The Forbidden City of Terry Gou 253
ElvaWSJ writes "Hon Hai churns out iPhones and Wiis, and provides a window into China's secretive world of outsourcing and manufacturing. With a work force of some 270,000 — about as big as the population of Newark, N.J. — the factory is a bustling testament to the ambition of Hon Hai's founder, Terry Gou. In an era when manufacturing has been defined by outsourcing, no one has done more to shift global electronics production to China. Little noticed by the wider world, Mr. Gou has turned his company into China's biggest exporter and the world's biggest contract manufacturer of electronics."
Ah, if only (Score:5, Funny)
And unlike so many other Chinese Manufacturers (Score:4, Insightful)
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Re:And unlike so many other Chinese Manufacturers (Score:5, Informative)
They get paid $0.60 an hour (a lot in China), but they also get to live rent free, their food is subsidized, and they have free health care. They also get overtime pay and actually do get raises. I wouldn't mind that deal, if I were just starting out of high school and needed to work.
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Oh, like the US military!
They also get overtime pay and actually do get raises.
Oh wait, never mind.
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You know this was how it was done back in the 19th century. It's close to slavery.
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All the more reason I'm for Fair Trade agreements- ones where only the countries that are willing to accelerate to American labor and environmental standards get the trade. Want to do business with American consumers? Accept American laws.
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indentured servitude in china (Score:4, Interesting)
They've got access to genuine 1960s era medical technology there, which I suppose is better than medical tech from the Qin dynasty that is available in the boondocks. That is, if people don't just watch you die.
Workers typical have access to low cost/free housing too, which consists of crappy temporary concrete buildings. I'm sure Chinese business owners have a paternal warm fuzzy when taking care of their workers, but don't let the the "spin" of how great the workers have it get to you. The conditions totally suck here.
The Chinese pride themselves on their ability to endure hardship, but the other side of the coin is that they are ignorant of what a better life is like AND they are fairly passive as a people. Change is going to be a long, frustrating progress here. Honestly, I don't think China would be progressing so fast if they weren't being given oodles of money on a silver platter.
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Not that Terry Gou is any great shakes either.
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Re:And unlike so many other Chinese Manufacturers (Score:4, Insightful)
And that the Mattel recall (another American company that hired the Chinese toy company) also covered a heck of a lot more than one product- the recall was 5 PDF pages with pictures of hundreds of different products.
I wonder if the producer of all of those red & yellow Thomas the Tank Engines also killed himself? Or how about the Million Pounds of Fish [news-record.com] intended for human consumption that was subject to an import alert this week?
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*rolls eyes*
Unions protect the people at the low end at the expense of the people at the high end. There's no reason to perform well because you won't be payed more for it. In fact, because its so hard to fire you, you barely have to perform at all.
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Sorry- your obvious propaganda from management does not fit reality.
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Many "American" companies are now just shells- designers & importers that sell to retailers, nothing more. This has been going on for 40 years now- the slow de-industrialization of America. You can make parts in Mexico too- if you're willing to pay 2-4x as much for labor.
There is nothing on the linked page to suggest that any of the products had anything to do with China at all
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If you look above, I clearly blame the American companies for searching for cheap labor to begin with. UNIONIZED workers, in the 1950s in America, on the other hand, took pride in making quality products- and marketed them as such.
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And they care why? HTC, the MiniOne, and other iClones will never match the marketing power of Apple.
Re:And unlike so many other Chinese Manufacturers (Score:5, Informative)
Hon Hai is known for paying above the regional average and maintaining safer than average working environments. A far cry from living in a comfortable bungalow in California, but it's certainly much better than the average treatment employees get in China.
Worker conditions (Score:5, Interesting)
Re:Worker conditions (Score:5, Insightful)
Ok, humanitarian perspective aside. Those workers are now able to provide a their families 2 square meals a day. If companies stop using them, then they go hungry, continue living in slums and you pay more for your beloved techno-gadgets. Right now they are better off than they were earlier and you are happier since you can have the privilege of using an iPod and listening to your choice of music on the go. See win-win scenario...
Re:Worker conditions (Score:5, Insightful)
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Re:Worker conditions (Score:5, Insightful)
I'd rather automate (Score:3, Insightful)
Give us our jobs back or let the machines take over.
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So basically, to compete with China, we need to start working at 60 cents a day.
Do you realize what this will do to America's spending power? It would plunge us into utter poverty. And the rest of the world, too.
Re:Worker conditions (Score:5, Interesting)
Fine, as long as:
a) The company agrees to follow all Chinese laws and we agree to promptly extradite any executives residing in US to stand trial for any violations. I hear death penalty is common for stuff like environmental accidents and allowing employees to access information about Tinamenn square events through corporate intranet gets you sent to a re-education camp for a few years. Are you actually suggesting that a company should be allowed to avoid laws of ALL countries by shifting people and corporate registrations around?
and
b) The company goods are charged a non-punitive duty to compensate for the loss of tax income compared to a US company paying wages to american workers.
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Re:Worker conditions (Score:4, Insightful)
If they were actually all getting better standards of living, we wouldn't be objecting on humanitarian grounds. Yes, they get a better standard of living, we get products. Everyone wins. The fact that they do it for a fraction of what it would cost here, I guess one lives with because it's an actual opportunity for them and they get to move up the economic ladder. Such things are relative to where you live.
But, when one hears stories about what is outright slavery, workers not getting paid at all, and all of that stuff, then one tends to be a little more worried about how ethical these products are. There are regular stories about appalling things happening in Chinese factories, as well as a lot of shady dealings from sub-sub contractors who nobody seems to be accounting for (like, lead in kids toys for instance).
Personally, I would like a little more assurance that the products I'm buying which are made in China actually have a little fairer labour practice than the worst case we tend to hear about. And, I don't think it's too unrealistic to basically tell the companies using these manufacturers that they really need to be sure of such things. I don't begrudge the workers a chance to make a living -- but, I do expect the parent companies to do more than the most superficial due-diligence to Do The Right Thing.
This is an unfortunate side effect of outsourcing (well, one of many) -- you really have no assurances that the people making the stuff you buy aren't being subject to really awful conditions.
Cheers
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Consider this: You are right that stopping to use them would be bad for the workers too. However, as a consumer spending lots of money with these companies you have the choice to learn about which of these companies treat their customers best and take that into account when picking products. You also have the choice of threatening companies using the worst
Re:Worker conditions (Score:5, Insightful)
This is not to say that we nor they should be satisfied with their present lot in life, but rather to say that things are improving. Their economy is primitive by modern standards. It will grow, rapidly, and working conditions will improve - just like they did in our country.
The answer to helping these people advance is not to stop buying their products, which puts them right back where they were - with nothing. The answer is to continue to buy their products, which empowers them and gives them options.
Re:Worker conditions (Score:5, Insightful)
The point that stuck with me was that hordes of people flocked from the farms to the cities, because horrible as it may have seemed to us, it was still _better_ than the conditions they left behind. On the farms you toiled (men, women and children) from sunup to sundown 7 days a week. Conditions were no less dangerous; farm machines could kill you just as dead as machines in a factory. And on the farm if it didn't rain at the right time, or rained too much, or the bugs came your crop was wiped out and you starved. At least in the mills, as long as you could work you knew you were not going to starve. While "not starving to death" is a pretty minimum standard of living, it sure beats "maybe starving to death"
your history teacher was wrong (Score:5, Informative)
The people had already flocked to the city because they had been evicted from their pastoral livelihood by the Enclosure Laws. The industrial revolution happened substantially due to the critical mass of effectively starved humans ready to make the toil economically and emotionally feasible.
And there were no machines on the farms until the late nineteenth century.
Bread only becomes critical on the farm when the cities find it necessary to keep their machine-minder's bellies full. I am not saying the expropriation of labor by capital is not essential. There is no interpretive value in pretending that it is something other than it is for the sake of whitewashing the motives of the haute bourgeoisie.
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You are right about the machinery, it happened almost at the end of the IR. So please sub "kicked in head by horse;run over by h
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1. The Enclosure Laws were only in England. The Industrial Revolution happened all over Europe and the US.
2. Between 1500 and 1900, the agricultural output of England and Wales rose three-fold. Enclosure, while not nic
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The answer to helping these people advance is not to stop buying their products, which puts them right back where they were - with nothing. The answer is to continue to buy their products, which empowers them and gives them options.
You're partly right. Not buying the product certainly won't help that worker, unless you replace the purchase of that product with something that is fair to its workers. The problem is, I don't know who that company is, in electronics at least.
One example I can think of is Blackspot Shoes [adbusters.org], a "shoe brand" created by the equally loony and insightful AdBusters magazine. At $78/pair, they're more expensive than the Converse All-Stars they copy (which used to be made in the USA).
I'm not in the market for shoes,
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My girlfriend works as a manufacturing Warehouse Manager for an international company in Mexico, she has a Master in Manufacturing and her
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>exploiting jewish slave labor. These major corporations know damn well that they're exploiting these
>people--that's why they outsource to China. It's not like they're going there and offering
>Western-style pay and working conditions.
Of course not - because the locals don't demand such compensation, and even if they did, it could be terribly disruptive to the local economy anyway.
A buddy of
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A good real world example of what economists call the price/wage spiral [wikipedia.org].
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>labor communities to fight for better living and working conditions.
It is theirs for the taking, just as it was for us.
>The way things became better for workers in the
>US was when the prospect of strikes cajoled management into finally acknowledging workers rights. Buying their
>products just puts more and more money into the ever-growing Chinese plutocracy, and encourages them to main
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Sometimes you have to be willing to lay down your life to achieve basic human rights.
But I think things will improve for them even without such drastic measures. So it has gone with every developing nation that has embraced economic growth.
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Come [wikipedia.org] again? [wikipedia.org] That's [wikipedia.org] not [wikipedia.org] exactly [wikipedia.org] right. [wikipedia.org]
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Re:Worker conditions (Score:4, Informative)
US union members DIED by the dozen for our 8 hour working days.
In fact, May 1 as an international day for international labor demonstrations was a direct result of the US labor movements demonstrations for 8 hour working days and the resulting bloodshed.
I find it sad that so few Americans actually know anything about how the US used to be at the forefront of the fights for workers rights, and the large number of lives lost in fighting your government and industry to get the protections you have now. It is one of the things you truly have to be proud of, as it had a significant impact on labor movements worldwide and so directly affected workers rights throughout the industrialized world.
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No, I meant it empowers the workers. They now have wages where before they had less or none. This allows them to build wealth and improve their lot in life.
>That's the real reason why they and every 3rd world country is where it is. China is one of the oldest,
>largest countries in existence and they have lots of natural resources, why do you think they are still where they are?
That depends, where do you think they "are"? The way I see it, every day they ar
Re:Worker conditions (Score:4, Insightful)
China moves slow traditionally but as they develop a real middle class, the lower class conditions will improve becaue of increased internal spending and more attitudes similiar to those in more developed nations.
Re:Worker conditions (Score:5, Insightful)
Valid Point: Not a Troll #2 (Score:2)
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Hrm. There's also the opposite method which in theory could work but never will on paper:
You can start accepting less payment for everything you do, and make sure you can still get by. This will lower the cost of all the goods based on your efforts, so that will make US goods more competitive in the world market. Cool!
Oh, wait, that doesn't work like that, does it...why don't other people lower their prices if I lower mine again?
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Well you can do two things (Score:2)
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Or maybe it transitions from shitty lives working in the fields, to shitty (but less so) lives working in factories, and then when the people actually get enough income to care about such things the conditions start improving - due to workers out numbering factory owners...
You can try and skip all that I guess, but that last great leap forward didn't turn
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At least the WSJ hasn't been fully "Rupertized" yet. At that point, they'll probably spend the entirety of these articles asserting that Chinese entrepeneurs' successes are proof that we should all go back to living in company towns, where the evil libruhls
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You go, Gou! (Score:5, Funny)
Don't have a Gou, man!
Holy Gou!
Gouabunga!
Pass Gou, collect $200 (billion)
Is that to Gou?
Amazing. (Score:2)
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Oh, you said *William* Gibson...
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The world's first living Simpson's episode (Score:4, Funny)
FTA:
Is it just me, or could I replace "Longhua" with "Cypress Creek", "Mr. Gou" with Hank Scorpio, and "Foxconn" with "Globex Corporation", and we'd have the world's first living simulation of a Simpsons episode?
I've heard the Chinese were good at imitation, but this seems to be going just a bit too far ...
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Unless you were shooting for +5 insightful?
Is the work week same in China for overtime ? (Score:2, Interesting)
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I don't know about Shenzhen or most of the rest of China, but where I came from in Asia the work day is 6 days a week, 8-10 hours a day. Overtime is paid at par (i.e. there is no bonus), but people love it anyway. Workers in these factory-cities don't have much of a life besides making money and sending most of it back home - so an opportunity to make even more cash with time they wouldn't spent doing diddly squat anyways seems appealing.
Some companies pay out mid-year bonuses based on company performance
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Interesting Plant Layout... (Score:3, Insightful)
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http://en.wikipedia.org/wiki/Company_town [wikipedia.org]
Although here, they were more traditionally mining and refining businesses, not outright manufacturing.
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Photos and another viewpoint (Score:5, Informative)
And here is a write-up [bunniestudios.com] about someone from Chumby Industries [chumby.com] visiting Shenzhen to get their production line up-to-date. It's more about the area than anything about the factory.
surprise (Score:2)
I am sure this is merely coincidental.
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Kharma-scraping Google Maps link to Hon Hai (Score:2)
Interesting place. Unless the Google imagery is horribly out of date, the Hon Hai facility has plenty of room to expand.
Related Story.... (Score:2)
Not that I'm suggesting a conspiracy, just pointing out that two stories on the front page take place in the same geographic location.
Foxconn is everywhere. (Score:2)
"Took our jobs"? (Score:3, Insightful)
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Pfft... Propaganda is More Accurate (Score:2, Interesting)
This story would lead me to believe they want to buy Western consumer electronics brands. http://investing.reuters.co.uk/news/articleinvesti ng.aspx?type=media&storyID=nTP151265 [reuters.co.uk]
Or maybe do it themselves: http://online.wsj.com/article/SB118470395184169274
Either way, this "story" is so light on facts and any objectivity whatsoever i
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National Chinese vs. Local Chinese (Score:3, Insightful)
Often the national Chinese government wants to clamp down on the factories but can't because they lack the resources to do so and are opposed by the factory's home government. (Similar to the U.S. EPA vs. city governments bought and sold by the local factory.)
Actually, the Chinese gov
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Yes, the conditions at most factories are better than they were, but they are so far below US standards it's scary.
OK, I'll bite. Have you worked in a US factory back when those existed? Do you have a basis for comparison? Do you know which US standards are higher? At least the Chinese workers get free health care, which is something US workers largely do not have. The fact is, this country did exactly the same thing [wikipedia.org] back when its economy was going through the growth phase.
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No joke, do it! Learning Chinese is easy... (Score:5, Interesting)
- It's way easier than Westerners make it out to be...similar sentence structure to English, and the verbs stay the same between different tenses. No conjugations, declinations, etc. In many regards it's much easier than "Romance" languages.
- You will be able to communicate with a quarter of the world's population.
- Though there are 13 different dialects of spoken Chinese, they all share the same writing system. You get to read and write 12 additional languages for free. Japanese uses many Chinese characters, too.
- Because it's so hyped as the world's most difficult language, your Western colleagues and employers will think you're a freakin genius. Imagine having "Fluent in Chinese" on your resume?
- Future study in languages more closely related to English will become comparatively easy. You'd be surprised how much French, Spanish, and German you already unknowingly speak on a daily basis.
- It's utterly fascinating to learn, especially the characters.
- If you can't beat 'em, join 'em.
If you want to get the hang of Mandarin Chinese quickly, Pimsleur is hands down the absolute best.
Re:No joke, do it! Learning Chinese is easy... (Score:5, Insightful)