Change of Management at WD...?

Andrew
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#16

Post by Andrew »

Mo wrote:
If you look at germany as a whole, their companies are continually opening andsetting up operations in China with German employees. As nick has mentiuoned, price is the driving factor for this.

In fact it would be suicidal for western companies not to set up shop in china, as odd as that sounds, that's the reality.
I can't argue with that Mo. However, the following sums this up better than I can, its all about a lopsided economy, and we're on the wrong side of the 'lop'.

http://www.bbc.co.uk/blogs/thereporters ... erent.html

-- Andrew
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Nick
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#17

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The search continues for Britain's magic exports.
Well, its only a tiny amount, but the company I spend my days working for http://www.easysoft.com are having the best year so far we have had in several. We sell software we write our self, our only costs are paying people, and most of our sales are to the EU and US, so deflated sterling is good for us.

Not bragging, we have done nothing different, but just pointing out that the UK still does have "some" manufacturing industry. Just not the one it used to have.
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andrew Ivimey
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#18

Post by andrew Ivimey »

Interesting place, China (from a manufacturing perspective).

A couple of facts. Since the world recession began China has almost 25 million unemployed. BBC figures which I find difficult to hang onto. Factories are closing and the disease of poverty is spreading in parts of China's burgeoning economy. Needless to say Unions and Health and Safety are as non-existant over there as as MPs who have not had their snouts in the trough over here. There are some but precious few.

China's holding of foreign currencies is now at a mind boggling 1.9 trillion dollars. This of course is frightening on the effect and control they can exercise on western economies but it is a double edged sword because if western economies and particularly USof A goes down the pan, then China is crushed too where all that currency and wealth becomes worthless paper.

So many companies have and continue to move out there, though. Production costs (Labour) are so cheap relative to the older economies where various types of representative democracy hold the worst abuses of Capitalism in check. The Chinese must love western investment and provision of some jobs, at least. It was only about 110 years ago that the west shelled China and went to war to force them to buy Opium and open up the country to western imperialism ( as opposed to oriental despotism) But in modern times, all the industries; the infrastructure that goes to make up the supplies needed for the manufacture of in this case electronics still have to exist or we don't get our DVD players.

My bro'in laws company boss sold off Mission etc a good few years ago and so Martin ceased to be Peter's colleague. NXT very rapidly shut down European manufacture and even their Hongkers office which is only just that now. All manufacture is in China proper and although Martin and his family continue to live a very luxurious and privileged lifestyle in California, nothing would exist without the manufacturing base in China and all the licenses sold to companies in Taiwan and South Korea. Unemployment in Huntingdon continues to rise.

China is a fascinating place to visit and seriously frightening in its gargantuan rapacious `development'. Did you know for example that China imports one half of the world's iron ore, aluminium and copper? Astonishing. I have seen clean looking western style modern production and a couple of factories producing electronics that would have been a suitable backdrop for a novel by Charles Dickens. The pollution of the environment, poisoned clogged rivers and filthy smog filled air, the vast open cast mines and the literal crushing of mountains to extract the minerals and make concrete that is open to even a casual tourist to gawp open mouthed at is appalling.

I am sure that Peter will have an interesting job on many levels and if he can adjust to the way of life over there have an enjoyable lifestyle; interesting times and difficult for some too.
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#19

Post by steve s »

andrew Ivimey wrote:.

China's holding of foreign currencies is now at a mind boggling 1.9 trillion dollars. This of course is frightening on the effect and control they can exercise on western economies but it is a double edged sword because if western economies and particularly USof A goes down the pan, then China is crushed too where all that currency and wealth becomes worthless paper.

.
i think they are very aware of this.. they are among the biggest buyers of gold bullion.. for just in case things really go tits up..
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Nick
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#20

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In which case they have lots of gold, which isn't worth much in its self.
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Mike H
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#21

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andrew Ivimey wrote:Did you know for example that China imports one half of the world's iron ore, aluminium and copper? Astonishing.
Yes I did know that, and is why I mentioned in Will's Choke Input Chokes topic that he might find prices are not the same as they were "a good few years ago"


My old MD when I worked for Maplin spent a lot of time in the far East, sourcing stuff, he told us he was once given a tour of a factory. Can't remember if it was South Korea or Hong Kong. Anyway as part of the tour he was shown the "cells" where the workers sleep on site. :shock: That was about 20 years ago.
 
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Mo
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#22

Post by Mo »

Those on-site 'cells' are still very common today in some parts of India.
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