MBA in China

MBA education in China has evolved from the tradition management education under the planning economy to the Western approach under the strong influence in the later 1980s. From 1949 to 1979, China was a central command economy model. Under the centrally planned economic system, all production activities were planned by central or provincial governments. In this period, the management education was to train Chinese managers for the planning economy.

In 1977, when Deng Xiaoping took the leadership in Mainland China, he started to reform the planning economy to market economy. In 1980, the first SEZ was set up in the Province of Guangdong – Shenzhen Special Economy Zone. Shenzhen is the first SEZ, also known as the “testing SEZ’ under Deng’s economic policy. The establishment and successful development of Shenzhen, lead to the later SEZs’ development such as in Shanghai.

As a result, state owned enterprises were gradually transformed from government production units to independent economic entities with increased autonomy to decide what to produce and how to market their goods or services. Chinese managers have been challenged to improve their managerial competence and administrative skills to match with the changing business environment.

Given the increasing demand for professional managers in the nation’s booming economy, the Chinese government decided to import Western MBA education to China. The international cooperative MBA program introduced the idea of the Western style MBA into China. In the later 1980s, the Chinese government decided to embark on its own domestic MBA education program.

Nowadays, MBA program in China is designed to prepare both Chinese and foreign managers for senior leadership positions in China. In general, it aims to provide managerial students with the ability to lead, design and implement suitable systems and practices for organizations operating in China and also international business environments. MBA program in China is often taught by both Chinese and foreign professors. Foreign students can enroll into Chinese or English taught MBA program depends on their Chinese proficiency.

The main concern for foreign companies doing business in China is talent. Most senior Chinese managers are not familiar with western management techniques, so big multinationals frequently have little choice but to import talent from the overseas. But then the companies are headed by managers who may have little understanding of Chinese business practices.

It is important that foreign companies need capable managers in China. Given the growth in demand for foreign investment in China, there is a real shortage. More education is required both in the Chinese ways of doing business and the Western ways. It becomes absolutely critical to compete and grow in China.