MADE IN… Pride and Prejudice

⌈ A trade war is an economic conflict between countries or groups of countries that can be likened to the “hot” phase of a conventional war. All available tools are brought into play, and there is (in theory) only one winner. However, there is a hidden version of such a conflict - one that is virtually imperceptible. In this version, the goal is also to win, but the rewards can be shared among all participants. This is the story of “Made in…” in the world of audio. ⌋

THIS HAS HAPPENED TO ME SEVERAL TIMES RECENTLY. I thought it was a thing of the past, that the issue had been resolved, but it turns out - it hasn’t. I’m talking about the innocent, yet highly emotive “Made in…” labels found on audio products. More specifically, companies from our cultural sphere are often embarrassed that their devices, speakers, or cables are manufactured in China, Taiwan, or Indonesia. And it’s the first of these countries that stirs up the most emotion.

‖ A classic – a product designed and made in Poland – More Audio CS200

As reported in „Gazeta Prawna”, labeling products or goods with the phrase “Made in Poland” or other geographical indications may at first glance seem like a completely arbitrary practice. Nothing could be further from the truth - the article continues - these issues are governed by national legislation, EU law, and international conventions. Gazeta MSP, writing about food products, adds:

If a given product is to bear the label “Made in Poland,” for example, it must undergo - and this is important -substantial, genuine, and sufficient processing. In practice, what counts includes, among other things, the scope of work (what was actually changed in the product in Poland), the share of added value, and whether the work performed in Poland is a decisive stage, rather than merely final packaging or labeling. In the event of a dispute, as stated on the DBB website, the burden of proof regarding the correctness of the labeling rests with the business, so it is advisable to rely on production documentation and establish an internal labeling policy (more → HERE).

‖ And once again, this time with an added sense of local pride: “Manufactured in Geneva, Switzerland”

In short, the point is for consumers to know where a product comes from so they can “make an informed choice about whether to buy it.” So, when buying, say, an amplifier, we have the right to know whether it was manufactured in our country, in a country we consider to be a reliable and trustworthy place, or elsewhere. Following the pandemic-induced slowdown, another reason for carefully reading product labels has emerged: supply chain disruptions.

The first of these reasons could be called “identity-based”.

I vividly remember the first products from the PRC that I encountered back when I was still working at „Sound and Vision” magazine - that is, twenty-three or four years ago. These were products from local manufacturers, but also, increasingly, from British companies that had moved their factories there or had been acquired by Chinese firms. Incidentally, today we know of many brands that operate this way, most of which are owned by IAG (International Audio Group: Leak, Mission, Castle, Wharfedale, Audiolab, QUAD, and Luxman).

Those first products from the country that emerged in the shadow of the Great Wall were received by the industry like UFOs - aliens who had landed on our planet. We were curious about them; we saw how they differed from “our” equipment - if only in their distinctive sandblasted aluminum finish and blue indicators - and we recognized their weaknesses. They were, after all, clearly of a lower class than most of what we had dealt with up to that point. However, they were much cheaper than the competition.

Over time, this began to change. Electronic devices - since that was the main focus, though speakers were also involved - were becoming better built and “sounded” better as well, which is, after all, what matters most. Today, although their design sometimes still deviates slightly from what we’re used to, the build quality, components, and sound are on par with what we get from European or American companies. In fact, they’re often better.

‖ „Made in China” is now more of a source of pride, at least when it comes to high-end devices—the back of the Shanling SCD3.3 SACD/MQA player

Despite this, there is still a deep prejudice against products “Made in China” that many of us share. And yet, this could normalize over time, and we could stop viewing them as something “inferior.” After all, “the old days are gone,” to quote a classic. Let’s remember that products from Japan followed an almost identical path. In the 1940s and 1950s, they were synonymous in the West with cheap, shoddy knockoffs.

This view of the country was linked to its economic backwardness caused by its defeat in the war. After its surrender in 1945, Japan was an economically ruined country. To survive, local factories began mass-producing copies of Western goods - from toys and textiles to simple mechanical devices. These products were made from low-quality materials, broke easily, and their only advantage was their very low price. Doesn’t this remind you of the situation in China not so long ago?

Today, this country is one of the most economically developed in the world. Yes, human rights are violated there, and personal freedom is out of the question; it is also a country that is aggressively asserting itself in the region. However, the audio products manufactured there often surprise with their sophisticated design and sound. We review them quite often, and it’s clear that (usually) there’s no longer any question of them being knockoffs. Almost every time, we hear the famous phrase “unbeatable for the price”, which, by the way, also shows that the country heavily subsidizes its exports.

So “Made in China” products could have become increasingly “respectable.” However, this “normalizing” trend changed course, it seems to me, with the collapse of the supply chain during the pandemic. All of a sudden, as if at the push of a button, it turned out that “just-in-time” production - which greatly improves corporate profitability - was unsustainable, and that it was better to rely on manufacturers located nearby, preferably within one’s own country. Their work will contribute to the country’s development (and that of the region), and the fact that they employ people “from here” and pay taxes will translate into greater prosperity for all of us.

‖ Hong Kong is part of China, but manufacturers there still emphasize their distinctiveness - the photo shows the bottom of Lumin’s N1 LAN switch and the telling inscription: “Designed by Piksel Magic System in Hong Kong Science Park. Assembled in China”

It seemed really simple, because it was backed by evidence - the shortage of components, sub-assemblies, and materials during and after the pandemic. Many companies nearly went bankrupt because of this and had to scramble to find new suppliers, and often redesign their devices and speakers. Domestic businesses couldn’t have asked for better publicity. And yet… Very quickly this capital was squandered. I believe this is because greed triumphed over reason, and short-term profit over long-term profit.

This would be a symbolic conclusion to the original impulse that drove companies to migrate to the Far East. Let’s recall that the mass relocation of production to the People’s Republic of China began in the early 1990s, and after 2001, when China officially joined the World Trade Organization (WTO), it became the official “world’s factory.” The audio industry, including the audiophile segment, was swept up by these forces almost instantly.

In our corner of the world - the realm of perfectionist audio - we continued to resist, but it was a battle doomed to failure from the start. The decision was made for us by corporations and major manufacturers, for whom the most important thing is profits in the nearest fiscal periods. Interestingly - and this is rarely mentioned - this process has also benefited us. As Chinese manufacturing improved, the Chinese effectively forced companies that kept production “in-house” to improve their quality as well.

This brings us to the second reason for the reluctance to outsource production, which can be called “quality-related.”

‖ One of the places where many audio products - including high-end ones - are manufactured is Taiwan; pictured here is the Musical Fidelity M6xi amplifier

We’ve already talked about this - for a long time, “Made in China” products were associated with cheap knockoffs and fakes. Both - quality and authenticity - are extremely important to us. You could say they combine what is rational with what we experience. Deyan Sudjic, in his article And What About Authenticity?, writes that “authenticity need not have anything to do with beauty, but it suggests a combination of sincerity and authority - desirable qualities in a world of mass-produced objects.” And he continues:

Authenticity is a guarantee that an object is truly what it claims to be. The more authentic it is, the more at ease we are with its price, though not necessarily its value (more → HERE).

In the context of production outsourced to other countries, however, no one talks about “counterfeits” anymore. They’re still a problem, that’s clear. But it’s also often the case that we know we’re buying a counterfeit, and yet we “go along with it” - either because we can’t afford the original, or because we’re challenging the fact that both the counterfeit and the original come from the same factory. Generally, however, there is a consensus that audio products “from there” are either original designs or legitimate commissions from the West.

This attitude has changed to such an extent that now, in most cases I’m familiar with, the “Made in China” label guarantees the highest quality of production and craftsmanship. This applies not only to products commissioned by companies based there but also to those from domestic Chinese audio manufacturers. After all, products from companies like Shanling, Denafrips, Silent Angel, and among the smaller ones - Fosi Audio - are superbly crafted and sound fantastic. So they compete not so much on price - though they do that as well - but on class, innovation, and sound quality.

Despite this, we still have reservations. While the “identity” reason is, in my opinion, valid and grounded in facts, the other one is not. We are witnessing companies from China and India slowly overtaking the rest of the world. Perhaps we are close to this trend leveling off (no one can answer that question), but there will be no return to the status quo prior to this “revolution.” It also seems that we are becoming increasingly aware of this.

‖ Yet another strategy for concealing the place of origin - though not such a bad one - is the “Made in EU” label on the Ayon Audio Spirit SE amplifier; the device appears to have been manufactured in Bulgaria. On other devices, however, the company states: “Made in Austria,” even though that is, after all, also a country in the European Union

That is why the concerns of manufacturers and distributors trying to conceal the “country of origin” of the products they offer do not relate to the quality of those products, but rather to the fact that they might potentially be perceived as draining our collective pockets (national, and in the case of Poland, the European Union) and paying someone who, to put it mildly, is not particularly well-disposed toward us. Or as a departure from the “original” (though no longer as a counterfeit).

Manufacturers try to smooth over this dissonance by writing “Designed in…” on the back panels and boxes, “Manufactured in…” and so on. Because that’s also true, that most devices and speakers produced in factories in Shenzhen are merely following “instructions” developed in the UK, the U.S., or other places considered “audiophile.” We also provide this information, right below the manufacturer’s details at the beginning of the review. However, this does not change the fundamental fact - “designed” does not mean the same thing as “made.”

There are two ways out of this. The first is to bring production back to the countries where the manufacturer has its headquarters. The second is to use local subcontractors and suppliers. Not everything is possible; the vast majority of active components are manufactured in Asia (keep in mind that I’m writing this from a European perspective), as are many other parts, ranging from screws to transducers and their components (such as magnets or baskets). However, this is only part of what makes up the finished product.

That it is possible is demonstrated by Polish companies such as Pylon Audio, which manufactures cabinets for many European firms, as well as J.Sikora and Gigawatt, which are conquering foreign markets. There is also the example of Pro-Ject Audio Systems, an Austrian company that manufactures turntables and electronics, with factories located in the Czech Republic. As you can see, it’s possible, and it can be done.

‖ Finally, an interesting exception - the Mytek Liberty II DAC, manufactured in Poland for an American company, specifically in Kraków, hence the “Made in Poland” label. It is also, of course, “Designed in the USA.”

The second option is full transparency. The meaning of “Made in China” - because that’s what we’re really talking about - has changed. It has evolved from being synonymous with a defective, albeit cheap, product - something to be ashamed of - to being synonymous with a product of high-quality craftsmanship, the only difference being that it’s made “somewhere else,” “not here.”

So perhaps it’s high time to stop being ashamed of such a label and, with an open mind, explain what such a reduction in production costs has brought to customers - and indeed, what benefits they have gained from having amplifiers, speakers, etc., manufactured in the world’s top factories. That way, we’ll move from prejudice to pride. ‖ WP