China Begins to Lose Edge as World's Factory Floor

[conworldus]

Aakash was supposed to be the frugal Indian innovation. It turned out to be "cheap and crappy" Chinese import from Shenzhen.

oh please````you countries is primitve factor driven society, your high tech sector is no bigger than Singapor's, and manufacturing sector is no advanced than vietnam```annual research citation paper and patent grands from PCT is similar to HK, and now you are comparing to China, which is among the top three?

cannot find a better explaination of ignorance and clueless than you kid``

 

[PITA]

So, you think that people here in Europe who are used to sophisticated consumption have been stupid in the last 20 years (that's a whole generation), while poor consumers from some third world countries are more smart and consume top shelve products from developed countries.

Did you know that the label "Made in Germany" was once a sign of shoddy copycat products? It was introduced by Great Britain in the Merchandise Marks Act 1887 to counter German success and after WWII we conquered the world with this label.

125 years of 'Made in Germany' | Germany | DW.DE | 23.08.2012

Made in Germany - Wikipedia, the free encyclopedia

made in Germany

Good point. People don't realize that all countries who have gone through that development cycle start off with "cheap" products because it forces inventory turnover and increase economies of scale. That in turn benefits the whole supply chain. Companies don't really produce things that consumers want. If that happened, they'd be out of work and couldn't compete with less expensive alternatives. I know it goes against what they teach in business school but the reality is completely different.

I met a guy through a friend in Tianjin one time. He had worked as a QA consultant for oil companies that built oil rigs. He said that when he first started, the Japanese were making really bad machinery and materials. After a couple of years, they started to turn things around. This was back in the late 70's.

It's what a country does afterwards that matters. The thing I like about the Chinese model is that they can centralize organization and get technology from different sectors to meet their goals as well has having a free market approach. The manufacturing will shift to other countries but it's what they do with that knowledge afterwards that counts. I think it'll probably branch off to India and South America for a decade and a half or so before moving on.

 

[Anonymous user]

So, you think that people here in Europe who are used to sophisticated consumption have been stupid in the last 20 years (that's a whole generation), while poor consumers from some third world countries are more smart and consume top shelve products from developed countries.

Did you know that the label "Made in Germany" was once a sign of shoddy copycat products? It was introduced by Great Britain in the Merchandise Marks Act 1887 to counter German success and after WWII we conquered the world with this label.

125 years of 'Made in Germany' | Germany | DW.DE | 23.08.2012

Made in Germany - Wikipedia, the free encyclopedia

made in Germany

I like your argument points, fair objective and logical. Also you prefer to use your own country as an example to support your arguments. I know some Germans very much like yourself who sees things in a similar way.

Koreans are also known for copying, especially when I start seeing cars on the road which sometimes look like a 3 series bmw, **kia cough**. But they are ahead of the game on the manufacturing front for consumer products.

 

[Anonymous user]

You should be amazed at the length that I'll go to counter stupidity.

Countering stupidity in this forum is like bailing water out of a sinking ship, there's just too much of it.

 

[dunhill]

WSJ should worry about America's own de-industrialization. Chinese manufacturing will shrink in size and grow in value as China leaps toward higher tech exports and heavy industries. Other nationals like Bangladesh, Vietnam and India will come forward to fill the supply gap of child labor to factories of Nike, Addidas, etc.

Some do not have a good grasp of economic growth!

What, where, when that you have some kind of information about Viet Nam filled the gap of Child labor? Can you prove for whatever you just said???

 

[Kiss_of_the_Dragon]

Polution is also a factor of concern, If China can move all those high poluted manufacturing to Vietnam or Philipines than it's a good thing. we can concentrale ourself on value engineering work, or high value added manufacturing.

 

[R0H1T]

oh please````you countries is primitve factor driven society, your high tech sector is no bigger than Singapor's, and manufacturing sector is no advanced than vietnam```annual research citation paper and patent grands from PCT is similar to HK, and now you are comparing to China, which is among the top three?

cannot find a better explaination of ignorance and clueless than you kid``

Oh spare me that patent cr@p ! I know what patents are & what types of patents are filed these days, wake me up when some of those patents make it to consumer level products & until then shut your tr@p cause CN is nowhere when it comes to innovation & I don't need you baidu for knowing that

 

[Anonymous user]

Oh spare me that patent cr@p ! I know what patents are & what types of patents are filed these days, wake me up when some of those patents make it to consumer level products & until then shut your tr@p cause CN is nowhere when it comes to innovation & I don't need you baidu for knowing that

There are plenty of innovation of course non as big as the ones in the west, recently friends have asked me to download and use this prog called wechat which is apparently grown in popularity and I was surprised to see it was created by Tecent holdings. China just like Japan has innovative products which cater to the local markets. And sometimes if they are a hit they spill unto the international markets.

Dear Whatsapp, Aren't You Threatened By WeChat?
WeChat - Wikipedia, the free encyclopedia

I know of industrial innovations by factory owners who made process improvements to cut cost, improve efficiency and hence able to deliver to the US consumers for low cost, you might not think that's a big deal but actually the competitive advantage is huge.

You have no idea of the manufacturing abilities of China, even the grottiest illegal factory could churn out a replica (electronic or otherwise) which is why its so hard to stop. And you don't think it doesn't take some innovative mindset for some low paid factory to manufacture something from scratch to final product without a decent assembly line?

It seems you lack actual business experience (outside of the desk) and hence you do not appreciate the complexities of the supply lines and manufacturing centers which crisscross the nation with an efficiency which puts DHL to shame. And you think to create that did not require business innovation?

Unfortunately from your post its obvious you are highly China biased, hence even if you did go to China you would unlikely learn anything since your mindset is already made. And if all your world is just limited to wireless dongles and apple Ipads well is really time to open your world.

I spend time in India to appreciate the eccentricities of the Indian culture, I suggest you do the same for China. Otherwise the world will just leave you behind

 

[R0H1T]

There are plenty of innovation of course non as big as the ones in the west, recently friends have asked me to download and use this prog called wechat which is apparently grown in popularity and I was surprised to see it was created by Tecent holdings. China just like Japan has innovative products which cater to the local markets. And sometimes if they are a hit they spill unto the international markets.

Dear Whatsapp, Aren't You Threatened By WeChat?
WeChat - Wikipedia, the free encyclopedia

I know of industrial innovations by factory owners who made process improvements to cut cost, improve efficiency and hence able to deliver to the US consumers for low cost, you might not think that's a big deal but actually the competitive advantage is huge.

You have no idea of the manufacturing abilities of China, even the grottiest illegal factory could churn out a replica (electronic or otherwise) which is why its so hard to stop. And you don't think it doesn't take some innovative mindset for some low paid factory to manufacture something from scratch to final product without a decent assembly line?

It seems you lack actual business experience (outside of the desk) and hence you do not appreciate the complexities of the supply lines and manufacturing centers which crisscross the nation with an efficiency which puts DHL to shame. And you think to create that did not require business innovation?

Unfortunately from your post its obvious you are highly China biased, hence even if you did go to China you would unlikely learn anything since your mindset is already made. And if all your world is just limited to wireless dongles and apple Ipads well is really time to open your world.

I spend time in India to appreciate the eccentricities of the Indian culture, I suggest you do the same for China. Otherwise the world will just leave you behind

I may be biased against China(alright I am) but for sane reasons & Ipad/dongles have nothing to do with it ! Also just FYI it doesn't take a genius to put assembly lines & logistics & whatever else that you've mentioned ! I deal with hundreds of online stores & their delivery partners so its not something that's unique to China either, infact I'd say with places without roads &/or any other proper infrastructure support India is way more innovative in this regard !

What my point earlier was China doesn't have anything unique that is world class & home grown not to mention most if not all the tech that they're boasting about was brought to them by the west since the 70's so really why is it such a surprise that a VW "made in China" should be anything lower than the quality that is associated with "Made in Germany" brand ?
Infact its pretty shocking that anything coming from local Chinese brands is inferior quality even though they may well have been assembled at the same site !

This isn't rocket science & if you're(the Chinese) looking down upon the rest of the world because you have the largest factories in the world then something's really amiss with you !

 

[Fsjal]

Polution is also a factor of concern, If China can move all those high poluted manufacturing to Vietnam or Philipines than it's a good thing. we can concentrale ourself on value engineering work, or high value added manufacturing.

Vietnam sounds like a better option. Philippines is too polluted, including Manila.

 

[Viet]

It is just obviuos that China can no longer produce cheap products with no longer cheap wage.

 

[Anonymous user]

I may be biased against China(alright I am) but for sane reasons & Ipad/dongles have nothing to do with it ! Also just FYI it doesn't take a genius to put assembly lines & logistics & whatever else that you've mentioned ! I deal with hundreds of online stores & their delivery partners so its not something that's unique to China either, infact I'd say with places without roads &/or any other proper infrastructure support India is way more innovative in this regard !

I don't want to put down your online store but what I am talking about is on a different scale, I know owners of several large and small online ebay and local stores some put together by 13 year olds, we're talking about manufacturing logistics from creating of molds to electronic circuitry component manufacturing etc, baseline products with prototyping and mock ups created by CNC machining which can be seen on smaller Chinese factories but probably seen in larger Indian firm that kind of thing. If you want an example compared it to the tiffin delivery in mumbai which is a true innovation and talent but only appreciated by some.

Using lack of roads as a innovative effort I suppose it like saying how the counterfeiters are innovative. Turning a profit despite the obstacles.

What my point earlier was China doesn't have anything unique that is world class & home grown not to mention most if not all the tech that they're boasting about was brought to them by the west since the 70's so really why is it such a surprise that a VW "made in China" should be anything lower than the quality that is associated with "Made in Germany" brand ?

Tech may have been brought by the west but improvements have been made by the local chinese over the years, computers were invented by the west and so was the internet. Does that mean that every improvement made on it either via code or otherwise has to be western originated? I already gave the above example of a Tencent software, Baidu actually has alot of home grown innovative features which google does not have. Of course if it was made international people will assume Baidu copied it because most people have the mindset of a non innovative China.

Infact its pretty shocking that anything coming from local Chinese brands is inferior quality even though they may well have been assembled at the same site !

This has nothing to do with innovation, its related to bottom line and profits. The crappier quality items are cutting cost left right center on production and hence its crap quality.

This isn't rocket science & if you're(the Chinese) looking down upon the rest of the world because you have the largest factories in the world then something's really amiss with you !

Go out to the real world, visit the factory towns. Try not to get conned.

 

[Kiss_of_the_Dragon]

Vietnam sounds like a better option. Philippines is too polluted, including Manila.

For friendly advise from a philippine, definitely Vietnam is a good destination .

 

[Hammer-fist]

Every couple of years if not year some clown(s) from the west write about the "imminent" collapse of China and every year China gets stronger.



Obviously China will want to progress and graduate from being a place with just low-cost manufacturing to a more developed economy.

Other countries will then take on the role that China has had.

However with China being the largest economic market of earth and a regional superpower these countries that wish for Chinese investment need to be friendly with China or otherwise the dragon can chose not to invest in them!

Anyway Bangladesh is striving to be one of the countries that replaces China as a low-cost centre of manufacturing:

BBC News - Chinese factories turn to Bangladesh as labour costs rise

Bangladesh could be 'next China'

The very fact that we want to be another China means we admire what they have done and are seeking to emulate them.

 

[faithfulguy]

What patents do Hindus have? You do have patent for abusing women
Indians are in the lowest rung of human evolution cycle, that's why India have never ever achieved anything in your history a d never will. Big talk, but always fire blanks
That's India's specialty. Know your role, you are and forever will be a secondary country to us. It's how god made us.



Good to see Bangladesh getting the factories if we lose out. Considering India has no rule of law whatsoever (woman issue), it's not surprising Bangladesh is taking these factories.

Please don't make fun of rape. Its a sensitive topic that affects all humanity.

Back to the topic, India will eventually get some investment as many western investors touted India as the next great thing. But India soon disappoint them.


'India, the Most Disappointing Nation Among BRIC'

Its no surprise with the culture of corruption that India will never amount to anything. India will need a major shift in its policies to prevent complete talent drain. The best Indian minds are helping advancing technologies in the US and other countries. Soon, Indians will go to China and help China grow. And China, if its smart, will welcome the best and brightest of India with open arms.