Tuesday, April 26, 2005

China Inc.

Madein China? You bet, originally uploaded by mightymerk.

Just finished reading a book I found quite interesting.

China Inc. - How The Rise of The Next Superpower Challenges America and the World

Some bulletpoints from the back cover:

* Did you Know? *

Three hundred million rural Chinese will move to cities in the next fifteen years. China must build urban infrastructure equivalent to Houston's every month in order to absorb them.

220 billion text messages were sent over mobile phones in China last year.

General Motors expects the Chinese automobile market to be bigger than the U.S. market by 2025. Some 74 million Chinese families can now afford to buy a car.

China has more speakers of English as a second language than America has native English speakers.

China has more than 300 biotech firms that operate unhindered by animal rights lobbies, religious groups, or ethical standards boards.

On average, American companies make a 42 percent return on their China operations.

There are 220 million "surpluss workers" in China's central and western regions. The number of people working in the United States is about 140 million.

Apparel workers in the United States make $9.56 an hour. In El Salvador, apparel workers make $1.65. In China they make between 68 and 88 cents.

One in ten American jobs is at risk of being "offshored."

There are 186 MBA programs in China.

China's sex industry alone needs 1 billion condoms a year.

China has 320 million people under the age of fourteen, more than the entire population of the United States.

More people use the Internet in China than in the United States.

I found the book provided a fairly good treatment towards the topic. China is painted no more the reavenous producer of cheap/copied goods as Americans, Europeans and the like are painted as cost concious consumers ready to purchase pirated material at a fraction of the cost of the original source product. This applies to a range of products from low cost DVD players, Cisco and 3Com network cards to counterfeit Heineken and Budweiser beers.

As an American I do have concerns with regards to the amount of T-Bills secondary mortgages etc. that Chinese investors are purchasing to effectively finance the purchases that Americans are making of their low cost products.

I also found some of the statistics regarding the follwoing technology companies quite interesting:

Only 210 people work for Netgear (you know the guys who make the router sitting on your desktop) which translates to roughly $1.5 million in sales per employee. A staggering number achieved in large part by the companies decision to have a state of the art manufacturing facility in China. To give you some additional perspective, as of 2001 Sony had 180,000 employees worldwide, with sales of $58 billion, or around $322,000 per employee. Business heads can appreciate these numbers.

Overall the book was an excellent read in which the author approached the subject from a variety of different angles and provided many supporting arguments and data. I suggest it to anyone interested in business, economics as well as geo political studies.
Posted by mightymerk, 6:11 PM


By Blogger Vector

I wouldn't be suprised if it was going to be the next leading nation. It's political system doesn't have to change very much as long as it's economical functions are flexible enough. Nobody cares what their ideologies are as long as you can do business with them.

I saw a chinese clothing factory on TV, it was brand new everything was new and shiny, and they had several lines making clothes for differend brands. Tommy Hilfiger was one of them. It's kind of funny that you can go in a shop and pay XXX$ for a tommy shirt and X$ for some cheap brand and never realize that they were produced on parallel/the same line(s).

@ 6:10 AM  

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