How Chinese Industry Got Too Good, Too Fast
How Chinese Industry Got Too Good, Too Fast
https://www.youtube.com/watch?v=EdlKQ6sSb_o
Tag: industry
Europe’s manufacturing slump shows no signs of ending
“European industry — and Germany first and foremost — was battered by the surge in energy prices following Russia’s invasion of Ukraine. The bloc rode out the immediate emergency better than expected, finding alternatives to Russian gas, for example, through imports of U.S. liquefied natural gas.
But the hope that European industry would swiftly recover has faded, even as the eurozone economy in the aggregate returns to growth.
Eurostat’s industrial production index for the eurozone remains below its 2021 level, and is trending lower. And policymakers are starting to realize that the turnaround they had expected is not materializing.”
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“The numbers underline the challenge of maintaining Europe’s competitiveness — and relevance — as China and the U.S. race to reshape the global economy within the context of an increasingly acute geopolitical rivalry.”
https://www.politico.eu/article/europe-manufacturing-industry-slump-weakened-eurozone-economy-energy/
Why China is winning the EV war
“The Biden administration has a climate goal that 50 percent of all new car sales in the US will be electric by 2030. Meanwhile, China already reached that milestone this year, in 2024. Over the past decade, China has pulled numerous levers to scale up its electric vehicle industry, and key to that strategy has been the development of the most globally competitive EV battery. Their efforts have spawned the world’s biggest battery companies, like CATL and BYD.
The Biden administration wants to keep Chinese cars and batteries out of the country — but that could be counter to our own electric vehicle ambitions in the short term.”
https://www.vox.com/videos/354382/china-electric-vehicles-video
American Manufacturers Need Tax and Regulatory Reform, Not Tariffs
“In a recent paper titled “Industrial Headwinds: Reducing the Burden of Regulations on U.S. Manufacturers,” published in the May 2024 Club for Growth Policy Handbook, economist Daniel Ikenson writes, “For manufacturing firms, the cost of federal regulations in 2022 was roughly $350 billion, or 13.5% of the sector’s GDP—a burden 26% greater than the inflation-adjusted cost of regulatory compliance in 2012.”
He adds that while the average U.S. company pays a regulatory compliance price of $13,000 per employee, large manufacturers shoulder a cost more than twice as much—$29,100. However, even some small-sized manufacturers face annual compliance costs of $50,100 per employee. This helps explain why manufacturing automation is so popular and why our fastest-growing companies are in service-sector tech, not manufacturing.”
https://reason.com/2024/05/23/american-manufacturers-need-tax-and-regulatory-reform-not-tariffs/
Boeing’s problems were as bad as you thought
“Experts and whistleblowers testified before Congress today. The upshot? “It was all about money.”
https://www.vox.com/money/2024/4/17/24133324/boeing-senate-hearings-whistleblower-sam-salehpour-congress
How Russia Produces 3 Million Artillery Munitions Yearly
How Russia Produces 3 Million Artillery Munitions Yearly
https://www.youtube.com/watch?v=UKs1mERKE14
Trump and Biden Both Get Globalization Wrong
“trade doesn’t need to balance. I have a trade deficit with my supermarket. They get more of my money every year. So, what? I don’t “lose.” I get food without having to grow it myself.
That’s a win for me and the food producer regardless of whether the food was grown locally or came from Mexico.
“Imports are great,” says Lincicome. “It means I can focus on what I want to do for a living and not go make my own food or make my own clothes. I can use those savings and buy other things that makes me better off.”
As long as trade is voluntary, trade is a win for both parties. It has to be; neither side would agree to it unless they think they get something out of the deal.”
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“Manufacturing output in the U.S. is near its all-time high. We make more than Japan, Germany, India, and South Korea combined.”
https://reason.com/2024/04/03/trump-and-biden-both-get-globalization-wrong/
Politicians Are Showering Manufacturing Companies With Crony Subsidies for ‘Job Creation.’ It Won’t Work.
“Even if these subsidies were to create a manufacturing boom, it probably wouldn’t lead to an employment boom because most manufacturing output today is produced by robots.”
https://reason.com/2024/04/04/politicians-are-showering-manufacturing-companies-with-crony-subsidies-for-job-creation-it-wont-work/
Biden is sending $61 billion to Ukraine. Much of it will pass through the US economy first.
“Washington is spending another $61 billion to help Ukraine. But most of the money will flow through the US economy first.
The new law will allow the Pentagon to send existing weapons — everything from bullets to missiles to tank parts — to Kyiv and then simultaneously backfill that inventory with new manufacturing efforts for US armories.
There are 117 production lines in about 71 US cities that are set to produce those weapons systems, according to research from the American Enterprise Institute (AEI).”
https://finance.yahoo.com/news/biden-is-sending-61-billion-to-ukraine-much-of-it-will-pass-through-the-us-economy-first-162914531.html
Marco Rubio Is Wrong About Industrial Policy
“Rubio doesn’t even get through the first paragraph of the piece before making a significant error. “Today,” he writes, Congress no longer views industrial policy with the same skepticism that it once did, but “what replaces unfettered free trade remains hotly debated.”
Unfettered free trade? That’s hardly an accurate description of the current status quo in the United States—a fact that Rubio surely knows, since Florida’s sugar and fruit industries are the beneficiaries of some of the most aggressive protectionist policies on the books. Even before former President Donald Trump ramped up the use of tariffs, America had more protectionist policies than other large, developed economies: A 2015 report from Credit Suisse called the United States the world’s most protectionist developed nation.
Rubio’s inability to describe the current status quo matters. It’s a failure of the ideological Turing Test, and it reveals that he misunderstands the economic policies he’s trying to shift—or that he is deliberately misinforming readers about them. Either way, this ought to call the rest of his claims into question.
Unfortunately, that’s far from the only mistake in the piece.”
https://reason.com/2024/04/04/marco-rubio-is-wrong-about-industrial-policy/