Sven Barac - Global Perspective through an MBA Exchange in China

Who I am and what I do

My name is Sven Barac. I hold a master’s degree in Computer Engineering, having graduated from the Faculty of Electrical Engineering and Computing (FER). I am currently enrolled in the MBA program at the Zagreb School of Economics and Management. Alongside my studies, I run my own AI venture builder, DFS AI Global.

My ambitions in developing an entrepreneurial venture in the field of artificial intelligence align well with my MBA studies at ZSEM. DFS AI Global has an international focus, and ZSEM, through its network of partners, provides valuable opportunities for global networking and expanding business contacts.

Within DFS, we are developing three products, emphasizing a scientific and methodologically grounded approach to problem-solving. According to the latest research by MIT NANDA (2025), most AI projects fail to achieve a clear and measurable return on investment (ROI). The authors highlight that the most successful startups “focus on narrow but high-value use cases, integrate deeply into workflows, and scale through continuous learning” (MIT NANDA, 2025) – a principle we follow closely.

Currently, we operate in several areas. First is sports, where our goal is to combine the best of Croatia – top athletes and top engineers – and use data models to improve decision-making processes. In May, we will complete a pilot project with our first client in a real-world setting.

The second area is compliance. We have developed the Comply platform, which transforms legal regulations into structured and versioned obligations and formally maps them to the organization’s internal acts, with automatic reevaluation in case of law changes.

The third product is an agent-based system for managing and optimizing PR campaigns, which we are developing in partnership with a PR agency, with a planned launch also scheduled for May.

Why I Chose China

When I started my company a year ago and began developing our strategy, we clearly defined our ambition for international growth. Through its network of partnerships, ZSEM enables its students to do exactly that – providing opportunities to stay and connect in global business hubs and gain direct insights into international markets.

One of these destinations is Tsinghua University in Beijing, one of the most selective and prestigious universities in the world (Times Higher Education, 2025).

What has long been discussed, and what I personally witnessed in China, is the strong and continuous growth of the Chinese economy. It is increasingly clear that the center of the global economy is gradually shifting toward Asia. According to IMF data, using the purchasing power parity (PPP) methodology, China and India together contribute nearly 44% of global GDP growth (IMF World Economic Outlook, 2024). China is currently the largest economy in the world in terms of purchasing power and the scale of real production. This does not mean the West is disappearing, but rather that the world is becoming multipolar – which can also be observed in the approach of the Chinese government and its foreign policy.

Beyond economic reasons, China is one of the oldest continuous civilizations in the world, with a history spanning over five thousand years, and an exceptionally rich culture that is worth experiencing firsthand.

Exchange Experiences: Tsinghua, Classes, and Life in China

Studying at Tsinghua University was one of the best and most intense periods of my life.

When I told people I was going to China, I often received a variety of comments. However, few of them had spent an extended period in the country. The best advice came from Croatians who had actually lived there – all of them, to paraphrase, said the same thing: “China is a fantastic country that will amaze you.” That was exactly the experience I had myself.

My advice is simple: go to China with an open and unbiased mind, without preconceived expectations, and experience it firsthand. Like any country, it is not for everyone – and that’s perfectly fine.

MBA classes were designed with mandatory attendance and a strong emphasis on team projects, presentations, and report writing. Prior business knowledge was helpful but not required. Particularly memorable were the lectures by consultants from McKinsey & Company on leadership, during which their global CEO, Bob Sternfels, also addressed us. The teaching model encouraged intensive collaboration among students – through joint projects, we learned from each other, while professors actively encouraged us to travel and explore different parts of China.

One course focused on analyzing the transformation of the Chinese economy over the past fifty years. We studied how China, as a single-party system, gradually transitioned from a planned economy to a market-oriented economy with strong state coordination. Through five-year plans, economic policies were systematically adapted, and the monetary and fiscal systems reformed. I got the impression that the government operates with a clear focus on goals and measurable performance indicators, in consultation with the academic community and industry. While institutional structures remain stable, policies are consistently adjusted and implemented. This approach has enabled the achievement of long-term objectives, including a significant reduction in poverty. According to World Bank data, approximately 800 million people have been lifted out of extreme poverty in recent decades (World Bank, 2022), and today less than 1% of the population lives below the extreme poverty line (World Bank, 2024).

Life in China particularly surprised me with its affordability and accessibility of services. One reason for lower prices can be linked to the high household savings rate and generally lower consumption levels (CEIC Data, 2024). I also found it interesting that coffee culture is not as developed there as in Croatia. Instead of cafés, restaurants serve as the central hub of social life. This suited me personally – I don’t drink coffee but enjoy gastronomy. Food is available everywhere, diverse, and of high quality, and nowhere did I feel like I was consuming “industrial” or artificial meals.

Work, Networking, and Business Opportunities

If I spoke Chinese fluently, it is very likely that I would have decided to stay and not return. During my time there, I got the impression that Chinese people are extremely polite and unobtrusive, generally focused on their own affairs. They are especially warm toward foreigners who speak their language – even more so considering that over 95% of the population does not speak English (Statista, 2023).

In a business context, speaking the same language is crucial; it opens up an entirely new world and a market of opportunities that many are not even aware of. Of course, it is possible to do business without knowing Chinese, but the process becomes slower, more demanding, and significantly more complex.

Of all the cities I visited, Shenzhen impressed me the most. The city is highly international and globally recognized as a hub for robotics and hardware innovation. There is a strong industrial community, and I particularly connected with robotics engineers who collaborate extensively with San Francisco. For anyone seriously interested in robotics – regardless of where in the world they operate – Shenzhen is a place that simply must be experienced. My stay there was one of the most valuable experiences, primarily due to contacts with fund and industry representatives. Many of them actively seek collaboration with the European Union and are interested in partners and intermediaries.

I also had the opportunity to attend the Future Factory conference in Shenzhen, where I presented the projects we are working on and saw the latest applications of AI models in construction. With a robotics company from Zagreb, we plan to bring in the most advanced technology and integrate it with our knowledge and experience. This is precisely the beauty of international experiences – remaining open-minded and ready to collaborate. I believe that even in Croatia we should be more open to new technologies and develop a healthier attitude toward risk and innovation.

I visited several companies and spoke with people from the United States who collaborate intensively with Chinese partners. I got the impression that business logic and the desire for cooperation generally go beyond political narratives.

Among Croatian companies present in China, I would especially highlight Infobip. At the invitation of Edi Budisavljević, I visited their offices in Beijing and Shenzhen, where they warmly welcomed me and showed how they operate in this market. I believe it is important that Croatia continues to strategically and systematically support its startups and companies through formal channels to strengthen international cooperation in China.

I also participated in several international conferences. Notably, the 2025 Sustainable Global Leaders Conference in Shanghai, which included former President of Croatia Kolinda Grabar-Kitarović. I was also invited to the China–Europe Association for Technical and Economic Cooperation (CEATEC) conference, where I met several companies interested in collaborating with Croatia. Now, back in Zagreb, it remains to be seen which concrete projects we will be able to launch.

Travel and Everyday Life

China is vast and incredibly diverse. During my studies, I had the opportunity to visit Chongqing (one of the most densely populated cities in the world, often described as a “cyberpunk city”), Chengdu (known as the city of pandas), Guangzhou, Shenzhen, Zhangjiajie (mountains that inspired the film Avatar), Shanghai three times (for business), and Beijing.

From ancient architecture and historic districts to futuristic skyscrapers and tech zones – China truly encompasses all contrasts. For people seeking experiences, dynamism, and an open mind, it is an exceptionally inspiring destination.

In terms of gastronomy, my favorite was the traditional dish Peking duck. What I can say with certainty is that Chinese cuisine in Zagreb and authentic cuisine in China have almost no similarities – the level of diversity, freshness, and flavor is difficult to compare.

For everyday life in China, a few key apps are essential. WeChat is a so-called “super app” that combines communication, payments, and numerous other services (Alipay serves a similar role). Through WeChat, you can communicate, pay via QR code – I hardly saw or used cash during my stay – order food, goods, and various services. Wherever you go, you scan a QR code, enable the translation option, and everything is at your fingertips.

I was particularly impressed by the affordability. For example, while an average lunch in Zagreb can cost around €30, in Shanghai, on the 100th floor of the Grand Hyatt Shanghai, I enjoyed a wagyu burger with an incredible view of the city and excellent service – at a comparable price. This ratio of quality to price left a strong impression.

Regarding salaries and housing, over 90% of Chinese people own property (Pew Research Center, 2023), and income levels, depending on the industry and city, can be comparable to those in Croatia. On average, the standard of living for a large portion of the population appears stable and sustainable.

Final Advice and Plans for the Future

I believe that everyone should go to China, see as much as possible, and – most importantly – stay longer than a week or two. There are many misconceptions about China, many of which are unfounded. My advice is simple: start learning Chinese as early as possible and spend some time in China, whether short or long, so that you can form your own opinion.

I experienced my “Chinese” chapter of life intensely and sincerely, and I will certainly return to China – hopefully very soon. I made friends there for life. Of all the countries I have visited, China left the strongest impression on me and has become my personal favorite.

For the next phase of my exchange, I plan to go to the United States. If everything goes according to plan, I should begin the program at Stevens Institute of Technology in September, just outside New York City.

Until then, my primary goal is to start generating concrete and sustainable revenue with our products. It is precisely ZSEM’s MBA exchange that enabled me to achieve the most important thing – to begin thinking about and scaling the products we develop in a global context.

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Global perspective through an MBA exchange in China