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The China Debate Is About Cost. The Problem Is Reaction Time
The China debate is about cost. The real problem is how fast we react.
I hear this often in conversations with industrial CFOs. The reflex is always the same: get cheaper, drive unit costs down. That is probably right.
But it does not explain why a competitor from Shenzhen brings a product to market in the time it takes us to align the medium-term plan.
The cost level plays a part. But the difference lies above all in the tempo of steering. We plan once a year in the finest detail, then run three forecasts, and treat everything in between as a special round. Lockdowns and short-time work, tariffs, wars. Each time ad hoc, each time from scratch.
And yes, this is not a software question. It depends more on whether the steering model even allows you to change one assumption and immediately understand what it means for EBIT and cash flow.
Cost is negotiable. The speed of your own steering is not.