Economics Essays on Who is Afraid of China?

Who is Afraid of China?

            In the current phase of industrial revolution, Chinese technological endeavor has been rated as expanding three times the rate of its predecessors. While China has been ranked as the leading manufacturing nation of the world, it has proven to create a huge trade-related imbalance with the US among other developed economies. This is particularly attributed by the widely adopted culture of innovation, inventiveness and commercial spirit that gives China a head start.

Who is afraid of China?

            Although China has proven to be a rapidly emerging technology giant that has continued to pose significant threats to technology manufacturers, Dell may not be among the various companies that are Afraid of the emerging giant. While most Chinese companies are thought to take certain historic shortcuts to perpetuate an earlier realization of their set goals, Dell sticks to a well calculated strategy that will not only perpetuate its current profitability, but which will enhance future success as a world leader in technology-based manufacturing industry. Dell’s strategy for enhancing its level of competitiveness includes saving available resources to ensure that production cost is significantly reduced, and this has proven to be an effective strategy that may not be released by rival companies. The company executives for example maintain a close supervision of the assembly process to ensure that production teams do not waste time and resources that could be used to develop an extra unit.

The company equally evaluates the level of workers’ performance to ensure that only the most productive and efficient employees with a particular set of special talents are retained in the company. Dell has equally adopted a unique strategy that sets it apart from the global trend while on the other hand setting the standard that every technology manufacturer seeking to be successful should adopt. While everybody, including Chinese technology manufacturers relies on outsourcing, Dell has spent over two decades strategizing on how it can effectively exploit its human and capital resources to create a wide range of products. This has enabled the company to figure out how it can create high quality products at a significantly reduced price, which may not be the case with most technology manufacturers including Chinese companies. Dell has further vowed to increase its manufacturing presence in America, which has proven to be more efficient as it brings products closer to the customers.

This indicates that most Chinese technology manufacturers that include the renowned Lenovo Company may not be able to compete with Dell, especially because they cannot meet individualized customers’ demands. This is due to the fact that such companies seek to expand their manufacturing presence outside China, which inhibits their ability to significantly reduce production cost as well as meet certain customers’ demands. Dell does not operate any warehouses, which eliminates possible limitations that may be attributed by constant changes in technology. This means that the company can keep up with the pace of changes in technology as it would be able to purchase raw materials that are bound to be relevant at a certain time to satisfy customers’ demands.

            Suppliers may however be afraid of China, particularly because the wake of rapidly changing technology demands that they have to keep with the pace at which Dell is expanding. Dell does not take possession of any production component as it requires “just-in-time” delivery of raw materials. This indicates that suppliers have to maintain readily available raw materials to ensure timely delivery as Dell demands to work with efficient suppliers that can provide materials that are suitable for a given time. On this note, constant shift in technology as perpetuated by Chinese technology manufacturers can attribute to huge losses among Dell’s suppliers as they have to constantly dispose components that may be passed by time as technology changes.


            There is adequate evidence that Dell is not afraid of China as it has established an effective strategy that will enable it to remain competitive in technology manufacturing industry. The company’s strategy revolves around limiting the amount of resources wasted, expanding its manufacturing presence in America, depending on its human and capital resources rather than outsources as well as adopting “just-in-time” production strategy rather than operating warehouses. Suppliers may however be afraid of China especially because Dell does not possess any components, which instills the cost of disposing components that are passed by technology on suppliers.