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Tuesday, October 10, 2006

 

The Rise of China

According to the chapter entitled, The Virgin of Guadalupe, developing countries need to create the right environment for entrepreneurs and their companies to thrive in a flat world. Friedman argues that development is a voluntary process that begins with a country’s positive decision to take the right steps. Underdeveloped countries need to look within themselves and examine where it stands, economically speaking, in relation to other countries. Introspection is a country’s ability to ask itself, “to what extent is it advancing or being left behind by the flattening of the world, and to what extent is it adapting to and taking advantage of all the new platforms for collaboration?” These questions allow countries like China to rise in this economic hierarchy where its success has benefited China but for countries like Mexico as well

China’s entry into the world market is the most important for developing countries, and for many developed countries. China can do high quality low cost manufacturing better than any other country, and increasingly, it also can do high quality higher cost manufacturing.

For example, China’s success in the world market has led to the domination of Mexico in 2003. This was a major step for China because Mexico was one of the leading nations to export the most goods to the United States. China surpassed Mexico in areas such as computer parts, electrical components, toys, textiles, sporting goods, and tennis shoes. It has become too advanced for other countries to compete against which has caused Mexico to ‘throw in the towel’ and accept the challenges that China has imposed.

China has displaced some Mexican companies within Mexico by occupying store shelves with their merchandise. However, Mexico was not the only country who has been dominated by the Chinese. Egypt has also discovered the power of China and Lamees El-Hadidy seems angry and saddened by this fact.

Lamees El-Hadidy discovered the world was flat a few years ago during the Muslim holy month of Ramadan which dates back to the Fatimid period in Egypt.

During Ramadan, “Egyptian schoolchildren traditionally carried a burning candle inside colorful lanterns…. Kids swing the lanterns and sing songs, and people give them candy or gifts, as in America on Halloween.”

Because of China’s determination to rise as the leading nation to dominate the market, its success has proven itself worthy of this accomplishment. They developed plastic Ramadan lanterns that had a battery powered light instead of a candle. Their new innovative creations have flooded the markets, “crippling the traditional Egyptian workshops.” Lamees argues that the Chinese are “invading our tradition and [Egyptians] are doing nothing about it… These lanterns come out of our tradition, our soul, but [the Chinese versions] are more creative and advanced than the Egyptian ones.” It is true that these plastic Chinese-made lanterns are much safer than the traditional Egyptian ones which are made of metal. But these Chinese versions are more appealing to children because ‘they feature flashing lights and have an embedded microchip that plays traditional Egyptian Ramadan tunes.”

“The Egyptian [fawanis] Industry believes china has a clear advantage over
Egypt. With its superior technology, China can make mass quantities, which
helps to keep prices relatively low. Egypt’s traditional [fawanis]
industry, is characterized by a series of workshops specialized in different
stages of the production process. Glassmakers, painters, welders, and metal
craftsmen all have their role to play. There is no way they can ever
compete with things made in china.”

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