In the past, while exports from China, was important for foreign companies, the new situation, is that it is increasingly more profitable to sell within China.
Something like, close to half of GM’s profit from auto sales, are to customers inside China. They charge normal worldwide prices for their cars, but the labor costs are a fraction of what it is in America.
This is what GM risks losing, in an ever increasing trade war with China.
For another example, Intel miscalculated during Obama’s reign, and lost out on billions in sales, because the U.S. wanted to restrict advanced CPU server chips to China. What happened instead? China designed their own CPU chips.
iPhone assembly is really not that important, or profitable, to China anymore.
In the past, while exports from China, was important for foreign companies, the new situation, is that it is increasingly more profitable to sell within China.
Something like, close to half of GM’s profit from auto sales, are to customers inside China. They charge normal worldwide prices for their cars, but the labor costs are a fraction of what it is in America.
This is what GM risks losing, in an ever increasing trade war with China.
For another example, Intel miscalculated during Obama’s reign, and lost out on billions in sales, because the U.S. wanted to restrict advanced CPU server chips to China. What happened instead? China designed their own CPU chips.
iPhone assembly is really not that important, or profitable, to China anymore.