Foreigners doing business in China feel boxed out

[amoy]

So having better infrastructure won't mean squat unless profitability and IP protection is there.

Lots of factors in addtion to infrastructures, such as
work ethics / disciplines -- already threads on East Asia vs. South Asia
culture / mindset -- I can speak for sure Chinese are more open minded and confident just based on the fact there're more Indians in China than Chinese in India
domestic market -- unlike what u imagine, not always export oriented. China's market is enormous and potential
education (even elementary) -- what's Ind's literacy rate vs China's?
policy consistency
trade policy

on basis of those factors foreign investment may opt for Vietnam or even Cambodia for manufacturing.

multinationals have been able to shed costs (Western labor) at a rapid clip, creating massive wins for the executive class while (to gain access to the China market) being forced to share know how, technology, and the like.

at the onset of opening , China set a strategy of 'market for technology' i.e. foreign enterprises were requested of 'transfer of technology'. in the end Chinese do not only get 'capital' (nowadays 'surplus') but also know-how of course. that's the way to leap and overtake... u see very clearly in nuclear industry, auto industry and even train and aircraft (Bombadir/Boeing alike are required to set up plants and transfer tech to china).

* Signs of nationalism are evident in the grooming of state-owned companies to dominate their industries as "national champions," often at the expense of private Chinese companies as well as foreign firms. From airlines to coal mining to dairy products, government policies are expanding the state's role.

Actually this trend (not necessarily 'nationalism' driven) shall be welcomed. Why? In a developing country State's role is always indispensible in promoting big and long-term projects.

private companies have their confines - inadequate capital, often driven by short-term gains, lack of scale of economy...

coal mining is a typical example. those private mining companies are reluctant to invest in security facilities and explore in compliance with regulations. their rough way of exploitation results in frequent casulties/death of miners and inefficiency and waste and contamination. that drives large state-owned companies to take over coal mines with advanced tech/facilities

As for airlines recently a few malmanaged private airlines have to be liquidated or restructured. again state owned airlines (usually bigger) intervene.

these phenomena are far profound than being oversimplified as nationalism-motivated.
i

 

[tarunraju]

Lots of factors in addtion to infrastructures, such as
work ethics / disciplines -- already threads on East Asia vs. South Asia
culture / mindset -- I can speak for sure Chinese are more open minded and confident just based on the fact there're more Indians in China than Chinese in India
domestic market -- unlike what u imagine, not always export oriented. China's market is enormous and potential
education (even elementary) -- what's Ind's literacy rate vs China's?
policy consistency
trade policy

on basis of those factors foreign investment may opt for Vietnam or even Cambodia for manufacturing.

We are talking about the Philippines as a manufacturing destination.

As for East-South Asia differences, they don't mean much, when India is the second most competitive manufacturing destination after China.

 

[amoy]

We are talking about the Philippines as a manufacturing destination.

yes, Philipines. Let me throw off the mask of 'political correctness' - Philipines is a 'loser' when it comes (but not limited) to manufacturing.

When I walked on the streets/ in parks of Hong Kong I saw many many Pilipinos (10+k altogether in HK), who work as babysitters or servants... Many of them have college diplomas. And one of their advantages as welcomed by HK employers is they speak GOOD ENGLISH and WELL EDUCATED!!! but woefully they're not in the workforce in Philipines' manufacturing or other industries but as overseas babysitters earning probably 5000HKD/month!!!

I have high respect for hard working people. The real problem is Philipines rulers/governments haven't lost decades and decades for development and well being of its peoplAe despite advantages they have. In fact Philipines once had the HIGHEST GDP PER CAPITA after WW2 in Asia.

their biggest problem is lack of a strong and consistent positive driving force (like China's CCP). they have a 'democracy' - but for a 3rd-world country it's a 'decoration' and 'luxury' and becomes a 'toy' of dictatorship or big landlords (ref. Philipines History).

They havent implemented the long promised 'land reform' to distribute lands to landless peasants while top politicians are owners of big plantations themselves. Majority of people are impoverished and therefore can't qualify themselves as affluent domestic consumers.

Muslim separatists and communist uprisings (poor landless peasants) are undermining its stability and scaring off investors.

What advantages do they have for manufacturing? "everyone' speaks fluent English? or friendly with the West (the US)? 'Democracy'?

More or less we see many other countries mirroring Philipines.

Foreign businesses have the best sense in finding an ideal destination though they're gruntling about being 'boxed out' from China.