An article about the expansion politics of Chinese Companies:
Basically they develop themselves towards East Asia in order to counterbalance shrinking income in their homeland (Correct me if I'm wrong)
Quote
Trade data suggest that these new factories rely heavily on imported Chinese components rather than local supply chains. In the top ten destinations for Chinese greenfield FDI, imports from China of intermediate goods used in manufacturing have nearly tripled over the past decade. COSCO, a Chinese shipping giant, recently added capacity between China and Mexico, in large part to ship more to factories near Mexico’s border with America.
Johnson Wan of Jefferies, an investment bank, reckons the main reason Chinese firms are building factories abroad is to avoid tariffs. Proximity to China’s robust supply chains has typically been a competitive advantage for Chinese firms, notes Guoli Chen of INSEAD, a French business school. True, factory wages in China have risen sharply, quadrupling since 2010 to over $8 an hour, well above the average in South-East Asia. But manufacturing at home is usually still the cheaper option, thanks to China’s huge economies of scale and well-developed infrastructure.
Johnson Wan of Jefferies, an investment bank, reckons the main reason Chinese firms are building factories abroad is to avoid tariffs. Proximity to China’s robust supply chains has typically been a competitive advantage for Chinese firms, notes Guoli Chen of INSEAD, a French business school. True, factory wages in China have risen sharply, quadrupling since 2010 to over $8 an hour, well above the average in South-East Asia. But manufacturing at home is usually still the cheaper option, thanks to China’s huge economies of scale and well-developed infrastructure.
The entire article is here https://www.economist.com/briefing/2024/08/01/chinese-firms-are-growing-rapidly-in-the-global-south
The freed version you find here: https://archive.ph/56loE
I wonder when the US Companies begin to wake up? Latin America is open for trade business if you like, also thanks to old free trade agreements which were not so free for the home industries of the lucky countries.
Not so free as mainly worthwhile companies were just swallowed and got a head of management working with translators, There must be latino duolingo mid level managers by now.