Genuine question, if they have so much excess capacity and low domestic demand, wouldn't it be easier to just export to other countries? Or are there barriers put in place in the world stage that limits this?
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China's manufacturers are going broke
61–70 of 229 posts
Re: China's manufacturers are going broke
#62It’s pretty simple, Chinese companies need to lower Chinese wages, reduce costs, reduce profit expectations, provide lower cost shipping to ports, guarantee the quality of their product once it arrives in North America not pay when it leaves the factory.
We want $1 products again at dollar tree (not $1.25 tree), and better quality for less money.
Otherwise we will just make the stuff in the USA ourselves. One day we will get smart and export more TO China because no one in China trusts the quality of anything made in China
Re: China's manufacturers are going broke
#63Earlier quoted context omitted.
Not a good example because Boeing didn’t outsource. China flies Boeing airframes made in the US and has for the last 50 years. Boeing is an example of financiers running the company from an ivory tower on the other side of the country.
Boeing’s entire problem was not realizing they were offshoring by moving to a location with no engineering culture. Getting quality out of a right-to-work state is difficult.
Tell that to the French
Re: China's manufacturers are going broke
#64It’s pretty simple, Chinese companies need to lower Chinese wages, reduce costs, reduce profit expectations, provide lower cost shipping to ports, guarantee the quality of their product once it arrives in North America not pay when it leaves the factory. We want $1 products again at dollar tree (not $1.25 tree), and better quality for less money. Otherwise we will just make the stuff in the USA ourselves. One day we…
Personally, I have been coming more around to Chinese manufactured goods. It used to be low-end crap 30 years ago, but they are market leaders in many sectors today and probably even more tomorrow. I recently drove a Chinese (ICE) SUV for the first time and was blown away by the fit, finish, and price.
Re: China's manufacturers are going broke
#65Earlier quoted context omitted.
> Not a good example because Boeing didn’t outsource. No, that's precisely my point actually. Boeing is one of the very few companies that maintained its local manufacturing capacity. (to say that they "didn't outsource" is not remotely accurate) Despite everything that was pointing in Boeing's favor -- culture, financials, market, reputation; it was taken over by the MBAs that put McDonnell-Douglas into a nosedive a…
Aah the McDonald excuse again. The favorite pivot of every boing apologist and conspiracy theorist. If only Mac, a completely successful defense contractor, hadn't somehow engineered a completely galaxy brained backdoor purchase of their largest competitor Boeing like a tapewirm because they needed cash after the f112 cancellation they never would have lost that engineering led spirit. Get over it. Boeing wasn't doin…
I was there at the time, so was my mom; quite a few of my friends. The McDonnell merger was the death knell. I'm not saying that everything was rosy and without challenge, but moving corporate to Chicago triggered massive changes throughout the hierarchy. And those changes are now visible as rot and corruption.
Re: China's manufacturers are going broke
#66It feels like The Economist and other Western oligarch media have been saying that China is going to collapse "next week" for decades. Almost like they have some sort of anti-reality agenda.
The reality of China is that their GDP stats are so systematically faked and so clearly don't add up that nobody actually knows whether China is economically healthy, not even Xi Jinping.
In such a scenario, China could collapse at any time, and past performance is not a predictor of future results.
Re: China's manufacturers are going broke
#67Earlier quoted context omitted.
Those places are Vietnam and Africa, and it's already happening.
In VN, Chinese manufacturers tend to compete directly with SK and JP FDI, so the RoI isn't too hot, and Chinese manufacturers face the same hurdles American manufacturers faced when entering China (eg. Forced JVs, ToTs, etc)
VN - Vietnam
SK - South Korea
JP - Japan
FDI - Foreign Direct Investment
RoI - Return on Investment
JV - Joint Venture
ToT - Transfer of Technology ?
Re: China's manufacturers are going broke
#68Earlier quoted context omitted.
China was actually trying to heavily establish offshoring in the Philippines—but that has seemingly dried up with the increasing South China Sea tensions.
Looks like militarism and imperialism are not compatible at that crazy new 21th century world. IMO, that's a good development. I hope it lasts.
Uh, and what would that mean for the United States? China hasn’t been at war with anyone for decades.
Re: China's manufacturers are going broke
#69Earlier quoted context omitted.
In VN, Chinese manufacturers tend to compete directly with SK and JP FDI, so the RoI isn't too hot, and Chinese manufacturers face the same hurdles American manufacturers faced when entering China (eg. Forced JVs, ToTs, etc)
VN - Vietnam SK - South Korea JP - Japan FDI - Foreign Direct Investment RoI - Return on Investment JV - Joint Venture ToT - Transfer of Technology ?
You two are funny. Looks a bit like good cop, bad cop.
Informative, though!