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> hardcore protectionism long term only ensure your domestic industry lags behind technologically and falls behind globally. Is that a real issue though ? Chin
by pjerem 3y ago
> hardcore protectionism long term only ensure your domestic industry lags behind technologically and falls behind globally.
Is that a real issue though ? Chinese cars don’t seem like they are technically superior to European cars, they are just cheaper for the same prestation (I’m not saying they are worse overall because I know Chinese companies can build great products. But like every other Chinese manufactured product, it’s cheaper because working conditions are worse, social security is worse and the Chinese government is subsidizing the sector heavily.
There is also a huge imbalance between raw materials prices for Chinese companies and the rest of the world, it’s a known fact that china materials are cheaper for local companies than for export.
So their advantage isn’t on the business but rather on the geopolitics side. And that’s not something you can fight with competition, that’s something you must fight with politics, and protectionism seems totally justified in this situation.
- Rinzler89 3y ago>it’s cheaper because working conditions are worse, social security is worse and the Chinese government is subsidizing the sector heavily. Isn't this the same for every product made in China vs made in the West? Your smartphone, your laptop, your sneakers, etc they're all made by Chinese workers with much less wages and social benefits/protections than workers who would be making them in the west. Why no big tariffs on those to protect our local electronics/clothing manufacturing industries?
- pjerem 3y ago> Isn't this the same for every product made in China vs made in the West? Yes it is. > Why no big tariffs on those to protect our local electronics/clothing manufacturing industries? I don't know :)