India’s Rise Third Largest Economy Puts More pressure on China

Discussion in 'Economy & Infrastructure' started by Srinivas_K, May 5, 2014.

  1. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    India’s Rise to World’s Third Largest Economy Puts More Pressure on China to Perform

    Foreign Investors in China Need To Prepare For Regional Alternatives

    Op-Ed Commentary: Chris Devonshire-Ellis

    With the recent news that India has just overtaken Japan to become the world’s third largest economy in PPP terms, China now faces increasing pressure to both hold onto its FDI performance, GDP growth, its manufacturing competitiveness and maintain the domestic political mantra that the country is superior to that of its largest neighbour.

    In terms of FDI, China’s rose last year by 5.3 percent, to a whopping US$117.6 billion, albeit at slower rates of increase than previously attained. But even that figure was eclipsed by the 5 largest economies in ASEAN, who achieved FDI inflows of US$128.4 billion. India’s, while smaller at some US$28 billion, still rose by 17 percent over the previous year – an increase over three times higher than that of China’s, and achieved during what was not an entirely satisfactory fiscal or political 12 months for the country. While it is true that the Indian performance comes from a lower economic base, there is some thought that the investment trends are now moving away from China and into other areas of emerging Asia – with ASEAN and India amongst them.

    If so, there are some fundamental reasons for this. China has become considerably more expensive in terms of labour costs. It is now five times more expensive to hire a worker in Guangdong than it is in Mumbai. Coupled with that, China’s demographics point to it losing labour force over the coming years, while a much younger India is adding to its pool of available workers. Not only are China’s workers becoming more expensive, there are also less of them. It is that demographic that is now beginning to impact initially upon labour-intensive industries in China, but will rapidly filter down into smaller and medium size businesses with less cash flow to protect them against increasing production costs.

    Foxconn, maker of numerous Apple products, are shifting production to Indonesia. Ford have bet their Asian vehicle strategy upon auto-manufacturing plants in Gujarat. Nearby Thailand, and not China, has been chosen by Volkswagen as their manufacturing base for auto sales into Asia. These decisions have been made despite regular comments about China’s infrastructure superiority protecting it from such leakage. Clearly the cost benefits of locating factories elsewhere, even with lower standards of infrastructure, are greater than investing that additional capacity in China. China has not been able to become the manufacturing hub of choice for Asia, let alone the world.

    This is having an impact on where global CEOs see future production capacity moving. According to the 2013 Global Manufacturing Competitive Index issued by Deloitte, India currently ranks fourth globally. This report includes over 550 survey responses from CEOs around the world and provides their perspectives on the key drivers of manufacturing competitiveness for a country, a ranking of each nation’s current and future competitiveness, and a review of the public policies creating competitive advantages and disadvantages for key countries and regions around the world. The study also reveals that India will move up from fourth to second position over the next four years.

    Meanwhile, even the Chinese Central Government’s desire to propel the majority of its citizens towards middle class consumer status at a rapid pace is beginning to face resistance. Dongguan, the so-called “factory of the world” has shelved, for the time being at least, any further minimum wage hikes as it strives to keep increasingly frustrated business owners competitive – and profitable. If not, they will – and many are – relocate to Vietnam.

    The main attraction for many foreign investors now in China is the development of that same middle class consumer base. Currently standing at about 250 million, it is projected to reach 600 million by 2020, a staggering increase. Yet that projection also assumes that China will be able to hold onto its manufacturing base and service the domestic market domestically. That strategy is now starting to look less likely. Vietnam, expected to come into full China-ASEAN Free Trade Compliance by the end of next year, will be able to enjoy duty free exports to China on some 90 percent of all traded products. With Vietnamese wages far lower than China’s, and a lower corporate tax rate in the offing, China will struggle to compete with Vietnam within 18 months. Yet it needs to maintain manufacturing stability and foreign investment inflows at the same time. It’s a balancing act that is beginning to look a little out of kilter.

    China stands to produce another 350 million middle class consumers, all wanting modern products, that will increasingly be sourced externally from China. Yet at the same time, fiscal tax revenues on customs duties will drop. That doesn’t really balance the books as far as I can see China sustaining its projected middle class growth. As its population ages, it will become more dependent upon raising taxes to cover health care costs. Yet in multinational trade, exactly the reverse is happening.

    India, meanwhile, is a little behind in all this. Its development path is often erratic, and as a democracy it has lacked the one party, single minded drive that has propelled China along the past three decades. Its GDP growth rates have performed at a far wider range than China’s from a low of 3.5 percent last year, from 9.7 percent in 2010, and an expected 6.5 percent this year. That compares with a consistent China deliverable of between 7-8 percent per annum. But the warning signs for China are there. India is not just a home of increasing numbers of workers (expected to double to just under 1 billion by 2025) available at far lower wages than in China, but it also has an alluring domestic middle class – coincidentally the same size as China’s is today, at 250 million. That middle class also has extensive purchasing power and is increasing. International brands are now flocking to India to sell to the domestic market. Yet still, India tends to fall down on infrastructure. That however is changing – investment into infrastructure is racing ahead at close to 8 percent growth per annum – higher than the GDP rate.

    When India’s infrastructure gap starts to close – and the signs are already there – it will take just a couple of reforms to kick start India as both the world’s manufacturing hub and its largest consumer market. Those are tax reform, which has been on the agenda for the past three years, with the intent to lower corporate income tax from the current 40 percent rate down to 30 percent, and further FDI reforms into the retail sectors, and especially in agriculture and e-commerce. In the latter especially, India has been able to provide a far more open and transparent market than that of China. With the Chinese government wanting to keep a handle on every possible currency movement out of the country, and as a result supervising the rise of its own online retailers, global online retail businesses such as Amazon and ebay, along with many other e-commerce businesses, have found the going in China very tough. In comparison, the Indian market is starting to open and giants such as Amazon are expecting huge dividends as a result. Put simply, India’s market is more open to foreign investment and participation than China’s.

    If these Indian reforms continue to happen – and both political parties contesting the Indian elections currently underway are considered business friendly – then the rise of India may yet cause China some headaches. I will not be surprised if India’s growth in two years from now starts to outpace that of a China that just may have attempted to become too rich, too fast, amongst too many people, with worrying implications for future growth.

    Chris Devonshire-Ellis is the Founding Partner of Dezan Shira & Associates – a specialist foreign direct investment practice providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam, in addition to alliances in Indonesia, Malaysia, Philippines and Thailand, as well as liaison offices in Italy, Germany and the United States.

    India’s Rise to World’s Third Largest Economy Puts More Pressure on China to Perform | China Briefing News



    ************************************************************************************************************************************

    China achieved a staggering growth rates with FDI inflows and MNC's playing major part, China is moving towards Urbanization by 2020 the estimates show 600 Million urbanized middle class will be available which is a huge consumer base for MNC's, at the same time shortage of labour and rising middle class will become main obstacles for China to even serve its own needs by the end of this decade .

    A perfect opportunity for India and ASEAN countries to tap this market. All the CCP policies are aimed at making Chinese rich and there by making them a good consumer base.
     
    Last edited: May 5, 2014
    Pulkit and jus like this.
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  3. t_co

    t_co Senior Member Senior Member

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    This article draws most of its conclusions from macroeconomic statistics instead of bottom-up, on-the-ground research. It does not offer good examples of how FDI has succeeded in India (since such anecdotes are actually few and far between); instead relying on the single example of Amazon and eBay 'expecting' something to show that FDI will succeed and India's economy is more open, which is a non sequitur.

    Indeed, India has shown itself to be much less welcoming of inbound corporate investment than China, as shown by its stubborn barriers to FDI in retail and its copying of popular global drugs (and therefore theft of pharma R&D) before the patents on said drugs have expired.

    Also, China has several sectors that are chock-full of multinationals - automotive (Honda, Toyota, GM, VW); telecom (Cisco, Siemens, IBM); aircraft (Airbus, Boeing); personal care products (P&G). As for why some other sectors (e-commerce) have been very difficult for Western companies to penetrate, the key differentiator has been the skillfulness of the Western multinational itself, as the case study of McDonald's vs KFC in China shows.

    His point on the fiscal tax revenue mix in China is irrelevant, since customs duties are falling because primary commodities are taxed more heavily than services imports. As China shifts away from manufacturing and climbs the value chain, it will naturally import less iron ore and more medical and legal services; therefore customs tax revenues will fall.

    A side note: I know Chris Devonshire-Ellis. He's a pompous fraud who likes to play 'token whiteface' with business leaders in developing countries. He's faked a legal education before:

    fear of a red planet: Chris Devonshire-Ellis is NOT a lawyer . . . .

    numerous aspects of his past:

    and faked meetings with Chinese ministers in a self-published article which he tried to get the WSJ and NYT to republish:

    [​IMG]

    before finally leaving China in ignominy

    So Long, And Thanks For All The Bullshit: Baron Christopher Devonshire-Ellis Exits China | Beijing Cream

    It looks like, now, CDE (Baron?) is trying to ham-fistedly stroke some Indian egos in an effort to earn consulting fees. Don't fall for it. The man has been permanently marked as a grade-A bullshit artist among the Asian business, law, and finance community.
     
  4. t_co

    t_co Senior Member Senior Member

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    Another note about CDE - the guy once sent around a presentation for a 'client' that was 8 pages long - and included 14 photos of Chris himself.

    The guy loves his own image more than Mao Zedong... and had he the power, he would be just as vindictive and spiteful, as one commenter on the above article indicates:

    I can vouch for this, as Chris threatened my buddy's wife with emails pretending to be from China's Public Security Bureau that threatened to deport him and their children.

    The guy is a complete asshole and I pity anyone who ends up perusing his 'advice'.
     
    Last edited: May 5, 2014
  5. no smoking

    no smoking Senior Member Senior Member

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    I am surprised to see you spend so much time to answer this paper!
    Why wake up someone who pretends sleeping?
     
  6. CrYsIs

    CrYsIs Regular Member

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    Another hoodwinking article
     
  7. ersakthivel

    ersakthivel Senior Member Senior Member

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    No need to be surprised, just read my reply.


    Too simplistic to brush everything under the carpet saying the article is hoodwinking. if you want you can cite sources to dispute his claim.

    Your questions on his credibility is welcome .

    But you can not rebut the points he raised. In fact the demographic dividend of high level of young working population in relation to older people who need support favored china in the 1990-2010 period. now due to one child policy this ratio is not favoring china and in fact rapidly go in inverse mode.

    but in india the same demographic dividend is favoring economic growth through higher working population and liberalization policies are continuously being followed for the past two decades.

    All the multinational who are in china are also in india and all are scaling up all the time. So you can not say that they are less welcome. India is a rule based democracy where any one can o to SC to get relief.As long as MNCs stay on the right side of the law they have nothing to fear.

    And infra growth is also picking up. So his stats and analogy are correct.

    It is not for nothing india has become third largest economy in the world. 28 billion dollar would not have come to india if FDI is not welcome. Also indian outbound foreign investments are also raising.

    for you info the state of gujarath whose Chief minister now in the race for indis's for PM, has grown at an annualized rate of close to 9 percent for the past decades with the least share of FDI.

    traditionally maharastra, TN , karnataka, and delhi got a lions share of FDI and grew at a 9 plus percentage growth rate, while large states like bihar simply lacked behind.

    Now bihar is also coming into high economic growth phase with close to 10 percent growth rate. And traditionally sluggish states like Madya pradesh and rajasthan, orissa are also getting into high gear mode.

    Now we are seeing wide spread momentum of economic growth spread through out the nation.

    So there are many sub plots in indian economic story than that meets the eye. that will provide new drivers for higher sustained economic growth than the traditional maharastra, TN, delhi, karnataka, AP belt and other sectors besides software will also lead growth.

    SO the man may be A grade BS writer or not ,as you think, but the views he put forth are not out of the world and all can be substantiated with stats.
     
    Last edited: May 6, 2014
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  8. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    Chinese here can counter the points raised by the author!

    The points he mentioned and the arguments he made are indeed valid, the author is optimistic.

    West always try to make India China against each other for sure.
     
    ersakthivel likes this.
  9. abhi_the _gr8_maratha

    abhi_the _gr8_maratha Senior Member Senior Member

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    the points of author are from macro economics
    .
    he just gave 2 examples because he have to write article and not give examples
    .
    look who is talking about copying others, the biggest thief of the world is china and no need to prove it
    .
    india have more power cause of increasing number of young people as well as less expensive labour
    .
    the rupee dollar relation is near to 60, which attracts FDI more
    .
    the transport inside india by train ,truck etc is also less expensive
     
  10. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    India still needs to focus on manufacturing.
     
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  11. roma

    roma NRI in Europe Senior Member

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    Not sure what you meant here ....obviously he has to quote macro-economic data when comparing the
    economies of two countries ? what else is he expected to do ?
    what do you mean by bottom up ? ,...who gives that kind of figures
    If CDE has quoted from government sources then such macro data has to be considered correct, unless .....
     
    Last edited: May 7, 2014
  12. CrYsIs

    CrYsIs Regular Member

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    India would have been enjoying the fruits of demographic dividend by now had it invested massively in health,education,industrialization and infrastructure.

    But the government didn't do that instead it invested in cheap vote winning gimmicks which has put India's economic situation in strain.

    Majority of youngsters have no formal job in their hands,and those who do, have to be retrained because India's super substandard education system.



    India becoming the 3rd largest economy in PPP has no significance outside of wikipedia page.GDP PPP is not used to compare economies of countries since they are in local currency.For that you have to use nominal GDP in which India is at 10th position with a GDP of 1.8 trillion $ only which is slightly higher than Canada.

    The only purpose of GDP PPP is to measure standards of living for which we use GDP PPP per capita and even in that India is at poor 140th place.

    Besides India overtaking Japan is nothing to be proud of.India a country of 1200 million of which overwhelming majority are 20 something has taken over Japan,a country of only 128 million where majority are old grandpas.This goes on to show that India is an immensely incompetent and unproductive country.

    Also talking about FDI,As of 2012 India was at 23rd spot with 22 billion $ and was placed lower than Mexico,Brazil,hong kong,singapore and poland.

    In contrast China received 130 billion $.




    Most of that growth is due to base effect.It will take decades for poor states to reach to the level of rich states.
     
    Last edited: May 7, 2014
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  13. ersakthivel

    ersakthivel Senior Member Senior Member

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    See irrespective of your claims regarding under investment in education and training from less than 3 percent growth till 1990s india changed track to 7 plus percent growth for the past two decades.

    For most of the shop floor production work

    and work at fast growing garments and other retail sectors no one needs formal education of higher caliber, a basic school education and grasp for skills during training itself is enough, For middle management positions in production and fast growing services sector ,there are enough graduates who can do the job.

    Of course india overtaking Japan is nothing to be celebrated about, but till the other day we were below them,

    In the same way for five decades preceding year 2000 chinese were well below japanese.Only after that they started to over take japanese.

    you can not sustain 7 plus percent growth rate for two decades only citing low base effect.
    china may receive 130 billion and india may get 28 billion. What indicates the potential is the growth rate at which this FDI is coming.

    Ofcourse it will take time for poor states to reach the better off state , but that is not the point . these states were comatose for long , contributing nothing to the past two decades of economic growth, but now they are getting their act together and started contributing for growth.

    And there is a purpose for calculating economic stats at purchasing power parity . That is to measure the relative raise in standard of living within the country regardless of the dollar rupee rate .
     
    Last edited: May 8, 2014
  14. abhi_the _gr8_maratha

    abhi_the _gr8_maratha Senior Member Senior Member

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    @CCP if you are saying to calculate gdp in dollar
    .
    japans currency is much lesser than indian rupee though india outpassed japan
    .
    population of america is one third of chinese population though they are ahead of you and israel, uk, france have lesser population, lesser area though they are developed countries and china is yet a developing country !
     
    Last edited by a moderator: May 10, 2015
  15. abhi_the _gr8_maratha

    abhi_the _gr8_maratha Senior Member Senior Member

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    @CCP long form of gdp is gross DOMESTIC production
    .
    it is calculation of domestic level and where there is domestic level you have to calculate in domestic currency
    .
    dollar is not used to calculate gdp cause dollar is not a legal currency of domestic trade . Dollar is for international trade
     
    Last edited by a moderator: May 10, 2015
  16. amoy

    amoy Senior Member Senior Member

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    http://blog.caijing.com.cn/expert_article-151638-68174.shtml

    Excerpts

    [​IMG]

    While India’s growth has since surpassed my optimistic hopes in 1994, I firmly believe it will never rival China. This chart below shows how far the gap between the two has grown. Since 1994, China has all but left India behind in its tailpipe exhaust.

    [​IMG]

    In per capita PPP terms, China is now almost 2.5 times wealthier than India. Year by year, the gap grows, as China’s gdp expands faster than India’s, while India’s birth rate is now almost triple China’s.

    I haven’t been back to India since 1994. I have no doubt it’s changed out of all recognition. Changed for the better. Poverty is down. Exports are way up. Its biggest misfortune may be having to compete for capital, and for attention, with China.

    Living full-time and working in China now for more than four years, I’m more impressed than ever how superbly China is engineered for rising prosperity. The comparisons I read between India and China generally give a lot of weight to the difference in political systems, between India’s raucous federal democracy with dozens of parties and China’s one-party centralized rule. The indisputable conclusion: sound economic policies are easier in China to design and execute.

    The few times I’ve been asked to contrast the two countries, I prefer to focus on their most valuable long-term assets. India has English. China has Confucius.

    India doesn’t out-compete China in too many industries. But, in two of these — pharmaceuticals and computer software — English is probably the main reason. India’s educated population is basically native fluent in the language. China has tried to make more of a game of it, especially in computer software and services. But, China is now and will likely remain a bit player in these two large, global high-margin industries.

    India also has, overall, a more innovative financial services industry. This isn’t really the result of widespread English, but the fact that India has a more open financial and currency system than China’s.

    Both nations benefit from having large diasporas. In India’s case, it’s a huge source of cash, with remittances of over $65 billion a year, equal to 4% of gdp. In China, the benefits are as much in kind as in cash. Companies owned or managed by ethnic Chinese from Southeast Asia, Hong Kong, Taiwan and the US have been large corporate investors in China, with the capital matched by transfer of technologies and manufacturing know-how. This is an ever-renewing remittance, as money pours in each year to finance projects with solid long-term rates of return.

    China’s trump card, though, is its Confucian value system. Its potency as an economic force is amply demonstrated by the affluence of China’s Confucian neighbors, not just Hong Kong, Singapore and Taiwan, but South Korea and Japan. Its impact is measurable as well in the outsized economic clout of Chinese immigrants in Thailand, Philippines, Indonesia. Free market capitalism and Confucianism. Anywhere in the world you find sustained economic success and rising prosperity, you will find at least one. In China, they are entwined in a kind of ideal synthesis.

    India, too, has close-knit families and a tradition of thrift and obedience. Confucianism adds to these a reverence for education and practical problem-solving. It contains nothing transcendent, not much, if any, spiritual guidance for a soul-searcher make sense of his place in the cosmos. Honor your ancestors with burnt offerings, sweep their graves at least once-a-year and they’ll grease the wheels of success in this life.

    The Confucian system hasn’t changed much for two thousand years. One vital adaptation over the last century, though, was to accept that women could, and should, play an active role outside the house, reaching the same educational level as men and joining the workforce in equal numbers. Here, India is woefully far behind. China’s growth has been on steroids these past twenty years because its 650 million women have contributed exponentially more to economic growth and prosperity than India’s.

    Of the couple hundred stories I wrote while at Forbes, I’m probably proudest of this India cover story published twenty years ago. It may not seem like it now, but it was a gamble to suggest back then under my byline India was about to come out of its long economic coma. Imagine if instead I’d gone on the record 20 years ago to forecast the coming economic miracle in Russia, Mexico or South Africa – all countries back then seen by some to be “the next great emerging market”. I heard afterward the article helped generate more interest in India’s economic reforms and ultimately more investment in India by US multinationals. This grew about 30-fold in the ten years after the article appeared.

    On a personal level, I made a larger, and I think even safer bet with my own professional life, to move to China and start a business here. Yes, India has English. I work every day in an alien tongue and in a culture steeped in Confucian values that play little or no part in my own ethical code. But, China was, is and shall long remain the great economic success story of all-time. I don’t need someone else’s magazine cover story to tell me that. I live it every day.
     
  17. amoy

    amoy Senior Member Senior Member

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    How China Buried India — A personal perspective - 傅成的个人空间 - 财经网名家博客

    Excerpts

    [​IMG]

    While India’s growth has since surpassed my optimistic hopes in 1994, I firmly believe it will never rival China. This chart below shows how far the gap between the two has grown. Since 1994, China has all but left India behind in its tailpipe exhaust.

    [​IMG]

    In per capita PPP terms, China is now almost 2.5 times wealthier than India. Year by year, the gap grows, as China’s gdp expands faster than India’s, while India’s birth rate is now almost triple China’s.

    I haven’t been back to India since 1994. I have no doubt it’s changed out of all recognition. Changed for the better. Poverty is down. Exports are way up. Its biggest misfortune may be having to compete for capital, and for attention, with China.

    Living full-time and working in China now for more than four years, I’m more impressed than ever how superbly China is engineered for rising prosperity. The comparisons I read between India and China generally give a lot of weight to the difference in political systems, between India’s raucous federal democracy with dozens of parties and China’s one-party centralized rule. The indisputable conclusion: sound economic policies are easier in China to design and execute.

    The few times I’ve been asked to contrast the two countries, I prefer to focus on their most valuable long-term assets. India has English. China has Confucius.

    India doesn’t out-compete China in too many industries. But, in two of these — pharmaceuticals and computer software — English is probably the main reason. India’s educated population is basically native fluent in the language. China has tried to make more of a game of it, especially in computer software and services. But, China is now and will likely remain a bit player in these two large, global high-margin industries.

    India also has, overall, a more innovative financial services industry. This isn’t really the result of widespread English, but the fact that India has a more open financial and currency system than China’s.

    Both nations benefit from having large diasporas. In India’s case, it’s a huge source of cash, with remittances of over $65 billion a year, equal to 4% of gdp. In China, the benefits are as much in kind as in cash. Companies owned or managed by ethnic Chinese from Southeast Asia, Hong Kong, Taiwan and the US have been large corporate investors in China, with the capital matched by transfer of technologies and manufacturing know-how. This is an ever-renewing remittance, as money pours in each year to finance projects with solid long-term rates of return.

    China’s trump card, though, is its Confucian value system. Its potency as an economic force is amply demonstrated by the affluence of China’s Confucian neighbors, not just Hong Kong, Singapore and Taiwan, but South Korea and Japan. Its impact is measurable as well in the outsized economic clout of Chinese immigrants in Thailand, Philippines, Indonesia. Free market capitalism and Confucianism. Anywhere in the world you find sustained economic success and rising prosperity, you will find at least one. In China, they are entwined in a kind of ideal synthesis.

    India, too, has close-knit families and a tradition of thrift and obedience. Confucianism adds to these a reverence for education and practical problem-solving. It contains nothing transcendent, not much, if any, spiritual guidance for a soul-searcher make sense of his place in the cosmos. Honor your ancestors with burnt offerings, sweep their graves at least once-a-year and they’ll grease the wheels of success in this life.

    The Confucian system hasn’t changed much for two thousand years. One vital adaptation over the last century, though, was to accept that women could, and should, play an active role outside the house, reaching the same educational level as men and joining the workforce in equal numbers. Here, India is woefully far behind. China’s growth has been on steroids these past twenty years because its 650 million women have contributed exponentially more to economic growth and prosperity than India’s.

    Of the couple hundred stories I wrote while at Forbes, I’m probably proudest of this India cover story published twenty years ago. It may not seem like it now, but it was a gamble to suggest back then under my byline India was about to come out of its long economic coma. Imagine if instead I’d gone on the record 20 years ago to forecast the coming economic miracle in Russia, Mexico or South Africa – all countries back then seen by some to be “the next great emerging market”. I heard afterward the article helped generate more interest in India’s economic reforms and ultimately more investment in India by US multinationals. This grew about 30-fold in the ten years after the article appeared.

    On a personal level, I made a larger, and I think even safer bet with my own professional life, to move to China and start a business here. Yes, India has English. I work every day in an alien tongue and in a culture steeped in Confucian values that play little or no part in my own ethical code. But, China was, is and shall long remain the great economic success story of all-time. I don’t need someone else’s magazine cover story to tell me that. I live it every day.
     
  18. jus

    jus Senior Member Senior Member

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    China has become considerably more expensive in terms of labour costs. It is now five times more expensive to hire a worker in Guangdong than it is in Mumbai......... this enough for MNC to shift their jobs & China will lost its stupid Policy DUMPING Products world wide


    One thing i didn't understand abt Chinese
    In India we faced Emergency in 1975-77 Indira Made some Stupid Authoritarian things ppl Revolted through out India and next election ppl through out Congress
    But in the case of CHINA CCP RULE (64 yrs) 100 times more CRUEL than India faced Emergency in that 2yrs

    1)If Chinese r not revolting i wont consider them as HUMANS :laugh:
    2)If they r revolting Obviously CCP Crush it (US/Jpn/Ind...... exploit it or add Petrol to it) In few yrs we will see some Messy things:thumb:


    II)Chi is totally dependent on exports& it has Huge Natural resources compared to Ind obviously it reaches 8/9 Trillion economy
     
    Last edited: May 8, 2014
  19. CCP

    CCP Senior Member Senior Member

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    Why not now?
     
  20. jus

    jus Senior Member Senior Member

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    Answer is there ...........(US/Jpn/Ind...... exploit it or add Petrol to it)

    anywhere no outside force can act without INTERNAL FIRE...... we all know how much CCP spending for INTERNAL SECURITY

    if u want detailed ........... my 1st sentence MNC to shift their jobs u will see fire then how it spreads :rofl: (ex xinjiang...)
     
    Last edited: May 8, 2014
  21. abhi_the _gr8_maratha

    abhi_the _gr8_maratha Senior Member Senior Member

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    @jus after 28 years of freedom was mingled in our blood
    . If it come to china they never tasted freedom.
     
    Last edited by a moderator: May 10, 2015

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