Rich at All Roads Lead to China has a nice piece on who is responsible for American decline. Find it here Naturally, it is a very complicated topic to say why a certain economy is doing well or poorly. I want to give some perspective here.
When I was in high school, many people were saying they need to study Japanese as they were the future. I hear voices about China being the same now. I think the result in language need for Chinese might be the same result as Japan. Others were saying that Japan was hurting us by how they sold things cheaply to us. This puzzled and still puzzles me. I always felt it unfair if people sold to me for too much money, and I thanked people who sold me products at bargain prices. I still feel thankfulness for all the nice things from Japan at good prices including that Toyota Corolla that I learned to drive on.
Businesses in China, many of whom are Western businesses, have and do sell many things to the West. They sold these because they had better quality for each dollar spent. This is comparative advantage. It helps us all. If they can make it better, they should. American car makers claimed in 1981 that Japan was unfair and ran to the government to get protection. I wish Reagan would not have agreed with them. They became fat, lazy and uncompetitive because they got the government to protect them. Toyota now makes cars in America that are better than the often lazy US car makers.
The issue with the Chinese is the same now. Twenty years from now, China will not be as cheap as it is now. We will complain because they have such good quality. Fortunately, U.S. companies will be producing much more than they are in Japan. Western businesses need to be globally aware and investing correctly. That is our need. Our need is not to work to manipulate our governments to protect us from China. We should not run to our home governments to solve a business problem with makers in China. We should take responsibility for our failure to lead our company well considering the global world we live in.
Finally, Western workers need to consider how they can give value in a global world. Sitting around and complaining because Chinese workers want to feed their family is not reasonable. They do not have it easy raising their family on the $200 a month they may be taking home from their factory work. It is shockingly selfish to want to take the $200 away from 8 or more of them so you can get what you want to do the very same work. Those 8 families have mortgages too. I should work to bring more value and not run to the government to get rights to unequal pay for equal work.\
However, this blog is about China Business Leadership, and I guess many of us have the same thinking. Because most of the comments I get are spam, you have to register to comment. Please do.