The report, entitled ‘Looking East: The changing face of world business’ examines the impact of the rise of Asian economies on the world business environment and its implications for European companies.
"We are no longer looking at when West meets East, but at how the East will redefine the West and the way we do business," HSBC's group general manager and global co-head of Commercial Banking Alan Keir said in a statement.
“It (the report) is a startling reality check and wake up call for companies; over the next decade you can’t afford to wait for business. You have to go where the business is.”
The report warned that the old paradigm where the West did the design and development work and the East took care of production and manufacturing was becoming anachronistic.
“Lines have been blurred. China and India are now world leaders in the knowledge economy. They’re beating the US, Europe and Japan at their own game.”
Unless European boards confront the implications of the rebalancing of economic power and the growth of Asia, business opportunities would be lost and business threats would increase.
“European companies might stand or fall on their ability to engage with Asia.”
Asian economies are now a major global source of skilled workers in engineering, technology, nanotechnology and ICT services, the report said.
“In future, forward looking businesses will take advantage of the growing skills of Asian workers.”
One area where Asia is leading the march in innovation is in alternative energy.
With the East conscious of the environmental impact of rapid economic growth and sustainability, China has played a leading role in the development of alternative energy technology.
“This makes it and its businesses better placed to counter the threat of an oil crisis and, perhaps, the world’s concerns about the environmental impact of rapid economic growth.”
Source: HSBC
