Comments on: Poorly Made in China, Paul Midler—BOOK REVIEW

By: Cary

Cary — Sat, 04 Jul 2009 16:11:43 +0000

bad sentence..
Could you please correct my last sentence

Reporting on at least a few of the successes would have enhanced Midler’s work as a more balanced reporting methodology.

By: Cary

Cary — Sat, 04 Jul 2009 16:07:40 +0000

As I was reading Midler’s “…this is my life in print..” book I kept wondering: “Didn’t he have any success stories?” … “at least from the importer’s side?”

We’ve had a number. I won’t kid you in saying that they didn’t come without considerable effort.

Reporting on at least a few of them would have enhanced Midler’s in a more balanced reporting methodology. And no, I’m not a newspaper man.

P.S. I did love the book!

By: marcus

marcus — Fri, 03 Jul 2009 01:12:47 +0000

Scott, the statement below that you made reminds me of the experiences of many western men going to China in search of a wife. They go with a win win concept in mind. Many have little idea of the culture they are dealing with. They find themselves paying for many things because of ‘cultural’ reasons. Ever needing to be accepted they are released of the burden of their wealth by wiley well thought out techniques, that have been tried and proven over many years. I love the point of suspending the common sense and commercial sense. I see that as so relevant in the seeking wife behaviour of some western men in China. Here is the statement of yours that I am referring to:

“Again and again patience and understanding are extended (Americans are great at bending over backwards to accomodate supposed “cultural differences”, even to the point of suspending their common sense and commercial experience) which the Chinese side uses as the measure of gullibility. Two different cultures, two different expectations, two very different methods”

Marcus

By: ScottLoar

ScottLoar — Tue, 30 Jun 2009 01:58:26 +0000

I recall an instance when one of the corporate subsidiaries, a plant in south China under Chinese management, actually accepted a sister company’s order for project work to an important corporate customer, then quietly farmed out the entire lot to an unrelated and non-corporate manufacturer. The Chinese management, acting without approval and discovered only after the fact, thought this was justified and even reasonable to meet their EBIT, and accepted no responsibility when the goods did not meet the customer’s specs or expectations.

By: ScottLoar

ScottLoar — Tue, 30 Jun 2009 00:32:04 +0000

Without necessarily intending so the supplier’s practice of accepting the buyer’s price point with little negotiation (the supplier wants the order) buoys the buyer’s hopes, typically deluding the buyer into seeing himself as a skilled negotiator who understands the Chinese as casual conversations on the planes back from Asia testify. In short order that “good, personal relationship” the buyer assumed now sours, leaving the buyer little wiser but a lot more cynical.

By: ScottLoar

ScottLoar — Tue, 30 Jun 2009 00:18:57 +0000

“Typically, the importer negotiated prices in advance of any order. Then, throughout the production process, (the supplier) would look to find savings where it could.”

This practice predates experience in Taiwan in the late 60’s. The buyer states a price point which the supplier accepts to get the business. Then the supplier (I emphasize “supplier” who is not necessarily the manufacturer despite the letterhead, signboards and claims to be the manufacturer) works backwards from that price point to figure costs and margin. The squeeze is put on all the ancillary suppliers, work is farmed out to the lowest bidders, and the classic maxim “shoddy materials and skimp on labour” 偷工減料 is confirmed once again. A spreadsheet would show the component manufacturers, even for something as seemingly simple as tea kettles, as a welter of confusion and irresponsibility.

By: ScottLoar

ScottLoar — Mon, 29 Jun 2009 21:18:36 +0000

American buyers typically first come to mainland China with the “win-win” attitude that both parties will co-operate for a long-term relationship that profits each, little understanding the Chinese supplier takes the visit as a chance to make fast money, and the foreign partner’s money is the easiest to make. Again and again patience and understanding are extended (Americans are great at bending over backwards to accomodate supposed “cultural differences”, even to the point of suspending their common sense and commercial experience) which the Chinese side uses as the measure of gullibility. Two different cultures, two different expectations, two very different methods.