The Threat of Russia Becoming A Superpower

For the last 30 years there has only been one superpower, the United States of America. Right now, Russia is the second strongest and most influential power in the world, it has more resources and potential than its predecessor The Soviet Union and is on a fast trend to becoming a super power once again. Geographically speaking, Russia is the largest country which is rich in oil and gas with a GDP of 3.7 trillion, this puts it Russia firmly sixth in the world for GDP. Russia supplies Europe with a third of its oil and gas, this alone makes Russia a superpower in Europe. With Vladimir Putin as its president there is a good chance Russia becomes a super power, if it isn’t already considered one.

For Russia to become a super power, China’s influence has to be mitigated. Russia is doing this by supporting India and helping them rise to dominance in Asia. India has always been an ally of Russia going back to its USSR days. Russia and India’s political influence in the world right now increases the power of Russia and decreases that of China’s. With more countries falling out with USA and supporting Russia, it is maintaining its lead in the race of becoming a super power.

if Russia becomes a super power there will be changes of allegiances worldwide. Many countries that are neutral or side with the US will ally themselves with Russia; this is to avoid fall out with the dominant superpower and suffer its wrath. Countries that broke away from USSR will become the most loyal allies to Russia. They would do this to avoid Russia attacking them and causing major changes in their governments. With more countries in its grasp this would offer new resources and markets for Russian products, thus increasing Russia’s wealth.

Major changes and alliances will occur in Asia. A Russia and India alliance will shape politics in Asia which undermines the influence of China. Japan and Australia are currently allies of the US, and these two nations may be the first to change alliances. In time more Asian countries may change sides, pincering China of its support and influence, leading to a possible end in communism which may shape China’s politics as they aim to compete with Russia for influence and power across Asia. Russia under Putin has reformed itself as a capitalist country. In Western Europe, Germany, and Poland could change allegiances due to their proximity with Russia. England, France, Italy, and Canada would continue to support USA but NATO would suffer major losses. Remaining NATO members would draw closer and drive support from each other but they would not offer a significant threat as they do currently (which is what stops Russia from complete dominance).

Currently, while widely criticized, Trump may be making a smart strategic move by allying with Russia and ensuring the two nations prosper together instead of apart (a cold war scenario).

Sectors Where China Is Passing The Rest Of The World In

Over the last 6 months the President of China Xi has put so many new leaders in certain positions to
regulate certain sectors of China. The focus is to take the Chinese economy and social activities to the new level of success. Now, with its rapidly expanding market and low production cost, every industry in China is showing the stagnation signs. There are certain sectors that are going to show faster growth in 2018, leaving rest of the world behind.

Here are the top current booming industries that will take Chinese Economy to whole new level:

Automotive

Certain regulations passed in the auto sector, requiring manufacturers to increase their sales of
electric and hybrid vehicles. For the next several years, the main focus is on the manufacturing of electric vehicles or low fuel consumption vehicles. It is also good according to environment perspectives. The main aim here is to dominate the global electric-vehicle market till 2030.

Pharmaceutical

The changes made in China Food and Drug Administration regulatory led to the launching of more than
35 modernized drugs in 2017. But now, more than 300 drugs added to National Reimbursement Drug list. It means, more drugs in the market, more online healthcare services, and the accessibility to patients will increase too. On the top of it, more funding will be there from billions of dollars of Private
Chinese companies. In the Biotech Sector, the Chinese companies over 800 molecules under development and are rapidly licensing in and out of China.

Education

The education sector in China is under its golden age right now. In the year 2015, the revenues were
US$232 Billion in the market, and now, it is expected to get double in the coming few years. There were times when private education sector was zero, but now, there are more than 150,000 private schools in China. Also, more and more foreign investors are investing their money in Chinese Education Industry,
especially in Private English Language Training in China. The reason is that Chinese Government does not put any special implications on the English language. Even the parents are investing their money in private sector education in
China.

Asset & Pension Management

With the establishment of Financial Stability & Development Committee back in 2017, will have a
great impact in 2018. The Shadow Banking and micro-lending are going to be curtailed. The fund management sector of China is doing extremely well up until now. And now, because of the opening in the financial sector for foreign involvement, the wealth management, and competition will intensify art rapid pace.

It’s Not Soccer, it’s E-Sports Time

2018 is going to be quieter for soccer in terms of Chinese investments. From the United Kingdom to
Italy, the Soccer Entrepreneurs now know that it is easy to buy soccer team as compared to running it successfully. But now, the Chinese E-Sports player is performing extraordinarily well in the global industry. There is over 1,000 professional E-Sports player and around 20 players have already earned 1
million dollars in 2017. The professional E-Sports League of China is taking over and is passing the whole world behind.

These were the important sectors that are taking Chinese Economy to the new heights and have
the capability to surpass international competitors too.

Discuss China’s explosion in the eCommerce sector

Allegiances have shifted in eCommerce ecosystem. The newest players have gained taller stature. The newer markets for eCommerce witnessed higher levels of activity. We are talking about China. The most populous country in the world isn’t a stranger to commerce. A lot of their products found their way tothe other side of the globe. Chinese are no stranger to foreign goods as they are huge importers of Nike goods and Apple iPhone. Just like Olympics, China is one of the latest entrant in eCommerce and now they are the second biggest eCommerce market after US. A lot has to be discussed on what brings the change and if eCommerce challenges the survival of Chinese brick and mortar stores in coming years. This post intends to discuss China’s explosion in the eCommerce sector across various aspects.

Let’s talk numbers

China has 730 million internet users, accounting for 40% of global retail commerce. It’s mobile payment market was 11 times bigger than U.S. market in 2012. It is said to be 50 times more than U.S. market by 2016 and the ratio is expected to grow 3 times wider in 2019. 300 million middle class consumers with potential of rising incomes are driving China’s eCommerce explosion. In 2016-17, the online sales in China reached an all time high of $500 billion. By 2020, online sales in China is expected to reach $650 billion. This figure comes from products alone, excluding services.

Factors attributing to China’s explosion in the eCommerce sector

Chinese living in big cities are not comfortable going out. The traffic and parking issues are denting the comforts of life in the city. The ever growing population is not helping either. People like to order their essentials and even the mundane items online. Ele.me, a food delivery startup is considered reliable way of getting food through online. The busier streets like Shanghai and Beijing is driving the eCommerce trend in China.

The most populous country is moving towards a consumer driven economy. Rather than relying on exports, they are promoting diversity from within. The cheap courier charges in China indicates that the government favors this change. The diversity of products and the ease of purchase is what makes consumers favors eCommerce. The new trend of materialism is challenging the survival of local stores.

There is no scarce for market players in Chinese eCommerce market. The intense competition is what gets the industry moving. The eCommerce giants of China understand the market is bigger and stakes are higher. They are promoting their goods and services smartly to the netizens. Consumers comes across targeted and eye-catchy promotions on social media, where they spend considerable time. The companies keep expanding the list of retail categories to serve every need of consumers.

Inefficient service from brick and mortar system contributed to the Chinese eCommerce explosion. Very few retailers have impressive national presence. Non availability of products is always an issue in local stores. Even when they are available, they are expensive. In small towns, sought items are no where to be found. In tier four cities, more than 25% of disposable income is spent online.