$24.95 USA / $29.95 CAN — continued from front fl ap — up-close look at the rough-and-tumble environment in which so many of our consumer products are being made. It was an upside-down world in which manu- facturers thought nothing of manipulating Poorly Made in China is the tale of a modern-day product quality in order to save pennies, gold rush and its consequences, the chronicle of a where previously savvy foreign business lead- rising economic power and its path along a steep ers were taken for a ride by their partners, where growth curve. Entertaining and enlightening, the entire manufacturing facilities sometimes van- “ This fast-paced travelogue through the world of Chinese manufacturing is scary, book reveals the extent to which culture affects ished into thin air. Welcome to Poorly Made in China! fascinating, and very funny. Midler is not only a knowledgeable guide to the invisible business dealings, and ultimately suggests that we may have more to be concerned with than underbelly of the global economy, he is a sympathetic and astute observer of China, When he arrived in South China as a recently product failures alone. its challenges, and its people. A great read.” minted, Mandarin-speaking Wharton MBA at —PIETRA RIVOLI, author of The Travels of a T-Shirt in the Global Economy the height of the boom in export manufacturing, Paul Midler was sought out by a number of “P aul Midler takes us for a ride through the fastest-growing economy in the world, foreign companies—from American importers of revealing what can—and sometimes does—go wrong when U.S. companies shift discount soap and shampoo to Belgian diamond PAUL MIDLER graduated from college in 1992 production to China. Working in the heart of China’s export hub, in the country’s merchants to New York waste paper recyclers— with a concentration in Chinese history and all looking for help in the new economy. The southern region, he has the advantage of a front-row seat to the no-holds-barred language. After working for a number of years adventures came fast, as did the business and games played between manufacturers and importers. He introduces us to a cast of in China, he returned to the United States to cultural lessons. complete a master’s in business administration real-life characters and tells his story with a mix of affection and skepticism for at the Wharton School of the University of what is taking place in China today. Midler delivers a revealing and often funny Poorly Made in China is a dramatic romp through Pennsylvania. In the course of his manufacturing tale of life and commerce in a country whose exports touch nearly everyone on China’s export manufacturing sector. The story career, Midler has assisted dozens of American the planet.” follows Midler from one project to the next, and European companies and has worked with — SARA BONGIORNI, author of A Year Without ‘Made in China’: revealing business and cultural challenges and hundreds of factories in China. One Family’s True Life Adventure in the Global Economy exposing the dangerous cat-and-mouse games that take place between Chinese companies and JACKET DESIGN: PAUL McCARTHY their foreign counterparts. An engaging business narrative told with humor and insight, this true story pulls back the curtain on the rising Chinese economy, providing an — continued on b ack fl ap — P1:OTA/XYZ P2:ABC fm JWBT075/Midler March29,2009 13:51 PrinterName:CourierWestford,Westford,MA ii P1:OTA/XYZ P2:ABC fm JWBT075/Midler March29,2009 13:51 PrinterName:CourierWestford,Westford,MA POORLY MADE IN CHIN A i P1:OTA/XYZ P2:ABC fm JWBT075/Midler March29,2009 13:51 PrinterName:CourierWestford,Westford,MA ii P1:OTA/XYZ P2:ABC fm JWBT075/Midler March29,2009 13:51 PrinterName:CourierWestford,Westford,MA P O O R L Y M A D E I N C H I N A AN INSIDER’S ACCOUNT OF THE TACTICS BEHIND CHINA’S PRODUCTION GAME PAUL MIDLER John Wiley & Sons, Inc. iii P1:OTA/XYZ P2:ABC fm JWBT075/Midler March29,2009 13:51 PrinterName:CourierWestford,Westford,MA Copyright(cid:1)C 2009byPaulMidler.Allrightsreserved. PublishedbyJohnWiley&Sons,Inc.,Hoboken,NewJersey. PublishedsimultaneouslyinCanada. 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LimitofLiability/DisclaimerofWarranty:Whilethepublisherandauthorhaveusedtheir besteffortsinpreparingthisbook,theymakenorepresentationsorwarrantieswithrespect totheaccuracyorcompletenessofthecontentsofthisbookandspecificallydisclaimany impliedwarrantiesofmerchantabilityorfitnessforaparticularpurpose.Nowarrantymaybe createdorextendedbysalesrepresentativesorwrittensalesmaterials.Theadviceand strategiescontainedhereinmaynotbesuitableforyoursituation.Youshouldconsultwitha professionalwhereappropriate.Neitherthepublishernorauthorshallbeliableforanylossof profitoranyothercommercialdamages,includingbutnotlimitedtospecial,incidental, consequential,orotherdamages. Forgeneralinformationonourotherproductsandservicesorfortechnicalsupport,please contactourCustomerCareDepartmentwithintheUnitedStatesat(800)762-2974,outside theUnitedStatesat(317)572-3993orfax(317)572-4002. Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappearsin printmaynotbeavailableinelectronicbooks.FormoreinformationaboutWileyproducts, visitourwebsiteatwww.wiley.com. LibraryofCongressCataloging-in-PublicationData: Midler,Paul,1968– PoorlymadeinChina:aninsider’saccountofthetacticsbehindChina’sproduction game/byPaulMidler. p.cm. ISBN978-0-470-40558-1(cloth) 1.Manufactures–China. 2.Workenvironment–China. 3.China–Economic conditions–2000– I.Title. HD9736.C62M532009 338.4(cid:2)7670951–dc22 2008054907 PrintedintheUnitedStatesofAmerica. 10 9 8 7 6 5 4 3 2 1 iv P1:OTA/XYZ P2:ABC fm JWBT075/Midler March29,2009 13:51 PrinterName:CourierWestford,Westford,MA Itisbettertoknowsomeofthequestionsthanalloftheanswers. —JamesThurber Allwarisbasedondeception:Whenabletoattack,wemustpretend to be incapable; When employing forces, we must seem inactive; When we are near, we must make the enemy believe we are far; Offerbaittolurehim;Ifheappearshumble,makehimarrogant;If he is rested, wear him down; If his forces are united, divide them; Takeactionwhenitisunexpected. —Sunzi(thestrategistformerlyknownasSunTzu) The first condition of right thought is right sensation—the first conditionofunderstandingaforeigncountryistosmellit. —T.S.Eliot v P1:OTA/XYZ P2:ABC fm JWBT075/Midler March29,2009 13:51 PrinterName:CourierWestford,Westford,MA vi P1:OTA/XYZ P2:ABC fm JWBT075/Midler March29,2009 13:51 PrinterName:CourierWestford,Westford,MA CONTENTS Chapter 1 Vanishing Act 1 Chapter 2 Trouble Is My Business 8 Chapter 3 “All We Need Is Your Sample” 16 Chapter 4 Vice President of Disadvantaged Neighborhoods 26 Chapter 5 “I Do Now” 38 Chapter 6 Lurid Carnival of Global Commerce 50 Chapter 7 And That’s a Good Thing 68 Chapter 8 Grains of Toil 77 Chapter 9 The China Game 86 Chapter 10 The Seven Steps of Problem Solving 99 Chapter 11 Counterfeit Culture 107 Chapter 12 No Animal Testing 123 Chapter 13 Joint Venture Panacea 129 Chapter 14 Take the Long Way Home 137 Chapter 15 Lucky Diamonds 146 Chapter 16 Trophy Trash 158 Chapter 17 “You Heard Me Wrong” 171 vii P1:OTA/XYZ P2:ABC fm JWBT075/Midler March29,2009 13:51 PrinterName:CourierWestford,Westford,MA viii Contents Chapter 18 “Price Go Up!” 179 Chapter 19 You Wouldn’t Want to Be There 195 Chapter 20 Of Course, You Would Think So 207 Chapter 21 The New Factory 215 Chapter 22 Profit Zero 227 Acknowledgments 241
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