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When China and India meet, the rest of Asia's herd can be permitted a tingle down the spine because this is the turf on which the biggies play.
 
China and India are home to 2.4 billion people, accounting for about 1/3 of the world population.  Except for a brief clash in 1962, the 2 civilisations had coexisted peacefully for 2000 years, since the days of commerce and the exchange in humanistic thought through a branch of the Silk Road.
 
Their ancient cultures meet as equals: there is no payment deficit on either side.  Where China had moved ahead rapidly in recent time is in its export-led manufacturing that has given its economy roughly 3 times the size of India's.  This is largely due in part to a 13-year head start in economic reform.
 
But India is moving too, albeit more slowly, but in interesting ways: it sends out more tourists and investments than it receives.  It has efficient and entrepreneurial corporate managers and has invented a developmental model of building its service industry ahead of manufacturing. 
 
The evidence is that China's competitive challenge has only thrust Indian industry to perform better in the world stage.
 
So watch out!  The 'Chindia' locomotive is chugging at full speed in it relentless drive towards globalisation.


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Comments

  • secretlife said on Nov 24, 2006....
    Believe me, we feel it in the US.
  • Tinkerman said on Nov 25, 2006....
    We lost many manufacturing jobs to China as factories relocate there to make use of the low-cost labour rate.  In the service sector, backroom operations like IT & call-centre operations were outsourced to India.  It felt strange, you could be calling up your bank's 24hrs hotline for banking matters and the call will be re-directed to someone over in India who will serve you.
    The economic and competitive landscape had changed drastically with the awakening of these 2 Giants as well as the 'shrinking' of the global village!
  • silverwhisper said on Nov 25, 2006....
    actually, i think that china and india are going to make for a very interesting pair of rivals.  i have great difficulty believing that the chinese would want to share that dominance w/ anyone.  ever.  there's more and more manufacturing done in china as regulators ease or adjust quotas/tariffs.  and in india, where there's also plentiful cheap labor that also speaks english pretty darned well and has the merit of not terrifying most people's governments on a weekly basis, this is a very significant threat to china's current dominance in exporting goods.

    ed

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