Wednesday, October 18, 2006

More-on Japan

The Japanese may be able to sleep better knowing Rice and the US will provide plenty of bottled water and cans of tuna the day after the North Koreans shoot a nuclear missile at them.

Of course, the minute one threat to national security is quelled, another arises. The Chinese anticipate full design and production capabilities necessary to compete for the automotive market will be online by 2020.

Perhaps we could suggest generous government subsidies for the automotive industry, considering they have worked so well here.

1 Comments:

At 11:13 AM, Blogger 8thfloorwindow said...

The problem here is that the Chinese autodeathtraps have a long way to go before pentrating the European and American auto markets (Especially the PR problems they face given their human rights record).

Ironically, if the Chinese use the Japanese model, they could be successful in carving a strong demand for whatever they engineer in 15 years. There are other factors to consider, including rising safety and emissions standards in industrialized countries, which will change considering the price of oil and technology advances in the next few years. The Japanese and Western automakers also have a leg up in terms or fuel friendly and computer technologies.

The Chinese business model for large scale auto production cars is suspect. According to the Times piece, they actually have military drill sergeants pushing non-unionized workers to maintain discipline. In order to sustain an advantage in the global marketplace, low labor costs are important, but not at the risk of boycots among your workers and the potential for significant social change in China's future, as they gradually open up their economic interests. The Chinese haven't reached a worthy point of industrialization yet, and until they do, they won't have a serious, stable model to compete on the world stage.

 

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