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Highly-automated, "clean" manufacturing is all well and good for billion-dollar highly-capitalized, politically-sheltered megafactories, but what about the other 90% of manufacturers? Manufacturing is a dirty, dangerous, manual business. I think the small guys will tell you that environmental regulations killed manufacturing in the west, not labour costs. We've been living in lala land with it all offshore, out of sight. If US/EU-level environmental regulations got applied and enforced globally, we'd be sent back to the stone age. Not to mention the litigation risks, intellectual property risks, trade union cartels, needing to hire an electrician to change a lightbulb, etc. (All added up, it's hopelessly calcified, but whatever...) Don't get me wrong - I really care about the environment - but most regs here are just to look good, not actually about stuff that matters. And pushing it into the third world, where they don't protect the environment at all, is counterproductive. |
It can be, but it can also be clean, safe and highly automated. Fly-by-night operators that run dirty and dangerous shops are not the basis of a sustainable manufacturing economy. China is just damned good at manufacturing. They have everything that is needed - skills, capital, logistics - at an immense scale. They don't offer a cheap but inferior substitute for western manufacturing. They offer speed, flexibility and scalability that western countries could only dream of.
Xi Jinping has a degree in chemical engineering. His predecessor Hu Jintao has a degree in hydraulic engineering. His predecessor Jiang Zemin has a degree in electrical engineering. That is the fundamental reason why China is a manufacturing superpower - for thirty years, the government has been run by people who actually know how to make stuff.