The BBC has a very telling report from Brazil, where their correspondent weighs up the benefits to that emerging economy of dealing with China, and the costs. Perhaps somewhat self-evidently, the key to success seems to be providing the Chinese economy with what it needs, versus trying to compete in areas where Chinese companies are clearly going to have competitive edge in cost terms. In this article, the success story is typified by billionaire Eika Batista, whose company owns provides China with iron ore and oil. The flipside of the coin is the experience of Maria Helen Victer, whose company produces bikinis. In the modern world, even a low-cost manufacturing location like Brazil can’t compete with China, and the future for Maria Helena’s company looks bleak. The moral is that China is becoming the new global economic engine, not only dictating consumer prices on our shop shelves, but also deciding where the true growth areas for exporters lie.
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