Bric and brac

The Danish media have reported from China that everything is going well and that trade relations are improving.

We have now heard more about China than we heard back from the Expo 2010 when the Little Mermaid was taken over there. 

It’s interesting to notice in the reports how there’s little about the establishment of production in China and more about the export of Danish products to the growing middle classes that are increasingly gaining consumer power. 

The Chinese are no longer impressed by western goods just because they are imported and increasingly proud of local products. The Danes will only succeed in trade if they can compete.

A Chinese manufacturer of auto parts told his Danish partner that the expansion of the plant should not give him any expectations of good, cheap products heading to the EU market since demand in China would consume the capacity. 

After all, why waste transport time and cost when the customers live next door? 

The message is that the Danish manufacturer should no longer source his products in China but make them himself in his own marketplace.

After all, sophisticated products cannot be produced by low wage, unskilled labour. They need robots and intellectual skills – costly in any environment.

That’s good news for Danish industry.  Not only regarding analogue products but some of their service industries, like environment protection and air cleaning.

We welcome the Chinese to buy Lego, røde pølser and wind turbines, and even their decision to take over a landmark building at the former Royal Academy of Music building close to Town Hall to encourage cultural activities. They must mean business.

Some of this could also be more or less said about another BRIC country: Russia.

hree months ago, nobody saw the arrival of all this tension, be it among businesses or those watching Danish fighter jets flying over the Baltics.

Hopefully it will pass, and hopefully China will go on worshipping white and black cats alike as long as they catch mice. 

Always remember to expect the unexpected.