> 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.
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Also, it would appear that even as Chinese and other Asian firms begin
encroaching at the high end, there is stilll the same imperative as
elsewhere to keep outsourcing manufacturing to China and other low-cost
producers after initial product development in Japan. Eg. although Toyota's
"premium Lexus vehicles, and its popular Prius model and other hybrids that
use both gasoline and electricity, are made only in Japan...it has grown
comfortable enough mass-producing the Lexus and the hybrids that it is
planning to slowly roll out production overseas", and "All told, 87% of
Brother merchandise is made abroad".