ANI
04 Oct 2022, 23:48 GMT+10
Beijing [China], October 4 (ANI): China's rights abuses and bad reputation of its tech companies have resulted in creating a negative business environment that is holding back China in the middle-income trap.
Chinese President Xi Jinping's regime is faced with an imminent challenge looming large in China, the 'middle-income trap' in which the country's economy becomes stuck and never shifts into a higher gear, the Europe Asia Foundation reported.
China, a population of 1.4 billion, has one of the quickest economic success stories in history however its decline has now increased its financial instability. These factors range from China's authoritarian regime, unilateralism, military expansionism, violation of human rights and lack of credibility of its tech companies.
Another cause of concern for these companies and businesses who now face the 'middle-income trap' is Xi Jinping who has become the ultimate and overarching authority on business operations and politics in China.
All of this has made businesses and companies wary of dealing with China. China's historic development process. According to a 2012 report, the World Bank and China's state researchers noted that institutional reforms are needed if the country's economy is to stride on a path of development.
The primary policy suggestion, therefore, was to "rethink the role of the state and the private sector to encourage increased competition in the economy," as per the media portal.
China's population is ageing and the skilled workers are shrinking in numbers. This grim picture has created a demand-supply mismatch in the labour market. Regards to the foreign companies lack of patent protection and fragile China-centric supply chains have created hesitancy them.
To make matters worse for China is the US-China trade dispute. As many as 50 companies have moved production out of China, the media portal reported citing the Nikkei Asian Review.
Manufacturers like Apple have therefore started shifting their production, though on a trial scale, to countries like Vietnam. The golden days of the dragon as the go-to hub manufacturing for the West seem to be over for good reported the portal. (ANI)Get a daily dose of Malaysia Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Malaysia Sun.
More InformationHANOI, Vietnam: As Vietnam seeks to strengthen trade ties and avoid potential U.S. tariffs, companies from both countries signed agreements...
NEW DELHI, India: Jaguar Land Rover (JLR) has decided against manufacturing electric vehicles at Tata Motors' upcoming $1 billion factory...
New Delhi [India], March 20 (ANI): Philippines Foreign Affairs Secretary Enrique Manalo highlighted the rapid growth of India-Philippines...
New Delhi [India], March 20 (ANI): Star Alliance Partners Air New Zealand and Air India on Wednesday signed a Memorandum of Understanding...
Kathmandu [Nepal], March 19 (ANI): Nepali lawmakers from both ruling and opposition parties have demanded the formation of a high-level...
Greater Noida (Uttar Pradesh) [India], March 19 (ANI): The second India International Soft Tennis Championship and the first South...
NEW YORK, New York - U.S. stocks rose Wednesday despite the U.S. Federal Reserve signalling a potential slowdown in the U.S. economy,...
WASHINGTON, D.C.: President Donald Trump has reversed a Biden-era executive order requiring businesses with federal contracts to pay...
FRANKFURT, Germany: UBS CEO Sergio Ermotti will receive a pay package of just over 15 million Swiss francs (US$17 million) for 2024,...
PARIS, France: French Prime Minister Francois Bayrou acknowledged over the weekend that the European Union may have miscalculated by...
NEW YORK, New York - Sellers took charge again on Wall Street Tuesday as the brief rebound that took place on Monday petered out. Stocks...
WASHINGTON, D.C.: The Trump administration has approved a plan to expand a coal mine in Montana and keep it running for 16 more years,...