China factories
First, a little diversion. The start of our journey in China included attending a trade show. The exhibit hall actually had two different shows going on. We were only able to attend one of them.
Here's a photo of my son. Can you guess which of these two show we WERE NOT attending?
We were fortunate enough to visit a variety of factories while we were in China. Factories included:
1. Bungee Cord, shoe laces & straps
2. Metal objects (badges, buttons, ornaments, divot repair tools)
3. Bags (backpacks, sports bags, etc.)
4. Bamboo golf tee factory
5. Bamboo furniture factory
6. Bamboo laminated wall panel factory
At nearly every factory, prior to our tour, we were escorted the plant manager's (or owner's office), where he would serve us tea.
Based on the size of the firms, the tea sets were increasingly elaborate.
We toured many factories that were, in fact, owned and run, by Taiwan businessmen. They simply leased the facilities from the Chinese government and provided employment for the Chinese workers. The Chinese government was clearly intent on driving the economic activity for the country. Additional factories (available for leasing) were still under construction by the government.
But here's what stunned me the most:
In every city, town and village, we saw lots of buildings with the same design. The above photo is a perfect example. Even in hamlets of less than 500 citizens, I saw two and three story buildings, in which the upper floors were for residences, while the 1st floor (which faced the street) consisted of a row of 10' x 20' garage spaces. These spaces were then used for a variety of business activities. Everything from a small restaurant to a machine shop might be located in succeeding store fronts.
It was entrepreneurship at it's finest! Even in the smallest communities, people were provided space to start their enterprise.
Now, I did see several of these facilities covered by a pull-down garage door. I initially thought the closed facilities were a reflection of the faltering economy. However, at 5 pm, just as the factory workers were getting off, the doors sprung open, and "after-hours" entertainment venues opened up.
It may be tough to see, but in the above photo, numerous pool tables and other games were pulled onto the sidewalk, so workers could enjoy some post-work fun.
The Chinese are suffering from the downturn in the world economy. But they are now focused on building up their middle class, so that their economic engine can continue to produce for their own citizens.
The "C" in China no longer stands for Communism.......it stands for Capitalism.
In even the smallest towns, I saw the seeds of entrepreneurship, that will continue to propel this country forward.
Here's a photo of my son. Can you guess which of these two show we WERE NOT attending?
We were fortunate enough to visit a variety of factories while we were in China. Factories included:
1. Bungee Cord, shoe laces & straps
2. Metal objects (badges, buttons, ornaments, divot repair tools)
3. Bags (backpacks, sports bags, etc.)
4. Bamboo golf tee factory
5. Bamboo furniture factory
6. Bamboo laminated wall panel factory
At nearly every factory, prior to our tour, we were escorted the plant manager's (or owner's office), where he would serve us tea.
Based on the size of the firms, the tea sets were increasingly elaborate.
We toured many factories that were, in fact, owned and run, by Taiwan businessmen. They simply leased the facilities from the Chinese government and provided employment for the Chinese workers. The Chinese government was clearly intent on driving the economic activity for the country. Additional factories (available for leasing) were still under construction by the government.
But here's what stunned me the most:
In every city, town and village, we saw lots of buildings with the same design. The above photo is a perfect example. Even in hamlets of less than 500 citizens, I saw two and three story buildings, in which the upper floors were for residences, while the 1st floor (which faced the street) consisted of a row of 10' x 20' garage spaces. These spaces were then used for a variety of business activities. Everything from a small restaurant to a machine shop might be located in succeeding store fronts.
It was entrepreneurship at it's finest! Even in the smallest communities, people were provided space to start their enterprise.
Now, I did see several of these facilities covered by a pull-down garage door. I initially thought the closed facilities were a reflection of the faltering economy. However, at 5 pm, just as the factory workers were getting off, the doors sprung open, and "after-hours" entertainment venues opened up.
It may be tough to see, but in the above photo, numerous pool tables and other games were pulled onto the sidewalk, so workers could enjoy some post-work fun.
The Chinese are suffering from the downturn in the world economy. But they are now focused on building up their middle class, so that their economic engine can continue to produce for their own citizens.
The "C" in China no longer stands for Communism.......it stands for Capitalism.
In even the smallest towns, I saw the seeds of entrepreneurship, that will continue to propel this country forward.
Fanatastic Bob funny yet informative I look forward to the next installment
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What an incredible trip!
It seems the entire trading relationship with China (and everyone else trading with China) is one way. I see that you were at a 'sourcing convention' rather than a 'distribution convention'. China produces- everyone else consumes. With all that surplus capacity, how can we possibly sell goods into the Chinese market? What can we produce that they will purchase?
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I'll try to write on this in a future post.
However, as China's middle class continues to develop they are demanding better goods. Western goods are valued as are western foods. We, as a country need to focus on that opportunity.
China can't provide the quality or consistency of food that the US can. It's certainly one opportuity that exists. And China realizes that they need to keep the US in good financial shape. They can't have our country stop purchasing their goods, or they'll be in real trouble.
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