China’s fractious trade relations with the US and its allies are strengthening diplomatic and commercial ties between the two regions, said Ben Simpfendorfer, a Hong Kong-based partner at the management consulting firm.
“China’s commercial relations with the Middle East are experiencing a renaissance,” he said in an interview. “The past few years have been transformative. It’s no longer a story of simply trading oil and consumer goods, it’s now a much broader and deeper relationship.”
Trade data over the past six years underlines the shift. China and the Middle East traded US$507.2 billion of goods in 2022, according to customs data, double the level in 2017. Trade with the Middle East rose 27 per cent in 2022, surpassing the growth with Southeast Asian nations (15 per cent), the European Union (5.6 per cent) and the US (3.7 per cent).
“What we are seeing is that Chinese electric vehicle (EV) makers are increasingly investing in other markets,” Simpfendorfer said. “They are beginning to open up factories in the emerging markets, [while] also looking at options in Europe or the US. That is an encouraging dynamic, because it does help to ease trade tensions and support employment growth in other markets.”
China’s energy trade with Middle East to surge in light of Iran-Saudi deal: UBS
China’s energy trade with Middle East to surge in light of Iran-Saudi deal: UBS
However, Simpfendorfer warned that trade tensions between China and the West will persist and could worsen soon, especially after the US presidential election. Exports will remain under pressure over the next few years, and worries about overcapacity in China will remain on the front pages, he added.
Policymakers in the US and Europe have raised concerns about excess production of EVs, batteries, and solar panels, among others. If China continues to offload its excess output in overseas markets, Western firms could be forced to slash prices and cut jobs, they have warned.
During her trip to China earlier this month, US Treasury Secretary Janet Yellen sought to formalise discussions about excess capacity in China’s EV sector. Chinese officials pushed back against the move, saying that local exporters have already “fully responded” to those concerns.
Despite growing trade tensions, China will remain the world’s top manufacturing hub and a major exporting country, due to its sheer size and ability to innovate, Simpfendorfer said.
“There is no simple replacement for China’s manufacturing industry,” he added. “It’s difficult to replace its scale, efficiency, speed, and increasingly, its innovation, whether that is battery storage or new EVs, which will remain compelling for other countries around the world seeking to import these products.”
By Gloria Methri
Today
- Digital Identity
- Digital Transactions
- Europe
Oliver Wyman, a global management consulting firm and a business of Marsh McLennan, has reached an agreement to buy Innopay, a consultancy firm specialized in digital transactions. Innopay will complement Oliver Wyman’s existing payments consulting capabilities.
Innopay delivers strategy, scheme development, and execution in the domains of digital payments, open finance, digital identity, and data sharing. Its services capture an end-to-end offering in the payments sector to support companies and organisations to identify and seize opportunities in a digital world.
Innopay will join Oliver Wyman as a specialist consulting business within the group’s European region. It will continue to operate in the Netherlands and Germany, maintaining its presence in Amsterdam and Frankfurt.
Commenting on the transaction, Dr Stephen Whitehouse, Partner and Head of Payments, Europe, Oliver Wyman, said, “The European payments landscape is undergoing significant transformation, driven by technological advancements, changing consumer preferences, and regulatory developments. Bringing Oliver Wyman and Innopay together creates a unique offering, which will accelerate the impact of our people and work as we look to unlock value through deep industry knowledge and collaboration.”
Shikko Nijland, CEO, Innopay added, “Oliver Wyman’s acquisition of Innopay is a testament to our commitment to growth and innovation. Its global network and expertise will reinforce our ability to provide market-leading and exciting new opportunities, helping clients navigate the evolving landscape of digital transactions and providing additional opportunities for our colleagues.”
IBSi Daily News Analysis
February 12, 2024
Digital Identity
RBI’s PayTm payments bank directive spurs mom-and-pop shops to embrace alternative payment apps
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The MBB: McKinsey, Bain, Boston Consulting Group.
The best people, the best projects, the best pay. The widest practices and deepest resources. Expertise and prestige. Influence and impact. Alumni and clients who shape industry and policy. Opportunity and possibilities galore for ambitious graduates.
Traditionally, the MBB sat atop of the Vault Consulting 50 Ranking – the gold standard for measuring which consulting firms possess the best industry reputations and provide the best experiences to employees. In 2024, the M is missing from the MBB in the Vault Consulting 50 Ranking.
MISSING THE MCKINSEY MYSTIQUE
Yes, Bain & Company has ranked #1 for the 4th consecutive year in 2024. However, the result feels a bit hollow with McKinsey & Company missing from the list. The Boston Consulting Company again finished as the runner-up – a spot it has claimed for 5 of the last 7 years in the Vault Consulting 50. That said, McKinsey’s absence has created a vacuum – one filled by Alvarez & Marsal, a firm that ranked 22nd just four years ago. ghSMART, which finished 20th in 2020, clawed its way to 4th in 2024. At the same time, Oliver Wyman, a Top 10 stalwart which was unranked last year, returned to snag the 5th spot.
Talk about a memorable ranking!
What happened to McKinsey? That’s hard to say. Vault itself has directed readers to its participation policy: “Some years, firms choose not to participate, for whatever reason, which may explain why they don’t appear in the Consulting 50 or Quality of LIfe Rankings. Firms may also be excluded from these rankings if they participate but don’t meet the minimums participant counts or don’t score highly enough on Quality of Life. As far as the Practice Area Rankings, all firms, regardless if they distribute the survey internally or not, indicate to us which practice areas they want to be considered for, and firms may change their selections from year to year.”
Indeed, McKinsey was sliding downward in 2023, posting lower scores in every Quality of Work and Life dimension against the previous year. That’s not to say McKinsey’s presence wasn’t felt in the 2024 Vault Consulting 50. The firm still ranked 1st in Prestige according to competing firms’ consultants. Even more, McKinsey was listed as the top consulting firm in nearly two-thirds of the practice areas measured by Vault! In other words, McKinsey may be enduring a down cycle, but the firm has the fundamentals in place to quickly return to the top.
“The firm is doing a great job of constantly reinventing itself and innovating in areas of growth (for example digital and sustainability),” writes one anonymous McKinsey consultant surveyed by Vault. “It can be sometimes slower than first movers but tends to innovate in a thoughtful manner and has a strong track record of success with innovations (transformation, operations, design, sustainability).”
THE MEASURES THAT MATTER
This year’s results were released on February 7th, representing the 18th year of the Vault Consulting 50. The ranking is produced by Vault. An infobase platform, Vault collects employee reviews to produce rankings and company profiles in the banking, consulting, legal, and accounting sectors. In addition, Vault delivers career advice in everything from internships to employment, as well as two dozen career guides that cover industries (including hospitality, real estate, and media and entertainment), job hunting (resumes, networking, and interviewing), and education (college readiness, graduate school, MBA).
This fall, Vault surveyed consultants from over a hundred top firms, ultimately surveying 8,000 North American consultants. Using a scale ranging from 1 to 10 – where 10 is the highest possible score – Vault had consultants evaluate their own firm across 19 Quality of Work and Life dimensions and 6 Diversity measures. Using this same scale, consultants rated their peer firms for Prestige. Overall, consulting firms are evaluated against 7 of the 19 Quality of Work and Life dimensions (plus Prestige). Vault also publishes separate rankings for Prestige, Boutique Firms, and Practice Areas.
These rankings are designed to measure what matters most to consultants. Like last year, Vault notes that Culture ranks as the top priority for consultants, garnering a 40% share of first place votes. Beyond Culture, the survey sample also listed Prestige, Work-Life balance, and Practice Strength among their other priorities. At the same time, Satisfaction and Career Progress continue to gain momentum among consultants in Vault’s recent survey, which aligns with the previous year’s result.
Click on the links below for in-depth analysis and ranking tables for each area of the Vault Consulting 50.
WHY BAIN RANKED #1 AND BCG RANKED #2 (Analysis)
VAULT CONSULTING 50 RANKING (Analysis Plus Table)
FIRM PRESTIGE RANKING (Analysis Plus Table)
BOUTIQUE FIRM RANKING (Analysis Plus Table)
BAIN-MCKINSEY-BCG HISTORICAL COMPARISON (Compensations, Training, Management, Outlook, etc.)
QUALITY OF EMPLOYMENT AND LIFE RANKINGS
DIVERSITY (Women, LGBTQ+, Military, etc.)
PRACTICE AREA RANKINGS (Energy, Finance, Management, Strategy, etc.)
HISTORICAL VAULT CONSULTING 50 SCORES (Analysis Plus Table)
Next Page: Why Bain Ranked #1