Why China is gaining an edge in emerging markets while the West tries to ‘impose hegemony on a shoestring’
- Chinese companies have proven successful at adapting their operations to align with the development goals of emerging economies, experts say
- By comparison, Western nations have been more focused on dissuading developing countries from cooperating with China on security grounds
Western firms should learn from China’s localisation success if they are to match the country’s influence in developing markets, said researchers and analysts, amid growing competition between the world’s economic superpowers.
Although success has been a “mixed-bag” in some markets, Chinese companies, particularly in the tech sector, have proven successful at adapting their operations to align with the development goals of emerging economies, according to two research papers published this year by the Carnegie Endowment for International Peace.
By comparison, Western nations have been more focused on dissuading developing countries from cooperating with China on security grounds, rather than providing meaningful, competitive alternatives, the authors said during a forum about their research earlier this month.
The findings come in a year that has seen a renewed push from Western countries to counter China’s influence in emerging markets.
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China exports 350km/h bullet trains to Indonesia for Jakarta-Bandung high-speed railway
In June, the Group of 7 unveiled the Partnership for Global Infrastructure and Investment – a US$600 billion infrastructure plan widely regarded as an attempt to counter China’s Belt and Road Initiative.