It seems obvious that the Internet is an important tool for China as it continues to grow its economy.
The Internet is a way for Chinese companies to improve logistics for its manufacturing companies, to expose products to domestic and international markets, to help gather customers feedback, and to exchange ideas for business and personal growth. In fact, over 1 million Chinese citizens have accounts on LinkedIn, the social media site for business professionals.
With the Internet being such a valuable tool to keep the Chinese growth engine moving forward you might be asking why the Chinese government censors so many websites including Facebook, Twitter and LinkedIn; and, why many Google searches were blocked and why Google has to operate its search engine out of Hong Kong rather than somewhere else in mainland China.
So, what's going on in China regarding network equipment and the Internet and why is it happening?
Perhaps China is scared about internal descent, especially after seeing what is happening in other parts of the world. And, since China has certain provinces that are heavily Muslim, as well as, other potential problem spots like Tibet, maybe the Chinese think that censoring the Internet will offer them some type of protection. If they believe that, they are only delaying the inevitable. The people will find a way to communicate and they will mobilize even under the most difficult of situations. If you are not convinced of that just look at the current situation in Libya.
The Internet also offers China a way to connect with the world via manufacturing. And, with companies like Cisco establishing production of network equipment there, there is an even deeper connection to the Internet. Yet, it is well known that Chinese manufacturers reverse engineer products without regard to patents and counterfeit brand name products of all types and in all industries. The preponderance of counterfeit products even makes it way to the largest companies worldwide. About 1 year ago we were contacted by a Fortune 500 size company that wanted to sell us some of its used network equipment. They only buy equipment through Cisco's distribution system and so they do not purchase equipment, new or used, from the independent resale market. We worked out the deal and they sent us some Cisco cards. When they arrived here our expert Receiving Department and Tech Department compared them with products we knew were good and determined that these were counterfeit. We contacted the company we purchased them from (BTW, you would instantly recognize the company name if I told it to you) and alerted them that we were sending the cards back to them, since we purchased the cards from them, and that they should destroy them since we were certain they were counterfeit. The company was shocked since they were certain they had bought them through the legitimate manufacturers distribution channel. Both of our conclusions were that somehow counterfeits were substituted for real product in the distribution system. Neither of us could prove this but all the evidence sure pointed to that conclusion.
With everyone agreeing that China is manipulating its currency to have a trade advantage vs. other countries it is only a matter of time until this advantage goes away. Basic economics tells us that production will eventually move to the low cost producer. So, with China creating more wealth for its citizens it is only a matter of time until production costs rise and manufacturing is moved to another country or another continent. China will still be a huge consumer market but it's manufacturing production will disappear and it will become a service economy. And then, guess what? It will become the Asian version of the US economy.
Article Source: http://EzineArticles.com/?expert=Hal_Stevens
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