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Friday, May 8, 2020

Is China the new superpower now? All US pharmaceuticals are manufactured in China. All US masks are manufactured in China. Basically everything is manufactured in China. Wasn’t Trump going to change that? What he been doing for over 3 yrs.

Replied by Henry Young thru Quora

Yes, even Andrew Cuomo said masks, PPE, ventilators, …..etc are made in China. He asked Why is that?
The answer is companies moved their manufacturing to China where the production environment is better, and companies earn more profit. Also US workers are not productive and adaptive enough (vs Chinese workers), labor-company relations is not particularly good (re strikes, etc), etc so companies moved low end manufacturing to China and gradually the level of processes moved got upgraded. Research centers are also set up there.
Trump started trade war against China and there was a stage 1 agreement. Not all tariffs are removed by each country. But that did not change the economic and business reality. In business, the CEO has to ensure profit goes up or otherwise he lost his job. So all those Trump rhetoric are nothing. Harley Davidson moved manufacturing to China, Telsa set up a factory in Shanghai, etc. Even Jobs said China is the only place where changes to design and production could be made at a moments notice, ie even US could not match China here.
I think unless the economic fundamentals, such as labour cost, labour relations, productivity, infrastructure, work attitude, etc are changed (which I think is almost impossible to achieve in US), things would continue unchanged. Even the next president, or the next next president etc cant reverse that.

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