Hi, need to submit a 1750 words paper on the topic China’s challenge: Moving form copier to innovator. Cheap labour force in China ensured the operational cost of Chinese firms was minimized thus handing them a competitive advantage in the global front. Conversely, at the time the economy begun to pick up China was miles behind other world economies thus it was its chance to spur massive growth to meet the standards set by other developed nations (Liao, 2009). Chinese firms face innovation challenges that are hampering them from being copiers.
The government was willing to dispose of enough resources to government-run business that dominated the manufacturing industry to ensure the growth plan was in the course to match international powerhouses such as the UK, USA, and Germany. However, through the liberalisation of business operations to include private firms the government left regulation loopholes that led to the current problem of counterfeiting that is rampant in China. It is widely known that China is currently attributed to the home for all the world’s counterfeit goods (Alon, 2003). The authoritarian regime that has ruled China for decades only allowed government run agencies to operate in the primary sectors of the economy thus locking out any form of private practice. The move killed the culture of invention and innovation and the moment business was liberalised the private entities resorted to copying Western ideas mainly in mobile phones for sale in Africa and Middle East (Zhang, 2006).
Shan Zhai is a standard terminology in China that literally means counterfeit products. Initially, when the Shan Zhai industries begun, they specialised in utilising foreign intellectual property to manufacture fake cellular phones for sale in lower tier markets such as South America, Middle East, and Africa. With time, the industries grew to clone digital cameras, game consoles and ultimately to everything including basic consumer products.