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Showing posts with the label China Economy

Africa the new war land

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In today’s world, Asian countries are most talked about for many reasons, sometimes it is about Iran Sanctions, sometimes it’s growing Influence of China in south china sea, and sometimes it is about Russia & Ukraine dispute. It is because most of the dynamic activities happen in these states and Asian countries contribute a lot in various fields such as technology, space exploration and environment conservation etc. It is highly anticipated that a power shift will happen from the European and American nations to Asian and African Nations. To have a share from the upcoming Pie, all the nations are trying to make their ground to dominate in Asian and African Continent. As India and China are most promising nations and are growing like anything, all power centers are diverging and aligning themselves to the new flow of Power. You don’t believe it !!! Let me Explain... US has imposed Sanctions on Iran (no export/import allowed from Iran) and exemptions were given to 8 ...

Chinese Bubble about to burst

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China has dominated the Asia's economy for more than 3 decades and it was only possible due to their economic reforms towards the mass production and favorable conditions towards exports. Now in today's world China is expending their geopolitical powers by initiating an ambitious project of Maritime Silk road project (aka One Belt One Road - OBOR). Under OBOR, China is extending debt (loans) to Asian and European nations for infrastructure development project. These Infrastructure projects are the win win for both the parties, as billions of dollars pumped in to an economic weaker nations and China gains influence over these nations by creating debt traps. India has objected and boycotted the OBOR, as India is cautious enough towards these debt trap, as Sri Lanka has fallen into. Now if the Projects under OBOR are completed and successful, then China would get enormous global advantages. China would have much stronger say in UN and could control many of the Internation...

Rice Size Microchip

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Bloomberg article dated October 4, 2018, 2:30 PM GMT+5:30, has created a sensation in the world over security services, as reported ‘a rice size microchip for surveillance was found in China make Supermicro’s motherboards’ and almost all nations in the world procure electronic items manufactured in China. It has first come in to the notice in 2015, when Amazon.com Inc. was evaluating ‘Elemental Technologies’ (Based in Portland-Ore). Elemental Technology fit nicely with Amazon’s government businesses, such as the highly secure cloud that Amazon Web Services (AWS) was building for the CIA, hence Amazon consider it as a potential acquisition. During Third party evaluation, the testers found a tiny microchip, not much bigger than a grain of rice, that wasn’t part of the boards’ original design. The chips had been inserted at factories run by manufacturing subcontractors in China. With this an another level of war by supply chain attack has initiated. It is also noticed that a state-b...

India’s Future Fortune

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India could be the next blue eyed nation for electronic industry all over the world and this can happen over a decade. You must be thinking, Why is it so? It has many aspects to understand, let’s take them one by one. Today’s China is the biggest manufacturing market in electronic industry, all over the world, and also known as the world’s factory, but this was not true in Twentieth century. In 1980s India’s Electronic export was more than that of China. Both India & China were almost at the same platform but China takeoff from there and never look back. In 1980s Industries in US and Europe were scaling up and looking to develop facilities around the world to reduce their production cost. As in Europe and US, the labour rates were high as 12-15$ per hour however, in Africa, India & China the labour charges were much lower.  Also the establishment in Africa was much riskier than that of in India or China. As India was a young nation that time, the leadership was not v...