posted by mark
on Sun, 02/12/2023 - 14:00
Article Link:
In the attached article, they talk about companies returning to China after China has reopened following Covid lockdowns.
Are these executives just plain stupid?!
Sure, we know that manufacturing in China is cheap on a direct cost basis, but what about the costs on an indirect basis?
Let's consider those indirect costs such as:
- Multiple times China has caused diseases that direly affected the rest of the world.
- China has many gargantuan accusations of human rights violations.
- China has consistently, regularly and blatantly stolen intellectual property rights.
- Who knows when they will expropriate factories from foreign companies.
- Some of the best attributes of a country's investability are a stable government and a high value on individual property rights. These are questionable, at best, in China.
We all know companies are rushing back in to get cheap manufacturing to bolster their P&L's. Did they learn nothing from the events of the last 20 years? They should be taking advantage of the lessons learned from recent events and changing how they operate. Period.
Mental insanity is doing the same thing over and over and expecting a different result.
Be smart, be well-read, be aware and be successful.
