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Not so sure yet. I doubt Beijing will try at this time. Moreover I feel it's good for China to force it to rely on internal consumption instead of exports at a
by dragonsh 7y ago
Not so sure yet. I doubt Beijing will try at this time. Moreover I feel it's good for China to force it to rely on internal consumption instead of exports at a faster pace. The problem is changing the mindset will take long, so not yet sure how will it work. One friend moving a production to Vietnam faced a lot of challenges, costs escalated and it cannot fulfill the demands yet. It will take 10 or more years for Vietnam to reach China's skilled workforce capabilities for production.
Also move to Vietnam is happening since 2008, like Samsung and Lotte moved there due to shrinking market in China and missile shield row between China and USA.
Moving productom to Taiwan and South Korea will increase the costs with more upfront capital expenditure and still they won't be able to fulfill the demands. At present there is a attacks on global trade which will impact everyone. You can see the signs already with conflict between Japan and South Korea. Germany, Singapore facing technical recession and USA went back to loose monetary policy and reduced interest rate.