US Gains Edge as China’s Currency Strengthens

NO RATINGS
View comments: newest first | oldest first | threaded
The Source
User Rank
Blogger
Re: The real story
The Source   12/6/2012 10:59:26 AM
NO RATINGS

Barbara,

You have made a very important point and that is that the high-tech industry must get on with the business of finding ways to compete. I agree with you on that point.

Thanks for your comments.

Nicole


The Source
User Rank
Blogger
Re: Fickle numbers
The Source   12/6/2012 10:38:50 AM
NO RATINGS

 

Dear Bolaji,

The appreciation of China's currency against the US dollar during the last two years is not a temporary movement in the value of the RMB. Indeed, China is moving away from a centralized economy to a market based economy and in that transition, we are seeing China's industrial development accelerate.  In the new China, the cost of production will rise further, and I'll bet that the value of the RMB will appreciate more against all global currencies in the years ahead. The high-tech industry will have to take these expected increases in production into consideration and figure out whether it's worth assembling technology products at facilities located in China. Remember, China's economy is still on a growth spurt, and keeping a supply chain presence in China is still worthwhile, despite the rising cost of production.

Thanks for your comments.

Nicole  

 

Bolaji Ojo
User Rank
Blogger
Fickle numbers
Bolaji Ojo   12/5/2012 12:46:21 PM
NO RATINGS

Nicole, I doubt any manufacturer would base long-term production planning on the temporary movement of exchange rates. In the case of China, much more than labor costs are at stake and companies will take other issues such as the total cost of production, including logistics, into account.

Jacob
User Rank
Supply Network Guru
Currency Manupulation
Jacob   12/4/2012 3:36:35 AM
NO RATINGS
1 saves

Nicole, we are hearing about Chinese currency manipulation from quite some time back and now it's very clear. If they are doing it only for foreign trades, then it's fine so that they can have some gains. Otherwise if they are following the same thing for internal transitions, it will bring additional burdens to customers.

Barbara Jorgensen
User Rank
Blogger
The real story
Barbara Jorgensen   12/3/2012 1:46:20 PM
NO RATINGS

I'm happy to see the analysis on the Chinese currency. So many people confuse strength of currency with price. They are related but not the same thing. It's easy to call China a manipulator, but facts are pesky things. If the analysis tells us otherwise, let's accept that and figure out other ways to be competitive.



More Blogs from At the Source
The electronics supply chain now understands that a green stance is good for the environment and for business.
An Ernst & Young survey shows that, when CFOs and supply chain leaders form a closer business partnership within a company, they report better results in a number of areas, including the company's financial position.
Could sophisticated software have helped supply chain managers reverse the declining fortunes of companies like BlackBerry and Nokia?
Indonesian tin use undermines electronics supply chain's claim to social responsibility.
Patent assertion entities are the bane of the electronics industry. It's time for the supply chain to use its influence to demand an end to the unfair business environment they create.

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
Latest Poll
EBN Dialogue / LIVE CHAT
EBN Dialogue enables you to participate in live chats with notable leaders and luminaries. Open to the entire EBN community of electronics supply chain experts, these conversations see ideas shared, comments made, and questions asked and answered in real time. Listed below are upcoming and archived chats. Stay tuned and join in!
Archived Dialogues
Live Chat 4/3: Business Networks Emerge as Procurement's Future
Rachel Spasser, SVP and CMO at Ariba, discusses the key elements of a strong business community.
Live Chat 3/27: Finding the Procurement and Technology Sweet Spot
Increasingly, choosing the right software and technology tools is critical to empowering procurement to realize strategic advantages.
The Velocity Report Archive
Click here to see our newsletter archive.
EBN Newswire
THIEF RIVER FALLS, MN   4/15/2014
Digi-Key Debuts Innovative Mobile App for Freescale
SANTA MONICA, CA   4/9/2014
Master Electronics Acquires Electro Sonic
Twitter Feed
EBN Online Twitter Feed