Recently, I read about quite some vital secrets of
the “China
Miracle”. The base here is how China is able to navigate her business
strategy amid geoeconomics. Today she is the global factory, a covetous
position that was once enjoyed by USA. Here we go dissecting these vital
secrets:
First and foremost is the intention of China to
remain Number 2 in geoeconomics field and not to covet for Number 1. Leave that
to the United States. China realizes the dictum “one who wears the crown bears the crown”. She does
not want to go up in scale at the same time China does not want to go down to
number 3 either.
Next item is the global output in terms manufacturing. At end of
2024 China maintained its position as the world's leading manufacturing nation
as her turnover exceeded USD 5.65 Trillion an increase of 5.8% over 2023. That said, China is not competing
with USA on the services sector leaving the latter to be the king in financial
and related services.
Third in the list is the talent pool. A conservative estimate shows the
talent pool in China to range 120 to 145 million employed or employable workers.
Vocational expertise apart, this pool is conversant with advanced tooling
techniques, materials management and technology. China educational system has shown
overarching bent towards STEM education.
Fourth aspect is the private-public sector cooperation in industrial
area. Whereas state owned enterprises are engaged in heavies such as coal &
steel production, Roads & highways, bridges & ports, private sector is
incentivised to engage in innovation, R&D, quantum technology and other
matters of scientific, industrial &
technological nature. This sector is vast and most diversified employing more
than 100 million people and sub-contracting part of the manufacture to small
& medium enterprises or self-employed individuals.
Fifth and final secret is everything that is happening
in China is choreographed by the
Central Planning Commission which overseas from the point of seed
capital to the final output ready at the gates of the factory for transporting
to domestic consumption or for exports. The tight-knit operation ensures that
supply line in China is never interrupted.
The bottom line in this scheme is to ensure that captains of industry in China understand the vitals goals of the country in terms of geoeconomics and do everything possible to maintain edge in the global geoeconomics power play.
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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