Change in the Chinese Economy Essay Example | Topics and Well Written Essays - 1250 words

Change in the Chinese Economy - Essay Example The recent changes prohibit a third party to offer products in China for sale without the due permission of the patent holder. The people associated with the third party should not assume that they can go ahead and sell their products in China. Before this law was introduced, the companies' in the country were allowed to sell products manufactured in the other countries. This paper will examine the changes in the Chinese Economy over the past 6-7 years. A comprehensive analysis of the position of Chinese Economy will also be provided in this paper. The Chinese economy has witnessed tremendous boom because of the rise of 3 third party logistics in the country. There are several 3PL companies in China that are making huge profits operating in 3PL. Foreign 3PL companies have also started entering China to capture the share of profit and the same is boosting the economy of China for the last 6-7 years. The important features of 3PL industry will be discussed in the following part of the paper. Outsourcing enables companies to source in China without having their own warehouse and staff in China at very reasonable prices. Outsourcing gives access to better human resources, which are suitable for a given country in a given situation. For instance, even the people working in a BPO in the US would easily charge at least double the amount when compared to the people working in various Asian countries and this is exactly why the US companies have opened up various BPOs in Asian countries. Less Upfront Cost: Outsourcing enables a company to access superior technology without paying hefty amounts upfront. Though, this is not exactly the case with 3PL companies. But still, logistics outsourcing is preferred by countless companies worldwide and it has many advantages that we will account for in the upcoming pages. Innovation: Outsourcing is also preferred because it is an innovative concept and it is capable of innovation. Various people employed, bring in a huge pool of talent and the same talent produces innovation. Innovation is the need of the hour and no company can sustain without innovating something that will become popular with the customers. 3PL has been a very pivotal factor in the growth of the Chinese Economy other factors will be discussed in the following parts of the paper. Expansion of the Chinese Economy over the Last 6 Years The Chinese economy has become a force to reckon with over the last 5-6 years, it is only behind the US economy when measure in terms of Purchasing Power Parity. The economy is the third largest in the world if it is measured using the exchange-rate system. China holds the record for being the fastest growing economy over the last 5-6 years. The country has eradicated poverty completely but there is another side of this aspect, the country is witnessing inequalities in income of individuals. China's population is arguably its biggest asset; the manpower and cheap labor are the two most instrumental aspects that have made the Chinese economy what it is today. "China's economy is huge and expanding rapidly. In the last 30 years the rate of Chinese economic growth has been almost miraculous, averaging 8% growth in Gross Domestic Product (GDP) per annum. The economy has grown more than 10