Is China’s High-Tech ‘Overproduction’ Killing Jobs. Chinese High Tech Manufacturing is the second wave more devastating to US manufacturing.

China second Shock to the Western World. High Tech Manufacturing.

The Chinese High Tech manufacturing overcapacity has threatened EU and US National Security in depressing their domestic manufacturing sectors. We will see then end of Audi, BMW, Renault, Rolls Royce, Bentley, Ferrari, Mercedes Benz, and the once upon a time Elite European car manufacturing undermined by not only the Korean and Japanese high tech high quaality cars, but, with the flood of Chinese cost effective quality high tech EVs Car, Trucks and Drone vehicles. Overcapacity by China is consumer led and the consumer will pick and choose whereas Governments will interdict with HIGH TARIFFES Protectionism.

Australian feeble Solar Panel industry proposal.

The Albanese Government had recently announced the establishment of the domestic solar panel manufacturing industry which will directly compete with the Chinese Panel manufacturing industry which is likened to the Australian and New Zealand Car Manufacturing Industry hoping to compete with more affordable and cost effective car manufacturing sectors within Asia. Subsequently, to the uneven competition in domestic car manufacturing industries within Australlasia was the end of Car manufacturing in Australia and New Zealand.

The likelihood of Australian Domestic Solar Panel factories in competing against the Chinese Solar Panel industry monopoly will under cut the local industry by flooding the domestic market with cheaper, and very high quality Chinese made Solar Panels.

The long term success of the Australian domestic solar panel industry will depend on Government intervention with protectionism and high tariff regulations.

Unfortunately for Australia, like the car manufacturing industry the Australian Solar Panel manufacturing capacity may already be an industry dead on the water before it has even started.

Chinese reduces the US domestic manufacturing industries.

Chinese low end manufacturing of toys, games, gadgets, glassware, and affordable goods flooding the US domestic market had successfully undermined the local low tech manufacturing throughout America, resulting in Nationwide US job losses. The US had moved from 30% labour force within the Manufacturing industry to 15% labour force attributable directly to the importation of affordable Chinese made Goods.

High Tech, second shock.

The second wave of the Chinese trade shock to the US economy is even more devastating to the American manufacturing industry and the American Labour Market. The High Technology made manufactured Goods, like high tech Electric vehicles, and high tech manufactured goods and services.

The existential threat to the American manufacturing industry is palpable underscored by the OVERCAPACITY Mantra, by Yellen and the Biden administration.

The result of the Overcapacity outcry has been the reactionary response to Protectionism via the CHIPS Act, and Protectionist policies and intitatives to ensure that the Chinese flooding the American consumer market is curtailed and slowed with high tax added Chinese made EVs etc.

The problem with the American Capitalism is the consumer led economy which means that the Chinese are able to continue to provide what the American Consumer want and need which will overlook the patriotic allegience to Buy America Made manufactured goods that may invariably be inferior in quality.

The Chinese EVs with superior Lithium-ION Batteries gives Chinese EVs superior performance comparable to European EVs, and even the famous Elon Mush Telsa EVs. Again, reemphasising the Chinese High Tech industry led by Chinese Semiconductor development driven by the US CHIP Act, has necessitated the need for the Chinese to develop their own Semiconductor Legacy Semiconductor factories to Fabrication Factories to mass produce not only low tech semiconductors for toys, and gadgets, to tvs, washing machines, sewing machines etc, but, in high tech smart phones, military radar and sonars, military missiles, space program rockets and satellite technology. The Chinese have competed with the Best American and European techology and have not only caught up with the Americans and Europeans but have even surpassed their levels of excellence and quality of High tech goods.

The Chinese EVs is a case in point of advanced Chinese high tech industries which have rivalled the very best in Europe and American EVs and have revealed innovative technological advances that even the traditionally more advanced European and American high tech industrial complex were astounded with the level of sophistocation by the Chinese high tech industrial complex in recent years.

Overall, the threat of overcapacity is perceived as scaremongering by the China's pacing rival the US and by the EU Countries and their fears invariably may be warranted. However, the realities of nacent rise of the Chinese Manufacturing global reach and capacity is a tour de force that is matched only their ergonomic efficacious Population.

In the likely outcome of the Trade war between China and the USA and the EU, the Overcapacoty fear may be an foreboding reality of how American consuermism will eventually concede to the manufacturing dominance of the Chinese manufacturing efficiciency which is overmining the lacklustre and hitherto arrogantly conceited Eurocentrism by American and European attitudes to technology.

Enjoy the Trade War. China wins in the long run!

Tim Tufuga

Source: 

1. CNA Insider, Youtube.com, 

https://youtu.be/BQ23sgi_mgw?si=5DJNi_pwO0RLad4m