China Copies Product. My opinion...Lookout all western companies going overseas
Western Companies will announce they are moving in China and the stocks go up,. What you don’t hear about is that all of a sudden a Chinese product of the same kind eventually comes out in the future using the technology brought over from western companies and now have a competitor on their own product, but usually stays in Asia. The Chinese manufacturer will start their own business using technology that they have learn with the new manufacturing technology from the western companies and making the same thing or a similar version as a western products during the day and use our technology to work on their own products on second shift. . that product had been copied and a version comes up for sale in china or Asia not back to the west. Of course a lot of the product are inferior, but are sold cheaper
I have hear manager go over to china and walk through the factory wonder why employees look real tired during the day, to only find out that they are working a 2nd shift building their own version of the product for a new or another company. The good thing is that it is hard to beat good western products. But some will not go back to western countries to sell but stay in Asia. This seems like typical capitalism, but you have to realize how far and fast the chins have come in 20 years! And they have rapidly gotten there buy outside technology. This is fine, but other countries loose there manufacture capabilities and eventual sounds like a job security issue for outside countries .
I have been saying this stuff since 1997....My opinion is that all western companies including Caterpillar, CISCO, CMI and Yum are greeting goING for short future gains to help China companies their products and will face serious problem down the road in the future. People don't realize that the west has made china.
America is the country of smart dumbazzzes for short term gains. Accounting issues has ALWAYS BEEN A PROBLEM in China. Just to maker sure I did not stutter...CHINA COMPANIES HAS ALWAYS BEEN KNOWN FOR BAD ACCOUNTING for the simple fact that their company quarterly reports guildlines are differ then U.S.
I realize that. The Unions have been warning for 30 years stop patronizing China in 2 ways. Too many idiots bought China back when they didn't have to. And as you said too many companies giving up knowledge to China. You can ignore me, but when I am right I will be back to remind everyone. The market will close red today. Its just a head fake.
Sure, the US has helped build China, but most people don't see the other side of the coin. As the US consumer has built China, China is building Brazil, Peru, Mexico, and US corporations. After China's masses learn and grow and get to the point of a better life style, as already being shown the Chinese consumer will by from us. This is very very different culture from Japan. Back in the 70's and 80's a foreign country weren't allowed to own a company in Japan. 50% joint venture was the best one could expect, and they were 49%. If you were Japanese you bought Japanese product, If you had a toyota you had it serviced by toyota, If you worked at Toyota or Mitsubishi you drove a toyota or Mitsubishi or the parking lot at work all of a sudden got a lot farther a way from the plant entrance. Now Mitsubishi wants Cat to own the whole business. I'm not too concerned about Cat in China, they are a lot more experienced than the other companies in dealing with foreign countries, in fact more than any entity, after all nobody except maybe, maybe, GE has been an International Corporation as long as Cat.
Well, I'm pretty good friends with several engineering managers and supplier purchasing managers that were stationed in China, and have never heard them say anything about the Chinese looking tired. You do know that Caterpillar has been in China since the 80's, and solely own businesses as well joint venture businesses. The Chinese company they just bought was suppose to be one of their up and coming companies that was supposed to compete against Cat, and we seen what they were made of. I don't think these reports are anything that Cat doesn't know or seen, if fact everyone is aware that China is just like anyone else they will do what ever they can get away with. It took 200 years for us to do something about meat packing plants, asbestos, child labor, lead in paint, and etc etc. There is a problem with piracy and hackers with countries than just China and some are supposed to be our closest allies. If you were working at Cat in the 70's, and your product responsibility was built in Japan, you would know we went thru the same thing in Japan, only much much more difficult.