No question, China has gone through a robust development in recent decades. The Chinese have carefully planned and implemented steps that no other continent-size country could have done. But now they face an even more daunting challenging: innovation. The Chinese can make only copies, or isn’t that right? The answer will undoubtedly shape our global future.
I recently had the opportunity to have in-depth discussions with a handful of young CEOs of leading Chinese. I would now like to briefly offer a few insights and conclusions.
Continue reading ‘Innovation or imitation – the challenge of China’
Comment on Robert Nemeth’s question “Can Centrope profit from the Chinese recovery?“ below.
China has been impressing analysts and and the rest of the world since the start of its economic redirection almost 30 years ago. But there have always been warning voices, on malevolent copyright and technology theft on one hand, on bubble based growth on the other.
I have always been in favour of stronger links between Europe and China – simply for strategic reasons: Of the three (or maybe four, including India) superpowers China is Europe’s best choice, despite neglecting human rights etc. (The others are not better in this respect.) Continue reading ‘China: Yes, but carefully’
The IMF recently published its latest World Economic Outlook Update. The forecasts are not surprising: “The global economy is beginning to pull out of a recession unprecedented in the post–World War II era, but stabilization is uneven and the recovery is expected to be sluggish.”
However the situtation is different in China, which is expecting 7.5 % growth in 2009 and 8.5 % in 2010.
Data source: IMF / Chart: PBN
While the output in the Euro area is expected to be -4,8 % in 2009 and still negative in 2010, the Chinese economy is recovering very fast, reaching as high values as in 2007.
How can we profit from this Chinese growth here in Central Europe?