Follow the playbook is what they are told to do. Just
like de-industrializing and outsourcing production to China thirty years
ago and all they have to do was just print toilet papers to enjoy the
finished products. What a grand idea then and a fairy tale that no other
country ever thought of! But then, as with everything else, it
backfired.
Today, the USA is frantically trying to' 'insource'
production by going through the basics of setting up factories and
attracting foreign manufacturers to help. Alas, it is too little too
late. China controls most of the raw materials, the refining logistics,
the cheap energy from Russia, the skilled workers, and has the
competitive edge in every sector. Sure, the USA can become a hub for
manufacturing, but who do they hope to sell to? They cannot produce
products that are competitive enough to corner the Global South market.
And China itself is a big market, but definitely beyond the USA to
muscle in.
That means end of cheap products for USA citizens. The
USA thinks that erecting tariffs will help, but it is making the
situation even more dire. China will retaliate and if a push comes to a
shove, China will ban essential raw materials required for the USA to
industrialize. What then will the USA use to produce products without
the raw materials. It is not as simple as printing toilet papers, where
only ink and paper are required and just running the printing machines
overtime.
Anonymous
1 comment:
The USA outsourcing manufacturing to China killed three birds with one stone - taking advantage of cheap labor, enjoying cheap products made in China and also exporting its number one pollutant status to China. China then became the biggest polluter in the world as a result.
For decades, there were no big deals about cheap Chinese labor, cheap Chinese products and pollution stigma raised against China. Everything works according to plan. No accusation about China stealing USA jobs. The USA enjoyed exchanging toilet papers for cheap Chinese products and no longer need to produce anything.
When relations soured over the last couple of years after the USA saw the Chinese juggernaut moving ahead, it was all hands to the demonization pump. Slave wages paid to Chinese workers, spying charges using Chinese consumer products like washing machines and toasters and bashing China over pollution issues became a hobby.
Perhaps it is good that they are insourcing production and creating pollution issues at home. It matters little for China having the advantage in competing on the global market. Processing of raw materials creates massive pollution issues that USA citizens will have to live with going forward. The USA and the West has been reported to have very strict restrictions against such industrial pollution, like refining rare earth. Radiation is one such problem and toxic waste another. Such setups will face massive blowbacks for sure.
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