by Dan Harris
Got an email the other day from a loyal reader who is convinced that we all need to start looking at China differently. I found his email interesting and felt it worth sharing for both that reason and also because I am dying to read the comments it engenders. Here it is:
The last time I was in Shanghai I met with a bunch of Taiwanese engineers/factory owners. These are guys in their 60s who graduated from Taiwan engineering school back in the late 1970s/early 1980s. They have been quite successful in China. They all said the same thing: China has fundamentally changed. So they are taking steps to deal with the change.
Here is an example. A guy whose core business in China is manufacturing rubber gloves. He has done this business for 40 years: 20 years in Taiwan, and 20 years in China. He is moving the ENTIRE manufacturing program to Viet Nam, in the Saigon area. However, he is retaining the high value Chinese business: five technical schools a couple of medical service businesses, and a distributorship for consumer goods like toothpaste.
What these guys were saying and my takeaway from that was:
What do you think?