| The China boom is by now a
well-documented phenomenon. Who hasn't {{U}}(1) {{/U}} the Middle
Kingdom's astounding economic growth 8 percent annually, its mesmerizing
{{U}}(2) {{/U}} market 1.2 billion people, the investment ardor of
foreign suitors $20 billion in foreign direct investment last year {{U}}(3)
{{/U}}? China is an economic juggernaut. {{U}}(4) {{/U}}Nicholas
Lardy of the 13rookings Institution, a Washington D. C. -based think tank, "No
country {{U}}(5) {{/U}} its foreign trade as fast as China over the last
20 years. Japan doubled its foreign trade over {{U}}(6) {{/U}} period;
{{U}}(7) {{/U}} foreign trade as quintupled. They've become the
preeminent producer of labor-intensive manufacturing goods in the
world." But there's been {{U}}(8) {{/U}} from the dazzling China growth story—namely, the Chinese multinational. No major Chinese companies have {{U}}(9) {{/U}} established themselves, or their brands, {{U}}(10) {{/U}} the global stage. But as Haier shows, that is starting to change. {{U}}(11) {{/U}} 100 years of poverty and chaos, of being overshadowed by foreign countries and multinationals, Chinese industrial companies are starting to {{U}}(12) {{/U}} on the world. A new generation of large and credible firms {{U}}(13) {{/U}} in China in the electronics, appliance and even high-tech sectors. Some have reached critical mass on the mainland and {{U}}(14) {{/U}} new outlets for their production—through exports and by building Chinese factories abroad, chiefly in Southeast Asia. One example: China's investment in Malaysia {{U}}(15) {{/U}} from ＄8 million in 2000 to ＄766 million in the first half of this year. {{U}} (16) {{/U}} China's export prowess, it will be years {{U}}(17) {{/U}} Chinese firms achieve the managerial and operational expertise of Western and Japanese multinationals. For one thing, many of its best companies are still at least partially state-owned. {{U}}(18) {{/U}}, China has a shortage of managerial talent and little notion of marketing and brand-building. Its companies are also {{U}}(19) {{/U}} by the country's long tradition of central planning, inefficient use of capital and antiquated distribution system, {{U}}(20) {{/U}} makes building national companies a challenge. |