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Economic Growth Draws Companies to Asia. Can They Handle Its Authoritarian Regimes?

by Sean Silverthorne

The efficiency of one-party governments might seem appealing, but leaders need a deep understanding of a country's power structure and "moral economy," says Meg Rithmire. Her book Precarious Ties: Business and the State in Authoritarian Asia explores the delicate relationship between capitalists and autocrats in the region.

The Beauty Industry: Products for a Healthy Glow or a Compact for Harm?

by Geoffrey Jones

Many cosmetics and skincare companies present an image of social consciousness and transformative potential, while profiting from insecurity and excluding broad swaths of people. Geoffrey Jones examines the unsightly reality of the beauty industry.

Will Global Demand for Oil Peak This Decade?

by Alvin Powell, Harvard Gazette

The International Energy Agency expects the world's oil demand to start to ebb in the coming years. However, Joseph Lassiter and Lauren Cohen say the outlook will likely be more complex, especially as poor and fast-growing regions seek energy sources for their economies.

The Entrepreneurial Journey of China’s First Private Mental Health Hospital

Re: William C. Kirby

The city of Wenzhou in southeastern China is home to the country’s largest privately owned mental health hospital group, the Wenzhou Kangning Hospital Co, Ltd. It’s an example of the extraordinary entrepreneurship happening in China’s healthcare space. But after its successful initial public offering (IPO), how will the hospital grow in the future? Harvard Professor of China Studies William C. Kirby highlights the challenges of China’s mental health sector and the means company founder Guan Weili employed to address them in his case, Wenzhou Kangning Hospital: Changing Mental Healthcare in China.

Sweden’s Northvolt Electric Battery Maker: A Startup with a Mission

Re: George Serafeim

In Stockholm, Sweden an upstart battery maker, Northvolt, is trying to recreate the value chain for European car manufacturers making the switch to EVs. With two founders from Tesla and two experienced financiers at the helm, the company seems bound for success. But can they partner with government, scale fast enough, and truly be part of the climate solution? Harvard Business School professor George Serafeim discusses what it takes to scale a business—the right people, in the right place, at the right time—with the aim of providing a climate solution in the case, “Northvolt, Building Batteries to Fight Climate Change.” As part of a new first-year MBA course at Harvard Business School, this case examines the central question: what is the social purpose of the firm?

How SHEIN and Temu Conquered Fast Fashion—and Forged a New Business Model

by John Deighton

The platforms SHEIN and Temu match consumer demand and factory output, bringing Chinese production to the rest of the world. The companies have remade fast fashion, but their pioneering approach has the potential to go far beyond retail, says John Deighton.

BMW’s Decarbonization Strategy: Sustainable for the Environment and the Bottom Line

Re: Shirley Lu

In mid-2022, automakers, consumers, regulators, and investors were focusing on the transition from internal combustion engine (ICE) vehicles to electric vehicles (EV). While this would reduce tail-pipe emissions, it ignored the fact that the production of EVs—and especially their batteries—increases emissions in the supply chain. Many automakers were announcing deadlines by which they would stop selling ICE vehicles altogether, buoyed by investment analysts and favorable press. But BMW decided to focus on lifecycle emissions and pursued a flexible powertrain strategy by offering vehicles with several options: gasoline and diesel-fueled ICE, plug-in hybrid electric vehicles, and battery electric vehicles. That approach received a frostier reception in the stock market. Assistant Professor Shirley Lu discusses how BMW plans to convince stakeholders that its strategy is good for both the environment and the company’s financial performance in the case, “Driving Decarbonization at BMW.”

University of the Future: Finding the Next World Leaders in Higher Ed

by Dina Gerdeman

Which universities will step into the void as American colleges decline? In the book Empires of Ideas, William Kirby explores how the history of higher education in the US, China, and Germany might shape its future.

The Emergence of Mafia-like Business Systems in China

by Meg Rithmire and Hao Chen

This study sheds light on the political pathology of fraudulent, illegal, and corrupt business practices. Features of the Chinese system—including regulatory gaps, a lack of formal means of property protection, and pervasive uncertainty—seem to facilitate the rise of mafia systems.

Party-State Capitalism in China

by Margaret Pearson, Meg Rithmire, and Kellee Tsai

China’s political economy has evolved from “state capitalism” to a distinctly party-driven incarnation. Party-state capitalism, via enhanced party monitoring and industrial policy, deepens ambiguity between the state and private sectors, and increases pressure on foreign capital, prioritizing the regime’s political survival above all.

Restarting Under Uncertainty: Managerial Experiences from Around the World

by Raffaella Sadun, Andrea Bertoni, Alexia Delfino, Giovanni Fassio, and Mariapaola Testa

A survey of 50 companies across countries and industries reveals business leaders are hard at work adapting to the COVID threat. Research by Raffaella Sadun and colleagues. Open for comment; 0 Comments.

The Rise of the Investor State: State Capital in the Chinese Economy

by Hao Chen and Meg Rithmire

Researchers document and explain the rise of a novel form of intervention on the part of the Chinese state: the expansion of state capital beyond ownership of state firms.

The One Good Thing Caused by COVID-19: Innovation

by Hong Luo and Alberto Galasso

Hong Luo and Alberto Galasso see risk-mitigating innovation everywhere the virus spreads. Open for comment; 0 Comments.

China Tariffs and Coronavirus a Double Hit to American Retailers

by Michael Blanding

American retailers have yet to pass along higher prices caused by Chinese tariffs, but shrinking product demand caused by the coronavirus could change that, warns Alberto Cavallo. Open for comment; 0 Comments.

Where Do Workers Go When the Robots Arrive?

by Rachel Layne

Marco Tabellini and colleagues investigate where workers go after losing their jobs to automation and Chinese imports. Open for comment; 0 Comments.

Is There a Winner in Huawei’s Digital Cold War with the US?

Re: William C. Kirby

Bill Kirby discusses his case study of China-based Huawei’s growth and ultimate confrontation with the United States government, and China's response to the coronavirus. Open for comment; 0 Comments.

Tariff Passthrough at the Border and at the Store: Evidence from US Trade Policy

by Alberto Cavallo, Gita Gopinath, Brent Neiman, and Jenny Tang

Collecting and analyzing microdata on prices and the reaction of importers, retailers, and exporters to US trade policy since 2018, this study finds most of the tariffs’ incidence rests with the US firms.

Undisclosed Debt Sustainability

by Laura Alfaro and Fabio Kanczuk

Presenting a scenario in which non-Paris Club lending and borrowing is fully disclosed, this study illustrates that transparency has potential effects of decreased debt sustainability for investors such as China, and significant welfare gains for recipient countries. Effects are particularly strong if the debt is large.

Varieties of Outward Chinese Capital: Domestic Politics Status and Globalization of Chinese Firms

by Meg Rithmire

Most popular and scholarly writing about China’s global push overemphasizes the power of the state. This paper explains how three types of domestic Chinese capital—state capital, private capital, and crony capital—differ in political vulnerability and pursue globalization in different ways. All prefer capital openness, but they do so for different reasons.

How Wegmans Became a Leader in Improving Food Safety

Re: Ray A. Goldberg

Ray Goldberg discusses how the CEO of the Wegmans grocery chain faced a food safety issue and then helped the industry become more proactive. Open for comment; 0 Comments.