Beijing Olympics

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China Is Ready for the '08 Limelight

January 05, 2008 01:38 PM
by findingDulcinea Staff
A tiger economy and the host of this year’s Summer Games, China is on course for a historic twelve months. Beijing’s predicted economic and Olympic ascendancy may offer a lesson for America.

30-Second Summary

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Already the world’s second-largest economy after the United States, China plays an increasingly important role on the world stage. Many analysts believe that 2008 will be the country’s watershed year.

The Olympic Games will be the most visible symbol of China's new status. Al Neuharth, founder of USA Today, predicts that the country will overtake perennial Olympic frontrunners the United States and Russia to win the most gold medals.

But it doesn't stop there. If China maintains its current annual economic growth rate of 11.5 percent, it should surpass Germany as the world’s largest exporter within the next 12 months, according to The Economist.

In 2006, the country took Japan’s spot as the world’s number-two auto manufacturer. And China has for several years been the top producer of copper, aluminum, cement and coal.

The projection that sets off alarm bells among American investors, however, is that China is set to overtake America as the world’s largest economy within the next 10 years.

Investment experts are now drawing inspiration from China’s example as they advise Western companies.

Cambridge University Professor Peter Williamson, an expert in international management, wrote for the Harvard Business Review that companies should explore the expansion strategies of Chinese businesses. “Ask what you can learn from the emerging Chinese dragons about the tricks of cost innovation,” Williamson writes.

Headline Links: Dragon economy spreads its wings

Background: The Beijing Olympics

Opinion & Analysis: China’s boom

Reference Material: China in numbers

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