Why China is Going to Rule the World Market and Germany Will Sit in the Auditorium

Download or read book Why China is Going to Rule the World Market and Germany Will Sit in the Auditorium written by Eva Liebelt and published by . This book was released on 2009 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt: The thesis will argue that Germany supports China's rise by not protecting its intellectual property (IP). This already has an impact on the Germany economy, which faces a dramatic financial loss each year. Furthermore it will destroy Germany's reputation as the 'land of ideas'. While it seems that the only threat at the moment is piracy of IP, the future threat may be that China has enough knowledge from foreign companies and is able to recognise its own creativity. I will argue that the non-existence of intercultural competence of German managers is the main cause for this problem. I will therefore show how different the Chinese from the German culture is by explaining concepts like guanxi which have a huge impact on business success in the PRC. These differences and difficulties will be explained by looking at Sino-German cooperation in an international Joint Venture in China. Several surveys will show that German firms are unlikely to name cultural differences as a problem when doing business in the PRC in contrast to other nations. The thesis will review research that has been done in the field of cross-cutural studies and will concentrate on Hofstede's approach to explain cultural differences. After examining the current situation of intellectual property rights and the rule of law in China, a case study about the Maglev-train in Shanghai, which was built by two famous German companies, will provide a practical example of how carelessly German companies transfer know-how to China. I will then examine some possible strategies for successful China business. This thesis will also focus on China's future and will investigate the scenario of a possible breakdown and what this would mean for Germany before concluding by looking at the future of Sino-German cooperation.