Global Strategy | International Business | Emerging markets | International Finance | Social Media | Technology | Higher ahead of the curve
The China Economic Quarterly (CEQ) is an independent newsletter devoted to analysis of the Chinese economy and business environment since 1997.
It draws on the 25 years of combined experience of its editors, veteran financial journalists Joe Studwell (author of The China Dream) and Arthur Kroeber, and also publishes articles by leading China-focused economists and journalists. Visit the CEQ online at http://www.theceq.com/
Sphere: Related Content
As I will visit Shanghai this summer I was reading upon an article which reflects the China’s current architecture evolvement.
Shanghai, China’s commercial capital is starting to take on the chic of Paris, the sophistication of New York and the futuristic vibes of Tokyo. It already boasts the world’s fastest train (the Maglev that takes eight minutes to run the 30 km from Pudong airport into the city), the longest underwater pedestrian tunnel (under the Huangpu river) and the world’s tallest hotel-the 88-storey Grand Hyatt, complete with the world’s highest swimming pool and longest laundry chute.
Most interesting, it has Xintiandi, a two-hectare (nine-acre) complex of hip restaurants, bars and shops in an open, elegant, low-rise style that cost $170m to develop and is one of the first examples of China preserving its own architecture. Xintiandi’s houses are traditional shikumen (literally “stone gate”) built along narrow alleys that middle-class professionals flocked to for a sense of community and safety, and which made up 60% of the city’s residential housing between the 1880s and the 1940s.
Chinese architecture has rarely been this confident. In the old days, it was strictly governed by the emperor, who imposed restrictions on height, colour and design. Now China has the money and the talent-foreign architects who are now begging to work there, returning Chinese and home-grown graduates-to be different.
Sphere: Related ContentIt is a huge opportunity. The current political system can still command huge resources; for those with government backing, there are few planning restrictions; and given the scale of internal migration-one-third of all Chinese will move into a new home over the next decade-China will be building whole new cities in the coming years. As long as it makes commercial sense, Mr Lo hazards that the mainland may well tear down a lot of the ugly buildings it has thrown up during the past 20 years and start again-which is exactly what happened in Hong Kong. And as their new model, China’s architects could proudly take Shanghai.
My recent readings and thinkings are regarding the Hi-Tech and Telecommunication industries. Meanwhile a China’s leading telecoms-equipment manufacturer named Huawei is agressively pushing into international markets. In December, Huawei won an estimated $100m contract to build a third-generation (3G) wireless network for Telfort, a Dutch operator that has always used gear from Ericsson, the world’s largest telecoms-equipment firm. In January, Huawei won a $187m order for another 3G network, in Thailand, beating Ericsson and Motorola with a bid 46% below the operator’s original estimate.
Last week came evidence that Huawei can compete on more than just price. A report based on a survey of over 100 telecoms operators worldwide, carried out by Heavy Reading, a market-research firm, found that Huawei ranked eighth among wireline-equipment suppliers, up from 18th last year. (Cisco came top.) Most strikingly, Huawei ranked fourth in service and support. The report calls Huawei’s ascendancy “astounding” and says it has already surpassed several incumbent vendors in perceived market leadership.
I foresee great challenges and opportunities in this industry as we entering the “21st Century Network”. It will be an upbeaten “fight” which company can set the pace of technological innovation and which suppliers can follow. Moreover, some Chinese’s companies are pursuing to compete on quality rather then price, like Huawei and Haier, and in a broader range of industries as initially.
I’m particulary interested in how the developed-world rivals, meanwhile, are responding to the threat from Huawei and others. Finally, the outlook looks promising to keep watching closely.
Sphere: Related Content
Asia's Economy
The beneficial impact of sourcing in the Chinese and Indian economies may continue for many more years. A recent survey of 248 chief financial officers in Asia by CFO Asia, a sister publication of The Economist, found many of them complaining of intensifying competitive pressures: 51% of manufacturing bosses said that they cut their prices in the past year, while only 23% raised them.
Source: Economist
Sphere: Related Content
Today I was reading the following appealing article which I like to share with you! Perhaps you can give me your thoughts on this article by posting a comment!
The most competitive companies will bring together the best talents around the world and link them virtually with each other.
The forces of globalisation are reshaping our world, with ever-growing economic integration as well as increasing movement of people and knowledge across borders. Global trade accounts for around 30% of world GDPâ??four times its share in the early 1970s. Developing countries are an important part of this story. Their stock of inward foreign direct investment (FDI) totals 30% of their GDP, compared with 13% in 1980. Globally competitive transnational corporations have begun to emerge from China, India and Latin America. Haier (China), Tata Motors (India), Acer (Taiwan), Petrobras (Brazil), Cemex (Mexico) and the IT-services companies of India are examples. Thanks to them, the outward stock of FDI from developing countries has increased from 3% of GDP in 1980 to 10% today.
Globalisation and the information revolution have raised customer expectations. To satisfy them, companies will need to source capital where it is cheapest, produce where it is most cost-effective and sell where it is most profitable, without being constrained by national boundaries. This is the essence of globalisation. It leverages each nationâ??s competitive advantage to produce goods and services more efficiently. The development of a product or service might typically be split among countries, with experts in America defining the customer requirements; the British defining the product attributes; the Australians defining the technology architecture; the Indians doing the software development; the Germans or the Japanese doing the manufacturing; and the Taiwanese doing the packaging. This new business model will distribute high-quality jobs around the world and deepen international collaboration.
We have already seen the emergence of such a model in the IT-services industry in India, leveraging talent and infrastructure in different parts of the world. Development tasks are distributed across various locations. The work that can be done in value-for-money, talent-rich places such as India is maximised. At the same time, the effort required at the client site is minimised.
However, before this model becomes viable for all international trade, some significant challenges must be faced. Working among teams spread across various locations requires a process-driven approach and standardisation in key areas. Cross-cultural issues have to be handled well. Robust structures are needed to ensure that risks are tracked. Speed and responsiveness to business needs are essential, to allow continuous innovation. And effective knowledge management is at the core of an efficient collaboration.
For companies, the order of the day will be to look for talent wherever it is available and create international relay teams. These virtual teams will work in unison, for faster development and delivery. Harnessing such intellectual power will accelerate growth.
The companies that can overcome these challenges will delight their customers with the speed of their response and the value of their product or service. These firms will successfully blend the creativity of an Italian with the professionalism of an American and the focus of an Indian just to name a few nationalities. They can emerge from anywhere in the world, and they will be the true global contenders of 2005.
Source: Economist
Sphere: Related Content|
|
Recent Comments