These are the conclusions of a pair of surveys from McKinsey Co. Here are some more findings:
- China, by far, presents the most competition, nearly twice as much as from India, followed by Southeast Asia, Eastern Europe, Latin America, the Middle East, Russia and Brazil.
- China gets a boost from the following conditions in order of importance: low cost production, government support, lax regulation and privileged access to non-Chinese markets.
- Considering all the markets where respondent companies operate, 41 percent found that China-based competitors were weaker than most competitors from other countries and 32 percent found thast they were comparable.
- Most companies have not changed their strategies much to deal with Chinese competition.
- Internal barriers to dealing with China include a lack of managerial talent, insufficient capital, lack of understanding of foreign laws and regulation, cultural barriers and concerns about shoddy quality of Chinese goods.
- Rising labor costs are driving up production costs in China.