Since so many people complain about the debt we owe to China and how they get all our jobs, I thought it would be an ironic twist of fate if we found out the majority of their economy depends on us. Like, if all US companies pulled out from China, what would the resulting economic epidemic and unemployment situation look like?
1.2 billion people in China vs 330 million in the U.S
There is no way in hell our outsourced jobs make up a majority of their jobs.
I don’t have a source, but my impression is that a very large percentage of the manufacturing jobs that came to China were already being done in Third World countries.
That is, a lot of American factory jobs had already gone to Mexico, Korea, Taiwan and Malaysia decades ago. China then took those jobs from Mexico, Korea, Taiwan and Malaysia.
That’s probably true. In the original Toy Story, 1995, Buzz Lightyear is dismayed to find out he was made in Taiwan. Now Taiwan is known for semiconductor manufacturing, and anything as cheap as a plastic kids toy would be made in China.
We imported $399 billion of Chinese goods in 2011. Cite. Chinese GDP is about $7.5 trillion, so goods being exported to the US equals around five percent of their economy. That’s actually a sizable percentage: we spend just shy of the same percentage of our GDP on the US military each year.
Technically, Taiwan is still China. (Either “renegade province of PRC” or “only real Republic of China, not like those 1 billion Commie imposters.”)
And a fair bit of semi fabrication is in the PRC. I’m not sure how much of the brains behind semiconductor engineering is there; I suspect a lot of it is just foundries, fabricating someone else’s designs. Still, that would be “Made in China”.
It goes in waves, as the country develops the infrastructure and training to produce fancier, higher tech products - but then those trained people are priced out of the elementary 9"cheap plastic crap") industries.
When I was a kid, “Made in Japan” had the same cachet (1960) as made in China does today. nowadays, a lot of stuff, especially clothing, is no longer made in China because Vietnam and Bangeladesh workers are cheaper.
The first wave is textiles; anyone can push stuff through a sewing machine, and the machines are not that high tech. Plastic is next - needs fancier chemicals, more complex machines. Then tehre’s more precise stuff - cameras, electronics assembly, TVs, etc. Then tehre’s real hi-tech, cars, and other stuff that needs good quality control and real engineers and chemists, and people who can mantian that higher-tech manufacturing equipment.
We could repatriate a lot of the jobs, make everything here - odds are we’d need to import a lot of people, (re)building the factories would be a major task. Then, of course, if we did not buy the sneakers and salad spinners from China, they would not buy Boeing aircraft. Trade is a 2-way street.
A lot of the major rust-belt type of manufacturing went overseas (or closed, because voerseas was cheaper to buy) years ago.
The biggest complaint with “jobs stolen” is when a plant explicitly closes, and the same company acquires intermediate of finished goods from overseas. An even bigger complaint is when jobs like telephone support, network management, etc - high-tech and knowledge jobs, or customer service jobs - are being done in Bombay rather than in N. America.
Yes. I am aware of the political connection of Taiwan and the PRC.
Taiwan has some of the most advanced (production) wafer fabs in the world. Whatever China has was stolen from spies in Taiwan and is a few years behind.
All of these foundries manufacture other companies designs. That’s what they do; they are wafer fabrication foundries. We send them design files, and they send us wafers.
And the wafers come with “Made in Taiwan” stamped on them.
I doubt the wafers come that way. The finished chips might, but not the wafers. If the packaging and testing is done in another country, then that country might have the “Made In …” stamp.