more on The China that can say no

[Dave Farber <dave () farber net>]

------ Forwarded Message
From: CHACHAOK () aol com
Date: Sat, 09 Nov 2002 06:51:27 -0500 (EST)
To: dave () farber net
Subject: Re: <[IP]> The China that can say no

In a message dated 9/11/2545 16:06:22 SE Asia Standard Time, dave () farber net
writes:


> Unnamed electronic companies admit they have no contingency plan in the
> event of a "sit-down strike" by China's Party-owned manufacturers. In the
> piece, Intel's Andy Grove argues that Western investment makes war between
> the US and China essentially impossible, to which the former US Army attache
> in Beijing replies: "If Grove is that dependent on that source than he has
> assured the destruction of his own corporation."


Given the ultra competitiveness of most manufacturing businesses these days,
it is extremely difficult to avoid placing new manufacturing capacity in
China if one wants to remain competitive and in business.  This is happening
in a whole variety of industries besides the electronics industry, for
example furniture, lighting and apparel to name just a few.  Taiwan itself
is also seeing a shift in its manufacturing to mainland China despite the
longstanding animosity between the two.  Due to the high labor costs in
Taiwan, Taiwanese lighting companies have been shifting their manufacturing
plants to the mainland over the last decade while retaining their design and
headquarters facilities in Taiwan.  The fact that TPELIGHT 2003, the
Taiwanese 15th Annual International Lighting Fair this coming October is
being held in Guangdong Province, China for the first time is ample proof of
the extent of this shift!

China regards Taiwan as a renegade province and considers it an internal
matter as to how it handles its reintegration with the mainland.  As Taiwan
steadily shifts its manufacturing to Guangdong, it faces a not too distant
future where it will be unable to say no to political reintegration with a
growing economically and militarily powerful mainland.

The U.S. government and military should understand that the very nature of
capitalist economics worldwide dictates an increasing reliance on China.  If
that poses a strategic threat to the U.S. economy and military defense then
it will need to devise a way to bring about desirable changes in
manufacturing plant location decision making.  This will be extremely
difficult to do given the global trend in expanding free trade zones and the
increasing prohibition of governmental subsidies to industry.

Andy Grove is wrong.  War with China is not impossible, it is just
unthinkable. 

Best regards,
Charlie Sands 
Bangkok  



------ End of Forwarded Message

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