Photo credit: University of Kent
Today, one of my friends visited me, sharing his recent projects related to China. One of them is helping a Chinese technology company scout Italian design schools. This company is reinventing itself through acquisition and operation of vocational training schools, first in China and overseas the next stage.
This has become a trend in China these days. I often receive inquires from different Chinese companies. They have a "shopping list" of targets that they believe will help generate revenues or profits, not necessary to be in the areas of their expertise. I categorize them into two groups of needs:
1) Proven technologies that Chinese companies can take over and plug into China market. They told me, "we do not have time to do R&D. If the technology works in the U.S., we may be able to make it work in China too. "
2) Companies with profits. Publicly listed Chinese companies are under mounting pressure to boost bottom line. Traditional industries such as manufacturing are facing most challenges of over capacity and price erosion. Restructuring is under way, a long and painful process. One of the measures is to acquire a profitable company.
In the next 5 years more Chinese companies will reinvent themselves. Those that are most adaptable will survive and thrive.