The China Price: The True Cost of Chinese Competitive Advantage

by Alexandra Harney Narrated by Karen White

Overview

To write The China Price, Alexandra Harney has penetrated further and deeper into China's enormous ecosystem of export-oriented industry than any outsider before her to uncover 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. The recent scandals about Chinese-made toys, tires, and toothpaste drive home a central tenet of this book: What happens in Chinese factories affects all of us, everywhere.



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 has infected the country, in which everyone is clamoring to get rich and corruption is rampant, it's almost impossible for the Chinese government's own underfunded regulatory mechanisms to do much good at all.



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 the factory jobs are 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 as 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.

Editorial Reviews

Publishers Weekly

Dreaded by competitors, "the China price" has become "the lowest price possible," the hallmark of China's incredibly cheap, ubiquitous manufacturers. Financial Timeseditor Harney explores the hidden price tag for China's economic juggernaut. It's a familiar but engrossing tale of Dickensian industrialization. Chinese factory hands work endless hours for miserable wages in dusty, sweltering workshops, slowly succumbing to occupational ailments or suddenly losing a limb to a machine. Coal-fired power plants spew pollutants into nearly unbreathable air. Migrants from the countryside, harassed by China's hukousystem of internal passports, form a readily exploitable labor pool with few legal protections. The system is fueled by Western investment and, Harney observes, hypocrisy. Retailers like Wal-Mart impose social responsibility codes on their Chinese suppliers, but refuse to pay the costs of raising labor standards; the result is a pervasive system of cheating through fake employment records and secret uninspected factories, to which Western companies turn a blind eye. But Harney also finds stirrings of change; aided by regional labor shortages, rising wages and intrepid activists. Chinese workers are demanding-and gradually winning-more rights. Packed with facts, figures and sympathetic portraits of Chinese workers and managers, Harney's is a perceptive take on the world's workshop. (Mar. 31)

Copyright 2007 Reed Business Information

The Financial Times Limited

Anyone running a company that outsources manufacturing to China, or is thinking of doing so, needs to read this book.
—Morgen Witzel

Kirkus Reviews

Financial Times reporter Harney paints a vivid portrait of factory life in the country that sells consumer goods for the lowest price possible. With a manufacturing workforce of 104 million people, China dominates global production of consumer goods, selling everything from clothing to computer parts at half or even one-fifth the amount that it would cost to make them in the United States. The author, who lives in Hong Kong, focuses on the consequences of China's ceaseless pursuit of economic growth, from unethical business practices to pollution to an epidemic of occupational diseases. Drawing on interviews, she takes us into factories and their dormitories to show youths who have flocked from the countryside to take dangerous manufacturing jobs. We meet 17-year-old Li Gang, who worked 18 hours a day, seven days a week to earn $39 monthly as a zagong ("dogsbody"), the lowest-ranking employee in a plastic-bag factory; and Li Luyuan, 20, who sleeps in cramped quarters with a dozen other girls, trying to save enough money from her job producing DVDs and sweaters to buy a new home for her parents. These migrants are taking legal action to win better working conditions, posing a challenge to efforts to maintain the China price. Harney brings us into model factories, where rules on working hours and product safety are followed, and into the "shadow" factories (often operated under contract to the same owners) where anything goes in the drive to produce cheaper products. Despite efforts by companies buying consumer goods from China to enforce a code of conduct, most suppliers falsify time cards, hide the use of unapproved materials and otherwise engage in dishonest practices. Western importersknow it and often look the other way. In the face of growing labor unrest and pollution, Chinese officials hope to move the economy away from reliance on exports by fostering domestic consumption. Essential reading for anyone concerned about how dangerous pet food and children's clothing manufactured in China make it into American stores.

From the Publisher

"Presents the inconvenient truths about China and globalization that flat worlders have overlooked."
-Clyde Prestowitz, author of Three Billion New Capitalists

"Anyone running a company that outsources manufacturing to China, or is thinking of doing so, needs to read this book."
-Financial Times

"The gritty, corrupt reality of the Chinese economic miracle is the great business story of our time and Alexandra Harney has got it."
-Karl Taro Greenfeld, author of China Syndrome

NOVEMBER 2008 - AudioFile

The phrase "China price" refers to how much it would cost to make something in China. But this book goes beyond that and explores the price China itself pays for its rapid industrialization as well as the price the rest of the world pays. The book is almost scholarly in tone and syntax. This style poses a problem for the narrator and the listener. The narrator can't introduce artifice simply to entertain the listener, so there is the risk of sounding dull. At the same time, the complexity of some of the material requires concentration by the listener. It’s easy for casual listeners to miss salient points. By and large, Karen White overcomes this problem, but listeners will still need to pay careful attention. R.C.G. © AudioFile 2008, Portland, Maine

Product Details

BN ID:	2940170663644
Publisher:	Tantor Audio
Publication date:	04/15/2008
Edition description:	Unabridged

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