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Jack Welch on "Is China for Everyone?"
PanAsianBiz ^ | June 6, 2006 | Dr. Bill Belew

Posted on 06/06/2006 6:08:37 PM PDT by G. Stolyarov II

Jack Welch gives his reasons why a company should go to China...

1. China has a vast market 2. China has low-cost manufacturing 3. China has increasingly strong technical talent. 4. Companies that 'make it' in China leap into another competitive league, leaving their competitors behind.

and why a company should not...

1. China is littered with companies that went to China...just to go to China. 2. The China-or-bust mantra was invoked on them in B-school. 3. Because everyone is going....

How about your company? Should it go to China? Why? Why not?

What do you think?


TOPICS: Business/Economy; Extended News
KEYWORDS: china; companies; corporations; development; globalization; manufacturing; outsourcing; progress
I like Jack Welch's implicit assertion that individual businessmen need to *make up their minds for themselves* in order to be successful-- not cave in to the latest fads in the business world. Moving to China is only a good solution for certain kinds of businesses in certain kinds of situations; it is not a panacea. Other businesses will find that they will have a comparative advantage by staying in the U.S. or in other Western countries. This also shows that we have little to fear from globalization; some wiser firms will find it more profitable to remain and expand within the U.S. and trade with the rest of the world, rather than directly relocate or outsource. See Dr. Belew's blog: PanAsianBiz
1 posted on 06/06/2006 6:08:39 PM PDT by G. Stolyarov II
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To: G. Stolyarov II

China has slave labor. China polutes the hell out of their ground water and skys with little care for their citizens.

Run Forrest Run!


2 posted on 06/06/2006 6:11:28 PM PDT by A CA Guy (God Bless America, God bless and keep safe our fighting men and women.)
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To: G. Stolyarov II
China has slave labor. China pollutes the hell out of their ground water and skys with little care for their citizens.

Run Forrest Run!
3 posted on 06/06/2006 6:11:37 PM PDT by A CA Guy (God Bless America, God bless and keep safe our fighting men and women.)
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To: G. Stolyarov II
Don't forget these other goodies that are provided (per my neighbor who started a business there):

1. Prostitutes for your pleasure.

2. All the booze you can drink.

3. Cigars from Cuba.

4 posted on 06/06/2006 6:15:24 PM PDT by raybbr (You think it's bad now - wait till the anchor babies start to vote!!!)
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To: G. Stolyarov II

If you want your business to succeed in China, you must kiss a lot of commie beauraucratic butt. I hardly call that business.


5 posted on 06/06/2006 6:15:29 PM PDT by Vision Thing
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To: Vision Thing
If you want your business to succeed in China, you must kiss a lot of commie beauraucratic butt. I hardly call that business.

Lots of corruption in China according to various reports. We in the West keep waiting for the corruption to destroy the government, like in the Soviet Union, but it hasn't happen yet.
6 posted on 06/06/2006 6:29:05 PM PDT by Ticonderoga34
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To: zert_28
Lots of corruption in China according to various reports. We in the West keep waiting for the corruption to destroy the government, like in the Soviet Union, but it hasn't happen yet.

I wonder if the reason it "hasn't happened yet" has anything to do with our businessmen being there?

7 posted on 06/06/2006 6:34:07 PM PDT by Steely Tom
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To: G. Stolyarov II
This is a difficult question for me. I am considering moving a portion of my operation to China in the next 12 - 18 months. My reason is fairly simple: My product will be made in China whether I do it or not. If I am already in China a big piece of the economic incentive to pirate my product will disapear.

Further, when a US domestic company wants $25,000 to make an injection mold, and a Chinese company wants $1,800.00 to make the same mold (or $14,000 for an electronic design versus $1,500.00; or $39.92 for a part versus $6.94) it is a very difficult thing to turn down when you have very limited resources. It is not a matter of simply spending more: it is a matter of being able to do it all or not doing it at all.

I imagine some here will give me h%ll for even considering the possibility, but them's the economic realities of the situation.

8 posted on 06/06/2006 6:40:27 PM PDT by lafroste (gravity is not a force. See my profile to read my novel absolutely free (I know, beyond shameless))
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To: A CA Guy
I'm kinda partial to this china, myself:


9 posted on 06/06/2006 6:41:23 PM PDT by Fudd Fan (My dog ate my tagline.)
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To: lafroste

"If I am already in China a big piece of the economic incentive to pirate my product will disapear."

I wouldn't bet the farm on that. Any successful product line can be ripped off, regardless of where you've sourced it. The profit is certainly still there. The Chinese have next to no regard for contracts, intellectual property or patents, and have been known to do the "pirating" themselves, and then go looking for a US distributor.


10 posted on 06/06/2006 6:54:34 PM PDT by RegulatorCountry
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To: lafroste

"This is a difficult question for me. I am considering moving a portion of my operation to China in the next 12 - 18 months. My reason is fairly simple: My product will be made in China whether I do it or not. If I am already in China a big piece of the economic incentive to pirate my product will disapear.
Further, when a US domestic company wants $25,000 to make an injection mold, and a Chinese company wants $1,800.00 to make the same mold (or $14,000 for an electronic design versus $1,500.00; or $39.92 for a part versus $6.94) it is a very difficult thing to turn down when you have very limited resources. It is not a matter of simply spending more: it is a matter of being able to do it all or not doing it at all.

I imagine some here will give me h%ll for even considering the possibility, but them's the economic realities of the situation."

Please don't do it!!

Why not go to a nonCommunist country for cheap labor.

I wish there were an entreprenor who would have a "Not-Made-In-China" catalogue or website. I would be their first customer.


11 posted on 06/06/2006 6:57:40 PM PDT by Sun (Hillary had a D-/F rating on immigration; now she wants to build a wall????)
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To: Steely Tom

For Pentagon officials, alarm bells have been going off for the past two years as China's military began rapidly building and buying new troop- and weapon-carrying ships and submarines.

http://www.washtimes.com/specialreport/20050626-122138-1088r.htm

China is patient, and just might be waiting for the right moment when they are stronger.


12 posted on 06/06/2006 7:01:15 PM PDT by Sun (Hillary had a D-/F rating on immigration; now she wants to build a wall????)
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To: G. Stolyarov II

No thanks, I don't think so. But coming from Jack Welch, I am not surprised. I think Welch would sell his mother to some Eastern European pimp named Yuri, if the price was right. Welch comes across as a really nice, personable kind of guy, but GE is the worst polluter on the planet (or at least the last time I checked). GE is one lying, screwed up company, regardless of the amount of money they pay for positive PR.

And China is trying to screw the US by any means and chance they get.


13 posted on 06/06/2006 8:47:02 PM PDT by khnyny (Never in the field of human conflict was so much owed by so many to so few.- Winston Churchill)
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To: G. Stolyarov II
I think Jack Welch should go to China.

And stay there.

14 posted on 06/06/2006 8:47:04 PM PDT by Regulator
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To: G. Stolyarov II

Absolutely. We should outsource all of our American jobs to China so we can get some cheap stuff! We can all live off of the government and use the checks to buy cool cheap stuff. And we will all get cool vacations and free money! I used to think it was better for Americans to have good jobs, but tonight I have been convinced I was wrong. We are all much too greedy for wanting a decent salary.


15 posted on 06/06/2006 8:50:56 PM PDT by mysterio
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To: G. Stolyarov II

Companies that "make it" in China leap into another league?

Look at IBM for example. They leaped right into ... Lenovo.


16 posted on 06/06/2006 8:54:33 PM PDT by Cringing Negativism Network (H.R.4437 > S.2611)
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To: Fudd Fan

That right there would be the best kind of China.

17 posted on 06/07/2006 10:08:38 AM PDT by A CA Guy (God Bless America, God bless and keep safe our fighting men and women.)
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To: G. Stolyarov II
Jack Welch fails to take account of the implications for national security in trade with China. And its doctrine of covert warfare under cover of a "Peaceful Rise." He should read a book on military strategy written in 1999 by two Colonels in the People's Liberation Army, Qiao Liang and Wang Xiangsui. Its primary concern is how a nation such as China can defeat a technologically superior opponent (such as the United States) through a variety of means. Rather than focusing on direct military confrontation, this book instead examines a variety of other means. Such means include using International Law ( Lawfare) and a variety of economic means to place one's opponent in a bad position and circumvent the need for direct military action.


Unrestricted Warfare

Terrorism is of course mentioned the most often, but it is just one of the many ways of unconventional warfare identified by Unrestricted Warfare. To cite a few others:

* financial warfare. Financial war is a form of non-military warfare which is just as terribly destructive as a bloody war, but in which no blood is actually shed. They explicitly mention a mercantilist policy attack, ranging from currency manipulation, massive technology espionage, and intellectual property theft, trade barriers to frustrate U.S. imports into China, and an export policy targetting U.S. technology infrastructure for "capture", which translates to Chinese control, and ultimate relocation.

* psychological warfare (spreading rumours to intimidate the enemy and break down his will);

* smuggling warfare (throwing markets into confusion and attacking economic order);

* media warfare (manipulating what people see and hear in order to lead public opinion along);

* drug warfare (obtaining sudden and huge illicit profits by spreading disaster in other countries);

* network warfare (venturing out in secret and concealing one's identity in a type of warfare that is virtually impossible to guard against);

* technological warfare (creating monopolies by setting standards independently);

* fabrication warfare (presenting a counterfeit appearance of real strength before the eyes of the enemy);

* resources warfare (grabbing riches by plundering stores of resources);

* economic aid warfare (bestowing favour in the open and contriving to control matters in secret);

* cultural warfare (leading cultural trends along in order to assimilate those with different views);

* international law warfare (seizing the earliest opportunity to set up regulations);

* environmental warfare (weakening a rival nation by despoiling natural environment).

How explicit do the Chi-Comms in Beijing have to be that their policies are fully embracing the outlines of Unrestricted Warfare...and they are following this blueprint of covert warfare? Isn't it interesting that outgoing Treasury Secretary Snowe refused point-blank to acknowledge the currency manipulation as "intentional" because of recent small price movements (still obviously highly managed)...when the evidence of INTENT is spelled out right here.

This Administration's policies increasingly look like a repeat of Neville Chamberlain's Appeasement to me. Refusing to acknowledge aggression...no matter how point-blank...

At the current rate of deluded wishful-thinking warping rational adult judgment...it is inevitable that the U.S. political establishment will not respond until it is too late, and only then, with the crisis already apparent to all, will the SHeeple desperately try to clean house and put into power hard-core patriots again... But unfortunately they will find the U.S. capital, industrial and military infrastructure crippled beyond repair, and technology and resource advantages hopelessly compromised to China.

18 posted on 06/07/2006 10:40:13 AM PDT by Paul Ross (We cannot be for lawful ordinances and for an alien conspiracy at one and the same moment.-Cicero)
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