The friction of two world economic giants
Lure your enemy to the right territory.
Then cut off his lines of communication and the path of retreat.
To be saved, he will be forced to fight with you and with the terrain.
28th Chinese Strategy
Although recently the relative power of China in the world has increased significantly, the main tasks of Chinese foreign policy are defensive and have not changed much since the times of the cold war: to limit the deconstructive influence of foreign countries, to avoid the loss of territories, and to continue economic growth.
China has become one of the few states that have significant national interests in every part of the world, in every country and in many international organizations. China is the only country that is seen in the United States as a real threat to American world domination. The rise of China led to fears that this country will soon crush its neighbors and one day defeat the US as a global hegemon.
5 Sen 2012 Chinese President Hu Jintao met with US Secretary of State Hillary Clinton at the 4 Round of the China-US Strategic and Economic Dialogue at the Peoples House in Beijing.
In addition to H. Clinton and T. Geithner, members of the American delegation also include US Ambassador to China Gary Locke, Deputy Secretary General Nicholas Burns, Secretary of Commerce John Bryson, US Representative at Trade Negotiations Ron Kirk, Head of White House Science and Technology Policy Office John Holdren , Fed Chairman Ben Bernanke et al.
After many years spent on the wars in Iraq and Afghanistan, Washington returns to the Pacific: South Korea has strengthened its military alliance with the United States; Japan abandoned attempts to convince the United States to close its naval base on Okinawa; Singapore allowed naval the fleet USA to host ships; Australian naval and other bases are being created in Australia; Vietnam, Indonesia and the Philippines, among others, are also drawing closer to the United States.
Since the discovery of China in 1970-1971, the United States has deliberately pursued a policy of promoting the rise of China. President Jimmy Carter even sent a memo to the various US government departments with instructions to help China's rise.
This approach is still valid today, although America seeks to shield itself from the risk that Chinese might lead to an increase in its arrogance. Even China’s firing missiles in the Taiwan Strait in 1996 did not change US policy. In any case, the United States is gradually weakening its close ties with Taiwan, and since the time of those rocket maneuvers no member of the US government has visited this island. “The US does not support any of the parties in territorial disputes, but we believe that the countries of the region should work together to resolve these disputes without resorting to coercion, intimidation, threats, and, of course, avoiding the use of force,” warns Hillary Clinton
Clinton’s diplomatic statement is addressed when Beijing does not hide its claims to a number of territories in the South China Sea region. Therefore, China did not hesitate to respond: “We noted that the United States has repeatedly stated that they will not take a stand on the problems of the South China Sea,” said a spokesman for the PRC Foreign Ministry. “We hope that they will be able to keep their promises and act in favor of peace.” and stability in the region, and not vice versa. ”
However, China’s territorial claims are far from the only issue causing friction in relations between the two world economic giants.
Not for the first year, the trade balance is not in favor of the United States. In the first quarter of this year alone, the trade deficit equaled the numbers for the first half of 2011 of the year. Given the huge role of the United States in the global economy, the foreign trade deficit that arose in this country three decades ago and is growing in recent years is a global problem.
Starting with 1976, the US trade balance was in short supply (imports exceeded exports in monetary terms). The increase in the trade deficit with China has been observed since 1985. Now the trade deficit of the main victim of China’s economic expansion in the United States is:
It is a the biggest imbalance between the two states for the whole history international trade. It is expected that in 2012, the deficit with China will increase by another 12%.
It can be said that by now every US resident has “paid for” foreign producers 30 thousand with his own or credit funds.
To prevent an ever-growing imbalance between imports and exports in US foreign trade, it is usually proposed two possible solutions. The first is the continuation of the depreciation of the US dollar. The United States is unlikely to deliberately go to such an extreme and very painful measure.
The second decision, associated with a deliberate slowdown in economic growth, is fraught with a fall in real incomes and, as a result, in the standard of living of the American population. The choice is small ...
Meanwhile, China has become an incredibly rich state. The size of the US government debt to China is $ 1,17 trillion. This means that in fact toItay people have Dene mountainsd ... and the Chinese began to buy real estate in the US at an enviable rate ... Now the Chinese are not interested in Siberia as the picturesque town of Toledo in Ohio, where real estate can be bought for just a few dollars due to the difficult economic situation and high unemployment. The Chinese do not miss this opportunity. According to them, the city is located in a strategically important place in the Midwest, from where it is easy to get to Chicago, Detroit, Cleveland, Pittsburgh and Indianapolis ... According to a recent report in the New York Times, investors from China are buying up luxury apartments and are planning to spend hundreds of millions of dollars on commercial and residential projects such as Atlantic Yards in Brooklyn. Chinese companies are massively renting offices of Empire State Building and WTC-1.
What's next?
China is very different from past opponents of the United States. America’s interests are now so intertwined with China that a policy of isolation or confrontation is simply not feasible. Even on democracy, the United States prefers to lecture to other dictatorial countries, but not to the world's largest autocratic state.
“At the root of the attempts of this administration, and, to be honest, of previous administrations, there was a desire to indicate to China what its interests are ... and then to think that we may be able to make the Chinese perceive the world as we see it,” says Dean Cheng, an expert at the Center for Asian Studies in the Heritage Washington Foundation.
According to Chen, watching the “Arab spring”, and especially the plunging of Syria into a civil war, the Chinese leadership thought about two “fundamental issues” that are relevant to their country. “They see a rise in the movement against authoritarian regimes, and ... they see this idea of leadership instability,” he said.
Noting that China itself is in the middle of a delicate process for the transfer of power this year, Chen said: “The last thing the CCP wants is to do something that will help develop any of these trends in China.”
According to him, it is easier to understand the position of China on Syria, given that the fall of the authoritarian Syrian regime and the attack of Islamists on the secular Assad makes Beijing think about whether this wave will not reach the Chinese coast at some point.
Nothing personal, just business
Not a single state from the pantheon of Asian Economic Miracles evokes such confusion as China in the minds and minds of a Western person. Togo is worse - the Celestial turned into an apple of discord: bye policy with the support of scholars, they energetically insert poles into the wheels of Chinese economic expansion, which, as they see it, is ruining the local (Western) industry, real Entrepreneurs Western world invest in China unthinkable capital. Since 1978, when the wise CCP announced the Great Economic Reform Program, foreign investment in the Chinese economy has amounted to 500 billions of dollars. This is ten times more than investment in Japan for the entire period from 1945 to 2000! According to the Chinese Ministry of Commerce, only US companies have invested 40 billion in 40 thousands of projects implemented in China. It got to the point that the annual foreign investments in this country exceeded investments in India by a factor of ten and were approximately equal to investments in Japan, India and South Korea taken together! Figures of Western investment in China look especially unpatriotic against the background of the dynamics of the US trade deficit ...
Desperate to find understanding with their own merchants, Western governments decided to wage a merciless (and no less fruitless) fight against Chinese delusion on their own. For a long time, special hopes were pinned on China’s accession to the WTO, which should have broken the horns of the Chinese price dumping on the foreign market, and protectionism on the domestic one. Scholars supported politicians by prophesying about the impending collapse of the Chinese banking system and the imminent loss of economic independence. And what? Never mind! China joined the WTO in 2002 year, and immediately brisk and ubiquitous Chinese state-owned companies found ingenious moves in the restrictions and obstacles of this international organization, redirecting the flow of complaints about price dumping and protectionism of the Celestial Empire in a full and calm course of lengthy trials.
Dogs bark - the caravan moves on: the growth rate of the American trade deficit with China accelerated even more after the latter joined the WTO, but the GDP increased, and the volume of trade doubled! The most unpleasant for the West: The Chinese economy has successfully passed the period of restructuring and prepared to confront Western competitors on their own playing field - in an open economic space.
After the collapse of hopes of curbing China through the WTO, the Western political elite focused on a new chimera: unbinding the yuan from the dollar. After a long and long struggle in the spring of 2005, Western politicians still managed to force China to abandon the binding of the yuan to the dollar. Once again, the long-awaited victory turned into disappointment: the yuan went free floating, but despite the aspirations, the revaluation of the Chinese currency was ridiculous - at the level of two percent! The words of Zhou Xiaochuan, the head of the Chinese Central Bank, sounded like mockery: “Revaluation of the Chinese yuan will probably ease the US trade and fiscal deficits somewhat, but the impact will be extremely limited.».
The fiasco with the yuan made the Bush administration seriously think about imposing direct bans on importing entire categories of Chinese goods and imposing heavy customs duties on the rest of the Chinese good. However, this time too, the intentions of politicians in an outrageous manner came into conflict with the plans of American business to finally finish home production and completely relocate to China. Ian Davis, managing director of McKinsey and Company, happily said that the color and pride of the nation - the leaders of the companies on the Fortune 500 list - unanimously called China the “main center of attraction” of their strategic initiatives. The dispute between politicians and entrepreneurs flared up serious:
Politician: “When General Motors came to China in the early 90s, he announced his intention to sell about a million cars in the domestic market in ten years. And what? In 2000, the real sales figure was ... 30 thousands! ”
Entrepreneur: “God bless him, with the domestic Chinese market! The same General Motors sells more than a third of its global profits by transferring its production capacity to China. ”
Politician: “It’s impossible to conduct a joint business with the Chinese! They are constantly deceiving Western partners, their financial statements are not true, instead of the healthy principles of free competition in the open market, bribery and protectionism of party bosses are everywhere in full bloom! ”
Entrepreneur: “But the cost of labor in China is much lower! Plus - cheap raw materials! And - the most liberal environmental legislation! "
Politician: “So they use child and slave labor! More than a third of Chinese water resources are poisoned and completely unsuitable for use, in the list of the ten most polluted cities on the planet five are Chinese, and lung cancer has long been the cause of mortality No. 1 in Beijing and Shanghai! ”
Entrepreneur: "I beg you ..."
In short, there is oblivion of national interests and lack of patriotism? What makes some representatives of Western civilization fiercely dismiss the "yellow devil", and others - rush into his arms, as if spellbound?
Economic shock
China's place in the pantheon of Asian Economic Wonders is unique. First of all, because of the virtuality of the information available about this state. What is the real percentage of annual increment of national gross domestic product? What is the real depth of ecological disaster? What is the real shortage of the banking system? These secrets are kept behind seven mountains, eleven walls and thirty-three seals.
The situation with virtuality is aggravated by the lack of a modern Western man with the proper tools for understanding the Chinese economic phenomenon. Which, however, is not surprising: the key to understanding the Celestial Empire is hidden in the intricacies of national psychology: a Western person approaches China with the standards of economic theory, which is also represented by its very hopeless hypostasis - liberal monetarism. At the core of this approach are lush delusions that:
- GDP growth is a reliable indicator of well-being and progress;
-the growth of trade benefits the ordinary members of society;
- economic globalization is inevitable;
- unregulated free market effectively allocates resources;
- transnational corporations are useful institutions;
- government intervention hurts the economy;
- foreign investment contributes to local prosperity
With surprise and disbelief, a Westerner watches how, on the one hand, China, under the able leadership of not the state at all, but merely the ruling party, stifles the Western economy with a master's grip, demonstrating growth rates unprecedented in the history of mankind. On the other hand, these outstanding achievements do not improve the lives of hundreds of millions of citizens of the country, whose unemployment rate is almost the highest in the world (20%, according to more realistic estimates, all are 40!). However, even these observations of the Western man can not be trusted, because at every step he is faced with fraud and distortion of information. Recently it was discovered that the official Chinese statistics on foreign investment was overestimated as much as six times! And all because the State Council of China introduced tax incentives for companies with foreign constituent capital, and local entrepreneurs rushed to register fake joint ventures, inventing Western investors for themselves!
The helplessness of modern economic theories explaining the success of the Chinese economy is illustrated by the following construction:
- China has created a forced system of civil savings, which sends huge cash flows to banks for subsequent redistribution in the form of loans to enterprises;
- as a result, the population loses purchasing power;
- because of the inability to sell goods within the country, enterprises are forced to focus on exports;
- since the Chinese industry is entirely financed by government loans, its main concern is not to increase the level of profit, but to ensure uninterrupted cash flows to service its own debt obligations;
- indifferent attitude to profit leads to the fact that the goods are sold at cost, and even cheaper;
-the production base of countries importing Chinese goods is collapsing, since the goods of Western enterprises are focused exclusively on making a profit;
- due to high growth rates, there is a terrible reality of internal self-depletion, since the rejection of profits in favor of simple cash flow leads to a pyramidal accumulation of debt obligations, which sooner or later bring down the entire economy.
Of all the samples of Western synological thought, this construction most adequately explains the “unhealthy background of the Chinese economic miracle.”
But the Chinese economy has been “self-depleting” for more than 30 years. Over the years the pyramid was supposed to reach the size of monstrous and incompatible with life - not only the state, but also the citizens themselves. And only a couple of manufactures would have remained of the long-suffering western industry. And what is the reality? The Middle Kingdom today is blooming and smelling, the population is multiplying without measure and looking back, and the Western concerns are taking profits from investment projects in China, so that when they recall their historic homeland they frown in disgust.
It can be argued that the above concept is erroneous already in axioms: after all abundant lending to industrial enterprises in China, banks are not in the permissiveness of the wild market, and under the strict and vigilant control of the state and the home party, which simply will not allow the bankruptcy of enterprises due to late payment of debts. Unfortunately, this amendment does not work either: China is the world's largest importer of raw materials, buying everything from abroad, from oil and copper to aluminum and cement. These purchases are made for convertible currency, and not for indulgences and receipts issued by the party bonus in the form of a guarantee for "pet plants". The banking system is placed in the center of the design, designed to explain the Chinese economic phenomenon, not by accident. In this system, Western politicians and pundits see not only their main enemy, but also the root cause of China’s (still hypothetical) failures in the future. Since Chinese national banks go under the most severe control, it is believed that they are forced to irrevocable loans not only for the sake of financing inefficient state-owned enterprises, but also in the name of harmful communist remnants. To tolerate this disgrace there are no forces, so one of the indispensable conditions for China’s accession to the WTO was the commitment of this country to ensure the direct admission of foreign banks to the domestic market no later than 2006 of the year. WITHthe trick is made by the fact that smart Chinese will transfer their savings accounts to a more reliable and profitable placeand the Chinese national banks, unable to withstand the competition, will go bankrupt and shut down. Everything! End of compulsion and rituals!
Further more. As soon as the national Chinese banks lose their financial leverage, they will be forced to stop supporting the painful samsara of lending to unprofitable enterprises, and the entire Chinese system of internal paternalism and dumping in foreign markets will fall into hardship no later than 2008. The population will rush in a panic to withdraw funds from their savings accounts, and faced with the inability to get their money back, immediately begin to dig trenches and build barricades.
This apocalyptic picture does not belong to any projector, but to a respectable scholar - Nicholas lardi, a sinologist specialist from the Brookings Institution (one of the US think tanks). "In 2005, China came in third place in the list of the main exporters of the planet after Europe and the USA. And only 20 years ago, China was only 30!" - recalls a specialist in China. Lardi's concept is not caricatured, but delusional, since the absolutization of economic theory completely ignores the realities of national psychology.
The stranger among his
Modern Western economic theories do not cope with the realities of the "Chinese miracle" also because this miracle came into being long before the theories themselves. Instead of being offended by China’s reluctance to allow Western companies and goods to the domestic market, it’s worth reading the story. Already during the time of the Roman Empire, China exchanged its silks and perfumes for the gold of foreign civilizations, remaining a completely closed system. A telling example of Britain, which by hook or by crook 200 years unsuccessfully tried to crack the Chinese market. We even had to create a tea industry in India from scratch just to get rid of the disproportionate dependence on Chinese imports. At some point the British managed to find a weak point - the opium! - however, this attempt ended with an energetic series of Opium Wars, initiated by the Chinese authorities.
It would seem: what a stupid stubbornness? After all, from an economic point of view, it is beneficial to saturate the domestic market with foreign goods, especially with those for which there is no national equivalent. The economy, however, does not have rights in the categories of national psychology. The fact is that from time immemorial in China it was believed that the sale to foreigners of their goods while giving up the consumption of someone else’s symbolized the power and independence of the state. This is the true reason why the United States is receiving 152 billion dollars worth of goods from China today, and only supplies 28 billions to China! And no liberal monetarism can break this national-psychological paradigm. No, never.
Obviously, within the framework of the right toolkit (national psychology), the sufferings of the Chinese people, generated by economic effort, directly lead to a feeling of collective national satisfaction. The Chinese find their historical balance in conditions not conceivable for a Western person: 40% unemployment, 12-hour working day, meager wages. These factors, of course, oppress individuality, but individuality has never occupied a priority position in the system of spiritual values of China. On the contrary, the collective spirit, strengthened by the greatness of the state, is most beautifully nourished by unemployment and endless workdays.
The modern economic paradigm of China implements the national idea of the people: the idea of independent trade being in the world system. The emphasis on two words - shopping and independent. A Chinese is born to trade. Do not win the World Chess Championships, do not displace stock exchange platforms and do not win by knockout in boxing. Trade modestly and unobtrusively. Even not to trade, but to trade. From you, he does not need anything except money. Do not need your goods, do not need custody. The Chinese sincerely wish to boil with other nations in a common pot, but they certainly prefer to remain on their own, independent and closed.
The national idea of China is the existence of Yin, the triumph of the Eternal Feminine Beginning, allowing it to absorb everything, while retaining its own originality. At the household level, this being is remarkably conveyed by the formula: “We will digest you!”
For the same reason, Western civilization, based on the rigid male principle of YANG, will always be attracted to China's Yin, being seduced a thousand times and deceiving itself only to once again plunge into its own opposite. The sooner the West manages to kill the self-satisfied stupidity of liberal monetarism, the better it will be for the West. It is for the West, not China, because China - what will it do?
He calmly implements a new paradigm of "heartless" capitalism: 12-hour working day, living in barracks in the factory, a ban on free movement, the massive use of child labor and ridiculous wages - this is weapon modern business paradigm, with which there is not the slightest chance to cope with neither European companies, nor American, nor Japanese! No matter how much they unite, unite and modernize, they will never be able to reduce the cost of final products to a level that is even remotely comparable to Chinese. It remains the only way - to transfer its own production to China. Of course, on Chinese terms: joint ventures with a controlling stake in the state.
However, it is still far to “X hours”, and therefore roulettes, as if nothing had happened, continue to spin in the intended direction.
To be saved, he will have to fight with you and with the terrain ...
In the past four years, there have been changes in the world of communications technology that can rightly be called a revolution. The revolution, however, is not simple, but with a twist: the events unfold entirely behind the scenes, so the audience in the hall - they are ordinary consumers - is not a dream about them. Rather, of course, they guess, because going to the shops for regular electronic toys, they see on the shelves yesterday’s products of still unknown brands that are not inferior to the leading figures of the past day - Nokia, Samsung, LG, Motorola and HTC - in terms of build quality and warranty duration, and stopping the old ones singing at the belt in terms of technological advancement, functional universality and, most importantly, price. Price, sometimes a whole order more affordable and therefore attractive.
Despite the fact that on the domestic stalls, like five years ago, the usual peace and quiet reigns (transnational hyper-brands leave no chance for debutants) For the third consecutive year, a “quiet revolution” has occurred in India and China.
Does the name Tianyu tell you something? Meanwhile, it is the third largest mobile phone maker in China! For four years, Tianyu has bypassed Koreans from scratch: Samsung, LG, - and Taiwanese: HTC, Acer, second only to Nokia and Motorola. Give a couple of years, and from transnational hyperbrands will remain one memory.
Similarly, in India. Four local mobile phone makers: Maxx, Micromax, Spice and Karbonn - were born almost simultaneously, in the 2008 year. At the end of 2010, their market share exceeded 17,5%! At the same time, the share of the almost absolute monopolist of Nokia has decreased from 70 to 54% and continues to decline sharply.
17,5% - is it a lot or a little? Since the CIS is located in the field of the information umbrella of Western civilization, which generates surprising distortions of reality, it is quite reasonable to pay attention to a small reference. India is not only the world's largest mobile phone market (800 million users), but also the most dynamically developing - 10 million new users monthly! 17,5% of the market, recaptured by local manufacturers from transnational hyperbrands for two years, corresponds to 2 million mobile phones sold monthly. These are the startups ...
If the matter were limited to one expansion of young national brands in the communications technology market, there would have been nothing to talk about any revolution. And the fact is that almost none of the above-mentioned Indian and Chinese mobile phone manufacturers ... produce anything on their own! And Tianyu, and Micromax, and Maxx, and Karbonn, and also 103 (!) Indian "creators" are new-type companies, the so-called fabless, without their own production capacity. In other words, everything is made on outsourcing, the staff of the “producers” themselves is limited to the sales department and the creative laboratory.
It would seem: what is surprising in the concept of fabless? Steven Jobs' Apple has long since been working in the same way, delegating Taiksan Foxon’s production duties and Chinese contractors. Why, in the case of Chinese and Indian businesses, have they started talking about revolution?
One of the most widespread stereotypes of this type was the idea that all ideas related to technological progress were born in the West, while Asia was a stupid executor and imitator of white man’s production orders. This stereotype is not only stupid and absurd, but also deadly, because, by forcing us to rest on our laurels, it deprives us of our vigilance and leads to a situation where new technological revolutions will bypass the Western forces one by one.
Another manifestation of Western stereotypes is associated with the moral and ethical manipulation of consciousness. Since Asia is devoid of creative potential in the field of high technologies, any manifestation of individuality is necessarily associated with copyright infringement, plagiarism, theft, or, at best, imitation. This story is most clearly debunked by HTC, which for many years provided manufacturing outsourcing to American and European manufacturers of communicators and smartphones, and then created its own brand and almost immediately took the lead in all areas of the core market - from technology to design.
The current dominance of the Korean giants in the market - Samsung and LG - also illustrates not only the naivety, but also the immediate danger of illusions associated with the imaginary Western domination in the field of R & D. I am afraid that if we arrogantly ignore the “silent revolution”, which is gaining momentum in China and India before our eyes, we will have no chance to gain a foothold in the future.
Within the framework of Western stereotypes, it is considered that the “silent revolution” in the market of communication technologies in China and India is fully developed on the basis of such an ethically unattractive phenomenon as “Shandzhay”. This is a lie, crafty deception and misinformation!
The concept of “shandzhay” in the Western world has evolved from the banal theft to more or less tolerable imitation. Remember all these Soony, Pamasonic, Nokea and Mortorola in dashing 90? This is the Chinese "Shandzhay" in its infancy. They stole the brand, stole the filling, stole the design, produced it on their knees and sold it for a penny - this is the Chinese way in technology. At least that's how it was seen in the West.
Over the years, the Chinese civilized and learned not only to copy, but also “rethink creatively". The Wall Street Journal recently even suggested that the “Shandzhai” is a form of “sincere rebellion” in China against social and political injustice. The Chinese themselves derive their passion for copying not only from ancient national traditions, but also from the love of parody. In an interview with the Expert’s correspondent, Mark Zavadsky, the owner of Xinhui, an iPhone clone called Hiphone Air (with the logo of a whole apple, not a bitten apple), proudly stated that he was doing “not copies of the iPhone, but parodies of them”.
In principle, the “silent revolution” has nothing to do with the stereotypes of the “Shandzhaya” and it is based on a completely different technological paradigm.
At the heart of the dizzying shift from the throne of transnational hyperbrands in the market of mobile technologies are the development of the Taiwanese company Mediatek, which created a unique microcircuit designerSystems-On-Chip (SOC) - “systems on a chip”, representing a new generation of microcontrollers. SOC allows producing a universal functional range on a miniature integrated circuit. For example, the Mediatek chip called MT6239 combines wireless communications via GSM / GPRS Class 12 protocols, an integrated 5 megapixel camera, support for television format MDTV, MP4 / H.263 and H.264 accelerator, support for USB and TV Out, the MT6268 chip adds support for WCDMA and autofocus video to the list, the MT65116 chip adds support for WVGA screen resolution, and so on.
Mediatek constructor gives a phenomenal impulse for innovative creativity, because it allows manufacturers (or rather, creators!) Of new mobile brands in India and China to launch completely unique models on the market, technologically not only inferior, but in most cases advancing products of transnational hyperbrands . And what's the "shandzhay"?
Add to this the phenomenal Mediatek production cycle - 3 from the design stage to the finished product release (for comparison: at Nokia this cycle takes at best 18 months), and you get the success formula of Chinese Tianyu, Indian Micromax, Maxx and Karbonn. Finally, the price, which, due to the extreme concentration of technology on a miniature integrated circuit, is unattainable for competitors with a full production cycle. Moreover, “silent revolutionaries” produce excellent mobile phones with a two-year full Maxx guarantee.
The result of the debut of the X1i model from Micromax is the conquest of the country's hinterland and the creation of a loyal and dedicated army of millions of users. Micromax's ingenious lesson: it’s pointless to compete with Nokia only in price, as the Finnish brand is almost guaranteed to find an opportunity to make up for the difference in price with a phenomenal handicap for prestige and fashion. The little shepherd David can be beaten by Goliath only in two ways: either by technological advantage, which really follows from the difference in the length of the production cycle (Nokia’s 3 for Mediatek and Nokia’s 18 for a month), or by knowing the local market’s intricacies. Indian creators of new brands in the wake of the "silent revolution" successfully use both weapons.
The reckless greed of transnational hyperbrands, unable to restructure in the new market conditions and acting on the unkind memory of a monopoly tradition, also contributed to the success of the “quiet revolution” in India.
And if Beijing or Delhi will introduce prohibitive duties (20%) on the import of finished products (the notorious "factor of national security")
Why does the “silent revolution” bypass the CIS? Maybe someone up there really knows not only the correct explanation of the reasons for our hopelessness, but also the real ways out of the coming vegetation on the sidelines of world civilization.
https://www.uschina.org/statistics/tradetable.html
http://www.bea.gov/international/index.htm#bop
http://ru.wikipedia.org/wiki/Список_стран_по_торговому_балансу#cite_note-est-2
http://www.epravda.com.ua/rus/publications/2012/09/8/334468/
https://www.enefit.com/ru/oil-shale http://offline.business-magazine.ru/2005/81/238059/
http://www.foreignaffairs.com/a-map-of-conflicts-in-the-south-and-east-china-seas
http://www.inosmi.ru/usa/20120905/198615859.html
Then cut off his lines of communication and the path of retreat.
To be saved, he will be forced to fight with you and with the terrain.
28th Chinese Strategy
Although recently the relative power of China in the world has increased significantly, the main tasks of Chinese foreign policy are defensive and have not changed much since the times of the cold war: to limit the deconstructive influence of foreign countries, to avoid the loss of territories, and to continue economic growth.
China has become one of the few states that have significant national interests in every part of the world, in every country and in many international organizations. China is the only country that is seen in the United States as a real threat to American world domination. The rise of China led to fears that this country will soon crush its neighbors and one day defeat the US as a global hegemon.
5 Sen 2012 Chinese President Hu Jintao met with US Secretary of State Hillary Clinton at the 4 Round of the China-US Strategic and Economic Dialogue at the Peoples House in Beijing.
In addition to H. Clinton and T. Geithner, members of the American delegation also include US Ambassador to China Gary Locke, Deputy Secretary General Nicholas Burns, Secretary of Commerce John Bryson, US Representative at Trade Negotiations Ron Kirk, Head of White House Science and Technology Policy Office John Holdren , Fed Chairman Ben Bernanke et al.
After many years spent on the wars in Iraq and Afghanistan, Washington returns to the Pacific: South Korea has strengthened its military alliance with the United States; Japan abandoned attempts to convince the United States to close its naval base on Okinawa; Singapore allowed naval the fleet USA to host ships; Australian naval and other bases are being created in Australia; Vietnam, Indonesia and the Philippines, among others, are also drawing closer to the United States.
Since the discovery of China in 1970-1971, the United States has deliberately pursued a policy of promoting the rise of China. President Jimmy Carter even sent a memo to the various US government departments with instructions to help China's rise.
This approach is still valid today, although America seeks to shield itself from the risk that Chinese might lead to an increase in its arrogance. Even China’s firing missiles in the Taiwan Strait in 1996 did not change US policy. In any case, the United States is gradually weakening its close ties with Taiwan, and since the time of those rocket maneuvers no member of the US government has visited this island. “The US does not support any of the parties in territorial disputes, but we believe that the countries of the region should work together to resolve these disputes without resorting to coercion, intimidation, threats, and, of course, avoiding the use of force,” warns Hillary Clinton
Clinton’s diplomatic statement is addressed when Beijing does not hide its claims to a number of territories in the South China Sea region. Therefore, China did not hesitate to respond: “We noted that the United States has repeatedly stated that they will not take a stand on the problems of the South China Sea,” said a spokesman for the PRC Foreign Ministry. “We hope that they will be able to keep their promises and act in favor of peace.” and stability in the region, and not vice versa. ”
However, China’s territorial claims are far from the only issue causing friction in relations between the two world economic giants.
Not for the first year, the trade balance is not in favor of the United States. In the first quarter of this year alone, the trade deficit equaled the numbers for the first half of 2011 of the year. Given the huge role of the United States in the global economy, the foreign trade deficit that arose in this country three decades ago and is growing in recent years is a global problem.
Starting with 1976, the US trade balance was in short supply (imports exceeded exports in monetary terms). The increase in the trade deficit with China has been observed since 1985. Now the trade deficit of the main victim of China’s economic expansion in the United States is:
It is a the biggest imbalance between the two states for the whole history international trade. It is expected that in 2012, the deficit with China will increase by another 12%.
It can be said that by now every US resident has “paid for” foreign producers 30 thousand with his own or credit funds.
To prevent an ever-growing imbalance between imports and exports in US foreign trade, it is usually proposed two possible solutions. The first is the continuation of the depreciation of the US dollar. The United States is unlikely to deliberately go to such an extreme and very painful measure.
The second decision, associated with a deliberate slowdown in economic growth, is fraught with a fall in real incomes and, as a result, in the standard of living of the American population. The choice is small ...
Meanwhile, China has become an incredibly rich state. The size of the US government debt to China is $ 1,17 trillion. This means that in fact toItay people have Dene mountainsd ... and the Chinese began to buy real estate in the US at an enviable rate ... Now the Chinese are not interested in Siberia as the picturesque town of Toledo in Ohio, where real estate can be bought for just a few dollars due to the difficult economic situation and high unemployment. The Chinese do not miss this opportunity. According to them, the city is located in a strategically important place in the Midwest, from where it is easy to get to Chicago, Detroit, Cleveland, Pittsburgh and Indianapolis ... According to a recent report in the New York Times, investors from China are buying up luxury apartments and are planning to spend hundreds of millions of dollars on commercial and residential projects such as Atlantic Yards in Brooklyn. Chinese companies are massively renting offices of Empire State Building and WTC-1.
What's next?
China is very different from past opponents of the United States. America’s interests are now so intertwined with China that a policy of isolation or confrontation is simply not feasible. Even on democracy, the United States prefers to lecture to other dictatorial countries, but not to the world's largest autocratic state.
“At the root of the attempts of this administration, and, to be honest, of previous administrations, there was a desire to indicate to China what its interests are ... and then to think that we may be able to make the Chinese perceive the world as we see it,” says Dean Cheng, an expert at the Center for Asian Studies in the Heritage Washington Foundation.
According to Chen, watching the “Arab spring”, and especially the plunging of Syria into a civil war, the Chinese leadership thought about two “fundamental issues” that are relevant to their country. “They see a rise in the movement against authoritarian regimes, and ... they see this idea of leadership instability,” he said.
Noting that China itself is in the middle of a delicate process for the transfer of power this year, Chen said: “The last thing the CCP wants is to do something that will help develop any of these trends in China.”
According to him, it is easier to understand the position of China on Syria, given that the fall of the authoritarian Syrian regime and the attack of Islamists on the secular Assad makes Beijing think about whether this wave will not reach the Chinese coast at some point.
Nothing personal, just business
Not a single state from the pantheon of Asian Economic Miracles evokes such confusion as China in the minds and minds of a Western person. Togo is worse - the Celestial turned into an apple of discord: bye policy with the support of scholars, they energetically insert poles into the wheels of Chinese economic expansion, which, as they see it, is ruining the local (Western) industry, real Entrepreneurs Western world invest in China unthinkable capital. Since 1978, when the wise CCP announced the Great Economic Reform Program, foreign investment in the Chinese economy has amounted to 500 billions of dollars. This is ten times more than investment in Japan for the entire period from 1945 to 2000! According to the Chinese Ministry of Commerce, only US companies have invested 40 billion in 40 thousands of projects implemented in China. It got to the point that the annual foreign investments in this country exceeded investments in India by a factor of ten and were approximately equal to investments in Japan, India and South Korea taken together! Figures of Western investment in China look especially unpatriotic against the background of the dynamics of the US trade deficit ...
Desperate to find understanding with their own merchants, Western governments decided to wage a merciless (and no less fruitless) fight against Chinese delusion on their own. For a long time, special hopes were pinned on China’s accession to the WTO, which should have broken the horns of the Chinese price dumping on the foreign market, and protectionism on the domestic one. Scholars supported politicians by prophesying about the impending collapse of the Chinese banking system and the imminent loss of economic independence. And what? Never mind! China joined the WTO in 2002 year, and immediately brisk and ubiquitous Chinese state-owned companies found ingenious moves in the restrictions and obstacles of this international organization, redirecting the flow of complaints about price dumping and protectionism of the Celestial Empire in a full and calm course of lengthy trials.
Dogs bark - the caravan moves on: the growth rate of the American trade deficit with China accelerated even more after the latter joined the WTO, but the GDP increased, and the volume of trade doubled! The most unpleasant for the West: The Chinese economy has successfully passed the period of restructuring and prepared to confront Western competitors on their own playing field - in an open economic space.
After the collapse of hopes of curbing China through the WTO, the Western political elite focused on a new chimera: unbinding the yuan from the dollar. After a long and long struggle in the spring of 2005, Western politicians still managed to force China to abandon the binding of the yuan to the dollar. Once again, the long-awaited victory turned into disappointment: the yuan went free floating, but despite the aspirations, the revaluation of the Chinese currency was ridiculous - at the level of two percent! The words of Zhou Xiaochuan, the head of the Chinese Central Bank, sounded like mockery: “Revaluation of the Chinese yuan will probably ease the US trade and fiscal deficits somewhat, but the impact will be extremely limited.».
The fiasco with the yuan made the Bush administration seriously think about imposing direct bans on importing entire categories of Chinese goods and imposing heavy customs duties on the rest of the Chinese good. However, this time too, the intentions of politicians in an outrageous manner came into conflict with the plans of American business to finally finish home production and completely relocate to China. Ian Davis, managing director of McKinsey and Company, happily said that the color and pride of the nation - the leaders of the companies on the Fortune 500 list - unanimously called China the “main center of attraction” of their strategic initiatives. The dispute between politicians and entrepreneurs flared up serious:
Politician: “When General Motors came to China in the early 90s, he announced his intention to sell about a million cars in the domestic market in ten years. And what? In 2000, the real sales figure was ... 30 thousands! ”
Entrepreneur: “God bless him, with the domestic Chinese market! The same General Motors sells more than a third of its global profits by transferring its production capacity to China. ”
Politician: “It’s impossible to conduct a joint business with the Chinese! They are constantly deceiving Western partners, their financial statements are not true, instead of the healthy principles of free competition in the open market, bribery and protectionism of party bosses are everywhere in full bloom! ”
Entrepreneur: “But the cost of labor in China is much lower! Plus - cheap raw materials! And - the most liberal environmental legislation! "
Politician: “So they use child and slave labor! More than a third of Chinese water resources are poisoned and completely unsuitable for use, in the list of the ten most polluted cities on the planet five are Chinese, and lung cancer has long been the cause of mortality No. 1 in Beijing and Shanghai! ”
Entrepreneur: "I beg you ..."
In short, there is oblivion of national interests and lack of patriotism? What makes some representatives of Western civilization fiercely dismiss the "yellow devil", and others - rush into his arms, as if spellbound?
Economic shock
China's place in the pantheon of Asian Economic Wonders is unique. First of all, because of the virtuality of the information available about this state. What is the real percentage of annual increment of national gross domestic product? What is the real depth of ecological disaster? What is the real shortage of the banking system? These secrets are kept behind seven mountains, eleven walls and thirty-three seals.
The situation with virtuality is aggravated by the lack of a modern Western man with the proper tools for understanding the Chinese economic phenomenon. Which, however, is not surprising: the key to understanding the Celestial Empire is hidden in the intricacies of national psychology: a Western person approaches China with the standards of economic theory, which is also represented by its very hopeless hypostasis - liberal monetarism. At the core of this approach are lush delusions that:
- GDP growth is a reliable indicator of well-being and progress;
-the growth of trade benefits the ordinary members of society;
- economic globalization is inevitable;
- unregulated free market effectively allocates resources;
- transnational corporations are useful institutions;
- government intervention hurts the economy;
- foreign investment contributes to local prosperity
With surprise and disbelief, a Westerner watches how, on the one hand, China, under the able leadership of not the state at all, but merely the ruling party, stifles the Western economy with a master's grip, demonstrating growth rates unprecedented in the history of mankind. On the other hand, these outstanding achievements do not improve the lives of hundreds of millions of citizens of the country, whose unemployment rate is almost the highest in the world (20%, according to more realistic estimates, all are 40!). However, even these observations of the Western man can not be trusted, because at every step he is faced with fraud and distortion of information. Recently it was discovered that the official Chinese statistics on foreign investment was overestimated as much as six times! And all because the State Council of China introduced tax incentives for companies with foreign constituent capital, and local entrepreneurs rushed to register fake joint ventures, inventing Western investors for themselves!
The helplessness of modern economic theories explaining the success of the Chinese economy is illustrated by the following construction:
- China has created a forced system of civil savings, which sends huge cash flows to banks for subsequent redistribution in the form of loans to enterprises;
- as a result, the population loses purchasing power;
- because of the inability to sell goods within the country, enterprises are forced to focus on exports;
- since the Chinese industry is entirely financed by government loans, its main concern is not to increase the level of profit, but to ensure uninterrupted cash flows to service its own debt obligations;
- indifferent attitude to profit leads to the fact that the goods are sold at cost, and even cheaper;
-the production base of countries importing Chinese goods is collapsing, since the goods of Western enterprises are focused exclusively on making a profit;
- due to high growth rates, there is a terrible reality of internal self-depletion, since the rejection of profits in favor of simple cash flow leads to a pyramidal accumulation of debt obligations, which sooner or later bring down the entire economy.
Of all the samples of Western synological thought, this construction most adequately explains the “unhealthy background of the Chinese economic miracle.”
But the Chinese economy has been “self-depleting” for more than 30 years. Over the years the pyramid was supposed to reach the size of monstrous and incompatible with life - not only the state, but also the citizens themselves. And only a couple of manufactures would have remained of the long-suffering western industry. And what is the reality? The Middle Kingdom today is blooming and smelling, the population is multiplying without measure and looking back, and the Western concerns are taking profits from investment projects in China, so that when they recall their historic homeland they frown in disgust.
It can be argued that the above concept is erroneous already in axioms: after all abundant lending to industrial enterprises in China, banks are not in the permissiveness of the wild market, and under the strict and vigilant control of the state and the home party, which simply will not allow the bankruptcy of enterprises due to late payment of debts. Unfortunately, this amendment does not work either: China is the world's largest importer of raw materials, buying everything from abroad, from oil and copper to aluminum and cement. These purchases are made for convertible currency, and not for indulgences and receipts issued by the party bonus in the form of a guarantee for "pet plants". The banking system is placed in the center of the design, designed to explain the Chinese economic phenomenon, not by accident. In this system, Western politicians and pundits see not only their main enemy, but also the root cause of China’s (still hypothetical) failures in the future. Since Chinese national banks go under the most severe control, it is believed that they are forced to irrevocable loans not only for the sake of financing inefficient state-owned enterprises, but also in the name of harmful communist remnants. To tolerate this disgrace there are no forces, so one of the indispensable conditions for China’s accession to the WTO was the commitment of this country to ensure the direct admission of foreign banks to the domestic market no later than 2006 of the year. WITHthe trick is made by the fact that smart Chinese will transfer their savings accounts to a more reliable and profitable placeand the Chinese national banks, unable to withstand the competition, will go bankrupt and shut down. Everything! End of compulsion and rituals!
Further more. As soon as the national Chinese banks lose their financial leverage, they will be forced to stop supporting the painful samsara of lending to unprofitable enterprises, and the entire Chinese system of internal paternalism and dumping in foreign markets will fall into hardship no later than 2008. The population will rush in a panic to withdraw funds from their savings accounts, and faced with the inability to get their money back, immediately begin to dig trenches and build barricades.
This apocalyptic picture does not belong to any projector, but to a respectable scholar - Nicholas lardi, a sinologist specialist from the Brookings Institution (one of the US think tanks). "In 2005, China came in third place in the list of the main exporters of the planet after Europe and the USA. And only 20 years ago, China was only 30!" - recalls a specialist in China. Lardi's concept is not caricatured, but delusional, since the absolutization of economic theory completely ignores the realities of national psychology.
The stranger among his
Modern Western economic theories do not cope with the realities of the "Chinese miracle" also because this miracle came into being long before the theories themselves. Instead of being offended by China’s reluctance to allow Western companies and goods to the domestic market, it’s worth reading the story. Already during the time of the Roman Empire, China exchanged its silks and perfumes for the gold of foreign civilizations, remaining a completely closed system. A telling example of Britain, which by hook or by crook 200 years unsuccessfully tried to crack the Chinese market. We even had to create a tea industry in India from scratch just to get rid of the disproportionate dependence on Chinese imports. At some point the British managed to find a weak point - the opium! - however, this attempt ended with an energetic series of Opium Wars, initiated by the Chinese authorities.
It would seem: what a stupid stubbornness? After all, from an economic point of view, it is beneficial to saturate the domestic market with foreign goods, especially with those for which there is no national equivalent. The economy, however, does not have rights in the categories of national psychology. The fact is that from time immemorial in China it was believed that the sale to foreigners of their goods while giving up the consumption of someone else’s symbolized the power and independence of the state. This is the true reason why the United States is receiving 152 billion dollars worth of goods from China today, and only supplies 28 billions to China! And no liberal monetarism can break this national-psychological paradigm. No, never.
Obviously, within the framework of the right toolkit (national psychology), the sufferings of the Chinese people, generated by economic effort, directly lead to a feeling of collective national satisfaction. The Chinese find their historical balance in conditions not conceivable for a Western person: 40% unemployment, 12-hour working day, meager wages. These factors, of course, oppress individuality, but individuality has never occupied a priority position in the system of spiritual values of China. On the contrary, the collective spirit, strengthened by the greatness of the state, is most beautifully nourished by unemployment and endless workdays.
The modern economic paradigm of China implements the national idea of the people: the idea of independent trade being in the world system. The emphasis on two words - shopping and independent. A Chinese is born to trade. Do not win the World Chess Championships, do not displace stock exchange platforms and do not win by knockout in boxing. Trade modestly and unobtrusively. Even not to trade, but to trade. From you, he does not need anything except money. Do not need your goods, do not need custody. The Chinese sincerely wish to boil with other nations in a common pot, but they certainly prefer to remain on their own, independent and closed.
The national idea of China is the existence of Yin, the triumph of the Eternal Feminine Beginning, allowing it to absorb everything, while retaining its own originality. At the household level, this being is remarkably conveyed by the formula: “We will digest you!”
For the same reason, Western civilization, based on the rigid male principle of YANG, will always be attracted to China's Yin, being seduced a thousand times and deceiving itself only to once again plunge into its own opposite. The sooner the West manages to kill the self-satisfied stupidity of liberal monetarism, the better it will be for the West. It is for the West, not China, because China - what will it do?
He calmly implements a new paradigm of "heartless" capitalism: 12-hour working day, living in barracks in the factory, a ban on free movement, the massive use of child labor and ridiculous wages - this is weapon modern business paradigm, with which there is not the slightest chance to cope with neither European companies, nor American, nor Japanese! No matter how much they unite, unite and modernize, they will never be able to reduce the cost of final products to a level that is even remotely comparable to Chinese. It remains the only way - to transfer its own production to China. Of course, on Chinese terms: joint ventures with a controlling stake in the state.
However, it is still far to “X hours”, and therefore roulettes, as if nothing had happened, continue to spin in the intended direction.
To be saved, he will have to fight with you and with the terrain ...
In the past four years, there have been changes in the world of communications technology that can rightly be called a revolution. The revolution, however, is not simple, but with a twist: the events unfold entirely behind the scenes, so the audience in the hall - they are ordinary consumers - is not a dream about them. Rather, of course, they guess, because going to the shops for regular electronic toys, they see on the shelves yesterday’s products of still unknown brands that are not inferior to the leading figures of the past day - Nokia, Samsung, LG, Motorola and HTC - in terms of build quality and warranty duration, and stopping the old ones singing at the belt in terms of technological advancement, functional universality and, most importantly, price. Price, sometimes a whole order more affordable and therefore attractive.
Despite the fact that on the domestic stalls, like five years ago, the usual peace and quiet reigns (transnational hyper-brands leave no chance for debutants) For the third consecutive year, a “quiet revolution” has occurred in India and China.
Does the name Tianyu tell you something? Meanwhile, it is the third largest mobile phone maker in China! For four years, Tianyu has bypassed Koreans from scratch: Samsung, LG, - and Taiwanese: HTC, Acer, second only to Nokia and Motorola. Give a couple of years, and from transnational hyperbrands will remain one memory.
Similarly, in India. Four local mobile phone makers: Maxx, Micromax, Spice and Karbonn - were born almost simultaneously, in the 2008 year. At the end of 2010, their market share exceeded 17,5%! At the same time, the share of the almost absolute monopolist of Nokia has decreased from 70 to 54% and continues to decline sharply.
17,5% - is it a lot or a little? Since the CIS is located in the field of the information umbrella of Western civilization, which generates surprising distortions of reality, it is quite reasonable to pay attention to a small reference. India is not only the world's largest mobile phone market (800 million users), but also the most dynamically developing - 10 million new users monthly! 17,5% of the market, recaptured by local manufacturers from transnational hyperbrands for two years, corresponds to 2 million mobile phones sold monthly. These are the startups ...
If the matter were limited to one expansion of young national brands in the communications technology market, there would have been nothing to talk about any revolution. And the fact is that almost none of the above-mentioned Indian and Chinese mobile phone manufacturers ... produce anything on their own! And Tianyu, and Micromax, and Maxx, and Karbonn, and also 103 (!) Indian "creators" are new-type companies, the so-called fabless, without their own production capacity. In other words, everything is made on outsourcing, the staff of the “producers” themselves is limited to the sales department and the creative laboratory.
It would seem: what is surprising in the concept of fabless? Steven Jobs' Apple has long since been working in the same way, delegating Taiksan Foxon’s production duties and Chinese contractors. Why, in the case of Chinese and Indian businesses, have they started talking about revolution?
One of the most widespread stereotypes of this type was the idea that all ideas related to technological progress were born in the West, while Asia was a stupid executor and imitator of white man’s production orders. This stereotype is not only stupid and absurd, but also deadly, because, by forcing us to rest on our laurels, it deprives us of our vigilance and leads to a situation where new technological revolutions will bypass the Western forces one by one.
Another manifestation of Western stereotypes is associated with the moral and ethical manipulation of consciousness. Since Asia is devoid of creative potential in the field of high technologies, any manifestation of individuality is necessarily associated with copyright infringement, plagiarism, theft, or, at best, imitation. This story is most clearly debunked by HTC, which for many years provided manufacturing outsourcing to American and European manufacturers of communicators and smartphones, and then created its own brand and almost immediately took the lead in all areas of the core market - from technology to design.
The current dominance of the Korean giants in the market - Samsung and LG - also illustrates not only the naivety, but also the immediate danger of illusions associated with the imaginary Western domination in the field of R & D. I am afraid that if we arrogantly ignore the “silent revolution”, which is gaining momentum in China and India before our eyes, we will have no chance to gain a foothold in the future.
Within the framework of Western stereotypes, it is considered that the “silent revolution” in the market of communication technologies in China and India is fully developed on the basis of such an ethically unattractive phenomenon as “Shandzhay”. This is a lie, crafty deception and misinformation!
The concept of “shandzhay” in the Western world has evolved from the banal theft to more or less tolerable imitation. Remember all these Soony, Pamasonic, Nokea and Mortorola in dashing 90? This is the Chinese "Shandzhay" in its infancy. They stole the brand, stole the filling, stole the design, produced it on their knees and sold it for a penny - this is the Chinese way in technology. At least that's how it was seen in the West.
Over the years, the Chinese civilized and learned not only to copy, but also “rethink creatively". The Wall Street Journal recently even suggested that the “Shandzhai” is a form of “sincere rebellion” in China against social and political injustice. The Chinese themselves derive their passion for copying not only from ancient national traditions, but also from the love of parody. In an interview with the Expert’s correspondent, Mark Zavadsky, the owner of Xinhui, an iPhone clone called Hiphone Air (with the logo of a whole apple, not a bitten apple), proudly stated that he was doing “not copies of the iPhone, but parodies of them”.
In principle, the “silent revolution” has nothing to do with the stereotypes of the “Shandzhaya” and it is based on a completely different technological paradigm.
At the heart of the dizzying shift from the throne of transnational hyperbrands in the market of mobile technologies are the development of the Taiwanese company Mediatek, which created a unique microcircuit designerSystems-On-Chip (SOC) - “systems on a chip”, representing a new generation of microcontrollers. SOC allows producing a universal functional range on a miniature integrated circuit. For example, the Mediatek chip called MT6239 combines wireless communications via GSM / GPRS Class 12 protocols, an integrated 5 megapixel camera, support for television format MDTV, MP4 / H.263 and H.264 accelerator, support for USB and TV Out, the MT6268 chip adds support for WCDMA and autofocus video to the list, the MT65116 chip adds support for WVGA screen resolution, and so on.
Mediatek constructor gives a phenomenal impulse for innovative creativity, because it allows manufacturers (or rather, creators!) Of new mobile brands in India and China to launch completely unique models on the market, technologically not only inferior, but in most cases advancing products of transnational hyperbrands . And what's the "shandzhay"?
Add to this the phenomenal Mediatek production cycle - 3 from the design stage to the finished product release (for comparison: at Nokia this cycle takes at best 18 months), and you get the success formula of Chinese Tianyu, Indian Micromax, Maxx and Karbonn. Finally, the price, which, due to the extreme concentration of technology on a miniature integrated circuit, is unattainable for competitors with a full production cycle. Moreover, “silent revolutionaries” produce excellent mobile phones with a two-year full Maxx guarantee.
The result of the debut of the X1i model from Micromax is the conquest of the country's hinterland and the creation of a loyal and dedicated army of millions of users. Micromax's ingenious lesson: it’s pointless to compete with Nokia only in price, as the Finnish brand is almost guaranteed to find an opportunity to make up for the difference in price with a phenomenal handicap for prestige and fashion. The little shepherd David can be beaten by Goliath only in two ways: either by technological advantage, which really follows from the difference in the length of the production cycle (Nokia’s 3 for Mediatek and Nokia’s 18 for a month), or by knowing the local market’s intricacies. Indian creators of new brands in the wake of the "silent revolution" successfully use both weapons.
The reckless greed of transnational hyperbrands, unable to restructure in the new market conditions and acting on the unkind memory of a monopoly tradition, also contributed to the success of the “quiet revolution” in India.
And if Beijing or Delhi will introduce prohibitive duties (20%) on the import of finished products (the notorious "factor of national security")
Why does the “silent revolution” bypass the CIS? Maybe someone up there really knows not only the correct explanation of the reasons for our hopelessness, but also the real ways out of the coming vegetation on the sidelines of world civilization.
https://www.uschina.org/statistics/tradetable.html
http://www.bea.gov/international/index.htm#bop
http://ru.wikipedia.org/wiki/Список_стран_по_торговому_балансу#cite_note-est-2
http://www.epravda.com.ua/rus/publications/2012/09/8/334468/
https://www.enefit.com/ru/oil-shale http://offline.business-magazine.ru/2005/81/238059/
http://www.foreignaffairs.com/a-map-of-conflicts-in-the-south-and-east-china-seas
http://www.inosmi.ru/usa/20120905/198615859.html
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