Not directly, it’s just a prod to think about the subject a bit more. The IMF wouldn’t push for this if it was of benefit to anyone but the USA and maybe Europe.
The real answer is that, if by “historically oppressed” they mean “poor”, labour costs and purchasing power there are both lower and so it will be within their means to subsidise the manufacturing that they themselves are able to consume, probably even at a lower price than China. If they’re historically oppressed but actually have money now then obviously they can just use that.
To be clear I’m mainly referring to African countries, though there are others too. Any country that isn’t presently industrialised will be prevented from developing their own industrial capacity by their Chinese competition (assuming the prices are correctly fixed). In general I think it’s bad because the lack of internationally dispersed manufacturing ownership contributes to unequal power relations between nations (i.e. imperialism and neocolonialism). A highly protected world-factory in China seems to present a viable model for world hegemony that could replace the financialist model of the United States. Both are bad.
I think they will also have to subsidise or otherwise incentivise manufacturing in their own countries to develop it but like I said their labour costs are lower than in China so they have some competitive advantage there already. I agree it’s bad that the capacity is not more distributed but I don’t believe that China’s internal subsidies will prevent any country from doing this, only post industrial countries which already have the money to buy large amounts of Chinese exports.
Not directly, it’s just a prod to think about the subject a bit more. The IMF wouldn’t push for this if it was of benefit to anyone but the USA and maybe Europe.
The real answer is that, if by “historically oppressed” they mean “poor”, labour costs and purchasing power there are both lower and so it will be within their means to subsidise the manufacturing that they themselves are able to consume, probably even at a lower price than China. If they’re historically oppressed but actually have money now then obviously they can just use that.
To be clear I’m mainly referring to African countries, though there are others too. Any country that isn’t presently industrialised will be prevented from developing their own industrial capacity by their Chinese competition (assuming the prices are correctly fixed). In general I think it’s bad because the lack of internationally dispersed manufacturing ownership contributes to unequal power relations between nations (i.e. imperialism and neocolonialism). A highly protected world-factory in China seems to present a viable model for world hegemony that could replace the financialist model of the United States. Both are bad.
I think they will also have to subsidise or otherwise incentivise manufacturing in their own countries to develop it but like I said their labour costs are lower than in China so they have some competitive advantage there already. I agree it’s bad that the capacity is not more distributed but I don’t believe that China’s internal subsidies will prevent any country from doing this, only post industrial countries which already have the money to buy large amounts of Chinese exports.
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