China-Plus-One Was Just China All Along (indiadispatch.com)
- Reference: 0178672062
- News link: https://slashdot.org/story/25/08/14/0811259/china-plus-one-was-just-china-all-along
- Source link: https://indiadispatch.com/p/china-plus-one-was-just-china-all-along
> India's blueprint for displacing China as the world's electronics workshop contains a rather extraordinary feature: the entire Indian edifice [1]requires Chinese companies to supply the technical architecture , manufacturing know-how and operational templates that would make such displacement theoretically possible.
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> Let's start with Dixon Technologies, India's flagship domestic electronics manufacturer. The company has systematically built indigenous capability through a growing constellation of Chinese partnerships: Longcheer provides the design intelligence, Kunshan Q-Tech delivers camera module expertise, Chongqing Yuhai supplies precision-molded components and HKC brings display technology. This pattern of structured dependence has become the organizing principle of India's electronics manufacturing push.
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> [...] The current architecture sees Chinese companies retain control of the critical knowledge while their Indian partners provide labour arbitrage and regulatory navigation. Under this arrangement, India isn't constructing an alternative to Chinese manufacturing so much as establishing Chinese manufacturing's most elaborate subsidiary operation, underwritten by Indian taxpayers and marketed as national renewal.
Many countries, but most importantly India and Vietnam, have worked hard in recent years to attract businesses that decided to diversify away from China, a strategy analysts have dubbed as "China Plus One."
[1] https://indiadispatch.com/p/china-plus-one-was-just-china-all-along
China still loses jobs, capacity (Score:3)
Moving factories to India or Vietnam still means regular Chinese citizens lose those jobs. It also means the manufacturing capacity belongs to India or Vietnam, rather than China, despite China having nominal control of the output. India and Vietnam will be building their fortune the same way China did off the back of the United States decades ago.
China also has an overcapacity problem in several sectors, such as steel; automotive; and solar. Now imagine that the CCP "solves" this problem by moving capacity overseas (or simply shuttering factories) rather than by opening up new opportunities to sell their excess of product. Instant economic contraction.
D'oh! (Score:1)
The summary was going pretty good until they falsely dragged Vietnam into it.
Yep, that will work well... (Score:2)
It requires Chinese companies to play along. But guess what, Chinese companies are not at liberty to just make such decisions themselves. That is why the US has a lot of offshoring but China does not. Obviously, there is a moral problem here (in both cases), but guess which approach does result in the more stable domestic economy.
Re: (Score:2)
You probably don't read about China offshoring much, but that does not mean China does not do it. But China is already moving low paying jobs to other countries, like Vietnam or Bangladesh for clothes manufacturing.
They all start like that (Score:2)
China started by doing this with Japanese investors building Japanese factories, managed by the Japanese. They eventually figured out how to do it themselves.
Whether India will try to do the second part remains to be seen. They can make plenty of money acting slapping a "Made in India" sticker on Chinese goods, so maybe the incentives aren't very strong.