Zhongguancun located in the Haidan District is characterized by 41 Fortune 500 companies.
Forewords
The People’s Republic of China as it is known today is one of the key players in industrial activities in the world today for several reasons. The nation depicted great industrial advancement and civilization between the 7th and 14th century AD and of course there is a noticeable industrial advancement in the People’s Republic of China in the twenty first century. The progress of this nation can be understood on examining its history and dynasty.
A Synopsis on Chinese History
Philosophy and Technology in Ancient China
To understand the philosophy for technology in ancient China it is necessary to have some appreciation of the basis of Chinese culture. The China has seasonal and climate change, the land has geographical differences, materials have various properties, and craftsmen have different types of creativity and skill. Gathering these four can produce good products.Geographically China is a land-based country maritime trades and sea-farming are nothing like as important to China as they were, for instance, Rome and Greece. Chinese life was based on agriculture. Even today almost 50 percent of the Chinese population remains engaged in farming. It is no wonder that agricultural techniques were originally the subject of Chinese philosophical reflection.Chinese ancient history described manufacturing processes and specifications related to carpenters, leather workers, dyers, metal smiths, potters and jewelers.The other major inventions made in China were gunpowder, compass, silk and many more.
The Qin Dynasty which existed in the 2nd century BC was the first empire in China recorded in the history (Qin is commonly pronounced Chin). The people of China calls their nation “Zhongguo” which stands for “Middle Kingdom”, however, due to the corruption that existed during the Qin dynasty, foreigners dubbed the nation China, which is used in referring to it today.China was the leading nation in terms of civilization and industrial activities in the world between the 7th and the 14th century AD. Its civilization was very dominant that it affected virtually every neighboring country such as Japan, Tibetan, Vietnam, and Korea... These countries began embracing Chinese ways of life such as their foods, technology, and philosophy.
The Chinese philosophy is much associated with a term “dao”. The dao is such sort of knowledge which is difficult to transfer to another person by spoken or written words but it can be explained as a kind of knowledge that is tacit knowledge. Zhuangzi contains many fascinating fables describing artisans who reveal fascinating artistry, such as butchers, wheelwrights, boatmen, arrow makers and, stone-masons. The story of butcher Ding cutting up an ox is a well-known example. Zhuangzi used butcher Ding’s explanation to King Hui of Wei about how could he cut up an ox so skillfully as to disclose the dao in daily life.
Philosophy and technology in modern China
With the Eastward spread of Western culture since late Ming Dynasty (1368–1644) and early Qing Dynasty (1644– 1911), Chinese reflection began to emerge on the relationship between eastern and western cultures. From the 1840s in the late Qing, this reflection began to pay special attention to science and that modern form of technics known as technology.However, that technology transfer by the simple importing of military technologies was insufficient for strengthening itself against the West.
Some versions of republic policy in 1912 have become the dominant position into the present. The adoption and application of Western science and technology has been a core principle promoting Chinese industrial development not just in regard to military technology but also with respect to the technologies of mining, steel making, textile manufacturing, and so on. During the nearly 100 years from the middle of the nineteenth century to the late twentieth century, a strong need to “resist eastern aggression” drove the Chinese attempt to develop a perspective on technology that would strengthen the nation and increase its wealth.
Although China had some political and economic challenges as a result of encroachment of Europeans into its territory, the menace caused by the invasion of Japan and the civil war between the Nationalists and the Communists, it recovered following the victory of the communists over the nationalists and consequently the establishment of the People’s Republic of China in 1949.
Mao paid special homage to the importance of technology as base for both the production and disseminating of knowledge. As Mao put it, “human knowledge is verified only when a person achieves anticipated results in the process of social practice (material production, class struggle or scientific experiment)”. In the first conference on science sponsored by the Communist Party of China (CPC), Mao further stated that “the natural sciences [in which he would have included technologies] are going to change the world under the guidance of social sciences”.
Independence and Mao leadership led to immense industrial development and economic growth in China. The amazing economic growth spanned between the years 1980 to about 2005 and was as high as 10 percent each year. Nonetheless, China has continued to increase economically and industry-wise following the technological boom as well as the industrious features of Chinese.
Top Ten Cities in China and Their Major Industrial Activities
Guangzhou
Guangzhou is one of the major cities in the People’s Republic of China. It is located in Southern China and it is the capital of Guangdong. Lots of industrial activities take place in this Chinese city. These industrial activities range from the manufacturing of fertilizers and other kinds of chemicals to the production of machinery and automobiles. Guangzhou is a very busy trading port as well as the main national transport centre in China. Industries like automobile assembly, biotechnology and heavy industry are encouraged in this zone. Lots of foreign investments have gone into these industries located in Guangzhou, thus the city has experienced outstanding industrial and economic increase in China. As of 2011, its GDP was $192.3 billion and its per capita was $15,109.
Shanghai
Shanghai is a major city in the eastern China. It is the most populous city and also one of the most economic-efficient cities in China. Various activities take place in Shanghai including commercial activities, and industrial activities. It is also a major trading port in the country. Global financial activities as well as transport activities take place in Shanghai. In 2011, Shanghai ranked 2011 fifth in the Global Financial Centres Index. Shanghai stock exchange is ranked among the best in the world in terms of trading volume and total capitalization of listed companies. It is one of the fastest developing cities in the world. Real estate, financial services and retailing are the three largest industrial activities in Shanghai. Numerous foreign investments have gone into Shanghai. The cities total GDP is US$318 billion and its per capita is US$13,471.
Beijing
Beijing is China’s political centre, although it still plays some economic roles in the country. After Shanghai, Beijing is the most industrialized and the most populous city in China. Beijing is also characterized by lots of financial institutions and technology hubs. A major technology hub in the city is Zhongguancun located in the Haidan District. 73.2 percent of the city’s GDP comes from tertiary industry. The city is also characterized by 41 Fortune 500 companies. Up to 100 largest companies in China are located in this city. Real estate and automobile industries are also among the industries driving economic growth in this city. Agriculture is also an important part of Beijing’s economy.
Shantou
Shantou is located in the Guangdong Province. Manufacturing activities constitute a large part of its economy. Products produced in this city ranges from toys and plastics to garments and lithography. Shantou is also very important in China for its telecommunication ports. International submarine communication cables such as South-East Asia Japan Cable System, APCN 2, China-US Cable Network and SMW3 land in this city. Other major economic activities in Shantou include Media, Tourism, transportation, health and so forth. It is also a home of tea, most remarkable for its wonderful tea products. Various foreign investments take place in this city as a result of its important telecommunication roles in China.
Shenzhen
Shenzhen and its neighbouring area are Special Economic Zones in China. They were made Special Economic Zones in 1980, the first of the kind, and therefore enjoyed lower taxes. On making the city a Special Economic Zone, its development became rapid. Thus, today, lots of industrial activities take place in Shenzhen. These activities include production of clothes, healthcare, arts and crafts and so forth. The city is ranked among the top mainland Chinese cities in terms of comprehensive economic power. It has one of the greatest industrial outputs in China. Most manufacturing activities in China take place in this city. Many high tech companies in China are in this city. Examples of these companies include Hasee, BYD, ZTE BYD, Huawei, Skyworth, Konka, JXD and so forth.
Tianjin
Tianjin is a very important city in China. It is also known as Tientsin and is most famous for its industrial activities and nearness to one of the main Chinese port. Numerous industries exist in Tianjin, among which are electronics, textile, food processing, chemical production, automobile and many more. This Chinese city maintains a steady and progressive economy irrespective of the global economic meltdown. The major industries in Tianjin are automobile, electronic information technology, pharmaceuticals, metallurgy, bio-tech and petrochemical industries. Foreign companies like Samsung, Toyota, Motorola and so forth operated in Tianjin.
Chengdu
Chengdu is a city in central China famous for its manufacturing, agricultural and industrial activities. Industries like precision instrument, electronic equipment, food processing and so forth operate in Chengdu. It is the China’s western centre of commerce, logistics, technology, science and finance. As of 2010 about 12 Fortune 500 companies operate in this city. It is a major investment ground in China as lots of foreign investments take place in the city. Up to 133 multinational enterprises have their branches in the city; examples of these enterprises include Microsoft, Motorola Ericsson, Cisco, Intel, Toyota, Sony and so forth.
Dongguan
Much of the electronics and communications equipment manufacturing in China take place in Dongguan. This Chinese city attracts untold numbers of foreign investments as it sets a favourable platform and climate for investments. Examples of international companies operating in this Chinese city include Coca-Cola, Nokia, Samsung Electronics, DuPnt, Maersk, and Nestle. Dongguan focuses on attracting technology based businesses and foreign investments in China. This has made it a major business and technological hub in the People’s Republic of China.
Hangzhou
Hangzhou, the capital of Zhejiang is an industrial zone where lots of manufacturing activities such as food processing, metal and machine tool production, chemical industries, silk and cotton textile industries and so forth take place. Hangzhou is also a major logistic centre in China. Many industries and foreign investments are encouraged to operate in Hangzhou. Such industries include medicine, electronic information, food processing, machinery manufacturing and so forth. Tourism is also a major industry in this city owing to its amazing picturesque and scenic and natural beauties as well as historic relics.
Wuhan
Wuhan is the capital city of Hubei and one of the major industrial regions of China. Varieties of manufacturing activities taking place in this Chinese city range from automobile and heavy machinery production to chemicals and glass manufacturing. The city attracts many foreign investments and that is one of the reasons why it has many industries. About 50 French companies have been attracted by this city. This accounts to over 30 percent of French investment in China as well as the biggest French investment in Chinese cities. Domestic trade in Wuhan is one of the most effective in China. Wuhan also has some of the most prosperous companies in China.
Investments Best Suited for Each City and Why?
Being a highly industrialized and the major trading port in China, investment into trade is most suitable for Guangzhou. This is because it has competitive advantage in this field over other Chinese cities and states. Many types of investments will thrive in Shanghai due to its industrial nature. Industries like financial firms, commercial centres and even real estate investments will be most suitable for this Chinese city.
Beijing is most notable for its financial institutions and technology hubs. Therefore, investments into the Chinese financial sector and technology fields as well as the production of motor vehicles are most suitable for the Chinese capital city and political centre.
The major manufacturing activity going on in Shantou relates to telecommunication. Thus, investing into telecommunication in this Chinese city will yield greater input than many other kinds of investment. Also, investment into tea production and supply will also thrive greatly in Shantou as it records the highest consumption of teas and tea products in China irrespective of the fact that Chinese are known for their teas.
Shenzhen is one of the hottest zones for investment in China. Its industrial output is quite unprecedented and various kinds of materials are produced in this city. You can invest into different kinds of commodities in this city and still make lots of returns. Investment into clothing, art and healthcare will produce much result in this city.
The steady economic growth of Tianjin irrespective of the global recession is quite astounding. Investment into sectors like pharmaceuticals, automobiles, electronic information technology and so forth will thrive greatly. Tianjin uniqueness and the reason why these investments will thrive are because of its nearness to the major Chinese port.
When you talk of investment into sectors like science, finance, technology, commerce and logistics, the city that should come to mind is Chengdu. One of the reasons is because it contains up to 133 multinational companies and therefore there is a favourable climate for investment. The city also contains up to 12 Fortune Global 500 companies.
Although other minor investments can thrive to a reasonable extent in Dongguan, if you want to hit it big in the city, you need to invest into electronics and communications equipment. The major reason for this is because the city creates a favourable atmosphere for this kind of investment so as to attract foreign investors. This has already attracted a slew of investors into it including Nokia, and Samsung Electronics.
To invest into logistics, one of the Chinese cities to reckon with is Hangzhou as it is a major logistic centre in the nation. You can as well invest into Tourism owing to its natural beauties and historic relics. Investment into other fields like medicine, and food processing can also thrive in the city.
Wuhan is the right Chinese city to go for when you want to invest into domestic trade. This is simply because its domestic trade is the most effective in China. It also creates a favourable climate for investment and therefore attracts many foreign investors, mostly from France.
Chinese Global Investments
China is one of the key players in the global industrialization. It has invested greatly in countries like the United States of America. It also has world class investments in its home country. A good example of Chinese world class investment is Baidu, the Chinese search engine. It is good to note that Baidu has replaced Google in China and owing to the fact that China has the greatest population in the world; this is indeed a favourable market for the search engine.
China is the US second largest investment partner and its investment has gone a long way in enhancing the US economy. Not only the United States but also China is making investments in other nations of the world. Since 2005, Chinese companies and government has invested up to $17 billion globally. Only in 2012, it invested $130 billion globally. The Australia is number one beneficiary of Chinese investment in the world since 2005 followed by the United States and then Iran, Canada, Brazil and so forth.
Shanghai International Children Baby Maternity Industry Expo, called CBME China introduced the 1st China Pavilion at ABC Kids Expo, held on 15-18th of October, 2013 in Las Vegas, United States. CBME China, in association with some Chinese baby items suppliers took part in this international event with their most up-to-date products.CBME China has actually developed a partnership with ABC Kids Expo in January 2013, intending to obtain goal in maternity, kids and children products of China in the USA to expand their businesses overseas. As part of this partnership, ABC Kids Expo has introduced USA Pavilion with 13 exhibitors showcasing 22 brands and came away with an extremely rewarding experience in CBME China 2013, which was held on 17-19th July 2012 in Shanghai.As a result of rapid growth of the maternity, kids, and baby products sector in China, several manufacturers and brands have begun to look for business opportunities beyond China. According to records released by ABC Kids Expo, engagement of Chine in exhibition is an excellent beginning in structure brand understanding and seeking distributors and companions in the USA market. This was the first time when China a Pavilion in a partner's event overseas.
According to a post made by Forbes in 2010, Chinese official foreign exchange reserve as of 2010 was close to $2.5 trillion, not to talk of the billions of dollars held by its fundamental institutions. Records show that over $70 billion have been invested by China in this sector between 2005 and 2009. Other investment areas include metals especially iron ores, finance and real estate. China invested over $60 billion on metals and over $30 billion on finances and real estate.
Chinese Investment in United States
By August 2011, China held US$ 1137 billion in Treasuries, while Japan, the 2nd largest owner, just had US$ 936.6 billion.2 Moreover, China's Outward Foreign Direct Investment (OFDI) to the US has likewise shot up in recent years. The complete investment flow in 2010 was of US$ 5.3 billion, bringing built up Chinese direct investment in the US to around US$ 11.6 billion.
Lenovo's effective acquisition of IBM's PC market in 2005 is one such example. By 2004, Lenovo was still the undisputed leader in the China computer market with a 27 % market share, and a gross frame of 13.3 %. According to the data from the China Petroleum and Chemical Industry Association, the 3 major oil titans have spent US$ 70 billion in tasks throughout fifty countries by the end of 2010.
In the year 2009, CIC began significant financial investments overseas in numerous various firms, with a clear concentration on energy and renewable resources companies. CIC made an investment via a wholly-owned subsidiary in the quantity of US$ 1.58 billion in AES Corporation, one of the globe's leading power companies, headquartered in the United States, which generate and distribute electricity power.
Another example is Zhejiang Geely Holding Group and Volvo Car Corporation. In August 2010, Geely Holding Group, one of the fastest-growing vehicle manufacturers in China, revealed that it had gained 100 percent of the acquisition of Volvo Car Corporation from Ford Motor Company.
Scenario of Milan Fashion World in Italy
Milan fashion world is controlled by Chinese industry's set up in Italy. According to reports by Tuscany branch of trade body CNA, which is representative of small and medium-sized firms, that almost 3,000 small-scale Italian firms are facing extraordinary turmoil in Prato's industrial district. The Italian companies are unable to compete on price and fashion. Chinese in Prato are going to hold High Street chains like Primark, Topshop and H&M in Europe with fashionable garments at low price. Chinese have already raised themselves at the top end of the fashion market.
Due to globalization, Italian businesses are being forced to restructure their market policy particularly in context of Chinese competitors. Almost 4,000 Chinese cloth factories are currently running in Prato. These new production subtleties are captivating the rest of the Italian business. 30% of Italy's textile imports from are from China in Prato industrial zone. As a matter of fact, Chinese have trampled the Italians at their own game by setting up their own businesses and driving down prices by importing much cheaper fabrics from China.
Chinese Business Style and Etiquette
It is good to note that Chinese has a different business style from the western world. Most of Chinese businesses involve referral services; that is to say, recommendation from another business associate. Chinese easily turn their business relationships into social relationship after a while; this is quite unlike the westerners. Also, unlike in the western world, Chinese adhere to the concept of seniority and titles. You need to know the senior and first recognize him. Respect is very important in the Chinese culture. You need to give appropriate respect as per the ranks and seniority when dealing with Chinese.
Pros and Cons of Making Investments into China
It is good to know that there are benefits and demerits of doing business in China or investing into the nation. Here are few of the pluses
• China offers varieties of products and also lower price point.
• Most Chinese speak English and therefore the issue of communication is solved.
A few of the cons involved in Investing into China
• Unprepared entrepreneurs can run into legal danger.
• There are lots of scams and dishonest people in Chinese market and therefore you should be very careful.
A Prediction of Chinese Economy in 2030
Reports drawn from several factors make it clear that Chinese economy will outgrow the US economy by 2030. This can be clearly ascertained owing to the fact that the world goes through a tectonic shift. This prediction was made by a US intelligence portrait of the world in 2030.
The report also stated that the tectonic shift will cause Asia to surpass economic and global power of a coalition of North America and Europe. This will be based on GDP, population size, technology investment and military spending. This is clearly assumable owing to the amazing growth of the Chinese economy at the present time.
Conclusion
This article has argued that arrogances toward technology in China manifest a more positive gratitude of technology as compared to other developed countries of the world. This can be seen even in traditional Chinese philosophy, where practical affairs receive more attention than in pre-modern Western philosophy. Since the beginnings of the New China (1949 to the present) first Marxist theory and then the Reform and Opening Up movement have revived and intensified the Chinese appreciation of technology.
Nevertheless, although in China dynasty today there are many inadvertent consequences of technological development which have not yet overwhelmed positive assessment due to the problem of environmental pollution which is beginning to stimulate some qualifications
Are you thinking of investing into China? Obviously, China presents a wonderful investment ground. The top industries in China are the energy industry (including Sinopec, China National Petroleum, State Grid Corporation and many more), finance industry (including Industrial and Commercial Bank of China, China Life Insurance and Bank of China); others include telecommunication industry, construction industry and so forth. The economic growth of China is clearly due to the industrious nature of its citizens as well as its vast resources.
