Here are a few of my thoughts and feeling about this.
In my opinion we should stop funding foreign students with state and federal grants. There should be a preference for US nationals in US schools. There is value in have diversity in Universities but I've seen US engineering students take a back set in grad schools.
Take a read of this article.
"American Universities Infected by Foreign
Spies Detected by FBI", Bloomberg, April 8, 2012:
Second, our corporations have become bloated and top heavy with outrageous executive perks and salaries. see
The ratio of Execs to blue/white collar workers are out of touch with reality.
Third, I have been involved in small business electronics manufacturing. I know of many, many products that have been cloned and just outright stolen and then resold in the US. It is far easier to clone and make fine-scale improvements on existing products.
Fourth, there are more sinister activities going on with Chinese manufacturing.
It’s not a complete view to consider oversea Chinese students only benefit China. First of all, it is not free education. Undergraduate level scholarship is rare. For graduate levels, the reason the US universities can offer scholarship and financial aid is because professors need students to help their research and they can’t find enough resources domestically. US didn’t pay previous education for the international students, but at graduate level, this is the first time students’ brain can be useful instead of only absorbing knowledge. To some extent, this is more like the developed world exploiting cheap “brain” from developing countries by directly harvesting the brains and skipping paying all the early years’ education. Things will continue to be like this because smart American students still consider business, medical and law schools as their first choice and fewer students are willing to commit their career in engineering.
For those graduated international students, some founded or co-founded a lot of well-known companies in Silicon Valley … there are many angles to this topic ...
Why is this a surprise? I agree with Junko, the quality of Chinese products is excellent in many cases. I bought a USB WiFi adapter for $12 that was designed and manufactured in China and it works better than anything else I have that cost 3x the amount. It's the natural progression of technology. Western companies cannot expect to have 50% margins forever. They should have anticipated a time when local companies would be able to compete in price, quality, and performance, and the time has arrived.
Absolutely untrue! More and more products from China that were somewhat acceptable are worsening in quality. This is not being stuck in the past decade, this is today’s reality. We have so many computer components that never failed before that are now regularly replaced and this goes for too many products that are foisted on consumers.
Isolation never worked. NASA rejected China in the ISS program, but that didn’t stop China to develop its own space program, and actually it encourages China’s own space program. There are piracy issues but that might be deal with. Things won’t change over-night but things will get better. The 3D movie Avatar managed to generate 182 million US dollars revenue from mainland China, which beats UK, France or Germany’s box office. It is not like Chinese only watch pirate versions. Sometimes if they think it is worth it, they are willing to pay. Apple also did very well and about 1/6 of Apple’s revenue come from China.
Surprised no one commented on the night/day difference in Regulatory environment. And I'm not referring to the banking/financial regulation but the FCC and U/L style of Western nations. Compliance is a HUGE cost here in the West that East companies do not face.
I believe the answer needs to be a localization model for the Western firms to compete. But in doing so they must set up a "firewall" between the product compliance levels of a part targeted for China vs a Western country.
I disagree with Junko and KB3001. 15 months ago we secured a huge Analog ASIC from a China Automotive company. One of their main reasons for choosing us, they told us, is the importance of “USA Inside”. They flat out said that Chinese chip companies take short cuts and offer no innovation. For us, the game is still on!
This is all similar to what they said about the Japanese chip manufacturers a decade or two ago. If this were all true, there would be no US chip manufacturers left now. There will definitely be powerhouse Chinese chip companies in the future, but in the same vein, there will also be US / European / Japanese ones as well. Innovation will always trump lower cost manufacturing in the long run.
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