International trade is about utilizing excess production capacity and superior management. For an American to open a plant overseas is to violate both principals. I managed to make a bit of an object lesson on this with a BBC series where Brits efforts to develop factories in China went a-cropper. I covered the BBC series in 2008 and in 2008 predicted failure all around for those who were claiming success in 2008. By 2012, the BBC did a follow up. Failure all around.
Now comes an American who has had similar unhappy results. I guess people always think they are different. China is a great place to do business. A great place to get first class work done. By Chinese. But if you plan to open your own factory, well, that just won't work out very well. China is for the Chinese. Here is the photo of the American from the article.
His picture captures very well the reality. I feel for him, but it is not as though the advice against opening your own plant is not out there. Even Apple would not dare open their own plants in China. The article says he plans to move the plant to India. Some people never learn.
Feel free to forward this by email to three of your friends.
Now comes an American who has had similar unhappy results. I guess people always think they are different. China is a great place to do business. A great place to get first class work done. By Chinese. But if you plan to open your own factory, well, that just won't work out very well. China is for the Chinese. Here is the photo of the American from the article.
 |
| AP photo |
His picture captures very well the reality. I feel for him, but it is not as though the advice against opening your own plant is not out there. Even Apple would not dare open their own plants in China. The article says he plans to move the plant to India. Some people never learn.
Feel free to forward this by email to three of your friends.
1 comments:
http://www.businessweek.com/articles/2013-03-15/caterpillars-chinese-lessons
It looks like Caterpillar tried to do a version of this in China. Should they have just partnered with a mainland or Hong Kong-based Chinese company rather than outright buying a Chinese company to get into the Chinese market?
Post a Comment