Trade war update

Comments

• SFGbob Member Posts: 31,920

  

  

  September 2019

  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

  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.
  
  https://www.wsj.com/articles/for-manufacturers-in-china-breaking-up-is-hard-to-do-11566397989

  0 · Share on FacebookShare on Twitter
• WestlinnDuck Member Posts: 13,821

  

  

  September 2019 edited September 2019

  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.

  0 · Share on FacebookShare on Twitter
• UW_Doog_Bot Member, Swaye's Wigwam Posts: 14,166

  

  

  September 2019

  SFGbob said:

  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

  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.
  
  https://www.wsj.com/articles/for-manufacturers-in-china-breaking-up-is-hard-to-do-11566397989

  Shenzhen is still going to be Shenzhen until the bottom falls out for the CCP.
  
  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.

  0 · Share on FacebookShare on Twitter