France shipping giant, CMA CGM, has just given Chinese shipyards the contract to build 16 container vessels worth a total of US$3.2 billion. This is the biggest order yet that Chinese shipyards have ever been given in building ships for foreign customers. This is a testimony of how far the Chinese shipbuilding sector has grown over the years, being able to even build aircraft carriers themselves. The ability to compete on price and quality must have swayed the French to give the business to China rather than Japan or South Korea.
What sectors have China taken over from Japan within three decades? High Speed Railways, Electric Vehicles, Mobile Phones and Communication Equipment, all of which Japan were the kingpin in days gone by. The Japs must be having sleepless nights and angry that China is taking over what the Japs used to excel in decades gone by. But winning or losing the competition is the normal progression of things. Japan also lost much of its consumer goods market to the South Koreans, particularly in consumer electronics like TVs.
When countries cannot compete, they eventually lose out. Unless Japan can never follow the USA's modus operandi by creating hurdles, false accusations and sabotage, when they fail to compete with any country, industry or company. The USA foiled Toshiba of Japan and Alstom of France, ostensibly to stifle their business that the USA could not compete with, just like taking action against Huawei and now TikTok. There is nothing the Japanese can do like the USA, using arm twisting and playing hardball with the competition when it fails to overtake or falls behind the competition.
Few decades ago, Japan tried to dump obsolete washing machines on to the Chinese market, thinking it is a rubbish dump for their unwanted and unsaleable products at home. Today, China is the largest manufacturer, exporter of, and consumer market of washing machines. The China market is no longer the turf of Japanese manufacturers. And now Japan is competing with the South Koreans as well in the global market for consumer products.
Anonymous
1 comment:
Japan can compete with South Korea, and in turn both can compete with the USA. They can then sell their expensive stuffs to each other, and they can live happily ever after.
Now the Europeans are enjoying the expensive oil and gas, thanks to the USA. Wonder how is the EU going to compete with expensive products produced with energy several times that of China and India. The point is, their products could not even compete successfully with the USA, where energy is nowhere at the level of Europe, not to talk about competing with cheaper alternatives from China. But they like it this way, even with factories shifting to USA and elsewhere.
As for those companies that have departed from Russia, well, no more cheap energy, no more Russian market to take advantage of. China and others must be deeply thankful for the space available with their withdrawal from Russia. It is a blessing in disguise for China and those now making hay while the sun shines in Russia. Please let us refrain from describing this as taking advantage of someone's misery.
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