10 myths about China

1. The Chinese economy grew at the expense of cheap labor, cheap labor, of course, played an important role in Chinese economic miracle. But first, this does not mean that China is deliberately exploited the labor of their workers kopek. Cheap human resources - natural wealth of any agricultural country, which follows the path of intensification of production and urban development. For nearly three decades, the Chinese village annually pours into the market 9.10 million farmers, who are workers and migrant workers. But now the very cheap labor force slows modernization of production in the industrialized regions of China. Increase in workers' incomes has become imperative, even though that about 150 million Chinese peasants have migrated into the city. Second, its economic growth, China is obliged to a whole range of factors, especially investment in infrastructure and manufacturing, as well as exports. Play an important role in China's growing consumption, the development of services, the liberalization of financial markets and other areas are constantly opening up new opportunities for development and investment. The Chinese economy has attracted investors in different areas, not just in cheap manufacturing. 2. The low price of Chinese goods due to low quality itself is a low cost product can be achieved through a variety of factors: cheap labor, the zonal concentration of production and resources, logistics development, tax incentives, large-scale production, copying technologies. Intense competition among manufacturers is constantly pushing them to seek new opportunities for cost optimization. Save on quality - although common, but not the only way. China produces a lot of variety of goods from shoelaces to the spacecraft. Among this diversity is the most goods at different prices and of different quality. Buyers (particularly foreign importers) will always have a choice between a huge number of manufacturers. Therefore, the predominance of the market of a country's low-quality goods rather not say about the Chinese manufacturing and the quality of the market. For example, a very cheap Chinese textiles, which the Russian market consumed en masse in the early 90s of last century, was eventually redirected to Africa, and Russia began to demand higher quality products. The same can be said of the Chinese counterfeiting: its presence in the market due to public demand and the weakness of the customs control. Do not forget that most of the world's largest brands based in China manufacture, where are kept the highest quality standards. In addition, the continued growth of living standards of Chinese, on the one hand, increases the cost of production, and on the other - leads to a drop in demand for goods of poor quality. All this in the coming years will lead to the production that focused on the lowest-price segment, will leave China or rebuilt. 3. The Chinese are very industrious and content with a small number of local residents are forced to work overtime and save permanently to support their families and to provide old age: the massive social security is just beginning to take root in China. However, the industry can not be considered a national trait. Sybaritism and idleness is traditionally considered signs of wealth, so the Chinese will not fail to show it around at the chance. In addition, the Chinese youth, who grew up in the country, showing double-digit grow-ta for 20-30 years, refers to life differently than they are accustomed to privations parents. In Chinese cities, high staff turnover. Clerks and managers do not stay small for the place and rarely work in the same company for over two years. Even more difficult things in the industrialized regions of the country, where the constant need of manpower. There's even a village youth refuses to lower-paying jobs with no social benefits. Hour-that, having fulfilled the season, the workers en masse move to another factory, where conditions are slightly better. This leads to the suspension and even the curtailment of production. 4. Chinese companies want to buy all the resources in the world need to provide resources fast-growing economy is a priority of China's national security, however, like any other power. In the mid-term planning of their commodity imports country implements the so-called "three-thirds of the strategy." It is assumed that one third of imported resources, China will buy in world markets, another third will receive long-term supply agreement, and the remaining third will provide foreign enterprises with Chinese capital. Today the share of the last channel is very modest, according to various estimates - from 3 to 6%. Therefore, China's desire to purchase the assets of mining companies around the world (especially in Africa and Latin America) said that the country has sufficient number of them, commensurate with needs. China is often accused that he did not just consume many resources, but does so inefficiently and heavily polluting the environment. So it was 10 years ago. and it remains a serious problem. But today, China pays great attention to energy conservation, alternative energy and everything that is aimed at optimizing resource use and protection of the environment. 5. The Chinese are hypocritical and often deceiving. The contract for them - an empty word for Chinese in the heart of any business are the personal relationship between the parties. Bad relationship or lack of them any good little. Not always, but often the same, the Chinese do not consider themselves bound by moral obligations to strangers, especially foreigners. At the same time strong and constantly supported by the relationship between part-nerami are the key to lasting cooperation and even friendship. Deceive each other - is to lose face, but it's much worse for the Chinese losing money. Of particular relevance to the Chinese and the contract. For Europeans - is the foundation on which to build and tested the relationship between the parties. For the Chinese part-nerskie relationships are the foundation on which is, and then executed the contract. For a European contract after signing it becomes true in a higher court, a document binding. To change the Chinese economic (and sometimes personal) situation is a sufficient basis for a psychological failure (or suspension) of the contract. The contract should always match the actual situation and the relations between the parties. That's why in China you can often hear the phrase that the real negotiations begin after the conclusion of the transaction. 6. The Chinese are only able to copy someone else and steal technology, China is trying to use every chance to learn new technologies. At a time when Western companies are reluctant to share their know-how, the Chinese are not averse, and other features. There is a problem, but it does not mean that the Chinese do not create anything of its own. The government is investing huge sums in science (in 2006-2010 almost $ 100 billion) and R & D in general (about 1.85% of GDP in 2011). The country has begun a large-scale multi-dimensional modernization, supported by the education reform. And although modern China has not invented new powder or paper, it is clearly accumulating a critical mass of serious scientific and technological breakthroughs. Intellectual property - a relatively new concept for China. Although in recent years, the authorities have become much more active combat abuses in this area, many Chinese still sincerely believe that in the production and purchase of goods under a false name there is nothing to be ashamed of. Meanwhile, China has good mechanisms for protecting intellectual property, with certain exceptions relating to copyright in both print and audiovisual products. This situation, although improved from year to year, it is still quite complicated. In other Chinese laws and their implementation comply with international standards. To achieve the protection of intellectual property in China, you need to register there. Then you can take advantage of a judicial or administrative remedies that allow you to stop the infringing activity and get adequate compensation. 7. In China, capitalism thrives same myth as its opposite: "In China, communism thrives." In fact, China has created a unique hybrid model in which there is a place and the market, and government regulation. Chinese state-owned corporation controlled key sectors of the economy, but over 70% of GDP in the private sector. Competition between state companies nearly as free as the competition between private businesses. But between the government and the private sector is almost no competition. China refused to economic planning, so the pricing is on the market laws. The Chinese Communist Party continues to fully control the army, as well as all the key positions in government, state corporations, media, universities, law enforcement agencies. At the same time China is not a "communist dictatorship". All major decisions are taken in the country is not the sole president, and collectively the members of the Politburo, sometimes with the involvement of other stakeholders. 8. In China, there is no brand in China a lot of brands, but not all of them are global (international), and therefore often not well known to foreigners. There are several reasons. First, Chinese companies are just beginning to enter overseas markets. Most of them are faced with many problems associated with fierce competition, inability to act in unfamiliar conditions, the weakness of consulting and legal support. At the same time constant distribution tuschy Chinese market offers local brands a lot of opportunities for development. So why try to be international business in China if you can earn more? Second, until recently, competition among Chinese companies evolved around the price, not quality of goods produced. So many brands, rather than to invest in R & D and development of the name, tried to reduce production costs, lower product prices. But today the situation is changing dramatically. With the rising standard of living provided by the Chinese refuse certain domestic products, preferring to pay a premium price for the 2.3 "western quality". Chinese brands to compete under the new rules. Many of them are trying as soon as possible to become international, inter alia, to return to China and sold as new. 9. Manipulation of the yuan exchange rate has led to economic imbalances in the global scale, China pegged the yuan to the dollar in 1994 that later, during the Asian crisis, has helped stabilize the situation in the region. Then it noted the U.S. and the EU. In 2003-2004, growth in the wake of the U.S. trade deficit in trade with China (which has since all increases), the country was accused of deliberate undervaluation of the yuan to create a surplus at the expense of cheap exports. Now, not only in America but also in many other countries is widely believed that cheap Chinese goods depress domestic producers and that the revaluation of the yuan will correct this situation. In fact, undervalued yuan is largely a consequence of the financial policies of Western states themselves, which stimulated consumer lending and a surge of liquidity. In 2005, China began a gradual revaluation of the yuan: 3-year rate of the yuan has increased by 21%. In 2008, the revaluation stopped, but then again resumed. This is not under pressure from the West. Strengthening the yuan and even beneficial to China itself, which in recent years can not cope with the influx of hot money from abroad. But it is unlikely that the current economic model, a sharp revaluation of the yuan, and as a consequence, the rise in Chinese imports will somehow improve the situation in the global economy. First, it will hit the wallets of consumers, and then increase imports from countries such as Vietnam, India, the Philippines. 10. China - a backward country the same myth, like its opposite: "China - a superpower and will soon rule the world." China is very different. Large cities are developing very rapidly. Rising house prices and consumer goods strongly disturbs the local authorities. In large Chinese cities, prices are quite comparable with Moscow. Consumption of luxury goods is growing annually by 15-25% and the number of dollar millionaires has exceeded one million. The queue to buy expensive cars stretches from months to several years. At the same time in China, according to various estimates, between 50 and 100 million people live below the poverty line. China's GDP per capita is 7 times lower than in the United States.