[maerF0x0]

IMO our "costlier manufacturing" would be capital intensive but not high amortized cost.

If we didnt have trade relations with China we'd automate the terrible jobs that we get chinese citizens to do for low wages. I believe the only reason we export work is because once you include capital cost (upfront investments) its cheaper/easier to have a human do it.

Of course, there'd be some ramp up time required where our stuff would be really expensive. Its going to happen anyways as Chinese citizens become more and more affluent and demand the middle class life of the rich world.

[ProAm]

I agree but even with the upfront costs of automating, where do you think the automation hardware is going to come from?

[maerF0x0]

I'd say that's the very reason the upfront costs are high. We dont get good automation technology from China, so we have to manufacture it here. Thus its expensive up front.