One social media vlogger even said that USA trying to lure manufacturing back to the USA is a pipe dream. How can it succeed with its much higher labor cost, high material cost without the necessary supply chains in place and a lack of skilled workers. The situation has been made worse by the anti-Chinese movement started by Trump, which resulted in thousands of scientists, engineers and academics returning to China to contribute their talents to the innovation and development. Now Trump is even threatening to deprive birthright citizenship for immigrants. This is going to affect many allies like South Korea and India (the largest targeted group).
Can such manufacturing setups survive just producing for the USA market, or even adding the EU into its calculations, as they will not be able to compete against Chinese products in the Global South countries. Moreover, the Chinese consumer market is not possible for them to break into, with Chinese citizens now becoming more patriotic in their mindsets.
Anonymous
2 comments:
The problem with pipe dream is that the aftereffects could be worse than trying to find a cure in the first place.
After all the resources expanded to do it, failure is going to be very costly. It is not a good start just trying to give the impression that the USA can just counter what China did, which the USA also can do. There are so many variables that the USA has not factored into, which took China decades to put together, quietly and diligently. This is nothing like printing more money by just buying more printers, a little ink and some papers. Anyone can do it if given the same privilege.
What the USA wants to do is similar to setting up nice looking factories first and then start looking for raw materials to feed those factories. After that, with production in motion, start looking for a market for their products. It is a simplistic way of looking at how things work, but not all things work the same way. Just like tariffs, with imposing it just as easy, but not understanding how it works and trying to figure it out afterwards is a sure sign of failure.
That's how white elephants are created.
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