Trade war update
The more than yearlong trade war between the United States and China is shaking up supply chains all over the world.
An analysis by the Tokyo-based investment bank Nomura looked at a sample of more than 50 manufacturers that have already left China in order to avoid President Trump’s tariffs and found the departures will have huge implications for the Chinese economy.
“It is not just short-term trade diversion; medium-term production relocation has also started,” Nomura research analysts Sonal Varma and Michael Loo wrote in a note published Wednesday. Trade diversion occurs when companies divert production from China. Production relocation is the establishing of new supply chains.
Companies leaving China, including manufacturers of electronics, apparel and electrical equipment, are heading to neighboring Vietnam, Taiwan and Thailand in droves. They're also reloacting in places like Mexico and the U.S.
I'm not saying that we are winning I am saying that if we were it would look a lot like this
Comments
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I read an interesting article about how China's manufacturing sector is so large and so diverse and sophisticated that even if a company would like to move their manufacturing, depending on the technical sophistication of what is being manufactured, Vietnam and Thailand are going to take years in order to ramp up and be able to handle it.RaceBannon said:https://foxbusiness.com/economy/trade-war-companies-fleeing-china
The more than yearlong trade war between the United States and China is shaking up supply chains all over the world.
An analysis by the Tokyo-based investment bank Nomura looked at a sample of more than 50 manufacturers that have already left China in order to avoid President Trump’s tariffs and found the departures will have huge implications for the Chinese economy.
“It is not just short-term trade diversion; medium-term production relocation has also started,” Nomura research analysts Sonal Varma and Michael Loo wrote in a note published Wednesday. Trade diversion occurs when companies divert production from China. Production relocation is the establishing of new supply chains.
Companies leaving China, including manufacturers of electronics, apparel and electrical equipment, are heading to neighboring Vietnam, Taiwan and Thailand in droves. They're also reloacting in places like Mexico and the U.S.
I'm not saying that we are winning I am saying that if we were it would look a lot like this
https://www.wsj.com/articles/for-manufacturers-in-china-breaking-up-is-hard-to-do-11566397989 -
For some products. Especially things like steel or automobiles. But not for a lot of smaller assembled products. Definitely a good start. Unless you are a chicom lover.
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Shenzhen is still going to be Shenzhen until the bottom falls out for the CCP.SFGbob said:
I read an interesting article about how China's manufacturing sector is so large and so diverse and sophisticated that even if a company would like to move their manufacturing, depending on the technical sophistication of what is being manufactured, Vietnam and Thailand are going to take years in order to ramp up and be able to handle it.RaceBannon said:https://foxbusiness.com/economy/trade-war-companies-fleeing-china
The more than yearlong trade war between the United States and China is shaking up supply chains all over the world.
An analysis by the Tokyo-based investment bank Nomura looked at a sample of more than 50 manufacturers that have already left China in order to avoid President Trump’s tariffs and found the departures will have huge implications for the Chinese economy.
“It is not just short-term trade diversion; medium-term production relocation has also started,” Nomura research analysts Sonal Varma and Michael Loo wrote in a note published Wednesday. Trade diversion occurs when companies divert production from China. Production relocation is the establishing of new supply chains.
Companies leaving China, including manufacturers of electronics, apparel and electrical equipment, are heading to neighboring Vietnam, Taiwan and Thailand in droves. They're also reloacting in places like Mexico and the U.S.
I'm not saying that we are winning I am saying that if we were it would look a lot like this
https://www.wsj.com/articles/for-manufacturers-in-china-breaking-up-is-hard-to-do-11566397989
They've built up a competitive advantage in that sphere.
All the other manufacturing is going to accelerate out of China rapidly though.
Knock on effects from demographics, China no longer being as cheap as it once was, and a slowing economy.
Just hope that the new South East Asian Tigers off set a slowing China for the global economy.
That and the greedy assholes at the top of the banking world haven't built too many secret tunnels to the CCP shady banking system that their currency crisis fucks the rest of the world too.
