Category — China Manufacturing

News From The Taipai International Bicycle Show

Pihsiang Machinery Manufacturing Co., Ltd., Taiwan`s largest supplier of handicapped electric scooters, is expected to enjoy a 30% shipment growth this year due to the subsidization program offered by Centers for Medicare & Medicaid Services (CMS) to electric-scooter buyers in the United States.

According to Pihsiang, CMS listed the handicapped electric scooter a subsidization item for the first time in late 2006, and the highest subsidy amount is now set at US$3,800 for each scooter, which almost covers the full price of a Pihsiang product.

Last year, Pihsiang shipped about 65,000 handicapped electric scooters, including around 30,000 units to the U.S. market. Thanks to the CMS subsidization program, some institutional investors estimated that the company`s total shipment this year would surge 30%.

Go figure.

On Friday this news quietly slipped through the news wires but could have a dramatic effect on several businesses, not least of which the US homecare industry.

“WASHINGTON: The Bush administration, in a major escalation of economic pressure on China, said Friday that it would adopt a new policy of imposing tariffs on Chinese manufactured goods on the grounds that its government subsidies violated international trade laws.”

This is an interesting development as the homecare industry continues its frenetic scurry to the outsourcing haven of China.

In the above case, in the paper industry, some costs are estimated to increase by up to 20%. There is no reason why the homecare industry will not be in the line of fire as well. In any event, with Chinese homecare suppliers becoming increasingly arrogant about how they chose to treat their US and European customers, this may be an interesting swing of the pendulum.

Worst effected - will be those companies that have “gazumpted” the homegrown value added manufacturers and suppliers and have chosen to “import commodities at lowest cost” and largely use price as a basis for competition. A cost increase of 20% will close them down, much to the delight of the more diversified value added players.

There is nothing wrong with sourcing in China - just make sure your business model does not wholly depend on it.

More from The International Herald Tribune
With tariffs, U.S. steps up economic pressure on China

As a brief follow - up to the post on this subject this week, we can now confirm that Invacare, Meyra and Handicare will not be attending this years Rehacare.

This is the first time in the history of this show that Invacare and Meyra have not attended.

No doubt the empty space will be used by others - most notably Asia manufacturers.

The reshaping of the industry continues…

This The Red Hot Market for Medical Devices in China - SeekingAlpha is an excellent article from Evelyn Rubin which reviews the IPO filing by Mindray - a medical device manufacturer with a substantial China presence.

The filing contains a host of useful information on the Chinese medical products market.

Sibaya China Joint Venture

Aluminum Manufacture Extrusions, Parts, Assemblies

• Company founded in 1960
• ISO 9001:2000 Certified
• 5 Extrusion machines from 690 - 2100 tons
• Fully integrated mold manufacture, CNC milling, bending, punching capability
• Served industries, industrial, construction, healthcare mobility, bicycle frames, electronic, various parts all industries
• International specifications for Aluminum

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