Sleight-of-statistics, here.
Since China usually builds the buildings and purchases the initial round of machinery, American FDI will not be large, even for sizeable plants.
Be aware (if you are not already) that the Nat'l Assn of Mfgrs is bi-furcated on this issue. The Fortune100 firms which contribute most of the cash are solidly behind offshoring; all the rest of NAM's members are virtually 100% opposed.
At this time, NAM officials are speaking for the Fortune100 types, albeit they are agonizing over it.
(Learned through private conversations.)
I think they have some 10,000 small business members. It is important to note that there are different views and agendas in NAM. Thanks.
"Since China usually builds the buildings and purchases the initial round of machinery, American FDI will not be large, even for sizeable plants."
That should be made clear, also. Thanks. Sacramento's Tom Sullivan loves to cite the European v. China differences to wave aside the offshore problem. Not a problem in his mind. I guess not, Wall Street is booming!
I was struct by the Motorola case posted recently. There is IMO THE problem with offshoring. The chi-coms took Motorola's technology and started competing. Motorola is losing its market in China. I suspect that is how the chi-coms' version of Lenin's NEP works.
The chi-com companies with the major portion of exports to the U.S. stole the technology and started their own factories.
Our useful idiot "capitalists" are now filing claims with taxpayer supported Ex-Im Bank and OPIC?
100% correct. We shall not be renewing our NAM membership in 2004.