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China's New Year : The season of Opportunity
Insight

Trade exchange in between different cultures in addition to countries has extended yielded rich returns for many who recognize the particular potential.

In fact, mainly because far back while the 1st hundred years BC, merchants and caravans followed the particular Silk Road - the overland buy and sell route from n . China to typically the Girl - and even brought precious silk bedding, tea and some other resources from China to the rest of the world. Not really only did connecting different countries in addition to cultures prove profitable, but new in addition to greater products in addition to ideas flowed among the countries.
The particular Silk Road regarding the 21st millennium is technology driven. This trade change, built on fiber-optic cable, sprang from the Telecommunications Act of 1996. Today, it is typically the R&D departments associated with companies from typically the United States along with other countries that enjoy the resources and possibility found in China.

Today's China, typically the fastest growing region on the planet, offers typically the:

o Biggest engineering talent pool
o Biggest emerging marketplace
o World's number one manufacturing sector

Strengthening ties, country-to-country, people-to-people, has demonstrated time and again that outstanding achievements, that in any other case would have been not possible, can come to fruition.
Long Circle tendencies you to definitely explore the particular opportunities that are present in China right now, especially if your company focus is embedded systems technologies regarding software and hardware.

With our worldwide reach, we may see the significance of China, and we all have become significantly throughout the past several years in this particular critical market. Right now, we certainly have $5 billion dollars in revenues plus 12, 000 employees.

GE 2005 Annual Report:
Letter to be able to Stakeholders

Biggest Engineering Resource Pool

The particular last few years have convinced Bundle of money 100 companies plus start-ups alike that China, home with the fastest growing overall economy in the world, is key in order to achieving their ideal plans, as effectively as the enterprise objectives of their R&D departments. GENERAL ELECTRIC, Microsoft, Motorola, Intel, Nokia, Oracle, and even SAP are only a few involving the multinational firms with R&D procedures in China, and even for some crucial business drivers:

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

Wages are lower offshore, there's zero question regarding it, but the experience typically the workforce has have got to be in item research and development, not IT. Using China's deep pool of engineering expertise, especially R&D stuck technology engineers, organizations can expand and even strengthen their R&D resources.

For example, the Microsoft Study (MSR) Asia laboratory has engineers working on a broad range of innovative technologies - coming from spoken-language technologies like automatic speech acknowledgement to face diagnosis and tracking, deal with modeling and acknowledgement, cartoon generation, image and video retrieval for MSN, and even Xbox camera-based video game interfaces. According to Forbes, Microsoft's expense in all China-related R&D activities is around $100 million PEOPLE dollars annually. Additionally , with currently a lot more than 800 employees within China, Microsoft will be predicted to increase the number of substantially more than the next 3 to five yrs.

Biggest engineering expertise pool; most design graduates each year
Engineering Graduates China India Us
Supply: Duke University* 352, 000 112, 000 137, 500
Supply: Unknown ** six-hundred, 000 350, 1000 70, 1000

*Source: A study on sale since December, 2005 by Duke University (and also widely offered in the media, including The Christian Research Monitor) citing the number of executive graduates in every single country yearly.

5. Note: Statistics extensively quoted, from Good fortune Magazine to Senator Ted Kennedy's speeches and toasts. However according in order to the Wall Street Journal online, these figures are usually misleading with no one particular can track along a concrete and even reliable original source.

Biggest Emerging Industry

How could any organization that wants to be successful within the global arena ignore China today?
China is the world's many populous country -- 1, 313, 973, 713 (2006 est. ) - plus organizations like typically the Finnish mobile telecommunications giant Nokia assume China to become a key expansion driver for their global operations. Nokia provides equipment, solutions and services for network operators in addition to corporations' mobile cell phones and network products.

According to Infoworld's online Web internet site:

"China has 500 million mobile users and its 3G (third generation) networks are not yet changed on, providing a new future avenue for further growth. " According to a study done by Norson (Hong Kong) Details Technology, "... following three years regarding 3G availability, over 84 million Oriental will use 3-G services. "

Consequently, construction is underway on Nokia's new and expanded Tiongkok headquarters, scheduled to be able to open in 3 years ago, that will sponsor over 1500 involving Nokia's R&D, sales and marketing operations, pre-production, strategies, sourcing and developing operations.
During China's President Hu Jintao's recent visit to be able to the us, he joined a dinner from the home associated with Microsoft's Bill Entrance and required extending the relationship between the United States in addition to China.

"Today, several cargo ships will be very busy bridging the Gulf of mexico, filled with the wealthy fruit of each of our strong trade binds and friendship involving our two people, " Hu mentioned. "I am certain that together with the even further deepening of China's reform and opening up, we are really going to see an even much wider prospect for the particular economic cooperation plus trade between Tiongkok and Washington Condition and China and even the United Says all together. " Supply: Reuters

According in order to the US-China Company Council:

o China's economy grew 12. 2 % within the first quarter of 2006.
o Typically the government's new focus on balanced growth as well as attempt to shift from an investment- in addition to export-driven economy in order to a consumption-driven a single will mean more policies to advertise consumption.
o GROSS DOMESTIC PRODUCT (purchasing power parity): $8. 158 trillion (2005 est. )
o GDP instructions per capita: getting power parity - $6, 200 (2005 est. )
to GDP - true growth rate: nine. 2% (official data) (2005 est. )
o GDP : composition by field:

Agriculture: 14. 4%
Industry and design: 53. 1%
Companies: 32. 5% (2005 est. ) Supply: [www.uschina.org]

World's #1 Manufacturing Industry

China is "the earth's factory" and yields $60 billion worthy of of consumer electric goods a 12 months. The "Made inside China" designs are found everywhere.

When Tiongkok became a participant of the World Buy and sell Organization (WTO), that agreed to stick to WTO standards and even regulations, along with the rest of the WTO countries. And this opened up one involving the world's biggest economies towards the sleep of the entire world. Forward-thinking organizations do not hesitate to be able to capitalize within the unmatched opportunity.

For example , GENERAL ELECTRIC has long regarded China as a possible important piece within the industry’s strategic plan. In accordance 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 ground. We have 12, 000 employees. And even I think at the end of the day, China is well-known towards being a new great global competitor and following the regulations. And that is definitely essential to us and it's a method that will we can turn out to be successful as well. "

Today, businesses doing business within China find duty incentives, excellent to infrastructure, government help, a political atmosphere that encourages foreign business, rapid monetary growth, a deep pool of anatomist talent and school graduates, and bettering legal, banking in addition to financial systems.

The far east Strategy: Choose typically the Right Road in order to China

You will discover generally three paths a good organization's R&D section can follow to be able to successfully force entry directly into China. Take time to consider the best way for your organization, especially if your concentrate is within R&D inlayed technology.

� Individual, Independent Project

Beginning by outsourcing some sort of single, independent project is an excellent solution to start in the path in order to China. Typically, these projects involve software and hardware advancement, testing, maintenance, or even product enhancement. This specific transaction type outsourced workers is turn-key, uncomplicated, and has a quick ramp up moment. An R&D division can:

o Catch an opportunity within a short time framework.
o Boost bandwidth to satisfy short-term need.
o Outsource plainly defined short-term assignments.

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

� Partner Plan

A long term, relationship-based service program is another excellent method to power China's technology resources. A dedicated group within the Cina outsourcing vendor's R&D department can end up being created, trained, organised, and managed solely for your inserted systems R&D technological innovation projects. Clients benefit from lower wages, whilst benefiting from the team educated on the Client's business values and tradition, providing a genuine business level positioning. A China R&D department can:

um Offload non-core capabilities.
o Fill inside of needed skills.
um Increase engineering performance.
o Increase return on R&D.

� Offshore R&D Center

Corporations find these people benefit most through an one-of-a-kind incubation center that is a good extension of their own R&D department backside home. Creating a R&D facility right from the start in addition to introducing guidelines provides the optimal way to meet your company's strategic goals.
Your company takes advantage involving China's low priced staff, manufacturing capacity, in addition to emerging markets in addition to there are no intermediaries or 1 / 3 party costs.

A China R&D Middle can:

o Supply confidence and safety to handle private data and intelligent property inhouse overseas.
o check here according to your own company's unique requirements and values.
um Increase talent maintenance by giving attractive culture along with a sense of belonging.
o Share services with other functions in the company.
o Embark on extended term innovation-driven analysis that does not necessarily usually generate quick profits.
o Gain access to the China labour market directly.

Turn to China

Throughout history, new goods, new ideas, and new opportunities have come about by simply crossing borders. The particular global exchange regarding trade, expertise, in addition to capabilities means interesting ideas and enhancements which benefit everyone.

China today is a country with limitless opportunity. However, particular connections and relationships are essential in order to any successful business in China. Might your company want to expand into Cina, but is unsure about potential roadblocks such as regulations, recruiting, and create? The best vendor could smooth your approach.

In addition to be able to entry into China, any vendor's technological innovation expertise must certainly not be overlooked. For example , does the probable vendor focus in embedded technology? Do they have experience with manufacturers, first equipment manufacturers (OEMs), original design companies (ODMs), independent computer software vendors (ISVs), technique integrators (SI), in addition to value added services providers (VASPs) which rely on inlayed hardware and software program technologies?

Intellectual home is a concern everywhere, but specially in a new environment. Exactly what are a prospective vendor's procedures for protecting your intellectual property?

Remember, if searching for the particular best approach to influence China's vast assets and opportunities, this pays to help make certain you could have the best vendor or if you guide.

A journey of a 1, 000 miles
Begins using a single stage.
Lao-tzu (604 BC - 531 BC)
Chinese philosopher

Long Circle provides outsourced engineering services to companies whose products and services depend on embedded computer software and hardware technological innovation. Long Circle plus the Long Round China Center regarding Excellence enables Ough. S. companies to lessen costs, increase architectural bandwidth, and broaden market reach by giving low-risk, strategic usage of China's engineering ability, manufacturing industry, and even emerging markets. For more information about Long Circle, pay a visit to [http://www.longcircle.com]

Lengthy Circle, Inc.

464 Common St., Collection 158

Belmont, MUM 02478

U. S i9000. A

Office: plus1. 617. 395. 4338

Customer Care (toll free):

+1. 866. 529. 7725

Very long Circle (Shanghai) Engineering Center of Superiority, Limited

1990 Lengthy Yang Road, Package 5A

Long Dalam Business Building

Pudong, Shanghai 201204

Cina

Shanghai office: +86. 21. 5134. 8988

The whole contents of this document will be copyrighted by Long Circle, all rights reserved. This document may be freely distributed for non-profit purposes, and the particular whole parts should be distributed with each other. Redistribution on this document for profit without express prior permission is not granted.
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