The hidden dragon ( whats inside China)


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  • . The Purchasing Power Parity figure for China is only slightly better at 7,800 US dollars, ranking China 82nd out of 179 countries.
  • A Free Trade Agreement (FTA) between India and China may fail to materialize if China does not address the near $20 billion (Rs. 90,000 crore) trade deficit that India has with China, Indian commerce ministry officials have said. China needs to lower non-tariff barriers to facilitate the increased movement of goods over the border in the other direction, argues India. The issue of non-tariff barriers raised by China and the hindrance to Indian exports caused by it has been raised; however, high tariff barriers have not been considered prohibitive for trade either for India or China. In such a scenario, a preferential or a free trade agreement has little, if any, relevance.
  • Also, China being a non-market economy, the amount of subsidy it provides to its manufacturing sector is uncertain. China officially joined WTO in September 2001 after 15 years of negotiations and will only be treated as a market economy starting 2016, according to WTO rules. The non-market economy status allows other countries to impose additional duties on China's products until 2016.
  • South korea largest company SAMSUNG has 40 billions sales. 2002.
  • Many of these enterprise suffer losses, stay in bussiness only because of the Monopolies they enjoy, and thus are’nt Globally Competitive. Less protective the hybrids are more competitive the hybrids have become, as the case of Haier and Galanz in the Home appliance Industry.
  • Stock Analyst “Huwai is the biggest reason I know to sell Cisco stock’.
  • Many western business manager believe that high tech businessess are immune to competition from Chinese companies. CICT..CHINA INSTIUTE OF COMPUTING TECHNOLOGY CELL BIOLOGY…Chinese academy of Science….Health Digit…biochip..protein chip..used for diagnosis of cancer….
  • The hidden dragon ( whats inside China)

    2. 2. Presentation includes:-
    3. 3. According to  Dataxis Intelligence , China mobile is the world’s largest mobile operator with its 539 Million subscriber base of which 7.6 million using 3 G services at the end of March 2010.
    4. 4. The Economy of China <ul><li>GDP </li></ul><ul><li>$5.88 trillion (nominal: 2nd; 2010) </li></ul><ul><li>$9.05 trillion (PPP: 2nd; 2009) </li></ul><ul><li>Industrial Contribution: 48% </li></ul><ul><li>Focus on government control of markets and firms till 1977 </li></ul><ul><li>Political ideology shaped economic discourse </li></ul>Market liberalization in the Chinese Economy has brought its huge economy forward by leaps and bounds - but rural China still remains poor, even as its cities increase in affluence . Nominal=Current Dollar GDP
    5. 5. 1978-2002 country GDP grew by 9.3 % annually 3times faster then the American Economy did- and its per capita income more than quadrupled from 231 $ to 940 a year . Most Consumer. GDP per capita $3,735 (nominal : 97th; 2009) $6,778 (PPP: 93th; 2009)
    6. 8. India and China: A long way <ul><li>India </li></ul><ul><li>The functioning private sector and public sector. </li></ul><ul><li>After the crisis in 1991, India still follows the participatory multi party democracy. </li></ul><ul><li>Population growth rate of 1.4% and literacy rate of 60%. </li></ul><ul><li>The Indian labour force is 406 million, with 60% in agriculture, 17% industry and 23% services. </li></ul><ul><li>China </li></ul><ul><li>The centrally planned and non market economy </li></ul><ul><li>China has authoritarian, one party regime with liberalisation. </li></ul><ul><li>Population Largest in the world. </li></ul><ul><li>Labour force worth 700 million. </li></ul><ul><li>By occupation 50% of the country’s labour force is in agriculture, 22 % in industry and 28% in services. </li></ul>
    7. 9. China GDP Growth Rate
    8. 10. India GDP Growth Rate
    9. 12. Where China investing
    10. 16. Rising GDP…rising Foreign Reserve
    11. 17. Rising Chinese EXPORT
    12. 18. China Oil Imports China's imports surged 38.7 percent in 2010, and exports went up by 31.3 percent.
    13. 19. THE GREAT DIVIDE
    14. 21. 3 Chinese Firms break Fortune 500’s Top 10 54 companies. Indian companies in fortune 500 IOCL,RIL,SBI,BPCL,HPCL,TATA STEEL, ONGC & TATA MOTERS Rank Company Revenue (In $ million ) Profits (In $ million ) 7 SINOPEC 187518 5756 8 STATE GRID 184406 -343 10 CHINA NATIONAl PETROLEUM corporation (CNPC) 165496 10272
    15. 22. CHINA NATIONAL BRANDS Haier Group- 50 % MARKET SHARE of USA. Global more then 5 %.* Huawai Technologies- 3 % market share for Routers in 2003… * Legend Group- 20 % market for mother board. * Sichuan Chinghong Electric- 10 % of the US market for rear-projection TVs.* CIMC – 40% market share in refrigerated containers.* New Hope Group- China’s largest Private sector company has just 1 billion sales.* Guangdong Galanz – which manufactures 1 out of every 3 microwave oven.* * As per 2002
    16. 23. Chinese way of doing business-
    17. 25. Haier Strategy
    18. 27. Dedicated exporters
    19. 28. Competitive networks...Example
    20. 29. China networks has taken Market for:-
    21. 30. Networks benefit….pro and cons
    22. 31. Technology startup-
    23. 32. Forbes 2011, Januray issue
    24. 33. Thank you…