China Isn't Being Displaced

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Jacob
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Re: Perceptions Vs Reality
Jacob   2/25/2013 3:07:32 AM
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Waqas, the main reason behind such tax sops are to promote internal/local market. This will help them for building a better living standards and hence money turnover. We can see the same strategy across all states/counties across the globe.

WaqasAltaf
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Re: Perceptions Vs Reality
WaqasAltaf   2/18/2013 10:02:07 AM
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@ Jacob

That is a good point. Reminding me of tax issues, in most countries it is beneficial from taxation aspect to set facilities in the localities to avoid major taxation hit on the financials. Every country discourages imports and encourages local production and export and the indicators to that strategy are imposing high tax rates on imported goods and providing subsidies and tax reliefs to local manufacturers.

Jacob
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Re: Perceptions Vs Reality
Jacob   2/17/2013 10:55:54 PM
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"Diversification is good so that if one unit closes down or faces problem, the other remains operational."

Waqas, that's an important point. Multinational corporate world has done diversification for easiness of transportation, business, tax advantages and for cheaper manpower for increasing their profits. For them margin/profit is important than the welfare of US citizens.

WaqasAltaf
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Re: Perceptions Vs Reality
WaqasAltaf   2/12/2013 9:44:01 PM
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@ Jacob

Waqas, would you think it's possible to focus the entire manufacturing hub to US or any other native states.

In my opinion, it is neither possible nor recommended for a company selling products all over the world. Diversification is good so that if one unit closes down or faces problem, the other remains operational.

One scenario which I see is that if unemployment levels rise in the US and the labour and resources costs fall, then a company may think of migrating back. 

FLYINGSCOT
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good post
FLYINGSCOT   2/11/2013 8:56:58 AM
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There is nothing wrong with building stuff in China or anywhere else for that matter.  However there is something wrong with buildling next to nothing in a major industrialized country in favor of offshoring to the cheapest provider of the day.  A healthy society is one that designs, manufactures and services goods.  Too much one way or the other is a bad thing.  Balance is the key.

chipmonk
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What sort of outourced manufacturing should be repatriated from China
chipmonk   2/7/2013 9:13:02 AM
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For the last 20 years China has bought from the US only 20 % of what it exports to the US. It is not all their fault of course.

The fault lies mostly with US traders and financiers who have spread self serving lies and bought politicians here to take advantage of the much cheaper and regimented labor in undemocratic China. They have danced with the devil and in the process corrupted / compromised democracy in the US itself. Instead of changing China and making it more democratic, as every bloviating US politician since Nixon has been claiming, contact and trade with the staunchly authoritarian Middle Kingdom has decimated the US workplace and bled our economy.

Over the last 3 decades China has caught up with the US in most areas of technology thanks to massive technology transfer by US companies outsourcing manufaturing to China, giving away US developed high tech ( aerospace, networking & mobile infrastructre ) as a bribe demanded by China ( part of Chinese national policy to catch up with the US by hook or by crook ) before they would buy anything, organized IP theft under protection of Chinese Govt., but most seriously by training millions of once quite backward Chinese STEM graduate students in the best US universities ( this was started by the very pro-China Kissinger to put pressure on the USSR, but now has backfired on the US itself ! ). So just repatriating manufacturing to the US is not going to help, the whole pro - China policy instigated by Kissinger and his Wall St. cronies must first be reversed and Govt. / policy organizations / academia in the US cleansed of beneficiaries / Agents of China..

Consumer expenditure constitutes 70 % of the US economy. Distribution channels for consumer products have become dominated by China loving giants who have turned into Trojan Horses in the US on behalf of China. In US national interest they must be made to change their ways by various positive or negative reinfrcements.

Many consumer products are technically sophisticated and potentially dual use ( meaning provide a pathway to defense technologies ). Manufacturing of these products MUST be brought back to the US. But advanced robotics & tooling should be used to reduce cost and increase flexibility / product variety. To reduce dependence on China for scarce raw materials ( e,g. rare earth metals ) & semi finished components ( e,g. PCBs ) their manufacture too must be re-started in the US, if necessary with Public financing / incentives ( per the successful programs for GM, Chrysler ), To make it all work about a million personnel ( Operators, Technicians, Engineers, Managers, Policy Makers ) need to be given a crash course ( 6 mo.s ) in Advanced Manufacturing ( as practiced in the best Wafer Fabs in the world - all still in the US ).

So to finally answer your question, the preparation might take 1.5 to 2 years but stable, profitable manufacturing of target components & products can start at high volumes within 3 years. I say this based on programs I have managed.

_hm
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Look for PRoduct of USA or like
_hm   2/7/2013 4:45:05 AM
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With less of union and lower hourly rates, manufacturing is coming back to USA. This has advantage of people getting much better quality products. If people starts looking for made in USA product for high quality white goods and other products, China may slowly starts getting displaced.

 

Jacob
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Re: Perceptions Vs Reality
Jacob   2/6/2013 11:54:49 PM
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Waqas, would you think it's possible to focus the entire manufacturing hub to US or any other native states. I don't think so because still Chinese market/industrial environments are cheaper when compare with those countries. The only thing is corporate profit margins are reduced, when compare with olden days.

Jacob
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Chinese role
Jacob   2/6/2013 11:51:16 PM
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Ken, there is no doubt that china will be in mainstream for some more years. The only thing is its attractive factors are degrading/come downs day after day. I hope they will be in main stream for another 10 years, even without that also the main stream industries can easily sustain for catering the domestic or Asian needs.

WaqasAltaf
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Re: Perceptions Vs Reality
WaqasAltaf   2/6/2013 10:00:22 PM
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@ chipmonk

How long do you think it would take, if ever, to get manufacturing facilities back to the US or other native regions rather than doing that in China ?  

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