China has
worked hard to remove its “we-copy-everybody” image and is now on the forefront
of innovation. Over the period of decades, the country has been successful in
powering its economic growth and using its billion-plus population to its
advantage.
Here are 10 reasons why China is so successful:
1. Authoritarian
Government
The Chinese government has remained committed to focusing
on economic growth, and has quickly and effectively implemented good policy
decisions. Beginning from the time Deng Xiaoping set the tone, nothing has
disrupted the flow, including changes in leadership, ideology, and community
politics.
2. High Rate of Savings
Another reason why China has been successful is the high
rate of its savings, which it recycles. The country concentrates the salary
paid to workers in four big state banks. This money is used by the leadership
to focus on key projects. In fact, almost 85% of China’s infrastructure has
been sustainably funded by this capital.
3. Investment in
Models and Showcasing
China believes in showcasing its strengths and presenting
itself as a model to visiting dignitaries. This helped funnel foreign direct
investment into the country and develop the local economy. Shenzhen and
Zhangjiagang were developed into amazing models so that the surrounding area
could be sold as an investment property to foreign investors. No doubt this
helped improve the image of China, making it as an attractive investment
country.
The airports at Beijing and Shanghai, Beijing’s Financial
Street, and Pudong Development Zone are a few examples of how China has
showcased itself to foreigners, with such success that people have been able to
take a decision about setting up a center there.
4. Consistent and
Thoughtful Marketing
China had consistently pushed its one big selling point,
which is its large market. Chinese leaders have billed the country’s 1.3
billion population as a place to conduct business with ripe possibilities. They
have organized delegations and hosted conferences and exhibitions, all to
persuade foreign investors that China is the place they must invest in because
the country is stable, has an open-door policy, and is committed to ushering in
reforms.
5. Creation of Zones
and Infrastructure for Businesses
China has successfully created several flexible
investment zones, free trade zones, high tech zones, and export processing
zones, along with tax incentives and proper infrastructure. They score over
other countries in factors like speedy approval of investment proposals and
building of solid infrastructure.
6. A
“business-above-all” Attitude
China has not allowed differences in ideology, culture,
political views or local sentiments to affect its business prospects. The
channels of export, investment and technology have always been given primary importance
over all other considerations.
7. Committed and
Passionate Diaspora
China has made committed overtures towards its
non-resident citizens who are economically positioned to invest heavily on the
country. As a result of this, the 60 million people of Chinese origin who live
outside contribute to the country’s economy in the form of investments and
remittances. Non-resident Chinese are respected and allowed to participate in
the socio-economic activities of the mainland. Southern China has been able to
flourish due to the efforts of these non-resident Chinese.
8. Strong
Manufacturing Base
There’s a reason why everything is “Made in China.” The
country has positioned itself as a manufacturing hub, in turn providing
employment to its people.
9. Ability to Respond
Quickly
Again, China has been able to make quick turns in
strategy and redirect its resources into computer science, biotechnological
engineering, law, economics, management, and higher education. The country’s
policies regarding studying abroad are flexible, permissive and supportive, and
incentivize strong graduates to return to China.
10. Placing Chinese
Interests Above All Else
The Chinese leadership has been set in promoting foreign
investment and business opportunities for China, without interference from any
quarter.
These and many more make China a Numero Uno destination
spot for business, investment and workforce.
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