The new key duality in the global economy

by Jörgen Eriksson on January 17, 2014

The world economy is to a large extent driven by the economies of United States and China. The growth of the Chinese economy, particularly in the last 20 years, has been staggering. Until recently, much of this growth came from producing labour-intensive, low value-added goods. Today, however, Chinese competitiveness is no longer confined to lower-end production. The Chinese system is now focused on helping Chinese firms move up the industrial value chain.

Moreover, Chinese policymakers have set goals of assisting the international expansion of Chinese firms in a desire to “go global” and have made efforts to build internationally recognizable brands. Chinese companies have emerged to challenge traditionally dominant international firms. Two such companies in the technology sector are Huawei and Lenovo. In the automobile industry, we have companies such as Geely, who bought the Swedish Volvo cars in 2010.

However China’s competitive advantage is not what it used to be as its economy is maturing and rapid development drives up labour costs. Financial Times reported on this earlier in the week, and in the video below Diana Choyleva, head of macroeconomic research at Lombard Street Research, discusses with Financial Times John Authers how the next rebalancing of global economic power could occur. It is a very interesting discussion.

Rebalancing of power

About Jörgen Eriksson :

Jörgen Eriksson is the founder of Bearing and is the Chairman of the firm since it was created. He has successfully expanded Bearing into covering projects on four continents. He is also Adjunct Professor of Innovation Management at the International University of Monaco and at Universitat Politècnica de Catalunya in Barcelona and he is an active member of the Founders Alliance organisation.

Working with consulting engagements across Bearings practices, he has over the past fifteen years participated in and supervised a large number of client projects, from innovation system development and place development and branding, to merger and acquisition assignments and leading edge research and business development activities for key clients.

His new book, Branding for Hooligans, will be published in 2015. It is about how innovation and branding are key survival factors in our modern times of hyper competitive markets.

Prior to Bearing, he was Director of Europe, Middle East, and Africa for Trema Treasury Management, a technology and consulting services provider, supplying financial software solutions for the global financial industry, Clients included The European Central Bank, Citibank, SEB, South African reserve Bank, Deutsche Bank, Abu Dhabi Investment Authority (ADIA), as well as many other large financial institutions and Fortune 500 companies.

Early in his career Eriksson was educated at the Stockholm School of Economics, where he studied economics, financial economics and philosophy. He then worked in Scandinavian investment banks and also for the Swedish Institute of National Defense Research.

You can contact Jörgen on e-mail jorgen.eriksson@bearing-consulting.com, connect on LinkedIn on http://fr.linkedin.com/pub/jörgen-eriksson/0/38/8a0/ and follow him on twitter on joreri508.

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