(no title)
lasagnaphil | 4 years ago
Yes, I still definitely agree with that one. US’s hubris is the undeniably the largest in the world.
> I think it's ultimately the PRC's goal to have domestic champions replace those global corporations in the global economy (e.g. Apple declines as Huawei ascends)
Maybe, maybe not? We’ll see if this goes well as planed. Easier said than done.
> I don't think the PRC is as stupid as the US was, and will not allow those companies to "pack up and move" to the degree it's disruptive to their ability to provide an unmatched manufacturing supply chain.
The point is, companies are already doing this. You’ll be surprised how much conglomerates like Samsung has already taken production out of China.
tablespoon|4 years ago
My understanding is that China's manufacturing supply chain is so well-developed that companies like Apple don't think they even have a choice except build their stuff there. The only things they're missing are a few things at the very high end. If they lack a commitment to free markets, its conceivable that they could use that advantage to slowly strangle their global competitors (e.g. allow their domestic champions a price/quality/volume advantages, while keeping the value proposition for global companies just good enough that continued dependence makes economic sense). To counter that, the US would also have to take bold steps away from free market dogma, against the interests if its corporate sector, which has relatively more political power, and against its reigning ideologies [1].
> The point is, companies are already doing this. You’ll be surprised how much conglomerates like Samsung has already taken production out of China.
I'd be interested to know how truly disentangled they are. My understanding is that even when companies move production away from China, they're still seriously dependent on China's manufacturing supply chain (e.g. they have to ship all the components from China to Vietnam for final assembly). I'm not aware of any efforts to replicate the range of capabilities elsewhere.
[1] The right would have issues with stepping away from free market economics, and I think the left would be skeptical of the international competition aspect.
vondur|4 years ago