The world is watching the huge potential of China. It has a huge and
growing middle class and reserves worth $1 Trillion
. The old saying
goes something like this… ”If China needed 1 billion refrigerators,
it would buy, one German fridge, one American fridge, one Russian
fridge and one French fridge…it would then copy all of them as
“Made in China” products”. The Chinese have huge “reengineering
factories”, where thousands of young graduates from universities break
down every latest foreign made product into small pieces and try to
assemble it back together with Chinese made parts. If sa 100% assembly
is not possible, the particular part is given to more experience
engineers to decipher, and design. This process continues ’till the
entire product has Chinese made products. It may take the Chinese a few
days, a few weeks, a few months or even a few years, but ultimately the
Chinese “Made in China” product emerges at a cheaper price. The Chinese
make the appropriate changes and then flood the market with products
that are cheaper in cost.
In the menatime, expereinced engineers are busy designing new innovative prodeucts based on the experience and market conditions.
This is exactly what has happened with Russian arms to China. A case in
point. China purchased kits to assemble 200 Su-27SK Russian fighters.
After assembling 105 planes, China canceled the deal. Many beleive that
China is manufacturing a fighter that is in effect a replica of the
Russian Sukhoi Su-27.
Russia has supplied China with weapons worth a total of more than
$25 billion for the past 15 years. Aircraft, ships and air defenses
account for the bulk of this sum. An aircraft engine that China is
trying to make is effectively a replica of Russia’s AL-31F though China
is assuring experts that it has designed the engine.