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Why We Manufacture in China

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Kunmi
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Re: Other considerations re: China Manufacturing
Kunmi   11/24/2011 7:59:07 AM
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I want to agree with you that profit obsession is the driving force. It is not the issue of banking transparency as said by one contributor. It is basically greed and short sightedness. Economic strength has been give to China and it is very difficult to retrieve. We have put our heads under their harmpit and it is difficult to pull off. We did not realize that shifting manufacturing to China is like selling the birthright until now that we are hit with economic crisis and unemployment. It is a wake up call for America.

Anna young
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Re: Other considerations re: China Manufacturing
Anna young   11/23/2011 2:11:47 PM
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@dsengle, You highlighted many points and you were correct in focusing on all of these as they impact Chinese people, the environment and business partners. Investments in the country have been driven over the last decades by the hope that Western companies will eventually make money there. Some are and some aren't as you noted but there are hefty costs to the profit obsession.

electronics862
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Re:Why We Manufacture in China
electronics862   11/23/2011 1:18:20 PM
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Inexpensive manufacturing labor will not be a factor for long with the acceleration of technology in manufacturing processes. Our manufacturing is moving to a technology driven operation rather than a labor one..

pocharle
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Re: Other considerations re: China Manufacturing
pocharle   11/23/2011 11:17:00 AM
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All the manufacturing companies, including electronics and industrial, are attracted to China because of their cheap labor force. Their greed to gain more wealth in a small period hides the costs of the working people who are involved, without age criteria.

dsengle
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Other considerations re: China Manufacturing
dsengle   11/18/2011 5:52:46 PM
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I'd mention a few cautionary notes regarding the manufacturing conversation about China.  First, China's banking system is anything but transparent.  The relationship of the banking system to strategic economic goals is not well understood by western companies, thus creating a very unpredictable and risky capital environment.  From what I've read, very few western companies are really making money in China.  They hope to, but for now the story is not encouraging.  Next, in my travels to China over the course of several years now, I can say without reservation that there are no environmental safeguards in place.  China is literally and figuratively cashing in its environmental capital.  Water problems are now very present throughout China, air quality is a disaster in all urban areas (Xian, Chongqing, Beijing are all desperately bad places to be breathing) and deforestation and desertification are rapidly gaining ground.  The economic expansion is coming at a terrible price and manufacturing without constraint is a large contributor to that 'debt'.  These are not imaginary issues, they are real and escalating.  With a population of over a billion people, the amplification of these problems in terms of the human community are going to be staggering.  Right now the Chinese government is interested in one primary concern...job creation.  That government lacks the foresight and expertise (as do most governments on the planet, including ours in the US) to support job creation in ways that don't undermine future viability.  I think it's dishonest to discuss China's manufacturing lead without talking about the larger context that is in place.  I didn't even discuss the problem with China's position on intellectual property.  They seem to be taking the same "stripmining" mentality to this essential component of manufacturing.  Given another decade of current practices in stealing, or turning a blind eye to IP theft ought to put most western business partners out to pasture in terms of giving IP crown jewels to Chinese manufacturing partners.  Just ask Boeing how that's working out for them.

syed salahuddin
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Why We Manufacture in China.
syed salahuddin   11/13/2011 5:15:00 AM
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The development of an activity engulfs many a factors sucvh as Government policies, the regulations for control of its economy, more so the enterprenuers, business houses, and the culture which is practiced by its working papulation.

The factors why manufacturers choose China as a hub for manufacture is  that many of the governments lost control of their own manufacturers, the greed to acquire wealth in short term with due consideration to the local conditions, especially the employment scenerio, Since the genration of huge wealth in a different country is generated this is channlised to their own destinations not caring the economic condition of the country, ofcourse certain countries never vouched this for they do not have for they are tax exempted, the reason for this exemption is that they would provided employment by investments etc  to the locals but the surveys and statistics never  endorsed.

A number of working boys were deployed elsewhere, hence killing the skill and dynamism and enterprenuership. what the working class available are only people who have surpassed this age group.

China with Govt. support, had the opportunity to develop a full infrastructure and also earned huge surpluses to challenge the bigger economies this develpments is so massive you find them in every field, invested huge amounts in R&D, and have taken up projects which were possible only by advanced economies earlier.

The labour culture which was slogging with no higher technology could catch up and the Govt. has concentrated in educating them and developing the skills, besides the working age is much lower overcoming language and geogrphical barriers.

mario8a
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why we Manufacture in China
mario8a   11/9/2011 11:43:06 PM
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Wow, very goog article about China and TW, I think we also need to include their ability to work with their local goverment.

 

I could not agree more with mstrong1 I saw that many times with PCBA suppliers in San Jose, we could source PCBA with better quality and cheaper from China than over the hill.

 

Cheers

 


JADEN
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Re: Why we Manufacture in China
JADEN   11/9/2011 3:51:23 PM
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China with success has used its labour cost advantage and manufacturing skills to attract overeseas investments and causing a massive shift of manufacturing to their country.

bolaji.ojo
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Re: One more reason-- a mature supply chain
bolaji.ojo   11/6/2011 12:02:34 PM
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@djlevy, Absolutely correct. A mature supply chain support structure is critical to China's continuing success in attracting manufacturers. It is also one of the reasons manufacturing centers in other regions of the globe have been less successful in upstaging China. A whole industry of plastic molding, test and assembly, etc., has developed in China to support manufacturers and they are quite good at this. Any other part of the world that wants this business would have to ensure the support structure is as vibrant and cost-effective.

Clairvoyant
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Supply Network Guru
Re: Research & Development
Clairvoyant   11/5/2011 1:01:38 PM
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Yes, good point Wale. With China concentrating on sectors such as science and engineering, this will keep them ahead of other nations and secure their markets for the future.

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