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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (22052)	1/24/2005 12:30:13 PM
From: RealMuLan	Respond to of 116555

LOL -->>At least the ones that don't relieve a chronic condition by killing the patient.<<

To: Knighty Tin who wrote (22052)	1/24/2005 2:23:33 PM
From: RealMuLan	Respond to of 116555

Mike, although the US does not have too much manufacturing left in the US, they still are more flexible in terms of localization of their product in other countries. Most of Chinese producers think the US, as well as European producers, are more flexible/adaptive to the local comparing with Japanese producers. While maybe this has something to do with Japanese always look down upon other Asians, but the US and European companies do not. Take Toshiba notebook computer for example. Toshiba notebook computer were pioneers in notebook business, and they have entered Chinese market as early as 1995. And they were doing great as #1 until 2000, when Lenovo started to compete with them by entering notebook market. Now 4 years later, Toshiba becomes #5, after Lenovo, IBM, Dell, and HP. And some analysts predict that after all 2004 data come out, Toshiba might be out of top 5 in Chinese market. Their model does not upgrade as fast as IBM, Dell and HP, but the price is more expensive than the other three. They have no R&D in China. So when the competition is heating up, they left behind. And some people say Toshiba’s situation is not alone in Japanese companies. Plenty of them are in similar situation. Japanese carmakers completely missed the car boom in China bet. 2002 and June 2004. Majority of Japanese companies in China is solely owned (no Chinese partners). This is ok when China does not have their own product and their own design. But now things change fast. Some Chinese companies already have the strength to compete with them. So they will have to be flexible in order to get ahead. In this aspect, the US and European companies are more flexible so a lot of them doing much better in China than the Japanese companies. On top of their own conservativeness, there are historical reasons too. 17 non-governmental Japanese organizations did a survey in 12 Chinese provinces and major cities about the effect of Chinese boycott for Japanese product bet. July and Nov. 2004. The result indicated that bet. 1990 and 2004, Japan companies sold 800 billion Yuan (about $96.7 billion) less of goods due to the boycott among ordinary Chinese. This is about 3 times higher than the effect of Korean boycott of Japanese goods in S. Korea. Yes, make no mistakes, Japan emphasizes more on the US and European market, but the problem is that these market is getting too crowded and saturated. The new market is in China, India, or other developing countries. If Japan does not, cannot, or does not want to realize this, that would be their own loss, as well as the loss of Japanese manufacturing.