Chinese Manufacturing: Renovation or Rebuilding?

Chinese Manufacturing: Renovation or Rebuilding?

Valerie Zhu (Xi’an University of Science & Technology, China) and Linyan Sun (Xi’an Jiaotong University, China)
DOI: 10.4018/978-1-4666-0882-5.ch511
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Abstract

In the past three decades, Chinese economy has been arresting the worldwide attention for its double-digit growth rate. Playing a leading part in general economic development, Chinese manufacturing has been contributing a substantial portion in the total GDP growth. However, a national key project, the Research of China National Manufacturing Strategy, has found in the last several years that Chinese manufacturing has already lost its competitiveness due to the void of cheap labor force (New Labor Law in China), the rising costs of raw materials and energies, and the more rigid requirements for environmental protection. Chinese manufacturing has met its Waterloo and calls for an urgent business transformation if it wants to survive and sustain its development. Based on fundamental research, authors of this paper propose a new business conceptual model, SERVICE-MANUFACTURING, which focuses on the seamless marriage of service and manufacturing and how this new model can be implemented in real business practices.
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1. Is It Only A Village Phone?

Can you image that a mobile phone also works as a digital camera with long lens and PSP functions? Can you imagine that the auto-shaped and watch-shaped genies (Figure 1) are also mobiles with Bluetooth, PDA and other functions just like Iphone, Ipod and blackberry? Yes, they are mobiles and only at the expenses of no more than one hundred dollars? When you are wandering in the street in China, you might encounter young boys and girls with such cool-shaped things in their hands in a very arrogant manner, please never be surprised. These are all mobiles, cool but cheap cell phones! Though they have varieties of shapes, functions and other characteristic features, in China there is a very funky buzzword as their name—village phone, pirate phone or MTK phones1.

Figure 1.

Auto-shaped, watch-shaped, and digital camera genies that are also mobile phones with Bluetooth, PDA, and other functions

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