Blog DONG XI
By frog China - January 18, 2009
Over the last few months, I've been increasingly asked about how business feels in China in light of the global economic meltdown. In particular, could it present an opportunity for Chinese companies, as much of the rest of world struggles?
Many have noted that China is somewhat more insulated, although obviously still heavily impacted by the crisis. GDP growth is forecasted to slow significantly in 2009 (from 12% to 8%) and FDI has been dropping steadily month by month. The former indicator still represents significant growth however, and the latter is a reflection of general external cautiousness more than any domestic Chinese issue.
Much of China's opportunity for success in a global recession is in markets that are less hit by the recession, which means other emerging markets (e.g., Africa) represent a real opportunity. However, these markets are generally not the targets of innovation, more an outlet for cheap products that China is already producing.
Consumer electronics is an industry in which innovations abound and is one in which Chinese companies contributions have been noted (e.g., Lenovo, Huawei). Did this year's consumer electronics showcase -- CES 2009 in Las Vegas -- shed any light on Chinese consumer electronics innovation?
