China will have to be known for high quality products

The Way I See It - Mark Kolier

Chinese quality Last summer I wrote about the idea that few Chinese companies have embraced a dedication to making best-in-class products.   In my many visits to factories in China over the past five years I was almost universally asked about quality control and how it might be implemented. I quickly realized that in most cases the Chinese factory was not really interested in better quality since it would result in higher cost that those companies were unprepared to invest.

Almost all the Chinese companies I have visited are no closer to successful exportation of their products to the U.S. The main reason is that being the lowest cost provider does not work any more in a country where annual percentage wage increases are consistently in the double digits.

Shaun Rein of China Market Research wrote about this in his book ‘The End of Cheap China’ two years ago.   Not only has…

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