China and India are two of the largest and fastest growing economies in the world, but what are the ...
China and India are two of the largest and fastest growing economies in the world, but what are the differences and how would you choose which is right for you? We talked with emerging markets specialists Stephen Philips, Chief Executive of the China-Britain Business Council, Ian Coleman, Partner and Head of Emerging Markets at PricewaterhouseCoopers UK, and Chris runckel President of runckel and Associates.
Chris runckel: There really is no one China, you have china thats along the Eastern sea board which now is a very, actually a more a more advanced developing area for doing business. It has very good infrastructure, road systems, very good communications system in the major cities. You have modern buildings, a lot of the accoutrements that any business would be looking for.
Then you have the western area of the country which tends to be much poorer, much less developed, infrastructure is starting to go in there. The government is making a push to install infrastructure through the western region and its coming up but really the cost of internal shipping inside China and some of the other costs that are added in a project still makes western China not as attractive are as it might be.
Stephen Philips: For most businesses theyre going to be focussing on the more urban areas, but those urban areas arent just Beijing, Shanghai and Guangzhou, there are many cities across China that have more than a million people which is unlike the UK clearly. CBBC itself has got offices in 11 cities across China, most of those cities most British people will not even have heard of. Chongqing in the west of China for instance, its an urban area, has got 30 million people, half the size of the UK and yes its probably somewhere that the vast majority of people have never heard of.
Chris runckel: For the west you have India which is a very, very good location for lower cost projects which have more labour content in them. Fairly good protection of intellectual property, some significant ...
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Added: 970 days ago
Views: 176
In this business tv show, join international business experts Ian Coleman, Partner, Head of emerging...
In this business tv show, join international business experts Ian Coleman, Partner, Head of emerging markets, PricewaterhouseCoopers UK, Tony Dickel, CEO, MRI China, and Chris runckel, President, runckel and Associates, as they talk about upcoming issues they see for businesses operating in emerging economies.
Ian Coleman: I think that what we have seen is a growing change to one of acceptance that it isn’t novel, its business as usual. A growing change towards the integration of emerging market managers into the managerial structures of multi international companies because the importance of doing business in those countries.
Tony Dickel: You’ve got the 1billion US dollars a week of foreign investment, you’ve got the 3000 companies a month, you’ve got the 10% economic growth, all an environment of an emerging population of only children, there isn’t a hope in hell that demographically China can create enough middle management and senior management over the next 20 years and so to support what’s going to be going on in China in the context of economic and corporate growth and the need for mid-senior level talent, not a chance, especially as many of the better Chinese people are also being exported overseas. So apart from that everything’s great. It’s going to be easy.
Chris runckel: One of the things we feel very passionate about really is the problem that we see in all of these developing countries with the failure to invest into the education system. All of these countries what you see is that investment in education is insufficient for the requirements that are being set by the growing economy and so you start developing problems where you cant get the quality of engineers, of accountants and of a wide range of people that you require for these new type of economies..
Ian Coleman: When we think of joint venturing and so on it’s often in the context of a developed market company joint venturing to enter an emerging market to serve them and provide goods and services there but ...
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Added: 971 days ago
Views: 237
In this business tv show, international business experts Stephen Philips, Chief Executive, China-Bri...
In this business tv show, international business experts Stephen Philips, Chief Executive, China-Britain Business Council, Ian Coleman, Partner, Head of emerging markets, PricewaterhouseCoopers UK, and Chris runckel, President, runckel and Associates, talk about looking beyond the balance between risk and reward, because there's a great deal more to choosing the best destination.
Ian Coleman: People often ask me what is the next hot destination and the next hot emerging market and I don’t think there’s a simple answer to that. Why? Largely because of something I said earlier about the need to balance risk and reward. It’s relatively easy to look at that on one dimension and say which of those high risk countries, where’s the highest physical risk, a lot of people look at that. It’s equally as easy to look at population demographics, look at expected inflation rates, to look at the economic growth potential of different companies but its bringing those two things together that I think is very important.
Stephen Phillips: Clearly a lot of early international investment in China went to the eastern coastal board with the ever keen eye on cost production. Some of that is moving to countries like Vietnam and other countries in Asia but some of that is also migrating in china to the Hinterland to the west of China or to the North east of China so it’s a much more complicated dynamic than just investments having gone into China and then moving into further countries and there continues to be a great deal of new investment going into China as well but many businesses obviously have to look at the bottom line and they will go to places, a) where they can get the lowest cost production and b) where they can find the right skills.
Chris runckel: Right now Vietnam is one of the lowest cost areas out there but that cost will erode over time and then I see India probably even in the future Bangladesh coming up for locations for low cost factories and Vietnam just like china will have to start making ...
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Added: 971 days ago
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