Big corporations moved production to China for the cheap labour costs. But China stole their technology and began cranking out low cost counterfeit products. Chinese courts sided with local patent infringers every time. So now that production costs are rising in China, is it any surprise that many of these big companies are making plans to get out of the China trap?
Some of the huge global corporations that are quietly considering plans to move production out of China include Dell, Microsoft, HP, Amazon, Sony, and Nintendo. Even Google — which seems cozily at home in totalitarian China — is considering moving some of its production out of the prison nation.
The decision by some of the world’s biggest computer and game console brands to shift production — mainly of products destined for the U.S. — follows manufacturing reviews by other tech companies. Apple is exploring the cost implications of moving up to 30% of its smartphone production, Nikkei reported last month. Elsewhere manufacturers of servers, networking products, and some key electronics components are shifting out of China, often at the request of U.S. customers.
The moves will be a blow for China’s electronics exports, which have powered the country’s decades-long growth. China is the world’s biggest producer of PCs as well as smartphones. __ Asia.Nikkei.com
China is slowly losing its workforce to an inexorable demographic shift, so that even without Trump’s attempt to level the trade playing field China’s labour costs were beginning to rise uncomfortably. If President Trump makes it more difficult for the Chinese to steal advanced technologies, China could find itself in an economic pickle.
1. The tariffs are creating economic uncertainity. There’s been some goal-scoring by lefties about how little impact the tariffs have had on the PRC economy. But the effect is more of a slow burn. China’s economy didn’t turn into a monster overnight. The effects won’t be felt immediately due to the scale of the supply chain. But there are signs of it on the horizon.
2. China’s labor costs aren’t as attractive as they used to be. Between the IP theft, the spying, and the security issues, staying is not as appealing as it used to be. __ Source
China is a filthy country, with toxic air, water, soil, food, and pharmaceuticals. Political dissidents and religious practitioners are murdered alive for their vital organs on a daily basis — without even the kindness of anesthesia. As a result of toxicity and oppression, those who can get out will do so. Others are biding their time, and sending funds to Hong Kong, Taiwan, Australia, Canada, or wherever they can hide their wealth from the bloody-minded communist overseers.
As the Chinese economy ramps downward, Xi is betting China’s future on foreign economic adventures. The One Belt One Road initiative seems clever in the sense that China is using it to expropriate valuable land and other assets from its debtor nations that cannot repay Chinese development loans. But is he really making a huge mistake?
For the Chinese, this initiative has been a strategic blunder.
By buying into the flawed idea that barrels of money are all that is needed to solve complex geopolitical problems, China has committed a colossal error. __ A Big Blunder?
Certainly the people of all of the nations that are forced to turn over control of expropriated sovereign land and assets to China will have reasons to regret the bargain — while their leaders who accepted Chinese bribes may well be breathing the heady alpine air of Switzerland. But the Chinese neo-colonials who find themselves living next to antagonistic natives may not live long to enjoy their new plantations.
The Communist Party leader Chairman Xi has made a number of expensive moves meant to elevate China’s military and political standing around the world. But if China’s economy falters to the point of being unable to back up Xi’s power plays, China may be forced to face some harsh balance sheet realities.
“China’s hiked production costs have already led to a decline in global orders. Now, the uncertainties associated with the trade war are adding insult to injury,” the official said. __ Nikkei
Taiwan and Hong Kong Resistance to CCP Aggression
Hong Kong has rejected a forced extradition law which Beijing insisted upon. This makes the Chinese government look weak. At the same time, Taiwan is waiting for advanced weaponry from the US — and is quite capable of buying other advanced weapons from multiple other sources if necessary. A stronger Taiwan also makes Beijing’s future plans more uncertain.
To tell the truth, no country in the world likes or trusts communist China. The corrupt leaders of many nations are receptive to Chinese bribes and “loans,” but their people are not happy about the consequences of the inevitable “loan” defaults — when China moves to take over control of strategic land or other resources.