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China's Top 10 Economic Challenges & the High-Tech Implications

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Jacob
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Supply Network Guru
Re: China's challenge
Jacob   11/19/2012 11:23:37 PM
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Shelly, you are right. Now Chinese labour markets are not so attractive when compare with the olden days, but still better when compare with the other countries. Another factor is Chinese government is very strict in family planning for more than one decade and forcing everybody to limit with one kid. So within a couple of year/decade the number of senior citizens becomes more than youngsters/youth. This will surely affect the productivity of nation because youths are assets for the nation. Eventhough they have the large population, consumerization of foreign goods are very less.

Shelly
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Stock Keeper
Re: China's challenge
Shelly   11/16/2012 2:01:48 AM
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World's largest foundry Foxconn shows trend of moving business to Southeast Asia countries due to Chinese base pay rise, so it seems China is losing its cheap labour advantage. With Chinese population aging, there is necessity to change development method. Meanwhile, corruption is indeed a problem. However, as a world's largest consumer market, and with the purchasing power rise, China should still be payed attention.

Jacob
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Re: China's challenge
Jacob   11/14/2012 7:02:40 AM
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Wale, as of now the only attraction about China is low wages and single window system for foreign investments. If companies are going to addressing the demands from Chinese workers, then the Chinese markets may not be attractive. Moreover, Chinese local markets are also not attractive because they are much interested in local brands and government is keen to promote locally made items.

Jacob
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Re: Corruption
Jacob   11/14/2012 6:58:34 AM
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Wale, corruption is a common factor in all most all country but the rate of corruption is less with some of the western countries. Even there are corruptions in under economic countries in African continent.

Jacob
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Re: Corruption
Jacob   11/14/2012 6:55:53 AM
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Bolaji, from what we had seen in Asian countries is, there is no difference between Democracy and Revolution in terms of corruption. India and China is the biggest democratic and revolutionary county receptively in world, but in terms of corruption there is no much difference between these two places. The only difference I had visualized is, in India every five years some new set of peoples will get a chance to practice corruption where in China faces are not changing.

Wale Bakare
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Re: Corruption
Wale Bakare   11/13/2012 11:32:34 AM
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That factor is actually something drawing not only China back but few of the emerging economies.

Wale Bakare
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Re: China's challenge
Wale Bakare   11/9/2012 9:53:01 AM
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I agree with you. And besides it's no longer a new trend - demand for better pay package and environment by the chinese has been on for a while. As a matter of fact, addressing its impact on high-end techie products should only be next discussion not its extent of how consumers would get hit in their pockets.

rohscompliant
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Production Synthesizer
Re: cool factor
rohscompliant   11/9/2012 8:40:38 AM
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The Cherry QQ sub compact car is the best selling car in it's class in China........it is cool to people there.......yet they ripped the whole design off from GM Daewoo (now GM Korea).....the car is an EXACT copy of a GM car that was built over there. US (& other country corps) corps that set up shop over in China have no rights to their own intellectual property. The Chinese gvt allows their company's to take any intellectual property from any intl company located in China. Cherry QQ was actually able to launch the car before GM could. GM was mired in paperwork & regulations from the Chinese gvt. The Chinese gvt plays an active role in screwing over intl companies (non Chinese) to benefit their own 'cherry' picked companies and industries!!! How do we compete with that????

Bolaji Ojo
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Re: Corruption
Bolaji Ojo   11/9/2012 7:13:47 AM
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The revolution that throws out the Chinese Communist Party will most probably end China as we know it today. What goes for democracy in China is not what the West practices and whether the nation can survive the implementation of Western-style democracy is a question begging for answer. I personally don't believe it will.

Bolaji Ojo
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Re: cool factor
Bolaji Ojo   11/9/2012 7:11:10 AM
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It may take some time for a China brand to become "cool" but I think you just put your finger on what we should expect Chinese entrepreneurs will start aiming for within the next decade.

The transitions we can document are (1) China joins global economy (2) China becomes the world's manufacturing center (3) China moves from exporter of manufactured goods to become a big global player by buying foreign companies and brands, becoming an investor in international market and (4) China creates local brands that become internationally desirable/must have brands.

Step 4 will be the hardest for the Chinese entrepreneur but that won't stop them.

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