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Manufacturing in China

China has extensive and massive manufacturing unit which has experienced soaring boom in the last decade. There has been mild indication of a little dip in its rate of growth in April, 2011. The Chinese PMI reading is what determines the growth in manufacturing sector which is diversified. Consistently the PMI of China has remained consistent throughout the manufacturing activity. This seems to be the result of inflationary pressures. The purchasing index has been the indicator of the tightening of the economic parameters by the Chinese government. This is the prime indicator of economic activity in China. The reign of the Chinese government to tighten the monetary policy is an indirect reign on the inflation and is direct response to the inflationary pressures. It is important for an international company to understand the significance of integrating the value system of the economy and the cultural aspect of the country to achieve and amalgamate business growth within China with her unique communications.

The international company must realize that the value system of free market economy like US is different from the socialist economy like China. The business atmosphere in China is very different from other parts of the world; the endeavor is very harmoniously merged with Chinese government and other social institutions. To have successful international business in manufacturing in China would necessitate an understanding of the underlying theory of success in the business tactic. As a foreign firm seeking a share in the Chinese enterprise Nokia understands that it is important to merge the interest of the company with a sound understanding of how the Chinese entrepreneurs survive and thrive in their own economy. This understanding is critical for success and growth in the Chinese market. . According to Mcgregor,  "Long term mentoring is the single most effective technique for foreign companies to build an effective Chinese executive corps."(McGreagor)  The core essence of their value system in harmony with the Chinese value system can be summarized in 3 C's.

 Rugman, A.M and Collinson, S.() have very comprehensively covered the Chinese economy as being as small as that of Sudan in 1950's, and have evolved to a significant level in the past 30 years since liberalization. It is at present the second largest economy in terms of PPP(purchasing power parity). The economic and the political change which has evolved in the Chinese economic and political system has merged with the "turbulent interdependencies with other parts of the globe" (Rugman and Collinson). The quick economic transformations have led to expansion in their domestic market which has directly resulted in increasing disparity in wealth between rich and poor. The income which is distributed across 1.3 billion people has experienced enormous change in "scale, scope and speed" (Rugman and Collinson). These changes are unparalleled in terms of their impact on the commercial as well as the competitive opportunities and threats which has been every managers nightmare in this global competitive world. The ascent of Chinese economic change has been representation of dynamic growth, adaptability and targeted expansion in domestic market as well as international business. The survival of any firm in china has to be measured in terms of acknowledgement of the strengths and the weaknesses which complement their competitive conflicts in accordance with their repositioning.

Trend in Chinese Manufacturing: A Literature Review: An analysis of the manufacturing progress made by China in the years to come has been phenomenal in its assessment of the relationship between growth and global convergence. Kiely (2008), has offered a "critical assessment which examines the relationship between the claimed fall in global poverty and the rise of China in recent years."(Kiely, 2008). The argument is "pro-globalization" with closer link to causal link between neo-liberal policies which are responsible for falling rate of poverty."(Kiely, 2008).   

Conclusion: The study is aimed at understanding the dynamic nature of Chinese economy since liberalization and integration of international business. In this regard the role of the government plays a significant function in identifying the characteristic traits of china's domestic market and the big corporations. The implementation and success on the global scale would require examination of the opportunities and constraints which the Western firms have been facing in terms of their success in the Chinese market penetration. It takes certain level of cultural and economic understanding which is supported by the political forces to merge with the system and succeed in the scenario. The most crucial need is to identify and analyze the degree to which the Chinese firms are on road to globalization. The internationalization of their forces depends upon their selling and relative competitive advantage which controls the selling and the investing.

The reflection has to be made to evaluate the implications which the rise of China as an economic giant has had in terms of its positioning related to academic analysis and understanding related to the company's performance and business procedure. The international business would require international perspective which understands and measures its strategies in the light of the regulatory forces and standards which are an inherent part of ach9nes economy. The investment criteria have to be accepted in accordance with the government forces. There can be seen optimistic assertions which support international business and globalization. There has been marked reduction in inequality with the integration of globalization- friendly policies which have emerged out of the need for "world of unequal competition."(Kiely,2008). " the domestic social change may have led to the development of new classes who have little concern for upgrading so long as there is continued access to lucrative international circuits of capital"(Kiely, 2008). The development of China has to be analyzed in terms of its restructuring in the direction of global economic capitalism. An understanding of this process ascertains the role of Chin's manufacturing in various diverse field s to increasing investment opportunities and agreement subcontracting with foreign nations. There has been a major shift in the level of up gradation which is supported by domestic linkages giving it a first position in the Asian countries to be at par with industrialized nations.

Structuring IS Offshoring Projects Economic Geography
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