Asia has been and remains to be an emergent market, one that shows ample dynamics in its business undertaking. India and China have been two competing giants in the emerging global economies. To start with, China has become a force to reckon with especially given the fact that the choices they have made in the past have continued to define the marketplace with divergent ideologies (Yergin and Stanislaw 140). First, China focused on rapidly growing their economic stance. As such, it was possible to establish central planning processes (Yergin and Stanislaw 140). In the wake of military communism, China had to brace itself for survival, an aspect that is attributed to market forces coupled with balanced government interventions (Yergin and Stanislaw 141). This aided in the creation of a hunger spirit. Second, China laid emphasis on industrial city-states in addition to revitalization of the agricultural sector (Yergin and Stanislaw 141). Third, China has adopted strict control and regulation of prices of vital commodities especially food staff and petroleum products (Yergin and Stanislaw 141). This is also made possible by Chinese government providing incentives in form of benefits and subsidies (Yergin and Stanislaw 141). Fourth, China has worked to keep their labor as cheap as possible (Yergin and Stanislaw 140). Fifth, China has worked fervidly to keep its yuan currency undervalued; thus standing a better position against its rivals.
India on the other part has had its share of success attributed to diverse approaches and strategies. To start with, similar to its Chinese counterpart, the country continues to thrive upon cheap labor (Yergin and Stanislaw 141 +). For example, India continues to be a leading destination for outsourcing due to availability of cheap labor. This makes the assertion American Dream is Indian Reality an imperative reality. Establishment and revitalization of the Bombay Stock Exchange that was started in 1875 makes it possible for the country to stand out as well as woo investors into investing their ebullient finances in the region (Yergin and Stanislaw 158+). Additionally, India made an effort to populate its cities with individuals drawn from rural settings creating a vital backbone to Indian economy especially at that time. The state was given the mandate to control prices of commodities further strengthening the economic stance. Inception of the License Raj for business enterprises gave a huge boost to the country as well as strengthen business stance. Finally, Indian banks were nationalized thus offering stability to both the banks as well as confidence with individual and corporate entities alike.
In China, communism influence the region by providing an opportunity for communities to work together to both survive the communist military position they were experiencing, as well as aiding in creation of a hunger spirit among individuals for work. India on the other hand relied heavily on the fundamentals established during the Mahatma Gandhi’s assertion for a simple life. It is also noted that the societal creation is based on a collective action, as opposed to earlier proclivity towards capitalist acquisitions. For this reason, both India and China had the opportunity to seize firm control of the country's economy. However, China's position was more pronounced given the fact that the country has experienced brutal dictatorship who emphasized communism.
Communism had a challenge to the Chinese community due to its impact with substitutes in the market. Apparently, China is known to be monotonous with production of substitutes and piracy. Communism also impacted the political arena especially in India since it was possible to produce home things instead of importing them thus depriving the finance ministry of vital taxes.
Yergin, Daniel, and Joseph Stanislaw. The Commanding Heights: The Battle for the World Economy. New York: Simon & Schuster. (1998). Print.