4 ms·
I love how the capitalist laws of markets that instigated the rise of China as a the main ship builder - cheaper labor, automated production, low cost of all th
by dluan 11mo ago
I love how the capitalist laws of markets that instigated the rise of China as a the main ship builder - cheaper labor, automated production, low cost of all the source materials also coming from China - don't seem to apply for the people making the argument of protectional national strategic industries.
This is no different than any other industry. Unless you are on the cutting edge of a product where innovation is still being pushed, then your industry is going to be eaten up by China.
The UK at its peak was producing 1.4M in ship tonnage, now it produces zero. The US currently produces 69k in ship tonnage. China produces 37M in ship tonnage. Even if you can scale back to the historic peak, it's nowhere near enough. The difference between zero produced ships a year and 3 per year or 30 per year may as well be zero when China is producing 3 per day. It's over.
- busterarm 11mo agoLabor cost is like 1% of shipbuilding cost. Also China just followed Japan's playbook, who did it first after WWII. It's entirely about the financing model and heavy cooperation between the State, Banks and Shipbuilders.