Few people who are in touch with what is happening in the world today would argue with the assertion that China is prospering, economically. A question does come up though, as to what the factors behind this prosperity are. That is where we get to learn that there are at least five things that make it easy for China to prosper economically.
The first thing that makes it easy for China to prosper economically is its huge population.
The second thing that makes it easy for China to prosper economically is its geographical size.
The third thing that makes it easy for China to prosper economically is its social organization.
The fourth thing that makes it easy for China to prosper economically is its political structure. This has been termed by some people as dictatorial. Indeed, when visiting China, you could even (allegedly) have difficulties accessing a financial site like www.ebtedge.com, that being the EBTJPMorgan site at ebtedge.com. This is thanks to the ‘closed’ nature of the Internet in China. Now China may be a dictatorship but, apparently, it is a people’s dictatorship, rather than a personal dictatorship.
The fifth thing that makes it easy for China to prosper economically is its reasonable endowment with natural resources.
Given a chance to choose, most people would prefer living in the United States, as opposed to living in China. In other words, the United States is viewed as a better place to live than China. We are interested in understanding why.
The first reason as to why the United States is viewed as a better place to live than China is in the fact that incomes are better in the United States.
The second reason as to why the United States is viewed as a better place to live than China is in the fact that there is more freedom in the United States. In the United States, you have freedom to associate, freedom to live anywhere, freedom of expression, freedom of worship and so on. Even if you are in prison in the United States, you still find that you can receive emails through services like corrlinks.com, that being the corrlinksinmate email accessible through corrlinks.com. That would, on the other hand, be totally unthinkable in a place like China, where the prisoners often end up living in sub-human conditions. As a matter of fact, some prisoners in the United States end up living better than some ‘free’ people in countries like China.
Few people will argue with the assertion that China has been growing in many ways over the last few years, especially after the economic reforms that saw the rise of free enterprise in the country. Indeed, China is increasingly being regarded as a ‘competitor’ to America in many ways. But even then, it is a well known fact that it is not yet a superpower: hence the commonly asserted fact that America is the only superpower, after the fall of the USSR. The question we are faced with then, is as to whether China will ever be viewed as a true superpower.
We are of the opinion that China will only get to be viewed as something akin to a superpower when it gets to a point where it can truly influence geopolitics in a direct way.
We are also of the opinion that China will only get to be viewed as something akin to a superpower when it gets to a point where its prosperity cascades to the masses. That will be the time when, for instance, there are solid social safety nets in China, similar to the one for New Jersey unemployment claims which can be accessed by eligible people after they fulfill the various njuifile.net login requirements.
It tends to be hard to outsource service provision to China. What we normally have is a situation of people outsourcing manufacturing operations to China. But we hardly ever have people outsourcing service provision (like for instance, call center operations) to China. Thus, for instance, it is hard to imagine any of the folks who offer remote IT support at logmein.com or at logmeinrescue.com being in China. We are trying to understand why that is the case.
The first reason as to why it tends to be hard to outsource service provision to China is in the fact that most Chinese don’t speak English. India has a huge English-speaking population: hence the reason as to why people who are looking to outsource service provision tend to focus on that particular country.
The second reason as to why it tends to be hard to outsource service provision to China is in the fact that the culture in China is so different.
The third reason as to why it tends to be hard to outsource service provision to China is in the fact that there are hardly any outsourcing partners in the ‘services industry’ operating in China. Most of the Chinese outsourcing moguls have focused their attention on manufacturing.
You need insights on certain things, before setting up a company in China.
Firstly, before setting up a company in China, you need insights on how the Chinese culture works. This should help you understand how you will be relating with your suppliers and your employees. This can also help you figure out whether, in China, you can do things like outsourcing payroll accounting to the local versions of companies like ADP iPay, whose workings are described in this post.
Secondly, before setting up a company in China, you need insights on how the local government bureaucracy works. You have to understand the Chinese government is extremely influential. China is not like the United States, where the government only plays a peripheral role. It definitely helps, if you can get the patronage of someone who is in the good books of the local branch of the Chinese communist party, if you are to get things to work well.
Thirdly, before setting up a company in China, you need insights on what various things cost in China. You may need to carry out surveys to establish this, as opposed to relying on your own estimates, which may be at odds with the reality on the ground. You need to understand that most of what you think about China (based on what you hear in the west), is pure propaganda.
A point may come when you, as a US-based businessperson, end up being forced to move your manufacturing operations to China, in order to protect your competitive edge. When that happens, you will find yourself having to deal with the various aspects of managing a China-based manufacturing plant.
The first key aspect in the management of a China-based manufacturing plant is that in which you endeavor to ensure that the people doing the actual work are well taken care of. Otherwise you will be guilty of promoting slave labor and other such practices. This aspect can be challenging, because it surely can’t be as easy as setting up a portal like the one that Macys Insite uses online, to ensure proper employee connection. In the China-based manufacturing plant’s case, you will probably need to have people on the ground, monitoring matters to do with employee welfare for you, and on your behalf.
The second key aspect in the management of a China-based manufacturing plant is that in which you endeavor to ensure that the production targets are met.
The third key aspect in the management of a China-based manufacturing plant is that in which you endeavor to ensure that the standards are maintained.
China is nowadays viewed as a good manufacturing destination: hence the scenario where more and more US companies are moving their manufacturing operations to the country. We now venture to answer the question as to why China is viewed as a good manufacturing destination.
The first reason as to why China is viewed as a good manufacturing destination is because of its low labor costs. But this can be controversial, because at times, the wages are so low that you end up with folks who live in near-slavery conditions. But because it is not forced labor, many people are okay with it.
The second reason as to why China is viewed as a good manufacturing destination is because of its low energy costs.
The third reason as to why China is viewed as a good manufacturing destination is because of the ease with which businesses can be registered there. Granted, in China, you won’t find an online portal like sunbiz.org, which many people refer to as simply Sunbiz and which can be accessed at www.sunbiz.org. But so long as you have a guide/broker who is well connected to the local communist party, chances are that you won’t have a problem getting your manufacturing enterprise registered in the People’s Republic.
Increasingly, a picture is being created where China is portrayed as a very good place to live in. The basis for this impression is in the fact that a story is being told, about China’s improving fortunes, economically. But the truth of the matter is in the fact that America is (for the most part) still a better place to live than China. And there is no hope of China catching up with America, in terms of quality of life.
One of the challenges associated with living in China is in the fact that getting a decent job there is still hard.
Another challenge associated with living in China is in the fact that the wages there are still quite low.
Yet another challenge associated with living in China is in the fact that the government system is still unpleasant. You can, for instance, end up in jail for a very small mistake. In china, don’t expect conveniences like that of simply getting a ticket for a traffic offence, and being able to pay it on a portal like www.njmcdirect.com: that being a website where you can actually pay for a ticket (traffic offence fine ticket), under the NJMC direct system. In china things are much tougher.
It is not always easy for Americans to do business in China. Further enquiry on this matter tends to reveal that there are some two things that make it hard for Americans to do business in China.
The first thing that makes it hard for Americans to do business in China is the fact that the Chinese economy is one that, practically speaking, turns out to be a ‘closed economy.’ Americans, on the other hand, are used to their country’s open economy: and getting a hang of how things are done in China can be very difficult.
The second thing that makes it hard for Americans to do business in China is the fact that the Chinese culture is very different. So management strategies that work in the United States don’t always work so well in China. For instance, while in the United States, it is possible to undertake some HR management tasks through an online portal, such as the one created by Sears at 88sears.com, you may find difficulties in implementing a similar system in a place like China. In China, the culture seems to favor direct supervision, in a situation where the ordinary employees tend to respect (and almost fear) their superiors.
An argument is often being fronted, that ‘China is about to overtake the United States’, as the worlds’ biggest economy. That may very well be the case, but the truth of the matter is in that there are some problems with the Chinese economy that can’t be overlooked.
The first major problem with the Chinese economy is in the fact that it is way too export-oriented.
The second major problem with the Chinese economy is in the fact that it is more or less a closed economy.
The third major problem with the Chinese economy is in the fact that that it is an economy controlled by a certain clique of elites: leading to a situation where the gap between the rich and the poor is always very huge. So, while people are talking about the growing Chinese middle class, we still have huge number of people in the country who are toiling in sweatshops. These are the sorts of people who, if they were in the United States, would probably not every qualify to be paid via direct deposit through, say, the Citicards which are linked to the Citi credit card account and are accessible via the page where we also have answers to the www.citicards.com login questions. These are the sorts of people who control the means of production, professing the goodness of communism, while enjoying the fruits of capitalism all the way!