Chinese authorities can now retaliate against foreign firms that move factories to countries like Vietnam or India, or reshore production back home. They could also face fines and supply chain blacklisting if they comply with United States and European Union export controls or sanctions targeting Chinese entities.

“It’s effectively meant to derail de-risking measures such as those the EU and member states, including Germany, have been taking to reduce dependency on China,” Rebecca Arcesati, an analyst at the Mercator Institute for China Studies (MERICS), told DW.

  • EvergreenGuru@lemmy.worldEnglish
    3·
    4 hours ago

    This will slow the offshoring from China to other countries, but will also disincentivize new production and foreign investment in China. Longterm China will have to deal with a more competitive economic environment, but for now it’s protecting its advantage.

    Moving production abroad is difficult considering the supply chains China has meticulously built over the past 3 decades. There are some metal ores for which the Chinese are the sole processors. They have a monopoly on them and no industry can go around that without building their own processing infrastructure (a costly business that is already perfected in China).

    • Skyrmir@lemmy.worldEnglish
      4·
      5 hours ago

      It’s an authoritarian machine. And brutally efficient at this point. It’s what Trump dreams he can do better with his face on it, and underage hookers.

      • LustLife@fedinsfw.appEnglish
        1·
        2 hours ago

        Yeah but I guess the issue is also that West has slowed down, imho, in almost all spheres. Especially the Western Left is at its lowest point, or so it feels.