China Industry Depression: Manufacturing--Corporate Governance (Development Direction)

2016-8-25

2016-08-24

Nikola Tesla, 1856-1943, is one of the greatest inventors in the world, a physicist, a mechanical engineer and one electrical engineer. He is better than Edison in many aspects (AC/DC)，you can search on net. 

After he was forced to apologize by his teacher for his extremely intelligent, his mother told him until her death: ‘If you made mistake in the first button when you dressed, all buttons followed will be in wrong order.’ I think this sentence is the most faithful foundation of all his success.

 

Because the manufacturing drive down the overall cost, the whole industry have to migrate their workshops to foreign countries (southeast Asia and other regions), this important change will attribute to changes in other related industries of the global industry chain. The present China's economy was forced to face the overall transformation.

Because the traditional method which is guided by commercial real estate has created so much profit at the cost of future sustainable development. Many traditional industries dare not to invest their money into the new industries and they are confused by all kinds of investment spots. PIONEER is specialized in investment consultancy. No matter from the company development or customer development demand level, we have to make new realization about the relationship between new business and old business. We should keep a clear and objective cognition, only when we ‘act as example’ can we have the basic requirements: correct judgment and efficient execution!

 

Today whether you stride forward on the process of industry transformation or trapped in traditional business growth and crisis or high-tech enterprise want to innovate a new road, but the unpredictable crisis bring enormous pressure to young generation and make these people who are in the initial period of starting a business. It is inevitable to face a problem: where are we going to?

Because the business situations are different and business is different, we can’t give certain advice to these enterprises. But we give the suggestion to the same problem: But for our common confusion, the brief recommendation is just 10 Chinese characters: Insight into industry depressions, mix short & long plan.

Let’s make brief explanation for the 10 characters: 

What the China government lead is internet, this kind of virtual economic industry. It should be said that the Internet and digital industry is also a product of the era. But some industry shouldn’t across the law of development, especially the manufacturing. After our joint venture car have been produced for a few years, still unable to compete with import cars (The distance between us is not a little). Though our satellites have been launched for so many years, today we can only produce motocycles whose maximum emission is 650 cc and quality is not reliable (Forgive me mentioning motorcycle again). Now we use internet every day, we think the new trade mode is to do purchasing agency in a WeChat group. But what we shouldn’t across and we can’t across is ignored by people. Because people who concentrate on design development manufacturing can’t withstand the temptation of rising house prices and unable to resist purchasing overseas, so this industry seems without prospection and become more depressive. A strong country and mature market all rely on the new industrial civilization – manufacturing. If the Internet water army can scold back American not to intervene in the southern China sea, I’ll change my work to internet. 

Without the support of entity economic, especially the manufacturing, we can only talk about internet on our verbally (at least we have hardware like mobile phone and computer terminals). If our manufacturing is not strong enough, we can only buy the junk products which have been processed with beautiful picture and vivid words. On the contrary, if the manufacturing is not strong enough we can no longer rely on the Internet as  salesmen. After the internet hot has taken off, it will undertake its mission: Information transmission rather than a PHD supervisor.

Briefly speaking, the revival of the manufacturing is very slow, it’s a long way, it is the combination of school education, social values, national policy, and many other factors. So the process will go across at least 10 -15 years. At present, the fashion product which is attached with many imports’ image, so it’ll take a large proportion of the domestic market (In fact the quality of domestic products is far from imports) and it will not lead the domestic market in quiet a long time until Chinese make the better products than the imports. We should love our country in the positive way instead of damaging imports. Who concentration more and keep the longest time, he will be the winner in the weak link of industry (Although we can see it, a small part of people can try their best to do it).

Mixing the short & long term plan is to warn us that we should learn the survival skills.Learn to destroy the power of enemy (Tactics). We should have the whole strategy layout (Tactics) to avoid being destroyed on the process of insisting our ideal, and we should to do the best step by step, eventually get a good harvest.

We have talked so much, we’re at our own road. Although there is no street light and companions and we can’t see what is waiting for us in the future, we desperate ourselves. As beginning of the story and use my name in COK game, give us the crazy behavior a reason: Faith & Survive.

Louis WU/Aug. 24^th. 2016