When you work for the Devil you'd better get rid of your conscience.
Trump 2.0 official thread
- Thread starter siegecrossbow
- Start date
When you work for the Devil you'd better get rid of your conscience.
Are they using CN strategy?
Anyway, i read before in twtr, that some CN car parts comps were building their supply chain in US before? Incase for byd? Is it true or false?
Anyway, i read before in twtr, that some CN car parts comps were building their supply chain in US before? Incase for byd? Is it true or false?
That guy is literally going to destroy the US if he doesn’t stop for one second tho think that maybe before making such stupid decisions, about whether the blow back is worth it and also whether in the face of such a decision if any nation would want to invest in this dirt hole of a country with the debt as high as it is and with its supply chains all but buggered as of now
What they are suggesting is in no way CN strategy. CN built their industry via joint ventures in the beginning, at the time they didn’t have the technical expertise, therefore use the joint ventures as a means of acquiring it.
The current US strategy is more similar to the period of time around the first Industrial Revolution. The US used tariffs as a means of government income as well as a driver for internal industrial development, at the time essentially by copying from Europe.
BYD was aiming to sell cars in the US but was never able to, I remember they explored the possibility of building a Car factory but didn’t really go anywhere. They do however have an electric bus factory in California, and the last I know they were still operating.
Other car manufacturers, include Nio, Xpeng, GWM and a few other, mainly electric car brands were also exploring possibilities but again went nowhere. Not sure about right now with the tariffs tho.
The whole thing was more the US gov blocking based on national security because of how connected electric cars had to be.
US will likely lose fewer jobs simply because it has 1/4 the population, less complex infrastructure, etc. However that disparity cuts both ways, and the Chinese number of 10 million (or ) needs to be scaled against the . I saw some estimates of it representing around three months of job creation under normal conditions. Certainly not nothing, but also not a catastrophe.
On a related note, Temu has started displaying "Import charges" during checkout.
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The US believes it can get away with this strategy because it is a financial super power. Companies will be tempted to build their entire supply chains in the US because the US consumer and government subsidies can make it worth their while. Or so the logic goes, it remains to be seen whether there's any actual way this works, since if you don't get enough companies taking the bait, you'll just build a rent seeking industry that survives entirely off of subsidies and the captive market, and which never becomes globally competitive.
China was smart enough not to fall into this trap in most industries, because it strategically used subsidies to create globally competitive companies, and then forced them to compete globally via welcoming world class competitors like Tesla into the domestic market.
The exception is internet companies. Unfortunately, Baidu is a great example of what happens when you only have the first half of the strategy and not the second half. Not having to compete at all with Google, Baidu effectively became just a rent seeking company living off of a captive market and never became globally competitive.
AssassinsMace
Lieutenant General
China hasn't closed off the world to trade. The US has.
plawolf
Lieutenant General
There is an interesting phenomenon that has been well documented where western youth in general, and American in particular, are irrationally self confident. Where they would consistently score the highest in the world on surveys about how well they felt they did in tests despite the fact they score near the bottom when it comes to actual test results.
In many ways, the modern American economy is built upon the foundation of that irrationally strong sense of self confidence and invincibility in Americans. The financial markets lives and dies on investor confidence, that is how share prices can climb so ludicrously high in American stock markets so easily and so consistently, which in turn underpins high wages, real estate value, basically everything that the modern American way of life is built on despite America making less and less tangible, physical goods.
Physical good scarcity and even the outright lack thereof is one of the system shocks that could bring down the house of cards the entire US economy has become with vast amounts of paper only wealth.
People have collectively been willing to wilfully suspending their scepticism to accept that all those growing zeros on their portfolios and house prices are real and realisable just as soon as they decide to cash out, because they can’t even imagine it could be otherwise. Empty shelves is one of those things where people don’t need to imagine, it’s right in front of their eyes, unavoidable and inescapable. And it’s the kind of thing that starts to make people seriously question, probably for the first time in their lives for many, just how much value the paper and plastic in their wallets actually hold.
Once that sentiment become widespread, it can rapidly become a self feeding loop where people rush to cash out their paper wealth to convert into physical goods, emptying shelves even more and driving up prices and the growing sense of panic.