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To: elmatador who wrote (24752)	10/30/2002 7:41:33 PM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

Hi Elmat, I have 9 lucite tombstones in my office that claim I had helped Ericsson negotiate and establish their first 8 China joint ventures and the hoilding company between the years 1991-1996, as well as helping them to obtain the valuable license to assemble public switches by circumnavigating a Chinese State Council Directive limiting the activity to only the domestic companies and three international firms (Alcatel, Siemens, NEC). I remember how we celebrated when the analog cellular transceiver assembly JV was signed with Nanjing Panda Group. The Chinese partner showed up at the signing ceremony with a surprise, a frame agreement for all of the planned JV factory's output for 5 years, deliverable in 18 months. We happily disgarded our original feasibility study and capitalization plan, and went for the gusto. Remembering fondly. Gush, gush. Chugs, Jay

To: elmatador who wrote (24752)	10/30/2002 7:43:37 PM
From: TobagoJack	Read Replies (2) \| Respond to of 74559

Hi Elmat, <<The Chinese are good at laundry>> and they are also good at scaring the Indians. I eceived this in e-mail attachment from Indian friend ... " Govt alerts IT industry on China threat Fakir Chand in Bangalore It's official! The dragon threat from Mainland China to the Indian IT industry is a writing on the wall for real. The Union communications and information technology ministry has sounded a red-alert to the Indian IT industry of the emerging competition from its counterpart in China that has been ramping up its operations exponentially to give India a run for money. Delivering a keynote address at the US Silicon Valley-based The Indus Entrepreneurs conference in Bangalore on Wednesday, IT ministry secretary Rajeeva Ratna Shah told Indian technology delegates that there was an urgency to move up the value chain to ward of the dragon threat as China continued to take rapid strides in creating world class infrastructure and terra networks for attracting global companies. "The Indian IT industry must move up fast in the domains of VLSI (very large system integration) design, embedded software systems, bio-informatics and bio-computing in the areas of drug discovery and new crop research, besides nano-informatics and nano-computing as China has already entered these domains to outsource their global requirements," Shah stated. Though the Indian software sector has made its global presence felt with its services and solutions, including trouble-shooting, it has a long way to go, as its market share constitutes only 1 percent of the global IT industry. There is an urgent need for a paradigm shift in the focus of the Indian IT industry to create a stamp of its own on its creative outputs, with Intellectual Property Rights," Shah emphasised. Stressing the need to acquire global marketing capabilities through aggressive overseas acquisitions, Shah said the Indian IT industry must raise its bar to remain ahead of China so that it could not only globally compete, but also collaborate with the latter for leveraging its hardware dominance. "During my recent visit to Mainland China and Hong Kong, I was astounded to notice the awesome infrastructure and communication networks they are building for the next leap into the knowledge society. The commitment of the Chinese government and the people is to be seen to be believed as they are going in a ruthless way in clearing all obstacles, be it reforms, divestment, deomolitions and resistance," Shah recalled. Warning the Indian IT industry against complacency and on the sole advantage of its high quality software skills with the monopoly of English-speaking techies, Shah reminded the high-tech delegates that it would not be far when the Chinese would pay back India in the same coin. "During my trip, Chinese officials have briefed me on the mega plans that are underway to teach English to millions of its people along with computer literacy. China is setting up in 25 states human development institutions, with as many centres of excellence to churn out IT geeks by thousands in the next 5-6 years," Shah disclosed. The Chinese are all set to repeat its economic and industrial success stories of the last two decades in the emerging knowledge sector. They are very focused in learning English rapidly to target the global outsourcing market in IT and biotechnology sectors. "The Indian IT industry should move up from the legacy system to knowledge society to keep pace with China and collaborate with its hardware industry to jointly compete in the global market. With core competencies, collaboration and sharing will be key to face the onslaught of global competition. To achieve this benchmark, knowledge investments need to be continuously upgraded. "After the dot.com implosion, global downturn leading to surplus onsite skills, September 11, and the accounting scams, there is a crisis of confidence in the US tech sector and diffidence in decision-making on IT spending. The Indian IT industry should capitalize on the cost-cutting methods of the global companies for increased outsourcing. Small and medium enterprises must develop specific competence in niche technology areas, and large firms should, in turn, outsource work to small enterprises. Shah also warned the industry against plurality of overseas interface by SMEs as it could result in under-cutting, price war, predatory pricing and harming the Indian brand equity. "The SMEs must evolve a method of presenting a consortium for consolidated global interface," Shah added. "