Over the past few years, Chinese manufacturing base has grown by leaps and bounds.While the media tends to highlight the inflow of FDI and the concurrent economic benefits, it has so far failed to report the actual situation on the ground.
Chinese Government has traditionally forced banks to loan upstarts to get in manufacturing. Given the scope for corruption and high saving rates of the Chinese, this has resulted in huge non performing assests in the economy. So much so, it is alleged that Chinese banking system is on the verge of a massive collapse-though ably funded by the government by means of doles. Somehow it is standing on a support structure. While reforms are underway- there is much to be desired there.
The growth of the telecom is expected- I believe that they have much clearer policies about Telecom. However, the growth in telecom and consequently Internet is thwarted by huge amount of censorship- something that India is relatively immune from. Marxists would do anything to promote the cult of Mao and this means his ideas of censorship too. People have a notional concept of democracy and any attempt to circumvent the existing laws is severly dealt with.
In this background, Chinese company Huawei has been able to bag orders from BSNL. Everytime I switch on the crappy plasticky modem, I realise the gravity of the situation. Most often BSNL’s services just conk off. Is it to do with the kind of the telecom equipment we have in place? I know not of the technical aspect, though I strongly believe it is such.
There was an interesting article in Business World which decided to explore the origins of Huawei. One thing was clear. The promoters are close to the ruling elite in China- which means that most of their working capital has been underwritten by the Chinese financial institutions. At the same time, Huawei hasn’t been able to make it’s mark up in the telecom equipment. I believe that they are under the surveillance of the intelligence agencies; I had reported this earlier.
Why am I inimical to Chinese and this post. Two main reasons. First and foremost. The existing idea to award the tender to the one with the lowest cost needs to be reviewed. If and when there is better equipment, why hasn’t this been given order for? Their claims that Huawei’s equipment was upto Dot’s standards doesnt hold water at all. And then, a huge order to the Chinese manufacturers has killed the initiative to innovate in our own country.
Secondly and more pertinently, my anitpathy to the marxists and the way they undermine the nationalism. It is true that they are corpse worshippers ( Lenin hasn’t been buried yet). What’s worse is that their ideologies are fossilised and hold no relevance to present circumstances. No wonder they remain confined to narrow constituencies- there too they have made a mess of the present system.
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