I own few companies in Mainland China, one of them is the biggest shareholder of one mid size trading & manufacturing company in textile industry. A decade or more than that ago, it was like what he said, most productions that branded under foreign names were designed by foreign companies, the Chinese side only did the manufacturing, and earned the least profit. Things have been changed in the recent decade, now Western brands are becoming more and more lack of innovation, in many industries, sometimes some brands just come to China, put an idea, and ask for final solution, so the Chinese side has to do much more than before. Yet, brands and medias won't tell you that, they would like you to think about Made-In-China is still something broken and cheap. So for Western companies they could keep monopolizing such business and lower the competition from their Chinese counterparts, for medias they could keep smearing China. That's one of the reasons that the Chinese EVs in recent two years are shocking many in the West, and they couldn't understand why China could has achieved so much in such short period. The answer is, many live in a bubble and they have no idea about it. Also, I would like to point out, this whole MAGA thing, bringing manufacturing back to the US, that Trump has been advertising, to me, as someone who has been working and doing business in manufacturing and supply chain for years, is simply mission impossible, I think anyone who has the same experience like me would agree.
I see your point, however never underestimate American ingenuity. Although bringing back all types of manufacturing back to US might seem almost impossible at this point, what the US can do is bring back the most critical/select manufacturing industries. And if you look at this transition process from a multi-decade effort I believe it can be done to somewhat level the manufacturing playfield.
ive been telling this to my close friends. the moment Chinese companies figure out how to brand and market themselves properly to the world , western corporations is screwed
Perhaps it's the kick we need in our collective butts to get back to "real" industirial economy instead of the ephemeral financial economy where we pretty much has been either collecting rent from the brands our forefathers built or using our built up capital (or reserve previlege in case of US) to create market disturbance and profit as this swing up and down.
"...this report might not be as interesting as others". Probably the only wrong statement in the whole clip. This clip is as thought provoking as all your work. Thank you, Kevin.
Xiaomi, Hisense, oppo, Lenovo, haier, BYD, shien, vivo, TCL, anker, Temu, dji, chery, honor… just a short list of brands that are already up the value chain ! More to come !
I want Huawei back! (I'm from UK so we no longer get them, which is unfortunate as I did really like the one I had. I use a Xiaomi phone now, decent enough) Funny how even though they're banned over these parts of the world, they're still known as a top-tier brand by quite a lot of folks and especially the RUclips community!
It is all about learning from your competitors. And now the dual circulation strategy since 2020 - more opening-up, strengthening domestic demand and diversification of trade structure with industrial upgrading, indigenization and localization of foreign technologies, R&D and supply chain optimization
@@thisiskevin1000It boils down to the culture The Chinese culture believes in mutual respect, which in the real dog eats dog world, means certain defeat But the Chinese persisted, believing their kindness will, one day, melts others hearts Well, it ends up the Chinese getting the short end of the stick, time and time again Dunno when can the stubborn Chinese wisen up
RUclipsr Reporterfy Media recently made short videos on the 2024 Canton Fair. The MSPs disclosed by the manufacturers are outstandingly low compared to what their products will sell for in the West. What is sad is that the West profits tremendously on the backs of hard working 🇨🇳 workers while bashing the country at every turn 😢. No thanks, just tariffs…🥺😡
From Canada.Thanks for your very informative reports.Im in my eightees and look forward to every report .We just came back from a 2 week Viking cruise out of Shenzen to Beijing and it was wonderful.If I was younger I would definitely do something similar to what you are doing.The best of luck and thank you again
Soft power, branding, d English language. These are very, very hard to beat. But it's ok, I'm happy that China will have the only base in space and that China has broken the hi tech monopoly of the west. Not many people can appreciate these things.
When the water is cleared, fishermen can see the big fishes . That’s why big fishes always muddle the water when they’re threatened, Kevin. Does that sound familiar? Especially in today’s political turmoils environment rumble between Russian, U.S. Iran and China and others. Good point Kevin, it’s the illusive fishes that are difficult to catch. You got it Kevin. Thanks for sharing your insightful thoughts.
I am also quite a new Subscriber, for the same reason as yourself. Watched, listened, learned from, by going through several of Kevin's previous videos.
The YT algorithm works in pursuance of subscribers' previous favorites, sending the subscribers to their most comfy comfort zone. One can't really blame the algorithm too much.
It's true, milions of middle-high class income earners globally are directly/indirectly came from business selling products manufactured in China, lots of them earned more than 2x the cost of what they paid to their Chinese suppliers by just by being the middleman. But now I see they gradually changed the game, they went in directly to big projects by hiring locals.
When I was learning German, we once watched in the class a short documentary, "Rhina von heute" (Today's Rhina), which tells a story about a small German village whose Jew population went from 400+ down to zero in a short period of time during the early 1940s. Among the interviewees, one local resident told on the camera, " 'They' didn't work or produce anything, but brought a cow from one village to another and charged the buyer the price of what they paid to the original seller plus an outrageously exorbitant profit accrued to their own pocket. ‘They' are just like blood-sucking leeches. So 'they' had to disappear." That is how much the middlemen in Rhina back then were "loved" by Rhina residents. It's quite a long time ago when that video was being watched. The reason why one could still have the recollection of it that clear among a couple of hundred documentaries we watched back then in German class was because of the statement as to why the locals felt 'they' had to disappear. Of course Chinese people are much kinder than Rhina people.
it's only matter if time before made in China in Western countries are associated with quality and innovation. Japanese car makers are a prime example of going from cheap cars to luxury cars. the Chinese have moved on from cheap cars and have leading ev car technology
AFTER, The President of The European Union Commission, Ursula von de Leyen, passed 14 Rounds of Sanctions against Russia, this resulted in closing the largest and most lucrative market for German Manufactured "top-end" vehicles. THIS left a vacuum in the market. China, together with its Membership of BR*CS, saw an excellent opportunity. I recommend, research the percentage increase of Chinese Manufactured Vehicles, on the roads of Russia, since 2021 to date.
I am going to post a similar message for every 10,000 subscribers you gain until you reach 100,000. Congratulations on surpassing 80K! I started following you when you had just over 10K followers. There is another RUclipsr, Jason (RUclips channel: Living in China). I began following him when he had only 10K+ followers. Now, he has almost 490K followers and is soon approaching half a million. You are even more informative. You are that good! P.S. This time, you reached another 10,000 faster than Living in China. Considering the different base numbers, you did a marvelous job!
"The value chain is where the money is." A really valuable lesson if you are planning global business over the next decade or two. Hopefully a peaceful future, but usually trade wars lead up to real wars. Thanks.
Extending this argument, the American model has the opposite problem in charging too much. This is what allowed China to do so well in the first place. The majority of the people in the world cannot afford American priced stuff. America went crazy in the last 40 or so years in how they paid ceos and academics. The multiples compared to the average salary became ridiculous for what they were doing. China businesses are not greedy with profits as they price at affordable levels so they have room to push up prices for improved quality when they lose more American market share from trump tariffs. American businesses on the other hand have been ruled by greed. They need to make their prices affordable to if they want their businesses to be sustainable with a larger customer base.
It is not that China doesn't have a considerable number of truly innovative "Big Name Brands" (just look at their car, truck and HSR Industries), along with such Household Goods giants including Huawei, Xiaomi TCL and Haier; the problem is that Western Media is very good at "rubbishing" these brands, and promoting Western "badge engineered" costlier (and usually inferior) yet Chinese - engineered, product. This is the essence of the Western "skim" economic model, and this is a model that is fortunately fading fast.
Not surprising really, given US actually created funding streams to promote anti China propaganda the most recent Bill HR1157 alone is worth $1.6 billion dollars!
Its done. Because at some point if NOT directly leapfrogging with new ideas, the Chinese will just buy up the Corps and their patents as they fail (or Corp Exec Bail Greed over possession). AI the whole back catalogue run that against the world pop and all back trends and fashion...like doh, then its over. They could simply scale up/down/sideways at that point.
I imagine one day when China gets hold of both supply chain as well as value chain, it becomes the "Sun" of the world and the rest just surround satellites.
Temu is a great example of cutting out the middle man. I know I'm getting a product that would have a brand name placed on it at the final stage of production. But buying it off the actual Chinese manufacturer, literally saves me about 80%. Every piece of clothing I've bought in the last 2 years, Temu saving me hundreds of dollars, without leaving home.
Yeah they are all behind pay wall. Everything good in the internet is behind pay wall only cia propaganda is free. It's a shame. Nobody can afford 20-30 different subscription
Watching your videos feels like seeing someone who is miles ahead of the curve. I try to never miss one of these. Podcasts should be dying to have you on as a guest.
This is an excellent report on various value of each part of the supply chain. Chins businessmen seem to have little knowledge of global business operating environment . Chinese businessmen eat the little fish, foreigners eat the big fish. US financial institutes make fat money just sitting down looking at SWIFT computer operations helping them earn hundreds of billions of dollars each year. from around the world. Now China realises BRICS can end the US tycoons from making easy money.
I'm quite sure they knew about it long time ago, but all depends where are you positioned in this business model At the particular time. China could not do it for long as they can now. They need (firstly) to push more and more their own brands of any kind as they doing it in tech or EV market.
Re "have little knowledge of global biz...."? Bet this is not true. Approx 10yrs ago I met a Chinese SME biz in a resort outside China and we had a small conversation. He highlighted the Chinese bizs worked like dogs making stuffs for the world to use, while the Americans controlled the fin mkts, making easy $$. If this guy was conscious of the situation, U think top Chinese officials don't know? The issue was the US had almost a stranglehold of the fin system, and in recent yrs the Chinese got to find out where are the weak links where they could make an attempt to punch thru. The US are retaliating; interesting time going fwd 🙏🙏
So true..... Here in Africa, we have been using American, Japanese and German machinery in construction.... But now all you see is Chinese.... They are eating up the biggest part of the pie now.
在美元潮汐收割時期，中國需要美元外匯，現在不同了，另外美國的優先主義同橫盲，中國會審視海外資產安全性，更不用說美國的36萬億國債了。 During the U.S. dollar tidal harvest period, China needed U.S. dollars for foreign exchange, but that is different now. In addition, the U.S.’s priority doctrine is the same as horizontal blindness. China will examine the safety of overseas assets, not to mention the U.S.’s 36 trillion national debt.
Thank you Kevin for your insightful reporting on RUclips, Im very happy to see you have archived your reports on your Substack pages. Thanks again for your great work, I have learned so much from your even handed and clear-eyed reports.
To access the top levels China has to cooperate with western designers that understand the needs and wants of the western consumers. As an example from Sweden: a Chinese guy living here collaborated with designers here to build a smartwatch suited for Europeans. It is not as fullfeatured as iWatch but has all the things you need. It is beautiful, functions well, integrate with your phone. And the price point is $90 and 20% of that is Swedish VAT. I bought it and is very happy with it. It is manufactured in China. The idea is not new. When Toyota wanted to design a luxury brand for the US they asked Americans that drove BMW and Mercedes what they liked. The result was Lexus.
Or.... "The Needs and Wants of Western Consumers" need to become.... "The NEEDS of Western Consumers"? Once "WE" realise that "This years model" of .... "Whatever" will actually be "Fine" for another 2-3 years, the idea (And now "requirement") of "rampant consumerism" promoted and disguised as "capitalism" will be seen for what it is.... The "Big guys" "Capitalising" over the "small guys" (The consumer) I should note that *I* have just bought a new phone..... (OMG!!!) BUT It IS replacing a phone that's 4 years old this month and outside the "support window"... so I'll give myself a break. BOTH are Chinese (as is the one before these!) and ALL 3 combined amount to about 65% the price of the new iPhones, so I'm not being too hard on myself. The last 2 have also powered my Home Internet, which "disappointed" my previous supplier no end... and the monthly saving has actually paid for the combined cost of phones PLUS unlimited phone and data connection by a factor of 2.75. Once you get over "WANT".... "NEED" leaves a lot in the bank.... With a LOT less stress.
China doesn't need to cooperate with the west. It's already ahead with BYD, Dji, Huawei, and so on. That is why the west wants to ban Chinese products or put tariffs. The west can't compete with China now.
Brilliant commentary as usual that makes sense of of otherwise complex economics. Massive well done ! Should be required watching by business people at every level and academics everywhere
Thanks Kevin, once again you've delivered on an under reported topic, and provided a really punchy executive level summary of the important points. I'm increasingly better informed on how things operate within the PRC.
China already setting up lot of last mile supply chain in US using temu, shein like model where China literally drops the final product on US shore instead of going through Walmart like companies
Thank you Kevin you highlighted a mostly ignored part of the supply chain. Take a few product eg electronic items and put the figures ex-factory and US retail then the average buyer will understand
After I raised up to 325k trading with her I bought a new House and a car here in the states 🇺🇸🇺🇸 also paid for my son's surgery (Oscar). Glory to God.shalom.
Actually a very interesting report. Underscores the advantages/disadvantages of doing business in various parts of the world. Watched multiple times since first posted. Interesting. Thank you.
Starts with "P" and ends in "ropaganda". It the tactic of Bullies, Normally insecure, who think the way to seem "Better" is to paint "the other guy" as "Bad", or "Weak". . But, when the "other guy" is SMART.... and the Bully sees them years later, It become apparent who was (is) "Better".
@@KCFSac A line from a favourite song of mine.... "... If you manipulate the Data, then the Lie will sell itself" . (If you know, you know.... give it a "👍")
You closing was amazing " for those companies that provide services thats not needed, China is coming for that money" You amazing, best news channel in the world, and its free.. Keep fighting the good fight.
The U.S hit its peak after it gave amnesty to all the German crims in exchange for tech knowledge. It also once had an exceptional education system , but that has change now due to the Empire trying to maintain its hegemony and diverting money from industry / education and infrastructure to military might. With a population of 1.4 Billion and an ever advancing education system, the return of highly trained and talented people, there is no stopping the rise and dominance of China !
在美元潮汐收割時期，中國需要美元外匯，現在不同了，另外美國的優先主義同橫盲，中國會審視海外資產安全性，更不用說美國的36萬億國債了。 During the U.S. dollar tidal harvest period, China needed U.S. dollars for foreign exchange, but that is different now. In addition, the U.S.’s priority doctrine is the same as horizontal blindness. China will examine the safety of overseas assets, not to mention the U.S.’s 36 trillion national debt.
I wish that Chinese manufacturers would stop putting the dreaded "Fashion" label on shoes and clothings they make. Even no brand will sell better than the "Fashion" brand. Could somone tell them, pls..🙄🥺👍
I think it smarter for China to continue to expand supply chain activities, know how, and foot print in global south such as their new port in Peru, and also by building production centers and creating training schools there that will create new consumers for products by raising incomes and living standards in those places (BRICS). Doing this, while leaving a good portion (not all) of the value chain business to the U.S. companies reduces political risks and can over time reverse the problem of migration to the U.S., helping to keep U.S consumer economy heathy, which you do not want to destroy. A balancing act for sure, but less risky and more win-win.
That takes generations to come to fruition. Most countries does not have the bureaucratic tradition and one-party rule of China and east asian countries. And in the meantime where would China get the money for such task but to sell to westerners and other faat rising areas such as ASEAN. But that takes time
They also need to invest in their intel gathering and security apparatus since you can bet the usual bad actors will be looking to sabotage the nice things built, especially the example you cited, the major port in Peru.
Interesting and important points, in which advertising in the US and the insurance industries are tops in the US bar none. The legal over reach is also tops in the US.
Thats why i always say the US GDP is inflated. Real productive economy is drawft by service sectors which does not really produce anyrhing. If not for the tech companies and predatory IP laws the US would be irrelevant.
We had a "low altitude" delivery system at one time. It was the zeppelin/dirigible system. I would love to see a return to that. (Yes, I am aware of the Hindenburg "disaster").
It's good to see China push into business services, and China is already capturing more of the value chain with Chinese brands like Huawei, DJI, BYD, Hisense, and Xiaomi selling globally. When China sells a Hisense TV, all of the profit goes back to China. Same as when Sony displaced RCA, and Samsung displaced Sony. I wonder how quickly China will compete in financial services. Their $1+ Trillion USD annual trade surpluses would provide tremendous power to play as a titan in financial markets. The recent $2 Billion USD bond issuance in the Kingdom of Saudi Arabia was small when China could easily sell $20 Billion a month, $250+ Billion annually and force the Fed to compete with higher interest rates. Perpetually elevated US interest rates would set a floor on US inflation and keep US products less competitive globally against China's minimal inflation, effectively weaponizing the US Dollar against itself.
I’ve been wondering whether China’s success is due in part to it not having a well developed parasitic middleman economy. At this moment in time there’s no one sitting behind a desk trying to think of new ways to screw a few more cents out of customers (eg subscription pricing to activate features in cars), instead the mindset in China is still “How can we offer more and charge less”. This is a glorious time for consumers.
CHINA COMMUNICATIONS SECTOR - Pr advertising marketing sales tv movies - these are areas where China is still IMO considerably behind. They still are ordinary at marekting both products and China as a society to the world. But they are smart so they will catch up, And this vid seems to be focussing on significant related sections of the supply chain. A coupla / few vids on the more "intellectual" areas of China production would be v welcome.Kevin.
It IS an interesting and very educational tape. Thank you Kevin. You are addressing a future trend regarding the Chinese effort to share some obscene profits from the top of the value chain. You have pulled together figures unseen elsewhere I plan to watch the tape a few times to internalize the valuable information.
this video is complex but it is very interesting. also , usa companies like deloitte, mckinsey, fidelity are making big money in the chinese mkt. room for major growth to absorb yound grads.
This begs the question ...When China controls supply chain, logistics , insurance and banking and marketing then what does the rest of the world do ? And what do you even do ?
Compete on price. Or better marketing? There are a lot of better phones than Apple, but they captured and mesmerized millions with their "ecosystem" and branding
During the first term of Trump's regime, followed by Biden's regime for two terms, the US has been working so damn hard to contain and suppress China's economy on all fronts with all out efforts, still Kevin has been able to do his business in China and sell in the US the heavy machines and equipment made in China for more than a decade (approximately 14 years by now). One would not worry any bit about what Kevin can do next, since he already points all that out to us today. And you know why that is the case? Because Kevin evidently is a gentleman with a clever and just mind, who always seeks and encourages win-win cooperation between the US led west and China, very much unlike Trump, Biden, or any creature alike..
![Felix "Unfair" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/Oswujxm2Ag0/mqdefault.jpg)
Substack, for video transcript and direct links:
kdwalmsley.substack.com/p/chinas-economic-model-has-a-weak?r=4pow86
I own few companies in Mainland China, one of them is the biggest shareholder of one mid size trading & manufacturing company in textile industry. A decade or more than that ago, it was like what he said, most productions that branded under foreign names were designed by foreign companies, the Chinese side only did the manufacturing, and earned the least profit. Things have been changed in the recent decade, now Western brands are becoming more and more lack of innovation, in many industries, sometimes some brands just come to China, put an idea, and ask for final solution, so the Chinese side has to do much more than before. Yet, brands and medias won't tell you that, they would like you to think about Made-In-China is still something broken and cheap. So for Western companies they could keep monopolizing such business and lower the competition from their Chinese counterparts, for medias they could keep smearing China. That's one of the reasons that the Chinese EVs in recent two years are shocking many in the West, and they couldn't understand why China could has achieved so much in such short period. The answer is, many live in a bubble and they have no idea about it.
Also, I would like to point out, this whole MAGA thing, bringing manufacturing back to the US, that Trump has been advertising, to me, as someone who has been working and doing business in manufacturing and supply chain for years, is simply mission impossible, I think anyone who has the same experience like me would agree.
Very true.
About MAGA manufacturing. It is not about actually doing it. It is about winning an election.
@@monophthalmus3254真实了哈哈哈
I see your point, however never underestimate American ingenuity. Although bringing back all types of manufacturing back to US might seem almost impossible at this point, what the US can do is bring back the most critical/select manufacturing industries. And if you look at this transition process from a multi-decade effort I believe it can be done to somewhat level the manufacturing playfield.
Steve Keen has laid out how to return American manufacturing. But Trumps economic advisors are neo liberals, so they are blinkered and clueless.
ive been telling this to my close friends. the moment Chinese companies figure out how to brand and market themselves properly to the world , western corporations is screwed
Indeed!
Perhaps it's the kick we need in our collective butts to get back to "real" industirial economy instead of the ephemeral financial economy where we pretty much has been either collecting rent from the brands our forefathers built or using our built up capital (or reserve previlege in case of US) to create market disturbance and profit as this swing up and down.
Agreed
@@marcc1830 Sure.....we've got millions of people that want to do the hard, dirty jobs just to build the factories!
@@marcc1830 the western capitalism/neoliberalism...
For business minded people, this RUclips channel is one of the most useful I’ve come across in recent years. Well done.
it really is. No nonsense straightup reality based analysis.
However don’t predict the political Trend based on what said here, do the opposite maybe
@@sczhao3297 It depends what the goal is. Are you trading shares in specific industries?
"...this report might not be as interesting as others". Probably the only wrong statement in the whole clip. This clip is as thought provoking as all your work. Thank you, Kevin.
We just need at list of the Chinese companies going after the profits.
@@UPdan yes, this report is eye-opening
Some cry babies just complain.
People like Kevin look for cooperation, win-win, interoperability. And you are doing good.
cooperation 15/85 is win win?
I’m genuinely sharing this with my friends. Not many channels that get me to do this. Excellent work
The Declining Empire wants to put 100% tariffs on this Giant Rising Economy!
Xiaomi, Hisense, oppo, Lenovo, haier, BYD, shien, vivo, TCL, anker, Temu, dji, chery, honor… just a short list of brands that are already up the value chain ! More to come !
I want Huawei back! (I'm from UK so we no longer get them, which is unfortunate as I did really like the one I had. I use a Xiaomi phone now, decent enough)
Funny how even though they're banned over these parts of the world, they're still known as a top-tier brand by quite a lot of folks and especially the RUclips community!
@ look at Honor (HUAWEI sub-brand) has Google services and is available in UK
Indeed, I often don't even consider buying 'western' brands anymore, knowing that it's just Chinese with some label to sell it at a higher price.
At this point, I'm preferring Chinese brands for the better value.
@@ZIGZAG12345 I just bought a Huawei phone when I was in Hong Kong. It'd be nice if it supported more global cell bands, but it works well enough.
China has been too kind...
... and others took advantage of it
It is all about learning from your competitors.
And now the dual circulation strategy since 2020 - more opening-up, strengthening domestic demand and diversification of trade structure with industrial upgrading, indigenization and localization of foreign technologies, R&D and supply chain optimization
@@thisiskevin1000It boils down to the culture
The Chinese culture believes in mutual respect, which in the real dog eats dog world, means certain defeat
But the Chinese persisted, believing their kindness will, one day, melts others hearts
Well, it ends up the Chinese getting the short end of the stick, time and time again
Dunno when can the stubborn Chinese wisen up
I think China suffered so hard for so long, they are only now awakening free.
@@verypleasantguy Jungle mentality belongs in the trash can. The west practices social Darwinism for centuries and this is where they ended.
I would rather say it was a Trojan Horse. But the soldiers are coming Out...Now !
It is about time for China to change, don't let the Western firms to make most money with little to no work at all
And China makes little money and gets most blamed while the west makes the most money with the hard work from Chinese workers
RUclipsr Reporterfy Media recently made short videos on the 2024 Canton Fair. The MSPs disclosed by the manufacturers are outstandingly low compared to what their products will sell for in the West. What is sad is that the West profits tremendously on the backs of hard working 🇨🇳 workers while bashing the country at every turn 😢. No thanks, just tariffs…🥺😡
@ Agree 👍, I have been watching his channel since Covid days.
From Canada.Thanks for your very informative reports.Im in my eightees and look forward to every report .We just came back from a 2 week Viking cruise out of Shenzen to Beijing and it was wonderful.If I was younger I would definitely do something similar to what you are doing.The best of luck and thank you again
Soft power, branding, d English language. These are very, very hard to beat.
But it's ok, I'm happy that China will have the only base in space and that China has broken the hi tech monopoly of the west. Not many people can appreciate these things.
It will get much easier when Trump implements his idiotic tariffs.
When the water is cleared, fishermen can see the big fishes . That’s why big fishes always muddle the water when they’re threatened, Kevin. Does that sound familiar? Especially in today’s political turmoils environment rumble between Russian, U.S. Iran and China and others. Good point Kevin, it’s the illusive fishes that are difficult to catch. You got it Kevin. Thanks for sharing your insightful thoughts.
Thank you for doing a great job in exposing the truth & hypocrisies.
Most interesting as usual... Thanks. BE GOOD!
I can't believe it took so long for this channel to show up in my algorithm. And I'm excited to be here! 🙌✌🏼
I am also quite a new Subscriber,
for the same reason as yourself.
Watched, listened, learned from,
by going through several of Kevin's previous videos.
The YT algorithm works in pursuance of subscribers' previous favorites, sending the subscribers to their most comfy comfort zone. One can't really blame the algorithm too much.
Kevin's videos showed up in my feed 6 months ago and I haven't learnt so much in my life!
@@etbuch4873
BUT, from my understanding, The Algorithms ARE programmed by human beings.
This channel hits on all cylinders and gives you the real scoop on business in China.
It's true, milions of middle-high class income earners globally are directly/indirectly came from business selling products manufactured in China, lots of them earned more than 2x the cost of what they paid to their Chinese suppliers by just by being the middleman. But now I see they gradually changed the game, they went in directly to big projects by hiring locals.
When I was learning German, we once watched in the class a short documentary, "Rhina von heute" (Today's Rhina), which tells a story about a small German village whose Jew population went from 400+ down to zero in a short period of time during the early 1940s. Among the interviewees, one local resident told on the camera, " 'They' didn't work or produce anything, but brought a cow from one village to another and charged the buyer the price of what they paid to the original seller plus an outrageously exorbitant profit accrued to their own pocket. ‘They' are just like blood-sucking leeches. So 'they' had to disappear." That is how much the middlemen in Rhina back then were "loved" by Rhina residents.
It's quite a long time ago when that video was being watched. The reason why one could still have the recollection of it that clear among a couple of hundred documentaries we watched back then in German class was because of the statement as to why the locals felt 'they' had to disappear. Of course Chinese people are much kinder than Rhina people.
God bless China!
China is patient, overcoming the manufacturing progress to the financial system, The idea is affordable for everyone without excess profit.
Very on time，look forward for your next report
it's only matter if time before made in China in Western countries are associated with quality and innovation. Japanese car makers are a prime example of going from cheap cars to luxury cars. the Chinese have moved on from cheap cars and have leading ev car technology
AFTER,
The President of The European Union Commission,
Ursula von de Leyen,
passed 14 Rounds of Sanctions against Russia,
this resulted in
closing the largest and most lucrative market for German Manufactured "top-end" vehicles.
THIS left a vacuum in the market.
China, together with its Membership of BR*CS,
saw an excellent opportunity.
I recommend, research
the percentage increase of
Chinese Manufactured Vehicles,
on the roads of Russia, since 2021 to date.
I am going to post a similar message for every 10,000 subscribers you gain until you reach 100,000.
Congratulations on surpassing 80K! I started following you when you had just over 10K followers.
There is another RUclipsr, Jason (RUclips channel: Living in China).
I began following him when he had only 10K+ followers. Now, he has almost 490K followers and is soon approaching half a million.
You are even more informative.
You are that good!
P.S. This time, you reached another 10,000 faster than Living in China. Considering the different base numbers, you did a marvelous job!
"The value chain is where the money is." A really valuable lesson if you are planning global business over the next decade or two. Hopefully a peaceful future, but usually trade wars lead up to real wars. Thanks.
You are a SIGNIFICANT channel Kevin.
THANKYOU!
Blessings from Australia....❤
Extending this argument, the American model has the opposite problem in charging too much. This is what allowed China to do so well in the first place.
The majority of the people in the world cannot afford American priced stuff.
America went crazy in the last 40 or so years in how they paid ceos and academics. The multiples compared to the average salary became ridiculous for what they were doing.
China businesses are not greedy with profits as they price at affordable levels so they have room to push up prices for improved quality when they lose more American market share from trump tariffs.
American businesses on the other hand have been ruled by greed. They need to make their prices affordable to if they want their businesses to be sustainable with a larger customer base.
Couldn't agree more with what you've said.
A revealing and deep understanding of China business from the inside - really superb. As always, thanks Kevin.
It is not that China doesn't have a considerable number of truly innovative "Big Name Brands" (just look at their car, truck and HSR Industries), along with such Household Goods giants including Huawei, Xiaomi TCL and Haier; the problem is that Western Media is very good at "rubbishing" these brands, and promoting Western "badge engineered" costlier (and usually inferior) yet Chinese - engineered, product. This is the essence of the Western "skim" economic model, and this is a model that is fortunately fading fast.
Not surprising really, given US actually created funding streams to promote anti China propaganda the most recent Bill HR1157 alone is worth $1.6 billion dollars!
More and more people see trough the msm bs.
Its done. Because at some point if NOT directly leapfrogging with new ideas, the Chinese will just buy up the Corps and their patents as they fail (or Corp Exec Bail Greed over possession). AI the whole back catalogue run that against the world pop and all back trends and fashion...like doh, then its over. They could simply scale up/down/sideways at that point.
One day soon China will be doing all of the design and engineering. Then what? Theres only so much insurance we can sell to each other in America.
I imagine one day when China gets hold of both supply chain as well as value chain, it becomes the "Sun" of the world and the rest just surround satellites.
Will become interesting when it starts to eat into Western profits.
It already is, but guess what the geniuses in US did, they passed a new Bill HR1157 worth $1.6b dollars to create more anti China propaganda! LMAO!
Temu is a great example of cutting out the middle man.
I know I'm getting a product that would have a brand name placed on it at the final stage of production.
But buying it off the actual Chinese manufacturer, literally saves me about 80%.
Every piece of clothing I've bought in the last 2 years, Temu saving me hundreds of dollars, without leaving home.
Congratulations on reaching over 80k subscribers!!!
Thanks for understanding that not everyone can pay for the articles. 👍
Yeah they are all behind pay wall. Everything good in the internet is behind pay wall only cia propaganda is free. It's a shame. Nobody can afford 20-30 different subscription
Thanks, great Tuesday, K.M.
Man you are one of the very best for information,
Watching your videos feels like seeing someone who is miles ahead of the curve. I try to never miss one of these. Podcasts should be dying to have you on as a guest.
On the contrary Kevin, I found this report very interesting. Thank you.
new year，new you Kevin happy new year🎉🎉🎉🎉🎉🎉
This is an excellent report on various value of each part of the supply chain. Chins businessmen seem to have little knowledge of global business operating environment . Chinese businessmen eat the little fish, foreigners eat the big fish. US financial institutes make fat money just sitting down looking at SWIFT computer operations helping them earn hundreds of billions of dollars each year. from around the world. Now China realises BRICS can end the US tycoons from making easy money.
at the little fish, foreigners eat the big fish
you chinese? suckling white dricks
I'm quite sure they knew about it long time ago, but all depends where are you positioned in this business model At the particular time. China could not do it for long as they can now. They need (firstly) to push more and more their own brands of any kind as they doing it in tech or EV market.
Re "have little knowledge of global biz...."? Bet this is not true. Approx 10yrs ago I met a Chinese SME biz in a resort outside China and we had a small conversation. He highlighted the Chinese bizs worked like dogs making stuffs for the world to use, while the Americans controlled the fin mkts, making easy $$. If this guy was conscious of the situation, U think top Chinese officials don't know? The issue was the US had almost a stranglehold of the fin system, and in recent yrs the Chinese got to find out where are the weak links where they could make an attempt to punch thru. The US are retaliating; interesting time going fwd 🙏🙏
So true..... Here in Africa, we have been using American, Japanese and German machinery in construction.... But now all you see is Chinese....
They are eating up the biggest part of the pie now.
在美元潮汐收割時期，中國需要美元外匯，現在不同了，另外美國的優先主義同橫盲，中國會審視海外資產安全性，更不用說美國的36萬億國債了。
During the U.S. dollar tidal harvest period, China needed U.S. dollars for foreign exchange, but that is different now. In addition, the U.S.’s priority doctrine is the same as horizontal blindness. China will examine the safety of overseas assets, not to mention the U.S.’s 36 trillion national debt.
A very informative, thoughtful and knowledgeable channel.
Kevin, great job! Almost 80k subs!
Thank you Kevin for your insightful reporting on RUclips, Im very happy to see you have archived your reports on your Substack pages. Thanks again for your great work, I have learned so much from your even handed and clear-eyed reports.
Your very interesting....keep up your appreciated work....thank you....
To access the top levels China has to cooperate with western designers that understand the needs and wants of the western consumers. As an example from Sweden: a Chinese guy living here collaborated with designers here to build a smartwatch suited for Europeans. It is not as fullfeatured as iWatch but has all the things you need. It is beautiful, functions well, integrate with your phone. And the price point is $90 and 20% of that is Swedish VAT. I bought it and is very happy with it. It is manufactured in China. The idea is not new. When Toyota wanted to design a luxury brand for the US they asked Americans that drove BMW and Mercedes what they liked. The result was Lexus.
Or.... "The Needs and Wants of Western Consumers" need to become.... "The NEEDS of Western Consumers"?
Once "WE" realise that "This years model" of .... "Whatever" will actually be "Fine" for another 2-3 years, the idea (And now "requirement") of "rampant consumerism" promoted and disguised as "capitalism" will be seen for what it is.... The "Big guys" "Capitalising" over the "small guys" (The consumer)
I should note that *I* have just bought a new phone..... (OMG!!!) BUT It IS replacing a phone that's 4 years old this month and outside the "support window"... so I'll give myself a break.
BOTH are Chinese (as is the one before these!) and ALL 3 combined amount to about 65% the price of the new iPhones, so I'm not being too hard on myself.
The last 2 have also powered my Home Internet, which "disappointed" my previous supplier no end... and the monthly saving has actually paid for the combined cost of phones PLUS unlimited phone and data connection by a factor of 2.75.
Once you get over "WANT".... "NEED" leaves a lot in the bank.... With a LOT less stress.
China doesn't need to cooperate with the west. It's already ahead with BYD, Dji, Huawei, and so on. That is why the west wants to ban Chinese products or put tariffs. The west can't compete with China now.
Brilliant commentary as usual that makes sense of of otherwise complex economics. Massive well done ! Should be required watching by business people at every level and academics everywhere
Thanks Kevin, once again you've delivered on an under reported topic, and provided a really punchy executive level summary of the important points. I'm increasingly better informed on how things operate within the PRC.
Me too sir
Thanks. This report is "Very Interesting" in its own unique way.
I can’t help thinking that threats and tariffs are not the way ahead…..
Goodcon China for pulling out the ticks. I've learned long ago to buy things from China with Chinese brands, nothing Western.
Liked how he tried to say Xi Shuang Banna right in the end😂😂😂
Thank you, Kevin. Take care!
China already setting up lot of last mile supply chain in US using temu, shein like model where China literally drops the final product on US shore instead of going through Walmart like companies
Thank you Kevin you highlighted a mostly ignored part of the supply chain. Take a few product eg electronic items and put the figures ex-factory and US retail then the average buyer will understand
$450k Returns the Lord is my saviour in times of my need!!!
wow this awesome 👏 I'm 37 and have been looking for ways to be successful, please how??
It's Ms. Susan Jane Christy doing, she's changed my life.
After I raised up to 325k trading with her I bought a new House and a car here in the states 🇺🇸🇺🇸 also paid for my son's surgery (Oscar). Glory to God.shalom.
Absolutely! I've heard stories of people who started with little to no knowledge but made it out victoriously thanks to Ms. Susan Jane Christy.
Can't imagine earning $85,000 biweekly, God bless Ms. Susan Jane Christy, God bless America 🇺🇸♥️
Thanks again Kevin
A very good report. You explain it well. Thank you.
Actually a very interesting report. Underscores the advantages/disadvantages of doing business in various parts of the world. Watched multiple times since first posted. Interesting. Thank you.
I love your reporting, thank you.
Whats the deal with with the channels that constantly release videos claiming that china collapsed, such as decoding china or china observer?
160 billion in American propaganda
They are telling a story some people want to hear. It's not reality.
真假参半的信息，把个人或者单体事件无限放大。再加上中国官方媒体一般也不会出来声明，如果事情真的很大。（这里指的真的很大指的是网络上讨论很大，中央反馈专属网站，反馈事情的人越过一定数量）你只要留意下中国中央官方媒体，会通告。中央会指派人员到地方调查。地方有些个体事件，地方媒体会通报。外国人要了解中国，最佳方法是亲自去当地了解比较现实。
Starts with "P" and ends in "ropaganda".
It the tactic of Bullies, Normally insecure, who think the way to seem "Better" is to paint "the other guy" as "Bad", or "Weak".
.
But, when the "other guy" is SMART.... and the Bully sees them years later, It become apparent who was (is) "Better".
@@KCFSac
A line from a favourite song of mine....
"... If you manipulate the Data, then the Lie will sell itself"
.
(If you know, you know.... give it a "👍")
Thank you for this information.
You closing was amazing " for those companies that provide services thats not needed, China is coming for that money" You amazing, best news channel in the world, and its free.. Keep fighting the good fight.
It's changing even if the general public only sees what MSM media presents. That's why it takes them by "surprise".
Thanks
Thank you
The U.S hit its peak after it gave amnesty to all the German crims in exchange for tech knowledge. It also once had an exceptional education system , but that has change now due to the Empire trying to maintain its hegemony and diverting money from industry / education and infrastructure to military might. With a population of 1.4 Billion and an ever advancing education system, the return of highly trained and talented people, there is no stopping the rise and dominance of China !
Very very interesting and important
As always very interesting. Thank you
在美元潮汐收割時期，中國需要美元外匯，現在不同了，另外美國的優先主義同橫盲，中國會審視海外資產安全性，更不用說美國的36萬億國債了。
During the U.S. dollar tidal harvest period, China needed U.S. dollars for foreign exchange, but that is different now. In addition, the U.S.’s priority doctrine is the same as horizontal blindness. China will examine the safety of overseas assets, not to mention the U.S.’s 36 trillion national debt.
Thank you, an interesting topic. Be well ❤
I wish that Chinese manufacturers would stop putting the dreaded "Fashion" label on shoes and clothings they make. Even no brand will sell better than the "Fashion" brand. Could somone tell them, pls..🙄🥺👍
😂😂😂😂😂😂😂😂This question has really been bothering me for a long, long time.
Because not many people know English culture. Small companies in China only know the word English fashion.
Funny thing is FA SHI ON would be a BRAND.
amazing content and analysis....
❤👍👍👍👍👍👏🔥🙏😍❤️what a timely info for all of us to be aware!! thanks Kevin🌟
I think it smarter for China to continue to expand supply chain activities, know how, and foot print in global south such as their new port in Peru, and also by building production centers and creating training schools there that will create new consumers for products by raising incomes and living standards in those places (BRICS). Doing this, while leaving a good portion (not all) of the value chain business to the U.S. companies reduces political risks and can over time reverse the problem of migration to the U.S., helping to keep U.S consumer economy heathy, which you do not want to destroy. A balancing act for sure, but less risky and more win-win.
That takes generations to come to fruition. Most countries does not have the bureaucratic tradition and one-party rule of China and east asian countries. And in the meantime where would China get the money for such task but to sell to westerners and other faat rising areas such as ASEAN. But that takes time
They also need to invest in their intel gathering and security apparatus since you can bet the usual bad actors will be looking to sabotage the nice things built, especially the example you cited, the major port in Peru.
your repots are very good i enjoys them
this was very interesting and clearly explained, thank you
Thank you Kevin for this great insight.
5:22 ...four industries we can eliminate? Or which are eliminating themselves?
Kevin, ALL of your stuff is interesting.
Interesting and important points, in which advertising in the US and the insurance industries are tops in the US bar none. The legal over reach is also tops in the US.
Thats why i always say the US GDP is inflated. Real productive economy is drawft by service sectors which does not really produce anyrhing. If not for the tech companies and predatory IP laws the US would be irrelevant.
Very informative!
God bless your hard work
Go China, stay warm❤
You got it
Question for Chinese watchers. Is there a RUclips of a typical Chinese Curriculum from K1-K12?
We had a "low altitude" delivery system at one time. It was the zeppelin/dirigible system. I would love to see a return to that.
(Yes, I am aware of the Hindenburg "disaster").
It's good to see China push into business services, and China is already capturing more of the value chain with Chinese brands like Huawei, DJI, BYD, Hisense, and Xiaomi selling globally. When China sells a Hisense TV, all of the profit goes back to China. Same as when Sony displaced RCA, and Samsung displaced Sony. I wonder how quickly China will compete in financial services. Their $1+ Trillion USD annual trade surpluses would provide tremendous power to play as a titan in financial markets. The recent $2 Billion USD bond issuance in the Kingdom of Saudi Arabia was small when China could easily sell $20 Billion a month, $250+ Billion annually and force the Fed to compete with higher interest rates. Perpetually elevated US interest rates would set a floor on US inflation and keep US products less competitive globally against China's minimal inflation, effectively weaponizing the US Dollar against itself.
Thank you for the analysis. Great
When you mentioned Xichuangbana i thought you would show those adorable Asian elephants.
DJI is one of the most successful brand of China.
I’ve been wondering whether China’s success is due in part to it not having a well developed parasitic middleman economy. At this moment in time there’s no one sitting behind a desk trying to think of new ways to screw a few more cents out of customers (eg subscription pricing to activate features in cars), instead the mindset in China is still “How can we offer more and charge less”. This is a glorious time for consumers.
CHINA COMMUNICATIONS SECTOR - Pr advertising marketing sales tv movies - these are areas where China is still IMO considerably behind. They still are ordinary at marekting both products and China as a society to the world. But they are smart so they will catch up, And this vid seems to be focussing on significant related sections of the supply chain. A coupla / few vids on the more "intellectual" areas of China production would be v welcome.Kevin.
Depends if you consider that "Behind"?
Kevin is a knowledgeable person ...kudos to him
It IS an interesting and very educational tape.
Thank you Kevin.
You are addressing a future trend regarding the Chinese effort to share some obscene profits from the top of the value chain.
You have pulled together figures unseen elsewhere
I plan to watch the tape a few times to internalize the valuable information.
In medical area, Mindray, United Imagine, Medbot et al catching up faster then most people even realised.
Really interesting and thought provoking video, thanks Kevin!
Always find you interesting
this video is complex but it is very interesting. also , usa companies like deloitte, mckinsey, fidelity are making big money in the chinese mkt. room for major growth to absorb yound grads.
This begs the question ...When China controls supply chain, logistics , insurance and banking and marketing then what does the rest of the world do ? And what do you even do ?
Compete on price. Or better marketing? There are a lot of better phones than Apple, but they captured and mesmerized millions with their "ecosystem" and branding
During the first term of Trump's regime, followed by Biden's regime for two terms, the US has been working so damn hard to contain and suppress China's economy on all fronts with all out efforts, still Kevin has been able to do his business in China and sell in the US the heavy machines and equipment made in China for more than a decade (approximately 14 years by now). One would not worry any bit about what Kevin can do next, since he already points all that out to us today. And you know why that is the case? Because Kevin evidently is a gentleman with a clever and just mind, who always seeks and encourages win-win cooperation between the US led west and China, very much unlike Trump, Biden, or any creature alike..