Chinese Economics Thread

KIENCHIN

Junior Member
Registered Member
It still costs China money to make the ball barrings domestically. That is more than just the variable costs like materials, energy and labour etc, but also fixed costs like investments in machinery and R&D.

If you subtract all of that, and your annual savings is probably a tiny fraction of that $15m total.

All of this is just another piece of western feel-good-by-putting-someone-else-down gutter trash reporting. And they couldn't even get that right, because they didn't even take notice until after China had closed that tiny, insignificant gap. In fact, the joke is on them, because I seriously doubt there are any British or American firms making these kinds of ball barrings today.

Does that mean they are now more backwards than China? Of course not! China didn't used to make these for the same reason the west doesn't make a lot of other things now - it's just not worth their while to bother.

The only reason China bothered was because the PM made it a political point of pride.

Not only are the profits tiny, but firms don't have infinite R&D budgets, in order for them to develop this ball point barring, the company would have had to cancel or postpone other projects that would have been more valuable.

As such, I actually see this is a negative, where top political leaders are causing disruptions on a whim.

The sentiment of self reliance is sound, as we will probably find out soon enough with Trump picking trouble. But this example shows how such whims can be wasteful also.

The PM didn't really care about ball point pens, and it makes zero different in reality irrespetive of whether China makes them. He just used that as an extreme example to make a point, if you will excuse the pun. But a Chinese firm spent 5 years and $8.6m because of it.

It's not hard to imagine any number of similar scenarios, where a throw away remark or minor point made by a top official gets taken way too seriously, and not insignificant resources are diverted to projects those officials don't care about and would probably forget before they even finished the conversation.

It's by no means an uniquely Chinese problem, but I would rate that as inifitiely more of a problem than ball point pen tips.
It's not so much about having to import the specialised steel it is the precision manufacturing on such a such mundane component which until now I would not have known and the material science involved. This first step of making the steel followed by the CNC machines that make the tips will have a follow on effect in the manufacturing of bearings, which is the final goal
 

Hendrik_2000

Lieutenant General
The western press pickup on the news and as usual they make fun of it
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Last week, China
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that it had mastered the art of making ballpoint pens. Don't laugh: It was a years-long effort that cost millions of dollars and required the leadership of a state-run corporate colossus. It was front-page news, widely discussed on talk shows and celebrated on social media.

And it was no one-off stunt. China hopes such government-mandated "innovation" will finally revive its economy and catapult it into the front rank of technologically advanced nations. Unfortunately, such efforts are far more likely to worsen the inefficiencies already holding its economy back.

Ballpoint pens aren't actually new to China. Its
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make around
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of them a year and fulfill 80 percent of the world's demand. There's just one problem: China doesn't possess the advanced alloys and machines necessary to make a high-quality pen ball and socket. As a result, 90 percent of China's pen tips are imported. Pens made from Chinese components are widely acknowledged to be inferior -- a point made by Premier Li Keqiang in a 2015 television appearance. "That's the real situation facing us," he
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. "We cannot make ballpoint pens with a smooth writing function."
 

B.I.B.

Captain
My sister lives next to a guy who's in the solar energy business. He says China makes the best solar panels because they're just as good as American or European but they break down less. He says a lot of US solar companies just buy Chinese solar panels via Canada to skirt the tariff Obama placed on Chinese solar panels.


Mace, For that claim to have any validity your sister's friend would have to test evey panel made everywhere and I don't think that's possible.

(Sorry about that, I had a shit of a day and just felt like being contrary:))

Actually Some Chinese Manufacturers make a world class panel, but there are companies that buy up rejected panels and use them to make a cheaper product which gives the Chinese brand a bad name.

On the farm we generate our electricity from biogas and solar power.
One of the retailer/installers we asked for a quote from promoted products made by the German firm, Solarworld which have the reputation as probably being the best in the world.He rubbished the Chinese product, claiming that their performance deteriorated over time

To cut a long story short we did our own research and decided upon a
"Yingli" product over another Chinese firm Risen.With a quality Inverter we have no complaints and more than ready to recommend the Yingli Brand and contrary to what we were told by retailers of German brands, in the years we have the system installed the panels have over produced its rating.

The trick is to use a reputable installer as there are many cowboys around who use cheap inverters which impact on performance.
 
Last edited:

Blitzo

Lieutenant General
Staff member
Super Moderator
Registered Member
The western press pickup on the news and as usual they make fun of it
Please, Log in or Register to view URLs content!


Last week, China
Please, Log in or Register to view URLs content!
that it had mastered the art of making ballpoint pens. Don't laugh: It was a years-long effort that cost millions of dollars and required the leadership of a state-run corporate colossus. It was front-page news, widely discussed on talk shows and celebrated on social media.

And it was no one-off stunt. China hopes such government-mandated "innovation" will finally revive its economy and catapult it into the front rank of technologically advanced nations. Unfortunately, such efforts are far more likely to worsen the inefficiencies already holding its economy back.

Ballpoint pens aren't actually new to China. Its
Please, Log in or Register to view URLs content!
make around
Please, Log in or Register to view URLs content!
of them a year and fulfill 80 percent of the world's demand. There's just one problem: China doesn't possess the advanced alloys and machines necessary to make a high-quality pen ball and socket. As a result, 90 percent of China's pen tips are imported. Pens made from Chinese components are widely acknowledged to be inferior -- a point made by Premier Li Keqiang in a 2015 television appearance. "That's the real situation facing us," he
Please, Log in or Register to view URLs content!
. "We cannot make ballpoint pens with a smooth writing function."


I dislike how the word innovation is being thrown around in mass media.

In this case I'm not sure if it's Chinese media or English language media that first used it in this context, but the demonstration of manufacturing ballpoints should better be called moving up the value chain, as a result of R&D.

Often times, the products of R&D are simply called innovation, which I think devalues the very technical and accumulative process of actual research and development (not to mention market and investment dependent process) into something that's waved away as "innovation" like a magical process that churns out new products.
 

AssassinsMace

Lieutenant General
It's just like pointing out that the countries that make up the West today for thousands of years basically stayed stagnant chucking spears and shooting arrows at one another. They didn't open their minds to advancements in weapons technology until it was invented by others. Was it because they were too dumb to think of it themselves? It's the logic you see here. No, it was because things like scientific and chemical mechanics where seen as witchcraft and blasphemy.


Mace, For that claim to have any validity your sister's friend would have to test evey panel made everywhere and I don't think that's possible.

(Sorry about that, I had a shit of a day and just felt like being contrary:))

Actually Some Chinese Manufacturers make a world class panel, but there are companies that buy up rejected panels and use them to make a cheaper product which gives the Chinese brand a bad name.

On the farm we generate our electricity from biogas and solar power.
One of the retailer/installers we asked for a quote from promoted products made by the German firm, Solarworld which have the reputation as probably being the best in the world.He rubbished the Chinese product, claiming that their performance deteriorated over time

To cut a long story short we did our own research and decided upon a
"Yingli" product over another Chinese firm Risen.With a quality Inverter we have no complaints and more than ready to recommend the Yingli Brand and contrary to what we were told, in the years we have the system installed the panels have over produced its rating.

The trick is to use a reputable installer as there are many cowboys around who use cheap inverters which impact on performance

It's simple because he knows how many solar panels bought by consumers have to get replaced from being defective and according to him more of them are American and European. This guy is no salesman or installer. I don't know who he works for is private or government but he goes around the whole industry in his profession.
 
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broadsword

Brigadier
Mace, For that claim to have any validity your sister's friend would have to test evey panel made everywhere and I don't think that's possible.

(Sorry about that, I had a shit of a day and just felt like being contrary:))

Actually Some Chinese Manufacturers make a world class panel, but there are companies that buy up rejected panels and use them to make a cheaper product which gives the Chinese brand a bad name.

On the farm we generate our electricity from biogas and solar power.
One of the retailer/installers we asked for a quote from promoted products made by the German firm, Solarworld which have the reputation as probably being the best in the world.He rubbished the Chinese product, claiming that their performance deteriorated over time

To cut a long story short we did our own research and decided upon a
"Yingli" product over another Chinese firm Risen.With a quality Inverter we have no complaints and more than ready to recommend the Yingli Brand and contrary to what we were told by retailers of German brands, in the years we have the system installed the panels have over produced its rating.

The trick is to use a reputable installer as there are many cowboys around who use cheap inverters which impact on performance.

What Mace quoted is only an anecdotal case. There was a professional study on the reliability of the various makes of solar panels which found that the Chinese quality was indeed better. I posted that article before.

BTW, I am piqued that you lived on a farm that is powered by biogas. Do you grow kumaras?
 

taxiya

Brigadier
Registered Member
Theres always Sony Music Hollywood and game consoles to keep the Sony name alive.You may have noticed frequent punctuation/spelling errors in my posts. Its not my fault but my crappy Sony laptop;)


We recently bought a Westinghouse front loader washing machine made in China.
Don't know if the product is as good as the original American Westinghouse product. However we only paid $460 for it.Not bad when compaired with the other brands that had a starting price of $1200. and up to $2000These included various models such as Haier, Bosch Samsung and a variety of other European Brands.
I am only talking through an "European" lens, so ignorant of me. :p Sony and Philips were big 10 years ago. Sony laptop was one of the top brand 10 years ago, but I don't find any more. Instead, Lenovo is everywhere. Sony is not the old Sony anymore. Yesterday, I found TCL TV demo station in a home electronic chain shop, next to Samsung, a first time of Chinese brand getting into this part of Europe.

It is my first time knowing Westinghouse makes home appliances. :oops: Here, "no bragging intended", wash machines are Bosch, Siemens, Elextrolux, some times maybe Samsung or Haier.
 

Blackstone

Brigadier
I am only talking through an "European" lens, so ignorant of me. :p Sony and Philips were big 10 years ago. Sony laptop was one of the top brand 10 years ago, but I don't find any more. Instead, Lenovo is everywhere. Sony is not the old Sony anymore. Yesterday, I found TCL TV demo station in a home electronic chain shop, next to Samsung, a first time of Chinese brand getting into this part of Europe.

It is my first time knowing Westinghouse makes home appliances. :oops: Here, "no bragging intended", wash machines are Bosch, Siemens, Elextrolux, some times maybe Samsung or Haier.
China's consumer electronics and appliances industries are out-competing others, not because they figured out how to build better 'mouse traps,' but because they could make cheaper ones at roughly comparable quality and features. Nothing wrong with that, because China's taking advantage of its comparative advantage, but to climb higher on the value chain, it'll have to innovate and invent. Can the PRC do it? We'll see.
 
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