|  To
do that, business leaders and senior executives
need an accurate and rational update on
the happenings on the ground in China. However,
it has been difficult to get a handle on
developments in China, it is opaque to most
foreigners in part due to the complications
arising from its unique culture and history,
and another due to the fact that a fast
changing society generates uncertainties
and is therefore inherently unpredictable.
China is too vast and too complicated, it
can not be easily understood from the western
journalists’ lens or from the official reporting
from the Chinese media or government information
bureaus.
Many people familiar with China offer two
views on China; one is a strong enthusiasm
where one is inspired by the enormous possibilities
of an ancient culture in renaissance, and
many embrace China on the rise as the greatest
opportunity of the century. The other is
a deep frustration and resentment due to
the difficulties of moving their relationships
forward with China. Much of these anxiety,
doubt and even anger are reflected by the
headlines often splashed across reputable
global newspapers:“ China is not racing
ahead, just catching up”, “Braced
for China’s boom to end”, “The
scale of China’s environmental problems
defies an optimistic outlook, it remains
one of the most important and daunting challenges
facing the world today” and “Will
China call the tune in your industry?”
In spite of this, there is a strange consensus
among business and corporate executives
that China will
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continue with high growth
for several decades ahead and that we ignore
China at our own peril.
The reason for the anxiety on China are
twofold, first the sheer scale of the country
and its dizzying pace of change and second,
China is developing formidable research
and development capabilities that is making
it competitive with the rest of the world
as a business location.
The Rise of China is changing the matrix
of business leadership and power. For example,
carried within those attractive and cheap
Chinese exports is deflation. When China
imports, it exports inflation, shown clearly
in the commodities and material prices most
recently. With its vast foreign reserve
surplus, movement in China’s holding of
US Treasury bills is keenly watched by world
financial markets. China is influencing
foreign policies through its rising economic
clout, an illustration is the formation
of the 10+1 Free Trade Area with ASEAN,
where the rise of China is beginning to
influence foreign relation behavior. In
Malaysia, for example, China has replaced
the US as the No. 1 trading partner.
There is growing consensus that as the world
enters the 21st century, the rise of China
will be the most important single event
that will shape and change the structure
of the global economy forever for future
generations. This change is unprecedented,
both in terms of speed and in magnitude,
the impact of these changes are already
radiating far and wide, radically changing
the political, economic and social order.
The only certainty about China is the uncertainty
about the outcome of its development, hence
the need to stay informed and the need to
prepare for it. |
