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Rethinking the China Threat
businessweek ^

Posted on 01/05/2005 6:57:05 AM PST by maui_hawaii

The rising economic powerhouse hasn't produced consumer-electronics outfits that can truly compete with multinational giants

Everybody knows that China is the world's next economic superpower. Each year, it gets billions and billions of dollars in foreign investment, powering its booming economy. The Middle Kingdom has more cell-phone users than anywhere else on the planet, and soon it will be tops among Net surfers, too. American consumers can't get enough of the low-cost TVs, DVD players, mobile phones, computers, and other gizmos that come out of China's factories.

For believers in the China-rising story, the latest sign of ascendance was the December announcement that IBM (IBM ), one of the most venerable names in U.S. industry, was selling its PC division to Lenovo (LNVGY ), the No. 1 PC maker in China. Lenovo is owned in part by the Chinese government.

A HAS-BEEN? All the hype about the Lenovo-IBM deal and China's might obscures one problem: For a country that's about to become such a powerful threat to the U.S., China has a tough time producing world-class companies that can compete with the likes of America's Dell (DELL ) and Hewlett-Packard (HPQ ), or Japan's Sony (SNE ) or Asia's Samsung. Sure, China has Huawei Technologies and ZTE, both of them growing providers of low-cost, high-quality networking equipment. But when it comes to consumer electronics, Chinese outfits just aren't in the same ballpark.

(Excerpt) Read more at businessweek.com ...


TOPICS: Business/Economy
KEYWORDS: china; globalism; trade
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To: Lazamataz

2/3 of them will invade the US and agree to "let us go" in exchange for a work permit and permanent resident status.


21 posted on 01/05/2005 7:25:20 AM PST by maui_hawaii
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To: maui_hawaii

"Elaborate."

http://www.freerepublic.com/forum/a3acf6b7a1eed.htm
http://www.madogre.com/Interviews/China_special_report.htm
http://www.geocities.com/csroberts/china.htm

You might want to read these articles. I have more if that isn't sufficient. Let me know if I can be of further help.


22 posted on 01/05/2005 7:28:23 AM PST by Ginifer ("All great spirits have encountered opposition from mediocre minds" - A. Einstein)
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To: Hard Way
What is your industry?

Coming up here they are going to largely be left in the dust in relation to the rest of Asia.

The rest of Asia has been stagnant for a while (Asian Financial Crisis and then 9-11, as well as the China effect)

China has been booming in their own effect largely by taking away contracts from their neighbors.

Thats the old way though. The rest of Asia is on its way up, and China is on its way into a (relative) lull comparatively speaking.

China won't be left out, but left behind in many aspects.

If you drew a pie chart for all of Asia's tappable markets, China might represent 10%, maybe.

The rest of Asia is going toward an EU style of cooperation, whereas China is not quite up to speed yet to allow that.

Look for the emergence (over a 20 year period) of a largely barrier free, homogenous trade area in Asia.

That combined market dwarfs anything China has to offer.

23 posted on 01/05/2005 7:33:59 AM PST by maui_hawaii
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To: maui_hawaii
Nothing offsets quality. My stab at a one liner tried to include that.

LOL! Then we are perfect friend! :o)

24 posted on 01/05/2005 7:37:27 AM PST by yankeedame ("Oh, I can take it but I'd much rather dish it out.")
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To: maui_hawaii

Semiconductors


25 posted on 01/05/2005 7:37:41 AM PST by Hard Way (Razor nothin'. I'm firing up Occam's Chain Saw)
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To: Ginifer
They will do fine.

I was asking what you guys were talking about specifically.

Over the past few years here on FR we covered a lot of ground...in some cases from some posters China was going to take over the (economic) world, and in others, they were going to invade America.

The vagueness of the post left me wondering where along the spectrum you were coming from.

26 posted on 01/05/2005 7:38:00 AM PST by maui_hawaii
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To: yankeedame
We got a reputation to uphold...

That is part of a 'brand' is it not?

:o)

27 posted on 01/05/2005 7:39:13 AM PST by maui_hawaii
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To: maui_hawaii
Everybody knows that China is the world's next economic superpower.

It's true. I remember back in the '70's being told that China's economy would surpass ours by the end of the 80's. /sarcasm

It'll never happen under their current political system.

28 posted on 01/05/2005 7:43:09 AM PST by <1/1,000,000th%
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To: maui_hawaii

"The vagueness of the post left me wondering where along the spectrum you were coming from."

That if you ignore China, you do it at your own peril. Provided you with articles where you might be able to see what I was referring to....can't spell it out any more clearly than that.


29 posted on 01/05/2005 7:46:33 AM PST by Ginifer ("All great spirits have encountered opposition from mediocre minds" - A. Einstein)
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To: Ginifer

I read them. You're all good.


30 posted on 01/05/2005 7:49:09 AM PST by maui_hawaii
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To: maui_hawaii
The title of this and specious lines such as, " For a country that's about to become such a powerful threat to the U.S., China has a tough time producing world-class companies that can compete with the likes of America's Dell..." are incongruous in this article.
31 posted on 01/05/2005 7:50:37 AM PST by tallhappy (Juntos Podemos!)
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To: maui_hawaii

"I read them. You're all good."

Thank you.


32 posted on 01/05/2005 7:52:49 AM PST by Ginifer ("All great spirits have encountered opposition from mediocre minds" - A. Einstein)
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To: <1/1,000,000th%
thread

Q. There are tremendous numbers of people living in China. Could you tell us the approximate population and number of accordion players in China?

A.The population in China is about 1.3 billion, which is approximately one-fifth of the total population of the world. China probably has the greatest number of people in the world studying the accordion today, with over 200,000 students nationwide. The total number of accordion players is unknown.

I still chuckle over that thread...maybe we can sell them accordions...

33 posted on 01/05/2005 7:57:28 AM PST by maui_hawaii
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To: All

I am amazed at the lack of interest in India.
I'd like to see a thread on the military and economy in India.
It makes more sense that China would be India's concern more than the U.S.'s.
A property rights law just went into effect in China that will change the country.The law will entice more companies to locate in China.
Now I see that China will be exporting cars to the U.S.in 2006.


34 posted on 01/05/2005 8:23:55 AM PST by hubno (hub)
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Comment #35 Removed by Moderator

To: maui_hawaii
I still chuckle over that thread...maybe we can sell them accordions...

LOL!

If they can afford them, why not.

36 posted on 01/05/2005 8:40:05 AM PST by <1/1,000,000th%
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To: hubno
I'd like to see a thread on the military and economy in India.

Find the articles and post them. Your fingers aren't broken :o)

37 posted on 01/05/2005 8:40:08 AM PST by maui_hawaii
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To: <1/1,000,000th%
It's true. I remember back in the '70's being told that China's economy would surpass ours by the end of the 80's. /sarcasm

I remember that,too! All tha hand-wringing and chicken-litte-ing over "The Age of Japan, Inc.", the "Pacific Century", and the "Asian Tiger(s)".

Oh, my gosh! Are we aging ourselves, or what? (grin) These things seem to have a what? A Twenty, twenty-five year cycle?

38 posted on 01/05/2005 9:13:31 AM PST by yankeedame ("Oh, I can take it but I'd much rather dish it out.")
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To: maui_hawaii



"Chinese outfits aren't in the same ballpark" Not yet, but remember years ago, Japan was known for cheap, non-durable, throw away goods. Now they're leaders in the automotive and electronics industries. Just imagine the potential of a country like China.


39 posted on 01/05/2005 9:17:58 AM PST by thombo
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To: thombo
I see the reasoning... and it is logical.

China and Japan though are different for many reasons.

I am not at all counting China out of the game. NO WAY. Not at all. There will be some name Chinese brands, as for what, who knows.

Keep in mind that China will now have to compete with Japan also, as with Europe, and Australia, and whoever else.

Back in the day, Japan was largely living in a more segmented world. Now its leaning more and more towards a heads up competition.

China probably won't fall flat, but they also won't rule the world.

Where along the line of command that "China" falls depends on a lot.

40 posted on 01/05/2005 9:39:38 AM PST by maui_hawaii
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