India set to gain as China losing steam.

[IndianTiger]

India is NOT working hard. Government has no intention to reform labor laws. It will not cut down red tape and boost infrastructure and pursue an aggressive energy policy. If Indian economy crashes tomorrow, it will not be a surprise for me.

No, indian economy is not weak as Pakistan's

 

[Ajaxpaul]

no way. china will retain all high end products and equipment.

for the low end, it's not India either, such as making shoes, Vietnam is now the largest shoe maker in the world. for clothes, Bangladesh, Indonesia and India take the chunk. Toy is probably in the Philippines, Vietnam and Cambodia. China's scaling of industries benefit more to its neighbors in SE aisa, who are aligned with China in a FTA zone.

In the region, Sri Lanka,Bangladesh, and Pakistan(after WOT) will be the major beneficiaries of China's huge upgrade. India's relation with China is the roadblock for economic integration to the Econ-China sphere.

If you are taking the bolded part as a yard stick, sure it will be India that will benefit... No other country has the appetite to swallow Chinese products in the south asian region...China will make sure India is happy. Its a business relation not an emotional relation.

 

[IndianTiger]

no way. china will retain all high end products and equipment.

for the low end, it's not India either, such as making shoes, Vietnam is now the largest shoe maker in the world. for clothes, Bangladesh, Indonesia and India take the chunk. Toy is probably in the Philippines, Vietnam and Cambodia. China's scaling of industries benefit more to its neighbors in SE aisa, who are aligned with China in a FTA zone.

In the region, Sri Lanka,Bangladesh, and Pakistan(after WOT) will be the major beneficiaries of China's huge upgrade. India's relation with China is the roadblock for economic integration to the Econ-China sphere.

Bangladesh and Srilanka is doing well but India is doing EXCELLENT,

 

[PlanetWarrior]

Good for India. However, textiles haven't been important in China for a while. Even though we dominate in volume it only represents 6% of exports. Even if other countries produce textiles later on, we will still have the monopoly on the upstream, as 40% of chemical fibers are produced in China and China is the 2nd largest producer of textile process machinery (US is still #1). So even if textiles start moving from China to India, you'll still be forced to import our fabrics and our machines, and the profits will still flow to China.

As a matter of curiousity, my personal observation is that Chinese products here in Africa are starting to rise drastically in prices (electronic equipment, household appliances, toys etc). According to the Financial Times of August 2010, the Chinese government hiked up salaries drastically for workers and started cutting down on tax incentives for manufacturers. In addition to that many manufacturers who were given tax haven exemption periods are now starting to enter the period where the exemptions are falling away and they will fall into the 48% tax bracket of high income producers. The price comparison of popular Chinese products here are that they are starting to match up to the prices of the old European well marketed and tested brands such as Defy etc. Chinese products are not extensively marketed since the Chinese distributors and retailers relied on the price advantage as an advertising medium. Would you not agree that the Chinese government should step up its responsibility to manufacturers by granting further incentives either in the form of alternative tax reductions for exports or perhaps a full tax rebate for costs incurred on global marketing? I am not certain if such benefits do exist and am just presuming that they don't.

 

[kawaraj]

If you are taking the bolded part as a yard stick, sure it will be India that will benefit... No other country has the appetite to swallow Chinese products in the south asian region...China will make sure India is happy. Its a business relation not an emotional relation.

Not exactly, SE Aisa has a population close to 600 million.

Bangladesh, Pakistan and Sri Lanka has close to 300 million.

Population along cannot make a big market, Population with Money makes one.

 

[Ajaxpaul]

Not exactly, SE Aisa has a population close to 600 million.

Bangladesh, Pakistan and Sri Lanka has close to 300 million.

Population along cannot make a big market, Population with Money makes one.

Bangladesh, pakistan and sri lanka can definitely grow, grow and grow...but sorry India has started to run long back...the only thing that will save the three countries( if they want to compare with India and look good ) is their low population in comparison with India, but then in future India will show the world how to turn its huge population into its advantage.

 

[below_freezing]

As a matter of curiousity, my personal observation is that Chinese products here in Africa are starting to rise drastically in prices (electronic equipment, household appliances, toys etc). According to the Financial Times of August 2010, the Chinese government hiked up salaries drastically for workers and started cutting down on tax incentives for manufacturers. In addition to that many manufacturers who were given tax haven exemption periods are now starting to enter the period where the exemptions are falling away and they will fall into the 48% tax bracket of high income producers. The price comparison of popular Chinese products here are that they are starting to match up to the prices of the old European well marketed and tested brands such as Defy etc. Chinese products are not extensively marketed since the Chinese distributors and retailers relied on the price advantage as an advertising medium. Would you not agree that the Chinese government should step up its responsibility to manufacturers by granting further incentives either in the form of alternative tax reductions for exports or perhaps a full tax rebate for costs incurred on global marketing? I am not certain if such benefits do exist and am just presuming that they don't.

I think that there won't be many subsidies for export anymore. Some still remain though; a Lenovo computer is cheaper in the US than in China.

Prices are indeed rising in China, and elsewhere. Rising wages are actually not the biggest contributor, from an interview with textile manufacturers I posted in ChineseDefence. The biggest problem given by bosses was #1 rising cost of inputs due to rising oil prices, and #2 loss of subsidies.

However, because Chinese products have already monopolized so many markets, it will be very difficult to remove them from this entrenched position.

Most importantly, in textiles, China already controls the entire supply chain while other countries don't.

 

[kawaraj]

As a matter of curiousity, my personal observation is that Chinese products here in Africa are starting to rise drastically in prices (electronic equipment, household appliances, toys etc). According to the Financial Times of August 2010, the Chinese government hiked up salaries drastically for workers and started cutting down on tax incentives for manufacturers. In addition to that many manufacturers who were given tax haven exemption periods are now starting to enter the period where the exemptions are falling away and they will fall into the 48% tax bracket of high income producers. The price comparison of popular Chinese products here are that they are starting to match up to the prices of the old European well marketed and tested brands such as Defy etc. Chinese products are not extensively marketed since the Chinese distributors and retailers relied on the price advantage as an advertising medium. Would you not agree that the Chinese government should step up its responsibility to manufacturers by granting further incentives either in the form of alternative tax reductions for exports or perhaps a full tax rebate for costs incurred on global marketing? I am not certain if such benefits do exist and am just presuming that they don't.

thanks, that's good analysis. here my guess is China's strength is not in marketing, but in manufacture along. They a huge well planed, modernized distribution and allocation of all product parts, producing equipments of all kinds, this Efficiency and All-round makes other nation is far cry to close the gap with it, even the US, if want to return to a manufacture power house, it may take more than 10 years to form one.

So my point is, other nations need find other ways to utilize its competitive advantage. For India, it's especially a big strategic one needed to be discussed. Indian's software industry is a good start, but the US won't let you steal more of their jobs. Rescale software industry in more of a tough problem to India than starting to manufacture.

 

[jdme]

No, indian economy is not weak as Pakistan's

Stop trolling...

---------- Post added at 06:02 AM ---------- Previous post was at 06:01 AM ----------

As a matter of curiousity, my personal observation is that Chinese products here in Africa are starting to rise drastically in prices (electronic equipment, household appliances, toys etc). According to the Financial Times of August 2010, the Chinese government hiked up salaries drastically for workers and started cutting down on tax incentives for manufacturers. In addition to that many manufacturers who were given tax haven exemption periods are now starting to enter the period where the exemptions are falling away and they will fall into the 48% tax bracket of high income producers. The price comparison of popular Chinese products here are that they are starting to match up to the prices of the old European well marketed and tested brands such as Defy etc. Chinese products are not extensively marketed since the Chinese distributors and retailers relied on the price advantage as an advertising medium. Would you not agree that the Chinese government should step up its responsibility to manufacturers by granting further incentives either in the form of alternative tax reductions for exports or perhaps a full tax rebate for costs incurred on global marketing? I am not certain if such benefits do exist and am just presuming that they don't.

I guess it is natural progression of things...

---------- Post added at 06:03 AM ---------- Previous post was at 06:02 AM ----------

Not exactly, SE Aisa has a population close to 600 million.

Bangladesh, Pakistan and Sri Lanka has close to 300 million.

Population along cannot make a big market, Population with Money makes one.

So how exactly this works in favor of BD, SL and Pakistan?

 

[PlanetWarrior]

@ below freezing and kawaraj

Thanks. You both confirmed what I was doubtful about, namely the cut back in subsidies by the Chinese government and the lack of subsidies for and therefore the absence of aggresive global marketing by Chinese manufacturers.

My concern is that a product is usually marketable by either aggresive advertising or by price attraction. Chinese products are relatively non-advertised items. By comparision even the Indians aggresively market their products. I believe that a huge advertising rebate is granted to Indian manufacturers by that government. Chinese products in the past being mass produced with huge government incentives and subsidies were price advertised. Now that the global oil prices are skyrocketing and the Chinese government is starting to take in their share from manufacturers, price attraction of the products will fall away. To repeat my earlier suggestion, perhaps the Chinese government should bite the bullet a while longer and grant tax incentives to manufacturers for global advertising or else the life of the average exporter in China will take a huge financial dip.

 

[Anonymous user]

@ below freezing and kawaraj

Thanks. You both confirmed what I was doubtful about, namely the cut back in subsidies by the Chinese government and the lack of subsidies for and therefore the absence of aggresive global marketing by Chinese manufacturers.

My concern is that a product is usually marketable by either aggresive advertising or by price attraction. Chinese products are relatively non-advertised items. By comparision even the Indians aggresively market their products. I believe that a huge advertising rebate is granted to Indian manufacturers by that government. Chinese products in the past being mass produced with huge government incentives and subsidies were price advertised. Now that the global oil prices are skyrocketing and the Chinese government is starting to take in their share from manufacturers, price attraction of the products will fall away. To repeat my earlier suggestion, perhaps the Chinese government should bite the bullet a while longer and grant tax incentives to manufacturers for global advertising or else the life of the average exporter in China will take a huge financial dip.

Its hard to fathom the the motive of the government when they decided to subsidize manufacturing. I suspect it could be in the early days the government wanted to get the supply chain for manufacturing established in the country and subsidized the prices to encourage foreign firms to move their base to China. Now this is more or less complete the subsidies have served their purpose.

For example price of Rare Earth is subsidized in China at a very low price compared to the export price, this is mainly because the government is trying to attract high tech companies to manufacture in China and thus passing off the technology know how to local firms etc.

 

[below_freezing]

@ below freezing and kawaraj

Thanks. You both confirmed what I was doubtful about, namely the cut back in subsidies by the Chinese government and the lack of subsidies for and therefore the absence of aggresive global marketing by Chinese manufacturers.

My concern is that a product is usually marketable by either aggresive advertising or by price attraction. Chinese products are relatively non-advertised items. By comparision even the Indians aggresively market their products. I believe that a huge advertising rebate is granted to Indian manufacturers by that government. Chinese products in the past being mass produced with huge government incentives and subsidies were price advertised. Now that the global oil prices are skyrocketing and the Chinese government is starting to take in their share from manufacturers, price attraction of the products will fall away. To repeat my earlier suggestion, perhaps the Chinese government should bite the bullet a while longer and grant tax incentives to manufacturers for global advertising or else the life of the average exporter in China will take a huge financial dip.

But if there's no substitute, or the substitute is still out of price range, consumers will still grudgingly buy.

In Africa, what mostly sells to the average person is the little no name brands that can't afford to advertise. In China, the larger companies like Li Ning and Yingli Solar do non-stop advertisement. I even see ads on TV of a girl playing in a flower field, then the smokestack and fogged out sun logo of SINOPEC comes up

LiNing: Shaq | Ads of the World

 

[HZR2011]

Stop comparing China n India...they both are different.............