Article at a glance:

Competition from China: Two McKinsey Surveys

• Despite rising wages in China, executives around the world who responded to a McKinsey survey say that low-cost production remains the biggest competitive advantage for companies there and will be for years to come.
• While more executives see China as a threat than they do any other emerging economy, the survey also shows that surprisingly few of them have made efforts to respond to the global aspirations of Chinese companies.
• In a parallel survey, most executives at companies based in China say their long-term aspiration is to become globally competitive. The biggest obstacle they face, the respondents say, is a lack of managerial talent.