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Thursday, June 24, 2004

Dalian has become the Bangalore of China by Thomas Friedman via NYT

Dalian, a port city in northeastern China is not just impressive for a Chinese city. With its wide boulevards, beautiful green spaces and nexus of universities, technical colleges and a massive software park, Dalian would stand out in Silicon Valley.Dalian symbolizes how much China's most modern cities — and there are still plenty of miserable, backward ones — are rapidly grabbing business as knowledge centers, not just manufacturing hubs. No, Toto, they are not just making tennis shoes here. Try G.E., Microsoft, Dell, SAP, H.P., Sony and Accenture, which are setting up back-room operations here for Asian companies and software R.& D. centers.Because of Japan's long colonization of this area in the first half of the 20th century, Dalian has a pool of people who know Japanese. And because of its proximity to Japan and its abundance of Internet bandwidth, and parks and golf courses that attract knowledge workers, Dalian has become the Bangalore of China — the center for outsourcing by Japanese businesses that want to tap China's low-cost brainpower. Japanese companies can hire three Chinese software engineers for the price of one in Japan, and still have change to buy a room full of call-center operators. Indian cities and Banglaore symbolise the fact,"The rule of the market economy is that if somewhere has the richest human resources and the cheapest labor, of course the enterprises and the businesses will naturally go there,"

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