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Every (sane) company now has a China+1 strategy, mainly manufacturing for Chinese audience in China, and elsewhere for other audiences. It's easier to decouple
by pragmomm 2y ago
Every (sane) company now has a China+1 strategy, mainly manufacturing for Chinese audience in China, and elsewhere for other audiences. It's easier to decouple from China now, much easier than 3 years ago.
- nothercastle 2y agoAnd the +1 could never scale to the same capacity as China. Especially not at the same time. You can’t decouple from China, the global economy barely decoupled from Russia and even then it’s questionable how much decoupling actually occurred
- mensetmanusman 2y agoChina is losing a million workers a year and accelerating.
- pragmomm 2y agoIt just takes time. China took a while to get to the efficient process as well. So will Vietnam, and India, and Philippines.
- culi 2y agoAs I quoted, China went from 5% of global production to 35% in just. It's literally never been more difficult to decouple from China
- djohnston 2y agoYour data point ends at 2020. Hmm.. what could have happened that year that would have spurred businesses to decouple from China. Hmmm… cough
- fancl20 2y agoWTO, IMF have yearly reports and IIRC one of U.S. Central bank branch have published report about this. TL;DR version is there's a trade flow reshuffle but China's trade percentage barely changed. As most traditional economic theories suggested and predicted, China sells more to ASEAN, South America and they sell more to U.S.