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Feb 19, 2008

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The last thing China should do is get into outsourcing it frankly does not good for their economy except create employement it will only increase forex and increase inflation . They have the money to go for foreign aquisitions and take over big software firms and establish a strong software industry and should not try to get into outsourcing They should avoid this outsourcing. It will lead to a disaster.They should go for acquisitions and develop a huge software industry in their country.They should get out of this mindset of producing cheap goods producing cheap services so on so forth .It will not help their economy

As pointed out in the article, one of the biggest advantages of India is their ability in English and quickly assuming a western culture. China however is gradually opening up and soon it could be a big competition in the outsourcing industry.

Having lived and worked in and around Chinese culture what is being left out here is the symbolism of the action taken. Being arrested is "losing face" for ones entire family and usually comes after several warnings and public announcements that certain actions should not be taking place, thus this big of a crack down and actual arrests shows how much of an issue this is with the gov't. Scamming, trolling and even attempts to extort over the internet are big problems in China so my immediate assumption is that those arrested are a from that ilk, now if they could only go over to the African email cafe's.

Interesting...

If they have somehow learned how to curb SPAM on a national scale, I might very well move there myself!

Unfortunately, we aren't privy to what the arrests were all about. China has committed themselves at least on paper to doing good business. So, if they have taken scammers and pornographers off of the internet for us, I am quite grateful. After all, the signal to noise ratio on the internet is not very good. Too many abuse SEOs to get their snake oil out to the masses.

I think we should think about what precedent China has set here: we should not tolerate the abuse! I surely wish America would clean up it's side of the internet!

Restricting information will always degrade commerce and increase uncertainty, increase costs and reduce efficiency. As an extreme example -- save the China Telecom fiber link to Sinuiju -- North Korea has an intranet, but limited information inflow from the outside world. Even the limited internet there uses political loyalty throttles to determine who sees what. As a result, they spend a lot developing their own inefficient and substandard knowledge industries in their protected market, exemplified by Pyongyang Informatics.

In China, however, the rule of the central government is not as overbearing, and most of the people had developed innovative ways to get around Beijing's dictates for many years. Even Chairman Mao was forced to accept many of Fujian's supply chains and local ways. Information will continue to be throttled and examples will be made of the unlucky few to scare the public into line. Local portals, such as Sina look promising, yet other innovations -- such as hardware -- will mimic foreign technology.

To some degree perhaps, but as a whole I don't think so. What it will do is channel strategic business alliances to connected families, and well networked corporations. Rather than broad spectrum integration between entrepreneur and business need; insider knowledge of existing problems will be fed to China, by China, in a more ‘tiered’ or filtered manor. In China, you work for the company, and the company works for China. If you look close you can see this model re-staged for an emerging economic power. I believe the Chinese are more comfortable with this seemingly restrictive mechanism than we are. What they can't achieve by shotguning the market with solutions only sharpens the resourcefulness of the elite. Someday soon, when our markets fully integrate, we may find that what can be solved cheap, or even free, will replace the cornerstone of our service-based economy.

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Robert,

You have an excellent point, and I am not arguing that China is already a major, major economic superpower when it comes to manufacturing products, including technology hardware and (some) software. However, neither the USSR or (thank the Lord) Nazi Germany ever provided knowledge-services to Western business, for example IT support and development, accounting or HR services etc. Withouth developing a strong affiliation and comprehension of the Western business culture will potentially hold them back if they are not allowed first hand experiences of working with Western employees. Restricting the Internet access outside of the Great Wall will get rid of any of these "Flat World" scenarios we have all loved reading about...

PF

You know you would think it would. But everyone said that of the USSR back in the days when such practices were common, and they said that during the period of Nazi Germany (not that I am comparing China to either of these two in anything other than this specific practice) ... and yet both of these societies had highly advanced research programs.

Whenever a society attempts to control things we often assume this is a bad thing. And - from a Western perspective it is.

From the perspective that China will be obviously implementing a lot of controls - that requires a lot of technology. That requires a lot of brains working very long hours. Just because a society is controlling does not mean that it is not technologically advanced, in fact, very often the exact opposite is true.

I hate to say that - but it is true.

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