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iPhone: Made In Shenzhen, Assembled by Foxconn 2007-08-15 14:50:10 the iPhone is quite simply the reason I believed in Apple as a company 18 months ago when I bought shares. As I have mentioned on a number of occasions, it is its telecommunicationally challenged brother the iPod that has been a form of rechargeable sanity for most of my time in China… and that is why when I saw a few posts on the iPhone supply chain I had to write this post. Beginning with the recent Foxconn article in the WSJ, and my resulting post, I then stumbled upon Spendmatters’s Apple’s iPod Supply Chain post, which lead me to TEXYT’s article iPhone: Who’s the Real Manufacturer, which then took me the to Shumla’s post entitled The Apple iPhone Supply Chain, source of this diagram (more…) Read Original Post Here ... Iphone

Baby-bibs Made in China Test Positive for Lead 2007-08-15 14:01:09 Lead, again. The New York Times — “everything that fits, we print” — opines obliquely this morning on the subject of Chinese imports. Portions are intelligble. Let me endeavor to translate Times-speak to American English (I am not yet certified but well-acquainted with the slant of the handwriting.) “That’s the price of doing business,” is the too-often-heard excuse from American companies that choose to overlook China’s loose business ethics and tight, verging on strangling, political controls. We sit on this high moral perch of ours. (Stop whispering among yourselves about goings-on inside the Times!) American businessmen dealing with China — look up at me as we speak to you! Gavel bangs. Guilty!. Gavel bangs. Order, we must have order! The convicted will now listen to our solution to the whole import safety megillah. It is definitely not in America’s interest — economic, political or strategic — to erect a barricade against ...

They Got Barbie and Batman now. 2007-08-15 07:51:09 Well, they got Barbie – and even Batman took a hit. Mattel is in for another tough week. And so is China Inc. Now, here’s a morbid test for all you China-Watchers out there: Who will get more air-time, Sarge the Jeep or Polly Pockets? Unfortunately, I’m being serious. […] Read Original Post Here ...

Speaking of China… 2007-08-15 05:53:28 ChinaBiz Speakers (“China’s first professional speakers bureau”) has launched today. The brain-child of Fons Tuinstra of China Herald and ChinaBiz, the Bureau already has an impressive roster of high-profile talent. The launch press release notes: “At its start Chinabiz Speakers has a database of two-hundred speakers and its website lists close to thirty of them. Both numbers are likely to rise fast after the official start. The speakers include Rupert Hoogewerf of the Hurun China Rich list, former Alcatel China CEO Dominique de Boisseson, economist Wen Tiejun, J.Walter Thompson Greater China CEO Tom Doctoroff and many other opinion leaders. ChinaBiz Speakers offers one-stop solutions for companies, industry associations, business chambers and other event organizers looking for professional speakers on China. It provides direct access to distinguished economists, influential business and management experts, dynamic motivational speakers and media personalities, and manages tr ...

Registration and Enforcement of IP Rights in Korea: A Brief Introduction (Part 3) 2007-08-14 22:00:49 [Editor’s Note: We continue from Part 2.] Quicksand and Other Surprises First, a present surprise, again contrary to reputation due to the past: Korea’s IP system is largely free of corruption or domestic favoritism. In my five years of working in this field, both in and outside the Korean Intellectual Property Office, the number of times when I suspected there was something nefarious I could count on one hand. Most allegations boil down to either tough calls or a disagreement with the practice and administration of IP law. One of those disagreements is what constitutes a famous trademark under Korean or International Law. In a nutshell, if your mark is sufficiently famous, you have a de facto defendable trademark. The crux however is what is “sufficiently famous”. Korea sets a very high bar in determining what’s famous. In addition, Korea is strict as well as to the type of goods. I was involved in a case regarding a very famous copyrighted character with multiple de ...

China & Morality 2007-08-14 17:47:51 One of the most interesting things about living in China is the underlying sense of morality…. or the lack there of. From my time living here, I really believe that anything and everything can happen. Although the vast majority have a decent sense of what’s right and wrong, a lot of people clearly don’t have it. Business ethics? Who cares. Insider Trading? Common place. Cheating for self gain? Standard. One recent event that shows the turbulent and frequent questionable nature of what is real/fake and right/wrong occurred in journalism. The west often accuses Chinese journalism as censored, government approved and basically propaganda. Although everyone and their grandmom knows that there is a natural sensitivity for the government on certain issues (like falonggong, protests) on the national scale, journalism on the local level is more open than I had previously thought. There are definitely news reports, on the radio, in TV and print describing corruption, crimes, ... Amp

Suzhou’s Investment Zones 2007-08-14 10:45:09 Due in large part to its proximity to Shanghai, Suzhou was one of the first regional cities that foreign companies looked to setup manufacturing. More and more foreign companies are continuing to move to Suzhou to open new factories as the prices of land and labor costs are lower. For Suzhou, a city that has planned their economy to support and benefit from the growth in Shanghai, the foresight and planning has paid off. Many foreign executives located in Shanghai look to Suzhou before anywhere else for further investment in the south as operations can be managed from Shanghai if need. However, the city is also very suitable to supporting an expatriate lifestyle, and many project managers are opting to move to Suzhou full time Suzhou Industrial Park (SIP): Perhaps the most well known investment park in the foreign community, SIP is a joint venture between the Singapore and Suzhou governments. Since being established in 1994, the Singapore—Suzhou Industrial Park has att ...

Word Watch: The Dollar Bomb 2007-08-14 08:49:44 Earlier this week two Party officials speculated aloud about the possibility of using China’s large dollar holdings as a weapon against the US economy in the event that Congress passed what the Chinese consider to be punitive or threatening trade legislation: “China threatens to trigger US dollar crash” The officials speculated that a sell-off of Treasuries and […] Read Original Post Here ...

Chinese Thieves Revealed 2007-08-13 20:41:41 This is an issue that everyone who lives in a big city has to deal with. It’s something unpleasant, disgraceful, kinda sad, and ultimately just sucks. Yes, I’m talking about thieves, pick-pockets, purse snatchers, whatever you want to call it. As a relatively forgetful person, I’ve had many encounters with people taking my stuff. The first time was probably in the 1st or 2nd grade when someone stole my bike in Ohio. My BMX “Batman” bike was great but some kid probably saw how cool it was and rode it away when I didn’t lock it up tight. During my time in China, I have always been warned by my friends and relatives to be careful of thieves. They often recount horror stories they hear on the news: A guy walking around is stabbed for a cell phone or wallet, and guys on motorcycles drag a yuppie for a ways while trying to snatch her purse. There are other stories about gangs of people working as a pack (ie. Ocean’s 11 or Gangs of NY). I believed that these ...

Mattel’s China Toy Subcontractor Commits Suicide? 2007-08-13 13:59:14 Washpost claims that Zhang Shuhong of Lee Der Industrial Co., Ltd., the leaded toy supplier to Mattel, has committed suicide. Zhang’s colleagues claim, apparently over the telephone, his death by hanging in his factory. Terrible, if true. But, true? Please, can I be skeptical of this one, too? This report strikes me very wrongly. I have emailed the writer of the piece, asking for corroboration. Read Original Post Here ...

Foxconn: Behind the Scenes 2007-08-13 13:40:38 A few years ago while working on a project for a global OEM in the construction equipment industry, I spent a week at the Bauma show in Shanghai interviewing 70+ OEMs and component suppliers who were showing off their products. It was a very tiring week, but what I came away with was that this was an industry that would one day be dominated by Chinese OEMs. There were already 4-5 very strong Chinese firms with in-house technologies, but more importantly maybe only 2-3 of those would have been considered a threat by the likes of Caterpillar, Kobel, Cummins, Bobcat, Parker Hannifin, or any of the other global OEMs (including my client). Many of the firms were flying under the radar while they collected technologies, built service platforms, and entered 3rd markets in Africa, India, and Eastern Europe. the advances were measured, the splashes caused few ripples, but once the market was lost… it was lost forever. for these firms, the element of surprise was key, and critical to th ...

China Raises the Stakes, A Comrade in Arms, and USCBC Export Stats 2007-08-13 13:40:37 China threatens to trigger US dollar crash @ Daily Telegraph this article (and other like it) are inflammatory, assuming a lot, meant to sub salt in open sores, and are generally something I would dismiss as just another ad generator (China bashing is popular)… but this article (and others like it) are important for everyone in the U.S., in China, Sourcing from China, selling into China, or has a U.S. dollar denominated asset, and it is because China will flush the dollar down the drain, but because the RMB is gaining strength, and by studying the worst case scenario, executives will be able to plan for the steady she goes scenario. Personal Responsibility in China Exporting @ Silk Road International For the last few weeks, I have begun feeling a bit lonely in my views that firms need to start accepting the fact that they are responsible for maintaining the integrity of their supply chain, and their brand. However, Silk Road has come out with a very well written, and well balanc ...

New Poll: Who Really Needs Whom? 2007-08-13 13:40:37 Within the last week, the stories about how China could and would flatten the USD through a dumping of the debt have been widely reported in the media. China’s Threat to the Dollar is Real, China’s economic leverage, Big guns wheeled out in US-China war of words, etc. so.. this week I would like to know who needs whom most? Who would feel the pain more should this option occur, and how wide would the impact be felt? Would the U.S. economy be able to withstand the pressure, or would a severe recession take hold? Without the U.S. economy, would the Chinese economy be able to survive and expand at the 10%+ it has been…. or would it slide back into the 90s? for those that have more opinion than our vote box will allow, write in with your projections. Surely, with other headlines like China expresses confidence in U.S. dollar and China Promises Not To ‘Nuke’ Greenback, this is purely an academic exercise… right? Read Original Post Here ...

Even More Real Estate Regulations in the Pipeline 2007-08-13 13:40:36 Further to my post last week More Real Estate Hurdles Coming Soon for Investor in China, comes the even more ominous China Daily story China tightens rules on foreign property investors. According to the article: China is tightening its grip once more on foreign investors in Chinese real estate, banning them from borrowing offshore in the latest effort to tame property prices and cool the economy. The new rule, set out in a circular from the State Administration of Foreign Exchange , could squeeze foreign investors who take advantage of lower interest rates outside China. 18 months ago, I actually was working on a case that had offshore structure and financing through low interest loans in the States.  With the appreciating RMB, the client was looking at not only a RMB appreciation that would offset the interest payments, their leveraged return was significantly higher (double digit difference) than if they had leveraged in China. This was a result of interest rates in the U.S. bei ...

Beyond Monitoring: Building a Sustainable Supply Chain in China 2007-08-13 13:40:36 Business or Social Responsibility has come out with an excellent 20 page brief entitled Beyond Monitoring (PDF download here). A very timely piece, the article does an excellent job of showing the reader the various angles and approaches that a company must take in building a sustainable supply chain… something Mattel Toys did years ago, something RC2 wished they had done, and something you should be looking at as you assess your supply chain risks “Beyond Monitoring” presents a four-part approach that is designed to address the root causes of social and environmental shortcomings in global supply chains. Our objective in producing this paper is to encourage companies to remake strategies, redeploy resources and consider new partnerships in pursuit of a model that has the potential to achieve more lasting change. The approach we are advocating integrates labor and environmental considerations more fully into companies’ procurement efforts. It also seeks ...