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more on The China that can say no
From: Dave Farber <dave () farber net>
Date: Sat, 09 Nov 2002 08:03:17 -0500
------ Forwarded Message From: CHACHAOK () aol com Date: Sat, 09 Nov 2002 06:51:27 -0500 (EST) To: dave () farber net Subject: Re: <[IP]> The China that can say no In a message dated 9/11/2545 16:06:22 SE Asia Standard Time, dave () farber net writes:
Unnamed electronic companies admit they have no contingency plan in the event of a "sit-down strike" by China's Party-owned manufacturers. In the piece, Intel's Andy Grove argues that Western investment makes war between the US and China essentially impossible, to which the former US Army attache in Beijing replies: "If Grove is that dependent on that source than he has assured the destruction of his own corporation."
Given the ultra competitiveness of most manufacturing businesses these days, it is extremely difficult to avoid placing new manufacturing capacity in China if one wants to remain competitive and in business. This is happening in a whole variety of industries besides the electronics industry, for example furniture, lighting and apparel to name just a few. Taiwan itself is also seeing a shift in its manufacturing to mainland China despite the longstanding animosity between the two. Due to the high labor costs in Taiwan, Taiwanese lighting companies have been shifting their manufacturing plants to the mainland over the last decade while retaining their design and headquarters facilities in Taiwan. The fact that TPELIGHT 2003, the Taiwanese 15th Annual International Lighting Fair this coming October is being held in Guangdong Province, China for the first time is ample proof of the extent of this shift! China regards Taiwan as a renegade province and considers it an internal matter as to how it handles its reintegration with the mainland. As Taiwan steadily shifts its manufacturing to Guangdong, it faces a not too distant future where it will be unable to say no to political reintegration with a growing economically and militarily powerful mainland. The U.S. government and military should understand that the very nature of capitalist economics worldwide dictates an increasing reliance on China. If that poses a strategic threat to the U.S. economy and military defense then it will need to devise a way to bring about desirable changes in manufacturing plant location decision making. This will be extremely difficult to do given the global trend in expanding free trade zones and the increasing prohibition of governmental subsidies to industry. Andy Grove is wrong. War with China is not impossible, it is just unthinkable. Best regards, Charlie Sands Bangkok ------ End of Forwarded Message ------------------------------------- You are subscribed as interesting-people () lists elistx com To unsubscribe or update your address, click http://v2.listbox.com/member/?listname=ip Archives at: http://www.interesting-people.org/archives/interesting-people/
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- more on The China that can say no Dave Farber (Nov 09)