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Q: Will foreign companies ever smarten up and start retaliating against China?
Every day in the newspaper the Chinese media is demonizing some foreign company for some minor infraction, it's all part of their effort to strengthen domestic brands. They often targer Wal-mart, I would LOVE it if WM just said "screw you" and just started buying products made in other developing nations.
I mean, these companies come here, set up places that provide jobs and help train locals. In return, China pirates their ideas, steals their copyrights and tries to pass it off as their own and demonizes them.
Seriously, when is the god damn line going to be crossed?
12 years 21 weeks ago in Business & Jobs - China
Problem is that China is still to valuable a market to pass on. Most car companies sell more cars here now than in America.
Walmart pioneered cheap China production 20 years ago, and has too much invested to move it.
The government knows this and is using it as leverage in its propagando war.
If you want to do business here, you pretty much need to suck it up, and take it up the ass, otherwise you miss out.
Besides Walmart here sucks compared to back home.
nevermind:
True, but alot of these places are moving operations to Vietnam and such now. The transport infrastructure is not yet there, but it wasn't here 20 years ago.
thedude:
Yes Vietnam is up and coming and cheaper, and even my company is shifting some production there now, but we don't own factories in China, like many companies, we just hire them. I think WM is different.
crimochina:
i firmly believe it's a setup locals are doing this from the inside and then getting a cut. because this is not what walmart does in the states, carrefour , metro in their countries also. sth is going on behind this
foreign companies will not wise up because as dude stated , they still benefit or at least believe they will benefit. people in europe, america, aus, canada etc are the ones who have the potential to effect change but we just dont have the will to do it. i dont know how politics work in other countries but in america international corps have purchased the democrats, republicans and judges so the american govt will continue to adopt policies that benefit intl corps and right now that means low tariffs with china and other policies that allow them to setup shop in china and sell their crappy goods back in the states. in some cases taxes payers front the costs for companies to setup shop abroad.
Ignoring Benny's oh-so-tactful-yet-not-so-informitive reply...
The reason they don't is for multi-faceted.
1) Any press, good or bad, is good press. Have you ever seen short lines at WM despite any stories spread?
2) Money. WM has huge amounts of capital assets in China and moving them to anyplace else would be an enourmous cost. To offset that cost would be almost impossible for any developing country to match in incentives.
3) Most developing countries don't have the raw resources needed by a giant like WM. They would experience goods shortages and that is equivalent to shooting themselves in the head.
4) Money. (Yes, it is worth mentioning again.) The Chinese government is giving them enormous incentives to run their plants here in China. Including free land and slim to no taxes on shipping goods.
5) Many more details dealing with political influence, bought officers and economic stability come into play, but they are to complex to go into detail about.
As much as they may hate what China does sometimes, the cost benefits still outweigh any discomforts caused.
Xpat.John:
Till another country has the infrastructure to replace China or when the costs outweigh the benefits. Either way, I think that time is a long way off for WM.
Xpat.John:
Vietnam is a close contender. Thailand isn't that far away either. And Cambodia is coming up fast. But they are all a minimum of 20 years behind where they need to be in order to be the new China.
Xpat.John:
India is a curiosity. It has the people, but for some reason, it lacks the basic infrastructure. If they ever get their act together, they will be a major force to contend with.
nevermind:
What India has going for it is its English skills and management. But, the government can't seem to draw business in.
Shining_brow:
But, compare India's government to China's... it's really not that much of a problem if they decide to really do something about it. Africa will really be the place to go. It's about to BOOM!
just follow the yellow prick road...................OOps sorry typo there.
Companies won't 'retaliate' so long as not doing so makes a profit. When they start making losses then you may see some 'righteous indignation' and 'moral repugnance', but not before.
Trouble is these 'western' companies are trying to beat the uber Capitalists using capitalist methods (the only ones they know), and as such are doomed to fail.
US customs officials seize 20,000 pairs of fake shoes in LA
Published August 15, 2012
Associated Press
LOS ANGELES – Federal customs officials have stopped more than 20,000 pairs of counterfeit luxury shoes from tip-toeing into the U.S. from China.
U.S. Customs and Border Protection Spokesman Jaime Ruiz says four shipments of fake Christian Louboutin shoes were seized Tuesday, and another shipment was seized July 27.
Ruiz says the shoes could have sold for a total of $18 million in the U.S.
Xpat.John:
18,000,000 / 20,000 = US$900 per pair. Anyone who would pay $900 a pair for shoes deserves to get fakes.
mArtiAn:
Unless they've got some kind of Roadrunner rockets attached to the sides, any pair of shoes that claims to be 'worth' $900 is a fake.
diverdude1:
looks like they got their math wrong on that story...
I agree, no pair of shoes is worth $900. I would go maybe $400 for a finely crafted pair w/ Alligator skin. Throw down six bills for Alligator cowboy boots though..
www.upscalemenswear.com
dont forget a lot of western governments took off trade tariffs
the consequence is it is cheaper to by from overseas than it is to buy a local product
so places like Aus and alike are now Nations of consumers
I agree with everyone that has said as long as it is profitable for them, they will see no evil, hear no evil, speak no evil..............except for google which left the mainland a couple years ago.
Wikipedia ain't here either.
Actually saw Jimmy Wales talk about China once and he told a story about some official he met who said "wikipedia is behind in China" because wales won't edit sensitive info out for them. He responded "China is behind in wikipedia, which is awesome of him
