Why Is China Winning ?

China’s secret to success.

The population of China is largest in the world, still poverty is lifting up day by day from this country. How’s this possible ? China got freed in the year of 1949 and after 1980, China became the World’s Factory. Every year China is manufacturing and exporting products to the world in cosmic quantities. This was all possible because the country focused on its human capital i.e. it’s population. China asked other countries to invest on it and in turn China invested on its people, who are the backbone of the country.

5 Reasons Why China Is Winning

1.Skilled Labour

• Unskilled labours are easily replaceable and growth prospects are often not good.
• Skilled labour is that kind of labour where our experience becomes our asset and in turn we become an asset for our company or country.
• China’s population is China’s asset.

How China made this possible ?

China focused on national training, practical oriented and skill based training with technical knowledge.

2. Cluster Development

• China created special economic zones or clusters where each company could get everything they need in one area.
• As a result it saved time, money, and travel costs for the companies.
• China focused on its infrastructure which boosted the connectivity and thus helped in growth of new opportunities.

3. Migration Control

• China controls migration using a system , known as HUKOU SYSTEM. This system prevents migration of people from their native area to another area. It is maintained by using a domestic passport.
• In short whichever area your family is from , if you leave that area and shift elsewhere , then you will lose some free benefits.
• This system encourages rural people to setup local business.
• Stimulating jobs, growth, entrepreneurship, income in rural China through e-commerce.

4. Debt Trap

• The Chinese government works closely with the businesses.
• China gives loan to other countries in terms of money and in return the government ensures that only chinese companies get contract for any work in that country and on top of it the other country also pays interest to China for the loan.
• Government ensures that Chinese Industries keeps growing. China takes lead in FORTUNE GLOBAL 500 as 129 companies among 500 are Chinese.
• China creates infrastructure to support its industries. For example, China have the fastest train which runs at a speed of 600 Km/h.

5. Land

• A country’s most powerful resource is it’s LAND. The power of a country is mostly decided by the geographical land that is acquired by that country.
• Land provides a shelter for the huge population of the country as well as provides space for large industries to develop. Crisis of land for industrial purpose is a problem for many countries as there is no scope for expansion.
• Quality of land also promotes to a good growth in the agricultural sector and boosting the economy of the country.
• The Tours and Travel sector also gets affected by the land. The more is the land , more is the chance of new tourist places and heritage sites.

So What can We Do to Beat CHINA and be Successful ?

1. Focusing on education and knowledge more than degrees.

* Rather than focusing on degrees and marks, the focus should be given more on education and knowledge of the population. Nowadays everything is available at our fingertips. One can start learning coding and programming in few months and can start earning a good amount by designing websites and building apps for other companies.

2. Need to have local jobs in every states to promote skill based opportunities.

* Local Jobs must be created at every state so that people from rural areas don’t need to migrate to large cities. Promoting Local jobs at rural areas will also boost towards the country’s economy.

3. Ranking system for industries and small businesses.

* Government must create a ranking system to rank Industries and small scale businesses to promote a healthy competition among them as this will help in their growth and thus will be generation new employment opportunities for the people from different areas of the country.

4. Vocal for local but with having a global outlook.

* The people of the country should support local businesses and startups in order for the development of the country. As a result they will not have to be dependent on products and services from other countries. This should be done by following certain principles so that a global outlook is maintained.

No success or achievement in material terms is worthwhile unless it serves the needs or interests of the country and its people and is achieved by fair and honest means. — J.R.D. Tata