China's economic certitude crumbles
Newsbot @ Tue Nov 04, 2008 10:04 pm
Title: China's economic certitude crumbles
Category: Business
Posted By: stokes
Date: 2008-11-04 20:47:03
ridenrain @ Tue Nov 04, 2008 10:04 pm
They cite a slowing economy and material/labor costs but I's say the world is sick and tired of buying poisonous toys, reguardless of the price.
It's also woth noting that the owners of the company left and I doubt the'll be found, nor the missing payroll, because they probably have connections. Where was the fabled unity and love for their fellow countrymen?
Since China jumped into capitalism with both feet, it's fitting they get a soaker. Unless they improve their product quality, they better get ready for more of the same.
bootlegga @ Tue Nov 04, 2008 10:14 pm
Ahh, more China bashing...and you say you don't hate them. Your own posts don't support your claims at all.
The slowdown in their economy obviously has to do with the fact that their major export markets are suffering an economic downturn. But why let facts get in the way when you can do some bashing right? 
ridenrain @ Wed Nov 05, 2008 8:02 am
Just like all the anti-American's here, I hate the Chinese government, not the people.
Earlier this year, we had a huge story on lead in many of the toys made in China.
Why do you assume that had no effect?
ridenrain @ Wed Nov 05, 2008 7:26 pm
Well Boot? No connection between huge numbers of Chinese toy recalls due to lead in plastic and paint and now a number of Chinese toy factories closing down?
.. are you sure you're not a union lobbyist for one of the big-3?
ShepherdsDog @ Wed Nov 05, 2008 7:32 pm
What worries me with a slowdown in the Chinese economy is the loss of the economic carrot. What will they turn to next to distract the populace from the horrible political situation? Military adventure is usually the no. 2 choice, when money fails.
simjanes2k @ Wed Nov 05, 2008 7:47 pm
Ooh, China. Another one of my favorite topics. 
My company does a lot of business with people who are almost exclusively importer/exporters of Chinese products. Our company does not deal with any Chinese company directly anymore (I manage to have SOME influence in our part sourcing /flex), but we did for about a decade, and only stopped just before the Olympics.
Crappy products, crappy government, crappy situation for pretty much anyone working over there, even the so-called "elite" class. The only people that seem to be happy out of their 1.3 billion are college students with bright-eyed ignorant innocence and the feeling that they personally can change the world.
Who knows, maybe they really can. It would be awfully nice for the west to have trade with China without the crap we have in the way now. It's also too bad our collective governments have ignored Chinese government policies and human rights violations for so long that we're completely dependent on China and her products.
http://www.amazon.com/Year-Without-Made ... 0470116137
Above link is a book about attempting to eliminate all Chinese products from an average American home. Long story short, it's basically impossible and extremely expensive. Keep in mind she did not fully succeed, either. Only in removing the first iteration of product development and manufacturing was she successful.
Anyway I'd love to discuss the future of trade agreements or even military conflicts with the east if that's what we find ourselves in.
ridenrain @ Wed Nov 05, 2008 7:58 pm
Well, fill you're boots!
I don't know if you know the history of China in Canada but we are similar, though less effective than the Austrailians when it comes to rooting out their interference. It definately dosen't help when the last governments were in bed with them.
A little starter primer would be the RCMP investigation on CHinese involvement that got too close to some folks so the PM shut it down. How's that for "progressive"
http://www.jrnyquist.com/sidewinder.htm
simjanes2k @ Wed Nov 05, 2008 8:05 pm
Yeah, unfortunately I'm not surprised by what I've seen of the report so far. I've just scanned it, will have to read it all later.
It sounds like they did/are doing to your government is what they are doing to our commerce. I've been in Shanghai personally while Chinese engineers tried to take apart our proprietary product right in front of us (violation of international contract to reverse engineer a product only in prototype stage) so that they could make it themselves and sell it to our customers.
I've also watched my father get a patent for a marine bilge pump, his company sold 100,000 units or whatever to a Chinese boating company, and they mysteriously cancelled the order after their first demo peices. A couple of years later my dad saw the pumps in their boats, 100% ripped off and made by a Chinese company.
Standard operating procedure for the region, and it's very sad for the average worker there.
ridenrain @ Wed Nov 05, 2008 8:09 pm
Did you check out the story of the Chinese complaining because their illegal coppies of Windows keep going blank every hour and are filled with pointed anti-software piracy messages? It's a comic gold mine, if they weren't serious.
bootlegga @ Thu Nov 06, 2008 9:35 am
ridenrain ridenrain:
Well Boot? No connection between huge numbers of Chinese toy recalls due to lead in plastic and paint and now a number of Chinese toy factories closing down?
.. are you sure you're not a union lobbyist for one of the big-3?
.. are you sure you're not a union lobbyist for one of the big-3?
Oh, you were serious, I thought you were just bashing.
Let's see, the US financial industry is in shambles, and has laid off thousands of employees (rich white collar types too), US manufacturing has fallen to its lowest level in 26 years (with the big 3 auto companies laying off thousands more), the credit crunch is affecting businesses GLOBALLY, to point of recessions in the US and Europe, so yeah, I'd say that lead painted toys and melamine are pretty minor.
My guess (and it's just that) would be that product scares have maybe dropped 5-15% of demand. Most of the economic problems that China is experiencing is that too many people are scared (for their jobs, the economy, their savings, etc), and so are not spending money like they normally would, buying plasma TVs, laptops, and other expensive goods made (or partially made) in China.
And, no I'm not (and never have been) a lobbyist for the Big 3 (or anyone else for that matter)...but given that I live in Edmonton, that should be obvious...
ridenrain @ Thu Nov 06, 2008 1:33 pm
I guess it will just be a coincidence if sales of Chinese baby formula, milk, eggs and other produce also slows down?
bootlegga @ Thu Nov 06, 2008 1:57 pm
Something tells me that baby formula, milk, and eggs are not the main economic drivers in the Chinese economy (Most of that goes to neighbouring countries in Asia anyways). I'd lean towards electronics, clothes and other durable consumer goods as the main Chinese exports, most of which go to wealthy Western nations...
ridenrain @ Thu Nov 06, 2008 9:12 pm
Tell that to Tiawan who did the testing and found the contamination in eggs. It's only then that the Chinese government mentioned it.
Sounds like the same style of damage control they did with SARS, isn't it?
From the American Chamber of Commerce in Shanghi:
$1:
Headlines have pummeled Chinese toy manufacturers; from the frightening “China confirms toxic toy findings” to the conciliatory “Mattel official apologizes in China.” The crisis in toy safety has uncovered valid quality complaints against both multinational toy companies and Chinese manufacturers. Pushing aside the myriad of substantive matters of supply chain management, quality assurance standards and attribution of blame, the issue touches at the heart of everyone as toys go, literally, into the hands of the most cherished and vulnerable of consumers: children.
The August 2007 Mattel recall was arguably the most damaging for China this year. Mattel shook already weak consumer confidence in Chinese product quality and safety when they recalled 1.5 million Chinese-manufactured Fisher Price toys.
Despite Mattel’s apology that design flaws and poor specifications were largely to blame, confidence in Chinese product quality remains low. More recently, Australian-sold Bindeez beads (Aqua Dots in the U.S.) were recalled after being found to contain a chemical that metabolized into gamma hydroxybutyrate (GHB), better known as the “date rape” drug, when ingested.
Questions surrounding toy safety are at the forefront of American minds this holiday season, which begs the question: how did we get into such a quality crisis?
The August 2007 Mattel recall was arguably the most damaging for China this year. Mattel shook already weak consumer confidence in Chinese product quality and safety when they recalled 1.5 million Chinese-manufactured Fisher Price toys.
Despite Mattel’s apology that design flaws and poor specifications were largely to blame, confidence in Chinese product quality remains low. More recently, Australian-sold Bindeez beads (Aqua Dots in the U.S.) were recalled after being found to contain a chemical that metabolized into gamma hydroxybutyrate (GHB), better known as the “date rape” drug, when ingested.
Questions surrounding toy safety are at the forefront of American minds this holiday season, which begs the question: how did we get into such a quality crisis?
http://www.amcham-shanghai.org/amchampo ... 1C9DF84%7D
Thanos @ Thu Nov 06, 2008 10:52 pm
$1:
Questions surrounding toy safety are at the forefront of American minds this holiday season, which begs the question: how did we get into such a quality crisis?
By not giving a shit about quality or about keeping jobs in North America in favour of being able to buy endless junk at the WalMart-level of cheapness? You want a real safety and customer satisfaction disaster to happen? Just wait until some salesman shill the Chinese have hired as a pointman convinces our cowardly governments to allow them to sell Chinese-made cars in North America. When that happens we'll end up waxing nostalgic over the good ol' days when the road carnage was only caused by drunk drivers and teenage males. The only real satisfaction that can be more-or-less accurately predicted is that the Chinese will have their own economic meltdown just like the other Asian Pacific tiger economies did back in the mid-1990's. When it happens hopefully it'll smash 'em back down to the Maoist stone age.