The emerging countries are more and more increasing. Chindia (term used to describe a tight partnership between China and India) is one of them.
China and India are two emerging Asian giants, alongside Brazil and South Africa. These two countries have an impact not only on manufacturing or services industries but also on some field that we thought protected.
Can Chindia impact the world economy ?
We will see if these neighbouring countries can be partner or if there will of being the first economy in the world will be more important.
Part 1: Will Chindia rule the world soon ?
For a start, both countries are dynamic countries which are rapidly emerging as the two of the most ...view middle of the document...
It will also become the first currency of the world beyond the dollar.
By merging their brain power, desire for success and natural Chindia will steal jobs from the West (as they already doing). Employees who are working in science and health care fields will be more important in Chindia than in the United States.
India and China will represent the third of the humanity, with a growth rates both from 8 to 10 % per year. They will also reached 30 to 40 % of the global economy.
Part 2: Which country will overcome ?
Even if China and India have similarities and want to join their forces and increase their strength in the global economy to be more competitive, they are also considered competitors in a numbers of ways.
In fact, China is a former communist country, a republic (which has taken Hongkong over) whereas India is a democracy with ties to the West.
We can also talk about the infrastructure. There is highways, ports and power sector in China whereas India must step up measures in infrastructures, with an economic reform under way since the 1990s. If India do not invest in infrastructure, many investors as well as goods and service providers, will not be able to function in India effectively.
Moreover, India is still a protectionist country and the foreign direct investment is restricted in many states in India. The foreign investment is about 50 million dollars per year for China against 40 million dollars for India. In addition, both governments are wasting money on unproductive endeavours, instead of reforming the economy to make doing business easier and in turn attracting more investment and increasing growth.
China is an exporting country, 4 times more than India, and has outpaced Germany. China has many trading partners including the Europe, Africa, South America and the United States of course. However, India's economy and enterprises will be globally integrated especially with other advanced countries (Europe, US, Canada, UK, Australia, Singapore, Japan, South Korea) through large scale...