5/04/2024

China moving up the technology chain

 Let us be honest. China is moving up the technology chain and not just content to be an iPhone assembling hub forever, with workers making pittance out of assembling iPhones, while Apple laughs all the way to the bank. China is not content to let its citizens be paid 'slave wages' to make products for freeloading by the perpetrators of the 'slave wages' mantra.

China's supply chain for smartphones does not serve Apple alone. There are dozens of smartphone manufacturers in China, all Chinese brands at that, that can source their inputs from the supply chain down the road. The USA is forcing Apple to decouple from China's supply chain, so what is the point of fretting over Apple's eventual departure, even if it does happen.

China is placing priority in overcoming its chip sector reliance on the West, Japan and South Korea. China is ready to fight its battle against the 'Chips Alliance'. Not only in chips manufacturing, but China is also going into chip making equipment like lithography machines and selling them cheap to make ASML uncompetitive.

Another area that China is moving into is aviation, one that China has yet to have a foothold to counter the likes of Boeing and Airbus. The falling fortune and reputation of Boeing is a good opportunity for China, the right place and the right time to take advantage. It will be difficult no doubt, but not impossible. Impossible is not in the vocabulary of the Chinese. They now have a space station, a Beidou satellite mapping system for its miliary, satellites circling the moon, have been to the moon and have landed a probe on Mars, are the frontrunner in high-speed railway construction that are in demand around the world, and helping to lift countries out of poverty.

That is where China is moving, not in the least worrying trend about Apple's move to India.

Anonymous

1 comment:

  1. According to Kevin Walmsley of the site 'Inside China Business' the USA is encouraging the Philippines to set up a nickel supply chain to cut off China's dominance in nickel. The USA will provide financial help while the Philippines will have to set up the refining facilities. How feasible is that project going to be? Burnt to a crust will be the result.

    Setting up the refining logistics is not a cheap proposition and takes time and expertise. Even if the Philippines managed to do so, can it compete with China? Already some nickel processing facilities around the world are closing shop due to inability to compete with Chinese manufacturers. And the Philippines is going into this sector or just building castles in the air and feeling good about it.

    Like India celebrating the India/Middle East/Europe Corridor with a song and dance upon being announced by Biden. Biden probably already forgotten the whole thing, while the Indians are still hanging on to the fairy tale ending.

    Biden had promised many great sounding propositions - US$350 million digital transformation of Africa, US$600 billion global infrastructure projects, India/Middle East/Europe corridor, railroad across the Pacific (how to build a railroad over the ocean I just wonder), US$150 million for ASEAN countries to buy sampans for patrolling the seas around ASEAN countries (more a bribe). All 'Chau Tar' propositions.

    If you believe and love fairy tales, Biden is the right person to go to.

    ReplyDelete