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Wouldn't the labor cost be amortized over millions and millions of units of production? Yeah, I'd be happy if the cost comes from labor. I worry instead that th
by hintymad 2y ago
Wouldn't the labor cost be amortized over millions and millions of units of production? Yeah, I'd be happy if the cost comes from labor. I worry instead that that cost comes from the fact that we can't mass produce any more and we don't have robust supply chains, especially in the light industry. China's strategy is much more clever than that of the Soviet Unions because China has built a massive light industry, which produces all kinds of components for the heavy industry if needed. And the booming light industry also becomes the source of innovations.
- Ekaros 2y agoAlso what makes China so special is ability to iterate on new complex products. Say small drones. Everyone involved is in close proximity and you can prototype in rapid cycle due to low lead times. If you can get various parts in hours or days instead of weeks, well you can do lot more.