Too fast a move by BRICS is also not advisable, as it will lead too much chaos in the financial system. A gradual expansion is more preferable with BRICS inter country trade in local currencies expanding confidently.
China did not rise suddenly. It was a plan carefully devised over several decades - deciding on the direction, securing the resources, training the manpower, looking and securing food and energy security or building them up and diversifying its needs widely not to be held hostage by any country. And it worked beautifully.
Those that tout about bringing back manufacturing at the snap of a finger are just puffing hot air, without doing the basic planning and just plucking imaginary fruits from mid-air. What has been done to train skilled workers? Besides threats being made, the ground has not even been broken to build a single pillar to show by those would be investors that things are indeed already moving and not just gloating. Trump is just farting hot air waiting for some unwary investor to take the bait and take the plunge. Even Apple is not taking the bait, knowing that producing iPhones in the USA is going to cost such phones to be sold at double the price as those made in China and unsellable. And bear in mind that Apple is not making phones to sell in the USA alone. It is selling them around the world and is facing stiff competition already from Chinese phone makers.
Anonymous
2 comments:
A dream is just a dream. Bringing manufacturing back to the USA is not going to happen. Anywhere in the world, people can make things much cheaper than in the USA, so why would business leaders be blind to all the realities?
Even companies like John Deere, manufacturer of farm equipment in the USA for more than 155 years, knows that USA is not conducive for further investment and wanted to move some production to Mexico. And Tim Cook has already indicated that he cannot foresee Apple moving production back to the USA. If such homegrown USA icons are saying all this, what will foreign business leaders think?
Again, by using the lure of subsidies? Right now, the USA Government is still subsidizing farmers after the trade war Trump started during his first term. Just imagine that. What will taxpayers say about subsidizing foreign companies operating in USA for just as long. It is ridiculous and unsustainable.
You are absolutely right to say that Trump cannot think further than tomorrow. Does what he says today and backtracking tomorrow a clearer indication of that?
The worst part is putting the cart before the horse and thinking it will work under him that others probably would not even try knowing it will definitely fail. Gloating about selling Tik Tok to a buyer that he chooses seems to say that he owns Tik Tok already. He does not, and Byte Dance could just easily depart the USA when it is banned. In the face of the tariff war, China is not going to allow the sale of Tik Tok for sure.
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