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Big Suppliers in Greater China Blog

Quote: “More speculatively, if the current trends continue, the giant contractors may come to challenge the power of all but the biggest buyers they serve.”

Comment: Appelbaum argues that in the last decade two trends have emerged in China’s industry.  One is the increase in giant retailers and the second is the increase in large factory contractors who serve the retailers.  These smaller businesses may grow and one day compete against the bigger businesses that they once served for.  Appelbaum uses Wal-Mart as an example of giant factories that are global suppliers who developed unexpectedly into success.

Question: In chapter four, what does Appelbaum mean by, if the trends continue they will affect the governance structure of global supply chains?  Would it have a negative or positive impact on the Chinese government?

~ by ascutari on .

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