End of Cheap from China

July 22, 2010

I find it interesting and amusing to read this obsession in the West about China’s labor practices.  Most of what I read in the media and comments to Blog posts have a superior tone as if these people come from a culture that is paradigm of virtue.

No one in the West has earned a seat to sainthood.  In an Associated Press piece by Elaine Kurtenbach, we see Western corporate greed dripping dollar signs from hungry vampire fangs in these quotes about China, “Many companies are striving to stay profitable by shifting factories to cheaper areas farther inland or to other developing countries, and a few are even resuming production in the West.… I have 15 major clients. My job is to give the best advice I can give. I tell it like it is. I tell them, put your helmet on, it’s going to get ugly,” said Goodwin…”

From BindApple.com comes this statement as if no one else in the world works these hours, “Foxconn and Inventec are two powerful brands that not many of you heard of. When Apple signed a partnership with these manufacturers, the average worker, lived and worked in the factory, doing more than 60 hours of work in a week.”

America and most Western nations are not paradigms of virtue. Labor in the West didn’t get where it is today without a struggle. All one has to do is look at history to discover what it took to earn more for less hours and be treated with “some” respect in the workplace.

If you spend time at the AFL-CIA’s Labor History Timeline in America, you will discover that in 1791, the first labor strike in the building trades took place in Philadelphia demanding a 10-hour workday bill of rights. In 1835, there was a general strike for a 10-hour workday in the same city.

When there was a national uprising of railroad workers in 1877, ten Irish coal miners were hanged in Pennsylvania and later nine more were hanged. Then in 1914, there was the Ludlow Massacre of 13 women and children and 7 men in a Colorado coal miners’ strike. In 1934, during the Great Depression, there was an upsurge in strikes, including a national textile strike, which failed.

Click on the Child Labor Public Education Project and you will learn that “Forms of child labor, including indentured servitude and child slavery, have existed throughout American history.” In fact, “(American) factory owners viewed them (children) as more manageable, cheaper, and less likely to strike.”

This situation in the US didn’t change until, “Child labor began to decline as the labor and reform movements grew and labor standards in general began improving, increasing the political power of working people and other social reformers to demand legislation regulating child labor.” Even then, it wasn’t until 1938 that child labor laws were enacted to protect America’s children from exploitation.

So, if you are one of those paradigms of virtue who feels the need to criticize what is going on in China today, consider America’s labor history before you open your mouth or finger dance your computer keyboard.

It took more than two-hundred years for the US to reach the place it is today with a standard 40-hour workweek with benefits and overtime pay for many workers, while removing child labor from the workplace.

China didn’t start until 1950, when Mao created laws that made women equal to men. Progress stopped during Mao’s Great Leap Forward and his Cultural Revolution, which went on for almost thirty years.

Since 1980, China has had about thirty years to evolve, while in America the income gap between the rich and poor widens as if the US is taking backward steps while union membership shrinks.

In fact, Chinese manufactures may be building plants in the US to take advantage of cheaper labor. After all, Japanese companies like Toyota and Honda have already done that.

See The Reasons Why China is Studying Singapore or Where Did All that Pollution Come From?

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Lloyd Lofthouse is the award-winning author of the concubine saga, My Splendid Concubine & Our Hart. When you love a Chinese woman, you marry her family and culture too. 

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Jousting With a Reluctant Dragon

July 19, 2010

The evidence says that America doesn’t want to share its global “Super Power” status with anyone.  In U.S. Missiles Deployed Near China Send a Message, Time shows that the US mindset concerning the military and war stays strong. 

However, it must be confusing to Americans when the Feds continue to justify spending heavily on defense at the same time that China cuts its defense spending in half, and Time asks Why Is China Slowing its Military Spending?

China has one aircraft carrier.

In fact, Time says, “China’s 2010 military budget, which is awaiting legislative approval, will be $78 billion. That would make it second only to the United States, which for 2010 has a total budget of $663.8 billion. U.S. spending is equivalent to 4.7% of the nation’s GDP, while China’s defense outlay equals about 1.5% of its estimated 2010 GDP.”

What’s wrong with the Chinese? Don’t they know America’s military industrial partnership “needs” a bad cop to scare the American people to justify maintaining the most expensive and powerful military on the earth?

Too bad most Americans still don’t live on farms. When America was rural, the people were not as warlike. Before Pearl Harbor was bombed, most Americans didn’t want anything to do with war. The same situation happened in World War I when almost half of the people lived on farms and in small communities, which is sort of like China today with 700 million living in rural areas.

See When the Generals Laughed

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Lloyd Lofthouse is the award-winning author of the concubine saga, My Splendid Concubine & Our Hart. When you love a Chinese woman, you marry her family and culture too. 

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Naked Capitalism Gets it Wrong about China

July 18, 2010

Yves at naked capitalism provided a perfect example of Sinophobic comments when writing about doing business in China. In GE CEO Immelt Gets Pissy About China, Obama, I agreed with Yves when he pointed out the hypocrisy of a US corporate executive complaining about how Chinese officialdom is not supportive of GE’s business goals.

However, Yves then quotes “Poorly Made in China: An Insider’s Account of the Tactics Behind China’s Production”  and selected quotes like “Chinese manufacturers cut corners wherever they can, from product quality to factory equipment and maintenance…”  Before you believe everything Yves writes about doing business in China, I suggest you check out what China Law Blog says on the subject. 

I have met Westerners doing business in China, and those who are carless get burned and others, who do their homework and know what they are getting into, have few if any complaints. When a careless, lazy deal with a Chinese manufacturer turns sour, a careful examination often shows that the fault lies with the foreigner—not the Chinese. Understanding China’s culture and laws is the key to success.

See Bob Grant’s guest post about doing business in China

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Lloyd Lofthouse is the award-winning author of the concubine saga, My Splendid Concubine & Our Hart. When you love a Chinese woman, you marry her family and culture too. 

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The Coming Apple-Google War in China

July 14, 2010

No wonder Google backed down on their threats to pull out of China.  There’s much money to be made from China’s growing middle class, but Google’s headaches are not over yet thanks to Apple.

The China Tracker, Paul Denlinger, reports that Apple has opened its second store in China’s Shanghai Pudong district, and it features the world’s largest pieces of curved glass. In addition, Apple plans to open 25 more stores in China by the end of 2011 where computers, iPhones, iPods, and iPads will be sold.

Why does this mean war between Google and Apple? Because Google is selling its Android platform (mobile phones, etc) to the Chinese consumer, but Apple and other competitors have a sweater deal. You’ll need to read Denlinger to learn the details.

Apple’s edge comes from having most of its products assembled in China and a deal with China Unicom to buy its products so Apple has no risk since there is a no return policy. The risk belongs to Unicom.

In fact, Google’s decision to confront China’s government over censorship was not a good idea since it has tainted Google’s image in China while increasing it in the West where the Chinese consumer does not shop. Meanwhile, the winner will probably be the Chinese middle class when these two giants have a price war to see who wins.

See Doing Business in China

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Lloyd Lofthouse is the author of the award winning My Splendid Concubine and writes The Soulful Veteran and Crazy Normal.

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Big Brother is Watching — Who?

July 13, 2010

There are more than 4 million security cameras in the UK—one for every fourteen people. Many have been installed by businesses but more than a million are cameras controlled by the government and/or police. Source: London Evening Standard

Recently, I read a piece from Voice of America about China Tightens Xinjiang Security, Targets Tibetan Environmentalist.

CIA Map of China

The lead paragraph says, “China has installed 40,000 security cameras throughout the capital of Xinjiang region days before the first anniversary of the country’s worst ethnic violence in decades.”

As usual, there is no mention that next-door a war is raging against the Taliban and Al-Qaeda. There is no mention of Pakistan’s struggle with the same enemy that NATO and US forces are fighting.

In fact, if you look at a map of the region, you will see that Urumqi, the capital of Xinjiang province, is close to KyrgyztanKazakhstan, Afghanistan and Pakistan, all areas having trouble with Islamic fundamentalists but in China, the Muslims are a peaceful ethnic group according to the Western media. That’s interesting.

If Britain, a democracy, puts up more than 4 million security cameras to deal with crime and unrest in the UK, why can’t China do the same without being criticized? Did you know that local governments in the US are installing these cameras too? Source: MSNBC

Learn more about Minority China

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Lloyd Lofthouse is the award-winning author of the concubine saga, My Splendid Concubine & Our Hart. When you love a Chinese woman, you marry her family and culture too. 

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