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Commies will regret their actions

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China Is About To Regret Unleashing This Scourge They Spread To The Globe, Now Japan Takes Bold Action, Paying Firms to Leave China, Relocate Production Elsewhere as Part of Coronavirus Stimulus…

Here’s an idea: Japan using BILLIONS in stimulus money to lure its firms OUT of China as fallout over coronavirus continues

It has become painfully clear that the ChiComs do not want to play by the same international rules that civilized nations follow…

By Jon Dougherty

Older Americans remember when Japan became an industrial powerhouse and supplanted the United States as the world’s supplier of goods.

Back then, “Made in Japan” was synonymous with “cheap consumer goods,” though the products that the country turned out were generally of decent quality — and lower in price.

But then something happened. In the early 1970s, the Nixon administration, keen to improve relations with China, opened a dialogue with the isolated regime there, and nothing was ever the same.

“Nixon goes to China” was supported by most of the foreign policy establishment, and for good reason: The aim of opening up to China was to undermine the country’s Communist leadership by showing ordinary Chinese what life is like on the other side of the economic spectrum.

Over the course of the next three decades, American investment dollars flowed into China while U.S. corporations moved their operations from the higher-priced American labor market to the mainland.

However, nothing really changed in terms of how China was led. The Communist Party continues to rule to this day in its typical oppressive, authoritarian manner.

But in the process of trying to woo China with dollars and democracy, the coronavirus pandemic has shown us just how reliant — well, over-reliant — we have become on Chinese manufacturing (and the government that runs it).

When Japan was the industrial powerhouse and principle supplier of world goods, Tokyo was nevertheless an ally (and continues to be to this day). Beijing never was, never has been, and very likely will never be. And yet, we allowed the ChiCom regime to absorb our manufacturing, making us ever-so-reliant on a potential enemy.

How stupid.

That said, Japan is showing us a way out of our dilemma, as it seems Tokyo is in a similar bind as we are: Overreliance on a potential enemy.

Japan has earmarked hundreds of billions of yen of its coronavirus stimulus relief to go toward helping its manufacturing companies move their production plants out of communist China and back to Japan or to other countries.

“The extra budget, compiled to try to offset the devastating effects of the pandemic, includes 220 billion yen (US$2 billion) for companies shifting production back to Japan and 23.5 billion yen for those seeking to move production to other countries, according to details of the plan posted online,” Bloomberg News reported.

“That has renewed talk of Japanese firms reducing their reliance on China as a manufacturing base. The government’s panel on future investment last month discussed the need for manufacturing of high-added value products to be shifted back to Japan, and for production of other goods to be diversified across Southeast Asia.

“China is Japan’s biggest trading partner under normal circumstances, but imports from China slumped by almost half in February as the disease closed factories, in turn starving Japanese manufacturers of necessary components,” Bloomberg News added.

“Japan exports a far larger share of parts and partially finished goods to China than other major industrial nations, according to data compiled for the panel. A February survey by Tokyo Shoko Research found 37 percent of the more than 2,600 companies that responded were diversifying procurement to places other than China amid the coronavirus crisis.”

The Washington Post’s Josh Rogin noted that things between the U.S. and China in a post-coronavirus world won’t be the same, either, and we can bank on that as long as Donald Trump remains our president (since he’s the first leader since Nixon to put the brakes on the complete outsourcing of our manufacturing capability to Beijing):

It’s difficult to gauge — in the middle of the crisis — how exactly the U.S.-China relationship is changing. But everyone senses it will never be the same. Political leaders in Washington and Beijing have put their war of words on hold for the moment. But there is clear evidence that China is planning to use the crisis to its economic and political advantage worldwide.

Inside the Beltway, Republicans attack Democrats, Joe Biden and the media for not being critical enough of the Chinese Communist Party. Democrats attack President Trump for saying “Chinese virus” and attack any Republicans who blame the coronavirus pandemic on the CCP as racist.

Yet a new poll shows that, outside the Beltway, the coronavirus crisis is actually bringing Americans together on the China issue. Republicans and Democrats now largely agree that the Chinese government bears responsibility for the spread of the pandemic, that it can’t be trusted on this or any other issue, and that the U.S. government should maintain a tough position on China on trade and overall, especially if Beijing again falters in its commitments.

Add this: The New York Post reported that China sort of ‘cornered the market’ on personal protective equipment — the medical masks, gloves, and gowns our hospitals and healthcare providers desperately need — and then refused to ship them.

“One of the — one of the things that this crisis has taught us is that we are dangerously over-dependent on a global supply chain for our medicines, like penicillin; our medical supplies, like masks; and our medical equipment, like ventilators,” White House trade adviser Peter Navarro said.

“We have — right now as we speak, over 50 countries have already imposed some forms of export restrictions in their country against the rest of the world. And what we’ve — what we’re learning from that is that no matter how many treaties you have, no matter how many alliances, no matter how many phone calls, when push comes to shove you run the risk, as a nation, of not having what you need,” he added.

It has become painfully clear that the ChiComs do not want to play by the same international rules that civilized nations follow. So it’s time to cut our ties, cut our losses, get our companies back home, and let the regime in Beijing deal with isolation again.

And tell them,”Good luck with that.”

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19 COMMENTS

  1. The part to remember, is that they do not need more people to run the new plants..

    Use their brains & capital, innovation, to set up Artificial Intelligence, robots, etc…
    It should be relatively easy in upskilling and focus of its already educated people, will then increase productivity per capita.

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    • “Internationalization” (国際化) was a big buzzword in Japan in the 1990s. In NZ and the West we know it as “globalization.” It’s a word that glibly rolls off the politician’s tongue, but no-one really knows what it means.

      Many observers in Japan (since the late 1990s) have pointed out the “hollowing out” of Japanese industry as the big firms do a Detroit on the Japanese industrial cities. China had so much to offer: a huge market potential, unbelieveably cheap labor, no unions, the list goes on.

      In moving back to Japan, the industries will be faced with local labor shortages, high capital costs, labor standards laws, unions, high compliance costs and many other factors. Of these, the labor shortage in Japan is the most critical. No young Japanese wants to do monotonous, repetitive tasks that his grandparents did on the assembly lines in the late 1950s and early 1960s as Japan clawed its way to prosperity. What will companies do?

      The answer is to (somehow) have the robots do all this 3K work (Kitanai (dirty); Kiken (dangerous); Kitsui (difficult). (3K is known in English as “3D” work.) Japan needs to focus on intellectual industrialization where the power lies in the skills and technology; not in cheap labor.

      When you compete on price, it’s a race all the way to the bottom.

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      • ……” it’s a race all the way to the bottom”……

        When a nation exports the means to feed itself it’s better compared to falling off a cliff.

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        • As an aside, Japan has not been self-sufficient in many food categories for decades. This is an area of grave concern for Tokyo.
          The hope is that as the grandma&granpop farms die out (the average age of a rice farmer is 67 at least (Ref: https://www.nippon.com/en/features/h00227/japan%E2%80%99s-farming-population-rapidly-aging-and-decreasing.html)
          the tiny patchwork quilt of rice fields can be amalgamated and rationalized into something more productive.
          My sister-in-law’s husband up in Akita has leased out the family’s rice paddies as he has no intention of carrying on his father’s rice farming.

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        • The same could be said for the small owner operator in NZ!
          Bypass the giant supermarket here and give your patronage to the people that need it, the vege shop, butcher and bread shop should not be forgotten!

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      • Why wouldn’t they relocate to Vietnam, Laos, etc? Cheaper than taking these factories home to Japan.

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  2. In NZ globalism has pushed us into a position that we can’t even feed ourselves. When panic buying stripped the supermarket shelves of flour stock couldn’t be replaced because of a lack of packaging.

    …….”Getting packaging normally took anywhere from six to nine weeks”……

    Six to nine weeks indicates that it’s imported. Globalism has rewarded us with disease, isolation, $2 shops & potential food shortages complete with the attendant risk of political upheaval. Let’s learn something from what’s happening.

    https://www.stuff.co.nz/life-style/well-good/120694953/coronavirus-where-has-all-the-flour-gone

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    • How many people would complain if their flour was in a plastic bag?
      Oh, that’s right the Comrade banned plastic bags!

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      • I suspect that the reason is more insane yet surreal than we imagine Sooty. Some know-all & health freak has probably signed us up to this crap:

        ……”The material used to package flour in standup pouches is made by laminating several plastic layers together. This makes a barrier against external factors like sunlight, air, moisture, and germs. Because of these qualities, it is also known as barrier packaging. This barrier packaging is highly preferred for easily perishable food products. Since flour can easily go rancid with the slightest of moisture, it is important to use barrier packaging to keep it safe.”……

        https://www.standuppouches.net/blog/how-is-flour-packaged

        Paper bags have been used to store flour for over half a century & it’s news to me if people have been dropping dead like flies as a result.

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        • On my last supermarket visit the otherwise empty shelves had about six bags of flour at 20kgs each. That’s a lot of scones.

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          • If it was large bags of ‘High Grade’ flour that would be for breadmaking (mostly). Baking flour is ‘Standard’ flour and ‘Self-raising’ scones and piklets, etc.

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      • Someone got me some the other day, I was very grateful, our vege shop is open and was making bags up.

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    • Nassaka

      I make a distinction between globalism and globalisation or internationalisation ( as Odakyu-sen puts it) I realise the words are used interchangeably by the MSM but I see globalism as the political push for open borders, increasing the power of international institutions such as the UN , EU , IPCCC etc and ultimately a One World Government etc.
      Globalisation I see as the extension of international trade which has been going on for several centuries. A few fault lines are showing up in this at present with countries realising they have become over reliant on one country for the supply of important strategic goods but that will re balance itself and I do not see major worries with it.
      BUT the globalism movement worries me a hell of a lot.

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      • Although I’m inclined to look upon the way we use the words as an academic distinction I have no problem seeing where you’re coming from. Point taken.

        Yet I fear that you underestimate ‘globalisation’ as a driver of ‘globalism’. The former is designed to make trade as complex & convoluted as possible with everyone dependant on another. The further down this road we travel the easier world government is to impose.

        Trade, yes. Trade blocs, no problem but nothing must be allowed to lessen our self governance & ability to freely negotiate the terms of our trade.

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      • “Internationalization” (kokusai-ka) is the term widely used in Japan. Part of the Japanese understanding of the meaning of this word (which was spun as being a good thing for Japan) is that Japanese should expect more foreign workers in their country, and to expect multi-lingual signage in trains and supermarkets where previously there had only been Japanese script and romaji (alphabet) script (for the foreigners).

        Today it is commonplace for the big department stores in Tokyo to have announcements in Chinese for their teeming Chinese tourist shoppers. And yes, the Chinese tourists pack their suitcases with far more items than they could ever personally consume. Either these will be “gifts” to friends or on-sold on the Chinese version of eBay back home.

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  3. This is a squirrel. Our economy and society was not destroyed by the Chinese or a virus. It was the actions of Jacinda Ardern.

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  4. Too true – AliExpress can forget it. App has been deleted – any savings I’ve made by buying there has more than been lost by the effects of the Chinese virus.

    We’re not hating on them – we’re just hating them back!

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