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There is no trust in China and thatís a problem

David Blaza
7/21/2012 06:36 PM EDT

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PoorRichard0
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re: There is no trust in China and thatís a problem
PoorRichard0   7/23/2012 6:36:40 AM
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Many Chinese companies prefer to do business with foreigners even when the profit margin is much lower because foreigners are trustworthy.

eewiz
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re: There is no trust in China and thatís a problem
eewiz   7/23/2012 11:09:45 AM
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Yup. seems to me that this "lack of trust" among local companies gives an opening to foreign firms to startup and thrive in China.

KB3001
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re: There is no trust in China and thatís a problem
KB3001   7/23/2012 8:51:12 AM
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@David, this is China's major challenge as it seeks to move away from a mainly low-cost mass-production economy to a high value-added one. I believe the Chinese authorities are fully aware of this but it will take them time and there are many vested interests that will stand in the way. I am afraid the West cannot do much in the meantime as it struggles with its own major socio-political problems.

cdhmanning
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re: There is no trust in China and thatís a problem
cdhmanning   7/23/2012 10:36:24 PM
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There are likely some left over trust issues from the old days when people were expected to spy on each other and there are some current issues with the treatment of trade secrets etc. However, I expect these are mainly growing pains. As the industries and brands mature, the value of trust will go up and the trust will emerge. Was it really any different during the high growth periods in the west?

nitindeo
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re: There is no trust in China and thatís a problem
nitindeo   7/24/2012 12:04:38 AM
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David: I have been to China many times and have done business there as well. I believe this is more of case of ignorance than trust. Most of them are ignorant of the fact that designing 'alternate' products is not legal. Isn't it an American saying, 'Don't re-invent the wheel'? :-) But, this is different and I believe it is our responsibility to educate them of the legal aspects of designing such alternate products. - Nitin

tgase
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re: There is no trust in China and thatís a problem
tgase   7/24/2012 11:00:39 PM
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Hmmm...I'm not sure. I believe ignorance is an excuse.

Kenneth Wyatt
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re: There is no trust in China and thatís a problem
Kenneth Wyatt   7/24/2012 2:31:51 PM
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Good article. On the one hand, companies like Seeed Studio and others are innovating and reinvigorating hobby electronics and small-scale WW product development, there are other companies in Cina that steal IP and capitalize on lack of enforcement by local authorities. One case in point is a company that purchases(?) regulatory standards typically sold for 100s of dollars each and then resells the pdf versions for $8 to $20 via their web site. I recently blogged about that in my EMC Blog at Test & Measurement World: http://www.tmworld.com/electronics-blogs/the-emc-blog/4378139/Pirated-Standards--Could-It-Be-True-

Udar
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re: There is no trust in China and thatís a problem
Udar   7/25/2012 12:33:01 AM
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"China could legitimately criticize the United States for an equally unjust political system that defines corporations as people and allows unlimited contributions to political candidates " You believe that communist government (and China is communist country, no mistake about it) should find our system of government EQUALLY unjust as theirs? What does that suppose to mean - that they agree that they are unjust, but so are we, just as much? Or do you think that SuperPacs are equal to communism? Do you think that its OK to allow unions to have unlimited contributions to political candidates but not OK for corporations? Do you think it's wrong for Sheldon Adelson to give money for political causes but it's OK for Soros? Do you think it's OK to boycott and punish a corporation for their officer's views, but not OK if they pay for political ad? Is it OK to tax them but not OK for them to have voice? Do you think that freedom of speech is a bad idea, just like Chinese do? And most importantly, why would you start technical article with such inflammatory political statement? Are you a journalist or an agitator?

KB3001
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re: There is no trust in China and thatís a problem
KB3001   7/25/2012 1:58:45 AM
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"And most importantly, why would you start technical article with such inflammatory political statement? Are you a journalist or an agitator?" That's called putting the other side's point of view across, and it's proper journalism. The alternative is propaganda!

Udar
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re: There is no trust in China and thatís a problem
Udar   7/26/2012 3:58:21 PM
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No, its called putting journalist's personal views across, and its not a journalism at all. It's a propaganda.

KB3001
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re: There is no trust in China and thatís a problem
KB3001   7/26/2012 5:45:38 PM
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It did read like this to me udar. Defending positions you do not necessarily hold is a sophisticated intellectual exercise :-)

pedro-juan
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re: There is no trust in China and thatís a problem
pedro-juan   7/30/2012 5:36:21 PM
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I would suggest that they [the Chinese government] might find western governments to be EQUALLY different and possible unjust to their sensibilities. I do think it is OK to tax a corporation but allow it no voice since it is not a person and therefore not a citizen. Commercial enterprises exist at the pleasure of the citizen and his/her government. That is why we regulate their operation [for safety and honesty] so that they serve the citizenry well.

timemerchant
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re: There is no trust in China and thatís a problem
timemerchant   7/26/2012 9:59:50 AM
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Nice article. I was from South Africa, and now in Oz, so my view will take into account the African banking scams that were all too common. In China, you get to see the fish swimming in a tank before you choose to eat it, and the duck comes with the feet on so you can see it is not pork. They have been diddling people for centuries which is why even food choices have to prove their authenticity, and when I get an invitation of free shipping via Avnet Express Asia with Chinese letters, I simply delete the email. All my purchases online are from the US as I have never experienced any problems over almost thirty years. Even if the product is made in China, I will order from either the USA or Europe as I am not interested in credit card problems with no recourse a couple of months down the tracks. I had Chinese students in South Africa who had Xilinx development software even before the academic releases came out, and I could not impress on them that they did not need to copy the stuff because we had a license. That was the new generation, and they are the ones you will be dealing with for for IP protection. Good luck.

mvos
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re: There is no trust in China and thatís a problem
mvos   7/26/2012 12:14:46 PM
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You must still trust they cook what you saw.

Toad.
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re: There is no trust in China and thatís a problem
Toad.   7/27/2012 1:05:48 AM
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Well folks I've never been to any of the asian countries, Europe and the America's but not Asia. When I pick up an article for sale and read the inscription "Made in China", I instantly put it back thinking about all the bad press China's industries have generated. But then I remember the 1960's had "Made in Japan". And EVERYBODY knew that stuff was just cheap junk. Isn't China going through their "capitalism learning curve" or maybe more appropriately "learning how to play nice with the rest of the world". I think both started out their technology endeavors taking the cheap n' dirty route. Made in Japan doesn't ring any horror bells for me any more.

abraxalito
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re: There is no trust in China and thatís a problem
abraxalito   7/27/2012 8:28:02 AM
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'Rights' seem to me to be a Western invention. Even though I'm a Westener 'rights' seem to me rather like a religion - you either believe or you don't. I'm agnostic on 'rights'. On 'IP rights' I'm an atheist. Not believing in 'rights' is not the same as lack of trust.

maguro_01
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re: There is no trust in China and thatís a problem
maguro_01   8/6/2012 4:26:12 PM
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There is a book called "Trust" by Frances Fukuyama discussing these issues across cultures. China doesn't seem to use the Social Contract idea but uses something like social networking instead. The safest way to meet a new person in any context is by introduction by a third party known to both who would lose face if someone misbehaved. People start out in the family or university and work outwards. Businesses years ago could only grow to the size a family could control - of course that's no longer true. Being a reliable part of someone's network there can benefit both sides. That may be true anywhere, but not as true as in China. When China became Capitalist in its way, there was little business law as one would expect in a Communist country. So they started adopting/writing business law apparently starting with the regulations from Hong Kong which were based on British law. As time goes by people in business will expect to operate in an orderly, predictable, legal environment. Maybe that will sneak the Social Contract idea in the back door and cause basic cultural change. Ironically the Social contract is deteriorating here, of course. It's harder and harder to be a tech when the internal culture of US companies becomes just warfare like China. There is also the matter that the economy in China is so bitterly competitive and so many people want to be a dealmaker. The networking principle means that outside people's real agenda is unknowable. In some places corruption at the top has deteriorated the conduct of everyone. Things rot top down, just as they do here when that happens. Our Pay-To-Play political financing system is rotting us out too. But otherwise government here usually isn't corrupt, especially locally. Another book is "42 Rules for Sourcing and Manufacturing in China: ", R. Coates though it's 2009.

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