Douglas Roberts Dimick

China Isn’t Losing Its Competitive Edge

M,

In my book, I address China's higher-technology sectors emergence issue.

As FDI and HR flows reverse away from China toward Latin America, India, and segments of the EU, quality and IPR characteristics of Chinese business practices for the past decade are coming to roost. See recent manufactures association report of recent.

Central government state planners need leverage. Legal as well as standards and practices reforms are paramount now to gap up from a low cost, low quality sweatshop conglomeration toward those higher tech areas.

As I observed in a prior commentary to you, a form of federalism can be useful here. Washing machines and hot water heaters are similar to a turkey for each family in the voting precinct -- granted, though, a durable not consumable.

From an IB perspective, China has been losing its competitive edge during the past year. RMB appreciation is not the systemic flaw.

Alas, as first with Japan and then Korea, the system which marshaled resources to achieve economic order and development now becomes the governor impeding further emergence.

dr