Companies like Apple need to be careful as most of their products still are Chinea based.
As expected the first country has come out and offered manufacturers incentives to move back home and out of China. Japan offered $2.2 Billion to tempt manufacturing back home and out of China. Not a huge amount as more will be needed, but it is the start. I
I have been reading more and more negative sentiment on China and government officials talking about reducing their bread basket from China. I believe this is the one positive thing that has happened from this wake up call and hope to see industry returning home where they should have been all the time.
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China has very few raw materials yet they have taken the lion's share of manufacturing from the rest of the world. This is not a healthy practice as having such a dominant player does have consequences. They become bigger and bigger and everyone has to just accept the quality and pricing that follows.
The Chinese Government assisted manufacturing companies so this was possible offering them incentives and special rates on export orders to obtain the foreign currency. Factories could still make money by selling things close to cost prices as they had the profit tied up in government back handers.
For this to work other countries need to do what Japan is offering with assistance and Government subsidies. This will create jobs again and will be a healthier world economy. I have never been pro China and will be happy if the world takes back their industry.
Over the last 2 decades the world has become lazy relying on China for everything. Governments and industries have been "captured" by the Chinese in one sided deals that don't make financial sense. The world has forgotten what quality is and has replaced it with pricing. Most things we buy today are throw away items as they will never last.
I just don't get it as the Chinese buy the raw materials and then have to import them back to their country. Manufacture the items and then send it back yet they are still cheaper than what companies can manufacture locally. China doesn't have cheap labor like they used to 20 years ago so local products should be cheaper if the Government assists.
I know in South Africa there is very little manufacturing happening yet the amount of raw materials it has is plentiful. The Chinese have monopolized the steel manufacturing world wide and I blame the governments for allowing it to happen. This is the perfect time to start taking things back looking after your own people first.
I just think the current climate is terrible as look what has happened with government procurement's. I have heard of Spain, Turkey, UK, USA and France complaining about the quality of things received. These were items crucial and required by the hospitals yet they were sub standard. Surely something that important should be made by the country using them and not outsourced.
