Disruptive technology, China main incubator and manufacturer

Look at the host of new technologies:  Most of these are incubated, patented and produced by none other than China. Artificial intelligence & machine learning, quantum computing, 5G connectivity now being morphed into 6G, automation & robotics, virtual & augmented reality, techno without humans in the loop are the buzz words in disruptive techy.

Moreover, China is galloping in every aspects of geoeconomics where e-commerce, BeiDou satellite positioning system and 3D printing carry the China badge proudly. Some of these have hybrid applications. For example, China's BeiDou satellite positioning system has overtaken the West in big stride to present high security threat. So is Cyber capability and enmeshing man with machine technology. Advances in electromagnetic system makes China the first power to incubate, develop and operate in real warfare situation. As my interest lies on business strategy in relation to geoeconomics let me speak about business applications only.

What is disruptive technology anyway? The best answer is found in Investopedia. “Disruptive technology is an innovation that significantly alters the way that consumers, industries, or businesses operate. A disruptive technology sweeps away the systems or habits it replaces because it has attributes that are recognizably superior.” (Here) Moreover Investopedia traces that “upstarts rather than established companies are the usual source of disruptive technologies”.  That fits China well because unlike the West, she had achieved top line status within the last four decades compared to the West taking more than two centuries.

What is the template in which China has taken this task forward? When Deng Xiaoping opened China to the outside world in 1979 he made it a conditional one: China provides cheap & abundant labour while west brings in capital investment and facilitates technology transfer. That did the trick. Chinese are fast learners. Initially they groomed well in the bought-in techno then allowed students to go abroad to prestigious universities to study all aspects of business and the technology required. China understood the value chain process in terms of technology, procurement, inward logistics, operations, outbound logistics using the army of Chinese in training, operations and thereafter scaling the heights in sales & marketing.

By the time students who went abroad graduated and returned to the motherland, they were employed to do further research and invent new forms of doing the old activity. The incubation process was a remarkable success. Newer and modern methods of producing exportable items were being constantly invented and put on trial. As a result a new animal was born. It is no longer a western based technology but indigenous ones that had all the ingredients of modern techy surpassing what is currently available say in USA & Germany. By now, capacity building has been successfully completed; then the Chinese Communist Party (CCP) intervened:

CPP dictum is that an end-product must be produced for local population, which is by now improving in living standards and demanding products with advanced features. From domestic market companies quickly graduated to the export market where these modern features are not available at all or are too expensive to buy.

This template was further tweaked to go from small quantity to large ones, copying & re-engineering to indigenous innovation. When these two brought satisfactory results, companies were urged to get the big deal not only for the consumer items but infra-structure such as telecom rail & road network especially high-speed rail and automated trains. However the centrepiece remained same: understanding what customer wants and how to satisfy it with least cost.

Needless to say, China tech companies have no worthy rivals in the west now!

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist

 

Aukus, setting fox amongst sheep

ASEAN members are a dedicated group of nations who wish to live with peace and harmony, similar to sheep in pastoral grazing. Enter Aukus deal with ominous name and style with a singular purpose of setting Australian fox amongst the docile sheep.  Result: sheep are running helter skelter. 

The west has been trying to split unity among the ASEAN countries as the latter vowed to be neutral in the all-consuming conflict between the west and China. One thing that brings horror to the west is iota of neutrality. George bush II expressed this forcefully “Are you with us or against us”. ASEAN remained nonplussed. Finding the weakling was paramount need for the west. Aukus, a tripartite security deal amongst Australia, United States and UK put paid to the neutrality of ASEAN in a single blow.

Response was so divergent among the flock of sheep anyway. Indonesia took the brunt on herself, warning that AUKUS destabilizes the entire south-east Asian region expressing disassociation with the gravitas of the deal, as ushering in peace & security in the region. Malaysia went step above as her Prime Minister stated boldly AUKUS deal functions as “catalyst for a nuclear arm race in Indo Pacific region. The underpinning realization is the elephant in the room: China. Seizing upon that, Malaysia said it would seek the views of China in this matter as well.

Philippines unwittingly welcomed this at the first sigh calling it a balancing between forces in the region (meaning the China US rivalry) and reversed her stance after Indonesia & Malaysia went bellicose. Duterte was quick enough to express his concern that it could trigger “a nuclear arm race”. He also wished to consult his Cabinet in order to come up with a clear position. (Here).

Singapore took contrary view. Welcoming the deal, Prime Minister Lee Hsien Loong is reported to have stated the AUKUS deal will “contribute constructively to the peace & stability of the region”. Incidentally Singapore is an associate member of the Five Eye Alliance of the west. What is more, Singapore by supporting AUKUS deal rubbished the South East Asian Nuclear Weapons Free Zone (SEANWFZ) agreed and implemented by all ASEAN members effective March 28, 1997.

So far Thailand and Vietnam the two other powers have not voiced any opinion. It can be presumed that they will go with the majority opinion as conveyed by Indonesia & Malaysia.

How Singapore was emboldened to break away from the rank: Let me give you the military expenditure of major ASEAN countries as percentage of GDP:

Indonesia 0.9

Malaysia   1.1

Philippines 1.0

Singapore 3.2

Thailand    1.5

Vietnam    2.3

Evidently, Singapore is conceited of her defence capability and punching above her weight. It will stretch your credulity if I say this: what happens if Indonesia decides to go nuclear to counter Oz. Being the largest country in ASEAN and closest to Australia, Indonesia cannot countenance a nuclear neighbour in her southern plank.

Whatever geoeconomics implications there are, Indonesia must like Pakistan be prepared to “Eat even grass to go nuclear”. She should go out pell-mell to get the mushroom button ready to defend her from the Australian fox!

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist

 

Australia ignored dossier of 14 grievances by China; now it is paying time

In a well-choreographed diplomatic drama, China leaked a dossier passed on to the government of Australia to selected newspapers in Canberra almost a year ago on and around November 18, 2020. Moments before that, Zhao Lijiang China foreign ministry spokesperson said China bears “no responsibility” for the collapse in bilateral ties between both countries.

He further implored by way of a comment that Australia must reflect seriously on the state of affairs of China-Australia relationship. While Oz sought to dismiss the dossier calling it in different nomenclature, such as threats, and diktats the fact remained that there is something serious and it is time to atone for the sins committed by Oz towards China. Analysts across the spectrum described it as geopolitical or geostrategic move.

For China what matters most is geoeconomics. This fact was lost on the Australian authorities. As a tip of the iceberg Oz should have forecast that in time China would drop Oz from its favoured nation treatment and any move that aggravates the present perilous situation would land Australia at the crosshairs of China for sure, and Oz might end up as an adversary to the risen China.

The entire list of the dossier of 14 grievances is available in the public domain and my preference is the one published in the voltairenet.org (Here)

Here are the topics that hover around geoeconomics amongst the 14 grievances listed by China:

a) Foreign investment decisions, with acquisitions blocked on opaque national security grounds in contravention of China Australia Free Trade Agreement  since 2018, more than 10 Chinese investment projects have been rejected by Australia citing ambiguous and unfounded "national security concerns" and putting restrictions in areas like infrastructure, agriculture and animal husbandry.

b) The decision banning Huawei Technologies and ZTE from the 5G network, over unfounded national security concerns, doing the bidding of the US by lobbying other countries.

c) Foreign interference legislation, viewed as targeting China and in the absence of any evidence.

d) Politicization and stigmatization of the normal exchanges and cooperation between China and Australia and creating barriers and imposing restrictions, including the revoke of visas for Chines scholars.

e)  The latest legislation to scrutinize agreements with a foreign government targeting towards China and aiming to torpedo the Victorian Participation in Bridge and Railway.

f) The early dawn search and reckless seizure of Chines journalist’s homes and properties without any charges and giving any explanations. 

g) Outrageous condemnation of the governing party of China by MPs and racist attacks against Chinese or Asian people.

h) An unfriendly or antagonistic report on China by media, poisoning the atmosphere of bilateral relations. 

Aftermath of what happened is now history. Australia is just pushed aside from China template as major geoeconomics partner in the Southern Pacific!

 

Cheers!

 

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist