There is a semi-official report in the United States that has been published for more than 10 years, and there is an important data in it, which is the American corporate reshoring index. After years of continuous monitoring, the report recently noted that 84% of manufacturing companies will return to the U.S. by 2025.
It just so happens that many friends in China are paying attention to this period of time, and some foreign-funded enterprises seem to be moving out of the Chinese market
What is the truth?
The United States has been running a deficit for many years, and the most important reason for this is that a large number of manufacturing sectors were relocated overseas in the early years, especially in countries with lower labor costs such as Asia.
As a result, the goods that Americans need are basically made in Asia, and even most of them are made in China, which can only meet daily needs through imports, thus forming a huge ** deficit.
In recent years, the United States wants to change this situation, so it advocates the return of manufacturing.
As we all know, Americans are more inclined to consumption, and the United States is in a state of high consumption and low savings, judging from the bank data of the United States, the savings rate of the United States has been declining in recent years.
In order to stimulate economic development, the United States has also made great efforts in this aspect of investment, and has continuously attracted enterprises to establish factories in the United States through subsidies and other forms.
But this will lead to a new contradiction, because the United States land and labor costs are higher, so the manufactured goods will inevitably be higher, not only will not help the United States to suppress inflation, but may also lead to a significant contraction of American consumption, which is not a good thing for the United States, which has been driving the economy through consumption.
So the so-called reshoring of manufacturing is not optimistic for the United States.
In fact, the return of manufacturing mentioned in the United States may be just wishful thinking on the part of some politicians and **, and for financial capitalists, not only is there no motivation, but even resistance from the bottom of their hearts.
As the world's reserve currency, the US dollar can move freely among countries around the world, and most of the settlements in various countries also use the US dollar.
The United States is also using the dollar as a tool, a large number of printed dollars are distributed to various places through treasury bonds, and countries exchange dollars for dollars through the export of products, and finally become US bonds and keep them in their hands.
For so many years, the United States has been continuously issuing U.S. bonds to various countries, and it can be harvested financially at any time.
Obviously, if the manufacturing industry really comes back to the United States, this set will not be playable. A strategy that does not have the approval of financial capitalists will hardly succeed in the United States.
We have also seen the opposite phenomenon, in the past two years, it has been said that many foreign companies have withdrawn from Chinese mainland, but since this year, many foreign companies have poured into Chinese mainland.
At the beginning of the year, many executives of large enterprises in Europe and the United States visited China, and now preliminary statistics show that in the first quarter of this year, there were more than 10,000 new foreign-funded enterprises in China.
We can even say that this is partly due to the United States.
As the Federal Reserve continues to raise interest rates, the cost of funds in the United States is getting higher and higher, although it is true that some European companies are considering moving into the United States, and finally they are deterred and choose China instead.
In fact, over the years, we have taken the initiative to move some labor-intensive enterprises out of China, and the domestic manufacturing industry has increased a large number of high-end manufacturing links, and now it seems that the adjustment of the industrial structure has achieved initial results.
From January to April 2023, the growth rate of mechanical and electrical products in China's exports will be 105%, accounting for 57 percent of total exports9%, which occupies an absolute dominant position;The value of exports of labor-intensive goods was only 171%, a significant decrease.
The U.S. can relocate labor-intensive companies back to the U.S. if it needs to, and we don't mind.