Posts by fulltimestudent

As I noted previously, patents expire and are superseded by improvments, so they have limitations in their value. The business trick is to maximise the profit you can make from the patented technology before it expires or is superseded.

I'm using GM as an example of how that might be done. GM is an example of a highly profitable and successful American company that has done well out of the Chinese market, by being willing to manage their technology transfer in return for access to the largest market in the world.

Here's what Forbes magazine had to say about GM in China:

10/11/2013

How General Motors Wins The Minds And Wallets Of Chinese Consumers

How did GM do it? Four ways:

First, by getting there early. GM’s first China venture dates back to 1997, with the formation of the Shanghai General Motors Company Ltd, or Shanghai GM, to manufacture and sell its Chevrolet, Buick, Cadillac, and Opel brands on the domestic market.

Second, by forging joint ventures with local producers. Local partnerships are very important for every company that expands its overseas presence. This is especially true in China, where local partners have close ties to the Communist Party (read Government) — which determines who will be in what business and for how long.

In all, GM has 12 joint ventures that offer the broad line of vehicles and brands sold under the Baojun, Buick, Cadillac, Chevrolet, Jiefang, Opel and Wuling brands. During the first nine months of 2013 as a whole, sales by GM and its joint ventures in China increased 11.1% on an annual basis to a record 2,312,418 units. Sales by Shanghai GM were up 14.9% year on the year to 1,111,129 units, sales by SAIC -GM-Wuling were up 8.1% to 1,156,778 units and sales by FAW-GM were down 0.5% to 41,063 units.

In addition, Buick sales rose 17.6% year on year to 606,330 units, Chevrolet sales were up 3.7% to 472,561 units, Cadillac sales increased 51.2% to 32,238 units, Wuling sales were up 9.8% to 1,087,591 units and Baojun sales grew 27.8% to 69,187 units.

Third, through localization. Some Buick models and some small Chevys, for instance, have been branded for the Chinese market. The same is true for electric vehicles, aggressively promoted by the Chinese government.

Fourth, innovation. GM is adopting China’s “commercialization model,” which brings new products to the market quickly.

As China’s GM President Kevin Wale put it in an interview:

“What China does better than any place else in the world is to innovate by commercialization, as opposed to constantly researching and perfecting the theory, like the West. When the Chinese get an idea, they test it in the marketplace. They are happy to do three to four rounds of commercialization to get an idea right, whereas in the West, companies spend the same amount of time on research, testing, and validation before trying to take products to market.”

Link: http://www.forbes.com/sites/panosmourdoukoutas/2013/10/11/how-general-motors-wins-the-minds-and-wallets-of-chinese-consumers/

The west's problem is that the world is changing quickly, and people, used to the world as it was, find it difficult to change with the world.

I believe that I can promise you that in 20 years time, the west will be seeking technology transfers from Chinese companies.

29

China's New export drive - trains and rail systems

by fulltimestudent in

four or five times a week i travel on sydney's extensive suburban rail network.

these days, most services use a train like this,.

which are modern, double-decked, comfortable carriages.. it's not generally known that most of these train-sets (i.e.

fulltimestudent

Gregor: It is common knowledge that China flat out steals patented western technology.

Indeed, it is a common charge, Gregor. But, did you have a particular legal case in mind that demonstrates that a Chinese company "stole" some other (western) companies patent?

I appreciate that international patent laws are a minefield, if you want to think of one, consider the ongoing Apple vs Samsung legal hassle. Apple wins in the USA and Samsung has won in other jurisdictions.

Did you also know that many joint venture agreements between Chinese and western companies contain clauses that enable technology transfers. Think what must be happening with GM's joint venture in Shanghai. Here's GM's statement from their media centre.

GM has 10 joint ventures and two wholly owned foreign enterprises as well as more than 58,000 employees in China. GM, along with its joint ventures, offers the broadest lineup of vehicles and brands among automakers in China. Products are sold under the Buick, Cadillac, Chevrolet, Opel, Baojun, Wuling and Jiefang nameplates. In 2013, domestic sales of vehicles by GM and its joint ventures jumped 11.4 percent on an annual basis to 3,160,377 units. During the first half of 2014, GM’s sales in China increased 10.5 percent from last year’s previous record for the period to 1,731,282 units.

Link: http://media.gm.com/media/cn/en/gm/company.html

To make that many vehicles GM will have built a large supply train of smaller suppliers, all having to meet exacting GM standards. That means a very large number of companies and people will have been exposed to GM technology.

Now there's something else about patents that you should know. Generally, they apply for a set period and then expire. After that, the patent information is available to anyone. Second, you could ask yourself, what is the patent for? Is it a completely new idea? Or, is it for an improvement? It can make a difference if you seek to take someone to court.

More, some changes to a product may void the original IP.

Let me illustrate. Years ago, I worked at fitting out hotels. My employer, would make a buy-out list, and on behalf of the developer, talk to the hotel management tream and the Interior design team, about what they wanted. Usually they wanted the best? No problem, even if there were copyright restrictions, we knew how to get around it. We'd prepare a specification to set a quality standard and talk to some alternative suppliers - these companies all had advice on copyright law, and knew that perhaps a minor change voided the copyright. Usually we'd be able to discount the estimated cost by at least 20%, maybe as much as 50% (its amazing how much some suppliers want to charge when they think the are specified).

All quite legal, and it justified our fee for managing the supply process. Everyone was happy, the hotel management team got what they wanted, the I.D. team got what they wanted (nearly). Our client saved some money. And we got our fee.

But let me go back to GM in my next post.

29

China's New export drive - trains and rail systems

by fulltimestudent in

four or five times a week i travel on sydney's extensive suburban rail network.

these days, most services use a train like this,.

which are modern, double-decked, comfortable carriages.. it's not generally known that most of these train-sets (i.e.

fulltimestudent

And some more:

29

China's New export drive - trains and rail systems

by fulltimestudent in

four or five times a week i travel on sydney's extensive suburban rail network.

these days, most services use a train like this,.

which are modern, double-decked, comfortable carriages.. it's not generally known that most of these train-sets (i.e.

fulltimestudent

How are Chinese trains built? In someone's backyard? Here's some recent images of the production line for one of the most popular Chinese train sets. (There are a number of different companies making trains in China)

This is the assembly line of a CRH380A train, being assembled in the manufacturing plant on Jan. 3, 2014.

China's high-speed train CRH380A, which has a maximum speed of 380 km/h during regular operations, and can keep a constant speed of 350 km/h was put into service last year. (Xinhua/ Wu Kaixiang)

Link (with more images) is at: http://english.people.com.cn/102774/8504226.html

29

China's New export drive - trains and rail systems

by fulltimestudent in

four or five times a week i travel on sydney's extensive suburban rail network.

these days, most services use a train like this,.

which are modern, double-decked, comfortable carriages.. it's not generally known that most of these train-sets (i.e.

fulltimestudent

Chinese premier Li Keqiang also recently visited the UK. Here's how DW, the German journal quoted above, saw his visit.

Sieren's China: China saves the Queen

China is more important for Britain's future than the British like to admit, says DW columnist Frank Sieren.

What can Premier Li offer the UK? It's no secret that western economies are cash-strapped. Years of supporting their hegemon in various wars have sapped western financial strength. The DW columnist continued ...

China's Prime Minister Li Keqiang traveled to Britain last week for the first time since taking office - right on schedule for the tenth anniversary of the China-UK comprehensive strategic partnership.

His timing could hardly have been better: China definately stands to benefit from Britain's adverse attitude toward the EU. All China has to do is what it does best anyway, namely to invest and finance infrastructure projects.

Chinese express trains for Great Britain

One of those projects is a high-speed railway line scheduled to connect London and the north of the country beginning 2026. The 53 billion euro ($72 billion) project is a highlight for Britain, where railroads were invented in 1825. In fact, Britain was a global leader in the technology until Germans and Americans caught on and stole the technology. In the 20th century, Germany, France and Japan took over world leadership of the technology, and now, they are being challenged by China.

The Chinese don't necessarily build better trains. They entered the game mainly because they are in a position to finance such a project. Cameron can no longer count on the City of London, and the British state hasn't been able to finance such projects for quite some time on its own. The UK is in debt with 89 percent of the GDP, and infrastructure has steadily fallen into a state of decay. And Cameron doesn't want to ask the Europeans for money.

So, to a certain extent, China is what the rich uncle from America used to be, who would help out in times of need. Finance Minister George Osborne, who has been asking himself for quite some time now how the impoverished country is able to finance its anti-European escapades if push comes to shove, heaved a sigh of relief once Li had signed the contracts to the tune of about 22 billion euros. In any case, China pledged that the two countries' volume of trade will rise from currently 62 billion euros to 75 billion euros next year - also for Britain's benefit.

Reference: http://www.dw.de/sierens-china-china-saves-the-queen/a-17733514

29

China's New export drive - trains and rail systems

by fulltimestudent in

four or five times a week i travel on sydney's extensive suburban rail network.

these days, most services use a train like this,.

which are modern, double-decked, comfortable carriages.. it's not generally known that most of these train-sets (i.e.

fulltimestudent

For those people who think that China only makes cheap sh*t*, as a recent poster claimed, China's move up the chain of world technology is going to bring many changes.

This past week, Russia (currently being shunned by the west) accepted a Chinese bit to finance and build a near 800 km long fast train service from Moscow to Kazan (on the River Volga)

High-speed rail deal part of agreements worth $10 billion

Updated: 2014-10-14 02:40

By ZHAO YINAN and FU JING in Moscow and ZHAO LEI in Beijing(China Daily)

Premier Li Keqiang talks to the media at a joint news conference with Russian Prime Minister Dmitry Medvedev in Moscow on Monday. [Rao Aimin / Xinhua]

China will take a decisive stake in the next stage of Russia's transportation development, with Chinese companies building the country's first high-speed rail line. The agreement formed part of joint deals worth $10 billion being signed on Monday.

Chinese firms and their Russian partners will hold talks on design, financing, supplying facilities and construction of a 770-km high-speed line connecting Moscow and Kazan, an important metropolis on the Volga River.

This was one of 39 agreements being signed after Premier Li Keqiang and Russian Prime Minister Dmitry Medvedev met for the 19th Regular Prime Ministers' Meetings.

Under the Russian plan, the line will form the initial section of a railway stretching to Beijing, with completion scheduled for 2018 in time for the World Cup soccer finals in Russia. Kazan is one of the host cities.

Trains on the line will reach speeds of up to 400 km/h, shortening the traveling time between the two cities from 13 hours to three and a half, according to the Moscow Times newspaper.

Reference: http://usa.chinadaily.com.cn/china/2014-10/14/content_18732945.htm

* The poster who made that comment completely misunderstands how the world works. The poster seemed to have the impression that China sells things in the USA (I think that was the poster's home). The reality is (in that case) that American bulk buyers go to China to buy things. They are presented as they talk to Chinese factories, with a huge range of products of varying qualities and price ranges. The American buyers make a choice of what they think they can sell in America in their outlets. The choice of the quality of a product is made (usually) by an American buyer, not a Chinese seller.

29

China's New export drive - trains and rail systems

by fulltimestudent in

four or five times a week i travel on sydney's extensive suburban rail network.

these days, most services use a train like this,.

which are modern, double-decked, comfortable carriages.. it's not generally known that most of these train-sets (i.e.

fulltimestudent

The DW journal article quoted above goes onto discuss the issue of China developing its own technologies after working in joint ventures, but seems to conclude that in the end the result will be better and cheaper technologies driven by competition, and the ultimate result will be increased demand around the world for high speed train services, and subway systems.

29

China's New export drive - trains and rail systems

by fulltimestudent in

four or five times a week i travel on sydney's extensive suburban rail network.

these days, most services use a train like this,.

which are modern, double-decked, comfortable carriages.. it's not generally known that most of these train-sets (i.e.

fulltimestudent

The chances are that in the future more and more people in the world will be travelling on Chinese built trains.

Thats the prediction of this article in a German trade journal: (Reference: http://www.dw.de/made-in-china-high-speed-trains-going-global/a-17755167 )

'Made in China' high-speed trains going global

Chinese high-speed train makers are increasingly selling their products to Western countries. Experts say the established European firms in the sector urgently need to develop strategies to counter the competition.

Previously known as a manufacturing hub for low-technology and labor-intensive products, China has been increasingly moving up the technology ladder to become an exporter of hi-tech goods.

No other sector symbolizes this shift better than the train market. When China decided over a decade ago to build a high-speed rail network connecting the length and breadth of the vast nation, the country had no domestic production base that could handle such a mammoth project. It had to import trains from foreign companies such as the German conglomerate Siemens, the Japanese corporation Kawasaki and the French firm Alstom.

Fast forward to today and Chinese rail companies have mastered the technology to build the trains and are now actively seeking markets overseas to sell their trains, thus competing with the established players in this segment.

For instance, it is reported that China South Locomotive & Rolling Stock Corporation (CSR), the Asian nation's largest train manufacturer, recently signed a contract with Macedonia's national railway company to sell six bullet trains. The agreement follows deals made by China with several other Eastern European countries such as Romania and Hungary to build high-speed rail lines.

Beijing is also promoting its high speed rail infrastructure and technology in other regions such as Asia and Africa.

29

China's New export drive - trains and rail systems

by fulltimestudent in

four or five times a week i travel on sydney's extensive suburban rail network.

these days, most services use a train like this,.

which are modern, double-decked, comfortable carriages.. it's not generally known that most of these train-sets (i.e.

fulltimestudent

Four or five times a week I travel on Sydney's extensive suburban rail network. These days, most services use a train like this,

which are modern, double-decked, comfortable carriages.

It's not generally known that most of these train-sets (i.e. the carriages) were not manufactured in Australia, but were made as described in this Wikipedia entry,

" The trains are manufactured in China by the Changchun Railway Vehicles , with internal fitting-out performed by Downer Rail at Cardiff Locomotive Workshops . The first Waratah train entered service on 1 July 2011 with 78 sets completed in June 2014." Link: http://en.wikipedia.org/wiki/Sydney_Trains_fleet

So who is Changchun Railway Vehicles, and who are their customers? Another Wikipedia link notes:

Changchun Railway Vehicles Company Ltd. (长春轨道客车) is a Chinese rolling stock manufacturer under China CNR Corporation . While the CRV emerged in 2002, the company's roots date back to the establishment of the Changchun Car Company in 1954.Link: http://en.wikipedia.org/wiki/Changchun_Railway_Vehicles

And here's a list of clients, as we see. this factory has quite an impressive list of rail clients and already people around the world are making their daily journeys on Chinese built trains.
Beijing Subway (Line 1, Line 2, Line 5, Line 6, Line 9, Line 10, Line 13, Line 14, Line 15, Yizhuang Line, and Airport Express)
Tianjin Metro (Line 1, Line 9)
Shanghai Metro (Line 6, Line 8)
Guangfo Metro (Line 1)
Shenzhen Metro (Shekou Line, Longgang Line)
Shenyang Metro (Line 1, Shenyang Metro)
Harbin Metro
Xi'an Metro (Line 2)
Chongqing Metro
Changchun Light Rail Transit
Tehran Metro
Hong Kong MTR (Island Line, Kwun Tong Line, Tsuen Wan Line and Tseung Kwan O Line)
Rio de Janeiro Metro (Line 1A)
Supervia (All lines)
Pyongyang Metro
Line A (Buenos Aires Metro))(Buenos Aires, Argentina)
BTS Skytrain (CNR Changchun Bombardier Movia)
Mecca Metro
CityRail A set/Waratah Trains (Sydney, Australia)
KiwiRail 50 Passenger Car Bogies (New Zealand)
Downtown Line (CNR Changchun Bombardier MOVIA C951)(Owner:Land Transport Authority) (Operator: SBS Transit DTL Pte Ltd)(Singapore)
Wuhan Metro (Line 1)