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kleinbl00  ·  2252 days ago  ·  link  ·    ·  parent  ·  post: China's Manufacturers Feeling the Pain as Trade War Escalates

China has spent the past 30 years building a middle class at practically any cost; now that they have one they're having to switch strategies. Blitzkrieg works fine so long as you aren't trying to hold territory. The minute you have to sustain and govern you need to completely revise your strategies. Even ISIS learned this.

China couldn't make a viable 5-axis precision mill-turn machine 20 years ago. Now they can. But they're doing it with skilled middle-class labor that wants to live like a skilled middle class, which means they need to be paid like a skilled middle class... and when they aren't, there's unrest. A China of crappy knock-off electronics and porous 2nd-rate castings is a cheap China. A China where the indigenous industries are kickin' out product that can compete with an iPhone? Whole 'nuther matter. I bought a OnePlus One in 2010 for $299 'cuz I couldn't fathom $699 for an unlocked iPhone 6 plus. Now a OnePlus Six is $529 vs. $999 for an iPhone XS. In six years they've gone from 35% of the cost to less than half... and OnePlus is selling the hardware at close to cost.