Inglese - Cina e india

Comparing the economies of China and India

Both countries are mentioned and compared. There is a description of China’s planned economy. India’s strengths, advantages, and weaknesses are outlined. India and China are now two giant economic countries. This growth began in the early 1980s in China, with liberalization and opening markets to foreign products, services, and investments. All this in India began in 1990 (China was growing faster). China has an economy which is twice the size of India’s. It has recently passed the UK to become the fourth largest economy.

China’s planned economy has a heavy reliance on foreign firms; in fact, it is second in terms of advanced technology exports. As local incomes rise, China has the largest market for everything, in particular for cell phones, televisions, etc. While China is dominated by manufacturing, India has just 16% in manufacturing.

India's strengths and challenges

Its strengths are in services and software. Its advantages include more efficient capital markets, a well-structured legal system, a good economic culture, and the English language. Its weaknesses are infrastructure, difficult labor laws, and restrictive government bureaucracy.

Strategy of modern Chinese technology companies

The strategy of modern Chinese technology companies includes low-price products and reliance on cheap labor, as well as high-price product segments and expertise in design and product development. This scale of changes may be unprecedented, but the processes of change are not. In fact, the process of change is similar to previous ones, but now there is a striking element of difference: more recent industries like Samsung have made this change in less time, just in 20 years.

Competition between India, China, and European firms

There are some questions about the competition between India, China, and European firms. If European industries do not reduce production costs or increase revenue by selling products in the domestic markets, China and India will dominate the world market!