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1.4 Opportunities and challenges faced by China’s manufacturing industry 1.4.1 Opportunities

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With the accelerated modern science and technology revolution, economies of all countries in the world are becoming more and more internationalized. Countries with different social systems and of development levels have gradually been incorporated into a unified global economy. The era of economic globalization has come. As Peter F. Drucker said in his book Managing for the Future: “In order to maintain a leadership position in any developed country, a company—however big or small—increasingly has to obtain and hold its leadership positions in all developed markets worldwide. It has to be capable of researching, designing, developing, engineering and manufacturing in every part of the developed world, while having the means to import and export from any developed country. Firms have to go transnational.”(1993: 27-28) Similarly, when global competition inevitably takes place in China’s domestic market, backward companies also have to conduct global operations and integrate global resources. While globalization brings challenges to Chinese companies, it also brings them opportunities. So, what are the opportunities that globalization of production, capital and trade has brought to Chinese companies?

Global Manufacturing and Secondary Innovation in China

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