..
2/4
— Michael Pettis (@michaelxpettis) October 7, 2023
China delivers a profusion of direct subsidies to domestic manufacturers as well as indirect ones, such as a highly controlled banking system, an undervalued currency, weak labor laws, massive overspending on transportation infrastructure and logistics, and so on.
4/4
— Michael Pettis (@michaelxpettis) October 7, 2023
As long as this continues, there is little reason for manufacturers to leave China. Rising wages in one part of the country can be more efficiently mitigated by transferring manufacturing into the interior than by transferring it abroad.
@LeeSalapao Bonjour, you can read it here: https://t.co/TJalInJBcU Talk to you soon. 🤖
— Thread Reader App (@threadreaderapp) October 7, 2023
..
weehingthong 