Posted on 12/26/2022 9:58:40 PM PST by Cronos
China's COVID policies are pushing companies to diversify supply chains away from the country.
They had already begun moving out due to geopolitical tensions and tariffs from the Trump era.
India, Vietnam, Thailand, Malaysia, and Bangladesh are stepping up to replace the world's factory.
Global manufacturing powerhouse China's rise as the world's factory spanned over four decades and ushered in an era of globalization and integrated supply chains.
But that facade started to crumble around 2018, after former President Donald Trump launched a trade war against the East Asian giant. This, in turn, has prompted investors to reassess their geopolitical risks.
While some investors did move parts of their manufacturing facilities out of China at the time, it was really the pandemic — and China's zero-COVID policy — that drove home the importance of not depending on one country for manufacturing needs.
"The geopolitical tensions in themselves may not have resulted into this level of realignment of supply chains, but COVID certainly provided that extra vision extra fillip, the extra fuel to the fire," Ashutosh Sharma, a research director at market research firm Forrester, told Insider earlier in December.
And the effects of the trade war continue to linger. President Joe Biden hasn't kiboshed the elevated tariffs Trump imposed on China — in fact, in October, he imposed export controls on shipping equipment to Chinese-owned factories making advanced logic chips. This further burdened an already strained relationship.
...Tech giant Apple, for one, has already moved some of its iPhone production to the Indian states of Tamil Nadu and Karnataka, and is exploring moving its iPad manufacturing to the South Asian nation.
Vietnam's key strengths are in the manufacturing of apparel, footwear, and electronics and electrical appliances
(Excerpt) Read more at businessinsider.com ...
Attention American manufacturing companies: Goods manufactured in the United States, for sale in North America, do not get stuck on a container ship off southern California. Factories located in the United States are not subject to the whims of foreign kakistocracies. They’re only subject to the whims of domestic kakistocracies (which might be easier for you to bribe).
In 10 years it starts moving south of the border
There’s a reason why manufacturing that leaves China relocates within Asia instead of moving to Europe or the Western Hemisphere. For most consumer products, there are more customers in Asia than anywhere else.
All of which are on good terms allies with the United States. Everyone saying China will come out ahead in Ukraine, should consider that China's internal issues and regional position are not all roses.
Read and listen to as much Gordon Chang as possible. On the John Batchelor Show, Mr. Chang is a great resource. On one podcast he describes the insane building policies, requirements for any foreign company. The foreigners are allowed to build a factory, and right beside it the Chicoms build the exact same factory. If the foreigners decide stop, leave, whatever, the Chicoms have their own (talk about an effective method of corporate espionage). Before the Plandemic, foreign biz started to leave China. Perhaps Chicoms will begin doing business with the parts of the US that would love to be like the Chicoms, starting with Kalifornia.
So, you believe communism works?
Business Insider is a socialist propaganda machine. Trump did not launch a trade war, he fought back. China steals intellectual property, embeds spyware in its products, employs slave labor, manufactures methamphetamine and fentanyl, produces counterfeit products, pollutes heavily, and engages in biological warfare although the biological warfare came after Trump tried to get the Chinese to play fair. The decoupling of supply chains is the unintended side effect of biological warfare agents being deployed in a trade war.
“Trumps policies working”
Yes. And the very thing they used to get to Trump, the Covid panic, proved his policies are right.
Trumps policies working
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So, you believe communism works?
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Trump’s policies are communism?
I just bought a second refrigerator for the garage. Made in freaking Thailand. It was the lowest price I could find. I figured made in China. No! Made in Thailand. The reviews at HD were favorable. I immediately bought a surge protector with large enough capacity to handle a refrigerator, not just electronics. Surges will fry the delicate electronics in today’s refrigerators. Been there, done that.
Surge protector>>>> https://www.amazon.com/dp/B07GFRKSXD?ref=ppx_yo2ov_dt_b_product_details&th=1
China is much worse poison than Russia. The engage on all the scummy practices you mention. If it were up to me, I would cut off all Chinese and India immigration to America. I would say to them, "Go keep on effing up your own nations"
Smart you on the surge protector. My house is surge protected plus I have individual strips for computers etc. But a problem here are brownouts. As the utility nickels back on the voltage, the amperage goes up which is a strain on the electronics. What do you do about that?
Why? Because Free Traitors™ are the worst humans on earth. Short sighted heathens. WE NEED A TARIFF AND WE NEED IT NOW.
Worth repeating.
So Trump is a Communist? Wait, what? Did you forget to take your meds?
China’s exports to Asia are increasing while exports to the US and Europe are declining.
This may reflect that low value final assembly and packaging are moving to Southeast Asia using parts sourced in China.
China has been in a "trade war" with the United States for 40 years. Trump showed how much it mattered when he responded.
Labor costs and regulations. Indian factory worker earns $100 a month vs $2575 in Germany.
Too bad the consumer gets no benefit. Just job loses, destitute small towns and cities. WE NEED AN ACCROSS THE BOARD UNIFORM IMPORT TARIFF. NOW.
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