Rebranding China

- It is very possible that we underestimate the Chinese innovation capability and how fast the new Chinese economy will continue to grow, said Chris Rynning.

He is an international investor engaged in fund investment in China related business for the last 20 years and spoke at the monthly BI- Fudan MBA Leadership Salon yesterday. 


Text and photo: Julie Gjørven

Chris Rynning believes global leaders need to rethink their outdated perception of China as a copy-culture very dependent on the manufacturing industry. He does not believe the Chinese economy will experience a hard landing, but rather a double-digit growth after a period of the “new normal” after some years of correction.

- The growth and innovation in China is happening in the technology industry, the health and social welfare industry, education, the finance sector and the clean-tech industry. These industries should be interesting for global investors and should be where the business opportunities are, he said at the event.

Speed to the market

- He believes the large-scale innovation in China will happen in the business processes and market entry strategies, not only in product development.

- Look at the Xiaomi Mi3/4 telephone, it is considered as a copy of the IPhone 6. Does it really matter? The fact is that they are being innovative and creative in how they use the internet to sell and promote the telephone. In four years, they have had a massive success and become a 50 billion dollar company, he said.

- The biggest challenge for products today is not to be first, best or cheapest. It is to be noticed and enters the market with fast speed.

Upside down

- The Chinese ability for change and adaption to a new knowledge intensive economy will also take many western countries by surprise, according to Chris Rynning.

- They already have proven that they can turn businesses upside down. Many people in Europe do not even know the names of people behind the success stories here, and have not woken up to the modern industry revolution in China, he said.

- There are of course many challenges with the transition from a labour intensive economy to a knowledge intensive economy in China, with particular regard to pollution and the lack of social welfare services. As an investor, I choose to be optimistic and embrace this financial opportunity for development. I also believe that China is one of the few economies in the world that is robust enough to maintain growth in a transition period like this, he said.



Be in the front run

Chris Rynning is certain that China will take care of its much needed rebranding by themselves, and he believes we will see less foreigners run businesses in China in the future.

- To compete with the Chinese in China is tough and extremely competitive. My strategy is to understand what China wants- in brands, resources and knowledge, and be in the front run of that. To invest in Chinese companies going abroad will also be a major trend for foreign finance investment in China, he said.

Enjoy the discussion

The BI–Fudan MBA program organizes the Leadership Salon once a month with different leadership related topics.

- This is my first time. I really enjoyed it, said Yida Zheng.

- To be able to have a discussion with experts and other guests after the seminar is especially nice for me. I work in a French fashion brand in China. We are attempting to move the production to a cheaper country in South East Asia, and I feel these issues are very relevant to me, she said.

Meet old colleagues

- I try to come to the Leadership Salons whenever I have time. As a BI-Fudan alumnus, it is a great opportunity to catch up with friends and make new connections, said Jeffrey Moy.