As if others will just stay down and take it if they do that. The primary concern for most countries will be to save their own industries first.
I don’t see the problem here. This is exactly how China closed its technology gap in the past decades: have a bunch of factories from foreign companies opened in your territory so that you can learn how they do things. Now the beneficiaries will be others 🤷
Looks like China’s response to trade barriers is to go global with its factories, especially for green tech like EVs and batteries. Smart move, but it’s definitely going to shake things up economically and politically. Wonder how this ‘Made Everywhere’ strategy will play out for China and its partners.
Good. Force them to make joint ventures in EU and pay very close attention to the countries that have bilateral trade agreements with EU.
Which world? First or third?
I think it will be somewhat of a win-win… Jobs and wages will be kept in Western countries, some revenue and knowledge will go to China. And if there’s no tariffs on car parts… They could partly maintain that in China and still export those.
Alright, then let’s do it like China does: A Chinese company in Europe (EU) can only be a joint venture with (at least) 51% being owned by a local company. The taxes and revenues are paid in Europe. The workers are European.
i mean yes , whats the issue here ?
What irony: Western companies outsourced their factories to China. China earned big bucks. Now China wants to outsource their factories to the West, which is going to harm Western companies.
The big losers are going to be the Western companies that originally made thousands of people unemployed just so the people on top could make more money. Except they them personally won’t be the losers as they have money to stay cushy. The people on the floor is going to be the losers. As always.
It’s funny because that is what they were going to do anyway because of their rapidly declining population and aging population as well as the road and belt strategy, so… win for China I guess
An easy solution is like they do, if they open a shop, it has to be a 50% joint venture with a local company… (and yes, that is the rule for every company that wants to do business in China)
What’s in for China? They won’t employ their own workers in these factories. They have to invest in foreign countries, pay wages and taxes there and use foreign supply chains, if they want to work somewhat economically…
It won’t generate them nearly the same amount of hard cash they do now and they won’t be able to employ their population in factories that run at overcapacity to produce cheap exports.
They would probably build the cars in Turkey rather than Germany or France and in Mexico instead of the US, but still that would require large investments and they would still operate at higher costs.
s h i t
After Covid, they already did that: simply establishing factories across the border in Vietnam, which has even lower labour costs to boot.
Great move. Put factories next to or near sources of raw materials.
Let’s see what Chinese workers think of that idea.
damn those Chinese and their *shuffles the card* job creation
30 years ago Europe and USA opened factories in China, now China opening factories in Europe… How it all changed… Very interesting history….
And they only have to pay 10€ more than the locals and the local factories will have to close too.
To be fair, this sounds familiar.
and populate them with chinese workforce rather than local. seen it frequently
How can we even counter this?
What could we do if they opened a factory in Mexico or Turkey?
All them years of companies desperate to increase margins opening factories in China etc and now we’ve come full circle with China doing the same.
22 comments
As if others will just stay down and take it if they do that. The primary concern for most countries will be to save their own industries first.
I don’t see the problem here.
This is exactly how China closed its technology gap in the past decades: have a bunch of factories from foreign companies opened in your territory so that you can learn how they do things.
Now the beneficiaries will be others 🤷
Looks like China’s response to trade barriers is to go global with its factories, especially for green tech like EVs and batteries. Smart move, but it’s definitely going to shake things up economically and politically. Wonder how this ‘Made Everywhere’ strategy will play out for China and its partners.
Good. Force them to make joint ventures in EU and pay very close attention to the countries that have bilateral trade agreements with EU.
Which world? First or third?
I think it will be somewhat of a win-win… Jobs and wages will be kept in Western countries, some revenue and knowledge will go to China. And if there’s no tariffs on car parts… They could partly maintain that in China and still export those.
Alright, then let’s do it like China does:
A Chinese company in Europe (EU) can only be a joint venture with (at least) 51% being owned by a local company. The taxes and revenues are paid in Europe. The workers are European.
i mean yes , whats the issue here ?
What irony: Western companies outsourced their factories to China. China earned big bucks. Now China wants to outsource their factories to the West, which is going to harm Western companies.
The big losers are going to be the Western companies that originally made thousands of people unemployed just so the people on top could make more money. Except they them personally won’t be the losers as they have money to stay cushy. The people on the floor is going to be the losers. As always.
It’s funny because that is what they were going to do anyway because of their rapidly declining population and aging population as well as the road and belt strategy, so… win for China I guess
An easy solution is like they do, if they open a shop, it has to be a 50% joint venture with a local company… (and yes, that is the rule for every company that wants to do business in China)
What’s in for China? They won’t employ their own workers in these factories. They have to invest in foreign countries, pay wages and taxes there and use foreign supply chains, if they want to work somewhat economically…
It won’t generate them nearly the same amount of hard cash they do now and they won’t be able to employ their population in factories that run at overcapacity to produce cheap exports.
They would probably build the cars in Turkey rather than Germany or France and in Mexico instead of the US, but still that would require large investments and they would still operate at higher costs.
s h i t
After Covid, they already did that: simply establishing factories across the border in Vietnam, which has even lower labour costs to boot.
Great move. Put factories next to or near sources of raw materials.
Let’s see what Chinese workers think of that idea.
damn those Chinese and their *shuffles the card* job creation
30 years ago Europe and USA opened factories in China, now China opening factories in Europe… How it all changed… Very interesting history….
And they only have to pay 10€ more than the locals and the local factories will have to close too.
To be fair, this sounds familiar.
and populate them with chinese workforce rather than local. seen it frequently
How can we even counter this?
What could we do if they opened a factory in Mexico or Turkey?
All them years of companies desperate to increase margins opening factories in China etc and now we’ve come full circle with China doing the same.