We Americans prefer the really techie stuff. And pillows. Top Countries Manufacturing Output: 1. China: $2,010B 27% of GDP 2. US: $1,867B 12% of GDP 3. Japan: $1,063B 19% of GDP 4. Germany: $700B 23% of GDP
I think this pandemic will not kill globalization because money has and will always flow to the lowest cost bidder whether it be manufacturing or jobs. But I do think there will be a hysteresis effect after this pandemic with the supply chain disruption and all. I think this opens the door for other emerging countries to be the cheapest manufacturers of the world. But that had already been happening even before the pandemic because of China's rising costs. In 10 years China will still be a huge economy but not the central focus as it is now.
Trump or Boris just said wants to stop the reliance on China for everything. Good in ways more local jobs for us. Bad, higher costs and if China stops making money then it'll turn to wars to support its people or accept 3rd world poor status, not likely Not many of us will live to see 2030 i fear.
Comparative advantage of the future: Once manufacturing is fully automated, the cheapest place to manufacture something is not cheap labor but cheap resources and tech. The pendulum will swing back to developed countries. That is why China so desperately wants to develop high tech (at any cost, by any means) to beat back this AI driven trend.
That and China’s “one child” policy - which was in place until 2016; doesn’t auger so well for maintaining their competitive labor advantage a bit further into the future.
Many of those American consumers buy cheap imports out of necessity. As for me I could care less where something is made if it is made well and at a good price. WTF do you think our own Prez (and others that can damn well pay top top dollar) do? Pay top dollar and buy American - hell no. BTW Biden thinks similar so that should tell you something about who is and isn't right about China.
And then there was us (not to mention all that followed this): As Trump administration debated travel restrictions, thousands streamed in from China https://www.reuters.com/article/us-...housands-streamed-in-from-china-idUSKBN21N0EJ
That may be true, eventually. But, how long will it take for factories to be completely retrofitted with AI, thus replacing workers? Ten years after the pandemic, 20 years, perhaps 40? Who knows? Globalization will survive in the interim, and well after the pandemic has been contained or eradicated.
Mc Donalds already has plans to automate pretty much everything so the next virus won't effect them and you know huge savings from wages. Not AI, just standard automation.
But what if we can make them for $2? I’ve seen many examples of people willing to pay Several times the price for something just so long as it’s not ChinaMade.