Comment by Grombobulous
5 hours ago
I think Western people still call this situation “outsourcing” when in reality what is happening is that China is better at manufacturing than everyone else, and they’re starting to be better than everyone else at design and engineering, too.
When we buy software from Silicon Valley or a nice Mercedes Benz from Germany we don’t use this same language “outsourcing.”
Colloquially, outsourcing implies low quality or cheap price. No, what’s happening here is that China makes the best products in numerous categories and we are choosing to import them, because the best products are the most desirable.
The west is interested in funneling most of the money to the top no matter what for the last 60 years that has been the drum beat/cry It can’t be done. It can’t be done.
In America, there is one fast food place that does it differently than everyone in the market they don’t franchise and they don’t lease/rent.
They own everything as they expand (the land and the building), which means it’s a little bit slower when you expand, but they don’t care but they are very profitable.
The owner probably gets a call every other week from large equity companies trying to sell them on doing it like everybody else and their pitch they can make you a worldwide company if you just let them in to f you.
Well at this point they are probably the only country in the world that can produce a car end to end starting from the raw iron ore and other elements up to the chips and software that runs on them (I’m sure they will still need to import some small stuff probably like Rhodium or Iridium maybe), who is going to compete with that? Everything done in country, no tariffs at all throughout the entire production cycle.
That said some of these industry especially metallurgical ones will never return to Europe or US as they basically destroy and pollute the environment on a large scale, in China that still seems acceptable but also might change promoting them to outsource to other countries which they already do in some areas I think.
I find it quite strange en people take a development that has happened over the last ~50 years, little more than half a lifetime, and confidently state that now "it will always stay like this". Things always change.
Imagine what those kinds of people would have said in China in the 70s, with western industries being vastly more advanced and efficient. "It's over, we will never catch up." they would probably have said. Wrong then, more wrong now.
> China that still seems acceptable
China has made a tremendous effort to move to a clean(er) industrial system, using a lot of renewables and clean energy and improving environmental standards. At this point production in China is probably the best for the environment compared to most countries, including the US that is deeply invested in oil production.
China evidently is pushing to move to sodium ion batteries. They didn’t have to. They could’ve stuck with lithium. I’ll let you guess what what would’ve happened in the United States they would’ve said we don’t have to this lithium already works. Why do you want to upset the Apple Cart.
They are also moving close to a point where they will bring Thorium Reactors on line they don’t have to. They could just stick with uranium, but they’re not.
Is this part of the fact that they have engineers running a lot of of the things at the top of their government instead of lawyers?
They seem to be building a lot of infrastructure they are in the process of building several dams on the Brahmaputra River.
https://en.wikipedia.org/wiki/Medog_Hydropower_Station
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United States: 384 gCO2/kWh
China: 525 gCO2/kWh
https://ourworldindata.org/electricity-mix
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Fair point. Outsourcing was not the right word to use, China today makes products over all quality ranges and almost always they are cheaper than any other alternative. “Giving away” would be a better word.
I think it’s a matter of perceptions catching up to reality. 15 years ago China was definitely still ripping off american products down to the english silk screening.
China didn't get that way by magic. They ran the same playbook that allowed Alexander Hamilton to snatch manufacturing from Great Britain to the US, and the US gave up manufacturing for the same reason the UK gave up manufacturing (suppression of labor interests).
It will be interesting to see what China does. They aren't ideologically committed to exclusively serving the interests of the wealthy, but they still have lots of rich people in the (ahem) Communist Party, so who knows.
China and Vietnam are the only countries worldwide which have executed bankers for corruption in recent decades. No ahem necessary.
It's striking that they recently arrested one of the richest men in the country, the Evergrande founder, for fraud. Seems unthinkable in the US/Europe right now.
Were they guilty?
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I can't imagine it going any other way than what we've seen from every other country in your set of examples, honestly.
China actually penalizes, imprisons, and even executes its billionaires, so that’s different.
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The industrialization of USA comes after the civil war, thus long after e.g. Charles Dickens, to say nothing of Hamilton.
Hamilton set the strategic agenda. Do you want to argue that US industrialization didn't follow the broad strokes of this plan?
https://en.wikipedia.org/wiki/Report_on_Manufactures
https://en.wikipedia.org/wiki/American_School_(economics)
Parallel: the industrialization of China for the most part happened after Deng Xiaoping, but are people wrong to credit him for setting the course?
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It's manufactured in Taiwan.