The dragon is awakened

China has a new offensive called a “charm doctrine” and it is using it even to more friendly countries like Brazil and Africa. We all know that China is good at manufacturing. But it does not have sufficient raw materials. It need to source raw items from all over the world. If it cannot source, then it buys up assets in foreign countries, resulting in fear that one day, it would control the whole world because it has become the world landlord. That might be a bit far fetch but never the less, it has begun a charm offensive to woo the less developed economies. But behind its strategy is to get at all the resources it can buy just so that its manufacturing will not suffer from having to buy at ridiculously high prices. She is using her vast reserves to splurge on asset accumulation and that has got western economies worried. Still, there is very little western countries can do because they themselves are facing a monetary crisis of huge proportion. China has agreed to buy up the debts of Greece, Spain and Iceland and is ready to do more. It is no doubts money power and it is a great weapon in times of credit crunches. In order not to fray feathers, China has push out the charm offensive to allay fears that it is out to enslave the world.

Aside from the charm offensive, China is also encouraging its people to go out and play their role by forming joint ventures with foreign parties. This is a good way to play down the need for raw resources. Manufacturing can now move out to the less developed countries. Chinese brands will no longer be solely made in China but will spread all over the globe. It works both ways. For countries that lack funds, China is eager to play the role of the financier. Joint venture with local firms will in a way make it look as if the locals are doing the manufacturing. That was the game played by the western powers after the Second World War. Today, however, the western economies are facing great problems and in its stead, China is putting herself as the great savior. Slowly and surely, we will see the advent of Chinese brands coming of age and infiltrating into the rest of the world’s market. Japan used to play that role but unfortunately it has lost a lot of ground and she will not see those glory moments again. Some wise men said if you arouse the dragon, you will ultimately regret it. There seems to be no retreat on this and we would be well advised to quickly tie up with a Chinese entity to go into joint ventures. Have you got a thought about doing a joint venture with a Chinese firm? Now, you can source for idea at China Asean Trade because Chinese Manufacturing is represented here in Asia in a permanent exhibition trade center right at this great economic developmental corridor called Iskandar Malaysia.