Management Accounting for China Business Supremacy (Part 1)
This is a second piece in a series on the evolution of China business. This article is linked to an earlier one we have published at this web site titled, ”How Should China Business Manage Its Equity?”. 20th century Business Management is an overwhelmingly occidental way of thinking, organizing, allocating resources, and of evaluating outcomes. It has the stock market as a close ally, which has formed the vanguard of the advance of capital led influence over the affairs of people.
It is facile but specious to view the China business phenomenon from the last decade of the previous century as an ongoing triumph of conventional western economic and financial thinking. China business cannot be separated from the form of governance of this vast nation with an awesome past and a brilliant future.
Nevertheless, it would be self-defeating for China business to reject objective appraisals of western methods of professional Business Management, because some of these procedures are relevant for the continuing ascent of the country as a world leader in the new Millennium.
Management Accounting has never been given its due credit in public circles of the stock exchange circuit. That is probably because executives have always been hesitant to expose their sources of information power to competitors, as well as to independent centers of power. Veteran managers should be unanimous in conceding that statutory accounts as submitted to regulators, taxation bureaucrats, and to stock investors, is generally very far from the searching, unrelenting, and revealing nature of Management Accounting.
Our earlier publication, ”How Should China Business Manage Its Equity?”, has been concerned with dismal predictions that China business stocks are highly over-valued in the era of sub-prime crimes in the West. Recession threats in the United States are feared to have viral potentials on China business. This article prescribes Management Accounting as a form of vaccination for China business, to prevent influenza-like contagion arising out of turbulence in the economies of the US and its military and ideological allies. We further propose follow-up contingent measures in the form of providing for China business to make gentle footprints, and also to keep its tracks as clean as possible. A subsequent article entitled “Environmental and Social Accounting for China Business” is being researched by our team, and we hope to publish our findings and propositions on this web site in due course.
China business now has bearings on planet earth as a whole. Therefore, its continued good economic health and fitness is a matter for all those who source and sell goods and services to and from this momentous nation. We hope that you will participate in rather than merely read this series on the evolution of China business beyond the Business Management and stock market confines of its western peers.