Some of the new “stuff” and developments that the Chinese are working on from a technology and gadget perspective.

China has been exploding with all sorts of new things, products and innovations. Most of which has yet to catch on in the West. There are many reasons for that, but the biggest one is regulation. People who possess new things; new products; new ideas, must get permission to use them. And in the West (especially inside America) this takes time.

For instance, in the 1990’s I was the Principal Engineer for a company that was leading the world in LED technology for automobiles. We were working on tail-lights, head-lights, and courtesy lights. We were pretty cutting edge for the time. And our products were great, and worked well.

The thing was that they could not be used in cars or trucks because the regulations that existed defined the characteristics of the lighting mechanism itself – an incandescent bulb, and not the end result; the ability to have a lighted area at a specific distance.

So in order to put our new, cheap and reliable system on the market we need to get around this “roadblock”. We had to petition to change the regulations to accept results-based measurement criteria as opposed to design-based measurement criteria. And when we started to do that, boy oh boy, did we “open up a can of worms”.

No one was happy.

It’s a long story and maybe I’ll get into it some other time. Anyways, LED technology did eventually enter the automobile market, and today it’s actually rare to see incandescent bulbs being used with the same kind of commonality that used to exist.

You must understand. Over the many years, the evil and corrupt, have corrupted business, technology and society and bent them to do THEIR bidding. And it was fine and well when no one noticed what was going on…

…and China has shown the way. Where big and small, everyone can live their lives and make, grow and innovate free of government interference’s. And while it is all possible that RAH! RAH! American exceptionalism will shine through…

…the fact is that it won’t.

Not until all those millions and millions of tiny little hands are out of your wallet. Sure, you can allocate 500 million dollars to a new hospital system. And you know what you will get? A bunch of reports “evaluating” the various studies on building the hospital system. You will not get a hospital.

All these little hands are put in place by decades of crime and corruption by the oligarchy. And they are not going away.

What am I talking about?

I’m talking about this…

Yeah. You can buy a complete box of 20 for under $1 at the local store.

Crime and corruption has ruining America. And because the government has done absolutely nothing about it, it will not matter what pity saying the leadership says, what speeches that they make, what money they allocate. Because nothing will actually get done.

Look at this example…

Video HERE.

Innovation is really more than just a trivial interest of mine. My non-MAJestic career spanned four decades of R&D, NPD and new emerging technologies all across the board.

Not only was I dealing with what ever the fuck I was dealing with in MAJestic, but also I held my “day job” which was involved in R&D, and NPD.

And today…

America is clueless. Absolutely clueless.

Stuff that America hasn’t a clue about.

Stuff that when America innovates that it uses Chinese interns, and Chinese immigrants on visas to design, make and develop. They work inside an American company. And it is the American company that gets the credit. Not the Chinese engineers and scientists.

Look at the winners of the World Mathematics Competition; it’s America!

Woo! Woo! America is number one! Yee-Hawwww!

But look closely…

Here we are going to talk about some of the “cool” things in China now.

I can have thousands of videos as the Chinese are “out of control” in innovation, engineering and design. Some of which is silly, some of which is awkward, and some of which is just… hum. But I picked some of the more interesting technologies in this post. I hope that you enjoy them.

This is a video dense article. Please allow time for the videos to load. For the most part, they are worth it.

5G AI Flooring

Lighted floors with movies and animation isn’t new in China. They have been around for at least a decade now and are semi-common in movie theaters, malls and KTV venues. But the latest designs are really very cool as they have motion sensors in the floor panels and 5G AI responses. The result is really interesting. As in this video…

Video can be accessed HERE.

As you move, the tiles light up and react to you.

I can see some great applications on dance floors and other venues of a similar nature.

Interesting applications for the tiles

Actually, these panels are really cool. They can sense a person on them, and near them as well as what you are doing. And as such they react appropriately. LOL!

Each panel has it’s own little micro-computer. And can work independently or as part of a cluster of times.

Video HERE.

Wall based AI

And, of course, what can go on the floor can also go on the wall. As this video clearly shows. Again, kind of nice. But the applications can be astounding. Think of advertising boards where you can touch the advertisement and interact it in language (any) or where it could link up with your cell phone.

Video HERE.

Drone jellyfish

Here’s a new type of drone. It’s based on jellyfish, and uses a bladder filled with a lighter than air gas…

Video HERE.

I can see cluster of jellyfish drones are working together in a swarm…

…silently, quietly and stealthily. All performing non-invasive tasks where no one takes notice.

Debit Card Technology

One way foreigners will use #CBDC in China during the 2022 Olympics will be with a CBDC card and automatic exchange machine!

Banks are going all-in on CBDC as it represents their return from payment irrelevance and are showing their latest tech at the China Digital Summit. 

Bank of China just revealed an automated exchange machine that looks like it will see use at the 2022 Olympics. 

“Overseas nationals with valid passports can put foreign banknotes into the machine, which will issue a physical e-CNY card based on the exchange rate. The card looks similar to the card-based digital yuan hardware wallet that was seen back in January.” 

“The prototype of the e-CNY card for foreigners also has a small screen that shows the available balance of the hardware wallet and can be used in shops that have an e-CNY payment terminal.” 

The same machine will also likely take foreign ATM cards according to patent filings I saw months back. 

I'm certain a bank sponsored e-CNY app will also be available for the Olympics as foreign cards are now accepted for tourists on #Alipay and #WeChat Pay. 

Fun to see the new developments! 

-The Block Crypto

In China, the debit cards show just how much money that you have in the account in real time…

Video HERE.

Add and delete money easily with no fees

And here’s another video showing how you can add or delete money to the account. Note that there are no fees to do this like in the USA. In fact, everything is fee-free and so easy and instantaneous.

Video HERE.

Recharging remotely

Of course, in China everyone uses electronic payments and banking. So it makes sense for you to recharge the card as necessary from your cell phone.

Video HERE.

Not that having a card is necessary. Most people no longer carry cards. They just carry their cell phone and that is it. But having a card is really handy for other purposes, like to give a gift to children, or to allocate a budget for the purchase of a particular item.

Next year most Westerners will experience this card during the Olympics.

Huawei Ring Innovation

”The U.S. embassy in Denmark threatening to cancel its subscription with a local newspaper if it used Chinese telecommunications equipment is an example of "coercive diplomacy," Chinese Foreign Ministry spokesperson Wang Wenbin said on Friday.”

“The Danish newspaper Politiken revealed on April 25 that it received an email from the U.S. diplomatic mission in the country asking it to verify whether it uses electronic devices, including routers, modems, and electronic communications equipment, from five Chinese companies, namely Huawei, ZTE, Hytera, Hikvision and Dahua and their subsidiaries and affiliates.” CGTN on Twitter.

-LinkedIN

Speaking of cell phones. Here’s a ring that you can use to control your cell phone with. Apparently it is an option on all the new Huawei phones.

Video HERE.

Huawei Automobile Innovation

Speaking of Huawei. You know Huawei hasn’t stopped with cell phones either. They have developed all sorts of really cool things for the automobiles. Not American automobiles, of course. For the Chinese automobiles. Like this…

Video HERE.

Granted many of the technologies are cool, but I don’t know how practical. Like this trunk opener. Maybe it’s all “Gee Wiz”, but do you really need it?

Video HERE.

Electronic window tinting

However, this next bit of technology is really cool. It’s self-tinting windows. Now available on Chinese cars. But, of course, it will takes years to be approved in America as you would have to run the SAE gauntlet as the various state agencies that regulate the innovation adaptation in automobiles. But in the rest of the world, it’s really cool.

Video HERE.

Swarm Drone Technology

Drones are “old news”. But what people don’t realize is that they are a Chinese technology with most of the commercial drones being made in China. And they are constantly innovating. The swarm drone technology is pretty much mature, and China has been using this for at least five years that I know of. What is really interesting is that the drones can create three dimensional images that your cellphone can scan in real time and link up with on the internet.

Video HERE.

Goopy Shit

Here’s some sticky goop for rodent, and crowd control. I’d hate to have to clean it up afterwards!

The direct video can be accessed HERE.

Fraken-camera

Here’s a Fraken-camera. It’s cool, and for a photography buff would probably be the “cat’s meow”, but gosh almighty it does seem like over kill, doesn’t it?

The video can be found HERE if it fails to load.

But you never see this in the American Media…

You NEVER read about Chinese innovation. So you assume that because you don’t see anything that China just is unable to innovate.

And with all the anti-China propaganda, this is what most American believe. Such as these quotes…

China doesn't innovate (central planning is incapable of innovation because creation/innovation requires market competitiveness and front-line payout/incentive).But central planning-based countries can cheat and steal. And that is what China does. 

-6 posted on 7/28/2019, 10:44:53 AM by RoosterRedux
Another sheeple on Free Republic chimes in…
Innovative my ass. Have yet to see anything innovative from the Chinese that they didn’t steal from us. That’s why they won’t fold to Trumps trade war. They know they would be screwed without their thievery.

-14 posted on 7/28/2019, 11:19:28 AM by Bommer

This is what Americans and the Western allied block think about China, but it is actually not true at all.

China can and does innovate. China has been the leader in innovation for a decade already. In fact, many people gloss over all the “tell tales” of innovation such as China lock on all the 5G patents, and it’s command of the patents on Artificial Intelligence, robotics, and manufacturing.

China today, is the leader in innovation.

You do not hear about innovation.

Instead all you hear about is how dangerous and evil China is.

And you know that this statement is true. The American media would rather die than say anything good about China. But what do you expect? America is a Military Empire, and it demands absolute servitude.

This too is very true.

In fact, this was so very obvious when you watched the absolutely arrogant Biden Administration layout it’s terms to a stunned Chinese audience in Alaska in April 2021.

Perhaps some clarity is needed WHY the American military Empire is so pissed that the Chinese isn’t backing down, and instead standing up to the Arrogant American bullies.

China knows what is at stake. It’s a merit-driven leadership that has read history, and know what to expect from America. So they have readied themselves against the huge dragon the snarls, spits fire, and eats up others in it’s never-ending appetite for gold, oil and riches.

China has prepared.

And America does not like it.

Not one bit.

I love this video. I posted it on another post, as this is a military unit stationed in XinJiang. But it’s an absolutely awesome video. And worth a look. China does not play.

I mean it.

China will use every method at their disposal to stop, and destroy radical CIA-backed terrorists from doing damage, and then they will go after their sources of funding, their training and their “safe” and “distant” handlers. As China grows, so does it’s muscle. If Turkey is involved, or if the United States is involved, you will see China establish covert and secretive units to take out the instigation elements (read: key people) in their homes in far away safe suburbs. It’s a new world.

Perhaps that is why America is starting to “shake in it’s boots”.

Let's see how safe AR Senator Tom Cotton, Neocon feels in his rural home in the mountains of Arkansas, or John Bolton, or Mike Pompeo. They might no longer be holding office, but they are still "pulling the strings and levers of power". China will put a complete end to all of this nonsense.

And it's war. Right?

This is what all these neocon jackasses have been saying. Read all their writings. Go ahead read the White House report when Trump left office, read the "Long Telegraph". They want to kill and remove the Chinese national leadership and replace them with Vichy people who will be puppets for their American global objectives. Of course China knows what the fuck is going on.

And it's fair game, eh?

You want to attack China. Well, it will fight back. With real, real claws. They have no fucking idea what kind of a "hornet's nest" they are kicking off the tree.

Watch the video.

This very cool video can be obtained directly HERE.

This is just a small picture of the vast array of defensive military that China has amassed to prevent any idiotic American dreams of another Syria, Yemen, or Iraq invasion for “democracy“, and to “rescue the Uighur’s“.

This entire video was filmed inside of Xinjiang.

Keep in mind that not only is the military presence large, but they are well-trained, run by merit, and utilize well maintained, state of the art equipment.

The idea that American troops can go into Xinjiang and “rescue the imprisoned Muslims from the concentration camps” is never going to happen.

Video can be obtained directly HERE.

But that’s exactly why the American propaganda machine is in full gear right now. To make it seem that China is one thing, that it really isn’t.

And we can see this is the comments on American Neocon websites…

“The PLA’s great weaknesses:”
I think you can add:

- Their recruitment pool has been halved by a government imposed one child policy that was maintained years after being understood as destructive by a government that can never admit mistakes.

- Their economy relying on resources (especially oil) that must be imported by sea along sea lanes that cross territory closer to and controlled by their enemies.

- Their economy relying on export markets made up of their major potential enemies.

- Their work force demographics currently transitioning from having a vast majority of highly experienced workers (those in the 45 - 65 age group) to having that group being retired.

-39 posted on 5/1/2021, 5:15:53 PM by conejo99
Obviously the commenters have never been to China, know nothing of China and repeat the neocon narratives as if they are factual.
.
And, you know, that’s why they are called  “sheeple”.  They have strong emotions about something that they have never experienced first-hand. Only from what they read. And so they respond out of extreme ignorance like this…
The PLA’s great weaknesses:

- They have no institutional knowledge on how to maintain force cohesion under fire that is HITTING.

- They cannot prevent strikes by a modern military against their homeland.

- Many of their new weapons systems are cartoon images of the real thing. (their stealth does not work)

- Their logistical infrastructure for manufacturing these new weapons is hopelessly corrupt.

- They STILL cannot manufacture a decent jet engine in numbers.

- You can hear their submarines leaving Hainan Island from Pearl Harbor.

How crushing it will be to them when they are handed their ass.

13 posted on 5/1/2021, 8:30:22 AM by Mariner
It used to be an operational assumption that the rigid, doctrinaire command structure of conscript Warsaw Pact and Chicom forces would result in disarray when key leaders were lost on the battlefield, and by contrast, US forces consisted of individual soldiers ready to step up and take initiative and assume leadership roles when situations demanded. From what I read and hear, I'm not sure those distinctions are as clear as they once were. 

-23 posted on 5/1/2021, 9:44:11 AM by Joe 6-pack
I have been reading these China is going to collapse anytime now stories for 20 years. They have only gotten more powerful.

- 31 posted on 5/1/2021, 10:24:34 AM by setter
They can't do logistics - they have never had to move lots of men and material under pressure. Something the US military is VERY good at (sometimes to our detriment). 

-32 posted on 5/1/2021, 10:25:42 AM by Psalm 73
I have to laugh at this one. “China cannot do logistics“.
.
It is always the same garbage narrative. China is an evil authoritarian regime and the people are huddled ignorant masses and they need rescuing from their evil overlords. Yada. Yada. Yada.
.
The Civil Police publicly beat and incarcerate people daily, and sometimes torture and kill - its no secret except from the West. Filming is rare because of the plainclothes cops are everywhere and will stop and destroy the camera/phone - as are the ubiquitous State cameras watching for people filming.

-42 posted on 5/1/2021, 7:56:47 PM by PIF
Again, the illusions that these people have are comically insane.
.
The only people on the forum that doesn’t agree with the neocon narrative are people who have actually been to China, or to Asia. And they say some sane things, but they are obviously in the minority.
.
No China did not ‘lie about’ their Covid totals, at least for the most case.

I am in Vietnam now. Some similarities between China, and Vietnam. And some BIG differences as well (like I don’t see Vietnam as a threat to America)

There have been a grand total of 35 deaths due to Covid.

Really.

Thirty five.

-48 posted on 5/1/2021, 11:15:04 PM by cba123

They are lone voices, often drowned out by the loud and the ignorant.

China does innovate. There are many technical devices that are made there that are not made here. Hell, you can't even find decent documentation for devices I use because no American companies neither design or make this stuff.

And of course there are some good comments.

America is the place where innovation is dying. How can we expect to produce engineers if there aren't jobs for them here?

26 posted on 7/28/2019, 10:17:45 PM by GingisK

He also responds to one of the sheeple’s comments…

..Have yet to see anything innovative from the Chinese that they didn’t steal from us...

Try to find something like an ESP32 that was made here first. Try to find a Bluetooth Low Energy transceiver on an XBee carrier that was made here first.

Those devices were both made in China. The ICs are made in the USA; however, there seems to be nobody here who will innovate products from them. Crap, people here can't get beyond Arduinos using peripherals that are created in China.

Few people understand how deep the damage to American innovation and engineering goes.

28 posted on 7/28/2019, 10:26:39 PM by GingisK

And this particular post addresses all the “Gung Ho” Sheeple that live off the illusion that the American media propaganda is correct…

... Few people understand how deep the damage to American innovation and engineering goes...
 
That's why I get so annoyed with the "Puff the Magic Tariff" brigades here on FR. Tariffs can work tactically if you have industries left to protect, otherwise they equate to putting expensive doors on an empty barn....while your horses are already grazing in the next county. A massive reduction in the Cost of Liberalism is the most important task to focus on.

30 posted on 7/29/2019, 4:45:36 AM by Mr. Jeeves

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The latest details about the Trade War between the USA and China.

There are many articles about the Trade War between the United States (Donald Trump) and China. Many are written from the perspective of an American consumer sitting in America, and desirous of a return to the “golden days” of industrial might. Others are written from the point of view of a progressive “enlightened” globalist who wants a one-singular world order. This article is different. It is written from the point of view of someone who has a vested interest in both “camps of thought”.

A fresh slap of reality.

In terms of the trade war, there are some facts that do not support any of the assumptions held and promoted by the “talking heads” in the mainstream media.

None of these facts agree with the promoted narratives. This is true whether you are politically liberal or conservative.

On the conservative side...

I’m seeing a type of artificial patriotic fervor. It's an organized  attempt using memes and propaganda to convince conservatives that the trade war requires mindless fealty to the anti-China message.

Americans don’t like dictators, and many don’t like China. However, conservatives are being duped into thinking the trade war against China some type of an ideological crusade. It’s one that somehow will lead to a better America or a better world.

People! Wake up. This is not what the trade war is intended to do.

Let’s start with the assumptions surrounding the trade war and then look at the evidence that debunks them. Remember people…

The American government requires an alert and well-informed citizenry to function properly.

Fallacy #1: China needs America

The idea here is that the entire nation of China, all 1.4 billion of them, needs Americans (325 million) buying their products.

Seriously?

I’m not sure where this idea comes from specifically, but it’s not based on anything tangible. I sometimes wonder if the notion that the world depends on the American consumer (for its bread and butter) is perhaps a kind of appeal to American’s narcissism? Thus making the average American feel superior, or feel special. You know, by simply by telling them that their steady American way of life (one of debt-based consumption) keeps the engine of the global economy running.

Pretty outrageous.

In the case of China, here are the facts:

The US only comprises around 18% of Chinese exports. While this is a nice piece of the pie, it’s hardly enough leverage to bring down China’s economy. China would suffer profit losses in certain sectors as well as a possible recession, but not the kind of crisis that some in the alternative media are predicting.

There will not be riots in the streets, famine, or civil upheavals. Don’t be silly.

In 2018, China shipped 18% of its exports to the United States. That contributed to a $419 billion trade deficit. China's trade with Hong Kong, at 14%, was almost as much. Its trade with Japan, which was at 6%, and South Korea, at 4.5%, was much less. 

-The Balance

You need to know that China is NOT structured like the United States and does not operate under rule by popular opinion. They are a serious, serious nation. Their leadership got where they are through merit. (Have you ever attended school with a Chinese / Asian student? They work hard, study hard, and make informed, calculated decisions.)

Unlike the United States, around 40% of China’s GDP is generated domestically, and 80% of its GDP growth comes from private consumption.

For the last decade or so, China has been busy changing its economic model. They have moved from an export-based system to a far more self-reliant domestic-based system.

I covered this subject in another post. You can click on the link below. It will open up in a separate tab so that your reading here will not be interrupted.

10 Misconceptions about China

Maybe they knew something that the Bush and Obama administrations didn’t. It appears that they have been preparing for a possible economic war with the US.

For the last decade, indeed since 2010, China’s domestic market has grown dramatically. This should indicate to the more alert in the audience that China has no intention of relying on the US consumer as an economic pillar.

They are a self-sufficient nation.

Meanwhile, the US consumer is almost tapped out. It’s hard to see because retail sales in certain areas remain steady. Not to mention that the mainstream media (and the Fed) has been using this to promote the idea that the economy is still “going strong”. It’s not really the true and real situation.

The reality is that US consumption is driven by historic levels of debt. Household debt is now FAR above levels last seen after the last financial crisis, with total debt at $1.2 trillion higher today than its last peak in 2008. 

The downturn in retail is more obvious in the steady closings of thousands of outlets in 2019 alone.  This year has seen a 29% increase in store closings compared to 2018,  even though 2018 saw a considerable spike in store shutdowns. Around  12,000 stores are slated to close this year.

OK, so the actual situation is quite different from the mainstream media narrative.

  • China is a self-sufficient nation.
  • America is completely engulfed in a debt hole.

So the question is, with the US consumer stretched thin by debt and US retail on the verge of a recessionary plunge, why would China feel threatened by the loss of the American consumer market? 

They are losing it already by attrition.

The truth is they aren’t threatened. Which is why the trade war continues unabated. This is the situation despite the fact that so many people have argued that China would “quickly fold” to Trump’s demands.

I realize this is not what many people want to hear, but it is foolish to get caught up in a farcical mob mentality and ignore the fundamentals in the trade war. If you think that the US is going to “win” based on leverage, you are sorely mistaken. 

America has NO leverage. The US is in no better shape economically than China; in many ways, we are much worse off.

“Trump’s claim that an exodus of foreign firms will force China to  capitulate to US demands to settle the trade war is wishful thinking at  best,” 

-Week In China

Fallacy #2: Manufacturing Will Return

This is perhaps the most persistent and fraudulent “carrot” that has been held out to the American people. It’s the idea that those “golden days” of American Manufacturing will return, and all will be back to “normal”.

It’s a lie.

It’s not going to happen.

I am sorry to break this new to you all, but factories, industrial might, scientific ability and skills are not “light switches” that you can turn on and off at will. You cannot just snap your fingers and start up a fully automated factory, producing high quality products with a skilled work force overnight.

It doesn’t work that way.

I covered this subject elsewhere. You can click on the link and it will open up in a separate tab.

The logistics of relocating a facotry from China back to the USA.

First, as it stands now manufacturing in the US makes up only 11% of total economic output. I don’t think that many people understand the consequences of this.

  • We have a 70% retail and service-based economy.
  • This means that the majority of US citizens in the job market have no experience whatsoever in the manufacturing sector.
  • Thus, by extension, the average US company has no guidelines for how to establish a manufacturing base using the existing American labor pool.

Second, American labor expects a certain level of wage compensation. Not to mention an expectation of union organization. Combined, this makes manufacturing far more expensive here than in just about anywhere else in the world.

The average factory worker in China makes around $3.60 per hour. So tell me, just how exactly would the American market ever be able to compete with this?

Tariff’s alone are not enough to force corporations to spend the billions necessary to rebuild factories in the US and hire American workers at $15+ an hour (let alone the $45+ an hour at union wages). It’s just not going to happen.

There's a movie called "American Factory" that might be worth your time to watch. It's a documentary that was released in August 2019.

The documentary tells an increasingly American story. In 2015, seven  years after a General Motors plant closed in Dayton, Ohio, a Chinese  company that manufactures glass for trucks and automobiles reinvests in  the factory.

The former GM workers are are ecstatic. Some went into foreclosure  and were evicted from their homes after GM pulled out — one woman, a  forklift operator named Jill Lamantia, is living in her sister’s  basement. They’re happy to have another factory job. Never mind that the  GM plant was fully unionized and paid more than $20 an hour, and Fuyao,  a non-union shop, has a starting pay of $14 an hour, it’s a job.

Cao has a bold vision: Pair U.S. workers with Chinese workers, who  are brought to Ohio to train and work alongside their American  counterparts. The idea is that the Chinese and the Americans can learn  from each other, taking the best working methods from each culture to  increase production. Although Cao visits regularly from China, the  onsite boss is an American, and management is from both cultures.

But the results don’t meet that utopian ideal. The culture divide  seems insurmountable. To start with, the Chinese workers have no problem  working long hours and overtime, while the Americans are used to  eight-hour shifts...

Download the Movie Torrent HERE.
Read reviews about it HERE.

Third, there are many, many places besides China to build a manufacturing base. No company is going to bring its factories to the US when they can build in Vietnam, or Taiwan, etc. In many cases, it is cheaper to ship raw materials and products to these countries, have them finished by cheap and motivated workers in Asia, and then have the items shipped back, than it is to build the product from start to finish in the US.

Fourth, we can talk all day about patriotism, but in the end, the average American is not going to buy “Made in the USA” for most goods out of a sense of patriotic duty if the price is twice as much or much more. Walmart and Amazon dominate the retail market for a reason – they sell things cheaply.

  • $19.95 Toaster – Made in China.
  • $79.95 Toaster – Made in the USA.

Fifth, raising tariffs on foreign exporters would only work to encourage consumption of domestically manufactured goods. If the foreign made products cost too much, then you would buy American. Right?

Why buy an Mercedes, when you can buy fifteen (x15) Kia Rio Sedans for the same amount of money?

  • 2019 Mercedes-Benz S-Class$253,550
  • Kia Rio LX, 4-Door Sedan. – $16,195

This only holds true if the US already had a large manufacturing base and produced all the items other nations produce. But it doesn’t. Many of the things that are under the tariff schedule are wholly made overseas.

  • Televisions – 100% made in China.
  • iPhones – 100% made in China.
  • Sneakers – 100% made in China.
  • Clothes Washers – 100% made in China.
  • Automobile Tires – 100% made in China.

The American consumer doesn’t have a choice. He can only buy imported items. Thus, it is the American consumer that ends up paying the tariff.

Entering into a trade war without a resilient manufacturing sector is backward. You don’t fight a trade war to get manufacturing to come back, you fight a trade war to promote the goods you already manufacture.

Seriously, if Trump had really intended to bring factories back to the US, he should have done things differently. For instance, he could have given corporations tax break incentives in exchange for creating manufacturing jobs on US soil.

If you do “A”, I’ll give you “B”.

Instead, he didn’t do this. He just gave American corporations tax breaks for nothing.

Fallacy #3: China Will Starve Without American Food

Uh, no. China will not experience famines, riots, or starvation. It’s all pretty darn silly.

This is a very weird argument. It’s as if some people assume that the US is China’s only potential source for food. Where do Americans get such really “off the wall” ideas? Seriously!

China buys agricultural products from all over the world and has alternative sources for foods like soybeans and pork, including Brazil, Mexico, and Russia. Not to mention that they grow, and raise their own food. It’s part of the conservative belief in self-sufficiency. Don’t you know.

I covered this subject elsewhere. The link below will open up in a new tab. It’s pretty damming and will open up a few eyes. China is not a nation to be trifled with.

China's Global Leadership

Prices will rise in China, sure, but nowhere near the point of collapse. Again, the Chinese are not reliant on the US for anything, so, the idea that the US has overt leverage in the trade war is simply not true.

Fallacy #4: The World Will Side With The US Over China

This is a prime question – if they had to choose sides, would a given nation choose the USA, or choose China?

On one hand you have the debt-ridden oligarchy-ruled military state with a large consumer base or communist China’s cheap export market. What would they choose if they had to pick only one?

  • The US consumer is nearly tapped out.
  • China has the largest import/export market in the world.
  • The vast bulk of manufacturing is in China.
  • The US has little manufacturing to speak of.

I also question the validity of the idea that Europe or most other nations have loyalty to American markets. Think about it; do they really?

Do they see America as indispensable?

Or is the rest of the world being sent on a path towards globalism? Meanwhile the US is being made to look like a barbaric and archaic throwback. Like some kind of Neanderthal man that is desperately clinging to power. And one that is willing to drag everyone else down with him if he doesn’t get his way?

Why do people cling on to the power they hold, and you have to wait until they die before you can have some "new blood" and some changes done? Why won't they just let go and accept change.
Why do people cling on to the power they hold, and you have to wait until they die before you can have some “new blood” and some changes done? Why won’t they just let go and accept change.

Many in the “liberty movement” understand that this is not the case.

We know that the globalists have sabotaged this country from within. We also know that they are using Trump as controlled opposition and a useful puppet in this task.

Ah yes, but the majority of the rest of the world does NOT understand this.

If there is an economic crash which sends shock-waves through multiple economies, the trade war will most likely be blamed along with Trump and his “populist” supporters.

The rest of the world will see us as the villains, because they do not understand the nature of 4th Generation Warfare, nor do they understand the globalists’ strategy of “order out of chaos”.

The narrative that has been pushed in the global mainstream media is quite different than what you would see on FOX.

  • China is the victim of US aggression.
  • The trade war and the economic crisis are purely a product of Trump’s madness.

Who do you honestly think the world will eventually side with?

Fallacy #5:  The Trade War Will Be Over Soon

We’ve been hearing this for almost three years now.  Trade wars are “easy to win”, right? 

Every couple of months the trade war deal hype is recycled and every couple of months the markets are hit with renewed disappointment.  The latest trade talks are set for October and if they happen at all, it is unlikely they will result in anything of significance. 

At most, they will be heralded as the “start of a great deal” and both sides will claim “progress was made”, and then, once again, nothing will happen and the conflict will accelerate. 

You would think people would have figured it out by now, but the investment world learns very slowly and functions solely on blind hope.  At the very least, economic analysts are starting to realize that no deal is coming and that the situation is only going to get tenser. 

In fact, it is designed to get more tense.

Fallacy #6: The US Dollar Is Untouchable

This claim revolves mainly around the idea that because the US dollar is the world reserve currency, the US has the upper hand in all trade negotiations. Therefore, the rest of the world will follow the currency leader because there “is no other option”.

I disagree.

As Bank of England governor Mark Carney has openly admitted, the plan is to replace the dollar as the world reserve currency anyway. How? Well with a global cryptocurrency, of course.

They need a massive crash event, and they need the US dollar to go the way of the dodo.

It seems rather convenient to me that China has been preparing for just such an event. While many analysts point out that China has generated intense amounts of debt over the past decade, they seem to forget that this was a requirement in order for China to attach the Yuan to the IMF’s Special Drawing Rights basket. This is, of course, the foundation for a global currency mechanism. 

Chinese economic officials and the globalists both argue that the current monetary system, based on a single national currency (the dollar) as the world reserve is inherently unstable.

Their solution?  A basket of currencies monitored by the IMF, followed by a single digital currency mechanism. 

I would note that China and the globalists have consistently hinted  that a major economic crisis event will act as a catalyst for this  “reset” in the world monetary order and that the dollar must be replaced  in the process.

China has also been stockpiling large amounts of gold for the past decade. This would indicate they are expecting a monetary devaluation event, most specifically in the dollar.  It’s as if they know something the rest of us only suspect.

The trade war is the perfect cover for the collapse of the US dollar that the globalists desire. While some people suggest that China’s dumping of US treasuries is the “nuclear option” in the trade war, this is not exactly true.

The REAL nuclear option is for China to dump the US dollar as the reserve trade mechanism and go to a basket of currencies, which the IMF will happily aid them with.

As the largest exporter/importer in the world, China can drop the dollar and most of their trading partners will follow their lead. The US economy would crumble in response, as the dollar is the only thread holding our system together.

This is a FACT, Jack.

This is the ugly truth behind the trade war. It is nothing more than a farce, a smoke and mirrors distraction leading up the dismantling of the US dollar and paving the way for the globalist one-world digital currency system.

Whether or not the plan succeeds relies on ample resistance from people who see the danger ahead. However, make no mistake, the globalists are not afraid of an economic crash or the decline of the dollar. In truth, they WANT these things to happen so they can establish even more centralized control.

Updates

 Hot off the presses! We surveyed our members on how they are adapting to the US-China Trade War and have some surprising comparative data here from a previous survey in January 2019.  

Long story short: European companies have resigned themselves to the long-term nature of the trade war, and many have made significant shifts in strategy to mitigate its effects. That means changing suppliers, rejigging product flows through corporate global operations, and avoiding the US-China trade 'border' like the plague.  

Interestingly, roughly the same number of companies that are moving relevant production out of China (8%) are increasing investment in China (6%) as companies decide to move out affected production or further onshore supply chains respectively to avoid the tariff bite.  

However, the effects of the uncertainty coming from the trade war are increasingly significant. In January, 6% of members said they were delaying investment/expansion decisions in reaction to the conflict. That number climbed to 15% in September. 

-European Survey

Conclusion

The “Trump Trade War” is a natural progression of events that were bound to occur sooner or later. It will eventually precipitate numerous events. One of which will be a global currency. Another will be a strong ascendancy of China in the global stage. As well as some serious internal economic readjustments (collapse, maybe?) in America.

We will sit by and see what happens.

Personally, I hope that any changes that occur to be a painless as possible. To endure the changes, you might need to turn off the mainstream American media which will be shrieking, wailing, gnashing it’s teeth and flaying it’s arms all about in wild, crazed abandon.

12OCT19 Update

 Trump said the U.S. and China have "agreed in  principle" on a preliminary trade agreement. Trump acknowledged that  differences remain on major issues on which the two countries are  divided, but the White House still decided not to push ahead with a  planned increased to tariffs on $250 billion of Chinese goods next week.
The move would have raised those tariffs to 30% from 25%.

"There's  too many factors at play for him to just issue threats to governments,  China's or anybody else's, to just follow along with what he says," said  Wang, referring to the U.S. president's previous threats to slap  additional penalties on Chinese goods.

-USA Today;  Senior China adviser: Trump to blame for delays in securing final trade deal, says China has been 'accommodating' 

Take a break

I know all this is very serious stuff, and a tad alarming. I would suggest that you might want to check out some of my lighter articles. Here’s four stories for starters. All open up in a separate tab for your viewing pleasure. Pick one and relax.

Link
Link
Link
R is for Rocket

Links about China

Here are some links about my observations on China. I think that you, the reader, might find them to be of interest. Please kindly enjoy.

The US involvement in the HK "Democracy Now" movement.
Chinese reaction to the Trump Tariff Wars.
China's Global Leadership
Popular Music of China
The logistics of relocating a facotry from China back to the USA.
Hong Kong and the NED CIA operations.
Chinese weapons systems
Chinese motor sports
End of the Day Potato
Dog Shit
Dancing Grandmothers
Dance Craze
When the SJW movement took control of China
Family Meal
Freedom & Liberty in China
Why are Americans so angry?
Evolution of the USA and China.
Ben Ming Nian
Beware the Expat
Fake Wine
Fat China
Business KTV
How I got married in China.
Chinese apartment houses
Chinese Culture Snapshots
Rural China
Chinese New Year

China and America Comparisons

As an American, I cannot help but compare what my life was in the United States with what it is like living in China. Here we discuss that.

SJW
Playground Comparisons
The Last Straw
Leaving the USA
Diversity Initatives
Democracy
Travel outside
10 Misconceptions about China
Top Ten Misconceptions

The Chinese Business KTV Experience

This is the real deal. Forget about all that nonsense that you find in the British tabloids and an occasional write up in the American liberal press. This is the reality. Read or not.

KTV1
KTV2
KTV3
KTV4
KTV5
KTV6
KTV7
KTV8
KTV9
KTV10
KTV11
KTV12
KTV13
KTV14
KTV15
KTV16
KTV17
KTV18
KTV19
KTV20

Learning About China

Who doesn’t like to look at pretty girls? Ugly girls? Here we discuss what China is like by looking at videos of pretty girls doing things in China.

Pretty Girls 1
Pretty Girls 2
Pretty Girls 3
Pretty Girls 4
Pretty Girls 5

Contemporaneous Chinese Music

This is a series of posts that discuss contemporaneous popular music in China. It is a wide ranging and broad spectrum of travel, and at that, all that I am able to provide is the flimsiest of overviews. However, this series of posts should serve as a great starting place for investigation and enjoyment.

Part 1 - Popular Music of China
Part 3 -Popular music of China.
Part 3 - The contemporaneous music of China.
part 3B - The contemporaneous music of China.
Part 4 - The contemporaneous popular music of China.
Part 5 - The contemporaneous music of China.
Part 5B - The popular music of China.
Part 5C - The music of contemporary China.
Part D - The popular music of China.
Part 5E - A happy Joe.
Part 5F - The contemporaneous music of China.
Part 5F - The popular music of China.
Post 6 - The contemporaneous music of China.
Post 7 - The contemporaneous music of China.
Post 8 - The contemporaneous music of China.
Part 9 - The contemporaneous music of China.
Part 10 - Music of China.
Post 11 - The contemporaneous music of China.

Parks in China

The parks in China are very unique. They are enormous and tend to be very mountainous. Here we take a look at this most interesting of subjects.

Parks in China - 1
Pars in China - 2
Parks in China - 3
Visiting a park in China - 4
High Speed Rail in China
Visiting a park in China - 5
Beautiful China part 6
Parks in China - 7
Visiting a park in China - 8

Really Strange China

Here are some posts that discuss a number of things about China that might seem odd, or strange to Westerners. Some of the things are everyday events, while others are just representative of the differences in culture.

Really Strange China 1
Really Strange China 2
Rally Strange China 3
Really Strange China 4
Really Odd China 5
Really Strange China 6
Really Strange China 7
Really Strange China 8
Really Strange China 9
Really Strange China 10
Really Strange China 11
Really Strange China 12
Really strange China 13
Really strange China 14

What is China like?

The purpose of this post is to illustrate that the rest of the world, outside of America, has moved on with their lives. That while they might not be as great as America is, they are doing just fine thank you.

And while America has been squandering it’s money, decimating it’s resources, and just being cavalier with it’s military, the rest of the world has done the opposite. They have husbanded their day to day fortunes, and you can see this in their day-to-day lives.

What is China like - 1
What is China like - 2
What is China Like - 3
What is China like - 4
What is China like - 5
What is China like - 6
What is China like - 8
What is China like - 8
What is China like - 9

Summer in Asia

Let’s take a moment to explore Asia. That includes China, but also includes such places as Vietnam, Thailand, Japan and others…

Summer Snapshots 1
Summer Snapshots 2
Summer Snapshots 3
Summer Snapshots 4
Snapshots Summer 5
Summer Snapshots 6
Summer Snapshot 7
Summer Snapshots 8
Summer Snapshots 9
Summer Snapshots 10
Summer Snapshots 11
Summer Snapshot 12

Some Fun Videos

Here’s a collection of some fun videos taken all over Asia. While there are many videos taken in China, we also have some taken in Thailand, Vietnam, Cambodia, Korea and Japan as well. It’s all in fun.

Some fun videos of China - 1
Fun Videos of Asia - 2
Fun videos of Asia - 3
Fun videos of Asia - 4
Fun Videos of Asia - 5
Fun videos of Asia - 6
Fun videos of Asia - 7
Fun videos of Asia - 8
Fun videos of Asia - 9
Fun videos of Asia - 10
Fun videos of Asia - 11
Fun videos of Asia - 12
Fun videos of Asia - 13
Fun videos of Asia - 14
Fun Videos of Asia - 15
Fun videos of Asia -16
The best way to cook marshmallows.

Articles & Links

You’ll not find any big banners or popups here talking about cookies and privacy notices. There are no ads on this site (aside from the hosting ads – a necessary evil). Functionally and fundamentally, I just don’t make money off of this blog. It is NOT monetized. Finally, I don’t track you because I just don’t care to.

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The logistics of relocating a factory from China back to the United States.

"A recent survey by the American Chamber of Commerce in China shows that  41% of the respondents considered relocating or had relocated  manufacturing facilities outside of China, but only 6% were considering  moving back to the United States. Southeast Asia was the top  destination. "

-Townhall

This is an overview of the complexities and issues that a company must deal with in order to relocate their factory out of China and place it back in the United States. It’s not as easy as it sounds, and we discuss the issues involved independently outside of the contentious American political scene.

We discuss the functional and practical issues with relocating a factory back to the United States from China. Not, the political issues, nor the need for America to reclaim it's manufacturing base. Those are other issues that will not be addressed here.

Though, let it be clearly understood, that I stand with Donald Trump in that there is a serious need to restart the American industrial machine and fire it up back to a level of productivity in order for the USA to maintain a global leadership role.
Donald Trump is going to bring American jobs back to America.

This entire issue came to a head when President Trump “ordered” American factories currently in China to “uproot” and Return back to the United States. It made all the headlines, don’t ya know?

All in all, it sounds so easy.

However, the truth is that is it is extraordinarily difficult thing to do. And no, as much as I would like all of youse guys to hire me, you just can’t hire an “expert” to handle things and expect them to be done to your satisfaction. It doesn’t work that way.

Sorry.

American progressive greed killed the little guy.

While there are ways to accomplish this task, there will be a hit in quality, price, and delivery time. All of these issues will affect the market share of the companies that agree to relocate. This damage to the market share for the companies involved should not be discounted. For many, it will manifest as a dance with death.

Here we discuss the most important issues that a company CEO, or owner would need to consider when contemplating relocating his company out of China.

Full Disclosure

For starters, I must make the full disclosure. Please take note that I was one of those “evil” Americans who relocated factories out of America and placed them in China. It was my job and maintained this role for a solid fifteen years if not longer.

Call me an a$$hole if you like.

It's difficult being the person that everyone hates.
It’s difficult being the person that everyone hates.

It’s not like I wanted to do it, so much as starving in a food-stamp line really sucked. I followed the money. You take what work is available and you do not question the person cutting you a paycheck. Sure beats scrubbing toilets, hauling manure, or judging the sex of chickens. Truth this.

It was difficult scraping by in Western Pennsylvania, West Virginia and Ohio. I was just happy to get a job any job when unemployment (actual) was in the double figures.

For decades, people like Trump’s trade director Peter Navarro have warned us that something like this would happen someday. But we were condescendingly told, This is capital seeking the most efficient market! And, anyway, if China screws with us, we’ll just make it ourselves.

Really? With broken-down buildings, a dispossessed workforce and no machinery? Unfashionable working-class people in the industrial Midwest were discarded long ago. They may as well have had “obsolete” stamped on their foreheads.

-Ann Coulter

Ah. Maybe you the reader are unaware of the existence of the “rust belt” and us sorry sacks that lived there.

Unemployment line.
Unemployment line. In this June 23, 2014 photo, people wait in line to meet with recruiters during a job fair in Philadelphia. The Labor Department reports on the number of people who applied for unemployment benefits last week on Thursday, Aug. 21, 2014. (AP Photo/Matt Rourke)

I was hired for that task and did it to the best of my ability for numerous companies throughout the late 1980’s into the new century. Once Bill Clinton came to office, it just seemed like the “flood gates” opened up and just about everyone wanted to uproot and move their operations to China.

So, I do know what I am talking about.

A map showing the location of United States manufacturing plants in China as of 2008. As today is 2019, you can well appreciate that tall these plants are joint-ventures, and not WOFE and thus the American ownership of these companies are at 49% or less, with the Chinese partner owning a 51% controlling stake in the factory.
A map showing the location of United States manufacturing plants in China as of 2008. As today is 2019, you can well appreciate that all these plants are joint-ventures, and not organized as WOFE and thus the American ownership of these companies are at 49% or less, with the Chinese partner owning a 51% controlling stake in the factory.

And no, moving American factories back to America from China is not as simple as Donald Trump, Fox news, CNN, WaPo and the Drudge Report makes it out to be. It’s complicated. If handled poorly the entire American industry segment can be wiped out completely (rather than just simply outsourced).

Listen up!

Let it also be clearly understood that it was much easier to relocate a factory to China than it would be to reverse the effort, and relocate it to the United States. Yes. It’s like eating a delicious pizza. Once you eat it, you cannot regurgitate it up and present the vomit for resale. Now, can you? Nope you cannot.

We will cover some of these points in this article.

China makes everything

Most Americans are under the impression that the only things that China makes is cheap and useless junk. That is because of three things. [1] Ego, [2] Mainstream American media, and [3] Walmart.

The truth is that China is the manufacturer for the world.

  • Most computers are made in China.
  • Most clothes washers are made in China.
  • Most cell phones are made in China.
  • Most automobile engines are made in China.
  • Most transmissions are made in China.
  • Most tires are made in China.

So do not be under the erroneous assumption that it’s easy to relocate a factory back to the USA. These are, for the most part, not low-technology factories. (The low-technology factories have long since moved to even cheaper nations with less regulation, like Vietnam and Cambodia.)

Today, most American owned factories in China are much more advanced, than what is assumed. They are far more automated than the American mainstream news media lets on.

Take a look at what these factories make…

Trade between the USA and China.
Trade between the USA and China.

ACME Widget Technology Inc.

To better help understand the issues involved, we will use a fictitious American company. This company is based on a number of actual companies that I worked at where I relocated the factories to China. It is an amalgamation of numerous actual companies that I am sorry that I'd rather not announce publicly. As I did sign NDA's at all the companies.

This fictitious company is called ACME Widget Technology Inc. This company was a very prosperous consumer appliance company that was established in the 1950’s and was a major player in the consumer market during the 1960’s into the 1970’s.

They manufactured a wide selection of consumer appliances ranging from “white goods” (washing machines, stoves, and other large appliances), to “kitchen appliances” (microwave ovens, toasters, coffee makers) to “Lawn and Garden” appliances (weed-wackers, lawn-mowers and chainsaws).

White goods and other large appliances on display in a well known appliance store.
White goods and other large appliances on display in a well known appliance store.

At their peak they employed over 10,000 American workers.

They operated numerous individual specialized factories, each one customized for a specific product line. As such there was one factory for personal scales, a different factory for heated cooking appliances, a factory for outdoor grills, and another one for washing machines. For all the various product lines, there was, perhaps, 30 to 45 factories at the middle of the 1990’s.

Most of these factories were in the Southern states, with the bulk of the factories in Louisiana, Mississippi, Alabama, and Tennessee.

(They were initially in the North in the Great Lakes region, but relocated during the 1970's to the South East. They did so for lower wages (1/4 the rate) and the ability to skirt the onerous regulatory and union requirements.)
The ACME Catalog.
The ACME Catalog.

While the factories were in the Southern states to take advantage of the low labor rates, and “friendly” (at that time) business climate, the corporate offices were elsewhere. Marketing, Sales and the Commercial management offices were located in a suburb of Chicago. Perhaps you heard of it, Schaumburg Illinois?

While Engineering, Quality, Tooling and Test facilities were located within a days drive of any of the specialized factories in the deep South. Their offices were in the town center of one of the many numerous small Southern towns. Hattiesburg, Mississippi, perhaps you have heard of it?

Local engineering and related quality offices in small town America in the Deep South.
Local engineering and related quality offices in small town America in the Deep South.

A 1980’s Hostile Takeover

In the 1980’s a group of investors seized control of the company. It was hostile, and thus the term “hostile takeover” become commonly used. (Remember the movies “The secret of my success”, and “Other people’s money”.) They laid off a significant percentage of the workers, shut down and sold off various factories and divisions (Remember the movie “Pretty Woman”?) and “Chainsaw” Al Dunlap?

It was a “bloodbath”.

Their goal was to strip-mine the company for personal profit. They felt that they could do with the company as they wished as they held controlling interest in it. And, since no one was doing anything to stop them from this (terribly unethical) activity, they were correct.

Without enforcement of the laws, or the selective application of laws... they functionally do not exist.

Given the crimes of the Washington oligarchy, this should be painfully obvious to everyone in America today.
After laying off thousands of people, Al Dunlap retired to a life of luxary and ease, playing golf and smoking cigars.
After laying off thousands of people, Al Dunlap retired to a life of luxury and ease, playing golf and smoking cigars. Meanwhile the workers that he laid off ended up destitute, many lost their homes, and went into bankruptcy. Today, many live in mobile homes, and are employed in low-paying unskilled labor employment.

I was hired to move companies to China.

Within this contentious environment, where the wealthy and successful were guzzling XO and cavorting with high-paid hookers, (while us working “normals” were discarded as “useless riff raff”), they hired me to do three things;

  • Relocate specific factories to China
  • Create Joint Ventures with existing Chinese factories
  • “Farm out” specific product lines to existing Chinese factories and create a partnership whereas we would purchase complete products from them though our Purchasing organization.

They wanted to move the plants to China for the simple reason that the wages were far less, the rate of exchange USD to Yuan was in the favor of the United States ownership, and that regulations, laws, and controls were lax, or in many cases, not present at all.

The operational costs American facility vs Chinese facility + Logistics costs were like "night and day". It was absolutely mind blowing how much cheaper it was to manufacture products in China compared to the USA.

Not to mention, of course, that the Chinese were actively courting American businessmen to “sell their soul”, “sell out their countrymen”, for a life of ease, prostitutes and a never-ending supply of recreational drugs.

 First, they hired slick American marketing firms and convinced giant  U.S. companies to relocate manufacturing to China by providing $1 leases  for comparable plants and abundant cheap labor. Wall Street fell for  it.

Secondly, state-subsidized Chinese companies flooded U.S.  markets with products at one-third the prevailing price. The result: In  short order, most American manufacturers had to file for bankruptcy.  Then, these same Chinese firms shamelessly swept in and bought up our  manufacturers’ now-unused equipment for pennies on the dollar.We were asleep.  Sure, it cost China some money in the early stages, but per their  long-term plan, China became the world’s top manufacturer and resource  for such fire-sale buy-outs at the same time. The plan was masterful,  the U.S. and American stakeholders fell for it hook, line and sinker.

I personally observed this wholesale takeover up close from 1990 to 2010. 

-Townhall

Note on the quote above: No American citizen can lease under the terms mentioned in the quote. Only the Chinese partner can take advantage of that lease arrangement. While the quote is a good one, it is very deceptive.

But moving into China was not as straight forward as it appeared. You just don’t hop on a plane with a suitcase full of cash, point to a factory and say “I want that one”. To operate in China (up until around 2008 or so) you needed to create a joint-venture partnership with an existing Chinese factory. So that is what ACME did. They partnered up with existing Chinese factories.

The primary advantages in having a joint venture in china was labor rates, regulations, and favorable trade terms. Anything else is speculative.

A comparison in hourly wages for manufacturing workers in the United States as compared to China.
A comparison in hourly wages for manufacturing workers in the United States as compared to China.

The Dismantling of American Industry

These actions took place throughout the 1990’s and by the tail end of the decade, almost the entire product line for ACME was manufactured in China.

All in all, it took nearly a decade to move operations off shore without seriously affecting market share and the confidence of our customers. Our name brands remained intact. Commercial campaigns for the sales of ACME products were given top spots on television and through newspapers.

The Design, and Quality staff remained in the United States.

However, that too began to be outsourced as well. With Engineers from India, and China working alongside American Engineers. Eventually, the complete Engineering and Quality groups were wholly outsourced to China.

None remained in America.

Customer Service Staff at a CS operations room in India.
Customer Service Staff at a CS operations room in India.

Customer Service activity was outsourced to India. None remained in America.

This remained true even after a flood of complaints about the quality of the customer service. They worked for a fraction of the cost of Americans, and with that pittance lived a upper-middle class lifestyle in India. The company savings went directly into the pockets of the owners of ACME.

Thus the resultant reorganization of the company resulted in very competitive prices that appealed to the major retailers. Walmart, Target, Sears, Home Depot, Walgreens and others all placed ACME Widget products in key SKU (Stock Keeping Unit) locations in their stores.

In other words, displayed predominantly, at eye-level on shelves, and in high visibility locations within stores.
A graph of the decline in American manufacturing employment (and conversely ability) in order to meet the profit targets of Wall Street, the globalst cabal that runs Washington, DC, and the progressive political leadership in America.
A graph of the decline in American manufacturing employment (and conversely ability) in order to meet the profit targets of Wall Street, the globalist cabal that runs Washington, DC, and the progressive political leadership in America.

Product Placement in Stores

The complexity of product placement in stores is unknown to most Americans, but it shouldn’t be. The largest profits from the sale of ACME products went to the “Box Retailers”, not to the manufacturer. They made a profit margin of around 30% on each appliance, compared to the paltry 2-3% that the factory earned for making it.

  • Walmart
  • Sears
  • Target
  • JC Penny
  • Walgreens
  • K-Mart

Additionally, these stores placed pricing pressure on ACME to lower the price every year. Walmart had a policy of price reduction that equated to 1.5% off each model, each year.

Now this price reduction was not passed on to the consumers. Nope. The store kept the savings.

Though the price to the “Box Store” would decrease, the sales price would not. Thus resulting in a net gain in profits for the local stores of 1.5% each year for each existing product. This was important, as Walmart maintained a solid 30% mark-up over the factory cost. (The the factory cost mark-up was rarely more than 3%.)

That $100 vacuum cleaner cost $67 to make and ship. The store that you bought it from made $30, the factory made $3.

Globalism was fantastic for the wealthy. Their profits were never larger.

Though, not so good for the local, “Joe Blow” who had a family and needed to work to earn enough to meet the basics of a roof from the rain, cheap food to feed the family, and some beer to dull the senses.

Power Tool Isle in Home Depot in the United States.
Power Tool Isle in Home Depot in the United States. All of which are made in China and rebranded with American-friendly names.

As such, the profits were enormous for the company, and the owners (the ones that conducted the “hostile takeover”) rolled in the cash in mind-boggling amounts.

The amounts of profits were truly mind-boggling.

They used that money to “diversify” their company portfolio. They bought hotels, cruise liners, travel agencies, and were getting involved in Savings and Loan banking. Such was the high-flying life in the 1990’s. (Anyone remember the movie “The Wolf of Wall Street”.)

President Obama represented the Global Interests of a global socialistic community. He did not care for local Americans, as he viewed them as a part of an "old order" that must be discarded in favor of a new, more "enlightened" progressive way of doing things.
President Obama represented the Global Interests of a global socialistic community. He did not care for local Americans, as he viewed them as a part of an “old order” that must be discarded in favor of a new, more “enlightened” progressive way of doing things.

Unfortunately, many of these side ventures failed. Thus additional rounds of layoffs, and downsizing’s continued a pace.

This continued to be the story throughout the industry as the competition to ACME also implemented their modus operandi.

Then came the election of Donald Trump.

President Trump starts a “Trade War”

Donald Trump and Xi Peng.
Donald Trump and Xi Peng.

In 2016 though 2019 he raised tariffs on Chinese made products. With the percentage of tariffs constantly increasing. This continued until late Summer of 2019 when he demanded that American companies working and trading with China return their operations back to America.

It most certainly shook the will of most nations around the world.

I know it shook Wall Street, and afterwards, globally all consumers and manufacturers started to slow down operations to take a slower more conservative bent on the matters at hand. They slowed everything way… way down.

It started in 2016, and over the next three years, the global economy started to slow down and cool off. Orders out of America limped forward hesitantly, while orders from Europe kept pace, but were more cautious than before.

Nothing “crashed” as predicted by the “screeching heads” on the “blue panel” debates on television. (All actors reading scripts, and playing roles, don’t ya know.) But things slowed down. Things cooled off. Investors became cautious.

I get a phone call.

Walking the dog on the beach.
Walking the dog on the beach.

In September 2019, I was walking my dog along the beach near my house when my cell phone rang.

I normally don't keep my cell phone with me. But, for reasons related to habit, I had it in my satchel with me.

An old boss of mine, from my ACME days, tracked me down (How he was able to do so, I do not know.) and wanted to know if I would be willing to help them sort out the issues related to relocating their factories back to the United States.

I should have said no.

After all, our history was contentious. For, as soon as I completed my tasks with ACME, they immediately fired me, and made me sign a NDA in order to guarantee that I could get food stamps. No back pay, no severance package nothing. I couldn’t even go back to my office to get my personal effects. Pretty harsh, especially when you consider my very own personal situation…

… I had a wife with a very serious mental illness. And I was splitting my time between dealing with insanity of work issues and visiting her at the hospital. The layoff, at a time when my wife was suicidal, was a severe hardship. Well, for me at least.

Maybe you can handle an hysterical deranged wife painting the bathroom mirror with fingernail polish, while you are trying to “hit the streets” looking for new employment. I could not.

But that’s life. No one gives a rat’s ass about you.

Dilbert comic. It's so funny because it is (sort of) true. LOL.
Dilbert comic. It’s so funny because it is (sort of) true. LOL

It’s (as they say in America) “just business”. It’s the “American Way”, don’t you know. And you, as an American, should know. This is the truth, and this is the way it is. This is the real deal.

In America… it’s “just” business.

Being laid off without notice, or severence really blows. But that's the story of being an American worker during the last three decades.
Being laid off without notice, or severance really blows. But that’s the story of being an American worker during the last three decades. It’s the American way.

As was true through most of the 1990’s, treating employees as disposable paper cups often resulted in some bloody events.

But, in this case I said “yes” to my old boss. I asked a (relatively) enormous sum of money (expecting them to decline), and they agreed. Imagine that! I guess they were desperate.

After about two weeks of sorting out my personal affairs, we had a meeting in the conference room in one of their plush offices. It was on the 16th floor in this really nice (curtain wall) glass and steel structure that resided in Florida. What a life. They had really been doing well. Everything was new, and polished. It was a big change from the “hand me down” desks and cubicle walls that I dealt with back in the 1990’s.

Yeah. It looked something a little like this…

Corporate Headquarters
Corporate Headquarters

After the initial pleasantries and handshakes (You know, how was the flight, and did I like the hotel, etc.) , they asked me what was involved in moving the factories back to the United States, and so I put together some bullet points and made a PPT presentation to the upper management.

Making a PPT presentation.
Making a PPT presentation.

Capital Expenditures

The first point raised, of course, was costs. If you are going to move operations from one physical location to another, you will incur costs. What would those costs be?

The costs incurred would fall under numerous general categories;

  • Relocating heavy machinery and equipment (or the purchase of the replacements thereof).
  • Rules, fees, taxes and the costs associated with agency regulations that one must pay in the United States to operate a factory there. Do not be under the impression that you can just cut down a tree, install a power line, pave a road, and start putting up a pole building without having American government regulation at all levels involved.
  • Fees, charges, and associated bribes that you must pay when you are dealing with local American government. Make no mistake this is a very real issue and one that is kept quite hidden. After all it is quite illegal, and you all don’t want the pristine agencies of the FBI and DOJ putting their retainers on your efforts.
  • Rent or construction of new facilities.
  • The hiring of new staff to replace the Chinese staff. This will include all benefits as well as the various associated taxes, fees and social security benefits.
  • Associated relocation costs.
  • Associated tariffs in moving product inventory, and equipment from China to the USA.

It’s not so simple.

If you want to do something, it will cost money. Imagine that you are moving your house from Illinois to Los Angles. There will be costs. There will be the costs for the movers, the gas, the rental of the vehicle and the employment of the moving crew. The same is true for a business. There will be costs.

Some Key Points

Now, I would like to make some relatively important key points regarding moving a factory to China as compared to moving it back to China.

Firstly, consider what ACME did when the relocated the factory from America to China.

  • In the mid 1990’s, ACME formed a joint partnership / joint-venture with a Chinese company. ACME would take 70% of the profits, and the Chinese partner would take 30% of the profits.
  • ACME then shipped all their heavy manufacturing equipment from America to China. They physically removed it from the American factories, and shipped it to China. Then at the factory, they utilized both American and Chinese labor to set the equipment up, debug it, and shim the mechanisms into working condition.
  • However, it was well understood that once you set up a factory within China, you MUST have partial Chinese ownership. You absolutely cannot operate any factory in China without significant Chinese ownership. At that, let it be well understood that the Chinese co-owners MUST have at least 51% ownership in the company. The American owners will NEVER have more than 49% ownership of anything that they own and bring to China. It is Chinese Law (at least back in the 1990’s it was).
Also, let it be well understood that the upper management at ACME knew full well that this was the case. But they did not care. 

Their focus was on the short term profits, as was their charge. They fully expected that the company would eventually collapse long before there would ever be the need to relocate the factories back to the United States.
Semi-automated production line typically used in appliance assembly.
Semi-automated production line typically used in the appliance assembly. Picture is of a Bosch line prior to export to a Chinese assembly line.
  • Thus, any equipment brought into China will now require the co-owner’s (Chinese national) approval to remove from the Chinese factory and ship elsewhere.
  • In practice, this is often a big “NO!” There are some cases where the Chinese owner will permit the removal of old or antiquated equipment at a price. Often the price will be at market value or higher.
  • So, when ACME moved the equipment into China it was very simple. They moved it, and used their inherent labor to set it up and debug.

Yes, so when ACME relocated entire factories to China, it was a simple matter of firing all the American employees, boxing up the equipment, and handing it over to a Chinese partner. They, in turn, would own the equipment, train and staff the Chinese workers to use the equipment and ship the products back to America.

It was a model that worked well from the 1990’s up to around 2019. Everyone was doing it. American industry, as was Wall-Street, were all focused on quarterly profits. They could not see further than a few years in the future. The Chinese, on the other hand, think in terms of centuries.

  • However, to remove the equipment, they will NOW need the Chinese co-owner’s approval. This will often not be easy and it will come at a price. For they will be asking permission from their (now wealthy) Chinese partner to give up all of the capital equipment that resides in his factory. (And make no mistake, at 51% ownership, it is his factory.)
  • Please keep in mind that the cost of these manufacturing and assembly machinery are in the millions of dollars. As an example, an automated “brake” used to cut and bend aluminum sheet will equal the cost of a Lamborghini. Now, figure that each factory might have ten such machines at minimum. That is a lot of money.
Factories utilize so many different types of automation, that it is difficult to quantify exacly which ones are critial to the production end line goal, and which ones can be replaced by American manual labor.
Factories utilize so many different types of automation, that it is difficult to quantify exactly which ones are critical to the production end line goal, and which ones can be replaced by American manual labor. Photo is of an actual American joint-venture factory within China.

In short, what all this means is that American ownership of a Chinese factory is, at best, at 49%. As such removal of the equipment to America is problematic and will probably NOT occur. The Chinese business partner would keep the equipment, dissolve the partnership once the sales dissolve (easy enough under Chinese law) and end up owning the complete factory himself.

Thus the American partner is then forced to purchase all brand new assembly equipment from scratch and start off all over again. Only this time, due to the ravaging effects of inflation, the cost of the equipment is much more expensive than the initial purchase in the 1980’s and 1990’s. Thus capital equipment expenditures would seriously end up in the hundreds of millions of dollars alone.

Relocating a factory from China back to the United States is a prohibitively expensive exercise that costs an enormous amount of money. The only way around these costs are to emply Americans in an entirely manual assembly role and cut out all automation, quality checks and basic assembly standards.
Relocating a factory from China back to the United States is a prohibitively expensive exercise that costs an enormous amount of money. The only way around these costs are to employ Americans in an entirely manual assembly role and cut out all automation, quality checks and basic assembly standards.
Quick summary;
American manufacturing capital equipment is 100% American company owned when shipped to China.

American manufacturing capital equipment is only 49% American owned when shipping out of China. 

The difference in ownership will result in serious costs regarding the purchase of new capital equipment equipment for use within a factory in the United States. 

If the American management wants to go the legal route to resolve any issues with the Chinese partner, the Chinese legal system will rule in favor of the Chinese national. They ALWAYS rule in favor of the Chinese national. This is the way it works.

To put this in another way; to purchase new automation equipment for an American factory will entail enormous costs.

The only way that a business can purchase replacement capital equipment is with favorable banking and loan arrangements, but even with that, the amortization costs on most typical appliances will be on the order of an increase in 30% to 55% increase in the costs of the appliance.

Bill Clinton was quite satisfied with the trade arrangments with China, and supported it whole heartedly.
Bill Clinton was quite satisfied with the trade arrangements with China, and supported it whole heartedly.

Is it fair? No. But that is the situation that President’s Clinton, Bush and Obama were all quite satisfied with.

Technically Skilled Leadership

Another issue is the technical staff.

This is something that is given quite a bit of “lip service” in the industry, but is actually just a big smoke screen. If talented technical staff were actually important they would never be laid off. Right?

Well… Right?

Right?

Yet we know, by salary and HR surveys that the average duration for a technical (American) degreed professional (in America) at a singular job is less than two years. And, at that, the vast reason for their egress from the company was through firings, layoffs, right-sizing or what ever euphemism that might be popular at the time of the layoff.

Like I said. It’s a lot of words with no substance.

How to fire someone in America. Soften the blow so they don't go postal on you.
How to fire someone in America. Soften the blow so they don’t go postal on you.

Well, that is all just fine and day, except when you are talking about relocating a factory.

For you NEED these people, and you NEED their expertise. Otherwise, you will have all sorts of problems in production, resulting in quality disasters, and severe production delays.

Production Engineers are critical to the smooth operation of the production lines in a factory.
Production Engineers are critical to the smooth operation of the production lines in a factory.

No we are not talking about line supervisors, and accounting clerks. We are talking about the engineers that maintain and operate the complex automated machinery. We are talking about the design, industrial, manufacturing, and mechanical engineers that make the production lines hum efficiently.

Oh, yeah.

They used to be plentiful in the United States, but over the last three decades they have become a dying breed. Most, once laid off, could not find other similar work and so they migrated into other occupations.

When our nation’s coal miners found themselves out of work, the  left-media gleefully told them that they need to “learn to code.”  After  all, they were dinosaurs working, literally, with dinosaur fuels and  needed to be reeducated for the global, technological economy.  

The condescending chant that rained down from the privileged ivory towers of the leftist eliteLearn. To. Code. 

-Legal Insurrection

Some became bakers, while other ended up delivering mail for the Post Office. Some became teachers, while others became Bus Drivers. Maybe some even “learned to code”, as the Mainstream News Media laughingly taunted the unemployed professionals.

Design, production, manufacturing, industrial, quality and maintenance engineers are key talents that all factories require. Though over the last three decades, most of them have been Chinse, not American.
Design, production, manufacturing, industrial, quality and maintenance engineers are key talents that all factories require. Though over the last three decades, most of them have been Chinese, not American.

They, like myself, were forced to migrate to where the work is. If you are lucky, you never need to change and swap jobs. But during the 1990’s this was a near impossibility.

There are very few active technical factory experts in the United States today that are able and willing to relocate to a new post-China startup. They exist, but are decidedly no longer as plentiful as they once were. As such, once you find them, you will need to pay them a premium salary for their knowledge and experience.

Manufacturing engineers make sure that the process is set in place and the the workers can best manufacture complex and high quality products. WIthout them, the facotry will be plagued with all sort os quality problems, arguments, failures and delays.
Manufacturing engineers make sure that the process is set in place and the the workers can best manufacture complex and high quality products. Without them, the factory will be plagued with all sort of quality problems, arguments, failures and delays.

Now, that does not mean that they cannot be found.

They exist and are available in America. However you will need to pay them American salaries, and American benefits. Often with a benefit package that is ten times that of what the companies have been accustomed to paying their Chinese technical staff.

Process Engineers have an important role in the successful operation of any factory, especially those involving chemical and treatment processes.
Process Engineers have an important role in the successful operation of any factory, especially those involving chemical and treatment processes.

So ,yes there are technical staff that can be hired within America to work and maintain the factories. However, the cost to employ them will require a budget at lest ten times larger than the budget that is already allocated for the staff at a comparative Chinese factory. This cost will be added on to the cost of the product manufactured at the factory.

Training of staff

Compared to the two previous issues, this one is not as serious. It simply means that all those American workers that ACME must hire to work in the newly relocated factory must be trained. You would think that it wouldn’t be too much of an issue. We have been training workers to work in factories in America for many, many decades.

Only one problem though.

Factory manufacturing techniques have changed drastically since the mid 1990s. The Chinese staff will need to train unskilled American workers to operate the relocated equipment, and learn the process parameters.
Factory manufacturing techniques have changed drastically since the mid 1990s. The Chinese staff will need to train unskilled American workers to operate the relocated equipment, and learn the process parameters.

The people who know how to make the specialized products that ACME makes no longer exist in the USA. The Americans that used to know are all gone. Either they found new work when they were fired back in the 1990’s, or are now retired.

The ones that know how to operate the (new and improved) machinery, check the quality of the product, and are knowledgeable to quickly debug the process when things go wrong are all Chinese.

Which means, of course, to train your new workers, you must use existing skilled Chinese workers to do so.

Chinese supervisory staff training an American worker on site in America.
Chinese supervisory staff training an American worker on site in America.

You have two options;

  • Obtain a H1-B visa for the Chinese staff and use them to train and supervise the new American workers.
  • Ship all the new American workers to China for hands-on training at the Chinese factory prior to shipping the equipment back to the United States.

Both options have been used by various companies over the last few years. Each option has some pros and cons associated with it.

Chinese management training Americans on site in the factory inside China.
Chinese management training Americans on site in the factory inside China.

However, the reader should note that due to the availability of the H1-B visa in the United States, the ACME leadership discovered that they would have to wait a year to apply for new visas, as all the existing visas were taken by software engineers out of India. Thus forcing the more expensive route to ship Americans to China to train how to use the equipment.

Training of Americans to work in the returned factory from China will necessitate the training by Chinese nationals. This will be conducted either in China or in the United States depending on the availability of visa access.

Breakup of Global Relationships

Of course, in order to return an American factory out of China and back to the United States, there will have to be a period of contentious negotiation between the owners.

PPT on the key points in negotiating with the Chinese.
PPT on the key points in negotiating with the Chinese.

After all, and I hope that I made this clear, an “American” company residing in China is NOT 100% American owned. No. Instead it is a joint venture / partnership with the Chinese partner owning controlling interest of the entire factory, technical skills, intellectual property and capital equipment.

For any American company to do this will create a period of discomfort and strife, as most Chinese owners will not want to relinquish any controlling interest, nor deplete their internal resource pool. He would fight, aggressively, any attempts to dissolve the relationship, ship components back to the United States and have access to stock and supplier interests.

Trade negotiations between Xi Peng and Donald Trump. The Chinese are tough negotiators. Do not think for a minute that they will not take full advantage of any situation.
Trade negotiations between Xi Peng and Donald Trump. The Chinese are tough negotiators. Do not think for a minute that they will not take full advantage of any situation.

This entire matter would be contentious. As a result, most American corporate executives would refer the entire matter to their American legal branch to handle. But, and you all should know and realize this, American law has no jurisdiction in China. Chinese law is what is followed, and the courts will almost always rule in favor of the Chinese nationals.

The Chinese legal system will ALWAYS rule in favor of the Chinese national.

When ACME tried to dissolve their partnership with the joint venture, and went the Chinese legal route, the courts ruled that not only did the American firm not have any legal standing, but they then awarded the American 49% legal controlling interest to the Chinese factory owner as punitive punishment.

Thus as a result, the ACME American company ended up with 0% ownership of the company, with their Chinese partner ended up with 100% ownership.

China is a serious, serious nation. They do not fool around, and they have laws that protect Chinese nationals. Americans should realize this and consider alternative solutions to any legal issues instead of going through the “proper” legal avenues.

Loss of Market Share in China

How things have changed. I’ve since returned to China many times, and  I’ve watched its economy grow to become the second-largest in the world.  

Based on purchasing power parity (PPP), it’s the largest. And according to Credit Suisse,  the size of China’s middle class has for the first time overtaken the  U.S. to become the world’s most populous—109 million Chinese compared to  92 million Americans. 

-Frank Talk

It might surprise many typical Americans, but China is a POTENTIALLY much larger consumer market than America is.

Presently the United States is the world leader in consumer product purchases, but that will change in the future. Most projections place China in the leadership role in the early to middle 2030’s.

China is growing, and the amount of growth just boggles the mind, and Americans are absolutely oblivious to this fact.
China is growing, and the amount of growth just boggles the mind, and Americans are absolutely oblivious to this fact.

Thus, if you want to have a global “slice of the pie” for what ever products you make, you will need to sell them in China.

Now, in order to sell products in China, you will need a Chinese “presence”. This can be a regional headquarters, a partner factory, or some other kind of legal entity to “open the door” for your products to be sold in China.

China is a huge market that can be exploited by American factories and businesses. However, they must be free to be able to sell their products to Chiese consumers. Were China to implement Trump-style tariffs, this will not occur, and Germany, Japan and Korea will capture those markets.
China is a huge market that can be exploited by American factories and businesses. However, they must be free to be able to sell their products to Chinese consumers. Were China to implement Trump-style tariffs, this will not occur, and Germany, Japan and Korea will capture those markets.

Do not be under the erroneous assumption that you can just carry some of your products to China and then just sell them openly. Nope.

All products must meet Chinese regulatory requirements.

It is similar to that in the USA. (Remember the Billionaire Boys Club where they were having a difficult time importing Mercedes Benz automobiles into the USA because they would not meet the emissions requirements?)

Now, it is far, far easier to sell American made, or American sourced (out of a Chinese joint-venture, or a WOFE) than trying to exporting the product directly to China. There is already a legal presence within China.

An opportunity exists for American companies to sell to China. However, they must do so carefully and maintain their name recognition.
An opportunity exists for American companies to sell to China. However, they must do so carefully and maintain their name recognition.

Corporate Identity

What ever you do, you must maintain your logo and trademark or else you would no longer have any kind of “product identity” associated with your products. However, if you have partnered with a Chinese factory to make your products, then THEY, not you, own the registration and trademarks within China.

By relocating the “American” factory to America out of China, ACME ran the risk of totally closing off the Chinese Market. This is because their Chinese partner OWNED all royalties, Logos, Copyright, and trademarks for the ACME brand. Under Chinese law, as practiced, the Chinese person who first manufactures a logo, or uses a symbol automatically owns the rights to it. Once ACME leaves, they can never return back to China and use their brand. If they did so they would be in violation of Chinese law.

Long Term Consequences

 I long ago concluded that the world will eventually essentially  divide into two spheres: China and the United States. But what I have  not been able to figure out is what that will mean overall nor what that  will mean for particular regions and countries. In particular, I get  stuck when trying to figure out which countries will go to which side.

 I have always believed some countries will essentially be required to  choose between the United States and China, some countries will want to  choose between the United States and China, and some countries will  want to straddle between the United States and China. 

-China Law Blog

China is growing and it appears that the United States does not appreciate competition. The USA wants to maintain it’s role as a global superpower, fighting and policing the globe by taxation of it’s citizenry. While China is looking for economic dominance through cooperation with national partnerships.

Non-American Factory Sites

You know, you do not need to relocate the factory back to America. you can relocate it to another nation with similar conditions to China. Here, you can make a joint venture partnership between the Chinese factory and a local factory, say in Cambodia, Vietnam, or Laos.

Pass-Through Trade Logistics

There are work-arounds. Products made in China, can be shipped to a nation that does not have Trump-level tariffs against it. The shipping container would then go to this second “pass through” nation, the documents would then specify that it was made and originated out of the third nation. Then shipped to the United States.

 Of course, it is possible that the economic pain China is feeling  from the trade war has been mitigated by some businesses trying to “work  around” the tariffs. This is typically done by exporting to an  unsanctioned country where some “value added” is created before being  shipped onto the final destination – thus avoiding the tariff.

 This is a tried and tested formula with one of the more extreme  examples being Russia. It takes time to find alternative suppliers from  different countries or to develop domestic ones. When sanctions were  first imposed on imports from the EU, Russia companies used business  relationships to import EU products via 3rd party countries, including  Belarus. This put up costs, but ensured supply chains could continue  functioning until alternatives were found.

 If that has indeed been happening as a result of the US-China  stand-off, the most likely avenue is Vietnam. While US imports from  Korea, Malaysia and Taiwan have certainly increased, it is from Vietnam  that they have surged. ...

... It is difficult for an economy to build extra production capacity and  related supply chains in a short period of time to substitute even part  of the production from China. Vietnam’s manufacturing production growth  was quite flat at around 10% year-on-year in 2019. It was even slower  in 2018. It is hard to believe that the surge in Vietnam’s exports to  the US (in US dollar terms, remember) has all come from production  within Vietnam.
 The obvious response is that it hasn't. Chinese exports to Vietnam  have displayed a strong upward growth trend in 2019, which is in  contrast to the slowdown in 2018, and also in contrast to the moderately  flattish growth of Vietnam’s production. 

-ING

This is a mature solution. Many of the products that American believe are made in Germany, Japan and Korea are actually made in China. They are made in China and then shipped and stored in the respective warehouses for later shipment to the United States.

Pass-through trade option.
Pass-through trade option.

This option might increase the price of the products from 1% to 5%. This is a viable solution as opposed to the 30% to 40% tariffs that Donald Trump is talking about.

Some Really Good Links

Conclusion

"The Trump administration made a very serious miscalculation in launching the ‘trade war’ with China. It believed that either, or both, the leadership of China would submit to the Trump administrations threats or the Chinese population would not be prepared for a serious struggle with the US. Both calculations have proved entirely wrong. China’s leadership did not surrender to but hit back against the US attacks. Furthermore anyone who follows China’s domestic discussion, on what is now by far the world’s largest internet community, knows that this line was strongly supported by the Chinese population."

- China prepares for economic ‘prolonged war’ with Trump 

There are many considerations that a company must take into account when faced with a Presidential decree that the company relocate from China to the United States. It’s a complex issue with many facets.

When discussing relocation of American factories back to America you must also include the contentious corporate history over the last four decades that led up to the situation that exists today. Nothing happens in isolation. It is all the result of society, and corporate behaviors that are nurtured by the political class in Washington D.C..

In any event, it is up to each individual company to determine what actions would be in their own corporate interests. I would advise obtaining knowledgeable legal representation, and employment of experienced “old hand” expats residing in China, rather than some “expert” out of an “ivory tower” in Los Angles.

Other great articles

Here’s some articles by others in the business. They pretty much say the same things as what I am presenting here. Only they are better written. LOL.

Links about China

Here are some links about my observations on China. I think that you, the reader, might find them to be of interest. Please kindly enjoy.

Chinese reaction to the Trump Tariff Wars.
Popular Music of China
Chinese weapons systems
Chinese motor sports
End of the Day Potato
Dog Shit
Dancing Grandmothers
Dance Craze
When the SJW movement took control of China
Family Meal
Freedom & Liberty in China
Why are Americans so angry?
Evolution of the USA and China.
Ben Ming Nian
Beware the Expat
Fake Wine
Fat China
Business KTV
How I got married in China.
Chinese apartment houses
Chinese Culture Snapshots
Rural China
Chinese New Year

China and America Comparisons

As an American, I cannot help but compare what my life was in the United States with what it is like living in China. Here we discuss that.

SJW
Playground Comparisons
The Last Straw
Leaving the USA
Diversity Initatives
Democracy
Travel outside
10 Misconceptions about China
Top Ten Misconceptions

The Chinese Business KTV Experience

This is the real deal. Forget about all that nonsense that you find in the British tabloids and an occasional write up in the American liberal press. This is the reality. Read or not.

KTV1
KTV2
KTV3
KTV4
KTV5
KTV6
KTV7
KTV8
KTV9
KTV10
KTV11
KTV12
KTV13
KTV14
KTV15
KTV16
KTV17
KTV18
KTV19
KTV20

Learning About China

Who doesn’t like to look at pretty girls? Ugly girls? Here we discuss what China is like by looking at videos of pretty girls doing things in China.

Pretty Girls 1
Pretty Girls 2
Pretty Girls 3
Pretty Girls 4
Pretty Girls 5

Contemporaneous Chinese Music

This is a series of posts that discuss contemporaneous popular music in China. It is a wide ranging and broad spectrum of travel, and at that, all that I am able to provide is the flimsiest of overviews. However, this series of posts should serve as a great starting place for investigation and enjoyment.

Part 1 - Popular Music of China
Part 3 -Popular music of China.
Part 3 - The contemporaneous music of China.
part 3B - The contemporaneous music of China.
Part 4 - The contemporaneous popular music of China.
Part 5 - The contemporaneous music of China.
Part 5B - The popular music of China.
Part 5C - The music of contemporary China.
Part D - The popular music of China.
Part 5E - A happy Joe.
Part 5F - The contemporaneous music of China.
Part 5F - The popular music of China.
Post 6 - The contemporaneous music of China.
Post 7 - The contemporaneous music of China.
Post 8 - The contemporaneous music of China.
Part 9 - The contemporaneous music of China.
Part 10 - Music of China.
Post 11 - The contemporaneous music of China.

Parks in China

The parks in China are very unique. They are enormous and tend to be very mountainous. Here we take a look at this most interesting of subjects.

Parks in China - 1
Pars in China - 2
Parks in China - 3
Visiting a park in China - 4
High Speed Rail in China
Visiting a park in China - 5
Beautiful China part 6
Parks in China - 7
Visiting a park in China - 8

Really Strange China

Here are some posts that discuss a number of things about China that might seem odd, or strange to Westerners. Some of the things are everyday events, while others are just representative of the differences in culture.

Really Strange China 1
Really Strange China 2
Rally Strange China 3
Really Strange China 4
Really Odd China 5
Really Strange China 6
Really Strange China 7
Really Strange China 8
Really Strange China 9
Really Strange China 10
Really Strange China 11
Really Strange China 12
Really strange China 13
Really strange China 14

What is China like?

The purpose of this post is to illustrate that the rest of the world, outside of America, has moved on with their lives. That while they might not be as great as America is, they are doing just fine thank you.

And while America has been squandering it’s money, decimating it’s resources, and just being cavalier with it’s military, the rest of the world has done the opposite. They have husbanded their day to day fortunes, and you can see this in their day-to-day lives.

What is China like - 1
What is China like - 2
What is China Like - 3
What is China like - 4
What is China like - 5
What is China like - 6
What is China like - 8
What is China like - 8
What is China like - 9

Summer in Asia

Let’s take a moment to explore Asia. That includes China, but also includes such places as Vietnam, Thailand, Japan and others…

Summer Snapshots 1
Summer Snapshots 2
Summer Snapshots 3
Summer Snapshots 4
Snapshots Summer 5
Summer Snapshots 6
Summer Snapshot 7
Summer Snapshots 8
Summer Snapshots 9
Summer Snapshots 10
Summer Snapshots 11
Summer Snapshot 12

Some Fun Videos

Here’s a collection of some fun videos taken all over Asia. While there are many videos taken in China, we also have some taken in Thailand, Vietnam, Cambodia, Korea and Japan as well. It’s all in fun.

Some fun videos of China - 1
Fun Videos of Asia - 2
Fun videos of Asia - 3
Fun videos of Asia - 4
Fun Videos of Asia - 5
Fun videos of Asia - 6
Fun videos of Asia - 7
Fun videos of Asia - 8
Fun videos of Asia - 9
Fun videos of Asia - 10
Fun videos of Asia - 11
Fun videos of Asia - 12
Fun videos of Asia - 13
Fun videos of Asia - 14
Fun Videos of Asia - 15
Fun videos of Asia -16
The best way to cook marshmallows.

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