Indian phone makers leave China to build at home

[HK Indian MBT]

Trust me when i say it. Chinese economy is going down. Even if u dont want to accept it. Can you explain why is ur GDP is 7.5 from 2 digits ? SIMPLE man.Get ur facts right broo.
@ChineseTiger1986 its for u

Its not about banging ur chest just to save ur facce but its all about proof and Ur own doccuments... Tomo i will provide u with more links buddy trust me.

 

[Genesis]

omg!!! Am drunk to answer reasonable questions but not for bulshit claims buddy. U need to know more. U need to study world's report tha beliving ur independent State run news paper Hahaha woow had a nice laugh. Can your state owned company agree to high wages ? as ur workers demand ? NAAAA if u think yes u dont know much abt ur own country buddy

What do you mean if they would agree? IT has already happened. Besides most of the manufacturing companies are private.

Why do I need to read the news to get this info. I AM in China. People around me are getting high wages. It's not like I need to be told officially to know that.

But of course, you know more about China than I do. How silly of me.

As to why our growth rate is 7.5, why is Indian growth even lower? At least we got to the second biggest GDP before our growth starts to go down.

BTW, if US's even lower growth is not a problem, it's not going to be a problem for us.

You are like the guy that laughs at my food got burned, while your whole house is burning.

 

[HK Indian MBT]

What do you mean if they would agree? IT has already happened. Besides most of the manufacturing companies are private.

Why do I need to read the news to get this info. I AM in China. People around me are getting high wages. It's not like I need to be told officially to know that.

But of course, you know more about China than I do. How silly of me.

As to why our growth rate is 7.5, why is Indian growth even lower? At least we got to the second biggest GDP before our growth starts to go down.

BTW, if US's even lower growth is not a problem, it's not going to be a problem for us.

You are like the guy that laughs at my food got burned, while your whole house is burning.

Oh my dear friend @Genesis its not against U or China these are just facts. And dont bullshit me as am an Mariner i been to china than am been to Malay . It means I have Chinese mariners work with me as Kin .Any way you need some real education. Let me provide U. As English is not my language plz dnt care abt my spell errors

China has just reported that its GDP growth rate, which measures how quickly the economy is growing, was just 7.5 percent for the second quarter of 2013. That’s high by American standards, but low by Chinese standards.

In fact, Ya ? China’s GDP growth rate has slowed in 11 out of the last 13 quarters. The Chinese slowdown long anticipated by economists appears to have arrived.

If the story seems confusing, that’s because there are, broadly speaking, two very different ways to read what’s happening. There’s the optimistic case and the pessimistic case. Which one you believe depends on how much faith you have in the Chinese government and how good you think China is going to be at shifting its economy to be more like the United States’s.
Here’s what everyone agrees on: Something had to change
China’s economic growth has come largely from exports and urbanization,(Which am posting it for many days now OK! Something that foreign economists and Chinese leaders have long warned is ultimately unsustainable. In the long term, China needs to shift its economy away from making stuff for foreigners and toward making stuff for regular Chinese people. EXPORT in CHina Sucks in future ! As i mentioned it before buddy.

In the short term, China needs to cool down its banking system, which right now looks an awful lot like the U.S. banking system just before the crash: over-invested in a real estate bubble, over-leveraged, lending and borrowing more than is safe or responsible. About three weeks ago, the Chinese banking system started to freeze up – just as they did in the United States right before Lehman collapsed.

The case for optimism: Beijing is in control
The collapse in the U.S. banking system and real estate market was uncontrolled: We didn’t prepare for them and were taken by surprise. But Chinese leaders are popping their country’s banking bubble deliberately, trying to do gently what would otherwise happen not-so-gently. They’re also deliberately trying to slow down the country’s overheated growth; this quarter’s GDP slowdown is actually well within official projections. It’s not a stall, it’s a careful slowdown made to avoid a stall.
What we’re seeing now might actually be the process of China forcing through some changes that will be painful in the short term so that it can both avert an unwanted crisis and make necessary long-term changes. China, economists agree, needs to stop growing its economy by exporting cheap products abroad while it builds vast housing developments and unnecessary infrastructure projects at home; stories of remote towns with two airports are way too common. The country has to make a very difficult, very important shift to an American-style economy, in which it focuses on selling stuff to Chinese consumers. For all sorts of reasons, this is easier if China’s economy slows down a bit.
The case for pessimism: Beijing can’t accomplish what it needs to do or waited too long for
China is not out of the woods: while it is trying to avert a credit crisis, which could be potentially disastrous, banks are still so heavily leveraged that it remains a risk. The timing of this is crucial, and it’s possible that China put it off for too long.
Chinese leaders could lose their nerve. The country’s social and political stability has, for the last 20 years, been premised on sustained economic growth. As that growth slows, regular Chinese people will feel the pain – particularly when it comes to housing, which is already barely affordable in first-tier cities – and they’re likely to be vocal about it. And there’s another group that may suffer: the massive industrial and construction firms that have made a fortune during the boom years. China’s shift to a consumer-driven economy is probably bad news for those firms, which are politically influential and well-connected in Beijing. A 2011 Eurasia Group report, still relevant, warned that it won’t be easy for Beijing to stand up to these groups.
So should I freak out?
Not yet. But you should definitely keep watching. If China endures a too-rapid slowdown or a bubble-burst, it would be very bad for the entire world, which relies heavily on the Chinese economy. But if it successfully transitions to the slower-but-healthier economy it’s seeking, it would aid the rise of a Chinese middle class that could change the country from within. Either way, it’s a big deal.

If you still Naive of Chinese economy slow down ... Hmmmmm U will agree with me when ur economy get brust with bubble ssoner or Later buddy !

BUT I will rebut ur argument tomo Am really drunk now. Its bad to make a guy think when he is drunk bro

 

[BigDaddyWatch]

Indian members miss the most important part of this article which is that India lacks both the fysical and human infrastructure to produce on mass. My prediction is that these companies will leave India again after a few years. And will relocate their production either back to China or to another country like Vietnam or Cambodia. It seems unlikely that India will be able to buildup such infrastructure anytime soon.

However, Karbonn Mobile's director Sashin Devsare said manufacturing in India was not a viable alternative because of an absence of an ecosystem and parts.

"There has to be an ecosystem first for local manufacturing to be feasible," Devsare, whose company is India's second biggest smartphone manufacturer, told The Hindu.

Sandip Biswas, director at Deloitte Touche Tohmatsu, also warned it might be more expensive to manufacture in India. "The absence of an ecosystem might lead to a situation where, despite local manufacturing, the price of the final product will still be higher than an imported offering," he said.

And there is more pain coming for the Indian economy as the crisis for India from the falling rupee continue to worsen. The Indian central bank the RBI is going to tighten monetary policies. This means even slower growth. In the first qaurter of 2013 the Indian economy grew 4,8%. We don't know yet how much the Indian economy has grown in the last quarter.

India central bank takes steps to curb rupee decline

 

[qwerrty]

Oh my dear friend @Genesis its not against U or China these are just facts. And dont bullshit me as am an Mariner i been to china than am been to Malay . It means I have Chinese mariners work with me as Kin .Any way you need some real education. Let me provide U. As English is not my language plz dnt care abt my spell errors

China has just reported that its GDP growth rate, which measures how quickly the economy is growing, was just 7.5 percent for the second quarter of 2013. That’s high by American standards, but low by Chinese standards.

In fact, Ya ? China’s GDP growth rate has slowed in 11 out of the last 13 quarters. The Chinese slowdown long anticipated by economists appears to have arrived.

If the story seems confusing, that’s because there are, broadly speaking, two very different ways to read what’s happening. There’s the optimistic case and the pessimistic case. Which one you believe depends on how much faith you have in the Chinese government and how good you think China is going to be at shifting its economy to be more like the United States’s.
Here’s what everyone agrees on: Something had to change
China’s economic growth has come largely from exports and urbanization,(Which am posting it for many days now OK! Something that foreign economists and Chinese leaders have long warned is ultimately unsustainable. In the long term, China needs to shift its economy away from making stuff for foreigners and toward making stuff for regular Chinese people. EXPORT in CHina Sucks in future ! As i mentioned it before buddy.

In the short term, China needs to cool down its banking system, which right now looks an awful lot like the U.S. banking system just before the crash: over-invested in a real estate bubble, over-leveraged, lending and borrowing more than is safe or responsible. About three weeks ago, the Chinese banking system started to freeze up – just as they did in the United States right before Lehman collapsed.

The case for optimism: Beijing is in control
The collapse in the U.S. banking system and real estate market was uncontrolled: We didn’t prepare for them and were taken by surprise. But Chinese leaders are popping their country’s banking bubble deliberately, trying to do gently what would otherwise happen not-so-gently. They’re also deliberately trying to slow down the country’s overheated growth; this quarter’s GDP slowdown is actually well within official projections. It’s not a stall, it’s a careful slowdown made to avoid a stall.
What we’re seeing now might actually be the process of China forcing through some changes that will be painful in the short term so that it can both avert an unwanted crisis and make necessary long-term changes. China, economists agree, needs to stop growing its economy by exporting cheap products abroad while it builds vast housing developments and unnecessary infrastructure projects at home; stories of remote towns with two airports are way too common. The country has to make a very difficult, very important shift to an American-style economy, in which it focuses on selling stuff to Chinese consumers. For all sorts of reasons, this is easier if China’s economy slows down a bit.
The case for pessimism: Beijing can’t accomplish what it needs to do or waited too long for
China is not out of the woods: while it is trying to avert a credit crisis, which could be potentially disastrous, banks are still so heavily leveraged that it remains a risk. The timing of this is crucial, and it’s possible that China put it off for too long.
Chinese leaders could lose their nerve. The country’s social and political stability has, for the last 20 years, been premised on sustained economic growth. As that growth slows, regular Chinese people will feel the pain – particularly when it comes to housing, which is already barely affordable in first-tier cities – and they’re likely to be vocal about it. And there’s another group that may suffer: the massive industrial and construction firms that have made a fortune during the boom years. China’s shift to a consumer-driven economy is probably bad news for those firms, which are politically influential and well-connected in Beijing. A 2011 Eurasia Group report, still relevant, warned that it won’t be easy for Beijing to stand up to these groups.
So should I freak out?
Not yet. But you should definitely keep watching. If China endures a too-rapid slowdown or a bubble-burst, it would be very bad for the entire world, which relies heavily on the Chinese economy. But if it successfully transitions to the slower-but-healthier economy it’s seeking, it would aid the rise of a Chinese middle class that could change the country from within. Either way, it’s a big deal.

If you still Naive of Chinese economy slow down ... Hmmmmm U will agree with me when ur economy get brust with bubble ssoner or Later buddy !

BUT I will rebut ur argument tomo Am really drunk now. Its bad to make a guy think when he is drunk bro

this is actually good post, but you should buy yourself a mirror. china isn't going anywhere

 

[HK Indian MBT]

this is actually good post, but you should buy yourself a mirror. china isn't going anywhere

So is it like. CHINA IS GOING DOWN SO DO INDIA debate ? Justto clarify so we can debate on it dear

Indian members miss the most important part of this article which is that India lacks both the fysical and human infrastructure to produce on mass. My prediction is that these companies will leave India again after a few years. And will relocate their production either back to China or to another country like Vietnam or Cambodia. It seems unlikely that India will be able to buildup such infrastructure anytime soon.



And there is more pain coming for the Indian economy as the crisis for India from the falling rupee continue to worsen. The Indian central bank the RBI is going to tighten monetary policies. This means even slower growth. In the first qaurter of 2013 the Indian economy grew 4,8%. We don't know yet how much the Indian economy has grown in the last quarter.

India central bank takes steps to curb rupee decline

It was funny as HELL . China opened to 100% FDI 4decades ago. India still to cash in but still have pottential to over take China is this worry you lil chinese

 

[HK Indian MBT]

Ok My Chinese friend i debate with you tomo ,... Good Night for now u already commited SIN for waking up a drunk guy... DONT DO THIS SIN AGAIN... KARMA IS A ***** WILL GET BACK TO U WHEN U R DRUNK

 

[k7x]

Wet day dream for india. to beat china

even if they Maxx mobile is made in India, most of the components will still be manufactured in china..
The ecosystem is not only subsidy, we need component manufacturers from screw to lcd panel . go to chennai nokia and ask how many parts they still import from china or other countries...


finally Trade unions. Again come to chennai . .They prefer Indians to be beggers rather than a low cost lab)ours (they say rich exploit the poor workers.. instead of working for them you be beggers or daily wage labour in fields)....


Finally china contols 90 % of rare earth.. When tata wanted to start a mine for titatnium ( not rare earth they chased them away)... we dont have lithium ,mines, so no batteries and hence no electronic industry.

 

[isro2222]

Chinese economy not slowing down but Going down crashing.... I have heard many times that mexican fruit sellers (on american streets) earns more than chinese in china.... Many companys leaving china. Its gain time for india and mexico etc etc. China going down hard.... India and other countries will cash'in.... As i have predicted that india is alot stable economy than china's economy. China grew faster but going down faster too. Indian economy going down too but its slow and its alot stable. There was time china grew at 10 to 12percent GDP growth.... Look at them now. China in mess. Search how india and mexico gaining chinese loss. I hope china learned a lession. China should Forget about catching america. Think about how to beg the companys who leaving.... May be hold their legs and beg hard.

 

[Dandpatta]

Produce all you want in India - a finished product.
What about importing raw materials for MAKING the finished product (and paying for these in USD)?
What about the Rupee / USD wide open gully that's putting (importers) in India on an even longer lunge ?

Basic questions here - without bringing the oft chest beating Indians and CHinese about who will survive and who will not.

 

[+4vsgorillas-Apebane]

Its probably more expensive to manufacture in India, I can imagine the following happening:

Bureaucracy refuses to grant permit to operate and stalls paperwork until payments are made to every rubber stamp wielding clown.

Power supply is not constant and often supply 'dirty' power.

Slum squatters have set up residency on the planned factory grounds and refuse to leave without compensation.

Finished products costs exorbitant amounts of money to reach logistical centres and fail to make time requirements.

undisciplined workforce sneaks of to chat about Bollywood and cricket, arrives late and frequently strikes.

Secret 'White slave project' fails utterly to materialise in 2030 and the nations economic planners have to restart from scratch.

 

[xuxu1457]

Jobs market of China still up, in the half of 2013, China made 12million new jobs, in Q2, coms provided 6.7 million new jobs, and 6.2 million works finding jobs;
economic grown of China up limits----not bring high CPI line
low limits----not attack job market

Now, 7.6%, CPI 2.4%, Job market 1:1.07, still a very well condition

 

[cirr]

I gather the smallest of the top-10 Chinese smartphone makers is larger than the total of Indian smartphone industry。

And China has some 300 smartphone makers！

 

[thesolar65]

@liall Let me put my point in detail. China's economic boom is mainly due to Infra with in China , Export- Cheep labour force in turn cheep goods , Undervalued Chinese currency etc. These are three main pillar of chinese growth for the past 40+ years or so.

Now what is wrong with China's economy today and in future ? : Since chinese already invested many billions perhaps trillions into building NEW CHINA. Its already the best in the world. But whats is happening now is What will happen to the millions of labour force who worked for these infra projects if there is no more new projects. I say no more it means decrease in such projects. So china is adopting new way to get these labour force paid.Do you know what it is ? Destroy the newly built building and Bridges and built a new one Am not making it up but its true. So from now on Chinese are messing it up.Just to keep their Job Security afloat. Will it work? May be for a while but not in long term.

Major problem China is and Will face is its aging Chinese population. I dont kn ow about Canada but Sure u know abt USA's pension problems. Its a big Frankenstin monstr for any Nation. China will have the world's largest old population in the world. Thanks to chinese medicare

Now lets come to ur analysis on Production : You , Me or anyone will buy chinese products not because its of good quality but because its cheep. Just google it on protest taken place in China by Workers to increase their wages. Today china is developed
(-) Minus country . To be fair. Its still not a developing. Chinese economy boost increased the demand for HIGH LIFE STYLE. More and More people now want highly paid jobs but before they wr happy to work for cheep Pay. This will leads to increase in production price. Which will challenge Chinese products at global stag. If am understood properly You said the same i guess. But you are naive to the facts that Its the also the problem caused due to all arround Problems of CHINA. Hope you will change ur thoughts on Chinese Bubble Growth waiting to burst. China need to move outside its border and for infra projects to keep their economy afloat. Now China's GDP is 7.5% and it is ment to decrease in comming years.

Sure India will keep cashing IN,.So far India is been a Service Hub not the Manufacturing Hub. But now Indian Bussiness Community inside and Outside India wants the Govt of India to have good and Sensible response towards Manufaturing Sector. India will have nearly 600 Million under 27-35 which will be so till 2050 or 2070 . So India got huge working population , Money , Resources What else We need for a Next Super Hub for Industries ? Companies are very cleaver and Known about these fact they are starting invest more into Indian Economy. Its 1.2 Billion people ready to spend their Money . Its win win for both Consumer and Seller . Its great future for India . I really belive. India just need a Decent Well educated, Development oriented Leader To Make Use of this great Advantage India Has . Hope It will be Narendra Modi in 2014

Nicely explained. But the same thing also might happen to us say 10 years later if we are not careful. I think the problem will follow here in India like Chine today is that the imbalance between City life and village life. I am from eastern part of India and nearly every village is devoid of young person i.e. 25-45 years age. Now every one moves to city like in China and this problem will strike us after a boom in economy (does not need to explain as you can understand it what I am trying to say) .

 

[Bullet500]

China is not going down any time soon. Their policy makers are a lot smarter than ours. We shoulf worry about how to throw out this corrupt sickuler government out and make sure next government doesn't make the same mistakes.

As far as china goes smart phones are not their major exports and companies wont just move out as they have billions invested in china and have access to skilled workers which India has yet to produce