The emerging countries are more and more increasing. Chindia (term used to describe a tight partnership between China and India) is one of them.
China and India are two emerging Asian giants, alongside Brazil and South Africa. These two countries have an impact not only on manufacturing or services industries but also on some field that we thought protected.
Can Chindia impact the world economy ?
We will see if these neighbouring countries can be partner or if there will of being the first economy in the world will be more important.
Part 1: Will Chindia rule the world soon ?
For a start, both countries are dynamic countries which are rapidly emerging as the two of the most economically powerful nations in the world.
In fact if there is a Chindia economy, it would constitute the second largest economy in the world behind the United States. Indeed is likely to be larger than the United States by 2050.
China and India have also a lot of similarities so they can share experience and knowledge. China has the edge in the textile industry whereas India has the lead in cyberspace, Information Technology, and the back office of the world. The call centers, legal, medical, and accounting work is relocated there, also chip design, financial analysis, industrial engineering, drug research and biotechnology.
The Essay on Third World Countries Globalization Economy
For decades, American citizens have been complaining about how outsourcing has ruined their lives and that it is only going to harm America and its economy. Unfortunately, jobs are going to be lost and the unemployment rate may rise due to globalization. However, the benefits of globalization are infinite. People in other parts of the world will achieve a greater life than they ever thought ...
Moreover, both have manufacturing platforms, cheap labour force and low-cost competition, which is viewed as an unfair competition.
If they work together, they will penetrate much better foreign markets. However, before penetrate foreign markets, they will have to captive the market they share which represents 2.5 billion consumers.
Even if both have a big rural population who are still living at subsistent level, both are big countries which if they become business partners, will create the biggest free trade in the world. This will maybe require formation of a new currency comparable to the Euro. It will also become the first currency of the world beyond the dollar.
By merging their brain power, desire for success and natural Chindia will steal jobs from the West (as they already doing).
Employees who are working in science and health care fields will be more important in Chindia than in the United States.
India and China will represent the third of the humanity, with a growth rates both from 8 to 10 % per year. They will also reached 30 to 40 % of the global economy.
Part 2: Which country will overcome ?
Even if China and India have similarities and want to join their forces and increase their strength in the global economy to be more competitive, they are also considered competitors in a numbers of ways.
In fact, China is a former communist country, a republic (which has taken Hongkong over) whereas India is a democracy with ties to the West.
We can also talk about the infrastructure. There is highways, ports and power sector in China whereas India must step up measures in infrastructures, with an economic reform under way since the 1990s. If India do not invest in infrastructure, many investors as well as goods and service providers, will not be able to function in India effectively.
Moreover, India is still a protectionist country and the foreign direct investment is restricted in many states in India. The foreign investment is about 50 million dollars per year for China against 40 million dollars for India. In addition, both governments are wasting money on unproductive endeavours, instead of reforming the economy to make doing business easier and in turn attracting more investment and increasing growth.
The Term Paper on Ultrasound Machines India China And A Skewed
General Electric Co. and other companies have sold so many ultrasound machines in India that tests are now available in small towns like Indergarh, where there is no drinking water, electricity is infrequent, and roads turn to mud after a March rain shower. A scan typically costs $8, or a week’s wages. GE has waded into India’s market as the country grapples with a difficult social issue: the ...
China is an exporting country, 4 times more than India, and has outpaced Germany. China has many trading partners including the Europe, Africa, South America and the United States of course. However, India’s economy and enterprises will be globally integrated especially with other advanced countries (Europe, US, Canada, UK, Australia, Singapore, Japan, South Korea) through large scale acquisitions of well established and well respected foreign companies with technology, branding and manufacturing assets.
For instance, India has recently finalised a nuclear deal with the United
States but also with France, which displeasure China. One of the other issue is that both countries are becoming huge consumers of hydrocarbons in the world. They are competing for gas and oil and are ready to invest in Africa without taking care of the human rights.
Another issue is that China’s population – roughly 1.3 billion – is rapidly aging, and its low birth rate, attributed to the government’s one-child policy, will cause a demographic drag on growth. By 2015, one third of its population will exceed 50+ years of age. At that point, China’s working-age population will peak at 1 billion and then drop steadily.
India, with a population of 1.1 billion and a high fertility rate, will reap the dividends of a large, young, and growing workforce. Projections indicate that by 2015, 58% of the population will be below 29. By mid-century, India’s population is expected to reach 1.6 billion and 220 million more workers than China.
In its future development, China will have environmental, social and regional difficulties which will need lots of political measures.
If they don’t innovate and adapt their politics, the Chinese growth will decrease and be traped by the ageing of the population. China will be old before being rich.
Nevertheless, India which is becoming the world’s back office will be the most populous country in the world in 2050 and will invest much more thanks to its good relationships with the other countries.
The Essay on China and India’s Youth Demographics and Trends
... in that country alone. The current population of the People’s Republic of China is estimated to be about 1,390,510,630. China’s population makes up ... the United States continue to grow over the years, it is certain that we should also acknowledge that other countries will be ... profits would be booming. In conclusion, the youth in China and India are dominating. Companies are seeing an increase in ...
Conclusion:
To conclude the United States but also many other economies in the world will be dramatically impacted. Most affected will be other large economies such as the European Union, the United States and Japan, who would find themselves competing with Chindia for markets and resources.
Indeed, the United States but also the Occident, will loose their monopole of leading global businesses.
