Chinese profitability

From the time that they first appeared in Europe during the sixteenth century, Chinese porcelain objets d art were highly prized. Porcelain was far harder than any other ceramic material, and it exhibited a translucence that no European pottery could match. The first porcelain pieces to arrive in Europe inevitably found their way into the treasuries of European rulers. Then, as the porcelain trade grew, wealthy aristocrats began collecting objects made of the precious material. Europeans potters naturally looked for ways to manufacture porcelain themselves. If they discovered the secret, the profits would be immense. However, the secret of manufacturing porcelain turned out to be as elusive as the secret of the Philosopher s Stone. 

With a seemingly unlimited addict population in China, the sale of opium became a major source of income for the British, constituting much of their tax revenue from India and completely paying for Chinese tea sent to Britain. For many years, the BEIC set the amount of opium sold to China at 4,000 chests (280 tons). During this time, the British did not desire or make a profit but simply sold enough opium to take care of their need for China s tea. However, the demand for opium in China far outstretched the artificially set British supply, causing competition from Turkey, west India, and America. 

However, supplying opium to millions of Chinese addicts was a profitable business, and it was under the control of British companies. In 1839, when China tried to ban the opium trade, Britain sent its navy and marines to force open the ports. In 1842, the Opium wars ended with China forced again to allow the drug to be sold. 

The Chinese chemical industry is already as profitable as that in the West, with reported EBIT margins of between six and seven percent. There is, however, a great disparity between the best and worst performers. Wholly foreign-owned enterprises... 

The point of decline of remittances (that is, legal remittances, as reported above) coincides with Peking s orientation to joint investments with expatriate Chinese. That policy goes back to 1951, when the South China Enterprise Company, the forerunner of the present Overseas Chinese Investment Corporation, sold 100,000 shares to Chinese businessmen in Hong Kong and Macao. However, until 1957, the attractions for such investors were limited overseas Chinese investment could only find opportunities in agriculture, the least profitable sector of the economy. 

But in 1957 new regulations came into effect that not only guaranteed a 12 percent dividend investment, against a normal 8 percent dividend in ordinary mixed companies. The Peking government also made provision for repatriation of part of the profits to the overseas Chinese investor. 

Assume that the identical rate of expatriate Chinese financial support continued during the years 1965-78 in this form of investment, augmented only by a 10 percent inflation factor, highly conservative for the area. The aggregate investment during 1965-78 would amount to 6.3 billion, in joint operations with the PRC. Assume a 40 percent annual profit margin on this investment,... 

Two pieces of eyewitness testimony from Mao Tse-tung s wartime hideout in China s northern Yenan province bear comparison. The first is the report by Peter Vladimirov, the Soviet liaison to Mao s headquarters in Yenan during 1941-45. According to the Soviet-published Vladimirov Diaries, the Chinese Communist Parly operating in Yenan grew opium for profit, not only for medicinal uses. Opium had been a major cash crop for Yenan before Mao s arrival Vladimirov claimed that Mao continued the practice. The Soviet representative also suspected the CPC s chairman s close contact with American visitors connected to the Institute for Pacific Relations. (7)... 

While in the USA environmental regulations were very strict and labor costs relatively high, Chinese companies profited from a combination of low labor costs and lax environmental regulations. Also, the largest rare earth mine in China at Bay an Obo not only produces rare earths but also iron ore, which provides another stream of income which covers the mine s fixed costs (Gholz 2014). 

According to APICS s statistics, only one ERP system can bring the enterprise the following economic profits (1) Productivity can be increased by 10%-l 5% (2) Stock can be decreased by 30%-50% (3) Productive cost can be decreased by 12% (4) The wait time for materials can be decreased by 60%. It has been 20 years since ERP management concept flourished and applied in Chinese enterprise when the implement of ERP is not optimistic in Chinese enterprise, especially in coal enterprise. 

Whatever your decision may be, it will help to remember that ancient Chinese proverb If you don t know where you are going, then any road will take you there A properly implemented and managed system safety program can provide an excellent roadmap to help individuals, organizations, and entire corporations find their way to a safe, productive, and profitable destination while ensuring the lowest possible level of acceptable risk with a maximum return on investment. 

Levi s, which has long been known as a sustainable business leader in its industry, says it s taken the Detox Pledge in China, responding proactively to yet another report, this one by live Chinese non-profits. Sustainable Apparel s Critical Blind Spot. It too lists Levi s as linked to environmental contamination through its supply chain in China... 

---