Thursday, November 11, 2010

China buys up the world

The article illustrates an already standing issue of China's economy coming to gain power in the global economy. "Chinese firms own just 6% of global investment in international business. Historically, top dogs have had a far bigger share than that. Both Britain and America peaked with a share of about 50%, in 1914 and 1967 respectively." For every economy it is necessary for them to engage in international trade and production. Therefore China has started to depend on other countries for two sectors which they still craved for bettering their production "to acquire raw materials, get technical know-how and gain access to foreign markets." China has great potential in foreign markets, however they will have to adapt to foreign consumers to deal with the changes. Will China be able to over take the already developed marketing systems in the West?

1 comment:

JP said...

This is easily the most open-minded and refreshing piece on a China-related topic that I have seen written by the Economist for a long long time. I love how the author the rise of China as a good sign instead of a threat to the world. It's time to stop thinking of China as a communist country. Its economy has been so much more open and it's rapid growth has proven that. I thought there are things that the U.S should learn from China, things that has made it the the world’s current second-biggest economy from a poor communist country just about 30,40 years ago.