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China’s plan to get around Western tariffs: Fill the world with factories (english.elpais.com)

submitted 1 week ago by schizoidman@lemm.ee to c/worldnews@lemmy.ml

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[-] switchboard_pete@fedia.io -2 points 1 week ago

"it's just supplemental" would have initially worked to describe us industry shifting out

investment is finite, so if you have the choice between a and b, investing more money in a is by definition investing in a at the expense of b

[-] yogthos@lemmy.ml 12 points 1 week ago

This problem only occurs in capitalist economies where finance capital directs development. Meanwhile, all the critical economy in China is state owned. In fact, the share of private industry in China has been shrinking. https://www.piie.com/research/piie-charts/2024/chinas-private-sector-has-lost-ground-state-sector-has-gained-share-among

[+] switchboard_pete@fedia.io -8 points 1 week ago

it occurs when it's economically more efficient to move industry out of your country than to keep it in

unless you're suggesting china will willingly run the bulk of its industry with decreasing efficiency over time for the sake of keeping lower paying jobs domestically

These developments look increasingly structural. The authorities' stance since 2020, including regulatory tightening and zero-COVID lockdowns, appear to have inflicted long-lasting damage to China's private economy, the dynamism of which was a defining feature of its economic miracle in the past four decades. Nearly 20 months into China's COVID reopening, the private sector has yet to bounce back, despite many pro-private business utterances and gestures from China's leadership.

i'm not sure private businesses failing over covid is a good thing for an economy

[-] DeathsEmbrace@lemm.ee 5 points 1 week ago

I disagree with your last point. A lot of companies should have sunk in covid and been consumed by more prepared ones. The governments didn’t want it to happen and they proved we actually live in a social net capitalist economy. This way if rich people accidentally lose we can remember socialism exists for them alone.