Investment Landscapes: China′s great leap forward (2017/2019)

What′s the more attractive location: USA or China? That depends. Here are some observations that show how China has moved along in recent years. See this outcome visualized by “information landscapes (my recent article “Into The Great Wide Open“ under # https://www.dhirubhai.net/pulse/informations-landschaften-great-wide-open-volker-schweisfurth/ 

When we talk about “data landscapes“, appropriate parameters  offer some chartable information ( x/y/z axes) about the market, investment climate and export strength of the countries. We can move like in a military sandbox.. GDPppp(in $,"Chance" as xy)/ Business regulation level ("Risk" ranking as z) are used as axes for a 3D modelling program (CAD) to generate the following visualizations: illustrations, animations, 3D printed models and input for AR/VR environments ( Also see Illu 2 of  #https://www.dhirubhai.net/pulse/data-visualizations-jellies-ocean-volker-schweisfurth/ and “Data presentation: Present arms!“ #https://www.dhirubhai.net/pulse/data-presentation-present-arms-volker-schweisfurth/  which offers some ideas on #immersive learning environments. As a resulting 3D printed datasculpture, see #https://www.meliesart.de/range-of-models/some-datasculptures/decision-support-terrain/ . 

When comparing these parameters for China and USA until 2018 (Illu 1 below), we see similar surface sizes (corresponding to a similar GDPppp ($) sizes) AND similar export structures (surfaces; as proof of similar production complexity oft he two countries); but also a substantial difference in heights ( = Doing business ranking). The USA had a far better Doing Business* Ranking ( 7) than China (90; see China′s height in red) in 2015: 

From 2006 until 2017, the chinese business regulations were not very competitive, compared with the amazing chinese home market and the sourcing opportunities there. Things changed remarkably during the last three years in favour of China: Whereas from 2006 to 2017 the “Ease of Doing Business Rank“ of the country oscillated between 96 and 78- thus meeting countries like Russia, Turkey,Italy, Morocco, El Salvador and Saudi Arabia-, it now plays in a completely different league; with Japan,Spain, France etc. See why:  Let′s have a look at the ten components of the “Ease of Doing Business Rank“ in China over the last fourteen years- from different angles (Illu 2 A-C). “Starting a business“ has been very difficult until 2017 (Box 1), whereas “Enforcing contracts“ has been easier (Box2). Also “Paying taxes“ always needed much effort in China (Box3). 

The “great leap forward“ by tackling burdensome regulation: China improved its “Ease of Doing Business Rank“ from 78 (Report 2018) to 31 (Report 2020) by major improvements in the first two investment phases, “ Starting a business“ and “Dealing with Construction permits“ (see Box 4). “The Chinese government also created working groups targeting each of the Doing Business indicators.“ (cited from DB Report 2020 p.10). “Starting a business China made starting a business easier by fully integrating the obtention of company seals into the one-stop shop- In Dealing with construction permits China made obtaining building permits easier by simplifying the requirements for low-risk construction projects and by reducing the time to get water and drainage connections. China also made construction safer by imposing stricter  and verifying architectural plans as well as differentiated building quality supervision schemes. This reform applies to both Beijing and Shanghai.“ (see DB Report 2020 p.94). 

For Illu 2, please also see # https://www.dhirubhai.net/pulse/comparing-national-economies-rest-us-volker-schweisfurth/ .

You don′t have to lean on “flatland“ visualization to grasp your colleagues′or clients′attention. There exist additional opportunities. See Illu 3 and two landscapes of competitiveness.

On the left, a 3D printed sort of mountain (data physicalization) that exhibits part of China′s business regulation ranking history. It has been coated with active paper to query the datasculpture acoustically-as ingredient of a patent. Having a datasculpture in your hands and handing it round, helps a lot in communication- and you have an additionell input channel (haptics). On the right, see a screenshot of a VR clip on my datasculptures (see #www.melies.art.de). You can flyover the data sceneries under HTC Vive glasses; see the video under  # https://www.youtube.com/watch?v=9DSYXegs21E   My colleage Thomas Panhorst- as an experienced game developer ( #https://www.thomaspanhorst.de/) made the stuff PC- ready.

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Remarks: Data sources for text and illustrations have been a) the World Bank studies on “Doing Business“-They provide objective measures of business regulations for local firms in 190 economies and their country data, as well as b)OEC: The Observatory of Economic Complexity“, see https://oec.world/en ,a remarkable online resource for international trade data and economic complexity indicators available through interactive visualizations of countries and products.

A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm. I have been using the RANK data of the ?Ease of Doing Business tables (not the more complex scores). At #https://www.doingbusiness.org/en/doingbusiness one can dowload all historical data of the amazing World Bank project with all scoring data.