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>but China and now this feel like counterexamples. You don't need to make 30% of something to sell it Chinese retail stores, so I don't think the two are compa
by drzaiusapelord 9y ago
>but China and now this feel like counterexamples.
You don't need to make 30% of something to sell it Chinese retail stores, so I don't think the two are comparable. India also has strict employment laws where once a company reaches a trivial size, it is illegal to fire anyone. The firing is then done by via government petition and you better have an airtight case to do so. So a lot of companies don't scale past x employees to avoid all the added regulation that would hurt them. That's a brake on their economy.
China is almost the opposite of this. They have so few rules and regulations that western product manufacturing moved there to enjoy the low prices. This had a trickle down effect locally. All those jobs and cheap stuff meant that they could ride the coattails of these behemoth Western economies looking for the lowest cost of manufacture. Then the Chinese slowly turned that momentum into their own manufacturing with their own brands and added token protectionism at best to keep the Westerners at arm length, but not enough to chase them away like Brazil and India do with their strict protectionism.
These two countries couldn't be more different. China has a $11T GDP while India has merely has $2T, even with similar populaions. China has literally 5x the economy India has due to market liberalization, low regulations, and embracing the world economy.