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Critically assess the relative competitiveness and socio-economic outcomes of manufacturing in China - Essay Example

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China’s economic development in the recent past has been extremely significant, thereby making it one of the most competitive nations across the globe. This increased competitiveness compels business experts to mull over the factors that deem China to be among the best nations…
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Critically assess the relative competitiveness and socio-economic outcomes of manufacturing in China
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"Critically assess the relative competitiveness and socio-economic outcomes of manufacturing in China"

Download file to see previous pages This manuscript mulls over these aspects while considering the socio-economic outcomes of manufacturing in China.
Among the key factors that contribute significantly to China’s relative competitiveness are its favorable investment opportunities. China’s favorable macroeconomics has significant positive impacts on its competitiveness (Dunning & Gugler 2008, 170). For instance, foreign manufacturers have the capability to negotiate with the Chinese government over tax benefits. As such, organizations may have more tax benefits, owing to their adherence to specific government norms. Various manufacturing firms have received priority in this aspect, thereby creating a suitable environment for manufacturers. Besides, the promotion of reinvestments in China significantly boosts its competitiveness. Firms within China may recover their taxes up to over 40 percent, owing to their reinvestment for next five years. The reinvestment of numerous foreign firms within China has significantly promoted its expansion, thereby critically boosting its competitiveness.
Increased inexpensive and skilled labor also boosts China’s competitiveness. Survey shows that China has cheap literate labor as compared to other competing Asian nations such as India, thus making it a choice destination for foreign investors in manufacturing (Liang et al. 2014 1106). Besides, technological advancements have significantly boosted China’s relative competitiveness. In the recent past, China has significantly improved its infrastructure, thereby providing a suitable manufacturing environment for foreign investors. The nation boasts of sophisticated road and water transport networks, with highly efficient communication networks.
Many significantly reduce foreign investment, owing to diverse stringent regulations that tend to favor local firms. However, this concept does not apply in China, where it provides flexible ...Download file to see next pagesRead More
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