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China vs US: who is copying whom?   [Copy link] 中文

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Post time 2017-9-22 14:38:30 |Display all floors
sfphoto Post time: 2017-9-22 12:59
Where are Adidas shoes made? Germany?



You may not believe me - there still are traditional shoemakers in Europe that will craft a pair of shoes just for you. Of course, they will set a price that you need to be willing to pay. They don't care about China's laobaixing.

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Post time 2017-9-22 14:41:45 |Display all floors
sfphoto Post time: 2017-9-22 12:59
Where are Adidas shoes made? Germany?
Shoeing into Ethiopia
By Zhao Yanrong and Chen Yingqun ( China Daily )
Updated: 2012-12-25 07:50:04


 
Seyoum Mesfin, Ethiopian ambassador to China, says his country prefers the non-intervention policy that Chinese investors follow when doing business there. Zhao Yanrong / China Daily

East African country welcomes Chinese manufacturers to take on a larger presence
As China's labor, manufacturing and resources costs continue to rise, Ethiopia, one of the least-developed countries in the world is hoping Chinese companies will consider opening more factories there.
"China is one of our country's main donors in building infrastructure, a big constructor and a major technology provider," said Seyoum Mesfin, Ethiopian ambassador to China. "But China will also be a major factory owner in Ethiopia and a big market for products made in Ethiopia in the future.
"Chinese companies are assembling goods in Ethiopia to ship back to China, which is more profitable than producing in China today."
Mesfin said a good labor supply, low energy costs and high-quality materials support development in his country.
It was with plentiful labor, low-cost manufacturing and an export-driven economy that China accomplished its rapid development over the past three decades, and that is the model Ethiopia wants to borrow from.
To follow in the footsteps of Chinese constructors and engineers of its infrastructure, the Ethiopian government has been inviting more manufacturers in recent years, making two industrial zones available for entrepreneurs to set up business.
Huajian, a shoe maker, is one of the best known Chinese manufacturers in Ethiopia.
The company is an original equipment manufacturer from Dongguan in Guangdong province for leading global brands such as Calvin Klein, Coach and Louis Vuitton. After a meeting Ethiopian senior government officials last year, Huajian opened its factory near the country's capital, Addis Ababa, using an investment of $2 billion, which will create more than 100,000 jobs for local communities over the next decade.
"Ethiopia is an important manufacture base for us since we are going to be the OEM for world brands," Zhang Huarong, chairman of Huajian International Group, said during the World Footwear Development Forum in Dongguan last November.
Zhang said a manufacturer should not only be able to build its own reputation, but also should be able to help others by providing insight on global strategy.
"Within China, there are few opportunities to extend our manufacturing capability quickly," he said. "The best we can do is to maintain the status quo. But in Ethiopia, which is like China 30 years ago, we find many possibilities to make our business even bigger, with sufficient supplies of raw materials and labor. It's a beneficial business for the company and local people."
By the end of April, the company had opened three assembly lines in Ethiopia and hired 630 local workers in addition to 160 Chinese employees. A big contributor to Ethiopia's international trade, Huajian produces more than 2,000 pairs of shoes a day, all exported to Europe and the United States.
Three more Chinese companies started operating in Ethiopia in September and October.
"It's exciting to see more Chinese companies moving to Ethiopia," the ambassador said. "They bring excellent experience to our garment and textile industry."
With 85 million people, Ethiopia is the most populous country in East Africa. The ambassador said more than half of the population is engaged in productive labor. The average wage for workers in Addis Ababa is 300 yuan ($48) per month, a quarter of that in Dongguan, one of China's main manufacturing bases

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Post time 2017-9-22 17:59:12 |Display all floors
This post was edited by sfphoto at 2017-9-22 19:08
seneca Post time: 2017-9-22 14:30
Where are M.T.U. engines made for China's diesel locos? In Germany, of course.

Diesel locomotives? That's old, really old technology invented some 100 years ago.

China has developed its own permanent-magnet synchronous electric traction-motor for high-speed rail AND has deployed its own TD-LTE wireless broadband networks for high-speed rail AND has launched its own high-temperature superconductive magnetically-levitated trains AND is starting its own evacuated-tube maglev train project called the "Flying Train" AND holds the speed record for high-speed rail at 350 km/hr AND has launched the Chinese "fuxing" standard -- its own indigenous design of high-speed rail trainsets -- with theoretical maximum speeds of 400 km/hr AND has built more high-speed rail ines in the last ten years than ALL of the entire world combined in the last 50 years.

Need I say more?

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Post time 2017-9-22 19:19:11 |Display all floors
seneca Post time: 2017-9-22 11:19
How uninformed a poster can be if his prejudices and ideological phantoms rule supreme in his thin ...
A weird argument. In European countries, between 80 to 90% of businesses are owned by FAMILIES, i.e. they generally are small or medium enterprises. Even big companies sometimes are owned by families, so the ownership rights on companies are distributed rather wide across the nations. Maybe that is why socialist ideas of redistributing the means of production don't have much appeal to Europeans.


I wasn't talking about family-owned SMEs but Capitalist-owned MNCs such as Adidas. I have to admit that I don't know much about Europe but US Corporations financed by Wall Street have all but destroyed the family-owned SMEs in America.

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Post time 2017-9-22 19:32:39 |Display all floors
seneca Post time: 2017-9-22 14:41
Ethiopia is an important manufacture base for us since we are going to be the OEM for world brands


Huajian need to move their factories to Africa because their business model of contract manufacturing for Western brands is a losing proposition in China. The Chinese shoe companies who have succeeded and remained in China are those with their own brands, channels, designs such as ANTA, Li-Ning, 361, etc.

Low-cost manufacturing industries are being relocated to lower-cost countries while high-value service industries are sprouting up like mushrooms in China. Jack Ma even said that training people for factory jobs is just a waste of time because AI (Artificial Intelligence) is going to automate a lot of those repetitive work in factory jobs. According to him, the future is knowledge-based service industries which require creative thinking, interpersonal skills, human interaction, etc.

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Post time 2017-9-22 20:15:41 |Display all floors
sfphoto Post time: 2017-9-22 19:32
Huajian need to move their factories to Africa because their business model of contract manufact ...



You are only rationalizing what I said. China increasingly can no longer compete on the price level. The news about shoe makers moving their plants to Ethiopia is now 5 years old. In the meantime, lots of other factories have relocated at least part of their facilities abroad. Foxconn even is taking manufacturing jobs to the U.S.A.

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Post time 2017-9-24 21:27:16 |Display all floors
I think the point is well-taken, however the process is in its incipent stages, and the future for the world economy is less than hopeful.

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