China Vs. The World

China Vs. The World

To further understand the People's Republic of China is necessary to keep in mind its culture, its history, its past and its evolution in the last decades. In this country the Patriotic Catholic Association doesn’t operate under the auspices of the Roman Catholic Church, because the Chinese government has banned and controlled by a state agency, the Religious Affairs Bureau. That’s how the Chinese government deals with foreign organizations, be they churches or companies. They are tolerated in China but can operate only under the state’s supervision, this is an example on how the Chinese are protected and help each other, but these reactions are always positive.

With the passage of time China reclaim its place as one of the world’s preeminent economies. The Chinese economy still expanded by 9% a year from 2008 to 2010 a high percentage.

In August 2010 China passed Japan to become the second-largest economy in the world, and next year it is projected to become its biggest manufacturer, pushing the U.S. into second place. This is thanks to China is funding megaprojects in sunrise areas such as new generation nuclear reactors, nanotechnology, quantum physics, clean energy, and water purification. Everything becomes good for local businesses, but not for foreign companies because at the same time, the government is forcing multinational companies in several sectors to share their technologies with Chinese state owned enterprises as a condition of operating in the country. This is fueling tensions between Beijing and foreign governments and companies, and it raises the critical issue of whether the Chinese brand of socialism can coexist with Western capitalism.

Besides that, Chinese government has been implementing new policies that seek to appropriate technology from foreign multinationals in several technology-based industries, such as air transportation, power generation, highspeed rail, information technology, and now possibly electric automobiles, this helps to strengthen his country in the sectors most in need or that are not developed at its peak.

The other issue being discussed is that, in addition to forcing multinational companies to revisit their China strategies, these regulations undercut the assumption that integrating the Chinese economy with the rest of the world’s would bring about a quick convergence of capitalism and socialism, and reduce global political tensions. They can either comply with the rules and share their technologies with Chinese competitors or refuse and miss out on the world’s fastest and growing market.

In late 2009 China’s Ministry of Science and Technology demanded that all the technologies used in products sold to the government be developed in China. However, the government still appears intent on creating a tipping point at which multinational companies will have to locate their most-sophisticated R&D projects and facilities in China.

All this has provoked several disputes between the Chinese government and foreign companies and caused some companies to review their strategies, along one of two lines. The first seeks to tackle the issue of how a multinational company can minimize competitive and security risks to its technologies. The second approaches the issue from the opposite direction, asking which innovations a foreign company must develop in China in order to gain advantage in the fast-changing global marketplace, course that foreign companies do not like the way in which the negotiations were being.

With these statements and strategies to follow, the U.S. considers China a currency manipulator and believes it has failed to meet all its commitments to the World Trade Organization, prompting worries about a coming trade war between the two great economic powers of the 21st century. Foreign companies dominate most of China’s high tech industries, accounting for 85% of the high tech exports from China in 2008.

Another aspect to mention is that China wants to

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