China
China produce cheap goods for the world
China produces cheap goods for the world. It helped the people in other countries to have a better quality of life. The global consumes can buy the cheap, good quality products from China.
In the earlier years, the cheap goods were produced because China's cost of labor was low. The wages have increased over the years, and they are now higher than developing countries.
However, China was able to continue to be competitive as they increased productivity through automation and introducing more efficient processes.
Some countries, particularly America, wants to decouple with China. They have to produce these products at home or move the production to other developing countries. This move will increase the manufacturing, and create quality and supply chain issues.
It will take many years for these countries to create an alternative production base outside of China.
While the decoupling may cause China to lose their export markets, the economy of China has reached a size that allows the production to be done for internal consumption.
China's internal economy is large enough for it to achieve an efficient scale of production. China does not depend on the global markets as it can focus on its domestic market.
It is likely that China will be able to work in cooperation with many countries in Asia, Africa and South America.
The western countries now sell high technology products, machinery and high fashion products to China. Their industries will suffer from a loss of access to the China market.
A decoupling of the economic ties will hurt the western countries more than China. Their people will have to pay higher prices for their products.
Vote - Decoupling will hurt the western countries more than China
Tan Kin Lian
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MNC can relocate a factory in 2 years along with key people and supply chains. MNC are agile. The challenge really is for small business and supporting ecosystem.
Import/Export taxes will help decouple the world. We will all be in a better place.
Right now massive money/labour laundering is happening via global trade. There is no visibility on the ethics related to how products are produced.
Decoupling will make business more accountable.
People need to care for each other.
Media, politicians, bu
Chaos 04 Feb 2022