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China should draw experience f


Friday, 4 June 2010
by Bluenesslan
Bluenesslan
Bluenesslan

China can\'t stay on factory floor forever

Editor\'s Note:

Outsourcing supposedly flattens the world and creates a level playing field. China\'s role as global factory has propped up its rapid growth in the past decades. Should it now copy the Indian model of vigorously developing service outsourcing, and transform itself into a global service center? Global Times (GT) reporter Chen Chenchen interviewed Yao Zhanqi (Yao), associate researcher at the Institute of Finance and Trade Economics, the Chinese Academy of Social Sciences rappelz rupees, and Alastair James Watts (Watts), China managing director of Antal International, a global executive recruitment company, to find out.

GT: In 2009, several global pharmaceutical giants moved their research and development (R&D) departments into China. Can we interpret this as a signal of China\'s gradual transformation from a factory into a global service center rappelz rupees?

Yao: This example can be interpreted in two ways. On the one hand, China is transforming from a global manufacturing center that\'s mostly at the lower end of the production chain into a ser-vice center that is beginning to take part in higher-end activities like R&D. The change indicates one possible direction of China\'s future economic growth.

But on the other hand, the factors that attracted these companies include low R&D costs, a larger pool of human test participants and easier clinical world of warcraft power leveling drug trials. Low costs are still China\'s primary strength in attracting more outsourced business. China lacks a key competency. In the process of developing service outsourcing, China must stress the upgrading of the service industrial chain.

Watts: I don\'t interpret this as world of warcraft power leveling a signal of China\'s transformation into a global service center. The pharmaceutical industry is unique. Due to differences in ethnic groups, genetic studies, early drug development and clinical tests are all different. With a population of 1.3 billion, China is not a ignorable market.

Previously, these leading pharmaceutical companies didn\'t transfer part of their core technical functions to China, because they believed that the Chinese were merely good at copying others, and the protection of intellectual property rights was poor. They hesitated and

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China should draw experience f