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Fight back how? The way this works is that Chinese people consume less than what they produce. Extreme example would be that Chinese workers are slaves who only
by RivieraKid 2y ago
Fight back how? The way this works is that Chinese people consume less than what they produce. Extreme example would be that Chinese workers are slaves who only get the food necessary for survival. How do you compete with that strategy?
The correct counter-strategy is that all major economies - USA, EU, India, etc. - enact tariffs.
- constantcrying 2y ago>How do you compete with that strategy? Make better products, make products faster, make products more efficiently. >The correct counter-strategy is that all major economies - USA, EU, India, etc. - enact tariffs. This just means giving up. And admitting that you can't compete.
- RivieraKid 2y agoBut companies already try to make better products and make them more efficiently, because it leads to higher profits. So what exactly would you do to make a European manufacturer competitive with Chinese one, that essentially uses slave labor? Let's say you tell them - cut your costs by 30% or die. They can't do that and they die. What now?
- constantcrying 2y ago>But companies already try to make better products and make them more efficiently, because it leads to higher profits. Maybe, but only competition forces you into innovation. Companies very much like to do things they are already doing, that is easy.
- lossolo 2y agoWhat are you talking about? Have you seen Xiaomi EV car factory? Most of labor is done by robots. And part of labor that needs to be done by humans can be exported to India where labor is cheaper than China.
- RivieraKid 2y agoI'm talking about China subsidizing producers at the expense of consumers. See Michael Pettis' book or Twitter.