September 2011 Archives
In this cycle, China’s manufacturers are earning a sound reputation for being “extremely efficient at creating new versions, often simpler, cheaper and more efficient, of technologies and products shortly after they are invented and marketed elsewhere in the world,” according to Dan Breznitz, co-author of a newly released book titled, ‘Run of the Red Queen’. The authors further argue China should focus on what it does best: making incremental innovations in everything from manufacturing to logistics. In other words, the millions of US dollars Chinese enterprises under guidance from the central government spend on R&D, in an effort to come up with breakthrough technologies that will put them on par with the West, is money better spent elsewhere. A healthy portion of investment should be allocated to the sectors shown above where Chinese manufacturers have taken on significant shares over the past three years. In doing so, consumers both at home and abroad stand to benefit, along with merchants and sourcing managers who are able to identify the most competitive products Chinese manufacturers are producing.