Notes

China's New Year -- 12 months of Opportunity
Insight

Trade exchange between different cultures and even countries has extended yielded rich advantages for individuals who recognize the potential.

All things considered, mainly because far back while the 1st century BC, merchants and even caravans followed typically the Silk Road instructions the overland business route from north China to the Western World - in addition to brought precious silks, tea and additional resources from China in order to the rest regarding the world. Not really only did linking different countries and cultures prove lucrative, but new and greater products and even ideas flowed between the countries.
The particular Silk Road associated with the 21st hundred years is technology driven. This trade change, built on fiber-optic cable, sprang through the Telecommunications Take action of 1996. Today, it is the particular R&D departments of companies from typically the United States as well as other countries that enjoy the resources and prospect found in The far east.

Today's China, the particular fastest growing nation on the planet, offers the particular:

o Biggest engineering talent pool
o Biggest emerging market
o World's number one manufacturing business

Strengthening ties, country-to-country, people-to-people, has proven again and again that amazing achievements, that or else might have been impossible, can come to fruition.
Long Circle tendencies one to explore the particular opportunities that are present in China today, especially if your organization focus is inserted systems technologies for software and equipment.

With our international reach, we may see the need for China, and we all have become significantly in the past 5 years in this critical market. Today, we now have $5 billion dollars in revenues and 12, 000 personnel.

GE 2005 Gross annual Report:
Letter in order to Stakeholders

Biggest Architectural Resource Pool

Typically the last few decades have convinced Bundle of money 100 companies in addition to start-ups alike that China, home from the fastest growing economic climate in the globe, is key in order to achieving their ideal plans, as nicely as the enterprise objectives of their own R&D departments. GE, Microsoft, Motorola, Intel, Nokia, Oracle, and SAP are simply a few of the multinational businesses with R&D operations in China, in addition to for some crucial business drivers:

o Lower costs
to Lower wages
um Expanded productivity
um Reduced time-to-market
u Strengthened R&D inserted technology engineering sources

Wages are reduced offshore, there's zero question about this, yet the experience the workforce has need to be in merchandise research and growth, not IT. Along with China's deep pool of engineering talent, especially R&D stuck technology engineers, firms can expand plus strengthen their R&D resources.

For example of this, the Microsoft Study (MSR) Asia labrador has engineers working hard on a broad range of innovative technologies - coming from spoken-language technologies for example automatic speech acknowledgement to face detection and tracking, deal with modeling and reputation, cartoon generation, picture and video access for MSN, plus Xbox camera-based video game interfaces. According in order to Forbes, Microsoft's purchase in all China-related R&D activities is around $100 million ALL OF US dollars annually. Additionally , with currently greater than 800 employees inside China, Microsoft will be predicted to expand that number substantially more than the next about three to five yrs.

Biggest engineering skill pool; most anatomist graduates each year
Engineering Graduates Tiongkok India United States
Origin: Duke University* 352, 000 112, 500 137, 1000
Origin: Unknown ** six hundred, 000 350, 1000 70, 1000

*Source: A study on sale since December, 2005 by simply Duke University (and also widely cited in the mass media, like the Christian Technology Monitor) citing typically the number of anatomist graduates in each and every country yearly.

3. Note: Statistics broadly quoted, from Lot of money Magazine to Senator Ted Kennedy's toasts. However according to be able to the Wall Street Journal online, these figures are really misleading with no single can track straight down a concrete and even reliable original source.

Biggest Emerging Marketplace

How can any corporation that wants in order to be successful inside the global arena ignore China today?
Customer the world's almost all populous country : 1, 313, 973, 713 (2006 reste. ) - and organizations like typically the Finnish mobile telecoms giant Nokia assume China to always be a key progress driver for their very own global operations. Htc provides equipment, alternatives and services intended for network operators plus corporations' mobile mobile phones and network gear.

According to Infoworld's online Web web-site:

"China has 500 million mobile users and its 3G (third generation) networks usually are not yet switched on, providing a new future avenue regarding further growth. inches According to research done by Norson (Hong Kong) Details Technology, "... right after three years associated with 3G availability, greater than 84 million Chinese will use 3G services. "

As a result, construction is underway on Nokia's fresh and expanded Tiongkok headquarters, scheduled to open in 3 years ago, that will number over 1500 involving Nokia's R&D, prospective operations, pre-production, strategies, sourcing and production operations.
During China's President Hu Jintao's recent visit to be able to america, he joined a dinner from the home regarding Microsoft's Bill Entrances and called for increasing the relationship between the United States and China.

"Today, numerous cargo ships will be very busy bridging the Pacific Ocean, packed with the abundant fruit of each of our strong trade binds and friendship in between our two people, " Hu explained. "I am positive that with the even more deepening of China's reform and starting up, we are generally going to discover an even much wider prospect for typically the economic cooperation in addition to trade between Cina and Washington State and China and even the United Claims overall. " Origin: Reuters news agency

According to be able to the US-China Enterprise Council:

o China's economy grew ten. 2 % in the first quarter regarding 2006.
o The government's new focus on balanced growth and its attempt to switch from an investment- in addition to export-driven economy to a consumption-driven one particular will mean even more policies to promote consumption.
o GROSS DOMESTIC PRODUCT (purchasing power parity): $8. 158 trillion (2005 est. )
o GDP - per capita: acquiring power parity : $6, 200 (2005 est. )
o GDP - actual growth rate: 9. 2% (official data) (2005 est. )
o GDP -- composition by market:

Agriculture: 14. 4%
Industry and building: 53. 1%
Services: 32. 5% (2005 est. ) Origin: [www.uschina.org]

World's #1 Manufacturing Market

Customer "the tour's factory" and produces $60 billion worth of consumer electronic digital goods a yr. The "Made within China" designs are found out everywhere.

When Additional info became a fellow member of the World Trade Organization (WTO), it agreed to abide by WTO standards and even regulations, along together with the remaining portion of the WTO countries. And this opened up one associated with the world's largest economies for the relax of the entire world. Forward-thinking organizations did not hesitate to be able to capitalize around the unrivaled opportunity.

For example , GE has long considered China as being an essential piece in the provider's strategic plan. Relating to Jeff Immelt., "We have already been there for fifteen - 20 many years, so we know how to do business. We have been on the floor. We have 10, 000 employees. In addition to I think at the end of the day, China is trending towards being some sort of great global competition and pursuing the guidelines. And that will be important to us and it's the best way that will we can get successful as well. "

Today, firms doing business within China find duty incentives, excellent to infrastructure, government support, a political atmosphere that encourages foreign business, rapid financial growth, a deep pool of executive talent and college graduates, and bettering legal, banking and financial systems.

China Strategy: Choose the particular Right Road to China

You will discover generally three paths an organization's R&D section can follow to be able to successfully gain entry into China. Remember to think about the best course for your business, particularly when your concentrate is within R&D embedded technology.

� Individual, Independent Project

Beginning by outsourcing some sort of single, independent job is an excellent approach to start in the path to be able to China. Typically, these types of projects involve computer software and hardware advancement, testing, maintenance, or product enhancement. This specific transaction type outsourcing techniques is turn-key, simple, and has the quick increase moment. An R&D division can:

o Get an opportunity inside a short time shape.
o Boost band width to fulfill short-term demand.
o Outsource clearly defined short-term jobs.

Companies going this route find cost savings through transaction-type outsourcing and capitalize on short-term cost savings.

� Partner Plan

A long name, relationship-based service program is one other excellent method to power China's technology resources. A dedicated crew within the Tiongkok outsourcing vendor's R&D department can turn out to be created, trained, published, and managed exclusively for your inlayed systems R&D technological innovation projects. Clients benefit from lower wages, when benefiting from a team educated upon the Client's business values and tradition, providing a true business level positioning. A China R&D department can:

to Offload non-core features.
o Fill inside of needed get more info .
o Increase engineering efficiency.
o Increase go back on R&D.

� Offshore R&D Core

Many businesses find these people benefit most through an one-of-a-kind incubation center which is an extension of their very own R&D department backside home. Building a R&D facility right from the start and introducing guidelines supplies the optimal means to fix meet your provider's strategic goals.
Your business takes advantage of China's low priced staff, manufacturing capacity, and even emerging markets and even there are no intermediaries or last party costs.

A China R&D Center can:

o Supply confidence and protection to handle private data and mental property inhouse overseas.
o Train ability according to your own company's unique specifications and values.
to Increase talent preservation by giving attractive traditions and a sense regarding belonging.
o Reveal services with various other functions of the business.
o Engage in long term innovation-driven study that does not necessarily usually generate immediate profits.
o Gain access to the China labor market directly.

Turn to China

During history, new goods, new ideas, and new opportunities have come about by crossing borders. The particular global exchange involving trade, expertise, and even capabilities means fascinating ideas and enhancements which benefit everybody.

China today is really a country with unrestricted opportunity. However, individual connections and associations are essential to any successful company in China. Would your company love to expand into Tiongkok, but is unsure about potential hurdles such as polices, recruiting, and installation? The proper vendor can easily smooth your approach.

In addition in order to entry into Tiongkok, a potential vendor's technological innovation expertise must certainly not be overlooked. For instance , does the potential vendor focus about embedded technology? Perform they have encounter with manufacturers, initial equipment manufacturers (OEMs), original design manufacturers (ODMs), independent application vendors (ISVs), method integrators (SI), in addition to value added services providers (VASPs) who else rely on embedded hardware and software technologies?

Intellectual house is a worry everywhere, but especially in a new atmosphere. Exactly what a potential vendor's procedures regarding protecting your perceptive property?

Remember, any time searching for typically the best path to power China's vast sources and opportunities, it pays to help make certain you have typically the best vendor or if you guide.

A voyage of a 1, 000 mls
Begins along with a single stage.
Lao-tzu (604 BC - 531 BC)
Chinese philosopher

Very long Circle provides outsourced engineering services to companies whose goods and services depend on embedded software program and hardware technology. Long Circle in addition to the Long Group of friends China Center regarding Excellence enables U. S. companies to lower costs, increase engineering bandwidth, and increase market reach by providing low-risk, strategic use of China's engineering ability, manufacturing industry, in addition to emerging markets. For more information about Long Circle, check out [http://www.longcircle.com]

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