My background is with my own company and those I work with. I meet and deal with reps from many companies and they fill in the blanks on what is going on. I even am lucky enough to meet some of the Americans that are on site when they come here to meet with us. They fill us in on how things work and don't work.
China is not America or even a Western company and you really have to look at it differently.
You can not judge them in western terms as they are a very different culture at a very different time in their history.
In this country the government wants the blessings of capitalism but they also want to remain in full control of their country.
The west MFG want in as this country is the largest and fastest growing market for good in the world. The government is willing to look the other way to get what they want intellectual property and technology. In many cases if you make a product there you have to partner with one of their own companies and you also have to share the technology of what you make there.
Sure cost are lower to make things but the growing consumer market there would draw so many companies there anyways. It is a matter of survival as economically many would have failed with out being in that market. Just look at the income GM gets from China sales alone.
As for China they are not a country of ethics. As like Russia it is a culture of almost anything goes if there is an advantage in it for them.
China also has the ability to make anything at any level of quality as needed. They can make the most advanced Smart Phone but yet they can make the same tools that rust in your tool box. Most of it is all about how the western companies manage their ties. You have to have feet on the ground.
The people there are also very diverse too. Some are people who came in from the country looking for work and better life. Companies will offer dorms to give them a place to live and eat. They send the money home. Often they will change jobs because one company will offer better food and the same wage.
Others are doing well and would be termed middle class in America. Some also are to the point they have started business and they have the plants in China but will live in Hong Kong where things are a little more lax. The government looks the other way as long as they provide the government with what they want.
There is a lot of fighting over control and corruption in the government. We seldom hear or see it here but it goes on.
The economy over there is not all Rosie. There is a lot of property that remains empty as no one can afford it. There are Cities that have been built and few people living in them. They have had a housing bubble and it is on the verge of bursting.
The government jerks people around with money values and regulations are only for what benefits China.
China is that market where you hate to go to but with the way the global economics are you have to go or risk failure. We have made some bad deals with the government and lost much of our leverage. We need to get this back and make things a little more fair.
In the mean time American firms are trying to make their way with these issues and some do well and some get burned as they get in over their heads.
The first thing all of us here need to learn is not to underestimate China. The thinking that all they make is crap is wrong. Also they are not the most ethical people there today. They are hard nosed and out for themselves no matter if it is always legal or right.
Also they are not going to go away and we just need to make better deals and work to earn more leverage we can use in making our deals. For too long they have called the shots with everyone else. If they economy slows their value drops. I hope we can make them see that.
As for marginal business with other companies. Like I stated before many will have forgings or castings done there and then ship them to the states for finishing with machine works and then boxed. they term it made in the USA right on the product. While partially true there is still an element it is still not in a way.
Also many plants in Mexico are staffed with Chinese workers and engineers. They are setting up production for many electronics there and appliances.
[This message has been edited by hyperv6 (edited 12-21-2016).]
