Wednesday 3 November 2010

BRIC



“BRIC”, which is a new economic word, is the capital alphabet from Brazil, Russia, India and China, those countries are developing countries, but they are considered as economic rising stars. One of the countries, China, which is located in Asia, recently in some newspaper, they mentioned that the GDP of China are going to overlap Japan, which is ranked world number 2 at the time being.

China was a communism country; their government was strongly restricted all the foreign investment to their country, every foreign investor would like to invest in China must be assessed by the Chinese government. They recently started to open their domestic market to foreign investor, but there are some controversial issue still remained. For example, as many people might know, the tycoon internet searching provider, called Google, has said that they will withdraw their investment from China even though they might lose 340 million customers with this decision. One of the main reasons why Google has decided to quit from China market is because of China government still involving and restricting their business process quite a lot. It means that even though China has joined WTO, but they didn’t fully follow all the laws which made by WTO. In my opinion, the case of those hackers who attacked google.cn, it’s just an ignition for the problem of behind the scene.

Although The open market for foreign investor in China are still remaining main issues to be solved, many investors still looking forward to get into the market, because it’s a huge market, full of business potential, what make china market so attractive? From my point of view, huge consume ability, low labor cost, huge man-power and low rent are the answers. Some people might argue that they have the problem when they set up a factory in China, the low quality labor are causing them losing their time and capital. But on the other hand, some other investors, they totally believe that it is worth to risk themselves to have try in China market, once you are success in China market, an unpredictable income will appear.

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