Integrated auto manufacturing facility near Chennai, India*

From the Indian perspective, the recent downtown in China’s business friendliness to foreign companies is good news. Some companies are beginning to question whether they have too many eggs in the China basket.

Right next door to China is another vibrant economy, with relatively stronger domestic spending, a younger population, and–within just 15 years–what is expected to become the world’s largest population, larger than China’s.

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Google’s threat to exit the Chinese market, which I discussed here yesterday in the context of human rights and Google’s corporate interests, has two other important dimensions.

First, there is growing and universal concern in the business community about unfair Chinese business practices (this was previously limited to the manufacturing sector).

Second, we should all be deeply concerned by the massive cyber espionage program China has been developing and deploying, which is aimed at learning inside information on foreign companies and governments.

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