I'm no economist, but I'm not seeing how "new offshore trade" is any better than outsourcing.
Just my impression.
The term outsourcing usually means to find the product somewhere else, not using nearby or own capabilities as alternatives.
Apple, they outsource everything.
What seems to be happening here, as Goldman referred to, is more like vertical integration and horizontal integration.
BYD, they are vertically integrated, because they own raw materials, to make the battery, for the electric car.
Now with global expansion, Chinese companies are not outsourcing, they are doing horizontal integration across borders.
One effect of this type of economic activity, the horizontal integration across borders, is that it spurs economic development and opens new markets. Since China is doing this across borders, this is a method of creating new markets and market access.
When we see Chinese brands of EVs on the roads of Brasil and Indonesia, as some recent article somewhere has reported, that is what is going on here.
Chinese companies are not abandoning Chinese manufacturing, like how Apple abandoned American manufacturing, Chinese companies want to globalize their businesses from production to sales.
This is just my impression, and I hope this is clear, because it is logical for the lean and mean and ultra competitive Chinese company to do that.
Go global Chinese style, build production capacity on foreign soil, then have the Chinese sales team do the selling for the local market.
Geez, I just realized I could have written this instead.
American outsourcing, get the Chinese to do it.
Chinese outsourcing, get the Chinese to do it.
That is exactly what is going on, but sometimes it is good to go over the details.
