Sapsford gets most of it right, but it should be noted that Samsung, LG and others have some fabulously good tech of their own, and that the Chinese manufacturers are catching up fast.
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True.
It seems that S. Korean firms such as LG have engineered their own version of this Nagoya 'manufacturing upscale' approach by focusing on highly sophisticated consumer goods (for ex. nearly wafer thin displays and multi-fuction handheld computing devices - many of these products never reach the US market) instead of more basic goods.
There is an interesting subtext to this: these maneuvers appear designed to resurrect, preserve and enhance profitability via a heavy emphasis on well designed luxury goods.
As long as Chinese manufacturing relies -- mostly -- on fulfilling orders for less complex items this is a useful strategy. But once they enter that market in a profound way, as many think they're poised to do, the profits Nagoya based Japanese firms are enjoying from moving 'up the food chain' may very well begin to recede.
.d.