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Comments by "peabase" (@peabase) on "Germany sends naval warship to the South China sea | DW News" video.
@ee9546 Sure, "the West" has outsourced much of its manufacturing to China, but it can outsource it to other countries with cheap labour, too. In fact, the latter is an ongoing trend.
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Punishing your customers isn't a sound tactic in my book.
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@ee9546 But it is happening already. Vietnam and India are already major contenders in outsourced manufacturing. Especially in clothing, major brands are moving their production away from China because of the forced labour issues in Xinjiang. You should keep up with the news.
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@ee9546 I don't understand your point about the difficulty of repatriating profits. Firstly, China is widely considered to be the most restrictive in this respect. I should know, because I'm co-owner in two China-based JVs. It's fun to take luxury-laden trips to China without spending any money of my own, but that's what I get out of them. Secondly, outsourced manufacturing doesn't generate profits in itself -- the profits are made elsewhere. The outsourcers are just paying for final assembly, which doesn't even net the outsourcee that much. It's a public secret that China's huge trade surplus belies their modest added value. I'm thinking I understand the new world better than you do. Multinationals are taking a long, hard look at their supply chains and hedging their bets so as not to be as dependent on China as before. China's outsourcing industry is visibly concerned.
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