China could be at risk of losing its position at the centre of the technology manufacturing world as increasing numbers of producers move their operations to other nations in order to combat rising wages and ongoing trade concerns. Taiwan’s WantChinaTimes, citing a report in China’s influential Economic Information Daily, said …
Does ANYbody rational believe that it really still is wage increases behind this?
Surely, the recent security matters regarding the built-in backdoors allegations will be seen soon as the real reason to strip Chinamof the Foxconn crown. If other sites can be sourced, the foreign companies may even be subject to force clauses (by foreign companies mainly fro the USA, EU, and Korea (and others) to deny tours or employment of Chinese nationals, and to screen new hires for connections that are questionable, and to monitor the movements of those who can afford to travel abroad.
After all, if the allegations are true, or not true, none of these countries want to worry about back doors into their banks, financials, manufacturing, legal, intelligence, utilities, and military systems. Starting outside of China with contractors seen as a "clean slate" might alleviate pressures from countries' militaries. It might even in some ways be construed as a jobs-saving and even a jobs-making move.
But, we shall see, shall we?
OTOH, what kind of economic repercussions could China threaten to, say the USA regarging buying up US debt, should the USA be pegged as the instigator of diverting high tech manufacturing to other countries? Would China call in debts, or just maneuver to buy partial or full ownership of the supposed "fresh security start" companies?
This could be interesting... Will it be time to pop some popcorn and watch the show as numerous countries get dragged into this? It would be interesting to know what election pundits have to say since this could affect voter confidence in the US cycle. Not sure how much it affects Korean voters, or those in the EU having cycles in the next 6 months.
And when the companies of the world have run out of cheap countries to exploit?
Where do they go? Fully automated? Who then has a job and money to BUY the product. Companies are amoral and only care for the profit motive (fair enough, it's legislated for), but at some point they run out of cheap labour and THEN the big movement happens...
I'd LOVE to live in a post-scarcity economy (Star Trek et al) but I don't think I or my kids are ever going to see it, a few powerful interests want to keep the economic benefits to themselves.
Re: And when the companies of the world have run out of cheap countries to exploit?
at that point robots will be used to do all our work. until they overthrow us and become the new masters.
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