“It was the Tigers but now it is the Dragon”

Citation

Coultard, F. (2003), "“It was the Tigers but now it is the Dragon”", Circuit World, Vol. 29 No. 2. https://doi.org/10.1108/cw.2003.21729baf.001

“It was the Tigers but now it is the Dragon”

“It was the Tigers but now it is the Dragon”

Keywords: Intellect, PCB, China

The UK PCB Fabrication industry is now under threat from the inroads of PCB supplies with large volumes of products being pulled into this country from China. It is important to make some assessment of this threat. Before that is considered it seemed sensible to review something about the country, its background and its culture.

China has the largest population of any country in the world estimated to be at least 1.3 billion. Its land frontier is 12,400 miles in length, has a coastline of 8,700 miles and covers an area of 3.7 million square miles; this is one fourteenth of the total land mass area of the world. Of all the major countries it is surpassed in area only by Canada and Russia. It is almost as large as the whole of Europe. It is made up of 33 administrative units directly under central government.

Secrecy has long been a factor with regard to reports from China to the outside world and little information has been available in reality. For example, the 1976 earthquake in China, hardly noticed by the world killed more than 250,000 people and also 16 million Chinese died in the 1957-9 famine. Disasters on this scale would be world news promptly nowadays.

Den Xiaoping (b.1904-d.1997) who accompanied Mao Tse Tung on the Long March of 1934/5 and was of Tiananmen Square infamy was an important architect of the current stage of economic growth and expansion. In 1980 he introduced two important pieces of polices namely. The Statute of Joint Venture and The Commission for Foreign Investment. These two policy changes meant that foreign companies could start factories in China with Chinese partners – making almost anything – and that capital and technology could be easily transferred and that foreign loans could be negotiated. As crucial was the fact that business activities were decentralised, by-passing the bureaucracy, which insisted that all deals passed through ministries in Beijing. We are seeing the dramatic effect of this policy change right now. China’s open door policy spawned special economic zones. Special money was formed, Foreign Exchange Certificates. In these years of Chinese Miracles, Deng’s initiatives were not instant successes. Early 1990 saw almost zero growth but with nearly 3 per cent at the end compared to the more heady heights recently. A very good wage now is about 450 yuan per month (about $US 80). Sweatshops where people work till 11pm at night seven days a week earn far less (about half).

One has to understand the culture to get anywhere near being able to compete with the relentless pressure from this part of the world. The Chinese have grown up with regular upheaval and revolution. Nothing is certain. The Maoist lesson was one of self-reliance and survival and now this has a legacy of strong materialism. Many or most do not value life as we do. They are not on the whole religious or sentimental. They have an abhorrence of failure and are very aggressive; “elbows” are used a great deal. They work very hard knowing that they can be replaced. Cities erupt from very small villages fast, all the infrastructure and buildings being built at once. Hills are raised to the ground to fill in rice fields in agricultural areas to prepare for city building; always the pressure to get things done quickly. “The principle of diligence and frugality should be observed in everything”, Mao said but it hardly needs saying. Now with the age of swift material success no Chinese is derogatory about this but may be envious. Mao also decreed nine categories of enemy but that is history now.

Activity in China seems almost frantic as though people are fearful that the prizes already seen and viewed might be snatched from them. No doubt this is borne of the terrible sudden upheavals over the centuries.

This year China is expected to overtake the US as the world’s leading destination for foreign direct investment. Officials in Beijing predict a record of $55bn in investment inflows as multinationals scrabble to take advantage of the wave of market liberalisation that has flowed from China's accession to the World Trade Organisation last year.

There is much pressure within China for emigration because there is now much crime and corruption as with other states and the place is more unsafe. If emigration and expectations are thwarted or more political change occurs then there could be much chaos in China. If that results in discomfort for them it will be awful for the whole planet.

Now to the PCB threat with a glimpse of that backcloth. China is emerging as the new inevitable engine room and manufacturing base for the world. Investment in modern equipment and processes is impressive and relentless, many of the Chinese are very well educated and all are hungry to better themselves after so much tyranny and restraint in the recent past. The PCB capability is real and very professional with emphasis on all levels of technology and particularly on high yields and low or non- existent rejects. The Chinese hate failure or loss of face. There are many in the UK and Europe who have seen the benefit of this type of philosophy. There are some who bemoan this intrusion into our traditional markets but others realise that it has and will continue to happen. The best way is to assess it, benchmark it, learn to accommodate it and to capitalise on the service available, butting it to our own considerable ability. This is easy to say but more difficult to enact. PCIF/Intellect will assist any member all it can to take part in this process for the good of us all. There will be activities in the future programme to assist this cause. No-one gained by resisting Great Britain’s Industrial Revolution between 1760 and 1840. The main features of this were the use of new materials, new energy sources, improved systems of transportation, new machinery, new factory organisation together with political and social changes. China is experiencing all this now. We need our own revolution. Brain power, knowledge-based acitivities, energy and flexibility are amongst our best assets.

We have just come away from our well- attended conference in Cheltenham. Thanks to the high quality of the speakers and Chairmen and the exemplary organisation by the Intellect staff (and a special thanks to our own Claire Yarrow) the event was voted a great success and just what was needed at this difficult time.

The year 2003 will see another vigorous calendar of events and forums for Intellect Component and Manufacturing members and this of course includes our own PCIF faction. Already we are planning the next PCIF conference for October 15th, the ICT will have a stream of seminars throughout the year plus their own annual symposium set for May 14th, the EDRG have elected maturely to be somewhat independent arranging their own feisty programme and fostering key links with training. The Fabricator, EMS and Supplier PCIF Groups will have regular sessions about once per quarter, which is their wish. Business briefings on a variety of topics will feature (one is being planned right now for March 12th) as well as PCIF technical workshops. In short it is business as usual but with more vigour as we learn more about what members want and need. Do not be hesitant about telling us.

I wish you all well for the year 2003 and hope for the yearned-for upturn, which will lift our morale and give us all a boost. Most sincerely, I salute you all, who have laboured through the most difficult time ever experienced in this industry of ours.

Frank CoultardIntellect