Re:Chinese airline completes maiden passenger flight with do...
by pydry on Thursday December 31, 2020 @10:02AM
(#25593249)
China's strategy was always to try to dominate the "boring" work on the low end of the value chain and then ratchet their way up the value chain, cutting out foreign competitors at every stage - first in the domestic market and then in foreign markets.
They've now almost reached the top of the value chain after about 30-35 years of diligently following this strategy. They can manufacture phones every bit as good as Apple's without help.
China used to need Apple more than Apple needs China. Now, Apple needs China more than Apple. Apple can't move its supply chain home without eye watering costs.
It won't be long before Apple phones start to lag Chinese phones technologically and it won't be long before China can start threatening sanctions that hurt the US more than they'd hurt China.
Re:Chinese airline completes maiden passenger flight with do...
by sangnoir on Friday January 01, 2021 @01:46AM
(#25601391)
This has been apparent for a long time, but decision-makers in the US have greatly reduced the horizons of time-periods they care about (very little long-term strategic thinking both politically, especially the executive branch, and for company executives & wall street). So if a tactic works now and brings in results now to ensure the bonus or re-election, then it's implemented regardless of long-term harm, since someone else will deal with that at some point in the future.
China took advantage of America's growing individual greed and short-termism. American companies know this, but they can't help themselves.
It works well in the micro, but not the macro. Apple is a excellent example of this being ridiculously profitable: management, finance, R&D, engineering and all "high value" work is in the US, and the "boring" manufacturing stuff is handled offshore. This works very well for shareholders, management and skilled employees. The American machinists and die-makers (who don't get a say) lose out, and over time, their skills will be lost as the experienced workers retire without passing on their knowledge - then the whole industry suffers.