The China Price: The True Cost of Chinese Competitive Advantage | 
 enlarge | Author: Alexandra Harney
Publisher: Penguin Press HC, The
Category: Book
List Price: $25.95
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Avg. Customer Rating:  6 reviews
Sales Rank: 23968
Media: Hardcover
Number Of Items: 1
Pages: 352
Shipping Weight (lbs): 1.2
Dimensions (in): 9.1 x 6 x 1.3
ISBN: 1594201579
Dewey Decimal Number: 337.51
EAN: 9781594201578
ASIN: 1594201579
Publication Date: March 27, 2008
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Condition: BRAND NEW. An unopened, unread edition direct from publisher. Crisp, tight, perfect text. Flawless dustjacket. NOT a Remainder-Overstock! NO Markings! Check differences before buying!
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Product Description
A landmark eyewitness expos of how China's factory economy competes for Western business by selling out its workers, its environment, and its future
In The China Price, acclaimed Financial Times correspondent Alex Harney uncovers the truth about how China is able to offer such amazingly low prices to the rest of the world. What she has discovered is a brutal, Hobbesian world in which intense pricing pressure from Western companies combines with ubiquitous corruption and a lack of transparency to exact an unseen and unconscionable toll in human misery and environmental damage.
In a way, Harney shows, what goes on in China is inevitable. In a country with almost no transparency, where graft is institutionalized and workers have little recourse to the rule of law, incentives to lie about business practices vastly outweigh incentives to tell the truth. Harney reveals that despite a decade of monitoring factories, outsiders all too often have no idea of the conditions under which goods from China are made. She exposes the widespread practice of using a dummy or model factory as a company's false window out to the world, concealing a vast number of illegal factories operating completely off the books. Some Western companies are better than others about sniffing out such deception, but too many are perfectly happy to embrace plausible deniability as long as the prices remain so low. And in the gold-rush atmosphere that's infected the country, in which everyone is clamoring to get rich at once and corruption is rampant, it's almost impossible for the Chinese government's own underfunded regulatory mechanisms to do much good at all.
But perhaps the most important revelation in The China Price is how fast change is coming, one way or another. A generation of Chinese flocked from the rural interior of the country to its coastline, where its factory work largely is, in the largest mass migration in human history. But that migration has slowed dramatically, in no small part because of widespread disenchantment with the way of life the factories offer. As pollution in China's industrial cities worsens and their infrastructure buckles, and grassroots activism for more legal recourse grows, pressures are mounting on the system that will not dissipate without profound change. Managing the violence of that change is the greatest challenge China faces in the near future, and managing its impact on the world economy is the challenge that faces us all.
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| Customer Reviews: Read 1 more reviews...
 Should be read May 8, 2008
0 out of 1 found this review helpful
I just finished reading the book here in Hong Kong (of course, it's not available on the mainland.) An aspect of the reporting I really admired was the author's obvious efforts at objectivity and even handedness. I've lived in China off and on for nearly 7 years, and can say without any doubt that many or even most Chinese people are really very nice, with compassion and human feelings. On the issue of corruption, yes it's rampant in China and extends into every activity. But, the Chinese are doing pretty much what any of us would do in similar circumstances, at least I think so. It's easy for us to condemn China sometimes, but on the other hand we didn't have to exist in this reality, and it's almost impossible to place ourselves in their shoes. My biggest gripe against China--the biggest threat it represents to the world and to its own people, and something I don't feel was discussed adequately in the book, is that the government of China has created a truly FASCIST STATE, and their efforts at reinforcment are getting stronger and more desperate. The wonderful, deep Confucian influences manifested through Chinese civilization were leveraged and transformed by Mao and his successors into a twisted form of Orwellian mind control. In China today, people are free to hold any opinion they choose as long as it's the opinion they are told to have. Promotion of nationalistic fervor in China through the education system and media equals or maybe even exceeds previous efforts of Nazi Germany, Imperial Japan or Peronist Argentina. It's a scary place.
Good contribution to the China debate May 6, 2008
3 out of 3 found this review helpful
It's simply impossible to keep track of all the China-related books that come out these days. I mean, they're all over the place. I have a strong interest, both personally and professionally, and I try and read what I can, but quite a few of the recently released books seem to rehash the by now well-known theme of China as a manufacturing powerhouse and the correlating threat China may (or may not) pose internationally. This book, however, takes a slightly different take on things.
In "The China Price: The True Cost of Chinese Competitive Advantage" (336 pages), former Finantical Times journalist Alexandra Harney delves into the ramifications, primarily for the Chinese, of the ever-growing demand for cheaper products. Harney focuses her research primarily on Shenshen (a city that has grown from half a million to about 12 million in a matter of 2 decades) and the surrounding Guangdong province. Harney demonstrates how a lot of Chinese companies escape the "social audits" many American companies nowadays insist on simply by keeping parallel/fake records on hours worked by/wages paid to Chinese employees. Indeed, the plight of many Chinese workers is deplorable, and not helped by the weak (if that) enforcement of Chinese labor laws by the Chinese government, and the absence of a strong labor union in China. How ironic is that, China being a (so-called) Communist country. Harney spices the book with lots and lots of personal stories of Chinese individuals she interviewed for the book, and that makes it for even more interesting reading.
Harney ends her book with this great observation: "In the end, as much as the responsability seems to lie with Beijing, it also lies with the global consumer. Our appetite for the $30 DVD player and the $3 T-shirt helps keep jewelry factories filled with dust, illegal mines open and 16-year olds working past midnight." How true! And doesn't it strike you that the people who shop at, say, Wal-Mart every day are the very same people who tend to lament the fact that US manufacturing jobs are off-shored to China every day. We all make a choice, every single day.
The other side of cheap imported goods from China May 4, 2008
This is an important book, for anyone who cares, about what exactly is going on in China regarding all those off shored jobs that are adding to US companies bottom lines.
Imagine a pay scale and working conditions around the turn of the century in the US, with no EPA, OSHA, enforceable work rules and I think you get the picture of what is going on in China today. All the parties involved-- Chinese workers, manufacturers, US Importers and the like--all benefit to some differing degree at least in the short term. The workers get some income, the manufacturers get cash flow and US importers get more margin--for a while.
Then the workers come down with all types of god-awful diseases because they work in terrible conditions, the manufacturers get caught in the never ending demand of pressure to reduce costs and the importers end up--in some cases--getting more than they bargaining for (menu foods,heparin).
It's not a pretty picture. The present short term benefits to consumer and Chinese workers seem destined to change dramatically in the not too distant future--balance of payments with China creating major problems with the US and the Chinese workers will eventually get tired not getting their share of the wealth.
The book zeros in on what's going on; I'd have appreciated a bit more forecasting on where this might end up.
 What's behind our consumer goods April 29, 2008
1 out of 2 found this review helpful
This book blends the underlying forces of globalization and economics with the touching anecdotes of Chinese workers. The writer does not come off as protectionist or alarmist (indeed, she suggests manufacturing will move from China as labor prices rise), but she does issue an important call to consumers that we should be more aware of our global supply chain. Fascinating trivia as well discussion where many of our favorite products come from.
Interesting and Objective! April 29, 2008
2 out of 2 found this review helpful
China's share of the world's manufacturing output by value-added was 2.4% in 1990, and 12.1% in 2006. In 2006 its biggest exports to the U.S. were electronic machines and equipment; that year the U.S. imported $288 billion from China, vs. $55 billion exported. The Economic Policy Institute estimates a loss of 1.8 million job opportunities since 1981 as a result of this trade deficit with China. Meanwhile, direct foreign investment in China from 2002-2005 totaled almost another $250 billion that didn't go to the U.S. either.
In 1980, American manufacturers produced 70% of apparel purchased in the U.S.; by 1990 it was down to 50%, and only 9% by 2006. America now only produces 1% of its citizens shoes; etc. for numerous other products.
"The China Price" points out that there is intense competition within China - its coastal export regions have over 1,000 clusters producing specific products such as ties, socks, microwaves, etc., and within those clusters manufacturers have hundreds of direct competitors. This is due to ease of entry - available start-up funds and assistance from Chinese officials eager to increase employment.
Chinese law limits overtime hours, requires a number of worker protections. Unfortunately, inspectors are typically overloaded, often corrupt, and frequently deceived by managers hiding factories that don't adhere to the rules. (These managers have also learned to deceive inspectors from American companies seeking to verify compliance with humane employment conditions.) At the same time, many workers will not stay if they don't get enough overtime to make the incomes they desire ("I didn't come here to sit!"), and fear of investing in government-mandated pension plans due to restrictions on their coverage.
And then there is the obvious pollution, especially from coal (producing a greater proportion of electricity than in the U.S.), and liquid effluents.
China's government is under enormous pressure from its citizens to provide jobs, particularly after the state-supplied sinecures have largely been eliminated. This, combined with even lower costs available in other nations (eg. Vietnam, India) do not bode well for America's "China problem" going away easily. (Common sens, plus Economic 101 tell us that it will continue until wage costs in China etc. roughly equal those in the U.S. In turn, that means we can look forward to eg. workers sleeping 12 to a room in factory-provided housing, and much reduced access to pensions and health-care - unless trade restrictions are imposed.)
The "bad news" about "The China Price" is that it often offers questionable or impossible statistics - eg. ". . . saved 80% to 100% . . ." (impossible to cut costs 100% - unless the product is delivered scot-free), "nearly one-third of the air over L.A. and S.F. can be linked to Asia" (what does that mean?) that damage the credibility of the book.
Bottom Line: "The China Price" explains why they are so price-conscious, and warns us that they're next move is likely to be into R&D, branding, and U.S. marketing (the "soft three" dollars of every four dollars spent in the U.S. for Chinese-manufactured products).
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