So, China must ironically stop being dominant in manufacturing and wait for the USA and EU to keep up - a wait optimistically maybe ten years or twenty years down the road. Chinese people also need and want a better life with progress and being wealthier, which is not the prerogative of only the Anglo-Saxon Whites. More than that, the people in the Global South also want cheaper products which only China can provide. Why would they support such a move to cut their noses to spite their faces. The call to curb China's over-capacity was an exercise in futility.
What is more important for China? Pandering to the minority Anglo-Saxon White's voices or the majority non-Whites in the Global South. Common sense will tell China what to choose. The huge Global South market,
, a growth sector, puts to shame the meager Anglo-Saxon White's enclave which is eroding with sanctions all over. Just Africa alone, with 1.4 billion population is almost double the total global population of the Anglo-Saxon Whites.
When the USA and the West, including Japan, were at the top of the manufacturing chain, churning out cars, electronic equipment, TVs, ships and planes to flood the world, nobody and particularly China, were telling and demonizing them to slow down their over-capacity and let China and others close the gap. Who is going to tell the USA today to slow down in its printing of toilet papers that are flooding the world and pushing up Wall Street to everyday highs?
China was smart enough to deny the USA's attempt to impose its Rules Based Order on its financial system. That has led to complaints that China is not playing by the rules. Why allow Western rules to sabotage the financial system by moving in massive amounts of money into China's stock market and then try to destabilize China by using that to attack the financial system.
The USA had, using hedge funds, did the same thing to create the Asian Financial Crisis through attacks on the Thai Baht and was doing exactly the same thing in Hong Kong, hoping to destabilize China as well. China's direct control would not give George Soros the opportunity to do that inside China directly.
Let us not talk about subsidies which is like comparing apples with oranges. The Chip's Act alone saw subsidies of hundreds of billions poured into subsidizing chip manufacturers to relocate to USA and enticing European manufacturing to move to USA.
Let us not talk about the USA Government now having control over tech companies by investing in them directly, while using the same analogy to accuse Chinese firms of having ties to the CPC. The pot is just calling the kettle black but claiming it is still white.
Anonymous
The USA and the West are now at the crossroads of realizing that the days of making money outsourcing manufacturing and then profiting from products by just attaching a label to sell with exorbitant markups is now over. They can try to enact the same trick by investing in India, which some are in fact doing and also finding out India is a different kettle of fish compared to China.
ReplyDeleteFirst was motor vehicle manufacturing shifting production to take advantage of cheap labor and the huge Chinese market, which was highly profitable for the West. EVs killed that goose that laid the golden eggs.
Then there was the Chinese factor, said to be making junks, now also discovered to be making products for the big brands of the USA and the West, also profiting from label slapping but not the making of the products which actually came from Chinese factories. The exposure by Chinese factories killed the prestigious names that had been gouging unsuspecting buyers at the top end market of handbags and watches. The fairy tale era of harnessing big profits has also ended. Just how stupid can some human buyers be by still saying they are willing to pay a premium just for buying the label, costing a couple of bucks, and not the value of the bag or watch.
Just goes to show how brainwashing and propaganda can dull the mind is just astonishing.