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Thursday, May 20, 2004

As job magnet, China sits far behind India Via Theworldpaper

Both India and China are top destinations in the trend in offshore job dislocation. But whereas India may easily play host to an American company’s large-scale call center, where receptionists are trained to speak English without an Indian accent, China is more of a destination for American manufacturing jobsMore Indians than Chinese have climbed to the top levels of the American corporate ladder and are more influential in deciding where to outsource the labor-intensive functions of their companies.Consequently, linguistic and cultural disadvantages situate China many years behind India.At the moment, most foreign offices in Beijing and Shanghai are sales offices of American multinational companies. Their budgets are for marketing and sales only and have little room for R&D or production facilities unless US headquarters budget it.The root of the US problem is that most of the gains from re-organization of labor and material resources worldwide are not used to ease the transition of laid-off American workers into new jobs, or evenly spread among ordinary shareholders, but are used to enrich the top executives of multinational companies.

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