【KC’s Column】 When it comes to "global manufacturing", most consumers would see the "Made in China" label to be all much normal, while "Made in U.S.A" an anomaly. Nowadays, the re-emergence of American manufacturing, especially high-end sectors, is entirely possible. In the era of globalization after World War II, the supply chain layout has formed a polarization between high-end and low-end industries. High-end manufacturing is controlled by developed countries, while the low-ends have generated opportunities for developing countries to enjoy prosperity. Now, global risk adjustment and inflation have made great changes. The profit of low-end manufacturing is no longer low, while likewise, that of the high-end is no longer high. This brings in a new wave of industrial transformation. For China, its status as the "world's factory" is not necessarily sustainable in the long term. There seems much likelihood that the United States will revitalize its manufacturing sectors under the new trend, noted
ANBOUND’s founder Kung Chan.
>> Currently, two sources of the cost crisis in the world arise: the first is Ukraine and the other is China, exhibited economists at ANBOUND. The first source is caused by Russia's invasion of Ukraine, and the second is because of China's zero-COVID policy. The war in Ukraine is not an issue that can easily be resolved within a short period of time. Even if there is a temporary truce, the confrontation between Ukraine and Russia will see no end for now. As for the second source, one knows China as the world's second-largest economy, one of the largest producers, and a major trading country, with its global influence going up. If China is entangled in the struggle against COVID-19 too long, its economy will definitely be seriously hit. This in turn will significantly push up the cost internationally. These two sources of the cost crisis will not be resolved for the time being. New reality may lead to the re-distribution of industries worldwide. From this perspective, it is inevitable that the world will be forced to readjust and deploy industries in each of the corners.
>>More and more signs come out to be indicating that the alliance of Ukrainian supporters, including the United States, the United Kingdom, the European Union, and other countries, are amidst the widening rifts. They look not to reach to unified views, each one has its own affairs, but all want the war to end as the soonest as possible. It is quite apparent that the Western alliance is very loose in their action, more fissures among them are forming. Assuming a protracted war is fought, the survival of the West would be at stake. If Ukrainian President Volodymyr Zelenskyy were to depend on those Western politicians, he could only make compromises and accept the harsh reality.
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