There is little denying that the rise of China and India has
grasped the world's attention, a spotlight the two countries have
kept at the Boao Forum for Asia (BFA) annual conference which concludes on
Sunday night in Hainan Province.
China and India jointly account for close to 40 percent of the
world's population. The sheer clout of these two countries, whether
fully tapped or not, poses many questions for Asia as a whole. What
roles will the continent's businesses take on the global stage, how
will they ensure they stay relevant in the face of Chinese and
Indian dominance and what relations will they cement with these two
countries? Can a symbiotic relationship exist between China, India
and the rest of Asia that would allow the continent at large to
benefit from the advancements of these two awakening giants?
These are the topics that business leaders sought to address at
a panel discussion hosted by Christopher Graves, CEO of Asia
Pacific Ogilvy Public Relations Worldwide USA. He was joined in his
task by Habil Khorakiwala, president of the Federation of Indian
Chambers of Commerce and Industry (FICCI); Alan Rosling, executive
director of Tata Sons of India; Kenneth A Torok, president of UPS
Asia Pacific and Lin Yifu, founder and director of the China Center
for Economic Research of Peking University among business leaders
and notables from around the world.
The initial question posed by Christopher Graves gave a broad
heading for the meeting: "Please paint me a picture of what Asia
will look like in 2020?" Answers varied but one thread connected
the opinions of all the assembled business leaders. The future of
China and India dictates that appropriate strategies be created for
the both of them. Many saw China cemented in its role as a global
factory, a center of production while India would stand as a hub
for business and IT services. However, this easy layout may be a
little too convenient.
According to a study conducted by Deloitte Research, China's
blossoming manufacturing sector has had a range of impacts on the
neighboring economies of Japan, South Korea and Southeast Asia.
Japanese and Korean manufacturers have tapped into the Chinese
market, profiting from its low-cost industry and high productive
industry. Conversely, higher value-added processes which were
initially still domestically-based are increasingly being sent to
India.
For Southeast Asian nations, the Chinese industry has created a
wealth of opportunities for producers of raw materials and
components. This phenomenon has been copied on a grander scale with
many global companies turning to China with its glut of low-cost
suppliers. Other Asian countries, reduced from prima donnas to
under-studies, are seeking to diversify their roles and affirm
their own competitive advantages.
According to Habil Khorakiwala, some small and medium-sized
enterprises (SMEs) see clear obstacles preventing easy access to
Chinese and Indian markets. For China, the barrier is posed by
finding proper channels to raise money while India lacks
infrastructure.
His view was taken up by economist Lin Yifu, who sees SMEs as
soon developing into the most competitive sector in China and India
alike. These will create diversified employment opportunities,
alleviate poverty and allow sustainable economic development.
Turning to China specifically, Lin highlighted "greater openness,
flexibility and great investment in education" as three crucial
steps necessary to the better development of China.
?
More unites the fates of China and India than separates them. They
are both two vast countries, seeking to ally their ancient
civilizations with the modern challenges posed by their gigantic
populations. Similar challenges face them down the road, and to
better be able to assist each other in defeating these challenges,
cooperation must be broadened across the spectrum.?
What will the future bring for India and China? All panelists
agreed that they would only continue to grow, gathering to them an
ever-growing share of the global GDP. Their domestic markets will
become increasingly attractive to existing global companies while
both countries will create their own.
All said, the best answer may lie in the result of an impromptu
survey taken during the discussion which saw most respondents
eagerly awaiting the benefits China and India would bring to the
rest of Asia while still being wary of the hidden dangers that will
accompany them.
(China.org.cn by staff reporter Wang Qian, April 22, 2007)
