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WORLD
WHOSE TECHNOLOGY IS IT?
Presented by:
Mayur Pahwa – 10/MBA/28
Meera Hans– 10/MBA/29
Saurabh Arora– 10/MBA/49
Summy Kataria– 10/MBA/55
WHAT IS CHINA DOING?
Beijing is silently implementing policies to enable China to
overtake the west and emerge as the globe’s technology
powerhouse.
These policies :
a) Limit investments by foreign companies.
b) Stipulate high local content
c) Force the transfer of technology from foreign cos. to their joint
ventures.
d) Policies are complex and ever changing.
Ensure China has the largest no. of patents and scientific papers
published.
WHY THE SHIFT?
China’s change in mindset is driven by economic disillusionment
with serving as the world’s factory for low value products as it is
by pragmatism.
China’s high tech cos. account for 85% exports , but that has less
than 10% Chinese content.
For ex- The Chinese Govt. owns the airlines. This gives the state a
great deal of influence over equipment purchases ,sales and
technology
II. The govt. has consolidated several manufacturers into a few
national champions , to generate economies of scale and
concentrate learning.
For eg. CSR and AVIC have resulted from the mergers of several
smaller , loss making enterprises.
III. Chinese officials have learned to tackle MNCs , often forcing
them to form joint ventures with its national champions 7
transfer the latest technology in exchange for business
opportunities.
WHY IT HAS TO BE DONE
NOW
Timing is very crucial for the people republic of China as still
Yuan is undervalued in comparison to other currencies, this
provide China with Export advantage.
China’s policies are very different then the policies of the west.
The tensions between china and west are growing.
For E.g. the west believes that the state should play a limited
role in the economy while China believes otherwise.
People in china believe that govt. is doing the right thing at the
right time and the foreign complaints are the de facto attacks on
t he country.
CHINA ECONOMIC
POLICIES
Beijing has less control over provincial governments which
give rebate to exporters and levy heavy taxes on MNCs.
Case of AIG:
This has allowed the US cos. to develop products that they used
to.
Google was asked to tame down , it did not comply ,and had to
leave.
The Final Word…