For the last few decades, every product had a tagline that read “made in China.” The Cines ability in the export sector after the era of Chairman Mao was staggering which filled every homestead in the whole world with affordable and readily available bubbleheads, lighters, and hats. However, as the economy of any nation continues to prosper, the cost of labor also follows suit. The double-digit economic growth in the Chinese subcontinent in the last several decades was contributed by its manufacturing and export sectors together with a massive human resource base that worked on rates below the livable wage in the developed world.
The Chinese working-age populace has been on the decline since 2012 which has led to an inflation in the cost of labor. The growth has also stagnated due to reduced demand for the cost-effective Chinese products since the worst recession that hit the global market in 2008. Many people have varied opinions about the Communist Party in China, but they have the strategy that produces results. The Chinese government has invested heavily in science and emerging technological trends. The investments began in 1996 after a development strategy was rolled out by the state council in 1995. Since then, enterprises comprised of high tech industries have emerged in the Chinese market.
The tech giants of the future in China such as Baidu, Alibaba and Tencent were founded in the years between 1998 and 2000. After about ten years, the Chinese discovered that they were not getting any returns on investment after a low innovation. The technology sector in China became popular in the whole world for becoming copycats of the technology of others. The tech experts and gurus called it fast following by taking technological innovations from foreign soil and redistributing it in the Chinese market economy.
The redistribution in the copied technology had been closed off from exportation to foreign markets for fear of lawsuits and litigation against trademark theft under international law. The state council called for the reorganization of the Chinese tech portfolio in 2006 which has reaped numerous benefits. The reorganization strategy stressed the need to allow the free market to thrive which could, in turn, transform into an innovation system that was ‘firms-centered.’ Although the theft of intellectual property and copycat technologies still have a foothold in the Chines market, the strategy put in place by the state council has paid off significantly