Mtwara wrote:Novus America wrote:
Two things to note, the PRC is not the cheapest manufacturing base and is too unreliable.
If the US needs a cheap manufacturing base we always have Mexico. Also the focus on cheap manufacturing over productivity undermines our ability to bring our supply chains back, in most cases cheap labor is good for the short term profits of multinational megacorps but bad for society as a whole.
But sure we can and should move manufacturing back, especially steel and aluminum which can be heavily automated. They do not need lots of cheap labor. Electronics are a bit more complicated because assembly requires a lot of labor, robots generally lack the fine control to assemble them, but we can pay more upfront in sticker prices and/or use Mexico and such.
There were other choices with cheap labor who are less problematic. Who are not military and political adversaries. So even in places we have a hard time avoiding cheap labor (and again cheap labor is not really a virtue) we have alternatives to the PRC.
I think you have a good point - there are alternatives. For instance I would bet on East Africa (Kenya/Tanzania) becoming a low-skill manufacturing hub when I'm middle-aged, using inland resources from Zambia and Uganda.
The question for me then is - if there are other, better alternatives to China, then why did we, and do we continue, to use it?
Inertia, infrastructure, investment and influence really. Our corporations already spent a lot on the PRC. Sure most like Apple could easily afford to move using the literally hundreds of billions they have stashed in off shore tax havens, but they are cheap. They do not want to spend money doing something just to benefit the West economically an political.
Our corporations give zero shits about their own countries.
Also the PRC has a lot of infrastructure. The infrastructure in Africa is mostly poor.
And our companies are lazy and afraid of change.
That and the PRC uses its money to buy our politicians.
It can be done but it requires money and politicians with a spine. We have the money but many of our politicians are spineless sell outs.




