Further Truth about Chinese innovation and Collapse

Chinese innovation is under question:

As an expatriate living in Hong Kong for nearly 30 years, Wendy Nesbitt is very familiar with counterfeit goods produced in China and sold on the Hong Kong black market for bottom basement prices. Products range from suits to jewelry and are easily available. One of the most copied industries is that of women’s handbags.

In small markets, store vendors show a wide variety of imitation purses in the front of their shops. The handbags are not marked with brand names but have similar designs to designer bags of the current season. The bags here sell for roughly 5-10% of what the real bags would sell for in the United States. However, the most blatant fake product offences are not on display.

The simple underlying motives and the government interactions that formed this underground handbag market in Hong Kong are representative of the conditions that surround most of the fake product manufacturing and technology theft in China.

In this era where "Innovation" is what the whole world is striving for, many Chinese commentators said that once a good thing is implemented in China, it inevitably becomes incredibly abnormal. To what extent is China's innovation independent?

Despite People's Republic China (PRC) being a member of 'World Intellectual Property Organization', typical thinking of Chinese leaders goes something like the following:

“Our technologies may[what's the doubt about?] originate from foreign countries, but it doesn’t mean that what we have now all belongs to them,” said Ma Yunshuang [deputy director with the technical center of China Southern Locomotive and Rolling Stock Industry (Group) Corporation.]

They can't even comprehend the idea behind Intellectual property rights.

On October 9, 2010, it was reported that Meizu had shut down production of the M8 due to pressure from the Intellectual Property Offices and Apple Inc. because of its blatant similarities to the iPhone.

The truth is this almost imperial country now-a-days doesn't even possess a brand that is well-renowned for its Innovation.

"China's independently developed high-speed rail technology has significantly surpassed Japan's."

"There's no doubt with China's high-speed rail safety; there will never occur a rear-end crash."

—While these type of lofty grandiloquence of the Chinese officials and experts of Ministry of Railways are still ringing in people's ears, there occurred the Wenzhou train crash on July 23. The accident caused hundreds of casualties(at least 38 people dead and 192 injured).


The costly innovation by the Communist Party (CCP) is so unrealistic and incongruous that it puzzles railway experts around the world. The technology that can automatically prevent crashes is very mature in Japan and in Europe and even if the train driver sleeps on the train, there would be no train crash from the rear. But the accident did happen in China. And the reason behind this incident, that is shameful for a country that boasts ostentatiously about its technological advancements, is train control system innovated domestically by the CCP, as a "prestige project." 

The train crash in China's Zhejiang province on July 23, 2011

 According to BBC China bullet train crash was 'caused by design flaws'. And Also Chinese educational is way below par for the course. (click here for more info about CCP(Chinese communist party)'s presumably ghastly  and entirely baleful issues).



Aftermath of the Train Crash:                                                                                                                 

 
BEIJING — After days of growing public fury over last month’s high-speed train crash and the government’s reaction, Chinese Dictators have enacted a virtual news blackout on the disaster except for positive stories or information officially released by the government. (This the extent of freedom offered in Mainland China)
Nevertheless, that devastating accident didn't seem to worry Spokesman Wang Yongping who claimed:

 "China's high-speed rail technology is up to date and up to standard [for quick reduction of the population?], and we still have faith in it." (LIE)

Despite reported directives from the "Propaganda Department" (effectively muzzles any critical view against the party and spreading propaganda and even meta-propaganda), Chinese media, both independent and state-owned, directly criticized the Ministry of Railways and voiced their skepticism of the government.

In one instance, in response to Wang Yongping's assurance at the press conference that the Chinese railway system was running on "advanced technology", news anchor Bai Yansong retorted on CCTV, 

"The technology may be advanced, but is your management advanced? Are your standard operating procedures advanced? Is the Supervision advanced? Is your respect for people advanced? Are all the minute details advanced? At the end of the day, is your overall operational capability advanced?"

Such challenges to officially-sanctioned orthodoxy were actually bold and extremely rare, particularly on programs aired on China's state-owned television. (Why do we say that? Click here and here)

Internet users attacked the government's response to the disaster after authorities muzzled media coverage and commanded reporters to focus on rescue efforts.

(Chinese Communist Party doesn't care about people's rights any more than, say, frogs do)

Most of China's current high-speed railways use the technologies of Japan, Germany and Canada, among which most are imported from Japan.

But this is never mentioned in public. Japan's 'Sankei Shimbunm' calls China's shoddy high-speed rails as "pirated versions of the Shinkansen." (nothing more than a shoddy imitation!)

The media of various countries reported that the majority of China's high-speed rail technologies were mostly stolen from Japan, in the name of project collaboration. Thus their inefficiency and lack of prowess.

Japanese bullet train: Kawasaki Heavy Industries Ltd. threatened to sue if China attempted to obtain patents for technology originally developed in Japan

The Australian quoted Japanese high-speed rail experts that after collaborating on early projects, China stole Japan's technology and froze the experts out, as it looked to establish a vast domestic network as well as an export industry in high-speed rail.

Japan's media Asahi Shimbun's reported on July 5 that Tadaharu Ohashi, president of Kawasaki Heavy Industries said that

"If the content of the overseas tenet application of China's high-speed railway contravenes the Shinkansen technology export contract signed by China and Kawasaki Heavy Industries. They will have to sue China."

Current issue commentator Wu Fan:

"China actually has no innovation, because of China's current social system and the people's state of mind, especially that the government takes the lead to steal foreign assets and intellectual properties in particular."

“In spite of urban China’s modern veneer, there’s still a deeply rooted cultural component at work. The whole idea of copyright is simply foreign.” Seattle Times, February 12, 2006

Complaints about China's stealing of technology under color of cooperation not only came from Japan, but also from Russia and even USA.
Russia's newspaper 'Pravda' published in April 2009 article :

"China Brazenly Steals Russian Jet Fighter Technology."

Current Issue Commentator Heng He: Such copycat is governmental behavior.
Except China's jet fighter "Jian" series, the rest are all imitations of the Russian system. Even if they are by China's own design, their motors are still made in Russia.

TIMOTHY GEITHNER: CHINA ‘VERY, VERY AGGRESSIVE’ IN STEALING U.S. TECHNOLOGY. Treasury Secretary Timothy Geithner said on Thursday that China is holding to its decades-old strategy to steal American intellectual property, in a pointed statement reflecting U.S. officials’ growing impatience with Beijing.

“They China have made possible systematic stealing of intellectual property of American companies and have not been very aggressive to put in place the basic protections for property rights that every serious economy needs over time,”  —Geithner told a forum in Washington. 

"Tell your Congressmen and Our President that when China honors International Copyright Law and pays back the Billions its stolen from the US, then the US will continue to repay China its debt." – Carlo Capomazza

GM, Fords, etc sued Chinese Automotive Companies for stealing their design.

Facing questions from foreign companies and media, how many absolutely independent innovations does China have? Why this imperialistic country now doesn't possess even one world-renowned brand providing "Unique Innovation"?

Heng He:

"This is related to China's development model. In the past 30 years, the CCP's[Communist Party of China] model is GDP-oriented. It only wanted to accelerate the development speed. However, it didn't have an integral system designed for long term or a system that follows economic patterns. This is why China's total economic output has become the world's No.2 but still without a world-class brand."

Heng He said that bulk purchase of foreign technologies enables the officials to get rebates. This contributes to the failure in development of China's independent innovations.

Anil Gupta, professor of Strategy & Entrepreneurship，University of Maryland and Haiyan Wang, managing partner of China India Institute, wrote an article published on Wall Street Journal on July 28. The article says in China,

1. processes for allocating government funds for R&D projects remain highly politicized. Research heavily focuses on quantity over quality.
2. They use local rather than international standards to assess research productivity. 
3. Academic frauds are rampant.
4. The educational structure emphasizes on rote learning rather than creative problem solving. 

Due to these reasons, although having lots of researchers, and abundant funds, China's innovations are still stymied.

For years the Chinese government neglected the counterfeit problem entirely. However, deaths caused by fake pharmaceuticals and baby formula as well as the copying of China’s own brands has caused the government to place increased importance on intellectual property laws. With China’s entry into the World Trade Organization, other countries have also put pressure on China to prosecute offenders with some success.

 

Communist China's (immanent) Economic Collapse:

On January 3, 2011 in New Year's message to business, Premier Wen Jiabao warned: "The first quarter can be quite difficult." (it's rhetorical allusion to a complete collapse)

Many of the so-called "economic contribution" phenomena, which the Chinese Communist Party (CCP) is dependent on, have begun to vanish. The CCP's safety net begins to fracture too.

Last October, Prof. Lang Xianping at the Chinese University of Hong Kong, talked in Shenyang about the economy. He pointed out during his speech, that China's economy is virtually bankrupt, but this cannot go in the official books. Prof. Lang said that China's Purchasing Manager Index shows, that China has entered recession as early as July 2011. However, all CCP's policies are such that they can cover up the real ailing situation.

Prof. Lang pointed out during his speech in Shenyang, that 70% of China's GDP is from infrastructure development. However, these are not cost-effective. Plus, the real pillar of China's economy, manufacturing, is now in a crisis too. He pointed out that many industries in Jiangsu and Zhejiang, have only 30% to 60% operating rate.

As the industry is sluggish, China's manufacturing industry is facing closures and strikes. Since 2008, in Dongguan, the Pearl River Delta, Wenzhou, Yangtze River Delta, etc., many businesses have closed down. In Wenzhou alone, from April to October, 2010, over 80 heavily indebted businessmen fled or committed suicides.

Chen Zhifei, economics' professor at New York City Univ., pointed out that China's private businesses have a hard time. Prof. Chen thinks this is due to CCP's preferential policies to state-owned enterprises and discrimination of private SMEs.

Prof. Chen:

"During the economy depression since 2008, (CCP) vigorously supported the state-owned enterprises. Although most of them were in deficit or bankruptcy state, they (CCP) still put money into these industries, as to support their own, private and monopoly party assets. Regarding the majority of the small and medium enterprises, the CCP suppressed them, and has policies of discrimination and restrictions on financial assistance."

In the first week of 2012, another round of the strikes' wave has launched in China. Sichuan, Guangxi, and Jiangsu had three strikes a day, each with thousands of people participating. Last year and the year before, large-scale strikes took place in many provinces and cities. These include Guangdong, Beijing, Shanghai, Jiangsu, Gansu, Chongqing, etc., or wherever there was a plant, was a strike.

Prof. Chen said, for a long time CCP is using cheap labor to attract foreign investments, playing a disgraceful role.

Prof. Chen:

"The Chinese government and the authorities, and the CCP system as a whole, play a very shameful role. They are pushing the Chinese people into the fire pit, using monopolized capital and cheap labor, acting as an evil boss."

Now oppression policies rebound, and prices rise fast, the labor force demands higher wages and went on strikes. The changes cause foreign manufacturers to retreat.

Morgan Stanley data shows that over the past 10 years, Chinese workers' salary grew nearly 12% per year. As the costs increase rapidly, many companies have begun to withdraw from China.