMBA graduation ceremony officially began. President Li Mingjun, President (European) Dipak Jain, Vice President and Dean Ding Yuan, Vice President, and Co-Dean Zhang Weijiong were also in attendance along with numerous members of the CEIBS faculty.

Promoting entrepreneurship and shouldering social responsibility

The graduation ceremony was co-chaired by Associate Dean, EMBA Programme Director, and Economics Professor Zhu Tian together with Associate Dean, FMBA Programme Director, and Professor of Finance and Accounting, Zhao Xinyu.

President Li first congratulated the graduates on their transition from students to alumni. He noted that everyone had spent an unforgettable time at CEIBS over the past two years, during which they had also witnessed the moment when the dream of Central Europe came true. He also stated that, after graduating, everyone could continue to partner with their alma mater as one of the more than 22,000 CEIBS alumni around the world. "We are in an era full of opportunities and changes,” he said. “The private economy has become an important force in China's economic development. The deepening of reform and sustainable development of the country also requires the unremitting struggle and firm confidence of business elites in all fields. The Chinese dream of the great rejuvenation of the Chinese nation is rooted in our hearts and affects our destiny. It also carries the dream of every business elite. I hope that everyone will not only continue to love our motherland, but also be loyal to the motherland, and continue to uphold the spirit of CEIBS."

Possessing the idea of ​​freedom and the spirit of independence

Subsequently, Professor Chen Jieping delivered a speech in which he pointed out that in an era when rules and laws are constantly being subverted, the problems that need to be solved are more and more complicated, and that the only way for us to act is to continue to learn and to be good at learning. He made three suggestions: First, we must be critical in our thinking when learning and not rely solely on authority; second, we should read books selectively and avoid blindly worshipping publications; and, third, we mustn’t be too eager for quick and instant success. Professor Chen further stated that he hopes the current graduates will adhere to the CEIBS motto of “Conscientiousness, Innovation, and Excellence”.

The answer to the future is not in the past’s success

Link Doc Founder Zhang Tianze spoke on behalf of the 2016 EMBA graduates. He said: "Over the last two years, we were always filled with the energy and insight required to confront difficulties. CEIBS fed us with knowledge and inspired us with its spirit, so that we would be comfortable self-examining and improving ourselves. This two-year journey has truly demonstrated the CEIBS motto of ‘Conscientiousness, Innovation, and Excellence’. CEIBS has also gifted us more than I have mentioned above. We are so fortunate to have had such a group of fellow professionals and like-minded friends. So I would like to say, from now on, from this moment, since we have now graduated, we are CEIBS.”

Shanghai Pusu Capital Management Co Ltd. Vice President Liu Jian was likewise delegated to make a speech on behalf of the 2016 FMBA graduates, in which he said, “At CEIBS, we met a group of schoolmates of similar age and with similar interests. CEIBS’ mission to raise leaders with a strong understanding of ‘China Depth and Global Breath’ and who can proactively shoulder social responsibilities should be kept in mind and be practiced. Only by doing so, by continually acting in good faith and with curiosity, will we have the confidence to receive positive feedback from the world and to grasp any gifts which come our way with the passage of time.”

Professor Wu Jinglian named first Lifetime Honorary Professor at CEIBS

It was also an honour for graduates to witness the historical moment when Professor Wu Jinglian was awarded as 'the first Lifetime Honorary Professor at CEIBS' by Professor Ding Yuan. Professor. “After 24 years of exploration and thanks to every single staff member and student, CEIBS has grown into an outstanding business school with Chinese depth and global breadth,” Prof. Wu said. “If you would allow me to express how proud I am of CEIBS' contributions to both the Chinese and global economy and how grateful I am to the more than 22,000 alumni around the world. I will definitely stay true to the original mission, which is, together with my dear colleagues and students, to continually make efforts to increase both domestic and global economic prosperity. Graduation is not the finish line, it is a fresh start. CEIBS will continue to accompany each graduate, sharing in their success and joy in the future.”

CEIBS will walk with you

Finally, professors, friends, and relatives observed as the 2016 EMBA Good Faith Award, FMBA Student Scholarship, and Outstanding Graduate Award were handed out in succession. All graduates then received their MBA certificates. The award marked the passing of graduates into a new stage in their life in which they will be expected to shoulder more social responsibilities.