Comments on: The New Value Economy Arrives

By: The New Investment Rules For China | China Business Success Stories

The New Investment Rules For China | China Business Success Stories — Thu, 23 Oct 2008 09:44:52 +0000

[...] • The wealth gap will become wider over the next 10 years between the cities and the countryside, then stabilize for five years, then shrink as the city worker bees retire in 15 years. Rural infrastructure is less developed, and so far, the Chinese government has made all the wrong moves in rural development by not supporting the development of rural collectives for the farmers. There is an excellent article (in Chinese, h/t to Stan C) about the failure of China’s rural development, and how Chinese rural development will look like the Philippines with large food processing companies employing poor farmers. This organization is partly responsible for the Sanlu tainted milk scandal, and is copied from the US. But the US has a surplus of land and shortage of farmers, while China has a shortage of land and excess of farmers! If you are interested in macroeconomic issues, this is worth more study. Its view converges very well with the view of Yasheng Huang in his new book Capitalism with Chinese Characteristics, which I have also mentioned in my previous article. [...]

By: Scott Pack

Scott Pack — Fri, 17 Oct 2008 10:16:54 +0000

I am feeling better informed with each blog post I read on here. Thank you. Scott Packs last blog post..The Land Of Make Believe

By: David

David — Mon, 13 Oct 2008 09:44:41 +0000

Certainly it has to go deeper than a PR campaign, but you have to admit: none of the above will work worth a damn if it is not accompanied sophisticated communications efforts from both enterprise and government that would be unprecedented in scope and scale.

It also means that the accepted practices of PR in China such as paying, badgering, and even intimidating journalists, paying for “advertorials,” or simply cranking out reams of laudatory copy is going to have to change.

My problem in this, and indeed in everything above, is that all of this pre-supposes that the executives running these firms are going to get much more sophisticated about a lot of things almost overnight. I think this is optimistic.

I agree that what you say will take place, but I think this process is going to take a very long time – five to ten years at least – and it will coincide with the seating of a new generation of leaders at the top of China’s major enterprises.

In the meantime, I expect a “flight to (perceived) quality” among Chinese consumers, especially urban-dwellers along the coast and in select inland cities. This means upticks in the sales of imported products – especially foodstuffs – that is going to show up in the trade figures starting in Q4.

Davids last blog post..Story of a Small Giant

By: Sean

Sean — Thu, 02 Oct 2008 17:26:15 +0000

We can all dream..