EU is looking to diversify supply chains to cut China reliance

[Broccoli]

“Now the atmosphere in Europe is rather toxic when it comes to China,” said Joerg Wuttke, president of the EU Chamber of Commerce in China.

https://www.bloomberg.com/news/arti...s-diplomacy-has-finally-pushed-europe-too-far

 

[xenon54 out]

Now that the Covid-19 is topic Nr. 1 wherever i go the issue of outsourcing is always mentioned.
Be it my friends or customers everybody agrees to pay more for local production, Europe has the infrastructure and the Know-How all it needs is the will to change something.

 

[monitor]

Now that the Covid-19 is topic Nr. 1 wherever i go the issue of outsourcing is always mentioned.
Be it my friends or customers everybody agrees to pay more for local production, Europe has the infrastructure and the Know-How all it needs is the will to change something.

But anything produce inside European country would be more costly then sourcing from china. Unless the buyer ready to pay more manufacturers will be dependent on China.

 

[xenon54 out]

But anything produce inside European country would be more costly then sourcing from china. Unless the buyer ready to pay more manufacturers will be dependent on China.

Well the production isnt even that cheap in China anymore and its only gonna get more expensive while the production costs in Europe can be cut with more automation.
Add to that the long delivery times, quite common quality issues, paperwork for customs etc. etc.
In the end the production in Europe wont be that much more expensive.

 

[Yaseen1]

europe has mostly old population who cannot work in factories for long time.

 

[Yankee-stani]

Well the production isnt even that cheap in China anymore and its only gonna get more expensive while the production costs in Europe can be cut with more automation.
Add to that the long delivery times, quite common quality issues, paperwork for customs etc. etc.
In the end the production in Europe wont be that much more expensive.

Serbia,Romania and the Balkan states could benefit from that Chinese firms are setting shop in Serbia much closer to European markets

europe has mostly old population who cannot work in factories for long time.

True but loads of goods could be made in the Balkans and Eastern Europe

 

[CrazyZ]

I would say EU should look at what the USA did in relation to Mexico. By shifting low cost manufacturing to Mexico, USA consumers got cheaper products, USA firms made more money and the flow of migrants reduced. Best place for EU to shift manufacturing is ME/NA.

 

[UKBengali]

europe has mostly old population who cannot work in factories for long time.

Nope automation is the future.
Very few workers will be required in the future to manufacture products.

 

[Yaseen1]

there are many other factors like availability of cheap raw material,supply chain ,environment hazards etc which makes it very difficult for europe to shift industry back to their place

Nope automation is the future.
Very few workers will be required in the future to manufacture products.

 

[UKBengali]

there are many other factors like availability of cheap raw material,supply chain ,environment hazards etc which makes it very difficult for europe to shift industry back to their place

Tech and sheer will will be enough to sort these issues out.

Anyway factories were moving away from China due to increasing wages and this will only accelerate the process.

 

[Yaseen1]

i think china is most faster and feasible as compared to its competitors in introducing automation which will make labor cost less relevant in this scenario as they will only work on automation while others will have to develop factories and associated from scratch which will be more expensive

Tech and sheer will will be enough to sort these issues out.

Anyway factories were moving away from China due to increasing wages and this will only accelerate the process.

 

[UKBengali]

i think china is most faster and feasible as compared to its competitors in introducing automation which will make labor cost less relevant in this scenario

That is not the point is it?

After this pandemic is over a lot of countries would want to move as much of the supply chain back into their own countries.

China will lose a lot of trade as countries will build more stuff on their own countries than otherwise.

 

[Yaseen1]

these countries mostly focus on high technology items and have less demand due to low population so they cannot achieve economy of scales ,making limited products for own use is much expensive and also if they focus on low level products they will be unable to focus on high technology items and this may reduce standard of life and payscale of their public

That is not the point is it?

After this pandemic is over a lot of countries would want to move as much of the supply chain back into their own countries.

China will lose a lot of trade as countries will build more stuff on their own countries than otherwise.

 

[UKBengali]

these countries mostly focus on high technology items and have less demand due to low population so they cannot achieve economy of scales ,making limited products for own use is much expensive and also if they focus on low level products they will be unable to focus on high technology items and this may reduce standard of life and payscale of their public

France already announced they will have full sovereignty of critical products like medical supplies and they do not care about the cost.

Chinese business loss will accelerate after this pandemic is over.

 

[Yaseen1]

medical supplies not matter much for china and they can replace it with other industry,france economy will face loss and burden if they make low level items at high cost and their deficit and debt will increase in long run

France already announced they will have full sovereignty of critical products like medical supplies and they do not care about the cost.

Chinese business loss will accelerate after this pandemic is over.