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Thread: The coming age of Chinese multinationals

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    The coming age of Chinese multinationals

    The following paper is interesting that shows the growing power of Chinese multinationals. A Great Surprise.


    The coming age of Chinese multinationals

    by George Zhibin Gu

    December 2004 will be remembered as a time when a faceless Chinese company, Lenovo, suddenly took the global stage. The bluest of blue-chip multinationals, IBM, got out of its personal computer business by selling out to Lenovo, making this faceless company the third-biggest global PC player. So are there other Chinese brands which could take the world by storm? A rising economy must create multinationals. The UK and US have done it. Japan and South Korea have followed. Now it's China's turn.

    ...

    http://www.onlineopinion.com.au/view.asp?article=3337

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    So much info. Looks like that the Chinese multinationals may do better than the Japanese ones.

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    hehe, I don't expect that time will come in the short-term. Some (i would say, plenty of) managers of Chinese State-run enterprises still can not read a Balance Sheet.

    Ridiculous but True.

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    Quote Originally Posted by lightbeam
    The following paper is interesting that shows the growing power of Chinese multinationals. A Great Surprise.


    The coming age of Chinese multinationals

    by George Zhibin Gu

    December 2004 will be remembered as a time when a faceless Chinese company, Lenovo, suddenly took the global stage. The bluest of blue-chip multinationals, IBM, got out of its personal computer business by selling out to Lenovo, making this faceless company the third-biggest global PC player. So are there other Chinese brands which could take the world by storm? A rising economy must create multinationals. The UK and US have done it. Japan and South Korea have followed. Now it's China's turn.

    ...

    http://www.onlineopinion.com.au/view.asp?article=3337
    Too optimistic about China, lightbeam. The best-educated of the Chinese are still abroad, and mainland China can't yet accommodate them. China has a long way to go.

  5. #5
    AmericaFlorida TuskCracker's Avatar
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    .
    It is said over and over

    China will get old, before it gets rich

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    Quote Originally Posted by A5573A
    hehe, I don't expect that time will come in the short-term. Some (i would say, plenty of) managers of Chinese State-run enterprises still can not read a Balance Sheet.

    Ridiculous but True.
    True, The biggest problem with China's state-run companies is not their managers' illiteracy but corruption inherited from the CCP.

    But no need to be that pessimistic either, Private section has long overweighed state-owned section in China, and the scale is still continuing tilting to the private side.

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    Quote Originally Posted by JackInBox
    .
    It is said over and over

    China will get old, before it gets rich
    Iy's already very old

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    AmericaFlorida TuskCracker's Avatar
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    MaybeNot: The coming age of Chinse Multinational

    .
    This has been reported many time, and nobody seems to dispute
    the basic issues, and trends.

    China may grow old before it gets rich, new study warns
    By Hamish McDonald, Herald Correspondent in Beijing
    April 28, 2004

    Faced with a population ageing at an unprecedented rate, China has been warned it may grow old before it has a chance of reaching widespread prosperity.

    "Today's great powers became affluent before they became ageing societies," say the US demographers Richard Jackson and Neil Howe in a new study. "China may be the first major country to grow old before it grows rich."

    The proportion of over-60s in the population will rise from the current 11 per cent to 28 per cent - and possibly even as high as 32 per cent - by 2040, the year when communist leaders are confident that fast growth will have brought China close to challenging the economic power and strategic size of the United States.

    "In Europe, the elder share of the population passed 10 per cent in the 1930s and will not reach 30 per cent until the 2030s, a century later," say Jackson and Howe in their paper for Washington's Centre for Strategic and International Studies. "China will traverse the same distance in a single generation."

    By then the country will have almost 400 million elderly people who, unless broad pension schemes are started soon, will have no support. Although China has a healthy national savings rate of 40 per cent, households provide only a tiny proportion of savings and most are invested in dwellings.

    Few people qualify for social security and attempts at setting up new pension funds have led to an "empty account" syndrome, where contributions are siphoned away by official institutions to meet the unfunded obligations of state-owned enterprises.

    Most rely on traditional old-age insurance in the form of children. But the one-child policy enforced since 1978 has led to the so-called "4-2-1 problem" where one child will be expected to support two aged parents and four grandparents.

    The emerging gender imbalance, resulting from selective abortion of females, also means that daughters-in-law, who do the actual caring for the elderly, will be in short supply.

    Those healthy enough to continue work will find job-hunting tough. Many Chinese heading into retirement would have missed out on secondary and college education during the 1966-76 Cultural Revolution.

    "As elders, they may find themselves competing with teenagers for sweatshop jobs," the authors say.

    The warning in the paper titled The Graying of the Middle Kingdom is partly a job application by its funders, the huge US funds manager Prudential Financial Inc. Like insurers worldwide it seems to be eyeing a role in helping China set up a universal pension scheme in time to avert the crisis.

    But it adds to warnings by Chinese demographers that looming population imbalances could bring social turmoil.

    It also comes as the Chinese Government published details of unemployment, showing that despite recent 9 per cent economic growth, job creation was still far from soaking up the country's pool of surplus workers.
    _.

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    Jackinbox seems to be excessively worrying himself. Twenty years ago nobody could see that China would today be the third largest economy on this globe.

    http://www.buseco.monash.edu.au/unit...ions/index.php

    http://www.china-embassy.org/eng/zt/zgrq/t36663.htm

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    Economist in Residence lonesoullost3's Avatar
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    Dont' forget about Heier's (sp?) bid on Maytag. If they acquire that company then it will also become a huge multinational firm. Surely many of China's educated are located outside the country, but people who start businesses in Hong Kong and expand business to the mainland will also be a source of these Chinese multinational firms. I think that is where the majority of native entrepeneurial multinationals will spring up from. Other than that, multinationals will come from the landed companies that have been developed over the years under the protectionist economic policies of the mainland. They will see a foreign major company floundering (as many have been) and will take the opportunity to invest in that company and add it to their umbrella. Just look at Heier and Maytag. IBM on the other hand - that came as a bit of a surprise.
    http://www.operationdeep.org
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    Quote Originally Posted by lonesoullost3
    Dont' forget about Heier's (sp?) bid on Maytag. If they acquire that company then it will also become a huge multinational firm. Surely many of China's educated are located outside the country, but people who start businesses in Hong Kong and expand business to the mainland will also be a source of these Chinese multinational firms. I think that is where the majority of native entrepeneurial multinationals will spring up from. Other than that, multinationals will come from the landed companies that have been developed over the years under the protectionist economic policies of the mainland. They will see a foreign major company floundering (as many have been) and will take the opportunity to invest in that company and add it to their umbrella. Just look at Heier and Maytag. IBM on the other hand - that came as a bit of a surprise.
    You are right , some companies are in the protection of the gov't , then the multi-nationals grows ,but I think that may be 2 different styles between western and eastern , in western , they emphasize much on individual power to get along ,but in China ,it's not so possible , why? gov't would seriousl y restrict you if you wanna develop with free pace, that's to achieve the general target for the nation , so , many multis seeks to establish some rules between gov't and businesses. In China , some industries are promoted while the other ones restricted or banned , i believe it's the same for USA.

    So , maybe it's a different viewpoint.

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    Well, opportunities and challenges are both great.

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