Is restriction of US export to China killing its own hi-tech industry?

Is restriction of US export to China killing its own hi-tech industry?

Here’s one aspect of China’s manufacturing capacity that is rarely mentioned in mainstream western press. By restricting export to China, the US government is giving the largest manufacturing markets to its main competitors. The US hope that by restricting hi-tech export would prevent China from developing its own hi-tech industry. However, the reality is that companies from Germany, Japan, France and Taiwan etc are the major winners. As of now mainland and Taiwan companies accounted for 55% of the world market in Five-axis CNC machine. Technology is not a stagnant and exclusive national attribute, any country who aspire to it and willing to work hard and invest in it will develop it. There is just no exception to the rule.

There’s actually a time when the US sees China as a military allies against the Soviet Union. From 1986-1989,,plastic injection mold, the US actually stop export of arms to Taiwan and instead sold military equipment to the mainland. Unfortunately, the June 4th incident destroyed all that cooperation. So instead of using GE LM2500 gas turbine like in the Type 52, the subsequent Type 52B and Type 52C destroyers uses Ukrainian turbines, and instead of buying more Sikorsky S-70 helicopters, China ordered hundreds of Mil-17 from Russia. And to complicate matter, the Type 54 frigate, Type 39/41 submarine use engines and sub-component imported from France, Germany and Russia.

The fear that China will reverse engineered all products is a myth. There are just some sub-system or weapon system that is simply cheaper to import than to develop oneself. For example, the Chinese navy might have requirement for ten GE LM2500 turbines, however, no factory in China can make them cheaper than GE. The simple rule of economic of scale still matters, the US have over 300 in service in their navy and also export them to 29 countries. The same apply to engines and parts for the S-70, it simply doesn’t make economical sense for Chinese industry to make parts for them.

In reality the US embargo of hi-tech products actually hurt US economy more than it does that of China because if the embargo was never in place in 1989, US companies would have made lots of sales taken up by producers from other countries. The biggest competitor to US as a manufacturing hub does not come from China alone, in fact Chinese industries making those dollar store item (soon to be two dollar item) are sun set industry that no business or banks in the US want to invest, the razor thin margin of 2-3 % from millions dollar of investment in factory does not make financial sense. However, US politicians and consumers seems oblivious to the fact that it is companies from EU and Japan, Korea, Taiwan etc that is having the largest TOTAL trade deficit with the US.,Metal Hydraulic baler, On top of that, due to closer wages and technological content, it is where US industries should thrive in competition but did not. The problem clearly lies with the positioning of US industries, restrictive trade practice and wrong focus. Can anyone imagine Boeing, Intel, AMD, HP, Apple etc not allowed to export to China? Basically by cutting off the 2nd largest import market (soon to be the largest), the US administration is doing no favour to its industry, and economic well being of the country as a whole.,injection molded,

Last but not least, the US never look to its import of oil and gas as a deficit. By not addressing this real issue and blaming dollar store items and OEM manufacturing from China as the cause of the decline of US manufacturing is bordering on lunacy. By using the Apple iPhone, iPad as example, one can clearly see that China’s industrial input into the products stand at around 5-10% for nearly most OEM export. The same hold true for all Chinese OEM exports to countries worldwide. US and other multi-national corporations make anywhere from 3-10 times more on each product exported from China than Chinese OEM factories.

Líbí se ti tento článek? Přidej ho na Top Články