Doing Business in China of the -, but what kind of business – would like to learn more
If you are in business for your business or company, you should not read about China? After all, is the second largest economy in the world now, it seems that more and more, should continue for a long period of growth. There are too many people who are too willing to label China a single sentence, and that they understand all of China – you can imagine to describe in a sentence of the United States? It is for this reason, I would like to recommend a very good book, I think you should read the book’s name is;
“China * Company – How to challenge a superpower, the United States and the rise of the world”, by Ted Fishman long, Scribner Publishing, a Simon & Schuster, Inc. – Macmillian license, New York, New York, 2005. (Page 342), ISBN 0-743-5752-9.
This book is very eye-opening and very well written, the author writes for the New York Times Magazine, money, values, USA Today, Business 2.0, and has worked in the Chicago Mercantile Exchange trader. The books he needs our capitalist superpower from the Chinese Communist Party, and talk about how it is about 3 times, which expands the American economic growth rate (about 10% more than last year), and in how the 300 million farmers who left their jobs agriculture to factory work. This is the largest in the history of human migration from rural areas of Guangdong Province in China and other parts of the factory.
It is estimated this cost at 290 million manufacturing jobs in the United States. I do not want to say here, Mr. Fishman’s excellent books go, but I’d like to recommend another very good reading;
“How do farmers brought” by Kate Xaio week to China in 1996.
He believes that the competitiveness of China is dangerous. It is into computers, automotive industry, airlines, aircraft manufacturers, and even large pharmaceuticals. In this book tells all about it, and the subsequent harsh reality. China is already the largest computer manufacturer, China has more than 100 cities in more than 100 million population, while the U.S. only 9. Chinese Americans to move back to China to participate in the prosperity that lead to brain drain, and because the economic growth of 10% per year compared to the same number of the best and brightest of sophistication and capacity of education who also left the United States. Worse, the brain drain is accelerating.
Today, China is considered the world’s factory, which is our greatest economic threat, in fact, also for the entire developed world, the greatest opportunity is contradictory. China’s real gross domestic product, including its illegal underground economy is at least 15% for some economists said. China has a huge underground economy is often overlooked. The book also allowed us to recognize that all of the 40 in the United States, what furniture to the North American Free Trade Area countries,%, which is basically all made in China.
China also makes ships, submarines, heavy equipment, trucks, cars, airplanes, satellites, rockets, you can create just about anything, just to see the Great Wall of China or the world’s largest dam (Three Gorges Dam), so nothing new . It is difficult to keep as customers and suppliers in order to maintain them as a competitor in the Gulf while China, almost no country writers win-win situation. The United States is not a problem with only one – that the Chinese in Canada, Brazil, Australia, Germany, Japan and Mexico affected. China has the world’s first a good number of trade imbalance.
Of course, China is not without its problems, and there are many problems in the banking sector, the potential of a peasant uprising, huge pollution problems, and currency valuation, and all the worst, if they have a bubble burst that allows any recession ever occurred in the U.S. look like a child’s game. In fact, this will damage the United States, if such things happen in China.
Another problem is the resurgence of China’s Mao Zedong, which may lead to a revolution and a nightmare, but China has yet to have its own industrial revolution. 2050, China may be two-thirds of the current growth rate, many people think that is totally unsustainable than the current U.S. economic power; said that China is overheating, and can produce enough supply to 5 times, the U.S. can buy . This is a real problem, because there is no U.S. market size of five. In fact, probably only 2 1 / 2 or 3, if you consider the European Union, all Asian countries combined. This means that China faces serious problems of excess margin.
In the mid-50s, China copied the Soviet Union of Stalin animal forms of collectivism, farms, land and other collective must meet production goals, they can not migrate to the cities or to buy food, the passing there. In fact, farmers who produce the food the first hungry, if production is not reached. Basically become farmers in the 60’s and 70’s slaves. Farmers secretly conspiring to subvert the system for themselves, the establishment of collective farms and small cooperatives, they work better than the forced collectivism, mutual trade and oversupply. When they found the Chinese Communist Party leaders decided to use in their favor, and through these principles, so that increase in production.
40% in 2000, making China less than two dollars a day – today, in the middle class, more than three U.S. dollars a day, about 1200 U.S. dollars per year to 470 million Chinese. Finally, the farmer’s cash and private banking network, once the rural farmers are allowed to accelerate into the business entrepreneurship. Things to work well, however, they are not good on the U.S. manufacturers. For example, like a belt factory in Massachusetts, in 1000 opened a new belt in China, factories Christian Audigier Clothing closed, that the author. However, it is hard to beat wages, many Chinese factories pay only $ 0.40 per hour.
Shenzhen, Hong Kong people and 30,000 factories operating funds to attract about 600 million migrant workers. Beijing hopes the Shanghai modern meaning, they also want a modern New York, Tokyo, London, all the rest well. But all it all in China’s modernization of power plants still use low grade high sulfur coal, many of them very dirty, and it is burning while they must build new power plants to meet growing demand. China will need least same amount of energy as the United States, and eventually two-fold.
China’s auto emission standards this week, and even worse is that they all (at the time of publication of this book, some things have changed there is no standard), not to mention the Chinese have not all cars, they are enough roads Xianzai sales. Many Chinese believe that pet owners sign of decadence, but it is a time more and more pets in the past. Technology has become a personal thing, as wealth, status symbol, and arrival.
China’s accession to the WTO in 2001 changed all that forever, peaceful, China’s trade barriers come and go, appear without warning, claiming that the U.S. current work. China’s industrial strength, is obviously caused a sensation, such as Thailand, Malaysia and other neighboring Asian countries. China will become the dispersed well in the long run, even the United States as Chinese farmers benefit from eating more and more, in addition to just fish and rice. A serious problem is how the Chinese are also factories in Mexico, when the Mexicans lost their factories in Mexico, they went to the United States to work, they still returned to Mexico intensified the liquidity deficit. Finally all the way to the United States lost.
On the other hand, Australia’s hope that China will continue to grow, because they sell a lot of these resources. Australia has substantial resources to the sale, the Chinese do not seem to fight the urgent needs of these resources. In the United States car manufacturers are forcing Chinese suppliers to tell their suppliers that they need, “the price of auto parts in China” and therefore, small manufacturers can not survive the country the United States, like Ohio, myocardial infarction, IL , Kentucky, Tennessee, etc., also supplies the automotive industry. This will eventually emptied world manufacturing.
U.S. manufacturing in 2002 and 2003, 1 to 8 to work in China. In North Carolina is one-fifth of job opportunities. China is buying from other countries to compare Unfortunately, they buy like Germany, has replaced the German workers place more manufacturing machines. This is a good export to China, but each machine killing in the United States and elsewhere have paid the health of the industrialized countries, more high-wage jobs, so the business is now out of control, which means there will not be a personal leave to buy expensive products, so everyone will want to buy cheap Chinese goods. Although the argument is circular is not over.
A forecast is 10% or 14 million jobs will be transferred overseas in the next decade, because we have half of this book by this method, far more than his right. Growth of the global economic crisis before the third car in the world from China. China is known for the popular vehicles to steal the design, not the implementation of international patents, our government, “said the company relaxed the impact of competitors,” This is why cars often look the same, as if this is a pretext to steal the design.
Some Chinese manufacturers who export their mark in China and Toyota in the Middle East, they are sold throughout Asia, even trying to sell their products in Australia. China’s auto imports into the huge cost-cutting needs, even with the price is very high contrast, U.S. car quality is still very much in demand from China.
In fact, in the Middle East, the Jeep Cherokee for sale, only 10,000 U.S. dollars, and they are almost identical in appearance, but the quality does not exist in China 5 years, it may be able to compete, and comparable models from the United States, Japan, But this is not now so many in the industry say are junk cars in China, and are not comparable. Of course, this is what they said before Toyota and Honda Dotsun time.
Safety standards in the United States, to maintain China’s automobile to enter the U.S. market? It is doubtful, because Warren Buffett has owned a hybrid of Chinese companies, which makes electric cars a good, and certainly his influence so that they are here. In other words, we will promote China’s car ultimately only a matter of time.
What happens when high-tech low-cost manufacturing in China factory worker robot, and then what happens? This is a problem, this book suggests. Today is the production of more than 5 times the Institute of Engineers, the United States each year. 40% of Chinese college students is a project on track. China to magnetic resonance imaging software is now, many large American pharmaceutical companies to export their production work to China and production of products.
From an investment point of view this is an interesting market, although it is piracy and counterfeiting of U.S. patent companies. China is producing fake beer, fake liquor bottles are often inferior to them and their hands, the car broke down, they only remember the signs, do not think that the company never produced the fact that in the first place. Chinese-made counterfeit Starbucks, Coca Cola, forged cheese, ice cream, shampoo, or even Cisco and 3Com, a computer card. These Abercrombie Fitch Clothing counterfeit cigarettes, tires, batteries, and the well-known brand, shoes, car parks, and even Nintendo’s clothes.
They also counterfeit Swiss watches, and Gucci watches, which makes it almost impossible to know if this is true. They produce two billion U.S. dollars of Ford auto parts are in fact each year, not to mention all of the DVD, movie, song, book value, one of the reasons is the analyst said, “you can not prosecute them,” Maybe I should put forward a proposal kind of fake U.S. company’s economic stimulus package. MP3 players, Harry Potter, fake vaccine, Viagra, and even Yamaha moped. Greeley and they have been in China a sign of Toyota vehicles have been found. 90% sold in China are counterfeit Microsoft products. Many of the actual fake plant financed by foreigners to the worst.
Chinese entrepreneurs are reading the Carnegie, Qiledaier, Ford, they are learning all about the management of the United States, they beat us at our own game, with our technology, and counterfeit products. Most of counterfeit software message. They said it was fake Adobe software actually works in China better than the original. 90 in China since the sale of pirated software,% of all, and because real people can afford the software they feel is reasonable.
The author also explains the United States and China interdependence. China consumes half the world’s pork. In a quarter (2000) 58 U.S. companies, 55 European companies and Asian companies in all 33 positions, China Mobile announced. Delphi is working in Mexico and China, unions are very disappointed that the company is working to allow transfer speeds so fast. They believe that promoting employment opportunities, but also result in migration to the cost of nonunion competition, also known as the author. I asked the question suspicious; is the real key to relentless innovation, is that true?
I believe this is not because, if they steal our innovation is how to create them as soon as possible to help us through all his money in research and development if we try to make America once again a leader in innovation, we will have to consider this issue very closely. At the same time, China and all Asian countries, trade is just equal to China’s trade with the United States, began to show you the problem.
If you double the income of Chinese citizens, they will be the same size of the GDP is the United States. If they are to double again, it will only 12 yuan a day, their economy will be 2.5 times, the United States. This is written on the wall, it should be obvious where the direction of China’s development.
This book is a terrible book, but one, I think every American should read, let them know in the end what happened in the world, then I think they should vote for elected representatives who will demand accountability and better trade policies, so the future. Please consider all this.