this post was submitted on 24 Apr 2025
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[–] godot@lemmy.world 135 points 7 months ago* (last edited 7 months ago) (7 children)

Why would China be desperate?

China offers the cheapest high spec manufacturing in the world. If the US doesn’t buy that manufacturing, that leaves the rest of the world. Of course China wants American money, but it’s not going to devastate their economy in the short term. It’s a reasonable cost for providing China with so many opportunities, which they are aggressively pursuing, to cultivate deep seated international power.

The prevalence of Chinese manufacturing actually is a national problem for the US. While China has its pick of buyers, the US is stuck with one seller. The US should have been working for twenty years with India, Pakistan, Brazil, Indonesia, Vietnam, and maybe even some counties in Africa to create access to alternatives. It didn’t.

Weaning the US off Chinese manufacturing would take decades of elegant economic policy and diplomacy featuring several countries. China knows this is where it actually has power over the US.

[–] Milk_Sheikh@lemm.ee 36 points 7 months ago

I have worked professionally with Chinese vendors and suppliers for years, both pre and post COVID. China offers the whole range of manufacturing, not just cheap labor but high tech and precision devices too. You want cheap injection molded toys for Happy Meals? Done. Precision machine tools for CNC? Can do. Medical imaging devices? No problem. Mass assembly of automotive cable looms? Easy. If a business wants quality product from China they can do it.

And much like the classic European model where a textile or steel industry would collect in a valley for logistic/resource reasons and organically form an industrial ‘core’ the same is true in China, but with a centralized planned economy. Vocational schools feed local industry with skilled workers like engineers or tool and die makers, so that region experiences further and further specialization and conglomeration.

There’s no coherent or comparable manufacturing:educational alliance in the US, closest we have is ‘feeder schools’ that partner with individual industrial/scientific giants on an ad-hoc basis.

[–] coyootje@lemmy.world 28 points 7 months ago (1 children)

I hope they don't back down, even if that orange whimp ends up pulling back the tariffs. Don't re-engage with the US until they elect a decent leader. They should really feel the impact of electing such a moron for a internationally significant role.

[–] WhatAmLemmy@lemmy.world 18 points 7 months ago

Yep. If America doesn't have a severe depression &/or civil war, the mental illness of MAGA will continue destroying the country from within, and wreaking havoc with global stability.

[–] match@pawb.social 23 points 7 months ago (1 children)

China has been working with African countries for decades to build their supply lines. The US has had a blind spot over Africa the whole time

[–] DragonTypeWyvern@midwest.social 6 points 7 months ago (1 children)

Not true, they've just done a better job and built infrastructure instead of corrupt power networks based on the threat of regime change

[–] Snowclone@lemmy.world 6 points 7 months ago

What do they got better principals than us? Wait are we the bad guys?

[–] jaxxed@lemmy.ml 3 points 7 months ago (2 children)

You're absolutely correct on the US topic, but one comment on the Chinese side: China does suffer from an excess of export focused production. Their excess of production capacity is artificial (created by Goverent investment) and has resulted in the need for continued Government cash injections.

The Chinese government investment injection has resulted in significant leads in at least two international markets (EV, and solar panels perhaps batteries by volume.) The cost has been a parge amount for waste and loss of public money (there were a lot of of losses in their recent tech/chip investment for example.)

These losses came at a hard time when the general popilation was suffering from significant equity loss, mainly real estate. There is an argument to make that trying to spur the domestic market would be better than investing in overcapacity.

[–] superniceperson@sh.itjust.works 6 points 7 months ago (1 children)

...You understand the primary market for Chinese products, especially ev and solar, is Chinese citizens, right?

Its not even close.

[–] jaxxed@lemmy.ml 1 points 7 months ago (2 children)

Hmm, Chinese are a target for EVs, but the production capacity clearly exceeds Chinese civilian purchasing power.

[–] superniceperson@sh.itjust.works 3 points 7 months ago (2 children)

... Yes that is how production works in a healthy economy. You have multiple companies competing for the same consumers, resulting in over production.

Cars are a luxury object that are entirely unnecessary, so they aren't a centrally planned industry.

The extra then gets sold off. But the fact you simply cannot buy most Chinese ev brands outside of china (and some belt and road countries) kinda proves the point. Besides BYD and Rivian, you're not finding many Chinese evs outside of china, and those are just two of the top twenty manufacturers.

[–] jaxxed@lemmy.ml 2 points 7 months ago

You have a good point.

[–] jaxxed@lemmy.ml 1 points 7 months ago (1 children)

EVs have no central planning in China?

[–] superniceperson@sh.itjust.works 1 points 7 months ago

Nope, they're private sector. Technically the state does produce some busses and of course electric trains; but consumer evs are entirely private sector enterprises.

[–] jaxxed@lemmy.ml 1 points 7 months ago

I am doubting myself on this after your comment. I don't know much about the domestic purchase volume but if EVs in China.

[–] UltraGiGaGigantic@lemmy.ml 1 points 7 months ago* (last edited 7 months ago) (1 children)

These losses came at a hard time when the general popilation was suffering from significant equity loss, mainly real estate

Is this a reference to the 99 year leases people can get instead of full ownership or the citizens investment into big housing projects that some say are scams?

[–] jaxxed@lemmy.ml 1 points 7 months ago

I am refering to the massive drop in real estate value that happen as over the last 2 years. Real estate is a primary wealth vehicle for urban Chinese.