China?s challenge: The opportunities and risks that China?s booming economy provides

Ronald Degen (rjdegen@gmail.com)

No 36, Working Papers from globADVANTAGE, Polytechnic Institute of Leiria

Abstract: The capability of designing to very low cost, and to compete successfully in the tough Chinese market can be transformed into a competitive advantage in other markets. On the other hand, MNCs that are not successfully in China will probably not acquire these capabilities. They will be in a cost disadvantage to compete against Chinese companies in their own markets. They run the risk of becoming secondary players to Chinese companies in the world market, as those competing in the microwave-ovens market against Galanz found out the hard way. MNCs have no choice; they have to accept ?China?s challenge? to continue world players. They have to win in China or lose everywhere.

Keywords: China?s challenge; win in China or lose everywhere; risks to China?s future growth; China?s entrepreneurs; China?s disruptive innovation (search for similar items in EconPapers)
JEL-codes: M0 M1 (search for similar items in EconPapers)
Date: 2009-07-29
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