Issue link: https://iconnect007.uberflip.com/i/1088168
24 SMT007 MAGAZINE I MARCH 2019 because it's a risk. To change something is to take some risk. To qualify a different process, even if it's better, takes time in this space. Barry: So, the big demand is on material sup- pliers to add capacity or flexibility to deliver quicker. Mauro: It's the only way to cut their logistics; be as close as possible to the customers, and de- signed for high mix, low-volume manufactur- ing. A fast-reacting attitude is also mandatory. Barry: I know there are a few suppliers that are taking that approach, and more are sure to follow. You have been living in China and working with the Chinese for the last 13 years, so you've learned a lot and witnessed first- hand the social transformation of culture and wealth. Mauro: The transformation was unbelievable. What took place in China as far as econom- ic and social changes go has been absolutely phenomenal. If we talk about Western coun- tries or continents, the big changes occurred after World War II from 1945 to 1970. Much bigger changes happened in China in just a de- cade boosted by the available technology and globalization opportunities. Barry: And it's really in the last six or seven years that we've seen it accelerated here in China. Mauro: Yes. I have a picture on my phone. A moving street shop on wheels was selling food and beverages by the river promenade—typical Chinese stuff. From the back of this handmade three-wheel vehicle, you can see an automatic payment device with a quad code for mobile phone payments. I went to the shop to buy some toothpaste, and two people were before me around the age of around 50. No one paid cash. I was the only one with cash. Barry: They have really embraced digital cur- rency. I tried to buy some local roadside fruit stand with cash, but they wouldn't accept it; they turned down the sale. Mauro: Fewer people are using the taxis. Every- body is calling DiDi (a ride-sharing service). In a few minutes, the DiDi will come, you've already paid by mobile phone, you see the car coming on your device, and off you go. Until recently, this technology was not available. Barry: Not long ago, most of these people were riding bicycles. Now, the movement to electric vehicles (EVs) or neighborhood electric vehicles (NEVs) is accelerating. It is reported that China is the largest market for plug-ins. For the 2018 NEV passenger car, sales through June were three times higher than in the U.S. Mauro: There are big incentives for electric cars. In China, the big difference from the other con- tinents is the country is already planning 10 years out. China already has a long-term plan and is buying strategic resources globally.