185

Index

Aaircraft industry, Chinese market, 3American Axle, 117Andersen, Jonathan, 135apparel market. See textile, apparel, and

footwear industriesAsia. See also China; Greater China; Hong

Kong; Japan; North Korea; Singapore; South Korea; Taiwan

China as economic hub, 7, 16, 162Chinese entrepreneurial class, 57digital piracy issues, 92financial crisis, 54impact of China’s rise, 113loss of foreign investment to China, 16trade balance with China, 9

Austin, Benjamin, 164automotive industry

Chinese market, 3, 114as factor in U.S. trade deficit, 14Japanese, 44, 46technology transfer, 3, 66U.S. component and subassembly imports,

3, 14, 17, 18up-market, 46

Bbalance of trade

Chinese, 7, 10, 147economic views, 9future U.S.-China scenarios, 169-173

Japan vs. China, 10, 15Japan vs. U.S., 14U.S. global trade deficit, 10U.S. vs. China, 7-14, 147

Bangladesh, 134, 170, 175Bardhan, Ashok D., 122, 141Blockbuster, 98Boam, Thomas, 84, 86, 93, 98, 99,

108-109, 118, 119Boeing, China as market, 3, 8bogus products, 89, 94-96bootlegging. See piracybranding, 17, 39, 117, 157-158. See also

commoditizationbribes, 88, 109Buckley, Peter, 69bureaucracy, historical role in China, 27-29Buy America debate, 21, 150, 158

CCarson, Joseph, 133CATIC (Chinese Aerotech), 72Central American Free Trade

Agreement, 106chaebols, 54Changhong Electric, 147, 149, 151cheap labor. See labor-intensive industriesCheung Kong Scholar Program, 76Chiang Kai-shek, 52China. See also Greater China

attitude toward technology, 59-72balance of trade, 9

Shenkar_Index 185 8/19/04 9:05:04 AM

186 The Chinese Century

as Communist nation, 16, 33-34, 64, 73corrupt government practices, 87-89democracy and, 38dependence on exports, 18as domestic market, 3, 20early reaction to Western power and

influence, 31-32economic future, 114-115economic growth, 2-7economic weaknesses, 2, 5educational system, 4, 73-74entrepreneurial activity, 49-50, 57failure to protect intellectual property

rights, 81-99foreign multinationals, 12-13future U.S.-China scenarios, 169-173global trade in goods and services, 7-14growing impact on world markets, 14,

101-106, 108-120, 161high-technology exports, 165history of inventions, 60-65home-grown companies, 114human resources, 4, 72-76, 134impact of history today, 30-31Imperial period, 26-31, 61-62, 73vs. India, 55-58vs. Japan, 47-48key historical milestones, 25major industries, 17-18modern aspirations, 35-40modern reform efforts, 34-35, 64-65notable inventions, 61population, 3relationship with North Korea, 38, 54significance of job shift, 134-135size issue, 47space project, 36students attending U.S. schools, 5, 75trade surplus with U.S., 7-14unique quality of economic ascent, 42-43WTO compliance, 167-169

China Aerospace, 72China Netcom, 114Choi, H., 76CIF (cost, insurance, and freight), 7Clode, Jack, 94clothing market. See textile, apparel, and

footwear industriescommoditization, 18. See also branding

Communism, China as Communist nation, 16, 33-34, 64, 73

Confucius and Confucianism, 26-27, 88Cong Cao, 75consumers

global product paths to market, 145-159reliance on Chinese imports, 20survey of interest in Chinese products,

153-157Council on U.S.-China Trade. See

U.S.-China Business Councilcounterfeiting

combining with piracy, 83defined, 83as global issue, 94-96motorcycle example, 83, 94as share of Chinese GDP, 86

Cox, Tench, 171crime, and international property rights,

84, 87Cultural Revolution, 33, 63, 73currencies

Chinese yuan, 13-14Japanese yen, 13-14realigning rates, 13-14U.S. dollar, 9, 13

Ddeficits, trade. See balance of tradedeflation, 162democracy

Chinese political leadership view, 38India as, 56Singapore as, 53Taiwan as, 52

Deng Xiaoping, 31, 35, 64developing nations

China’s impact on jobs, 139counterfeiting and piracy issues, 94-96loss of foreign investment to China,

15, 19political aspect of China trade, 175-176textile, apparel, and footwear

industries, 105digitized products, pirating, 91-93dollar, Hong Kong, 14dollar, U.S., 9, 13Dongfeng Motors, 162Dyer, Dave, 107

Shenkar_Index 186 8/19/04 9:05:04 AM

Index 187

Eeducational system

in China, 4, 73-74transforming, 73-76

electronics industry, China’s market outlook, 114

employment. See also job migrationreasons for job loss, 125-126re-deploying workers, 127-129, 135safest job categories, 139-142structural transformation concept,

132-135U.S. regional job losses, 138-139,

174-175European Union

impact of China’s rise, 108-109trade balance, 9, 15

exchange rates. See foreign exchangeexports

calculating on FAS basis, 7Chinese dependence, 18by foreign multinationals in China, 12-13high-technology, 165

Ffair trade, 9fake products, 89, 94-96FAS (free alongside ship basis), 7Five Rivers, 149, 159FOB (free on board) basis, 7Foreign Corrupt Practices Act, 88foreign exchange, realigning rates, 13-14.

See also currenciesforeign invested enterprises

labor-intensive vs. capital-intensive vs. technology-intensive, 68

options for remaining competitive with China, 18

as participants in Chinese export growth, 12-13, 66-72

foreign manufacturing companies, options for remaining competitive with China, 18

Frank, Dana, 158free trade, 9Furniture Brands, 118

furniture industryChina’s impact on market, 106-108, 148,

151, 153role of outsourcing, 118

GGeneral Electric

role in Chinese technology transfer, 68shifting production to China, 118

General Motors, in China, 3, 71geo-political order

China’s impact on other nations, 108-113Chinese aspirations, 23, 37

global economyChina in, 2-7Chinese aspirations, 38-40growing Chinese impact, 14intellectual property rights, 11

global outsourcing. See outsourcing, globalGreat Leap Forward, 33, 63Greater China. See also China

economic future, 116economic potential, 6-7educational systems, 5political aspirations, 37students attending U.S. schools, 5trade in goods and services with U.S.,

7-14Groshen, Erica, 133-134, 139, 141Guangzhou Automotive, 66

HHaier, 57, 114, 158Hasbro, 17Henredon Furniture, 107, 117-118Hira, Ron, 128Hong Kong

as economic model, 51-52as part of Greater China, 6, 37background, 51-52dollar, 14educational system, 5entropôt position, 7shift from manufacturing to finance, 51

Hopson, Tom, 159Huawei Technologies, 57, 114

Shenkar_Index 187 8/19/04 9:05:05 AM

188 The Chinese Century

human resourcesdeveloping base, 72-76in China, 4, 72-76, 134

humanware. See human resourcesHutchison Whampoa, 6, 51, 57

IIACC (International Anti-Counterfeiting

Coalition), 87, 97IBM, in China, 71IEEE (Institute of Electrical and Electronics

Engineers), 164, 166IIPA (International Intellectual Property

Alliance), 82, 97IMF (International Monetary Fund), 54imports

calculating on CIF basis, 7China’s share in U.S., 147components and subassemblies, 3, 14,

17, 18highest categories from China to U.S., 8impact on U.S. jobs, 126impact on U.S. retail market, 20

India vs. China, 55-58industries. See also products

automotive, 3, 14, 17, 18, 44, 46, 66, 114China’s impact on jobs, 136China’s impact on markets, 103-108furniture, 106-108, 118, 148, 151, 153knowledge, 3labor-intensive, 2-3, 4, 9, 17, 19responses to China’s impact, 116-120textile, apparel, and footwear, 2, 9, 17, 19,

103-106, 138-139TV sets, 147, 149, 152-153, 155

inflation, 162Infosys, 57innovation, 49-50, 76, 164-167insourcing, 125Institute for International Economics, 11Institute of Electrical and Electronics

Engineers (IEEE), 164, 166Intel, 68intellectual property rights (IPR)

Chinese failure to protect, 4, 11, 81costs and benefits of violations, 84future Chinese expectations, 96-98as global issue, 94-96

historical analogies, 11, 82motorcycle example, 83, 94

International Anti-Counterfeiting Coalition (IACC), 87, 97

International Intellectual Property Alliance (IIPA), 82, 97

International Monetary Fund (IMF), 54

JJapan

automotive industry, 44, 46vs. China, 47-48currency issues, 13-14economic ascent, 43-44economic stagnation, 45, 50educational system, 4impact of China’s rise, 109-110relationship with China, 32trade balance with China, 10, 15trade balance with U.S., 14, 46

Jefferson, Thomas, 164job loss

re-deploying workers, 127-129, 135safest job categories, 139-142U.S., by region, 138-139, 174-175variety of reasons for, 125-126

job migration. See also outsourcing, globalChinese cost advantage, 129-132economic factors, 129-132historical analogies, 134impact on U.S., and foreign jobs, 135-139overview, 121, 123-126rate of growth, 122-126trade-related displacement, 123types, 123U.S. benefits and losses, 127-129

joint ventures, 66, 72, 119

KKelon, 114Kletzer, Lori, 122, 135-136, 140, 141knowledge industries

in India, 57role of China, 3

Konka, 147Korea. See North Korea; South KoreaKroll, Cynthia, 122, 141

Shenkar_Index 188 8/19/04 9:05:05 AM

Index 189

Llabor-intensive industries

impact of Chinese competition, 19, 116role of China, 2-4textile, apparel, and footwear, 2, 9, 17, 19,

103-106, 138-139toys, 17

Lardy, Nicholas, 11Legalism, 27Lenovo, 57, 114, 158Litan, Robert, 141Lont Yontu, 135

MMalaysia, 57, 152Malden Industries, 117Manchu, as foreign occupiers, 29, 31Mandate of Heaven principle, 34, 40manufacturing, U.S. shift to services,

163-164. See also industries; productsMao Tse-Tung and Maoism, 27, 31,

33-34, 63Mattel, 17Maytag, 118Mencius, 34Mexico, impact of China’s rise on, 110-112,

175-176Meyer, Christopher, 132Middle Kingdom, 29, 40Mongols, as foreign occupiers, 29, 31motion pictures. See movies, piracymotorcycles, intellectual property issues,

83, 94movies, piracy, 91, 92, 93-94multinational corporations

Chinese exports by foreign affiliates, 12-13

Chinese technological centers, 4role in improving Chinese higher

education, 74

N-ONippert, 119North Korea, relationship with China,

38, 54

OBMs (Original Branded Manufacturers), 79

ODMs (Original Design Manufacturers), 78OECD (Organization for Economic

Cooperation and Development), 60, 69, 72, 88, 130

OEMs (Original Equipment Manufacturers, 78, 115

off-shoring, defined, 123. See also outsourcing, global

opium war, 62Original Branded Manufacturers

(OBMs), 79Original Design Manufacturers (ODMs), 78Original Equipment Manufacturers (OEMs),

78, 115outsourcing, global. See also job migration

defined, 123vs. off-shoring, 123as paradigm shift, 134as policy issue, 140-141role in corporate survival, 118, 125

Ppartnerships. See joint venturesPearl River, 114People’s Republic of China. See ChinaPersson, Olle, 76piracy

Chinese optical disk capacity, 92combining with counterfeiting, 83digitized product issues, 91-93estimated trade losses, 91as global issue, 94-96motion picture example, 92-93as share of Chinese GDP, 86

Plaza Accord, 14, 116Potter, Simon, 133, 139, 141pricing

deflationary pressure, 162inflationary pressure, 162vs. quality, 152-153

products. See also industriesbranding, 17, 39commoditization, 18components and subassemblies for, 3, 14,

17, 18counterfeit, 89, 94-96

Shenkar_Index 189 8/19/04 9:05:05 AM

190 The Chinese Century

global market paths, 145-159motorcycles, 83, 94piracy, 91-93television sets, 147, 149, 152-153, 155

protectionism, 22-23

Q-RQuam, David, 87

re-deploying workers, 127-129, 135Red Guards, 33Reich, Robert, 163research and development centers, in China,

4, 66, 71-72 166research partnerships. See joint venturesretailers

large, 149-151reliance on Chinese imports, 20

reverse engineering, 83Roach, Stephen, 134

SSAIC, 67, 162Scott, Robert, 136-137service sector

China’s expansion into, 117China’s impact on jobs, 141global job migration, 125role of Greater China, 116U.S. jobs at risk, 19, 124U.S. shift from manufacturing, 163-164as weakness in Chinese economy, 2, 5, 39

shoe market. See textile, apparel, and foot-wear industries

Sigurdson, Jon, 76Singapore

background, 53as economic model, 53as part of Greater China, 6-7, 37

Sinopec, 72smuggling, 89Snow, John, 13software, intellectual property issues, 92Sohn, Sung Won, 134Sony, 152

South Koreabackground, 53-54as economic model, 53-54educational system, 4exports to China, 7loss of foreign investment to China, 16

Soviet Union, as early PRC source of technology transfer, 63

space flights, Chinese, 36SRC Holdings, 117students, Chinese

attending U.S. schools, 5, 75study abroad, 74-76

Sun Yat-sen, 31supply chain, global, 17

TTaiwan

background, 52as economic model, 52as part of Greater China, 6, 37

Tashijian, Edward M., 106TCL, 114, 147, 158technology transfer

automotive industry, 3, 66Chinese preferences and incentives, 67-68Chinese research and development centers,

4, 66, 71-72, 166diffusion issues, 76-79and growing range of Chinese

products, 12rebate system, 68, 168recognition by Chinese, 32role of Soviet Union, 63

Techtronic, 158television sets, 147, 149, 152-153, 155terrorism, and international property

rights, 84textile, apparel, and footwear industries, 2,

9, 17, 19, 103-106, 138-139Thomson, 114, 158Tiananmen Square massacre, 34tigers. See Greater China; Hong Kong;

Singapore; South Korea; Taiwan, 50toys, China-based manufacturing, 17trade balance. See balance of tradetrade-related job displacement, defined, 123TV sets, 147, 149, 152-153, 155

Shenkar_Index 190 8/19/04 9:05:05 AM

Index 191

UU.S. Census Bureau, Foreign Trade

Division, 8U.S.-China Business Council, 7-8, 11,

12, 173U.S. dollar, 9, 13United Nations, 38United States

China’s share of imports, 147Chinese foreign students in, 5, 75as chronic importer, 10consumer reliance on Chinese imports, 20economic views of trade deficit, 9emerging economic issues, 22-23future U.S.-China scenarios, 169-173global trade deficit, 10high-technology exports, 165highest categories of imports from

China, 8import and export calculations, 7open market economy, 10political aspect of China trade, 173-175reasons for dependence on Chinese

imports, 9-13regional job losses, 138-139, 174-175risk of losing better-paying jobs to

China, 19shifting production to China, 14toy manufacturing, 17trade deficit with China, 7-14trade deficit with Japan, 14, 46

up-marketautomotive industry, 46furniture industry example, 107, 117

V-WVietnam, 58, 134, 170Volkswagen, in China, 3

wage gap, 130-131Wal-Mart, 20, 149-151Webster, Daniel, 15white-collar jobs, at risk, 19Wipro, 57World Bank, 60World Trade Organization (WTO)

China in, 2, 10, 38, 67, 167-168import remedies, 140

WTO. See World Trade Organization (WTO)

X-Zyen, Japanese, 13-14yuan, Chinese, 13, 14

Zubic, Dan, 119

Shenkar_Index 191 8/19/04 9:05:06 AM

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