If you think China stands for cheap electronic knock-offs, think again! China is fast emerging as a global economic powerhouse. The most populous country has come a long way from being an extremely close economy to a one that the world now takes notice of.
In what could be a further testimony to China’s growing economic clout, IMF chief Christine Lagarde has hinted at placing a Chinese executive at a senior position at IMG. Speculations are that,
Min Zhu, a Chinese national who was a special advisor to Dominique Strauss-Kahn, is expected to fill a new deputy managing director post to be created by Lagarde
It is noteworthy that Christine Lagarde went all out in seeking support for her candidature for the post of IMF chief. She even took to social networking for increasing visibility and engagement during the election process. One critical part of her promotion campaign was garnering the support of emerging economies.
Where India did not lend complete support, she personally visited other countries including China to seek support. Further, she also suggested at improving participation of emerging countries in IMF as a testament to the growing economic power of these nations. A few days into the job and she seems to be acting on her promises.
Representation in a decision making role at IMF will be a feather in the cap for China. Despite a slight loss of investor interest in emerging economies, investor community continues to stay bullish on China.
China’s dominance in the manufacturing segment is no secret. China has already established itself as an industrial hub in many segments. It is even the largest automobile (light vehicles) market outperforming the US itself. However, China has kept pace with the changing market dynamics and has expanded into other growth area. For instance, China has been making giant strides in the outsourcing segment and the English speaking population has been constantly increasing in China.
Given numerous similarities between India and China, comparisons are always made between the two countries especially on economic prosperity and attractiveness as a business destination. India sure has its advantages but if the events since the last 3-4 years are to go by, China seems to winning the race hands on. The dragon is roaring and soaring and the world is taking notice!!
What are your thoughts on increasing clout of China as a nation? Could it have negative impact on India or would China’s prosperity result in positives for India and other emerging countries?