China Aims To Move Up the Food Chain
krou notes reporting in the Christian Science Monitor that the current economic crisis is helping China's push into higher-end manufacturing by shaking out low-profit companies. The hope is that, instead of just assembling iPods, Chinese companies will be able to invent the next big thing instead. In this move China is following the well-worn path taken by Japan and the Asian tigers before it. "Last month, the National Development and Reform Commission announced revised plans to transform Guangdong and neighboring Hong Kong and Macau into a 'significant innovation center' by 2020. One hundred R&D labs will be set up over the next three years. By 2012, per-capita output in the region should jump 50 percent from 2007, to 80,000 yuan ($11,700). And by 2020, the study predicts, 30 percent of all industrial output should come from high-tech manufacturing."
this makes me happy that I'm learning mandarin. å好ä
Then those manufacturing jobs can come back to United States.
McDonalds made your bread.
The Chinese factories build your circuses.
You've lost everything and don't even see it. Enjoy American Idol!
I look forward to the new and inventive ways to hide toxins in consumer products.
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How does a society that historically repressed individuality (aka "thinking for yourself") overcome these traditions and start to innovate (aka "thinking of NEW things")?
I understand it's a nurture vs nature argument, HUMAN nature demands creative thinking. Eastern culture/nurture expects more a more 'repressed' behaviour.
How many generations of Chinese have been born into that way of thinking? Isn't it possible that those 'creative-thinkers' might have been "bred-out" of the population?
"The price good men pay for indifference to public affairs is to be ruled by evil men." ~Plato (427-347 BC)
I'm quite happy with my unbranded Chinesium MP4 player that I bought from Chinavasion.. All I wanted was something that would let me watch TV shows or movies at the gym. I looked at the iPod Touch and Nokia N800 products but they were all over kill (and over priced). This fits the bill perfectly. The software is XP only and just a gui wrapper to mencoder, but the ini let me write a nice shell script to do it on Linux/OS X.
There are quite a few products on that website that seem pretty cool. I'm thinking of getting the toothbrush cam to see if it will make a cheap bore scope for engines, etc. This hard drive enclosure seems pretty cool (Although I'm sticking with my XBMC).
The BEST part about all of these products is that they can't afford a proprietary connector nor can they afford to lose market share to not being able to connect to everything. Everything is Mini-USB or USB.
The biggest problem they have right now is UI and translations. The "MP5 Player Manuals" is quite entertaining to read and full of Engrish.
Then we'll just have some other country in South America or India make our crap for us. Personally I'm really tired of hearing of all the crap they make that's being recalled because of melamine, lead, etc...
I would rather pay more money and know that what I'm buying is safe.
Every time you call tech support, a little kitten dies.
Wah, i am gonna miss the cheap copies of electronics. Damn it. :-D
Well, I don't know about the situation regarding health care and education. But Hong Kong certainly *looks* very advanced already.
Would that be a melamine laced food chain?
Ascalante: Your bride is over 3,000 years old.
Kull: She told me she was 19!
Good news, worker 132847326. Your state sponsored employment is now officially to "innovate the next big thing". If you fail to complete this within the fiscal year, you will be subject to re-education. All Hail Mao!
It doesn't surprise me that the PRC government wants to encourage adding value to it's economy, by moving up beyond manufacturing to design. Hell, it was going to happen even without becoming public policy.
US economists, particularly those on a grant to say so, have gone on about the constructive destruction of the US economy. I can't count the times I've heard the analogy about Ford and the buggy whip. But, it's a bad analogy. Does it work when Henry isn't American, or doesn't make his investment in the US?
Constructive destruction is an attempt to describe a kind of economic activity, the redirection of capital and investment. But, it's not graven in stone that it's a benefit for any particular economic player, even if that player is the USofA.
But, just as those US economists made excuses for the hollowing out of US manufacturing (we'll move into design, we'll go upmarket), they'll think up new excuses now, and they'll probably pass muster at editorial boards and newsrooms as gospel.
In the meantime, the goals the Beijing government has set have INFLATION spray painted all over them, in dayglow.
Luke, help me take this mask off
No, they wish to mimic the US's salmonella laced food chain.
None of the Asian tigers has replaced the US as a center of innovation. That is a game the US will lose if the government keeps favoring establish Fortune 500 companies over small nimble truly innovative start ups.
Think Deeply.
There is no way one can protect IBM US-based jobs (the inneficient ones) without losing competitivity on the long run to folks like these that work for peanuts. It's just something called capitalism, and nothing politicians can do to stop it.
They have been working at this for decades. My brother travels often to China where he oversees production designed here. He admires their industry (human and machine), relative honesty (not that different from Western companies), and ambition. A company with 100,000 employees has 100,000 people all wanting to own it. The government not only supports business, they have schemes to induce overseas Chinese to return to lucrative positions. And they are not too sympathetic to freeloaders.
In short, he likes them, and considers them a major looming threat. Every design he brings in he knows will be analyzed to enable them to better it. Hey, ho, that's evolution. Competitions wonderful if you can beat it often enough to live. If not, introduce protectionism and live off your capital for a while.
They are not tigers of course. Those are a protected species. Not T. rex cos that's just a bunch of bones. I cannot think of a suitable analogy. An unassuming animal that out-competes us while we are watch video games.
In particular, China is now pushing Obama to help them improve their situation by having us give them all sorts of tech. But, the last time that we did any agreements with them, US gave them MFN in exchange for their promise that they would drop their trade barriers and free their money in 2002. Neither was done.
The west has open trading for the most part. More importantly, our money is freely traded so that when the economy picks up in one place, the other gets cheaper. China prevents that. Until China carries through with their original promise, I say it is time to slowly raise an import tax. More importantly, EU is going to do this.
is the general lack of "IP" in China. There is little motivation to innovate. Other than the prospect of immediate profits (with nearly immediate copycats coming to market and grabbing share), there just isn't as much call in China to spend R&D money.
With the Chinaman it's all "monkey see, monkey do".
At my university there are a lot of chinks. Maybe over 50% of the student population. One thing I notice is that they lack any sense of creativity. Like a colony of ants or termites, the Chinamen all aspire to conform. As a matter of fact, conformity is their highest aspiration.
The idea that the Chinese could invent anything of interest to normal humans is ludicrous. We all know that. And maybe it is not so politically correct to point it out but their lack of creativity and their obsessive desire to conform leads to a culture of "monkey see, monkey do" groupthink.
Now that they have the manufacturing base and the know-how, it's just a matter of cutting out the middleman. Which is more than likely going to be the U.S. based or other global companies that shifted over their manufacturing to China.
They're already doing it with a lot of products in China, and I'm not going to be too suprised when they decide to start exporting inexpensive Chinese-brand clones of mainstream products like iPods.
What can I say, most western CEOs (and the corporate accountants they listen to) seem to put on the blinders when chasing short term quarterly profits. I guess the pitfalls they lead their companies into will be soon become China's gain.
My wife is a fashion designer, and it's quite obvious that the trends in manufacturing have been shifting for quite a number of years now. Clothes at Walmart (socks, underwear, t-shirts, etc.) used to be made in China. Now these low-value items are being made in Vietnam, India, Bangladesh, etc. At that time, the mid-to-high-end fashions were made in Korea, Taiwan, or Hong Kong. Now China has largely overtaken this mid-to-high-end market (dresses that go for up to $1,000 are frequently from China now).
Clothes today. Cars and planes in 25 years. Or is that Toyota still funny Japanese engineering that falls apart?
Also - with our recent peanut/salmonella/spinach/drugs health scares, it's not like we can point fingers at others anymore for having shabby food quality standards. I know we're still lightyears ahead of many countries, but the gap is certainly closing quite quickly.
There are a huge number of yeast infections in this county. Probably because we're downriver from the bread factory.
Anyone really think that the US dollar should be as strong as it is? After all, they're now throwing around trillions.
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Cars and planes in 25 years.
Perhaps sooner.
http://news.bbc.co.uk/2/hi/business/7879372.stm
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In about two million emails, the font was never readable.
I am very small, utmostly microscopic.
Lead Seldom Kills, but it often would cause anemia, behavioral problems, Diminished IQ, lethargy. Sure they survived, but how many of them would have had better lives?
Good news: It won't be cheap to ship manufacturing overseas anymore, so plants may move back to the US
Bad news: No more cheap manufacturing in China means no more cheap parts. Cost goes up, profitability goes down and companies have to either cut other costs to stay afloat or find some magical way to increase revenues.
The ones who are suggesting that the Chinese are incapable of making high end or innovative products.
Are you aware of how enormously successful Chinese immigrants are in places like Silicon Valley, where there's actually money and motivation for R&D? Did you know that both ATI and Nvidia were founded by Chinese immigrants? Did you know that there are many high end computer parts companies in Taiwan (who are ethnically and culturally Chinese)? Are you aware that the average IQ of a Chinese person is 105, which is exactly the same as the average IQ of a Japanese?
I guess what I'm trying to say here is, those of you who underestimate the Chinese will be proven wrong in the coming years, just like how nobody took Japan seriously when they first entered the electronics and automobile industries.
I just got back from China 2 weeks ago. If you still think China is a 3rd world country you are right. But that only applies to the rural area. If you were in major metropolitans like Shanghai, and Beijing they are no different from any other US cities. Only thing is that there are 10-20x more people in these major cities.
Think of things this way. If US gets 1 genius per 100000 person and China gets 1/10th of that(due to substandard living). Well China would have 5.2 times more geniuses than the US.
The Chinese have been engaging in protectionism for years now, by keeping their currency artificially low. It is in effect a sort of import tax on foreign goods.
Now they are going to use it as a competitive advantage to move up the food chain.
It has nothing to do with them being smarter or more hard working. It does have to do with them using an unfair advantage against the rest of the world.
And don't flame me for being a racist, because I am not. In fact, by taking this position I am defending the majority of the world's population which doesn't engage in this type of protectionism. Asian, African, European, etc.
So let the protectionism debate begin...
putting the 'B' in LGBTQ+
> And by 2020, the study predicts, 30 percent of all industrial output
> should come from high-tech manufacturing.
They should be careful what they wish for -- high-tech manufacturing is not all it's cracked up to be.
Chinese electronics are cheap and inferior crap, i would rather buy Japanese electronics just compare any Japanese made ham radio (or any radio) to its Chinese counterpart, too bad the USA does not do much anymore in the way of manufacturing (thank you globalism for destroying the US manufacturing capabilities)...
now to go back to winding copper wire around a cardboard tube...
Politics is Treachery, Religion is Brainwashing
How did Zhen He travel the world in leviathan sized ships and even left traces in California then?
Eh? As far as I know the only pre-Columbian trans-oceanic contact with N-America and it's indigenous peoples that has been archeologically proven beyond a shadow of a doubt was by Norse seafarers from Iceland and Greenland. Apart from the Norse the only other candidates for any significant pre-Columbian trans-oceanic contact with the Americas their indigenous peoples are Polynesian seafarers. Everything else including America bound voyages by: Africans, Andalusians, Arabs, Moors, Australians, Irish, Chinese, Egyptians, Mesopotamians, Indians, Israelites, Romans, Greeks, Phoenicians and the Welsh is unproved supposition.
Only to idiots, are orders laws.
-- Henning von Tresckow
Um, citation needed. What traces did he leave in california exactly? Wikipedia has the following:
As a potential lottery winner, I totally support tax cuts for the wealthy
Haven't you all noticed? It's only the largest event in modern history.
Talk about bizarrely misplaced complacency. Particularly since the US is a trillion in debt to China and has shipped most of the production capacity there as well.
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Of course, methinks they will all of a sudden develop a keener interest in enforcing laws protecting it. Just like other countries as they began to develop their own IP.
I'm a consultant - I convert gibberish into cash-flow.
As more and more the actual design is moving out of USA and all that is left is branding and putting a US friendly face on the product through the branding badge, manuals and tech support. As these Asian brands build up their credibility their brands gain value too: Samsung being a prime example. As this happens, the American brands lose value.
This is happening in all sorts of areas including electronics, car manufacture etc.
Branding is highly lucrative and is what allows Apple to sell an ipod Nano at perhaps 20x its build price. However, branding is not a sustainable business model and won't last forever.
Engineering is the art of compromise.
We've been giving China so much money by outsourcing everything to them. I hope they remember or appreciate our contributions to their rise when they become the superpower.
Answer me this, How did China invent paper, compass, press printing, and gunpowder then?
That's so easy. In the beginning they had their science slider at 100% and culture at 0%. Paper, compass, and printing press are pretty easy to get to anyway. Gunpowder they probably made a bee-line for. After that they probably dropped the science slider to 0% and pushed the culture slider to 100%. That works great for happiness in your cities. They did it wrong though, seeing as we (the US) were able to produce a bunch of pop singers and a bunch of rock bands. They also just tried to spam farms and everyone knows that doesn't work. You gotta do cottage spam (US suburbs) so you bring in the commerce. And you can't just stop at gunpowder, you gotta at least go for rifling--that's probably why Japan set them so far back in the war.
Anyhow, cultural victory for the win!
Zheng He's massive fleet is about as historically proven as Noah's.
John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
What's that got to do with the price of tea in China?
This "new cultural revolution" you're talking about is not the Cultural Revolution event in the 60's. A new cultural revolution does not erase history. And it does not somehow make paper and compasses inventions of Modern China's culture.
Competition is good for technology because it means people have to come up with new and exciting ideas to try and stay ahead of the game. China has millions of workers who are hard working and able to work cheaply so should be able to invent some pretty good stuff. The US will need drastic to make changes to stay ahead of the game. The stereotypical perception of the fat, lazy American is going to have to be made a thing of the past. Americans are going to have to work hard and cheaply to compete. They can't afford to keep with the status-quo. It'll be interesting to see what happens in the future with both countries. Hopefully there will be a new space race and some good computers built by both sides.
Basically this is the first step towards moving China's labor force from a cheap commodity everyone wants to an expensive resource that will compete directly and fairly with labor in the USA and Western Europe. Realistically China will join the USA and Western Europe and outsource the labor to somewhere else. May be Africa will be the next China and provide cheap labor that free markets need to exist. I mean with out slave labor how can you keep the costs of products down while keeping the board members and upper management teams in their G5 jets and billion dollar bonuses, right???
I don't think culture is what is being referred to here as the success of western civilization. I think what is being referred to here is the exponential development in every endeavor that has happened in the West. While the East and Near East have stagnated for centuries, the West has been a crucible of innovation due to intense warfare and competition. We went, in the space of just 100 years from Napoleon to WWII - from smoothbore muskets and field guns to machineguns, battleships, computers, modern surgery, antibiotics, jet aircraft, and nuclear power/weapons.
As far as pragmatic creativity and innovation go, modern Western civilization has been on the order of a Pre-Cambrian explosion. Nothing like it in history - it's truly staggering when you look at it that way.
I think that is what is meant. Empires? Feh! Going from blood-letting and medicine men chanting over chicken bones to mapping chromosomes and gene therapy - now THAT is what conquers worlds. That is what makes us unique. We need to hang onto that.