> uvj at vsnl.com wrote:
>
>> 55% of Chinese exports are done by the foreign funded enterprises. Why the US and the EU don't encourage the development of manufacturing industry in Central and South America in a similar fashion? Higher wage costs relative to China?
> That, yes, but for low-wage workers, Chinese are extremely skilled. Nothing like Communism to deliver a first-rate labor force to capital!
Indian business has made two major demands from Indian government: a) "Flexible" labour laws: Indian labour laws are very rigid unlike China , b) Economies of large scale production: China has set up very large plants which allow Chinese business to enjoy economies of scale. Indian manufacturing is relatively fragmented due to concerns over growth of monopolies and protection provided to small and medium sized businesses.
Ulhas