China is considered the most disruptive economy on Earth. That’s because of its rapid economic growth, technological innovation, and growing middle class. In this article, we explore the key drivers of China’s economic disruption and its impact on education in the country.
With one of the fastest-growing economies, China is among the most powerful countries in modern history. Its large economy can be attributed to its manufacturing sector and exports of manufactured goods. China has also made significant progress in poverty alleviation, lifting around 800 million people out of poverty and improving living standards. While its economy suffered during (and after) the coronavirus pandemic, it is slowly showing signs of stabilizing.
China’s economic strength is an example of “creative destruction,” a term coined by Austrian economist Joseph Schumpeter. It describes how an economy is continually restructured and reformed, where new, dynamic sources of growth replace old inefficient ones. Local governments in East Asia also support local businesses of all sizes, empowering entrepreneurs and fostering innovation.
For the past 40 years, China has seen amazing economic growth. As a result of its rapid economic growth, technological innovation, and growing middle class. In 2001, China had 11 companies listed on the Fortune Global 500. In 2022, it had 129.
China has also generated more billionaires than any other country in the world, including Zhang Yiming (founder of ByteDance, the company behind TikTok), Robin Zeng (founder of one of the world’s largest suppliers of batteries for electric vehicles), and Jack Ma (co-founder of Alibaba Group, one of the world’s largest e-commerce companies).
However, with great power comes great responsibility – and higher education institutions in China, like Cheung Kong Graduate School of Business (CKGSB), are extremely aware of this. Tao Zhigang, Professor of Strategy and Economics and Associate Dean at CKGSB, says, “The idea of economic disruption is extremely important because it holds the key to economic growth on the one hand and social harmony on the other hand.” (02:07)
“We expect our students to be global leaders who are open-minded, long-term-oriented, socially responsible, and innovation-oriented,” adds Teng Bingsheng, Professor of Strategic Management and Associate Dean. (00:57)
A huge source of China’s economic disruption is its startup ecosystem and entrepreneurs. Second only to the United States, China has produced a large number of unicorn companies. These include companies like Douyin (TikTok’s application for China), Shein (fast fashion e-commerce platform), and WeBank (China’s first digital bank). As you can see, most of the growth comes from high-tech sectors that focus on innovation and technology. Government initiatives, such as designated high-technology “zones,” tax incentives, and financial support, have contributed to this tech- and innovation-centric entrepreneurship.
With the rise of Chinese brands like TikTok and Shein, international students are more interested in studying in China. CKGSB works with prominent Chinese companies like Tencent, Baidu, and Alibaba, as well as leading institutions like Cambridge University, to develop programs that support entrepreneurs.
“Our mission is to leverage the resource of our global faculty to produce, to encourage, and to incubate the best global Chinese company,” says Sun Baohong, Dean’s Distinguished Chair Professor of Marketing and Associate Dean at CKGSB. (00:44)
With both Chinese entrepreneurs and Western managers in the classroom, CKGSB also fosters an international environment for everyone to grow. To date, over 100 co-founders and founders have participated in a program at CKGSB.
Professor Baohong explains, “We will be the bridge between the East and the West, and we continue to develop management theory from a global perspective. So, it’s a very unique position, and it’s a very unique contribution we can make to the business community and to the academic community.” (03:10)
Curious about what it’s like to study in China? Reach out directly to a current or past student in China to find out!
