{"product_id":"the-china-business-conundrum-isbn-9781394294169","title":"The China Business Conundrum","description":"\u003cp\u003e\u003cb\u003eRevealing account of the struggles and surprises when forming a financial joint venture with China\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e\u003ci\u003eThe China Business Conundrum: Ensure That \"Win-Win\" Doesn't Mean Western Companies Lose Twice\u003c\/i\u003e describes former CEO of Silicon Valley Bank (SVB) Ken Wilcox's firsthand challenges he encountered in four years “on the ground” trying to establish a joint venture between SVB and the Chinese government to fund local innovation design—and the Chinese Communist Party (CCP) efforts to systematically sabotage the project and steal SVB's business model. This book provides actionable advice drawn from meticulous notes Wilcox took from interviews with people from all walks of Chinese life, including Party and non-Party members, the business elite, and domestic workers. \u003c\/p\u003e\u003cp\u003eDescribing a China he found fascinating and maddeningly complex, this book explores topics including: \u003c\/p\u003e\u003cul\u003e \u003cli\u003eDifficulties in transplanting SVB's model to China, from misunderstandings about titles and responsibilities to pitched battles over toilet design\u003c\/li\u003e \u003cli\u003eEthics and practices widely adopted by Chinese businesses today and why China must be met with realistic expectations\u003c\/li\u003e \u003cli\u003eWilcox's own honest missteps and the painfully learned lessons that came afterwards\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eEngrossing, enlightening, and entertaining, \u003ci\u003eThe China Business Conundrum: Ensure That \"Win-Win\" Doesn't Mean Western Companies Lose Twice\u003c\/i\u003e is an essential cautionary tale and guidebook for all Western bankers, C-suite executives, consultants, and entrepreneurs seeking to do business within China. \u003c\/p\u003e\u003cp\u003eAcknowledgments xiii\u003c\/p\u003e \u003cp\u003eAbout the Author xv\u003c\/p\u003e \u003cp\u003eAcronyms xvii\u003c\/p\u003e \u003cp\u003eIntroduction xix\u003c\/p\u003e \u003cp\u003ePrologue: the Green Hat Award xxi\u003c\/p\u003e \u003cp\u003eWhy I Wrote This Book xxii\u003c\/p\u003e \u003cp\u003eHow I Structured This Account and Gathered My Information xxv\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart I The Long Lead-up 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Silicon Valley Bank Goes to China: Inadvertent Tech Transfer 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1.1 Why Silicon Valley Bank? The Bank for Innovation 4\u003c\/p\u003e \u003cp\u003e1.2 Why China? 9\u003c\/p\u003e \u003cp\u003e1.3 Why Me? 14\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 It Starts with Guanxi : Kissing Frogs and Finding a Prince 19\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e2.1 A Prince at Last 20\u003c\/p\u003e \u003cp\u003e2.2 Reaching the King 23\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Orienting Ourselves: the Staff, the Teams, and The Runaround 31\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e3.1 Settling In: The Local Staff 32\u003c\/p\u003e \u003cp\u003e3.2 Settling In: The Local Experts 37\u003c\/p\u003e \u003cp\u003e3.3 Getting to Work: The Secret Team 42\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Pains in the Neck: the New Bank’s Location, Organization, and Identity 51\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e4.1 The Org Chart 53\u003c\/p\u003e \u003cp\u003e4.2 Issues to Resolve 68\u003c\/p\u003e \u003cp\u003e4.3 The Letter and What I Learned 71\u003c\/p\u003e \u003cp\u003e4.4 Achieving the Impossible 73\u003c\/p\u003e \u003cp\u003e4.5 December 2011 74\u003c\/p\u003e \u003cp\u003e4.6 Wrapping Up 2011 77\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Slogging Along: Resolving Some of the Major Issues 81\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e5.1 The Breakthrough in the Tea House at the Zigzag Bridge 86\u003c\/p\u003e \u003cp\u003e5.2 A Turning Point 89\u003c\/p\u003e \u003cp\u003e5.3 Put in Our Place 91\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 The Grand Opening and Yet More Licenses We Didn’t Have 99\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e6.1 A License to Wait 101\u003c\/p\u003e \u003cp\u003e6.2 The Worry of Warrants 104\u003c\/p\u003e \u003cp\u003e6.3 Growing Anxiety 105\u003c\/p\u003e \u003cp\u003e6.4 Regulation 106\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Staffing: Ccp Offspring, Parents, and Cultural Differences 111\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e7.1 Recruiting: Sons and Daughters of the Party 112\u003c\/p\u003e \u003cp\u003e7.2 Retaining: The Brain Drain 116\u003c\/p\u003e \u003cp\u003e7.3 Deeper in the Joint Venture 118\u003c\/p\u003e \u003cp\u003e7.3.1 Managing the Lenders 118\u003c\/p\u003e \u003cp\u003e7.3.2 Assisting Lao Ding 120\u003c\/p\u003e \u003cp\u003e7.3.3 The Bank That Didn’t Pay Graft 120\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Where the Money Goes, Finding My Successor, and More About China 123\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e8.1 Seeking a Successor 124\u003c\/p\u003e \u003cp\u003e8.2 Entertainments, 2012 126\u003c\/p\u003e \u003cp\u003e8.2.1 Chinese Medicine 130\u003c\/p\u003e \u003cp\u003e8.3 Reflecting 132\u003c\/p\u003e \u003cp\u003e8.4 Wrapping Up 2012 132\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart II After the License 137\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Hastening the Timeline: the Four-prong Strategy And What “letting the Customer Decide” Really Means 139\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e9.1 Complexities 145\u003c\/p\u003e \u003cp\u003e9.2 Moving Forward, Maybe 148\u003c\/p\u003e \u003cp\u003e9.2.1 How “Letting the Customer Decide” Really Works 151\u003c\/p\u003e \u003cp\u003e9.2.2 Making Progress? 154\u003c\/p\u003e \u003cp\u003e9.3 The Danger of Hope 156\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 The New Sheriff: XI Comes to Power 159\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e10.1 The Party Committee 163\u003c\/p\u003e \u003cp\u003e10.2 Building the Bank’s Culture 164\u003c\/p\u003e \u003cp\u003e10.3 Building Guanxi 168\u003c\/p\u003e \u003cp\u003e10.4 The Carrot Overhead 171\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Irreconcilable Differences: the More We Knew, The Worse Things Looked 177\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e11.1 The Successor Is Named 180\u003c\/p\u003e \u003cp\u003e11.2 Filling in the Blanks 184\u003c\/p\u003e \u003cp\u003e11.3 Wrapping Up 2013 186\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Wrapping Up My Stay: Staff Changes, More Lessons, Still No Rmb 193\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e12.1 I Could Have Gone Home 198\u003c\/p\u003e \u003cp\u003e12.2 Becoming Vice Chairman 201\u003c\/p\u003e \u003cp\u003e12.3 Warrants at Last 203\u003c\/p\u003e \u003cp\u003e12.4 Conversations in Context 205\u003c\/p\u003e \u003cp\u003e12.5 Body Count 208\u003c\/p\u003e \u003cp\u003e12.6 Revolution on the Doorstep 212\u003c\/p\u003e \u003cp\u003e12.7 Leaving 213\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Success in a Fashion: China’s New Tech Bank (which Wasn’t Us), and Being Vice Chairman 217\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart III The Chinese Communist Party 223\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 The Ccp’s Role and Influence 225\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e14.1 “Party, Government, Military, Civilian, and Academic, East, West, South, North, and Center, The Party Leads Everything.” 226\u003c\/p\u003e \u003cp\u003e14.2 The Chinese Banking System and Economy 227\u003c\/p\u003e \u003cp\u003e14.2.1 Chinese Economics 232\u003c\/p\u003e \u003cp\u003e14.3 Opinions of Others About the CCP 237\u003c\/p\u003e \u003cp\u003e14.4 Attitudes of the CCP 239\u003c\/p\u003e \u003cp\u003e14.5 Changes with Xi 241\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15 Practical Guidelines for Working with the Ccp 247\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e15.1 Contracts and the CCP 250\u003c\/p\u003e \u003cp\u003e15.2 CCP Negotiation 251\u003c\/p\u003e \u003cp\u003e15.2.1 Random Observations 256\u003c\/p\u003e \u003cp\u003e15.3 The CCP and Control 258\u003c\/p\u003e \u003cp\u003e15.4 The CCP and History 260\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart IV The other 93 Percent 265\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 16 Chinese Beliefs 267\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e16.1 Chinese Beliefs 269\u003c\/p\u003e \u003cp\u003e16.2 Attitudes Toward Americans 279\u003c\/p\u003e \u003cp\u003e16.3 Overseas Chinese 282\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 17 The Lives of the other 93 Percent 287\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e17.1 The Life of Xiao Hong 290\u003c\/p\u003e \u003cp\u003e17.2 Non-Chinese Living in China 294\u003c\/p\u003e \u003cp\u003e17.3 Strange Things That Happen 295\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 18 Conclusion: Seeking Truth From Facts, Making Sense of It All, and Trying to Predict the Future 297\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e18.1 How Western Companies Fail in China 304\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart V Four years lessons, condensed 317\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEpilogue 325\u003c\/p\u003e \u003cp\u003eReferences 329\u003c\/p\u003e \u003cp\u003eBibliography 331\u003c\/p\u003e \u003cp\u003eIndex 339\u003c\/p\u003e  \u003cp\u003eA 30-year veteran of Silicon Valley Bank (SVB), \u003cb\u003eKENNETH WILCOX\u003c\/b\u003e was the bank’s CEO from 2001 to 2011 and Vice Chairman of SVB’s joint venture in Shanghai (SSVB) until 2019. He is a former member of the board of directors of the Federal Reserve Bank of San Francisco.   \u003c\/p\u003e\u003cp\u003eIn 2011, after a decade as the CEO of a major U.S. bank—Silicon Valley Bank (SVB), at the time the world’s largest lender to the technology and venture capital industries—Ken Wilcox moved to China. There he would establish a bank, a joint venture between SVB and the Shanghai government, to lend to technology startups. \u003c\/p\u003e\u003cp\u003e\u003ci\u003eThe China Business Conundrum: Ensure That “Win-Win” Doesn’t Mean Western Companies Lose Twice\u003c\/i\u003e is an eyewitness account of how that project went awry. But the torturous process of establishing the joint venture bank is just the starting point for this book. Rather than focusing on banking, international relations, or government policy, the book describes the ethics and practices widely adopted by Chinese businesses today, along with the role played by the CCP. \u003c\/p\u003e\u003cp\u003eBased on the meticulous notes Wilcox took and from interviews with people from all walks of Chinese life—Party and non-Party members, the business elite and domestic workers alike—this book explores what Western businesses and, more broadly, Westerners who interact with China on any level must grasp to work constructively with China, including their motivations, myths, and beliefs. Wilcox also provides a valuable first-person account of the rise of Xi Jinping and the internal impact of his early strategies. \u003c\/p\u003e\u003cp\u003eDespite his frustrations, Wilcox also explains how he found China fascinating, entrancing, alluring, and maddeningly complex, with descriptions of the many delightful individuals he met, from the baijiu-loving history buff to the apartment-hopping Chinese instructor. \u003c\/p\u003e\u003cp\u003e\u003ci\u003eThe China Business Conundrum: Ensure That “Win-Win” Doesn’t Mean Western Companies Lose Twice\u003c\/i\u003e earns a well-deserved spot on the bookshelves of all international business leaders seeking to understand the potentially harsh reality of doing business with Chinese companies and how to make the right moves at every step of the process.   \u003c\/p\u003e\u003cp\u003e\u003cb\u003ePraise for THE CHINA BUSINESS CONUNDRUM\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e“I couldn’t put down this engrossing tale of Chinese government partners manipulating and milking SVB to create local competitors. While most victims of this all-too-common swindle quietly slink away, Ken Wilcox has the humility and moxie to go public with this cautionary tale.”\u003cbr\u003e \u003cb\u003e—JAMES McGREGOR,\u003c\/b\u003e author of \u003ci\u003eOne Billion Customers\u003c\/i\u003e \u003c\/p\u003e\u003cp\u003e“This account of establishing a bank for start-ups in China simply gallops along with twists and turns and surprises. It’s a salutary tale of how Western assumptions, hopes, and expectations prime companies for failure in the Chinese context. I’m giving copies to all my CEOs, past and present.”\u003cbr\u003e \u003cb\u003e—FELDA HARDYMON,\u003c\/b\u003e MBA Class of 1975 Professor of Management Practice at Harvard Business School, emeritus; Partner emeritus, Bessemer Venture Partners \u003c\/p\u003e\u003cp\u003e“The inside story of how Silicon Valley Bank stumbled in China.”\u003cbr\u003e \u003cb\u003e— DAVID BARBOZA,\u003c\/b\u003e co-founder of \u003ci\u003eThe Wire: China, \u003c\/i\u003eformer two-time Pulitzer Prize winning \u003ci\u003eNew York Times\u003c\/i\u003e columnist \u003c\/p\u003e\u003cp\u003e“Ken Wilcox is uniquely qualified to offer insights on doing business in China. In particular, his admonitions about the Chinese Communist Party and its ability to control everything it touches are chilling. As the author of \u003ci\u003eThe China Business Conundrum,\u003c\/i\u003e Ken will bring you to understand that you are most at risk when you come to believe that you have a full grasp of your situation. In all probability, You are not even close! Read it once and then read it again!”\u003cbr\u003e \u003cb\u003e— ALEX W. “PETE” HART,\u003c\/b\u003e former CEO of Mastercard International and financial services industry veteran, former Chairman of the Board, Silicon Valley Bancshares \u003c\/p\u003e\u003cp\u003e“While working in China, banking executive Ken Wilcox kept his eyes open and became deeply skeptical about the CCP’s willingness to actually collaborate with foreign businesses. \u003ci\u003eThe China Business Conundrum\u003c\/i\u003e is a much-needed antidote to Party bromides about ‘win-win’ scenarios.”\u003cbr\u003e \u003cb\u003e— ORVILLE SCHELL,\u003c\/b\u003e Vice President, Asia Society \u0026amp; Arthur Ross Director, Center on U.S.-China Relations  \u003c\/p\u003e\u003cp\u003e“I couldn't put down this engrossing tale of Chinese government partners manipulating and milking SVB to create local competitors. While most victims of this all-too-common swindle quietly slink away, Ken Wilcox has the humility and moxie to go public with this cautionary tale.” –\u003cb\u003eJames McGregor\u003c\/b\u003e, author of \u003ci\u003eOne Billion Customers\u003c\/i\u003e \u003cbr\u003e\u003cbr\u003e\u003c\/p\u003e \u003cp\u003e“This account of establishing a bank for start-ups in China simply gallops along with twists and turns and surprises. It’s a salutary tale of how Western assumptions, hopes, and expectations prime companies for failure in the Chinese context. I’m giving copies to all my CEOs, past and present.” – \u003cb\u003eFelda Hardymon\u003c\/b\u003e, MBA Class of 1975 Professor of Management Practice at Harvard Business School, emeritus; Partner emeritus, Bessemer Venture Partners.\u003cbr\u003e\u003cbr\u003e\u003c\/p\u003e \u003cp\u003e\"The inside story of how Silicon Valley Bank stumbled in China.\" –\u003cb\u003eDavid Barboza,\u003c\/b\u003e co-founder of \u003ci\u003eThe Wire: China\u003c\/i\u003e, former two-time Pulitzer Prize winning \u003ci\u003eNew York Times \u003c\/i\u003ecolumnist\u003cbr\u003e\u003cbr\u003e\u003c\/p\u003e \u003cp\u003e“Ken Wilcox is uniquely qualified to offer insights on doing business in China. In particular, his admonitions about the Chinese Communist Party and its ability to control everything it touches are chilling. As the author of \u003ci\u003eThe China Business Conundrum, \u003c\/i\u003eKen will bring you to understand that you are most at risk when you come to believe that you have a full grasp of your situation. In all probability, \u003cb\u003eYou are not even close! \u003c\/b\u003eRead it once and then read it again!\" – \u003cb\u003eAlex W. \"Pete\" Hart\u003c\/b\u003e, former CEO of Mastercard International and financial services industry veteran, former Chairman of the Board, Silicon Valley Bancshares\u003cbr\u003e\u003cbr\u003e\u003c\/p\u003e \u003cp\u003e“While working in China, banking executive Ken Wilcox kept his eyes open and became deeply skeptical about the CCP’s willingness to actually collaborate with foreign businesses. \u003ci\u003eThe China Business Conundrum\u003c\/i\u003e is a much-needed antidote to Party bromides about “win-win” scenarios.” – \u003cb\u003eOrville Schell\u003c\/b\u003e, Vice President, Asia Society \u0026amp; Arthur Ross Director, Center on U.S-China Relations\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990187032805,"sku":"NP9781394294169","price":28.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781394294169.jpg?v=1761786837","url":"https:\/\/k12savings.com\/products\/the-china-business-conundrum-isbn-9781394294169","provider":"K12savings","version":"1.0","type":"link"}