Best Business Cell Phone, Made In China ?

Edwards Finance > Phones

Q. "All of the cell phone makers are moving to China, and we have to follow our customers," explains Melvin W. Boldt, BMI's founder, chairman and CEO. Indeed, both of his company's two largest customers, whom Boldt declines to name, have in effect told BMI that if it wants to continue doing business with them, BMI, too, must be manufacturing in China. 'Best Business Climate'

A. It's difficult to exaggerate the dynamism that surrounds the investments in production facilities that U.S. and other foreign manufacturers are making in the People's Republic. Some, like BMI's, are small -- or modest. Others are big and bold. For example, BASF-YPC Co. Ltd., a 50-50 joint venture between Germany's BASF Group and China's SINOPEC, is building a US$2.9 billion petrochemical complex in Nanjing that's slated to come online in 2005. "Right now, [China is] probably the best business climate in the world," states BMI's Boldt. And the near future looks fine as well. For instance, within two to five years, Boldt's company calculates, 60% to 70% of all the world's cell-phone handsets will be manufactured in China. Particularly along the coastal arc of enterprise that starts in Shanghai and swings southwestward to Guandong province, "you can visit companies where you would not see a difference in terms of quality and productivity" from the best plants in other places of the world, emphasizes Pedro Nueno, a professor at the University of Navarra's IESE Business School in Barcelona. An example is Motorola Inc.'s mobile-phone plant in Tianjin, near Shanghai. It's turning out products "that can be sold anywhere in the world," reports Nueno, who also teaches at the China-Europe International Business School in Shanghai.

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