Notes

China's New Year - 12 months of Opportunity
Insight

Trade exchange among different cultures and countries has long yielded rich advantages for many who recognize the potential.

In fact, simply because far back since the 1st centuries BC, merchants plus caravans followed typically the Silk Road instructions the overland industry route from n . China to the particular Lady - in addition to brought precious silks, tea and other resources from China to be able to the rest of the world. Not only did backlinking different countries and even cultures prove profitable, but new and greater products and ideas flowed involving the countries.
Typically the Silk Road regarding the 21st millennium is technology motivated. This trade trade, built on fiber-optic cable, sprang through the Telecommunications Act of 1996. Today, it is the particular R&D departments of companies from the particular United States as well as other countries that gain benefit resources and possibility found in Cina.

Today's China, the particular fastest growing region in the world, offers the particular:

o Biggest engineering talent swimming pool
um Biggest emerging industry
o World's number one manufacturing sector

Strengthening ties, country-to-country, people-to-people, has demonstrated repeatedly that impressive achievements, that in any other case could have been impossible, comes to fruition.
Long Circle urges that you explore the opportunities that exist in China nowadays, especially if your company focus is embedded systems technologies regarding software and hardware.

With our international reach, we could see the need for China, and many of us have become significantly in the past several years in this specific critical market. Today, we now have $5 million in revenues and even 12, 000 workers.

GE 2005 Annual Report:
Letter to Stakeholders

Biggest Anatomist Resource Pool

The last few decades have convinced Fortune 100 companies plus start-ups alike that will China, home from the fastest growing overall economy in the planet, is key to be able to achieving their ideal plans, as properly as the company objectives of their R&D departments. GENERAL ELECTRIC, Microsoft, Motorola, Intel, Nokia, Oracle, plus SAP are only a few of the multinational companies with R&D procedures in China, and for some important business drivers:

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

Wages are reduced offshore, there's not any question about this, although the experience the workforce has have got to be in item research and advancement, not IT. Using China's deep swimming pool of engineering expertise, especially R&D inlayed technology engineers, companies can expand in addition to strengthen their R&D resources.

For illustration, the Microsoft Research (MSR) Asia lab has engineers operating on an extensive range of innovative technologies - from spoken-language technologies like automatic speech reputation to face diagnosis and tracking, encounter modeling and identification, cartoon generation, graphic and video collection for MSN, in addition to Xbox camera-based sport interfaces. According to Forbes, Microsoft's investment decision in all China-related R&D activities is around $100 million US dollars annually. Additionally , with currently a lot more than 800 employees in China, Microsoft will be predicted to increase that number substantially over the next about three to five decades.

Biggest engineering talent pool; most anatomist graduates each yr
Engineering Graduates The far east India Us
Origin: Duke University* 352, 000 112, 000 137, 1000
Source: Unknown ** 600, 000 350, 500 70, 000

*Source: A study released in December, 2005 by simply Duke University (and also widely estimated in the mass media, like the Christian Research Monitor) citing the particular number of anatomist graduates in each and every country yearly.

5. Note: Statistics commonly quoted, from Lot of money Magazine to Senator Ted Kennedy's speeches and toasts. However according to be able to the Wsj on-line, these figures are misleading with out one particular can track straight down a concrete and reliable original resource.

Biggest Emerging Market

How do any business that wants to be successful in the global arena ignore China today?
China is the world's the majority of populous country instructions 1, 313, 973, 713 (2006 reste. ) - and organizations like typically the Finnish mobile telecommunications giant Nokia assume China to be a key progress driver for their global operations. Htc provides equipment, options and services intended for network operators in addition to corporations' mobile telephones and network tools.

According to Infoworld's online Web web-site:

"China has 400 million mobile customers and its 3G (third generation) networks are not yet turned on, providing a future avenue regarding further growth. inch According to a study done by Norson (Hong Kong) Info Technology, "... following three years of 3G availability, over 84 million Chinese language will use 3G services. "

Therefore, construction is underway on Nokia's new and expanded Tiongkok headquarters, scheduled to be able to open in the year of 2007, that will number over 1500 of Nokia's R&D, sales and marketing operations, pre-production, strategies, sourcing and production operations.
During China's President Hu Jintao's recent visit to america, he went to a dinner at the home of Microsoft's Bill Gateways and called for extending the relationship involving the United States and even China.

"Today, a lot of cargo ships usually are very busy bridging the Gulf of mexico, filled with the rich fruit of our own strong trade binds and friendship between our two peoples, " Hu stated. "I am positive that together with the even further deepening of China's reform and starting up, we are going to observe an even broader prospect for the particular economic cooperation and trade between Cina and Washington State and China and the United Claims all together. " Resource: Reuters news agency

According in order to the US-China Business Council:

o China's economy grew 10. 2 % within the first quarter involving 2006.
o Typically the government's new concentrate on balanced growth as well as its attempt to switch from your investment- in addition to export-driven economy to be able to a consumption-driven one will mean even more policies to market consumption.
o GROSS DOMESTIC PRODUCT (purchasing power parity): $8. 158 trillion (2005 est. )
o GDP -- per capita: purchasing power parity - $6, 200 (2005 est. )
to GDP - genuine growth rate: nine. 2% (official data) (2005 est. )
o GDP : composition by industry:

Agriculture: 14. 4%
Industry and construction: 53. 1%
Solutions: 32. 5% (2005 est. ) Resource: [www.uschina.org]

Tour's #1 Manufacturing Business

Customer "the world's factory" and makes $60 billion worthy of of consumer electronic goods a year. The "Made throughout China" designers are present everywhere.

When Additional info became a fellow member of the planet Trade Organization (WTO), it agreed to abide by WTO standards in addition to regulations, along with the remaining WTO countries. And this opened up up one associated with the world's largest economies to the relaxation of the planet. Forward-thinking organizations performed not hesitate to be able to capitalize for the unprecedented opportunity.

For example , GENERAL ELECTRIC has long deemed China as a possible vital piece in the industry’s strategic plan. Based to Jeff Immelt., "We have recently been there for fifteen - 20 yrs, so we learn how to do business. We have been on the ground. We have 12, 000 employees. Plus I think at the end of the day, China is trending towards being a new great global competitor and following the regulations. And that is definitely crucial to us in addition to it's the best way that we can turn out to be successful as fine. "

Today, firms doing business inside China find tax incentives, excellent to infrastructure, government support, a political atmosphere that encourages international business, rapid financial growth, a full pool of executive talent and school graduates, and increasing legal, banking in addition to financial systems.

China Strategy: Choose the particular Right Road in order to China

You will find fundamentally three paths a good organization's R&D section can follow in order to successfully gain entry into China. Take the time to consider the best way for your organization, especially if your emphasis is at R&D stuck technology.

� Solitary, Independent Project

Starting by outsourcing a single, independent task is an superb way to start on the path to China. Typically, these kinds of projects involve application and hardware enhancement, testing, maintenance, or product enhancement. This specific transaction type freelancing is turn-key, uncomplicated, and has a quick increase time. An R&D section can:

o Capture an opportunity inside a short time body.
o Boost band width to fulfill short-term demand.
o Outsource obviously defined short-term assignments.

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

� Partner System

A long phrase, relationship-based utility program is one more excellent solution to leveraging China's technology assets. A dedicated crew within the Tiongkok outsourcing vendor's R&D department can get created, trained, hosted, and managed specifically for your inserted systems R&D technology projects. Clients take full advantage of lower wages, whilst benefiting from the team educated upon the Client's business values and lifestyle, providing a true business level positioning. A China R&D department can:

o Offload non-core features.
o Fill in needed skills.
um Increase engineering productivity.
o Increase come back on R&D.

� Offshore R&D Center

Corporations find these people benefit most coming from an one-of-a-kind incubation center that is certainly an extension of their own R&D department backside home. Creating a R&D facility right from the start and introducing best practices offers the optimal solution to meet your company's strategic goals.
Your organization takes advantage involving China's low priced labor force, manufacturing capacity, plus emerging markets and there are no intermediaries or third party costs.

A new China R&D Meeting place can:

o Offer confidence and security to handle sensitive data and intelligent property inhouse ocean going.
o Train ability according to your current company's unique specifications and values.
um Increase talent preservation by giving attractive lifestyle along with a sense of belonging.
o Discuss services with some other functions in the business.
o Take part in extended term innovation-driven analysis that does certainly not usually generate immediate profits.
o Entry the China labor market directly.

Turn to China

Throughout history, new products, new ideas, and new opportunities have got come about by simply crossing borders. The global exchange regarding trade, expertise, in addition to capabilities means exciting ideas and improvements which benefit everyone.

China today is really a country with unrestricted opportunity. However, private connections and human relationships are essential to be able to any successful organization in China. Might your company prefer to expand into Tiongkok, but is not sure about potential roadblocks such as regulations, recruiting, and set up? The best vendor can easily smooth your way.

In addition in order to entry into The far east, any vendor's technologies expertise must not be overlooked. For instance , does the potential vendor focus on embedded technology? Perform they have experience with manufacturers, initial equipment manufacturers (OEMs), original design companies (ODMs), independent software vendors (ISVs), system integrators (SI), and even value added support providers (VASPs) who rely on inserted hardware and software program technologies?

Intellectual property is a concern everywhere, but specially in a new environment. Precisely what are a potential vendor's procedures intended for protecting your perceptive property?

Remember, whenever searching for the best approach to influence China's vast sources and opportunities, that pays to help make certain you could have the particular best vendor otherwise you guide.

A journey of a thousands of mls
Begins using a single phase.
Lao-tzu (604 BC - 531 BC)
Chinese philosopher

Long Circle provides outsourced engineering services to be able to companies whose items and services depend on embedded application and hardware technological innovation. Long Circle and even the Long Group China Center associated with Excellence enables Oughout. S. companies to minimize costs, increase executive bandwidth, and broaden market reach by giving low-risk, strategic usage of China's engineering expertise, manufacturing industry, plus emerging markets. For more information about Long Circle, check out [http://www.longcircle.com]

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