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Junior Varsity
Uli Behringer of The Music Group Q&A
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<blockquote data-quote="John Roberts" data-source="post: 56814" data-attributes="member: 126"><p>Re: Uli Behringer of The Music Group Q&A</p><p></p><p>Ah we hardly knew you.... <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite1" alt=":)" title="Smile :)" loading="lazy" data-shortname=":)" /></p><p>===</p><p>Re: starting your own factory in China even earlier... That takes a certain critical mass of international sales volume, capital, and China's tolerance of foreign ownership is still an evolving situation with convoluted ownership strategies unprotected by traditional rule of law so subject to possible change (No, I'm not asking about your personal approach). </p><p></p><p>Apple computer surely has the resources and sales to fund their own factories there, but took the more conservative strategy of partnering with a Chinese CM (Foxconn/ Hon Hai). Apple seems to enjoy a good product quality reputation, despite not owning their factories. Ever since Nike's PR debacle surrounding substandard working conditions, western companies have been more directly involved with overseeing distant vendor behavior. So Apple is very hands-on with Hon Hai for different reasons. </p><p></p><p>I hope China continues on its wobbly path toward western style property rights, a good thing for the Chinese people, and a foundation for economic growth and stability. The long game for ownership in China is for local market access which will have more value after China becomes a mature consuming economy. They are working to become that, but it will take time and there will probably be multiple bumps in the road along the way. </p><p></p><p>JR</p></blockquote><p></p>
[QUOTE="John Roberts, post: 56814, member: 126"] Re: Uli Behringer of The Music Group Q&A Ah we hardly knew you.... :-) === Re: starting your own factory in China even earlier... That takes a certain critical mass of international sales volume, capital, and China's tolerance of foreign ownership is still an evolving situation with convoluted ownership strategies unprotected by traditional rule of law so subject to possible change (No, I'm not asking about your personal approach). Apple computer surely has the resources and sales to fund their own factories there, but took the more conservative strategy of partnering with a Chinese CM (Foxconn/ Hon Hai). Apple seems to enjoy a good product quality reputation, despite not owning their factories. Ever since Nike's PR debacle surrounding substandard working conditions, western companies have been more directly involved with overseeing distant vendor behavior. So Apple is very hands-on with Hon Hai for different reasons. I hope China continues on its wobbly path toward western style property rights, a good thing for the Chinese people, and a foundation for economic growth and stability. The long game for ownership in China is for local market access which will have more value after China becomes a mature consuming economy. They are working to become that, but it will take time and there will probably be multiple bumps in the road along the way. JR [/QUOTE]
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Uli Behringer of The Music Group Q&A
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