185
Index
Aaircraft industry, Chinese market, 3American Axle, 117Andersen, Jonathan, 135apparel market. See textile, apparel, and
footwear industriesAsia. See also China; Greater China; Hong
Kong; Japan; North Korea; Singapore; South Korea; Taiwan
China as economic hub, 7, 16, 162Chinese entrepreneurial class, 57digital piracy issues, 92financial crisis, 54impact of China’s rise, 113loss of foreign investment to China, 16trade balance with China, 9
Austin, Benjamin, 164automotive industry
Chinese market, 3, 114as factor in U.S. trade deficit, 14Japanese, 44, 46technology transfer, 3, 66U.S. component and subassembly imports,
3, 14, 17, 18up-market, 46
Bbalance of trade
Chinese, 7, 10, 147economic views, 9future U.S.-China scenarios, 169-173
Japan vs. China, 10, 15Japan vs. U.S., 14U.S. global trade deficit, 10U.S. vs. China, 7-14, 147
Bangladesh, 134, 170, 175Bardhan, Ashok D., 122, 141Blockbuster, 98Boam, Thomas, 84, 86, 93, 98, 99,
108-109, 118, 119Boeing, China as market, 3, 8bogus products, 89, 94-96bootlegging. See piracybranding, 17, 39, 117, 157-158. See also
commoditizationbribes, 88, 109Buckley, Peter, 69bureaucracy, historical role in China, 27-29Buy America debate, 21, 150, 158
CCarson, Joseph, 133CATIC (Chinese Aerotech), 72Central American Free Trade
Agreement, 106chaebols, 54Changhong Electric, 147, 149, 151cheap labor. See labor-intensive industriesCheung Kong Scholar Program, 76Chiang Kai-shek, 52China. See also Greater China
attitude toward technology, 59-72balance of trade, 9
Shenkar_Index 185 8/19/04 9:05:04 AM
186 The Chinese Century
as Communist nation, 16, 33-34, 64, 73corrupt government practices, 87-89democracy and, 38dependence on exports, 18as domestic market, 3, 20early reaction to Western power and
influence, 31-32economic future, 114-115economic growth, 2-7economic weaknesses, 2, 5educational system, 4, 73-74entrepreneurial activity, 49-50, 57failure to protect intellectual property
rights, 81-99foreign multinationals, 12-13future U.S.-China scenarios, 169-173global trade in goods and services, 7-14growing impact on world markets, 14,
101-106, 108-120, 161high-technology exports, 165history of inventions, 60-65home-grown companies, 114human resources, 4, 72-76, 134impact of history today, 30-31Imperial period, 26-31, 61-62, 73vs. India, 55-58vs. Japan, 47-48key historical milestones, 25major industries, 17-18modern aspirations, 35-40modern reform efforts, 34-35, 64-65notable inventions, 61population, 3relationship with North Korea, 38, 54significance of job shift, 134-135size issue, 47space project, 36students attending U.S. schools, 5, 75trade surplus with U.S., 7-14unique quality of economic ascent, 42-43WTO compliance, 167-169
China Aerospace, 72China Netcom, 114Choi, H., 76CIF (cost, insurance, and freight), 7Clode, Jack, 94clothing market. See textile, apparel, and
footwear industriescommoditization, 18. See also branding
Communism, China as Communist nation, 16, 33-34, 64, 73
Confucius and Confucianism, 26-27, 88Cong Cao, 75consumers
global product paths to market, 145-159reliance on Chinese imports, 20survey of interest in Chinese products,
153-157Council on U.S.-China Trade. See
U.S.-China Business Councilcounterfeiting
combining with piracy, 83defined, 83as global issue, 94-96motorcycle example, 83, 94as share of Chinese GDP, 86
Cox, Tench, 171crime, and international property rights,
84, 87Cultural Revolution, 33, 63, 73currencies
Chinese yuan, 13-14Japanese yen, 13-14realigning rates, 13-14U.S. dollar, 9, 13
Ddeficits, trade. See balance of tradedeflation, 162democracy
Chinese political leadership view, 38India as, 56Singapore as, 53Taiwan as, 52
Deng Xiaoping, 31, 35, 64developing nations
China’s impact on jobs, 139counterfeiting and piracy issues, 94-96loss of foreign investment to China,
15, 19political aspect of China trade, 175-176textile, apparel, and footwear
industries, 105digitized products, pirating, 91-93dollar, Hong Kong, 14dollar, U.S., 9, 13Dongfeng Motors, 162Dyer, Dave, 107
Shenkar_Index 186 8/19/04 9:05:04 AM
Index 187
Eeducational system
in China, 4, 73-74transforming, 73-76
electronics industry, China’s market outlook, 114
employment. See also job migrationreasons for job loss, 125-126re-deploying workers, 127-129, 135safest job categories, 139-142structural transformation concept,
132-135U.S. regional job losses, 138-139,
174-175European Union
impact of China’s rise, 108-109trade balance, 9, 15
exchange rates. See foreign exchangeexports
calculating on FAS basis, 7Chinese dependence, 18by foreign multinationals in China, 12-13high-technology, 165
Ffair trade, 9fake products, 89, 94-96FAS (free alongside ship basis), 7Five Rivers, 149, 159FOB (free on board) basis, 7Foreign Corrupt Practices Act, 88foreign exchange, realigning rates, 13-14.
See also currenciesforeign invested enterprises
labor-intensive vs. capital-intensive vs. technology-intensive, 68
options for remaining competitive with China, 18
as participants in Chinese export growth, 12-13, 66-72
foreign manufacturing companies, options for remaining competitive with China, 18
Frank, Dana, 158free trade, 9Furniture Brands, 118
furniture industryChina’s impact on market, 106-108, 148,
151, 153role of outsourcing, 118
GGeneral Electric
role in Chinese technology transfer, 68shifting production to China, 118
General Motors, in China, 3, 71geo-political order
China’s impact on other nations, 108-113Chinese aspirations, 23, 37
global economyChina in, 2-7Chinese aspirations, 38-40growing Chinese impact, 14intellectual property rights, 11
global outsourcing. See outsourcing, globalGreat Leap Forward, 33, 63Greater China. See also China
economic future, 116economic potential, 6-7educational systems, 5political aspirations, 37students attending U.S. schools, 5trade in goods and services with U.S.,
7-14Groshen, Erica, 133-134, 139, 141Guangzhou Automotive, 66
HHaier, 57, 114, 158Hasbro, 17Henredon Furniture, 107, 117-118Hira, Ron, 128Hong Kong
as economic model, 51-52as part of Greater China, 6, 37background, 51-52dollar, 14educational system, 5entropôt position, 7shift from manufacturing to finance, 51
Hopson, Tom, 159Huawei Technologies, 57, 114
Shenkar_Index 187 8/19/04 9:05:05 AM
188 The Chinese Century
human resourcesdeveloping base, 72-76in China, 4, 72-76, 134
humanware. See human resourcesHutchison Whampoa, 6, 51, 57
IIACC (International Anti-Counterfeiting
Coalition), 87, 97IBM, in China, 71IEEE (Institute of Electrical and Electronics
Engineers), 164, 166IIPA (International Intellectual Property
Alliance), 82, 97IMF (International Monetary Fund), 54imports
calculating on CIF basis, 7China’s share in U.S., 147components and subassemblies, 3, 14,
17, 18highest categories from China to U.S., 8impact on U.S. jobs, 126impact on U.S. retail market, 20
India vs. China, 55-58industries. See also products
automotive, 3, 14, 17, 18, 44, 46, 66, 114China’s impact on jobs, 136China’s impact on markets, 103-108furniture, 106-108, 118, 148, 151, 153knowledge, 3labor-intensive, 2-3, 4, 9, 17, 19responses to China’s impact, 116-120textile, apparel, and footwear, 2, 9, 17, 19,
103-106, 138-139TV sets, 147, 149, 152-153, 155
inflation, 162Infosys, 57innovation, 49-50, 76, 164-167insourcing, 125Institute for International Economics, 11Institute of Electrical and Electronics
Engineers (IEEE), 164, 166Intel, 68intellectual property rights (IPR)
Chinese failure to protect, 4, 11, 81costs and benefits of violations, 84future Chinese expectations, 96-98as global issue, 94-96
historical analogies, 11, 82motorcycle example, 83, 94
International Anti-Counterfeiting Coalition (IACC), 87, 97
International Intellectual Property Alliance (IIPA), 82, 97
International Monetary Fund (IMF), 54
JJapan
automotive industry, 44, 46vs. China, 47-48currency issues, 13-14economic ascent, 43-44economic stagnation, 45, 50educational system, 4impact of China’s rise, 109-110relationship with China, 32trade balance with China, 10, 15trade balance with U.S., 14, 46
Jefferson, Thomas, 164job loss
re-deploying workers, 127-129, 135safest job categories, 139-142U.S., by region, 138-139, 174-175variety of reasons for, 125-126
job migration. See also outsourcing, globalChinese cost advantage, 129-132economic factors, 129-132historical analogies, 134impact on U.S., and foreign jobs, 135-139overview, 121, 123-126rate of growth, 122-126trade-related displacement, 123types, 123U.S. benefits and losses, 127-129
joint ventures, 66, 72, 119
KKelon, 114Kletzer, Lori, 122, 135-136, 140, 141knowledge industries
in India, 57role of China, 3
Konka, 147Korea. See North Korea; South KoreaKroll, Cynthia, 122, 141
Shenkar_Index 188 8/19/04 9:05:05 AM
Index 189
Llabor-intensive industries
impact of Chinese competition, 19, 116role of China, 2-4textile, apparel, and footwear, 2, 9, 17, 19,
103-106, 138-139toys, 17
Lardy, Nicholas, 11Legalism, 27Lenovo, 57, 114, 158Litan, Robert, 141Lont Yontu, 135
MMalaysia, 57, 152Malden Industries, 117Manchu, as foreign occupiers, 29, 31Mandate of Heaven principle, 34, 40manufacturing, U.S. shift to services,
163-164. See also industries; productsMao Tse-Tung and Maoism, 27, 31,
33-34, 63Mattel, 17Maytag, 118Mencius, 34Mexico, impact of China’s rise on, 110-112,
175-176Meyer, Christopher, 132Middle Kingdom, 29, 40Mongols, as foreign occupiers, 29, 31motion pictures. See movies, piracymotorcycles, intellectual property issues,
83, 94movies, piracy, 91, 92, 93-94multinational corporations
Chinese exports by foreign affiliates, 12-13
Chinese technological centers, 4role in improving Chinese higher
education, 74
N-ONippert, 119North Korea, relationship with China,
38, 54
OBMs (Original Branded Manufacturers), 79
ODMs (Original Design Manufacturers), 78OECD (Organization for Economic
Cooperation and Development), 60, 69, 72, 88, 130
OEMs (Original Equipment Manufacturers, 78, 115
off-shoring, defined, 123. See also outsourcing, global
opium war, 62Original Branded Manufacturers
(OBMs), 79Original Design Manufacturers (ODMs), 78Original Equipment Manufacturers (OEMs),
78, 115outsourcing, global. See also job migration
defined, 123vs. off-shoring, 123as paradigm shift, 134as policy issue, 140-141role in corporate survival, 118, 125
Ppartnerships. See joint venturesPearl River, 114People’s Republic of China. See ChinaPersson, Olle, 76piracy
Chinese optical disk capacity, 92combining with counterfeiting, 83digitized product issues, 91-93estimated trade losses, 91as global issue, 94-96motion picture example, 92-93as share of Chinese GDP, 86
Plaza Accord, 14, 116Potter, Simon, 133, 139, 141pricing
deflationary pressure, 162inflationary pressure, 162vs. quality, 152-153
products. See also industriesbranding, 17, 39commoditization, 18components and subassemblies for, 3, 14,
17, 18counterfeit, 89, 94-96
Shenkar_Index 189 8/19/04 9:05:05 AM
190 The Chinese Century
global market paths, 145-159motorcycles, 83, 94piracy, 91-93television sets, 147, 149, 152-153, 155
protectionism, 22-23
Q-RQuam, David, 87
re-deploying workers, 127-129, 135Red Guards, 33Reich, Robert, 163research and development centers, in China,
4, 66, 71-72 166research partnerships. See joint venturesretailers
large, 149-151reliance on Chinese imports, 20
reverse engineering, 83Roach, Stephen, 134
SSAIC, 67, 162Scott, Robert, 136-137service sector
China’s expansion into, 117China’s impact on jobs, 141global job migration, 125role of Greater China, 116U.S. jobs at risk, 19, 124U.S. shift from manufacturing, 163-164as weakness in Chinese economy, 2, 5, 39
shoe market. See textile, apparel, and foot-wear industries
Sigurdson, Jon, 76Singapore
background, 53as economic model, 53as part of Greater China, 6-7, 37
Sinopec, 72smuggling, 89Snow, John, 13software, intellectual property issues, 92Sohn, Sung Won, 134Sony, 152
South Koreabackground, 53-54as economic model, 53-54educational system, 4exports to China, 7loss of foreign investment to China, 16
Soviet Union, as early PRC source of technology transfer, 63
space flights, Chinese, 36SRC Holdings, 117students, Chinese
attending U.S. schools, 5, 75study abroad, 74-76
Sun Yat-sen, 31supply chain, global, 17
TTaiwan
background, 52as economic model, 52as part of Greater China, 6, 37
Tashijian, Edward M., 106TCL, 114, 147, 158technology transfer
automotive industry, 3, 66Chinese preferences and incentives, 67-68Chinese research and development centers,
4, 66, 71-72, 166diffusion issues, 76-79and growing range of Chinese
products, 12rebate system, 68, 168recognition by Chinese, 32role of Soviet Union, 63
Techtronic, 158television sets, 147, 149, 152-153, 155terrorism, and international property
rights, 84textile, apparel, and footwear industries, 2,
9, 17, 19, 103-106, 138-139Thomson, 114, 158Tiananmen Square massacre, 34tigers. See Greater China; Hong Kong;
Singapore; South Korea; Taiwan, 50toys, China-based manufacturing, 17trade balance. See balance of tradetrade-related job displacement, defined, 123TV sets, 147, 149, 152-153, 155
Shenkar_Index 190 8/19/04 9:05:05 AM
Index 191
UU.S. Census Bureau, Foreign Trade
Division, 8U.S.-China Business Council, 7-8, 11,
12, 173U.S. dollar, 9, 13United Nations, 38United States
China’s share of imports, 147Chinese foreign students in, 5, 75as chronic importer, 10consumer reliance on Chinese imports, 20economic views of trade deficit, 9emerging economic issues, 22-23future U.S.-China scenarios, 169-173global trade deficit, 10high-technology exports, 165highest categories of imports from
China, 8import and export calculations, 7open market economy, 10political aspect of China trade, 173-175reasons for dependence on Chinese
imports, 9-13regional job losses, 138-139, 174-175risk of losing better-paying jobs to
China, 19shifting production to China, 14toy manufacturing, 17trade deficit with China, 7-14trade deficit with Japan, 14, 46
up-marketautomotive industry, 46furniture industry example, 107, 117
V-WVietnam, 58, 134, 170Volkswagen, in China, 3
wage gap, 130-131Wal-Mart, 20, 149-151Webster, Daniel, 15white-collar jobs, at risk, 19Wipro, 57World Bank, 60World Trade Organization (WTO)
China in, 2, 10, 38, 67, 167-168import remedies, 140
WTO. See World Trade Organization (WTO)
X-Zyen, Japanese, 13-14yuan, Chinese, 13, 14
Zubic, Dan, 119
Shenkar_Index 191 8/19/04 9:05:06 AM
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