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> So why was it necessary to shift production to China? It wasn't necessary. You're conflating necessary with desirable. The gap between the two is an increas
by adventured 4y ago
> So why was it necessary to shift production to China?
It wasn't necessary. You're conflating necessary with desirable.
The gap between the two is an increased profit margin, which is desirable for most corporations.
Further, the CCP is becoming both dramatically more hostile to business in general and more dangerous as a foe to liberal, democratic nations (including Taiwan most prominently), while simultaneously the financial cost of operating in China has continued to climb by the year (which is a trend that is unlikely to significantly reverse). The China discount for offshoring isn't nearly what it was 15-20 years ago.
The disaster that Russia is causing in Europe is a small hint of what China might cause in Asia in the coming decades. Russia's perceived capabilities weren't nearly what the West thought they were; China's military capabilities are more likely to exceed our expectations (in recent history China has more commonly followed the path of hide your strength and bide your time, as opposed to Russia's vacuous boasting), and it's backed up by a gigantic economy with manufacturing that Russia could only dream of.
- baybal2 4y ago[dead]