søndag 18. april 2021

The End Of Made In China? – Analysis

Democracies believed that China’s political moderation would follow its economic liberalization. But contrary to political leaders and CEO expectations, China joined the liberal order for its own gains, seeking to displace the business advantages of democratic nations. The Made in China 2025 plan is being implemented through transfer of technology, IPR theft, and buying up strategic assets and hi-tech companies in Europe and beyond.

Since 1979, foreign companies have opened production lines on China’s coastline. This led to unprecedented Chinese economic growth, but the growth seems to be coming to a halt. Foreign companies are increasingly facing several difficulties leading to their exit from China. The cost advantages of investing in China are decreasing due to concerns like transfer of technology, IPR thefts, quality control, financial frauds, breach of contract and management and logistics overheads.