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Interesting report on China and Huawei

Community Veteran
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Registered: 15-06-2007

Interesting report on China and Huawei

As an engineer with experience in China (OK about 10 years ago) I found this interesting as I had already seen the technological advances in the most modern of their  industrial companies and this is the effect subsequently
http://www.theregister.co.uk/2014/05/22/china_is_now_the_worlds_no1/
Quote
China to become world's No 1 economy. And we still can't see why
4 REPLIES
nanotm
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Re: Interesting report on China and Huawei

to be honest its only surprising that its taken them this long to get there, china has been the main manufacturing point for the last decade so regardless of where the innovations were being made they were always going to become the top dog in terms of GDP, Chinese investment groups have been buying shares all over the west in every utility business and raking in profits from day to day running costs as well as gaining business from giant companies like anthill and apple who shifted all there production lines to china's Shingzen province to cut costs and boost profits (yet there consumer prices went up) that stupidity of chasing the "cheap labour" and laxer business eco requirements (no Kyoto treaty for china) has changed them from a large nation of bankrupts to the cash house of the world sucking in money from across the globe to finance all the new businesses without any of the corporate risks of home grown business,
that there domestic companies have shifted from cheap clone production (without much fear of litigation over licence infringement) to developing there own tech and selling it overseas to what have become almost purely consumer markets (like the US and the EU) was only a matter of time  really,
China would probably have become the biggest economy 5 years ago if they didn't have a fixed exchange rate keeping them artificially lower than they should have been ....
just because your paranoid doesn't mean they aren't out to get you
WTF
Grafter
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Registered: 14-09-2012

Re: Interesting report on China and Huawei

I saw that story this morning.
The most worrying thing about it was that they're doing things that we thought we were good at better than us.  Wonder where this leaves our economy when our manufacturing base was tossed away 30 years ago and our services are well on the way to migrating wholesale to places like India.  Can you have a first world economy based on hair dressing and plumbing?
Superuser
Superuser
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Registered: 22-08-2007

Re: Interesting report on China and Huawei

The answer is obvious...
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Huawei, for example, says it spends more on R&D than any other telco hardware company.

I recall my days working for ICL the big UK computer manufacturer.  It invested heavily in R&D and produced some of the most innovative computer technology in the world, some of which is still in use under license today.  Then one day some "bright" manager decided that the company should become services focused rather than production / invention focussed.  Needless to say ICL does not exist any more.  What was left if its services business got absorbed into a Japanese company.
Talking of management style, this from the same article rather says it all...
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Or the Tech City initiative, handing subsidies to upper middle class graduates to fart around for a year? Importing the worst of Silicon Valley’s cut-and-run VC culture hardly helps build long-term businesses. It places greater incentives on short-termism.

...rather sounds like the BTOR fast-track programme...
Community Veteran
Posts: 1,850
Registered: 11-08-2007

Re: Interesting report on China and Huawei

the report is an eerily similar echo of the sort of rubbish talked about the japanese as they ascended the ladder of success.  they (the japanese) probably did copy quite a lot of stuff initially, but the west failed to notice when they started sinking money into r&d and started producing what we in the west couldn't get enough of.
perhaps the first inkling the west got of this was mr morito's impatience and dissatisfaction with airline "headphones" linked to the aircraft's sound system.  it didn't play what mr morito wanted to listen to and the hearing sets were cheap, nasty and often dirty.  he asked his engineers could the come up with a simple small player and the walkman was born.
now the japanese is a technological power house, as is south korea and now china.
perhaps we in the west are a bit smug about our achievements and feel that we'd rather rest on our laurels for a while.