Outsourcing to China: A Work in Progress
"Ripoff Nation" (Winter 2006) shows that just jumping on the outsourcing train doesn't work for all companies. While the article lays out some of the realities that need to be considered, two other issues remain: First is the impact of large companies on protecting the exchange rate between Chinese currency and the dollar. The other is the lack of recourse when it comes to intellectual-property issues. The pendulum is already starting to swing away from the huge advantages that Chinese businesses hold in this area, and I predict we'll see more changes that will help make progress in leveling the playing field.
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Just 20 years ago in China, private business was considered a sin. If you tried to discuss intellectual property, copyrights, patents, and the like, you were considered an idiot or simpleton. There was one law, and that was Communist law.
Don't you think that we've seen progress there? At least there's a five-year-old intellectual-property law and a two-year-old private property law. It will perhaps take a generation or two to see an effective legal system in place.