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How long will China remain competitive   [Copy link] 中文

Post time 2011-12-6 18:33:48 |Display all floors
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Roach Exterminator

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Post time 2011-12-6 19:11:16 |Display all floors
This post was edited by NE_Tigress at 2011-12-6 19:12

Robots?

Foxcomm for example is said to introduce 1 million robots in the next 3 years. Will it reduce cost?

Foxcomm is also relocating much of its production to inland places where costs are cheaper.

Due to the one-child policy, cheap labor is becoming less and less in China.

Btw, good to see you back zglobal. {:soso_e181:}

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Post time 2011-12-6 19:43:44 |Display all floors
It's true. But Vietnam isn't much of a big country like China. What it took China 20 or more years to become costly, it will take Vietnam less than 10 years to be costly at this rate of industrialization.

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Post time 2011-12-6 19:45:07 |Display all floors
How far can they go before China lacks a competitive advantage?


Oh, please, ZGlobal,
go back and look up the concept of Comperative Advantage again.

You can loose a specific competetive Advantage,
but you can never be devoid of any comparative Advantage.
In todays world they may change frequently,
one will be lost to another player,
but, alone due to the fact of one being lost, another is already gained.
您买象牙 - 您杀了大象!
http://v.youku.com/v_show/id_XNjU1Nzg0NDky.html - “用现代文明标准比划中国人,是严重的种族歧视行为。”
„Ich ficke wo, wen, und wann ich will, hast du mich verstanden. Auch du könntest ficken, aber du kannst es ja gar nicht, deine deutsche Genauigkeit... verbietet es dir“. Jean-Claude Juncker

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Post time 2011-12-7 10:21:28 |Display all floors
zglobal Post time: 2011-12-7 08:50
Well none of that really answers questions. I'm not just talking about Vietnam. The Vietnamese peopl ...

How long will China stay competitive? My personal guess is for much of the 21st century. There are no real competitors in south or SE Asia, neither now, nor in the the next ten or fifteen years to come. Countries with mediocre or rotten infrastucture will always have a disadvantage. Of course some low end products will be shifted down south but this is a normal procedure because China is already now mainly working in high end products.

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Post time 2011-12-7 10:37:26 |Display all floors
In most factories in the world today robots are already being used for the types of jobs
that robots do best such as placing parts on circuit boards, moving sub assemblies
from work station to work station, and other such repetitive tasks.
As products become more complex a combination of cheap labor and skilled labor
becomes more important than simply cheap labor. I think China will continue to have
an advantage in this type of labor force.
Solyndra, the US solar cell manufacturer that recently went bankrupt, had a leading
edge robotics manufacturing plant but that didn't help them. You need a product
that will sell. The factory was said to be 'lights out' which means almost no humans
are needed. Their product had a substantially higher cost per watt produced so the
cheaper and more conventional Chinese solar cells ran them out of business.
Too much is said of 'having their own brands'. Most people, except Apple freaks,
don't care much about what brand they buy as long as it works. Just as most
people, except elementary school students, don't care if they have the latest
lunch box. They just want something to carry their lunch in.
If you want an Apple type of business then you need to go to Madison Avenue
and hire a group of top notch marketing geniuses, not a group of scientist and
engineers.

If capitalism promotes innovation and creativity then why aren't scientists and artists the richest people in a capitalist nation?

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Post time 2011-12-7 11:29:43 |Display all floors
zglobal Post time: 2011-12-7 12:04
Satsu, you are right....but we should not think that competition wll come from Asia alone. As sala ...

Salaries are still far away from western levels. Moreover I know of quite a few companies which will  relocate to western China rather than taking the risk of shifting to the south. Yep, China will lose some lower end manufacturing but this is no reason to shed tears about.

Restructuring is taking place as we speak and peronally I'm confident that this will do much more good than harm to China. I'm sure in one year's time we talk about the effects of shifting abroad as mainly a non event.



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