Shrinking US Capex Makes Re-Shoring A Charade
Date
11/29/2023 7:10:19 PM
(MENAFN- Asia Times) In April 2023, Asia Times released a study of US trade dependencies under the title,“The Great Re-Shoring Charade.” We found that the United States imported less from China only because it imported more from countries dependent on Chinese semi-finished goods, components and capital goods.
In effect, America's“friend-shoring” partners assembled finished goods out of imported Chinese components and shipped them on to the United States.
A man works at the Maxport factory in Hanoi, which makes activewear for various textile clothing brands. 'Friend-shoring' has led many companies producing exports for the US market to choose Vietnam, Mexico and India over China. Photo: Asia Times Files / AFP / Nhac Nguyen
Despite the Trump tariffs and the Biden Administration's commitment to“re-shoring,” China's dominance of global supply chains in manufacturing has grown, not shrunk, during the past several years.
That's because capital investment in US manufacturing continues to shrink.
In the meantime, the research departments of several major institutions have confirmed our results in painstaking detail. These include the International Monetary Fund, the Bank for International Settlements, and the Peterson Institute, a private think tank in Washington.
IMF economists wrote on November 1, 2023:
A team of researchers at the
Peterson Institute
wrote on Sept. 3, 2023:
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