India against China: finance, outsourcing, hightech, politics, trade, jobs
by globalization, politics, management forum
Sunday, Aug. 09, 2009 at 10:55 PM
Watch out on China and India! Are these giants are taking advantages of global financial crisis? Will they emerge to become the leaders of 21st century? Is US going to struggle for leadership amid global financial crsis?
World financial crisis vs global outsourcing, finance, leadership, trade, hightech, wealth: China vs India
India may be the world leader in outsourcing IT and software services field but in manufacturing China is by far the clear winner. There is a perception that labor in China is cheapest, but leading strategist George Zhibin Gu (in his new book: China and the new world order) is on the opinion that labor in India is by and large 50% cheaper than China but still China rules, why??
He feels that China in many aspects is ahead of India in manufacturing. Firstly, when India does not even have an effective manufacturing base at all, forget of having chain of key component suppliers, or for that matter logistics chain, infrastructure etc. China on the other hand over last 26 years has built up a complete business chain
Quoting book: China and the new world order, by George Zhibin Gu
For example, in consumer electronics you can set up your shop in Guangdong, then you get more than 10,000 component makers. For example, Sony alone has more than [3,000] China based component makers. Here, you need to know that these component makers come from both Chinese companies and multinationals. So, Sony’s 3,000 come from the Chinese, the Japanese, Koreans and Europeans, and American suppliers, always in China - actually, in one province. That’s the kind of effectiveness and efficiency China has, but in India, and even in Europe you don’t have that kind of advantage.
I found the interview a bit inclined towards China. Yes, its a fact that India lags behind, but not to the extent its been described here. May I am worng, I dont know. Your comments are welcome.
Contents of "China and the New World Order"
This book consists of 26 chapters, which are organized into eight parts:
I. China’s New Role in the World Development
Ch 1. China's social changes vs tourism
Ch 2. Whose 21st century?
Ch 3. Go east, young man!
Ch 4. Everyone in the same boat
ch 5. Power and limits of later developers
II. The Yuan, Trade, and Investment
ch 6. China's competitiveness vs rising yuan.
ch 7. Where to invest your money?
ch 8. Behind a rising yuan
ch 9. Beyond textile trade wars
III. China’s Fast-Changing Society, Politics, and Economy (in light of Chinese and global history)
ch 10. Lessons from Shenzhen, China's new powerhouse.
ch 11. Hunan province: from red state to supergirl and superrice.
ch 12. A revolution of Chinese professions
ch 13. What is the Chinese bureaucratic tradition?
ch 14. Why does Beijing want to reform?
IV. China’s Banking, Insurance, and Stock Market Reforms
ch 15. The explosive insurance market
ch 16. Chinese banks on the move, finally.
ch 17. lessons from China's stock market.
V. Chinese Multinationals vs. Global Giants
ch 18. The coming of age of Chinese multinationals.
ch 19. Behind Chinese multinationals' global efforts.
ch 20. China's technology development.
VI. The Taiwan Issue : Current Affairs and Trends (federation as an alternate way for unity)
ch 21. Federation: the best choice for Taiwan and mainland China.
ch 22. Taiwanese businesses in the mainland.
a vibrant Taiwanese force.
What is the next?
Will Spring follow winter?
VII. India vs. China : Moving Ahead at the Same Time
ch. 23. China and India: can they do better together?
ch 24. Uneven development: India vs China.
VIII. The Japan-China Issue : Evolving Relations in Light of History
ch 25. Japanese business in China.
ch 26. Japan's past aggressions vs current affairs.
About the Author
George Zhibin Gu, a journalist/consultant based in Guangdong, China. A native of Xian, he was educated at Nanjing University, Vanderbilt University, and the University of Michigan. He holds two MS and a PhD from the University of Michigan.
For the past two decades, he has been an investment banker and business consultant. His work focuses on helping international businesses to invest in China and helping Chinese companies to expand overseas. He has worked for Prudential Securities, Lazard, and State Street Bank, among others. He generally covers mergers and acquisitions, venture capital, business expansion, and restructuring.
Also, he is a journalist on China and its relations with the world. His articles or columns have appeared in Asia Times, Beijing Review, The Seoul Times, Financial Sense, Gurus Online, Money Week, Online Opinion, Asia Venture Capital Journal, and Sinomania, among others. He is also a member of the World Association for International Studies hosted by Stanford University.
He is the author of four books :
1.China and the New World Order : How Entrepreneurship, Globalization and Borderless Economy Reshape China and World, foreword by William Ratliff (Fultus, 2006) ;
2.China’s Global Reach : Markets, Multinationals, and Globalization, afterword by Andre Gunder Frank (revised edition, Fultus, 2006) ;
3. China Beyond Deng : Reforms in the PRC (McFarland, 1991) ; and
4.Made in China ( English edition forthcoming, Fall 07 ; Portuguese edition, Centro Atlantico, 2005).