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The great re-shoring charade
Asia Times ^

Posted on 04/06/2023 4:04:42 AM PDT by FarCenter

NEW YORK – Moving factories from China to Mexico is one of the few hot topics in an otherwise listless market, US investment bankers say.

As American hostility to China rises, US corporations scramble to assure the public as well as inquisitive congressional committees that they are moving operations out of the Middle Kingdom to friendlier venues.

It’s all a pantomime for political consumption. US imports from Mexico, Vietnam, India and other “friend-shoring” venues depend on imports of Chinese components, according to an Asia Times study of international trade data. China’s exports to non-Japan Asia and Latin America are booming, and Chinese companies are investing billions of dollars in Mexico.

The charade permits American politicians to flaunt success in decoupling from China, and gives corporate leaders a chance to display their patriotism – while America’s indirect dependence on China’s industrial power increases.

“Friend-shoring” venues including India, Vietnam and Mexico show a lockstep relationship between imports from China and exports to the United States. Econometric analysis confirms that this relationship isn’t simply the result of a rising trend in both measures.

After correcting for the trend and for serial correlation, regression analysis shows a strong predictive relationship between these countries’ imports from China and their exports to the United States.

China’s share of international trade is rising steadily. Its export volume (as calculated by the Netherlands Central Planning Bureau) rose 25% since 2018 while the industrial nations’ export volume stagnated.

(Excerpt) Read more at asiatimes.com ...


TOPICS: News/Current Events
KEYWORDS:

1 posted on 04/06/2023 4:04:42 AM PDT by FarCenter
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To: FarCenter; central_va

Ban imports. Sink the ships.

Revoke the citizenship of owners who employ illegals.


2 posted on 04/06/2023 4:07:15 AM PDT by Jim Noble (You have sat too long for any good you have been doing)
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To: Jim Noble

We need a border tax to stop Mexican scab products entering duty free.


3 posted on 04/06/2023 4:08:50 AM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: FarCenter

Yeah........I don’t think its a charade. One of the only thing both sides agree on in the US is the need to decouple ourselves from China. You will see the screws continue to be slowly turned to make this happen. Obviously, its not going to happen overnight - at least not without catastrophic costs to us. But give it time and it can definitely happen.


4 posted on 04/06/2023 4:10:18 AM PDT by FLT-bird
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To: FarCenter

“Reducing our dependence on China” means shifting all the factories to India, Mexico, or Vietnam. So much for the GOP’s pivot to “America First”.


5 posted on 04/06/2023 4:20:03 AM PDT by Shadow44
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To: FarCenter

This probably says more about the complexity of modern manufacturing processes and supply chains than anything else. I read somewhere that an automobile produced in the U.S. contains raw materials and assembled components that have crossed the borders between the U.S., Canada and Mexico at least 35 times.


6 posted on 04/06/2023 4:40:45 AM PDT by Alberta's Child ("I've just pissed in my pants and nobody can do anything about it." -- Major Fambrough)
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To: Jim Noble

How are the Mexican cartels getting their tribute from the Chinese factories????


7 posted on 04/06/2023 5:00:43 AM PDT by elpadre (nd )
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To: elpadre

So the Bush family gets their North American Union and then some. traitors, all of them. Let history show that we were never defeated from without, but we were defeated by traitors from within.


8 posted on 04/06/2023 5:03:16 AM PDT by imabadboy99
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To: central_va

—” stop Mexican scab products entering duty free.”

This is the first, demand for union products on FREE REPUBLIC!!! ever!!!

Not to worry!

Many Mexican manufacturers are kind of/ sort of union.

While 16-20% of Mexican workers are unionized, including 90% in the industrial sector, in reality, 80-90% of Mexican collective bargaining agreements (CBAs) are negotiated by company-dominated unions and approved without worker consent.
https://onlabor.org/mexico-labor-law-reform-the-usmca-an-american-explainer/#:~:text=While%2016%2D20%25%20of%20Mexican,and%20approved%20without%20worker%20consent.


9 posted on 04/06/2023 7:51:52 AM PDT by DUMBGRUNT ( "The enemy has overrun us. We are blowing up everything. Vive la France!"Dien Bien Phu last messa)
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To: FarCenter

The same goes for pharmaceuticals. Even if the bottle doesn’t say it’s made in China there’s a 90% the key ingredients are.


10 posted on 04/06/2023 8:55:49 AM PDT by chickenlips (How could I have forgotten Psalm 146:3?)
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