Entrepreneurial Emigration
The word is that China is now the world’s second largest economy, overtaking Japan this year and on track to surpass the United States in another fifteen or so.
China's economy expanded 11.1 percent in the first half of 2010, from a year earlier, and is likely to log growth of more than 9 percent for the whole year, according to Yi.
China has averaged more than 9.5 percent growth annually since it embarked on market reforms in 1978.
The United States embarked on its own set of market reforms in 1981, but these have lately been reversed. Can you tell?
Chinese growth is a good thing. What worries me is the cumulative impact of US capital flight from punitive domestic policies for friendlier climes.
California continues its trend-setting role, this time spearheading the decline of US leadership in high-tech entrepreneurship. For example, Sequoia Capital, the venerable Silicon Valley venture firm that backed such iconic high-tech firms as Apple, Yahoo, and PayPal, is focusing elsewhere. The firm now has three offices in China, three more in India, another in Israel, and a single legacy office in the US. Another bellwether fund, New Enterprise Associates, is joining the parade. Dow Jones VentureWire Lifescience reports:
New Enterprise Associates is increasing how much of its main fund will go to investments in China and India, even as it considers raising a local currency vehicle in China.
The latest $2.5 billion New Enterprise Associates venture and growth capital investment fund will be doubling its allocation for investments in India and China, Jiang Xiaodong, NEA managing director and head of China operations, said in an interview.
Jiang said the firm will be committing approximately 25%, or $625 million, of the fund to investments in the two countries, compared to about $300 million of its previous fund. NEA has offices in Beijing and Shanghai in China, and in Bangalore and Mumbai in India.
Your computer and iPhone may be “designed by Apple in California,” but they sure aren’t built here anymore. One wonders how much longer until the latest must-have gizmos are designed in Shanghai or Mumbai for local consumers and those Americans lucky enough to have government jobs.
- Comment (2)
- · Quote
- · UnfollowFollow (1)
Comments :
Re: Entrepreneurial Emigration
Putting that double-digit Chinese growth in perspective: check out the latest from the LA Times:
Enjoy your Recovery Summer.
May '10
Re: Entrepreneurial Emigration
I think China will not overtake the US in a real sense. They have that whole Demographic time bomb going on.