Tuesday, March 11, 2008

Chinese to Japanese: No More Cheap MICs

This is something new to me, export of food and foodstuff from China to Japan was down, even before the now notorious dumplings.

For example, peanuts from Shandong Province, a place called by much as "Japanese's food basket", (I contributed partly to that, too, as I was importing meat products from Shandong at a pace of one container per month), has stopped going to Japan even from last summer, at least half year before the pesticide containing dumplings were found.

The reason is that Chinese side has strengthened inspection system, and one victim is the Japanese snakes makers, espcially mid to small ones, who used to rely heavily on cheap Made in Chinas, now they are facing mounting pressure to survive. Turning to domestic peanuts is out of question, because the sky high cost is unbearable for many, and prices kept going higher as more and more demand for domestic ones.

I am not totally surprised, as Chinese economy is now a part of the global economy, with everything goes up and labor costs jump, the Chinese are becoming more aware of the markets outside of Japan.

Getting to the bottom of both the dumplings and the peanuts, is a clash of a fast rising and changing China with a changing as well but not quite catching up Japan, without a comprehensive overhaul of the current dealing, I will not surprised to see that one day more Chinese products look elsewhere for markets.

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