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Is it Time for the U.S. to Start Copying China?

Posted July 13, 2011 8:00 AM by geanorm

Editor's Note: CR4 would like to thank Larry Butz of GEA Consulting for contributing this blog entry.

I don't read editorial columns frequently, but one caught my eye in last week's Wall Street Journal titled China vs. America: Which Is the Developing Country? The comparisons are simple and should be alarming. How could China come so far so fast?

In 1982 I was working in Shanghai on a project, licensing two Shanghai companies to build reciprocating compressors and light commercial unitary products. I was staying in the Park hotel, the finest in Shanghai, where my shower water could best be described as "chocolate" and the cockroaches kept me awake at night running across the ceiling and up the walls. Evenings walking the streets of Shanghai were "serene" with nothing more than bicycle bells and hushed conversations of the million or so people out for an evening walk.

In a short thirty years China has leapfrogged the US in many ways. Bullet trains whiz between Beijing and Shanghai. Ninety percent of the worlds (high tech) minisplit systems are manufactured in China. All the major HVAC manufacturers have R&D centers in China that are larger than their US counterparts.

There are many, many reasons for this "miracle". I take my hats off to the Chinese for their success and determination to achieve real progress. Their imperfect path to success has been a lot more effective than the path we have been following in the US. The polarization in the US political system is a disaster! Rather than moving forward with a single Plan we dig our heels in and protect our own special interests.

We are moving backwords and need to resolve this mess we are in. We need to forget the old China and look objectively at today's China and the efficiencies they have achieved.

- Larry Butz

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#1

Re: Is it Time for the U.S. to Start Copying China?

07/13/2011 9:57 AM

Sure, China has rocketed forward technologically - but at who's cost?

China has the advantage because they are an oppressive regime with 4.6 million People's Liberation Army personnel - almost all of those military personnel are assigned to control their own population.

China does not recognize international currency standards and plays only by its own rules. China does not recognize intellectual property and goes through great lengths to steal it at any and every opportunity.

The article's attempt to justify China's human rights is a joke. The idea that China oppresses, jails, murders, and tortures and intimidates its own population for the sake of curbing pornography is not even to be taken seriously.

I would rather live free than live under a dictatorship no mater how fast that country is rising in power (economically and militarily).

Of course, just writing those words above would be enough to get me arrested in China.

Fine price to pay for progress, no?

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#2
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Re: Is it Time for the U.S. to Start Copying China?

07/13/2011 10:25 AM

There are many factors involved, and the Chinese are not free by any stretch of the imagination.

But in a nutshell, I would say that the Chinese have discovered that Capitalism is the way to prosperity. The US seemingly has decided that Capitalism is bad, and that only social justice will insure our future as a nation.

So far, I'm not impressed.

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#11
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 12:31 AM

Capitalism is not bad. People are bad. Consequently, Capitalism without regulation allows the people who are bad to hurt everyone else by extracting grossly excessive profits that are not truly or fairly earned but instead leveraged by buying political power.

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#12
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 12:38 AM

Same can be said of Communism, or Socialism, or pick an ism

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#13
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 12:54 AM

Quite true, though there may be restrictions on who can play at what level.

As of yet we haven't invented a system that is fair and impervious to corruption. Probably we won't, because WE are not fair nor impervious to corruption. The human organism is basically defective. Innate traits that enabled us to survive all manner of hard times on the surface of this spaceship Earth are not compatible with a larger civilization. Perhaps if we can keep from destroying ourselves for long enough, we may evolve out of our dysfunctional behaviors. Right.

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#14
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 1:21 AM

Hence I always love it when someone cites "human nature" as a 'valid reason' for some abrogation of social conscience.

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#15
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 1:48 AM

Whether or not it is "valid" or not is a matter for philosophers. Everything we do is a consequence of our nature and our nature is uniquely human. The character of our nature is complex and multifaceted and not equally developed from one individual to the next and to the degree it is "valid" is a matter of judgement from where one may stand. But if not as a consequence of everything we are and have made ourselves to be then of what is it a consequence? To presume abrogation on the part of another based on our own unique projection of the world may hope to simplify a matter of complexity that can never thereto yield nor would there be any effect to attempt to abrogate something that have never been.

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#39
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 4:41 PM

Capitalism is not in the same camp as Communism or Socialism! It is not even in the same "galaxy". You can't compare Capitalism with Comm. or Soc. in how it benefits the people who operate under it's umbrella.

If someone thinks so, it is because they have lost all comprehension about what freedom really is and have been blinded by a philosophy common to many liberals here in this great country of ours, who want a few to control the populace by dictate rather than let the populace dictate through representation. They would rather have a lower level of living; with the people dependent upon them for sustenance (because it makes them feel powerful); than have a bunch of people pulling the cart, making it on their own, without "sucking off the governement tit".

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#42
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 7:29 PM

Might save some angst if you read my post in context. It's simply saying "human nature" exists in all "isms".

But; as I see it, the OP is basically asking if, or how, US 'Arts & Law' managed capitalism can compete with Chinese 'Engineer' managed capitalism.

First up, might be realizing it's post 1976 - I.e. neither communism or capitalism exist

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#43
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 8:10 PM

Capitalism coupled with military and police rule was re-introduced in a small asian country in 1977 with the blessing of USA.

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#44
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 8:14 PM

Remember just because its blessed by the USA, does not mean its good. There are alot of issues going on.

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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 8:26 PM

The UN want to have a "panel"of inquiry into "war crimes" based on a video evidence.If there was no video evidence will UN/UK/USA/Russia/China/Japan/India etc say there was no "human rights violation"from 1948 when that country gained independence from Britishers who developed that country "asymmetrically" so that one racial/religious group will become slaves in the hands of another racial/religious group when britishers left and call it "internal affair","democracy" and cover up crimes by "sovereignty of states".

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#46
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Re: Is it Time for the U.S. to Start Copying China?

07/15/2011 7:24 AM

What, exactly, is the point of your argument?

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#49
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Re: Is it Time for the U.S. to Start Copying China?

07/15/2011 6:36 PM

UN/ILO/Interpol should have its TV station and broadcast news and other programs in all languages of the world employing translators, photographers,armed guards etc in important and troubled areas of every nation. Any one who prevents its staff from going to jails,detention centres,conflict areas etc to be taken into custody and sent to Geneva for investigation. When a problem crops up in a nation ,without informing UN if any country try to solve by buying arms or by inviting army from other countries, both nations should be punished by UN. For the expenses incurred by UN it should impose heavy tax on countries possessing nuclear and heavy weapons,having expanded army,spending too much money in armed forces etc. UN offices world wide should accept complaints directly from countrymen instead of accepting only from a government only as all communities or races in the world are not represented in UN. A nation with only about 200,000 people have a representative in UN while a race with 75million living in many countries do not. Instead of United Nations there should be United Communities. Before UN was formed nobody stopped Hitler from killing Jews. Now also Un cannot do anything but it says it is internal affair in countries like Iraq,Palestine,Srilanka,former Pakistan ,Myanmar etc .but in europe they have created many states recently in Yugoslavia,Czech,former Soviet union etc while not doing anything in Chechenya,Srilanka,Kashmir etc

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#32
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 12:48 PM

Our ability as a people to forget the lessons of our ancestors is almost limitless. I'm self-employed (and have been most of my life), and I eat either 'steak or beans' based on my own abilities or lack thereof. I think that capitalism is the best system currently available for developing and maintaining a productive economy. But it does have flaws, and one of the most glaring is that without appropriate regulation and taxation it devolves into monopoly and oligarchy. Our parents, grandparents, and great grandparents learned this lesson in 1929, and enacted tax laws and regulations to curb the excessive concentration of wealth and power that can choke people's aspirations as surely as a tyranical state.

As those generations have died off, the lessons they learned have faded from living memory, and were replaced by a well planned and financed campaign to roll back these protections, and to assert in a spasm of post cold war celebration, that greed is good and caring about your neighbor's well being is weak and perhaps evil. So we cut taxes for the rich (both income and inheritance), repealed the regulations that kept banks from making risky investments, and now we are again treated to the spectacle of Wall Street collecting a big pile of other peoples money and setting it on fire. It is simple arithmetic that as wealth becomes more concentrated you will reach a point where some very powerful people have more money than brains (the most obvious symptom of this is a series of asset bubbles). This is especially true when as you say, that wealth is 'not truly or fairly earned but instead leveraged by buying political power'.

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#36
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 3:23 PM

Quite so. It is all written in history that is ignored because people fail to appreciate that greed is not an asset. Karl Marx (and no, I'm not a Marxist) described in great detail the risks inherent in Capitalism. Everything that has happened, repeatedly, is outlined in Das Capital, which was written in the 1400's. Of course he didn't have a workable answer either but he did clearly see the problem.

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#38
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 3:35 PM

Hope you have your helmet nearby. I think your comment (which I agree with) is gonna blow some fuses.

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#40
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 5:21 PM

Corrections.

The 1400s were before Gutenberg, the moveable type printing of the Bible, first.

Das Kapital was appearing between 1870 and 1900. I read it, and it would be a bore, if its effect on the world history could be discounted. Theory, yes. Doing all of it with flat disregard of human nature, aspirations, desires and motivations. Only grey masses exist, and they expected to behave uniformly. Also, their action are invariable, not influenced by external pressures. All patently untrue.

Human motivations are A, if not THE main factor in economic transactions. Other than that Das Kapital is a cornerstone work.

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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 5:37 PM

Thanks for the date correction. I live in a time flat world, now, not yet and before, and before is pretty fuzzy. I actually got confused with thinking about a different event that developed in the 1400's.

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#33
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 1:15 PM

The same propaganda during cold war?

A Leap Forward is a jump in a ditch.

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#3

Re: Is it Time for the U.S. to Start Copying China?

07/13/2011 3:38 PM

Couldn't help noticing that on the CR4 home page this is almost adjacent to the "3D Copying" thread. Hm-m-m-m?

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#4

Re: Is it Time for the U.S. to Start Copying China?

07/13/2011 4:40 PM

I agree with AH cost are way too high

And head to head, I believe we are farther ahead by having China copy us.

When it becomes the other way around, we are then losing.

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#5
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Re: Is it Time for the U.S. to Start Copying China?

07/13/2011 7:13 PM

I think we are going to have to re-embrace capitalism if we want to win.

We wouldn't be copying China. We would be revisiting the formula that made America great in the first place.

We can make things better and cleaner than China. All we have to do is get going.

I'd like to see the, "Made in America", label, become the symbol of quality that it once was. It wasn't long ago that everyone on the planet wanted the stuff we made....................................and it wasn't because it was cheap.

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#6
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Re: Is it Time for the U.S. to Start Copying China?

07/13/2011 8:08 PM

agreed, it's not going to be easy.

It's interesting to note, the history of democracy's. it rarely last for more that 200 years. The down fall, greed and bloated industry.

we are following the trend here where most of the list is checked off,

hope we can avoid this.

http://www.apatheticvoter.com/Article_DownfallDemocracies.htm

We touch off on this with another discussion where there are parallels. #20

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Re: Is it Time for the U.S. to Start Copying China?

07/13/2011 9:07 PM

Excellent link!

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#23
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 7:21 AM

That link sure does sum it up. It's a scary thing. The number of people that have become dependent on the US government doesn't need to grow much more for us to become a one party socialist system.

If we do continue to have two parties............it will be in name only.

Back to jobs and productivity. One thing I know for sure...............if the US thinks for a minute that we are going to get countries that are ramping up manufacturing and production to cease and desist over CO2, we are fooling ourselves.

If CO2 is going to kill us all, I'd rather die with some money in my pocket than rust bucket broke.

We still have hope. If we lose our credit rating and ability to borrow money, we will have no choice but to sober up, face reality, and start cutting back on both citizen dependency and government spending. The sooner the better.

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#8
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Re: Is it Time for the U.S. to Start Copying China?

07/13/2011 11:32 PM

I Guess two things had to be looked at

1. US should be more globalized (to reduce the item cost, cost of living, earning more revenews) by increasing the chances of foreigners to come in and work for US and yield revenew with their support. As labor cost of foreigners are far cheaper than the US citizens who are not affordable nowadays proportional to the cost of living. Indeed foreigners get you good returns with low investment on them

This could be materialized only by lifting the cap of H1B. Make it globally approachable country like UK, Singapore etc.. (where foreigners are the pillars of economical growth)

US also need to have onething in mind, Singapore who is just $1.19 of 1 USD. who were no were in the track to compete with US few years back. Singapore is not bigger than Manhattan City.. How come singapore compete with US economically ? Just "Humans" & Human values..

if not...

2. US should be capable of surviving independantly, make your own products, manufacture it in US and do not Out source to India or China and cry for not being developed whilst those crountries are developing. China survived independantly and now making use of the vacuum created(for low labor cost) globally into their favor.

One vital aspect US should always believe is China is "Not a Democratic country", so as SUDAN. the only difference is Military power is used for their growth in China, whilst Genicide in Sudan.

Now almost every product in US is being "made in China", Stop it .. else stop crying that China is competitor for the Super power !!

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#20
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 6:56 AM

Employing foreigners will create unemployment among americans and bring racial problems while outsourcing too creates unemployment. You should come to a compromise by allocating selected jobs only for foreigners without causing unemployment for americans by encouraging them to be self-employed.

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#21
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 7:08 AM

Am I missing something with your points?

1. USA has the most open borders in the world. Estimates are that we have somewhere between 7 to 20 million illegal immigrants. Singapore has a total population of less than 5 million.

2. Singapore is economically competing with the US? Singapore's 2009 GDP was $182 Billion US dollars. US GDP for 2009 was 14 trillion dollars! What competition?

3. There are no shortage of laborers in the US with an official unemployment rate of 9.2% and a real number closer to 15%.

The problem with the US economy right now is the soil it is planted in. If Washington can stop poisoning of the well for one or two years it will bounce back just fine.

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#16
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 3:13 AM

I Fully agree with your perspective. I bought exactly 10 items across varities like dress, electronic etc.. Out of which 8 were made in china, 1 in India, 1 in Thailand.

The next day i bought 6, all were made in China.

To make the statement far worse the Souvenir from Empire State building was "Made in China" !!

Out of the Random sampling, I haven't seen a single product being made in America.

I really wonder, What else US had planned to outsource to China ???

Stop Outsourcing as they are cheaper in their country ( you make that country wealthier), indeed bring them here to work for you ( to make your own self a real power).

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#17
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 4:16 AM

I am sorry, but when I grew up "Made in America" was not seen as a symbol of quality over here. In general it was seen as a mark of a product with lower first cost, higher running costs and lower safety standards than the European products. At the time of course it was better than than the far eastern products.

There were and are some honourable exceptions to this with some world class products.

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#26
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 8:25 AM

I may have spouted off a little too quickly. Everything we made was not perfect. Before the US started shipping jobs overseas, we definitely went through a period in the 70s and 80s where the quality of our products went down.................and I'm certainly not talking about all products, or all companies.

I also have hand tools of my Grandfather's that are still fully functional that were made in the US, and the 3 speed bicycle that I grew up with was a BMW.

From what I gather, Europe and the US are heading in the same direction.............I don't want to see Europe fail either.

We've had plenty of conversations on here about planned obsolescence, and so much of what we buy being, "throw away", garbage. I think the lack of world class products presents an opportunity......................for someone. If the Chinese start turning them out...................all of us are done.

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#27
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 8:36 AM

I will expand on my previous comment in case it just looks like US bashing. A similar attitude used to be held over here the the "Made in England" tag with its implied superior quality was enough to sell a product despite the higher first cost and often slow delivery. That was not the case.

I think the moral is that we tend to look at ourselves in a too favourable light unaware of how others really perceive us. A "Made in America" tag is not enough to sell a product, even to American consumers. Everything else has to be competitive as well, price, quality, features and delivery.

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#30
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 9:49 AM

Made in USA as opposed to the far east with using your domestic product as a base line?

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#34
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 1:21 PM

Study the world history of past.

Nations seldom correct their errors and reach the bad days.

In power don't listen to the well wishers.

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#9

Re: Is it Time for the U.S. to Start Copying China?

07/13/2011 11:48 PM

You asked an absolutely basic question. Here is my take on it. And I will speak straight.

I grew up under soviet rule, then came to this country. I liked it, more exactly, I love it. Oh, I do not find it perfect. Plenty of things can be improved. Except, that the basic setup is the best WORKING SYSTEM mankind ever devised. Theoretically, you can design plenty better. Particularly, if human nature is left out of the equation. And there is the rub.

No, we ought to do our own "thing", paying attention, but not copying anybody. And getting abused by Washington five ways from Sunday is not the way to get there.!!!

And oh YES, I am quite emotional about it! It is my home, I thought about it, invested in it, worked in improving it. And proud of it, overall.

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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 12:03 AM

The first secret is "austerity" in China and India,banning imports and locally produce whatever you need irrespective of quality which could be developed gradually.

Second is military rule-banning foreign correspondents,newspapers,putting in jail and torturing those who oppose the state or officials. This is why China has gone far in front of India.

Third is a disciplined society created by "Mao's thinking"-be prepared to make sacrifices even die for the country.

The americans want to be liberals,democrats,spend too much,spend their wealth in attacking other nations,disliking blacks even murdering Martin Luther King,sending Cassius Clay to compulsory army service,not caring for region damaged by hurricane Catherine etc

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#24
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 7:57 AM

You've been listening to too much anti US propaganda.

Aside from our real problems, you've also demonstrated that much of the world has a very skewed concept of the US and what we're about.

I was going to mark you OT, but I don't do that unless it's some scam trying to get money.

Can you publicly talk about your own government and country like that?

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#18

Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 5:51 AM

The Leadership of China is made up entirely of qualified Engineers (of many disciplines). If you compare this with the qualifications and experience of USA leaders (and UK Members of Parliament), you can see it relates closely to the industrial growth, (in both technical quality, and quantity) of China compared with ours.

When electing our leaders, we should COPY THE CHINESE in the qualification and expertise of our leaders, and the right understanding and base for industrial economic growth will be in place. Producing value is what increases wealth, maintainig quality is what sustains it.

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#19
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 6:50 AM

In third world countries ruled by Britishers the leaders including the famous Mahatma Ghandi were Lawyers because they can speak english fluently and argue in courts and in parliament. But a leader like Yasser Arafat(freedom fighter) was an engineer which differentiates Palestinians from Indians. Even in US I believe still many Congressmen and Senators are Lawyers who wear coat and tie and make speeches only but engineers can do something very useful for their country.

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#22

Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 7:15 AM

Hi,

To answer the question "Is it Time for the U.S. to Start Copying China?"

A quantitative analysis: there are 4 Chinese citizens for 1 US citizen.

If we think about innovation in term of resources: it needs capital and people.

So, for the people, how much engineers, scientists will there be in China in 2012? In the USA?

For the capital, where is the money cheaper? In China or in USA?

Will the USA cope with its debt? (the AAA stuff...)? Are the chinese banks solid? (or the chinese debts credible?)

If the USA's federal debt destroys the american economy, will the Chinese economy crash?

As said in the article, California is bankrupt...and Ipad are designed there and built in China.

Next question: what if the two systems are wrong and not sustainable?

Which one will re-invent itself?

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#25

Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 8:09 AM

As a major first step let's try to get control of the corruption at all levels of government and industry. Profits are great and good but demanding massive profits in the first few years of any project leads us to where we are now. It breeds a culture of corruption.

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#28

Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 9:03 AM

Well, first, if the USA stopped all imports, China and India would fall economically.

Second, the powers that be in the USA will not allow this because they are banking off of the exported labor. They don't have to pay insurance, reduced taxes, no socialist taxes, etc.

Third, the people of China are demanding more wages and the labor market is getting very competitive according to my uncle who works over there for GE and according to all of the studies that I have seen (sorry I don't have the links to the studies). Once the people are demanding the same as the US and Europe, the manufacturing jobs will go somewhere else. Same as has happened to Mexico. Although, Mexico didn't produce quality parts. Look at all of the issues that GM has had prior to sending manufacturing to China.

My main point: manufacturing goes to the cheapest labor with the least regulations. Those places industrialize and start making regulations to protect the people and the environment. Manufacturing moves to the next cheapest place. It is a continual cycle. Think about these questions: How many countries are left with stable governments and cheap labor? How long will it take for the companies to cycle through and abuse all of these countries?

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#29
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 9:23 AM

Does this sound familiar?

Illegals are flooding China from Africa, Vietnam, North Korea, and other countries. Reading some googled articles on illegal immigration into China, it appears that illegals are taking the lower paying jobs that the Chinese no longer want to do.

One article says they are building a wall to keep them out.

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#31
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 11:21 AM

It almost seems that some multinationals have adopted 'the tragedy of the commons' as an effective business model.

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#47
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Re: Is it Time for the U.S. to Start Copying China?

07/15/2011 3:45 PM

But have US got any cheaper source or it can activate all the industry overnight to meet the demands. "Rome was not built in a day". And was not built with a plan.

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#35

Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 2:49 PM

I'd like to respectfully add a perspective that you don't hear often.

We are regularly charged by OEM's with finding solutions that move manufacturing forward. When a Fortune 100 company needed new thought beyond current manufacturing capabilities limits, we sought out the 'best' in the US in that industry. We were turned down by all of them with compromises or simple 'no bids'. "Too Hard". "Can't do that". The Chinese were knocking down our door looking for business. We challenged them for the solution and found in them a technology partner. Together we changed the industry limits through tooling, process controls, custom equipment and material science. When we were producing our high volume production proofs, 'cheap Chinese labor' was never part of the equation.

We were producing something no one had done in that industry because the Chinese were willing. Our labor and unions need to take a loooong look in the mirror when they complain. We built this country on innovation, but can't ever sit on our laurels and goodwill. We need to want it as bad as they do.

Currently, we are 'on-shoring' and bringing back manufacturing and beating "low labor costs" with technology and innovation here in our facility. Our industry is no better than it was 10 years ago - in fact, its worse - but we're figuring ways around the MBA bean-counter-logic so we can do these things on American soil.

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#37
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Re: Is it Time for the U.S. to Start Copying China?

07/14/2011 3:35 PM

Regards.

In my view an important factor is being overlooked every where:

The difference between the Business and Industrial ATTITUDES.

Industry invests pre-hand and earns later. Provides jobs, pays major portion of taxes in any form.

Business works under hand, pays least taxes and minimum jobs.

Now in market every body complains of no standards products, no warranty...

They are not concerned of quality but the profit margin i.e. max profit on minimum investment.

This is now international trend.

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#48

Re: Is it Time for the U.S. to Start Copying China?

07/15/2011 6:34 PM

Innovation sells. It makes money. It takes money to make money and US banks are making money virtually impossible to obtain. Funds are required to drive innovation.

In the past, we took everything we had and put it on the table to fund a project.

Manufacturing and forward thinking thrived.

Automation was utilized to increase repeatability and relieve workers to forge additional responsibilities.

China has done all of the above and American's bought it....hook line and sinker.

America can take command with stronger value added principles and purchasers must be savvy of US companies that take the time and make the effort to get the product to market. Purchasing must identify the 'true' cost of purchasing the China device. If it is superior to US? Excellent quality? Really?? Then US has fallen short. If US is grossly overpriced?? Then it is time to understand true costs. If the total project price increases 5 percent, and the purchaser is assured of a 'made in US' device, can we get a feel good closing on the sale?? I say yes.

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#50
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Re: Is it Time for the U.S. to Start Copying China?

07/18/2011 10:49 AM

Maybe it is a mistake to include banks so intimately in the process. Maybe bean counters are useful as employees but lousy as bosses. Current tax policies and depreciation schedules in particular make it difficult for a business to pay cash up front for new equipment because the deduction is spread over a period of years. Paying instead by a loan from a bank means the payments as well as the deductions are spread out over time, making this a much more attractive approach. I know that there have been some steps in this direction lately, but I think we should look at ways to accelerate the process so that small businesses are not so dependent on the whims of the banking industry to launch new products. A banking system is obviously an important element in fueling economic growth, but we have let our banks gain far more power than they are capable of prudently exercising.

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