G2Rad
16th September 2010, 12:45 PM
reading the cnbc article
America, you are the tail now. China became the dog.
Companies here in China’s industrial heartland are toiling to reinvent their businesses, fearing that the low-cost manufacturing that helped propel the nation’s economic ascent is fast becoming obsolete.
The TAL Group, which operates an immense garment-making plant in this coastal boom town, is moving beyond piecework by helping J. C. Penney electronically manage its inventory of dress shirts, from factory floor to retail shelves as far away as Connecticut.
Chicony, maker of a power device used in the Xbox from Microsoft and a major supplier of computer keyboards to Dell , is diversifying by opening department stores, with three so far around China and seven more planned.
And after years of assembling vacuum cleaners and rechargeable toothbrushes for Philipsand other Western companies, Kwonnie Electrical Products is planning its own line of home appliances.
“We want to do more original design and build our own brand,†Benjamin Kwok, a company founder, said during a recent tour of a sprawling factory complex that has 3,000 workers, a huge warehouse and labs for testing juice makers, vacuum cleaners and other appliances.
“Many customers won’t be happy with the decision to compete with them,†Mr. Kwok said. “But we have no choice.â€Â
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Notice how Americans, who used to be the "ownes" now are just "customers/competitors".
how stupid of you America was to give away your technology and equipment for TEMPORARY profits
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For years, factories here in the Pearl River Delta region have served as the low-cost workshops for global brands, turning this part of China into the nation’s biggest export zone. The city of Dongguan, about 35 miles northwest of Hong Kong, has long churned out toys, textiles, furniture and sports shoes  including hundreds of millions of sneakers a year for companies like Nike and Adidas.
But now China looking to create a consumer middle class, experts say the revamping of this region’s industries could help reduce the nation’s wide income gap and encourage more balanced and sustainable economic growth.
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fairwell Nike and Adidas. go into oblivion.
how stupid of you it was to give away the technology and equipment for TEMPORARY profit.
without technology and equipment, how will you compete with them now?
------------------
“It is my hope that China’s comparative advantage as a low-wage producer does disappear  the sooner the better,†Fan Gang, an economics professor at Peking University, wrote in a recent essay, adding that China needed to upgrade and embark on “the next stage of development.â€Â
“We’ve decided that we’re not going to be on the low end,†says Roger Lee, the chief operating officer at TAL Apparel, part of the TAL Group.
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Notice how they are now the decision-makers, America
------------------
TAL, which is based in Hong Kong and says it makes one of every six dress shirts sold in the United States, is expanding into supply-chain management for J. C. Penney, one of its big shirt-buyers. Through an extensive computerized system, TAL can stock and restock shirt shelves in all 1,100 of Penney’s retail stores in the United States, as demand warrants.
“Too much inventory kills retailers,†Mr. Lee said. “Now, we’re managing inventory in each store. We gets sales data. We know what’s in the warehouse, what’s on the boat. We help reduce inventory.â€Â
------------------
Not some American manager, but Mr. Lee controls every six shirt sold in the United States
------------------
“Every company now wants to be a high-tech company, and we want to encourage them,†Mr. Zhu said, as he headed for an electronics factory, where he would inquire about profitability.
The national government has preferential tax policies to encourage technology companies, and the Qingxi district government has a research and development fund  officials decline to say how much money it has  to support efforts.
One company that has already received government money for research and development is a division of Lite-On Technology, the electronics supplier.
America, you are the tail now. China became the dog.
Companies here in China’s industrial heartland are toiling to reinvent their businesses, fearing that the low-cost manufacturing that helped propel the nation’s economic ascent is fast becoming obsolete.
The TAL Group, which operates an immense garment-making plant in this coastal boom town, is moving beyond piecework by helping J. C. Penney electronically manage its inventory of dress shirts, from factory floor to retail shelves as far away as Connecticut.
Chicony, maker of a power device used in the Xbox from Microsoft and a major supplier of computer keyboards to Dell , is diversifying by opening department stores, with three so far around China and seven more planned.
And after years of assembling vacuum cleaners and rechargeable toothbrushes for Philipsand other Western companies, Kwonnie Electrical Products is planning its own line of home appliances.
“We want to do more original design and build our own brand,†Benjamin Kwok, a company founder, said during a recent tour of a sprawling factory complex that has 3,000 workers, a huge warehouse and labs for testing juice makers, vacuum cleaners and other appliances.
“Many customers won’t be happy with the decision to compete with them,†Mr. Kwok said. “But we have no choice.â€Â
----------------------------------------
Notice how Americans, who used to be the "ownes" now are just "customers/competitors".
how stupid of you America was to give away your technology and equipment for TEMPORARY profits
----------------------------------------
For years, factories here in the Pearl River Delta region have served as the low-cost workshops for global brands, turning this part of China into the nation’s biggest export zone. The city of Dongguan, about 35 miles northwest of Hong Kong, has long churned out toys, textiles, furniture and sports shoes  including hundreds of millions of sneakers a year for companies like Nike and Adidas.
But now China looking to create a consumer middle class, experts say the revamping of this region’s industries could help reduce the nation’s wide income gap and encourage more balanced and sustainable economic growth.
------------------
fairwell Nike and Adidas. go into oblivion.
how stupid of you it was to give away the technology and equipment for TEMPORARY profit.
without technology and equipment, how will you compete with them now?
------------------
“It is my hope that China’s comparative advantage as a low-wage producer does disappear  the sooner the better,†Fan Gang, an economics professor at Peking University, wrote in a recent essay, adding that China needed to upgrade and embark on “the next stage of development.â€Â
“We’ve decided that we’re not going to be on the low end,†says Roger Lee, the chief operating officer at TAL Apparel, part of the TAL Group.
------------------
Notice how they are now the decision-makers, America
------------------
TAL, which is based in Hong Kong and says it makes one of every six dress shirts sold in the United States, is expanding into supply-chain management for J. C. Penney, one of its big shirt-buyers. Through an extensive computerized system, TAL can stock and restock shirt shelves in all 1,100 of Penney’s retail stores in the United States, as demand warrants.
“Too much inventory kills retailers,†Mr. Lee said. “Now, we’re managing inventory in each store. We gets sales data. We know what’s in the warehouse, what’s on the boat. We help reduce inventory.â€Â
------------------
Not some American manager, but Mr. Lee controls every six shirt sold in the United States
------------------
“Every company now wants to be a high-tech company, and we want to encourage them,†Mr. Zhu said, as he headed for an electronics factory, where he would inquire about profitability.
The national government has preferential tax policies to encourage technology companies, and the Qingxi district government has a research and development fund  officials decline to say how much money it has  to support efforts.
One company that has already received government money for research and development is a division of Lite-On Technology, the electronics supplier.