'Cheap Made-in-India Products' Strangle China

Chosun Ilbo ^ | 06/19/05 | Choi Yu-shik

[JohnnyZ]

Interesting point, but what about the Republic of China (i.e., Taiwan)? Have they not made a successful transition to democracy?

It took time and a strong transition figure in Lee Teng-hui (think Gorbachev's strengths and none of his weaknesses). There was a long anti-government tradition from dealing with foreign rulers (Europe, China, Japan, even the Chiang Kai-Shek Nationalists) and the democracy movement was jumpstarted in 1978? with the Kaohsiung Incident and had 10-20 years to gestate and grow before multiparty democracy suddenly emerged.

China may not have that kind of gestation period or pivotal political figure to shepherd a peaceful transition.

[Publius6961]

One of the critical points that was made in this article was that China's current boom isn't likely to be nearly as strong in the long term as Japan's was, mainly because Chinese-made products don't have any real "identity" at all and can be made just as easily anywhere else in the world.

Another absolutely correct observation but irrelevant in the present context.
Comparing apples and oranges.

The shoddy stuff produced by Japan after the war also could have been made just as easily anywhere else in the world. But that quickly (on a historical basis) changed, and now Japan takes second place to no other country when it comes to technology and quality.

This is the 21st century, and many things have changed. Japan, with the current international business climate (including Japan's role in it), the Japan of 1946 might not have made it.

[monday]

"but what about the Republic of China (i.e., Taiwan)? "

Mainly it's a question of size. Much easier to herd 23 million cats than 1.3 billion cats. If China would partition into 30 or so smaller countries, their economies would be unstoppable. The competition between the various "baby" Chinas would create some of the most dynamic economies in the world.

Each would compete to bring in foreign investment by establishing a favorable business climate. With enhanced rule of law, low taxes, transparent stock markets, low tariffs and other barriers to trade eliminated, you could expect to see Hong Kong or Singapore economic strength from a few of them in a very short period of time.

Democracy is also more easily established in smaller countries. People feel like their vote actually means something. Can you imagine how pointless it would feel like to vote in a country that has 1.3 billion other people? The regional concerns of 100 million people could be totally ignored in a country that large.


In the 21st century larger countries are going to become economically disadvantaged as they are too cumbersome to react quickly to changing economic conditions. Lean and quick will the most successful.

[Publius6961]

The problem with a race to the bottom in pricing and free market trade is that the bottom is starvation wages or a slave labor camp.

I cannot take this response seriously after this introduction.

This reads like the PR news release of a cigar-smoking union thug.

To call wages "starvation wages" if they were being paid in th U.S., is sophistry at best, and out and out fraud at worst.

[Bigg Red]

The rise of India is an enormous threat to Chinese textile industry.

**

Music to my ears. I trust that, unlike China, India does not use prison labor and does not have government owned manufacturers fronting as private businesses while supporting the Chinese military.

[Alberta's Child]

Japan's strongest asset in the post-WW2 era was a legal system that was based almost entirely on U.S. law. If China has any chance in hell of following Japan's path to success, then they can't be China anymore -- it's that simple.

[Publius6961]

About China, as they characteristically have a low 'original brand' image, they are attempting the unthinkable by buying out major brands in the US, like the recent purchase of IBM's PC division by Lenovo( if you try to visit the IBM website through your ThinkPad's AccessIBM button, you will reach a site with no IBM logo, but only that of Lenovo).

Unmentioned, but critically important for the sake of fairness is that, since IBM never manufactured their own laptops, as far as the consumer is concerned, nothing has changed.

For those who can understand it, the transformation from OEM to ODM is complete.
Granted, without IBMs presence, quality can certainly suffer over time, but that is a whole other (and not yet experienced) issue.

[Publius6961]

Sounds like SOMEBODY has forgotten the concept of a "dollar" store;^)

What have you got to say about "Motel 6"??

[SandyB]

I can confidently say that mainland Chinese manufacturers have absolutely no idea of what quality control means. It is only a matter of time before the so-called world factory implodes in smokes.

If american factories are closed, then there is nothing to compare it to, and no alternative even if you are not happy with the quality. So what do you do if the only factories in the world are in asia? (you cant buy anything from a long closed boarded up non-existant factory in Ohio)

[American_Centurion]

HA HA!

[Publius6961]

-- it's that simple.

Well, no. I disagree.
So let's just agree to disagree.

The attitude of today's global corporations and easily transportable manufacturing of all kinds did not exist in 1945. Yes, it's that simple; and not.
It's a combination of things, times have changed.

[Publius6961]

A brave and bold attempt to suggest that Japan is going to disappear soon; Or the manufacturing power of Europe.

Nothing to compare it to?
Get real.

[myheroesareDeadandRegistered]

"...I would much rather support India's economy than China's."

Amen to that.

[WmDonovan]

"One thing I wish America would get back into is the machine-tool industry. We used to have quality machine-tool production. Now, none. Even Germany is down to one or two major manufacturers, I believe. (If anyone has any more info on this, please share!)"

Haas, FADAL, Cincinnati Machine (formerly Cincinnati Milicron), Hardinge, Southbend Lathe, and Gidding & Lewis (albeit now owned by a German company) are still around. There could be others for all I know. There are still machine tools being made in the US--primarily at the very high end.

[NO_2_CORZINE]

The beginning of multinational corporations' march out of China?
I would hope so

[thulldud]

The "dollar store" concept is alive and well; it's the "dollar" itself that has lost all meaning.

[Dead Dog]

Any day, I'd rather help buy nukes aimed at pakistan than buy nukes aimed at me.

[myheroesareDeadandRegistered]

"If Wal-Mart switches to India for its imports, China's economy is doomed."

Naa, they'll just do some "lost province" re-annexing.

[Zeppelin]

well I stand corrected. I'll have to look into those, thanks!

[zek157]

What about Chicago Electric? THere's a brand for you. Disposable ChiCom hand tools that perform poorly for minutes.