The contest of this century will probably be between China and India

In the recent issue of ‘The Economist’; the most discussed topic Contest of the Century, was the cover story.

China has officially become the world’s second-biggest economy, overtaking Japan. In the West this has prompted concerns about China overtaking the United States sooner than previously thought. But stand back a little farther, apply a more Asian perspective, and China’s longer-term contest is with that other recovering economic behemoth: India. These two Asian giants, which until 1800 used to make up half the world economy, are not, like Japan and Germany, mere nation states. In terms of size and population, each is a continent—and for all the glittering growth rates, a poor one.

As the years roll forward, the chances are that it will increasingly come down once again to the two Asian giants facing each other over a disputed border. How China and India manage their own relationship will determine whether similar mistakes to those that scarred the 20th century disfigure this one.

As China and India rise in tandem, their relationship will shape world politics…

Chinese Retail Sector got the rhythm back

The retail sector in China was an impermeable one, allowing almost no entries from overseas. The trend is being reversed with increasing activities in mergers and acquisitions (M&A), consolidating new and emerging retail trading businesses. Retailers have realised that the future lies in linking each other gives a cutting-edge advantage on achieving buying power over suppliers; besides, the global trend goes in the same direction. Consolidating markets which were previously scattered in bits and pieces has resulted in the creation of several investment opportunities: whether for multinationals or local corporate and private investors.

Investors cannot help relishing at new opportunities that are created as the need for capital increases with the growing rush to acquire strategic locations for the purpose of establishing national business outlets. The operational framework is now more relaxed, providing multinationals with an unequal breathing space in their manoeuvres. Still, those who came in during those tight regulations face delicate issues in their quest to integrate or acquire Chinese businesses. New comers, on their side, can choose to directly acquire existing retail businesses or set up their own local sales network.
(Image source: Businessoffashion.com)