If we pick up almost any consumer
product in the US, Western Europe
and other Asian countries, we are likely to see `Made in China' on the
label, and it is no surprise that the mainland boasts of itself as the `Global
low-cost supplier'. The forces behind China's sustained economic miracle are
low-cost labor, massive infrastructure investment, industrial zones, and
more importantly, conducive policies. Thus, Chinese companies have long been
selling goods to the world market and generating trillions of dollars in trade
surplus. As the trade surplus grows, so does its ability to invest in building
global brands.
China Inc. is increasingly concerned about the weakened US dollar and
the subsequent fall in demand globally, and of course about the rising
material and labor costs. The global financial crisis is adding further urgency to
the movement, as Western consumers are turning to value brands at a time
when China's reputation for quality has been negated by product-related
scandals. For years now, Chinese companies have been trying to develop global
brand names. In the process, China has a few global brands like Haier, TCL,
and Lenovo, etc. In the mainland, these are all respected brands, deriving
substantial revenue from global markets. However, when compared to brands
like IBM, Sony, Nokia, Cisco and Apple, Chinese brands receive hardly the
same recognition around the world. Despite the large aspirations of businesses
and the Chinese government, People's Republic of China is yet to create
global brands.
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