presentation to sarpn dr martyn j. davies director, centre for chinese studies, ceo, emerging market...
DESCRIPTION
Centre for Chinese Studies “I see growing on the horizon the greater peril than Germany or Japan ever were…our terrible enemy, America” Enoch Powell ( ), British MPTRANSCRIPT
Presentation to SARPN
Dr Martyn J. Davies
Director, Centre for Chinese Studies, CEO, Emerging Market Focus, Senior Lecturer, Gordon Institute of Business Science
29th March 2006
“China’s Growth: Implications for Poverty Reduction in SADC”
Centre for Chinese Studies
Some questions to ponder this afternoon: How will China’s growth impact us? What are China’s motivations in Africa? Can Africa compete commercially? What drives development? Is Africa’s approach to development flawed? What is China’s economic destination? What if China ran Africa?
Centre for Chinese Studies
“I see growing on the horizon the greater peril than Germany or Japan ever were…our terrible enemy, America”
Enoch Powell (1912-1998), British MP
Centre for Chinese Studies
China’s Impact on the Global Economy
• Shift of manufacturing
• Consumer market
• Commodity “super cycle”
• Emerging multinationals
• China and the global value chain
• Intense competition
• Marginalization of SEMs
Centre for Chinese Studies
“Is Africa a continent that shuns rather than embraces foreign competition?
Centre for Chinese Studies
China’s Emerging Multinationals
Centre for Chinese Studies
But Chinese SOE firms are largely non-collaborative in nature. Why?
A. Politically determined business models
B. Do they seek profit?
C. A mercantilist approach to business
Centre for Chinese Studies
China’s Growth Trajectory
Source: www.gs.com
Centre for Chinese Studies
Questioning the WBM…. A new model for development
Q. What if the Chinese ran Malawi?
Q. The role of the state as a driver of development?
Q. Reaganism vs Dengism
China’s “Marketized” EconomyChina’s “Marketized” EconomyFree Market Open to foreign investment Full competition Limited state involvement
Government controlled• Closed to foreign investment• Limited/no competition• High state involvement
Real estate
Light industrial manufacturing
Consumer electronics
Electronics, telecom equipment
Apparel, textiles Wholesale/retail trade, catering services
Automotive Radio, film, TV
Finance, insurance Government agencies
Postal, telecom services
15%
5% 3%
Size of circle indicates sector’s contribution to GDP
Africa’s knowledge bridge to China