“No major enterprise or financial can avoid doing business with China, if not directly, then through myriad hidden connections.”Edward Tse
This definitely shows that China has been positioned strategically to excel in all areas of human endeavours. That is, nobody can do without China these days, because China has a framework called The ‘China Strategy’. China is a country that can no longer be ignored or toyed with. Indications of China’s new identity are everywhere. Infact, the Chinese are now very visible in all countries as we speak.
Hassnain Javed stated that “Over the past two decades, entrepreneurship in China has grown at an exponential rate. It is bringing forth disruptive changes not only to China but increasingly also to the rest of the world. In 2000, total revenues earned by Chinese state-owned industrial enterprises and those in the non-state owned sector Chinese private enterprises were roughly the same at about 4 trillion Yuan each. By 2013, while total revenues at state-owned companies has raised just over six fold, revenues in the non-state sector had risen by more than 18 times. Whilst profit in the same period showed an even more incredible difference, with state-owned ones increasing nearly 23 times.”
It is very important to note that China is now a force to reckon with in the world because of the resilience and energy of its entrepreneurs, and the determination and the flexibility of its government. The support the Chinese government is giving to entrepreneurs cannot be over-emphasized. Most especially in terms of infrastructural facilities, finance, support services, Export support and what have you. How I wish our leaders can replicate same in Nigeria.
Two major forces made China to stand out from other countries and they are; ‘Scale and intensity’. These two factors have given China its unique power and position today. No other country has these two factors. China’s scale refers to its population which is over 1.3 billion people.
On the other hand, China’s intensity simply refers to the aggressive entrepreneurial energy and productivity in every part of China. The aggressiveness has now in virtually every nooks and crannies of the world.
It has been predicted that shortly, China’s economy will replace the United States as the world’s largest.
Hassnain Javed in his frank assessment of China posited that “China’s entrepreneurial spirit runs deeper than just in business. It demonstrates itself in the government and the desires of ordinary people. Premier Li Keqianq called for ‘mass entrepreneurship and innovation’ and made it the leading agenda of China’s national economic strategy.”
The Chinese also display striking amount of openness in their current national character most especially in their willingness to embrace new ideas and technologies.
There are four main drivers that are propelling China’s economy and Edward Tse listed them as; Open China, Competitive China, Official China and One World. Infact, China has colonized the world technically because you will find the footprints of the Chinese in every nook and crannies of the world. Because China has embraced ‘One World Strategy’.
The aforementioned to a large extent has contributed immensely to the development of China’s economy.
Goods that are conceived, designed and developed in China are now marketed to the rest of the world. Chinese companies now increasingly go abroad to find new sources of technology and business skills, particularly for innovation, brand building, and access to international finance.
When yours truly commenced Pencil production in 2016, 99% of the raw materials and equipments were imported from China because they are not readily available in Nigeria. Not only that, I still have strong relationship with China because of importation of basic raw materials and components. When will Nigeria attain that level?
I am just trying to embark on aggressive backward integration so that I can conserve funds. Because that is the way to go at the moment and there is need for our entrepreneurs to emulate their Chinese counterparts so that they can also get to the promise land on time.
What we lose to China for importation most especially with respect to materials, components and equipments can better be imagined than described.
Wikipedia posited that China is the largest trading nation in the world and plays a vital role in international trade, and has increasingly engaged in trade organizations and treaties in recent years. China also has free trade agreements with several nations, including China- Australia Free Trade Agreement, China-South Korea Free Trade Agreement, ASEAN-China Free Trade Area, Switzerland, Nigeria and Pakistan amongst others. All the various treaties have really assisted entrepreneurs and they used it as a launch pad to various countries throughout the world. This simply presupposes that the Chinese government is very responsive and responsible. Not only that, Chinese government is very proactive and futuristic.
To the extent that the economy of China has recently initiated Asian Infrastructure Investment Bank in 2015. Just to make life very easy for their numerous entrepreneurs.
Though China has been criticized by western media for unfair trade practices, including artificial currency devaluation, intellectual property theft, protectionism, and local favoritism due to one-party oligopoly by the Chinese Communist Party with Socialism with Chinese characteristics.
China’s unequal transportation system combined with important differences in the availability of natural and human resources and industrial infrastructure has produced significant variations in the regional economies of China.
It has been predicted that in 2024, China will become the world’s largest economy, according to the global information provider HIS Inc.
Another key edge that China is using effectively is the financial institutions, most of China’s financial institutions are state owned as well as governed by the state and 98% of banking assets are also state owned whilst the chief instruments of financial and fiscal control are the People’s Bank of China (PBC) and the Ministry of Finance, both under the authority of the State Council. PBC replaced Central Bank of China in 1950 and took over private banks.
Other financial institutions that are crucial, include the China Development Bank (CDB), which funds economic development and directs foreign investment, the Agriculture Bank of China (ABC), takes care of the agricultural sector, the China Construction Bank (CCB) which is responsible for capitalizing a portion of overall investment and for providing capital funds for certain industrial and construction enterprises and the Industrial and Commercial Bank of China (ICBC), which conducts ordinary commercial transactions and acts as a savings bank for the public.
In China, any enterprise or individuals can go to the banks to obtain loans outside the state plan, it is based on this premise that you find Chinese in every nooks and crannies of the world and their presence is usually greatly felt. A lot of goods imported to Nigeria these days are now from China.
Infact China has now positioned herself strategically to the extent that the big conglomerate now produce in China and export to the other parts of the world.
It is imperative for our government to borrow a leaf from the Chinese government and make life easier for entrepreneurs in Nigeria. This will make our dear country to witness accelerated growth like China. Governance is not rocket science, what is needed is purposeful or pragmatic leadership.
So keep the dream alive! Success shall be yours!
Never Give Up!!
See You at the TOP!!!
It is well!
Muideen Adebayo Ibrahim is an entrepreneur: the Founder, LIBRA CONSULTING; a Management Consultancy Firm and BAMIB RESOURCES (a Premium Pencil Company) based in Lagos and can be reached via muideenibrahim2004@yahoo.com or 08037221517 (sms) only please!
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