The China effect
by Mike K-H
Forget Dr Fu Manchu. The western world is being turned upside down by China without any malicious intent on the part of the Chinese. It’s the sheer size of what has been introduced to the world’s markets that causes the problem.
In France, I’ve seen a few examples over the past year or so. I live in the Limousin, an area which grows a lot of apples (not just Golden Delicious – they do grow some more interesting varieties as well). Last year, I saw several growers rip up some of their orchards and not replant them. The farmers tell me it’s because the Chinese started exporting apples – even if their production costs were similar to ours, the sheer volume of extra apples on the market would depress prices.
Over at RopeySoles we sell espadrilles and berets made in the foothills of the Pyrenees. Where once there were over a hundred manufacturers, there are now only two or three – all trying to find ways to differentiate their output from the Chinese equivalents which sell for less.
Recently, I was talking to the proprietor of my favourite knife shop. Even he has a few Chinese hand-finished clasp knives in stock, whose prices look very competitive at first glance.
In each case, you can tell the difference if you know what to look for – but it’s not always inferior manufacturing quality. For example, the Chinese don’t have sheep that produce the same quality of wool as the French do, so the felt of a cheap Chinese beret is noticeably inferior if you put one side-by-side with a French one.
The difference in the knives is perhaps more subtle. My knife man showed me a Chinese clasp knife, and pointed out that the blade, spring and side plates were of excellent steel, well finished – but the wood was not in the same class. The Chinese don’t have beautiful olive, juniper and other woods with interesting grains and a density that lets them take a silky polish.
It’s a bit like the early days of Japanese products – copies that vary in quality sold at low prices – but China produces a much bigger volume than Japan did in the early days.
Exchange rates will eventually adjust to reduce the Chinese advantage, and increasing awareness of the outside world will drive up workers’ expectations and salary levels. But nothing will reduce the sheer volume of their output. The world market is undergoing a permanent change.
I was exploring the market for art reproductions – hand painted copies of famous paintings etc. Such things retail at about £50 – £75 here in Thailand where we’re currently based – and they retail at a heck of a lot more in Europe and the USA. I thought there might be a business opportunity in buying cheap in the East and exporting/selling to the West.
It turned out that China was THE place to buy this kind of stuff wholesale. They have whole villages churning out these reproductions at incredibly low prices per unit. Actually obscenely low prices – it seemed like slave labour to me and I decided I didn’t want to be part of that business at all.
But yes, as you say, don’t underestimate the China effect.
I believe the better ones are quite good – but what about the quality of the materials? For a painting, I should imagine there wouldn’t be much difference, but even in the western world there are amateur and professional quality paints. Would the colours fade after a few years?
I’m not sure about the quality of materials but imagine they’re absolutely fine for the standard needed to supply the average consumer (rather than producing museum quality). I guess it’s the cheap labour which is the crucial factor, and the speed at which these artists can churn out the paintings.