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**Phil Spencer** · 23rd June 2010, 08:15 PM

I copied this off a blog

INVENTED IN CHINDIA

In this new era of globalization, nations and regions are engaged in a war of ideas and innovation in the pursuit of wealth. Whoever makes things better, cheaper, faster _ will win! It takes innovative thinking to stay ahead.

Everyone is familiar with the label, "Made in China" and the expression, "Chinese copy". But when will the phrase "Invented in China" become significant?

China is already the world’s largest manufacturer of consumer goods.
New Chinese innovations are already brewing, fuelled by their burgeoning, motivated and upwardly mobile middle-class.

In the short-sighted drive for short-term profits, American companies are selling off their own proprietary knowledge to China because that is being demanded by the far-sighted Chinese as part of the low price of manufacturing in China.

It won’t be long before China leapfrogs, and responds with their own innovations. They have a clear awareness of the need, and are targeting strategic technology arenas - clean tech, bio-tech, information and communications technologies. The level of Chinese investment in R&D is expected to overtake that of the US within the next decade. Now even capitalistic American companies have started to invest heavily in Chinese R&D operations.

India, already well known for providing low-cost engineering services, is now ramping up in raw R&D. Major companies like IBM, Microsoft, HP and Oracle, as well as automation companies like Honeywell, Rockwell, Emerson and GE, are developing technologies at Indian subsidiaries.
Indian software development companies like Infosys, Wipro and others are now shifting their focus to their own innovations.

Meantime, Indian companies recognize the value of innovation, and are quickly ramping up their own new technologies. Many international start-ups are now using Indian development teams in their business plans. Success begets success, and before long, India too will start selling their innovations to America, Europe and the rest of the world.

In the 1950_s Japan was known for cheap consumer products. In just a few decades they outstripped the Europeans, and their GDP Is now second only to that of the US.

300 years ago, China and India represented over 50% of the world's wealth; today they are now re-emerging as world leaders. India became independent in 1947, and the New People's Republic of China was established at about the same time (1949).

Now, while the West continues to languish, China and India (or "Chindia", as some call the two neighbouring countries) continue to grow at annual rates of about 10%. Representing 40% of the world’s population they will, within another 30-40 years, clearly rank #2 and #3 (after the USA) in the world GDP rankings.
Their own innovations will lead the way.

Selling China Innovation Assets For Short-Term Profits:
Selling China Long-Term Innovation Assets For Short-Term Profits: Not a Good Strategy - BusinessWeek

High-tech industry in China, competing against the world:
The high-tech industry in China, competing against the world

Invented In India:
Invented In India -- India -- InformationWeek

Chindia - Crouching tiger hidden dragon:
Growth & Success eNews No. 189, 24 August 2005

**hughie** · 23rd June 2010, 09:38 PM

Phil,

I have often wondered my self, after looking at the rise of Japan and then later Taiwan. Lately I have watched a rise in the middle class in Thailand and the Philippines and noticed the many changes that this has brought the two countries.

Given the size and massive potential middle class of both China and India. Its only a matter of time before all this comes to fruition. I am not sure who will get across the line first. But one thing for sure is they will both get there and where in the long term will they go when the source of cheap labour runs out, I suspect Africa.

Because as the middle class grows and acquires the trappings of the western middle class so the lot of the labourer improves. OK not as much, but the cheap labour slowly becomes more and more expensive.

**kiwigeo** · 24th June 2010, 10:33 PM

I see a miniature version of all this happening out on the oil rigs were I work. Over the years Ive seen a progression of nationalities passing through the various third party contractors that make up a large portion of the work force out here.....it's determined by which country has the cheapest labour and also which foreign government the contractors are trying to grease up so they get allocated contracts in that country.

**kiwigeo** · 24th June 2010, 10:37 PM

Originally Posted by hughie

Because as the middle class grows and acquires the trappings of the western middle class so the lot of the labourer improves. OK not as much, but the cheap labour slowly becomes more and more expensive.

For China the growing middle class may prove a double edged sword.....as well as striving to have the same material wealth as their western brotehrs and sisters they will also start to want the same freedoms. This will spell trouble for the Chinese government.

**hughie** · 3rd July 2010, 10:37 PM

For China the growing middle class may prove a double edged sword.....as well as striving to have the same material wealth as their western brothers and sisters they will also start to want the same freedoms. This will spell trouble for the Chinese government.

Indeed, and it may sooner than we all think. The Chinese Govt. has been cornering oil reserves around the world as fast as they can, for obvious reasons.But there another reason less obvious, car ownership by the middle class.
If they follow the rest of the developing world, one car may well lead to two car families and so on.

So if we have a 100million in the middle class................

But either way the predictions of their growth and importance [ china&India] on the world economy are I think accurate.

**Phil Spencer** · 4th July 2010, 02:53 PM

I think it is happening now, we buy product from factories in the Dalian region our orders are running six weeks behind because they are on power rationing, there is not enough electricity so the factories have rolling showdowns closed for a week at a time. The other problem is the factories are having trouble getting workers, we have been told they want too much money!

**underfoot** · 4th July 2010, 08:42 PM

Originally Posted by Phil Spencer

I we buy product from factories in the Dalian region The other problem is the factories are having trouble getting workers, we have been told they want too much money!

interested in how much is too much money

**Gingermick** · 4th July 2010, 09:59 PM

anything more than the owners are willing to pay

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