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Cisco, Huawei and trade wars

George Leopold
10/12/2012 05:41 PM EDT

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Bert22306
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re: Cisco, Huawei and trade wars
Bert22306   10/16/2012 8:41:56 PM
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Yes, but your point only goes so far. You can't concentrate only on the installation industry. As nice as that part of the equation might be, it's not enough. Economic growth occurs where innovation is happening. As others have pointed out, design and manufacturing feed off one another. To shorten product cycles, eventually these two want to be in closer proximity.

Bert22306
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re: Cisco, Huawei and trade wars
Bert22306   10/16/2012 8:45:07 PM
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"Some people never consider co-operation as an option, never respect others and think things from others perspective." Exactly. And the lack of IP protection enforcement in China is "not looking from the others perspective." Especially true when design and manufacturing are done in separate countries.

Etmax
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re: Cisco, Huawei and trade wars
Etmax   10/17/2012 1:36:23 PM
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I personally don't believe China is dumping, they have such an extremely low cost base that they really don't have to try to undercut the US or other western countries. Really, the options are: 1. Start paying US workers $10 per day for 18 hours labour while removing the right to strike and all worker protections etc. allowing the greedy operators of essentially US businesses to buy their Beamers & Merc's while still employing locals (if you can call it employing) (figures may be a little off, but get the drift) effectively leveling the playing field. 2. Tax imports based on their origin and the costs associated with manufacturing in those loactions effectively leveling the playing field. 3. Build a great wall to keep out the Mongol hoards (:-) ala Great Wall of China. 3. Ban outsourcing. There are presumably many more variations of these themes, but as long as currently China and next year maybe Africa have such an extremely low cost base there just simply isn't any competing. I've run several projects over the years, and as soon as it becomes a volume or commodity product it has to be made in Asia, Africa or Mexico. I remember for one product the manufacturing cost (assembly/test) not including parts was $4.60 in China compared to $23 in Australia (sorry guys didn't get quotes from the US) for a product that had to sell for about $32. As you can see, no contest. I agree that China will hurt their own market for their goods eventually, and I see the US labour and deficit situation a precursor. Eventually someone will have to have the balls to up taxes to be able to feed a growing No. of jobless with a shrinking tax base. People just won't earn enough to buy unnecessaries. I'm not saying it's a great idea, only that it's an inevitable outcome.

microe
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re: Cisco, Huawei and trade wars
microe   10/17/2012 8:17:56 PM
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to Bert22306: lack of IP protection in China is not many Chinese want. It is now more and more clear that it is against China's own R&D development. Rome was not built in a day. This is actually an area to have good cooperation rather than confrontation.

microe
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re: Cisco, Huawei and trade wars
microe   10/17/2012 8:41:17 PM
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when you said "copied Cisco", show the evidence, file a lawsuit. Huawei/ZTE has business outside of China. There is always legal ways to protect your rights in or outside of China. You should go to Afghanistan if you really like wars

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