MaFei International trading company

14/01/2022

11/02/2021

𝙈𝘼𝙁𝙀𝙄 𝙄𝙉𝙏𝙀𝙍𝙉𝘼𝙏𝙄𝙊𝙉𝘼𝙇 𝙏𝙍𝘼𝘿𝙄𝙉𝙂 𝘾𝙊𝙈𝙋𝘼𝙉𝙔 𝙒𝙄𝙎𝙃𝙄𝙉𝙂 𝙔𝙊𝙐 𝙃𝘼𝙋𝙋𝙔 𝘾𝙃𝙄𝙉𝙀𝙎𝙀 𝙉𝙀𝙒 𝙔𝙀𝘼𝙍 🇨🇳🧧𝙮𝙚𝙖𝙧 𝙤𝙛 𝙊𝙓 🐂

31/01/2021

Holiday Notice: Pls kindly note our China office will be closed between 1st Feb to 29th Feb.
On account of Chinese New Year. we will resume work on 1st of March .
Our India office will be working as usual

Regards
Team
Mafei International Trading Company.
Yiwu, China.
Coimbatore,India.

10/09/2020

Quality inspection and container loading to Kuwait

29/06/2020

How to win China? Sorry it is not the way you want to......
—————-

*The Chinese Dragon*
by Rajiv Bajaj (MD, Bajaj Auto)

A couple of WhatsApp group that I am a member of should be renamed China problem group. 90% of discussions is on how China hijacked the world economy and how they do not deserve to do so and how all politicians have let us down and how they are stealing all intellectual property and how we are doomed if we do not stop downloading tiktok.

All true. And no, this article is not about disagreeing with this narrative. This article is not about the fact that an average Chinese student in US beats the s**t of all other students (including Indians) in terms of hours she works and the only disadvantage she has is that her English is not good enough, but she is getting there. No this article is not about the fact that the people of China worked their butts out while Italians holidayed and French wanted a 4 day week. No this article is not about the fact that you cannot hire a decent machinist or a forger in India because all of them are sitting in call centers answering questions from technically challenged Americans. Of course, I agree and support the view that China and it’s people do not deserve the place they have reached (I don’t want to be trolled). They are thieves, they do not take 4-week holidays. They should be punished.

So what is this article about? This is about an industry where China has been beaten by India. It has been shown that it’s not the government, neither the people, it’s really the companies that compete. And as far as India is concerned the people responsible for the demise of manufacturing are these companies.

Year 1983, I pass out of Engineering college in Mumbai considered to be one of the best. Irrespective of the branch that you have studied—Mechanical, Electrical, Civil, Production, Textile, 80% become coders for the software industry. Year 2000, I am at Bajaj Auto as HR head (after working for 15 years as a technical person), and am off to conduct campus interviews, to hire 100 Engineers who will build the 100-cc engine of a motorcycle. I am day 5 in VJTI and all other RECs. I end up hiring 10 people from 15 colleges. In every college I am told by the Training and Placement officer (TPO) that technology companies get preference. I say I don’t understand, is building an Engine not technology? No that’s manufacturing. Writing Cobal code for a bank in New York by a TCS employee is technology. May be the Chinese forced us to do this.

Next year I write to all colleges. I want to be day 0 in your campus. I will give three times salary of the best “so called technology company”, but only if I am day 0. Hiring 100 Engineers at three times salary was no problem for me as compared to TCS, which had to hire 2000 “Bodies”. They could never match that salary.
And that’s how Bajaj Auto built its R&D. Batch by Batch. Making designing and manufacturing of motorcycles sexy and paying for it. The selection ratio was 1:15. Most of the IITS, RECS, and VJTIS had toppers who were absolutely useless. They could not draw a Carnot cycle, could not tell the difference between a diesel and petrol engine. Give them an elevation and plan they could not draw the side view. Most of them were focusing on writing code. But we found gems, we found guys who were passionate and knowledgeable but could not express in English. I started conducting interviews in Hindi, Marathi, Telugu, Tamil and so on.

There was another company doing the same TVS. South based they also built a great R&D.

Year 2005, Chinese motorcycles attacked India with products which were 30% cheaper. Many dealers started selling them. Press predicted demise of Indian manufacturers. Within 6 months they went broke. Their quality was no match to Indian motorcycles. They never came back again.

Bajaj then stared attacking them in Africa. Africans had two choices; buy expensive Japanese motorcycles or cheap Chinese. Chinese motorcycles used to come in a box. You buy the box and take it to a mechanic and he will assemble it. In Nigeria motorcycles are used as taxis. So no one is going to pay you a dime more. In such a market Bajaj launched it’s fully assembled motorcycle. Priced more than Chinese less than Japanese. And worked hard. Today Bajaj is a market leader. TVS is number two. Chinese have been driven out. You can see videos of the love that the Okada (taxi drivers) have for Bajaj Bikes. Country by
Country in Africa, in South America Indians captured the market driving the Chinese out.
In 2018 India became the largest manufacturer of two wheelers in the world (twice the size of China).

Indian companies have started buying out European Brands. The market leader of motorcycles in Europe is not BMW, its KTM owned by Bajaj. China is slipping fast not only in the manufacturing of Bikes also in the manufacturing of components. Indian suppliers are beating them hands down. Between three Indian Companies Hero, Bajaj and TVS India today dominates the world market. Honda a Japanese company has shifted most of it’s R&D to India.

Why was this not done in TVs, in Computers, in Mobile phones, in Pharmaceuticals and other industries? The same country, the same labor laws, the same infrastructure but not the same entrepreneurs. Indian businessmen are characterized by a myopic vison—it’s both short term as well as geographically limited. Of course, the government also does not help. So, who is responsible for the Chinese dominance—the government, the people or the Corporates?

I think its all the three.

When even ITI trained turners and fitters refuse to work in a shop floor, when a Stock Broker is paid more than an Engineer, when typing code is mistaken for technology, when governments refuse to amend antique labor and land laws when corporates think local and not global and finally when you, yes you, will not send your son to work on the shop floor, each one of this factor is as responsible for the Chinese dominance as much as their “Ethical Corruption” We have been looted because we left our doors and windows open.

No this article is not supporting the Chinese. How dare they work so hard? And how dare they obey a communist government? We should stop buying all their goods and we will make every thing in our country. But we will work nine to five with a three- day weekend. We will overcome. One Day!!

10/06/2020

25% of all Indian imports are from China.
2% of all Chinese exports are to India.

That in a nutshell should explain why boycotting Chinese products will impact India more than it will impact China.

The sentiment has my respect. Our soldiers are dealing with Chinese bullying in Ladakh and as citizens who love this nation, we want to do our part. But emotions have rarely translated to hard impact. We need to see the facts.

We import all these items from China: Essential pharmaceutical drugs that help us make antibiotics, and medicines for tuberculosis, textiles, solar products, computers, phones, fertilizers, machines, electronics, gems, all the items that our industries depend on.

Chinese technology investors have put in an estimated $4 billion into Indian startups. According to the report, 18 of India’s 30 unicorns are now Chinese-funded. Apart from Paytm, Ola, BigBasket, top Indian tech companies that have Chinese investors include Byju’s, MakeMyTrip, Zomato and Swiggy.

Chinese phones and apps are now household names. Chinese phones have 53% of the Indian smartphone under them with leading brands like Xiaomi, One Plus, Oppo and Vivo used by millions of Indians in both urban and rural places.

Chinese apps like TikTok, PUBG, Xender, UC Browser, LIKEE and CamScanner are also used on a daily basis.

With that heavy dependence, going from the status quo to using no Chinese goods will be a drastic step that has to be padded with alternatives.

Thus rather than jumping straight into "How" can we boycott Chinese goods, a more beneficial perspective will be to ponder "Why" did we end up in such a heavy China-dependent situation.

China wasn't all that rich but from 1991 to 2011, there were just 2 years when their growth rate fell below 8%. The consistent growth for 25 years compounded making their economy grow by 700%!

During the period between 1991 and 2011, China’s working population increased to 782.6 million from 648 million. That is a growth of about 6.6 million a year. However, between 2005 and 2011, China’s worker population grew by only 16 million, and between 2011 and 2017 it grew by a much smaller number of just 4 million.

With a growing surplus of wealth and lowering working population, China is getting nudged towards a exports driven economy.

There is another reason why China is a success in India. They are just like us! Not physically but culturally and economically, they understand us. India to them is what they were a decade before and so they have the advantage of knowing where we are going.

India’s per capita today is the same as China’s per capita 12 years ago. Korea was at the same level 36 years ago, and Japan 48 years ago. It is not that the other Asian rivals don’t understand the Indian consumer; it is just that it is much easier for the Chinese because they have sold to a similar market in the recent past.

The spending boom, the technology boom. Competition with limited understanding of the market, the need for scale, low cost of capital, and so on. The Indian market is similar to how theirs was a few years ago.

Many of the engagement models that worked in China also work in India – Deep discounts, micro-payments, freebies, fake accounts, sexually suggestive content.

India’s large population fits nicely into Chinese companies’ large-scale mindset.

The Indian market requires a high degree of flexibility in changing business models and the Chinese are quite adept culturally to change as per needs. They are also quite humble and self-deprecating and rarely talk ill of their rivals. This makes them a much more open mind to adapt to change.

The Chinese take a deep interest in understanding people, their behavior, their psyche, which Indians are usually bad at. They have understood our rural market better than our Indian leaders, their motivations, their desires, their limitations, this is a fundamental reason they can build like we cannot.

Battling China is like battling the future version of ourselves. The only way we can stand up to them is to go ahead faster, improve our own manufacturing industry, get more people skilled, improve our entrepreneurship opportunities, and yes, also learn from the Chinese success story. If they can why can we not?

A reason the boycott movement is being critiqued is that it is making us feel that countering China is as easy as uninstalling few apps from our Chinese phones. No, the long term solution is hard. Rather than being reactionary, we will have to fix our institutional problems as China did.

Sources:
https://yourstory.com/journal/how-made-in-china-became-one-of-indias-most-recogn-sgshhp67l1
https://www.prsindia.org/report-summaries/impact-chinese-goods-indian-industry
https://www.livemint.com/news/india/china-fdi-constraints-may-put-tech-startups-in-a-spot-11587317637614.html