Chinese wave, part two


First it took the American jobs, not it is threatening to take over the world markets with its own brands, according to this article in The Boston Globe.

bq. “The future goal of TCL is to become one of the top five mobile enterprises in the world,” said Wan Jianming, president of TCL Mobile Communication Co., which last year challenged major global technology firms such as Nokia and Motorola to grab 12 percent of China’s cellphone market, estimated at 160 million units.

Three chinese firms, TCL, Ningbo Bird Co. Ltd., and Haier Group have quickly garnered nearly 55 percent of the total Chinese domestic market. Believe me, this is not good news for Nokia and Motorola. What makes them so special for a Chinese citizen to buy their brand. Chinese government, understands the power of the Moore’s Claw. It is using standards, and cheap components to build products which till a decade ago it could not dream of making.

bq. Critics say this government involvement, and the liberties Chinese firms take with intellectual property, have been the real drivers behind the success of China’s would-be global enterprises.

bq. Nokia’s Giles also said the manpower-heavy sales and marketing TCL and others have employed in China, and their limited R&D, inhibits their ability to replicate their domestic success outside China. Indeed, attempts by Chinese companies to bring Konka televisions and Xiali cars to the United States have failed terribly, mostly because their products did not meet the quality standards US consumers expect.

Clearly, Nokia is in the grip of Moore’s Claw and is crumbling. The predictable statements like the ones made by Giles and the paper remind me of the days when everyone complained about the poor quality of Japanese cars, or Korean televisions. It is the same here as well. The real problem, with China has been the copyright issues, and if Chinese decide to pursue arrangements like Huawei-3Com deal, its going to be tough going for rest of the world.

Link tip, Niraj

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