Both Sarah Lacy and the New York Times covered the story of Apple iPhone manufacturing in China. The short of it is simple: companies don’t go to China because of cost anymore, but rather because a Chinese company provides better flexibility and higher quality than an American one. The days of cheap plastic chairs manufacturing in China are over- they outsource it to Vietnam now… Today’s China makes the most sophisticated devices in the world.

But why China wins? I believe that China is winning because it got to an optimum between education, wealth, human rights and discipline. It seems like the formula to a national success is MIN (human rights, wealth) and MAX (education, discipline).  Read the rest of this entry »