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Technology Stocks : Investing in Exponential Growth
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From: Paul H. Christiansen5/9/2017 8:16:09 AM
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Chinese Factories Going It Alone to Build the Next Must-Have Device

For decades China’s contract manufacturers have been content mostly to churn out gadgets designed by the world’s tech companies. Now they’re going a step further -- seeking out entrepreneurs and building their designs in hopes of finding the next must-have device.

Plants like Jetta Company Ltd. in Guangzhou are cutting out the traditional role of venture capital firms by shouldering some of the risk of developing a new product. They seek out ideas at trade events or from referrals. Then in-house teams build and test prototypes and even make small batches to gauge the market.

Chinese electronics factories are trying to adapt as Donald Trump targets the U.S. trade balance with China and competition rises from plants in Southeast Asia with cheaper labor. Backing startups may provide a way to weather those challenges, said Paul Travers, founder of New York-based Vuzix Corp., which produces augmented reality lenses.

bloomberg.com

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