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I think you missed the first point... the other comment never states that only Chinese firms can serve Chinese customers at all. He/she was more in agreeance wi

by mikeg8 11y ago

I think you missed the first point... the other comment never states that only Chinese firms can serve Chinese customers at all. He/she was more in agreeance with your point about chinese firms not needing to operate outside of china because their domestic market is large enough to serve their needs. Why leave when you have a 1bn+ person market in front of you? I don't think chinese firms can't get a foothold abroad (see Huawei), it's just that they have less desire to.

sharetea 11y ago
he said 'nobody else is going to come in and take those customers except Chinese companies'
- jonknee 11y ago
  And he's not far off... Yum is even spinning off its Chinese operations into a separate company that will reside entirely in China. http://www.wsj.com/articles/yum-brands-to-spin-off-china-business-1445338830 http://www.wsj.com/articles/yum-brands-to-spin-off-china-bus... Apple is the biggest success story, but that could change literally overnight. It's a big risk to have large foreign operations in China.
  - peteretep 11y ago
    The Chinese government couldn't cut off Apple at this point. The middle class are too bought in as users/owners, the rich make too much money from being suppliers, too many poor people have jobs depending on being Apple suppliers. They would have massive civil unrest.
    - sulam 11y ago
      Massive civil unrest because Apple is kicked out of China? Ummm, there wouldn't be massive civil unrest in Palo Alto if Apple was kicked out town. People buying Apple products just don't do massive civil unrest. They'd bitch on Twitter (or Weibo/etc), but riots in the streets because you can't buy an iPhone? I'm as big an Apple fan as the next guy, but that just isn't credible.
      - peteretep 11y ago
        Do you have any more you can tell me about your time in China? While you were there, what were the defining aspects of the Apple users you met? Were they representative of your other middle-class friends there? When you spoke to FoxConn employees, were they really not concerned about work drying up in the future and massive lay-offs? Amongst your connections with major shareholders of production companies, did you really get the impression they wouldn't use their influence - political and otherwise - to keep major buyers able to buy? You mention Weibo - how do you see the difference in Weibo vs Twitter as a tool which has caused political change in the past? Really excited to hear more about your experiences!
        1stop 11y ago
        Apple not being able to sell in china is pretty much unrelated to FoxConn assembling parts for them in China. Proof: The iPhone was released in china in like 2012 or something, There were no riots, and FoxConn was still handling the assembly... Sooo... Pretty sure your point is moot now.
      - guard-of-terra 11y ago
        I imagine most of occupy movement protesters were iphone demographics? Same for russian winter protests, same for ukrainian revolution.
rpgmaker 11y ago
> I don't think chinese firms can't get a foothold abroad (see Huawei), it's just that they have less desire to. They not only have a desire but they also can get a foothold (look at how well many of their cheap phone brands are doing in developing countries). However, they do have a limited ability to do so when it comes to developed countries. Which isn't that bad since most of the big brands are manufactured inside their borders anyways. The calculus looks better for them than for, say, the UK.

by mikeg8 11y ago

sharetea 11y ago

he said 'nobody else is going to come in and take those customers except Chinese companies'

jonknee 11y ago
And he's not far off... Yum is even spinning off its Chinese operations into a separate company that will reside entirely in China. http://www.wsj.com/articles/yum-brands-to-spin-off-china-business-1445338830 http://www.wsj.com/articles/yum-brands-to-spin-off-china-bus... Apple is the biggest success story, but that could change literally overnight. It's a big risk to have large foreign operations in China.
- peteretep 11y ago
  The Chinese government couldn't cut off Apple at this point. The middle class are too bought in as users/owners, the rich make too much money from being suppliers, too many poor people have jobs depending on being Apple suppliers. They would have massive civil unrest.
  - sulam 11y ago
    Massive civil unrest because Apple is kicked out of China? Ummm, there wouldn't be massive civil unrest in Palo Alto if Apple was kicked out town. People buying Apple products just don't do massive civil unrest. They'd bitch on Twitter (or Weibo/etc), but riots in the streets because you can't buy an iPhone? I'm as big an Apple fan as the next guy, but that just isn't credible.
    - peteretep 11y ago
      Do you have any more you can tell me about your time in China? While you were there, what were the defining aspects of the Apple users you met? Were they representative of your other middle-class friends there? When you spoke to FoxConn employees, were they really not concerned about work drying up in the future and massive lay-offs? Amongst your connections with major shareholders of production companies, did you really get the impression they wouldn't use their influence - political and otherwise - to keep major buyers able to buy? You mention Weibo - how do you see the difference in Weibo vs Twitter as a tool which has caused political change in the past? Really excited to hear more about your experiences!
      - 1stop 11y ago
        Apple not being able to sell in china is pretty much unrelated to FoxConn assembling parts for them in China. Proof: The iPhone was released in china in like 2012 or something, There were no riots, and FoxConn was still handling the assembly... Sooo... Pretty sure your point is moot now.
    - guard-of-terra 11y ago
      I imagine most of occupy movement protesters were iphone demographics? Same for russian winter protests, same for ukrainian revolution.

rpgmaker 11y ago

> I don't think chinese firms can't get a foothold abroad (see Huawei), it's just that they have less desire to. They not only have a desire but they also can get a foothold (look at how well many of their cheap phone brands are doing in developing countries). However, they do have a limited ability to do so when it comes to developed countries. Which isn't that bad since most of the big brands are manufactured inside their borders anyways. The calculus looks better for them than for, say, the UK.