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> but much harder to popularize scrutiny of “American” companies whose products are entirely developed by Chinese teams with little to none domestic oversight
by alephnerd 2y ago
> but much harder to popularize scrutiny of “American” companies whose products are entirely developed by Chinese teams with little to none domestic oversight
That decoupling has begun happening for around a decade now in regulated industries - especially anything Defense or Defense Adjacent.
That said, there are different value chains with differing levels of urgency, and there is a need to differentiate between them.
For consumer and commodity products, continued R&D with China is fine nor is there an active need to rapidly decouple aside from as a negotiating tactic over anticompetitive behavior by Chinese players supported by a mix of federal and local governments. That said, there is an organic decoupling happening for around a decade now due to the 2015 recession, the SK-China Trade War (2017), the Japan-China Trade War (2014), the Taiwan-China Trade War (2013), the harshness of Zero COVID (a factory could get shut down for a month if even a single employee was found to be COVID positive! and higher operating costs that lead manufacturers and capital those countries to return to India, Indonesia, and Phillipines, and enter Vietnam (a major reason for their decade of 7% GDP growth).
For the defense and regulated supply chain, there is an active need to decouple, and this already started under Obama 1 and continues under Trump and Biden. Also, the supply chain for this industry remained in the wider NATO+ due to higher margins being able to support manufacturing, development, and compliance.