Somehow, statistics rarely reflect the massive trade surplus the U.S. enjoys in digital services. Link The country deliberately shifted its focus away from manufacturing, outsourcing production globally. With the freed-up capacity, it built a digital empire that generates billions of dollars annually.
The catch? This digital surplus flows almost exclusively into the pockets of a few corporate leaders. Meanwhile, the majority of people are left with shrinking incomes from former manufacturing jobs, jobs that once distributed wealth more evenly across small businesses and the workforce.
Everyone was happy when they could outsource dirty and labor-intensive jobs to China and benefit from the cheap products. China gladly took on these tasks and built a monopoly. Now, it is the sole source for most minerals and rare earth elements because everyone else stopped producing them. China is now moving up the value chain, processing these raw materials into higher-value products. However, the world has become so dependent on China’s mineral supplies that countries cannot block trade with China without risking their own production halts, since China could also stop selling the materials they rely on. This is already happening with rare earth minerals and other critical resources like tungsten.
Only way put of this would be a long time strategic investment into local manufacturing capacities, but it will cost a lot and take a lot of time. And China will dump the prices until those companies go out of business again and then we are back at the start. Happened with solar, is happening with batteries, I wonder what will be next...