Remix.run Logo
Grombobulous 5 hours ago

I think Western people still call this situation “outsourcing” when in reality what is happening is that China is better at manufacturing than everyone else, and they’re starting to be better than everyone else at design and engineering, too.

When we buy software from Silicon Valley or a nice Mercedes Benz from Germany we don’t use this same language “outsourcing.”

Colloquially, outsourcing implies low quality or cheap price. No, what’s happening here is that China makes the best products in numerous categories and we are choosing to import them, because the best products are the most desirable.

Danox 2 hours ago | parent | next [-]

The west is interested in funneling most of the money to the top no matter what for the last 60 years that has been the drum beat/cry It can’t be done. It can’t be done.

In America, there is one fast food place that does it differently than everyone in the market they don’t franchise and they don’t lease/rent.

They own everything as they expand (the land and the building), which means it’s a little bit slower when you expand, but they don’t care but they are very profitable.

The owner probably gets a call every other week from large equity companies trying to sell them on doing it like everybody else and their pitch they can make you a worldwide company if you just let them in to f you.

throwaway63467 5 hours ago | parent | prev | next [-]

Well at this point they are probably the only country in the world that can produce a car end to end starting from the raw iron ore and other elements up to the chips and software that runs on them (I’m sure they will still need to import some small stuff probably like Rhodium or Iridium maybe), who is going to compete with that? Everything done in country, no tariffs at all throughout the entire production cycle.

That said some of these industry especially metallurgical ones will never return to Europe or US as they basically destroy and pollute the environment on a large scale, in China that still seems acceptable but also might change promoting them to outsource to other countries which they already do in some areas I think.

geysersam 2 hours ago | parent | next [-]

I find it quite strange en people take a development that has happened over the last ~50 years, little more than half a lifetime, and confidently state that now "it will always stay like this". Things always change.

Imagine what those kinds of people would have said in China in the 70s, with western industries being vastly more advanced and efficient. "It's over, we will never catch up." they would probably have said. Wrong then, more wrong now.

coliveira 3 hours ago | parent | prev [-]

> China that still seems acceptable

China has made a tremendous effort to move to a clean(er) industrial system, using a lot of renewables and clean energy and improving environmental standards. At this point production in China is probably the best for the environment compared to most countries, including the US that is deeply invested in oil production.

Danox 2 hours ago | parent | next [-]

China evidently is pushing to move to sodium ion batteries. They didn’t have to. They could’ve stuck with lithium. I’ll let you guess what what would’ve happened in the United States they would’ve said we don’t have to this lithium already works. Why do you want to upset the Apple Cart.

They are also moving close to a point where they will bring Thorium Reactors on line they don’t have to. They could just stick with uranium, but they’re not.

Is this part of the fact that they have engineers running a lot of of the things at the top of their government instead of lawyers?

They seem to be building a lot of infrastructure they are in the process of building several dams on the Brahmaputra River.

https://en.wikipedia.org/wiki/Medog_Hydropower_Station

UltraSane 2 hours ago | parent [-]

It does seem that China is run by engineers who like to build cool stuff.

UltraSane 2 hours ago | parent | prev [-]

United States: 384 gCO2/kWh

China: 525 gCO2/kWh

https://ourworldindata.org/electricity-mix

AngryData an hour ago | parent [-]

But we do have to consider how the speed in which it is dropping. China uses about the same percentage of fossil fuels for energy production as the US right now, but more of it is coal so it is dirtier. However they are aggressively installing and promoting renewables and nuclear power, built themselves, and their pollution standards are rapidly increasing. While in the US renewable and nuclear investment is and has been pretty crappy.

Grombobulous 17 minutes ago | parent [-]

The fact that China is not that far above the US while being the world's factory and having 4x the population is pretty impressive.

And like you said, China is putting a real effort in. I don't see the US trying to reduce domestic short hop flights with electric high speed rail. I don't see the US trying to replace gasoline cars with EVs. I don't see the US curtailing structural incentivization of pickup trucks and SUVs.

The main US policy seems to be "spend trillions on wars for oil" rather than accepting the inevitable decline of oil and planning around it.

yoz-y 4 hours ago | parent | prev | next [-]

Fair point. Outsourcing was not the right word to use, China today makes products over all quality ranges and almost always they are cheaper than any other alternative. “Giving away” would be a better word.

rayiner 4 hours ago | parent | prev | next [-]

I think it’s a matter of perceptions catching up to reality. 15 years ago China was definitely still ripping off american products down to the english silk screening.

smallmancontrov 4 hours ago | parent | prev | next [-]

China didn't get that way by magic. They ran the same playbook that allowed Alexander Hamilton to snatch manufacturing from Great Britain to the US, and the US gave up manufacturing for the same reason the UK gave up manufacturing (suppression of labor interests).

It will be interesting to see what China does. They aren't ideologically committed to exclusively serving the interests of the wealthy, but they still have lots of rich people in the (ahem) Communist Party, so who knows.

xanthor 3 hours ago | parent | next [-]

China and Vietnam are the only countries worldwide which have executed bankers for corruption in recent decades. No ahem necessary.

geysersam 2 hours ago | parent | next [-]

It's striking that they recently arrested one of the richest men in the country, the Evergrande founder, for fraud. Seems unthinkable in the US/Europe right now.

applicative 2 hours ago | parent | prev [-]

Were they guilty?

Danox an hour ago | parent | next [-]

The people in China that made the decision on that antifreeze in toothpaste, and the 300 pigs in the river or that graffiti tower in Los Angeles across from the Staples Center. I don’t think those people walked.

That is not to say that in time they’ll start to do many of things that happens in the west where those at the 1% or 2% walk away, in time China may drop down to that level, on the other hand, I would like to believe the United States will start to have the same reaction that the country had when Sputnik went around the Earth and change course and I don’t mean sanctions, tariffs, wars, and threatening neighbors to the north and to the south.

xanthor 44 minutes ago | parent | prev [-]

Do you find that far-fetched?

peezd 4 hours ago | parent | prev | next [-]

I can't imagine it going any other way than what we've seen from every other country in your set of examples, honestly.

3 hours ago | parent | next [-]
[deleted]
faitswulff 3 hours ago | parent | prev [-]

China actually penalizes, imprisons, and even executes its billionaires, so that’s different.

applicative 2 hours ago | parent | prev [-]

The industrialization of USA comes after the civil war, thus long after e.g. Charles Dickens, to say nothing of Hamilton.

smallmancontrov an hour ago | parent [-]

Hamilton set the strategic agenda. Do you want to argue that US industrialization didn't follow the broad strokes of this plan?

https://en.wikipedia.org/wiki/Report_on_Manufactures

https://en.wikipedia.org/wiki/American_School_(economics)

Parallel: the industrialization of China for the most part happened after Deng Xiaoping, but are people wrong to credit him for setting the course?

andelink 20 minutes ago | parent [-]

I mean, Deng Xiaoping is/was a huge influence in _our_ lifetimes. It was only the 1970s, just fifty years ago, when he was effectively the head of state. That’s like yesterday. I’m not saying Hamilton doesn’t have the influence you’re describing, but it’s not really an equal comparison given the huge difference in timeframes. Late 1700s is a ways away vs the 70s.

saati 3 hours ago | parent | prev [-]

It's manufactured in Taiwan.