Why US companies are bootlicking Chinese authorities and lessons for India?

In this episode we talked about how US companies are licking the leg of Chinese authorities in order to survive and thrive in China.

Reasons behind their inclination towards China

China offers much lesser corporate taxes than most of the other developing nations including India, brazil, Mexico and other South American countries. The other major reason is its ease of doing business and infrastructure which cut logistics cost of these companies.

Additionally, China being a communist regime does not back their employees from being exploited by these western companies which adds as an advantage for them. The most debated 996 culture still exist in china.

The business environment in china is very much linked with "good relations with the government" without which it is impossible to operate in Chinese land.

We also discussed about how India should take advantage of these western companies shift from china to other developing countries. India should work on simplifying tax systems and also reduce the tax rates so that foreign companies are lurked towards India. We understand the need of "Aatmanirbhar bharat" but we also need the FDI in order to grow.

We wrapped up this episode by talking about the china's method of development and how it is flawed.

Musk's tweet https://twitter.com/elonmusk/status/1410413958805270533?s=20

Apt reply: https://twitter.com/gladstein/status/1410424227946139648?s=20

NY Times article on Apple: https://www.nytimes.com/2021/05/17/technology/apple-china-censorship-data.html

Bloomberg article on Tesla: https://www.bloomberg.com/news/features/2021-01-13/china-loves-elon-musk-and-tesla-tsla-how-long-will-that-last