New Report Delves Into Inner Workings of Foxconn's Zhengzhou iPhone Plant

[ProjectManager101]

Economic warfare to weaken the US strategically. The capitalists have sold them the rope.

My question would be... do you need an iPhone? What you really need to move on with your day?

 

[MacsRgr8]

"We must do away with the absolutely specious notion that everybody has to earn a living. It is a fact today that one in ten thousand of us can make a technological breakthrough capable of supporting all the rest. The youth of today are absolutely right in recognizing this nonsense of earning a living. We keep inventing jobs because of this false idea that everybody has to be employed at some kind of drudgery because, according to Malthusian-Darwinian theory, he must justify his right to exist. So we have inspectors of inspectors and people making instruments for inspectors to inspect inspectors. The true business of people should be to go back to school and think about whatever it was they were thinking about before somebody came along and told them they had to earn a living." - Buckminster Fuller

Then you have to do away with capitalism and free market and move into (neo?)communism >> i.e. the state deals with the sharing of wealth.
No way those 1 in 10.000 who can support the "rest" will support the rest.

It's not in human nature to want to support those you do not care for.
You honestly think China will support all the labourers who will become redundant? No way in hell.

 

[sim667]

The cost of living is cheaper. That's why wages are low. Why journalists do not point this out every time they talk about "slave labour" I will never know. It's so obvious.

Whilst I've been to China and seen shanty towns that factory workers live in...... and I don't like it, it is very true that the cost of living there is quite cheap, hence salaries can be low.

Whether salaries are relative to the cost of living on the other hand is debatable, and as far as I'm aware people will queue up for the jobs as nothing is free there, education, healthcare etc all needs paying for. Plus there's no safety nets, can't afford food? Then your family goes hungry, can't afford housing? Then your family goes homeless.

At the end of the day there's a reason that countries like India and China are becoming the new economic superpowers. They had a labour workforce which is vast, absolutely vast. 1 in every 6 people in the world are Chinese.

Plus China have got their shipping absolutely nailed - just look at the Yangshan Port.

And the notion that Countries like China are still fully communist is a total fallacy...... Its just pretence.

 

[sirozha]

Remember when the People's Republic of China was communist?

Yes. Today.
[doublepost=1483103720][/doublepost]

Whilst I've been to China and seen shanty towns that factory workers live in...... and I don't like it, it is very true that the cost of living there is quite cheap, hence salaries can be low.

Whether salaries are relative to the cost of living on the other hand is debatable, and as far as I'm aware people will queue up for the jobs as nothing is free there, education, healthcare etc all needs paying for. Plus there's no safety nets, can't afford food? Then your family goes hungry, can't afford housing? Then your family goes homeless.

At the end of the day there's a reason that countries like India and China are becoming the new economic superpowers. They had a labour workforce which is vast, absolutely vast. 1 in every 6 people in the world are Chinese.

Plus China have got their shipping absolutely nailed - just look at the Yangshan Port.

And the notion that Countries like China are still fully communist is a total fallacy...... Its just pretence.

The Party is using capitalist methods to boost the economy. Nothing new in this. Read up on NEP in the Soviet Union in the mid 1920s. Then read up on what happened after NEP was canceled.

 

[sim667]

Yes. Today.
[doublepost=1483103720][/doublepost]
The Party is using capitalist methods to boost the economy. Otho get new in this. Read up on NEP in the Soviet Union in the mid 1920s.

Only in name, really.

 

[sirozha]

Oh yeah, Donald Trump the President of China now as well? These perks were negotiated between Foxconn (a chinese company) and the Chinese government which means Trump has zero control. Especially, if he wants them to build a factory here.

Foxconn is a Taiwanese company.
[doublepost=1483104151][/doublepost]

Dunno, but the aggressive push for full robotic automation of factories such as this place will happen so fast and quickly that anarchy will result. Think about an individual who was earning and now they don't. Multiply that by 10m and you have serious social instability on your doorstep which can't be brought under control by the commie gov't.

Mercedes had a fully functional robotics plant in Tuscaloosa, AL, which I toured 19 years ago. The entire SUV assembly was done by robots without humans doing anything but supervising the robots.
[doublepost=1483104519][/doublepost]

And what happens on Jan 20, nothing really.
Trump has no magic wand, factories and infrastructure and supply chains all take time to build.

Or, to put it another way, by the time mid term elections are held, no new jobs will have been created in the US, lots more may have been lost in companies who export (US$2 Trillion) as tariffs on US exports by other countries made ones from China , the EU, etc more cost competitive, e.g. Airbus, Samsung,Panasonic, Toyota,etc etc etc etc.
This could see punishment in the polls.
End of term, few if any major players (Apple, HP, etc etc etc) will have started manufacturing by that stage.
Trump is gone, policies are reversed and the world carries on.
Its not just the factories, where is the power, the water, the raw materials, freight haulage, etc etc comping from, all of that takes years and years to happen. Where do 300,000 workers come from ? Where do they live, what about schools, hospitals, roads, water, sewerage, electricity, police, fire, internet, phone, shops, car mechanics, we are talking of a city of over 1 million people by the time you add in all the other services a population needs.
How soon can a city of 1 million people get created ?

But what happens if they go down the automation route, few employees. Well other US manufacturers will jump on that band wagon too, a rush a new automation will cause a fall in costs making it cost effective for a lot more companies. This will lead to few jobs comping back to the US, and a lot of jobs lost to automation.

AI is going to have a major impact, its going to change almost everything and will replace a LOT of jobs.

Instead of trying to bring back non existent jobs back to the USA, the US would have been better to start panning on what to do with a very large number of unemployed. The world has possibly hit (or soon will) peak employment, AI and automation is only going to see employment ratios head one way....down.

Robotics require human supervision. Every robotics plant employs humans. Robots can work 24x7, so more humans will be required to supervise robots. Additionally, government can start enforcing shorter work days. Let's go to a 28-hour work week: four 7-hour work days per week. More people can be employed. All of this is possible if there is a will.

In American inner cities, there's a new generation without jobs. Employ them at decent wages, and crime will go down dramatically.

 

[Shirasaki]

Remember when the People's Republic of China was communist?

Those communists could brag this (have factory to build products selling to all over the world) as their "Chinese characteristics" of "socialism" to the rest of the world and some citizens.

 

[djphat2000]

edit: oh, in no way did I mean to imply that anything magical will happen after Jan 20. In fact, I don't mean to set the bar low, but I consider the incoming administration to be wildly successful if they don't get us all killed.[/I]

F'n A buddy, F'n A!
[doublepost=1483109290][/doublepost]

1.Trump does not control the perks in China. (Setting them as a currency manipulator "which they are" will cause harm, and so will tariffs imposed on any imported product from them)

2. Any tariffs Trump applies only applies to goods going to the USA, the rest of the world will simply get Cheaper products than the USA. (This would be true, however our dollar is almost at parity with the Euro and Pound. If that continues the dollars strength "could" create room for a tax that doesn't effect US prices. Unless he goes full 35% an all. 1-10% would be inline with a safe tax)

3. Impacted countries will put a tariff on US imports. Airbus for example would be pleased to see Boeing being 5% more expensive, as will Japanese car manufacturers. Just because China puts a tariff on US imports does not mean they will put a tariff on ones from the EU. (China can certainly, but they import less than they export to us. Also, if they "make" less products to ship to us. They lose even more. The US spends the most, this hasn't changed much)

If anything Trump will create a slow down of world trade, creating a global recession and even MORE US jobs lost. (Possible, but the effects will be felt a lot in China. Again, they make the most stuff, and the US purchases the most stuff. Other Asian countries "could" pick up the slack and more US based manufacturing as well. Trump will have to be pretty crafty in any new trade deals, and on how much and when to apply any tariffs.)

The rest of the world could also turn around and reduce copyright and patent terms, especially medical ones, so that generics will come quicker and cheaper. (If they wish, but that would also create issues with the US, and any US based medical companies will go ape$#!T over that)

Dump the FAA,FDA etc from having sway over policy outside the USA, the EU I am sure would love to take up the mantle.
Dump the US$ as the standard for trade, the euro will do just as well.

(If that could have happened, it would have already. US $ isn't going anywhere. If anything it's proven to be more resilient and stronger than the Euro could ever be. Brexit, and the PIIGS are prime examples of why the Euro may never get that status. These countries are not meant to be together "fiscally". They are way too different from each other. Their similarity is only that they are in Europe, and that they prefer to not be at war with each other. If Ireland loses there case to the EU over Apples tax (an other) treatment. You may see Ireland not want to be apart of the EU anymore. Why pay the EU when you can keep the special deals that help Ireland, and since the British is out too. Also, if Russia keeps pushing its might in the baltic countries. It could either keep those countries out of the Euro, or further create issues with Russia if they increase there ties to greater Europe. Trump is much more friendly to Russia than any other US President in recent times. If your a country on the border with Russia. Your not to happy about Trump, and the possible US relations with Russia. You either play it safe, or pick a side. Europe isn't saving anyone if Russia makes a move, so spend those Euro's wisely.

Trump is a warning bell to other countries, reduce your exposure to the US and its policies.
Its is also an opportunity to increase trade internationally (excluding the USA) with the understanding that Asia holds 60% of the worlds population, and 96% of the worlds population lives outside of the USA. (USA still spends the most. If you make it, we tend to buy it. Since this isn't changing overnight, or the next 4 years at least. Everyone makes with the expectation that the US market is open for business. The TPP was supposed to get all those other Asian countries and much of the pacific rim countries on board with the US, and exclude China. Didn't happen, but still could once Trump realizes it IS part of his own agenda. If he wants to actually do damage to China without causing any issues with the US. TPP is the best way forward. Lock up all those countries in a trade agreement with the US, and force China to make some tough choices. Either join and play fair. Or make a deal with each of those countries one at time over YEARS. Those years the US is getting more out of it than china will have time to make up the lost ground. TPP isn't perfect, no deal ever really is. But, the though process behind it is meant to curb China's influence on the world, especially in emerging markets. Will just have to wait and see what Trump actually does on this)

The US (if not already) will soon be only the 2nd largest economy, China will be the biggest, and if the EU plays its cards right, they will soon become 2nd leaving the US 3rd. (The EU needs to figure out how to work first. They are having issues that was not expected nor was there any actual good plans for any country wanting to leave it. Terrorism, failing economies, massive immigration issues due to the open border policies of the EU. It's not going away tomorrow, or over the next 4 years. Isolationism will on exasperate the issue. Since no one in the EU wants to fight in the sandy hot countries. These people have no where else to go except to Germany, France, Greece, Italy and G.B., etc. If they don't accept these refugees, some, not all will go and join an extremist group. Which perpetuates the issue. The US can pretty much sit back and sell arms to the EU. Best move for the US is to get out of all Arab countries and let it play out. That EU is in for some ruff times.

Unfortunately the US response will be to sow political discord, and if need be start a few wars around the world to try and maintain their grip on world affairs. (Which we will, like it or not. But, I think people don't give Obama enough credit. He understands fully that getting anymore involved in these affairs will not pay out for the US. It just keeps us in the mess. We can assist, but not fix the big issues facing Europe and the middle east. Protect out interest, but stay out of it as much as possible, even when people say we are leading from behind. As we tried leading under W. that created a bit part of the mess we have now.

my 2 cents.

 

[SarcasticJoe]

1.Trump does not control the perks in China.
2. Any tariffs Trump applies only applies to goods going to the USA, the rest of the world will simply get Cheaper products than the USA.
3. Impacted countries will put a tariff on US imports. Airbus for example would be pleased to see Boeing being 5% more expensive, as will Japanese car manufacturers. Just because China puts a tariff on US imports does not mean they will put a tariff on ones from the EU.

If anything Trump will create a slow down of world trade, creating a global recession and even MORE US jobs lost.

The rest of the world could also turn around and reduce copyright and patent terms, especially medical ones, so that generics will come quicker and cheaper.

Dump the FAA,FDA etc from having sway over policy outside the USA, the EU I am sure would love to take up the mantle.
Dump the US$ as the standard for trade, the euro will do just as well.

Trump is a warning bell to other countries, reduce your exposure to the US and its policies.
Its is also an opportunity to increase trade internationally (excluding the USA) with the understanding that Asia holds 60% of the worlds population, and 96% of the worlds population lives outside of the USA.

The US (if not already) will soon be only the 2nd largest economy, China will be the biggest, and if the EU plays its cards right, they will soon become 2nd leaving the US 3rd.

Unfortunately the US response will be to sow political discord, and if need be start a few wars around the world to try and maintain their grip on world affairs.

The only problem with that is that China can only put tariffs on what they import and they already put some pretty massive tariffs on foreign products even when they're made in China so that Chinese people would buy products made by domestic companies rather than foreign ones. When it comes for tariffs on U.S exports to countries other than China, China can obviously try to apply political pressure on other countries, but I'm doubtful that they can be successful at it so a future Chinese-American trade war would be almost completely limited to those two countries. Worst thing that might happen is that China ends up dumping over-production of goods they'd regularly export to the U.S, but can't, on other markets the same way they're doing with steel right now.

As much as I hate to sound like I'm defending Trump, a trade war with China will hurt the Chinese economy a lot more than the U.S. and so far Trump hasn't really spoken about putting tariffs on imports from any countries other than China. Hell, if Trump puts tariffs on Chinese imports it's not even the first time Chinese products have been subjected to tariffs in the U.S. Chinese steel has been subjected to a roughly 75% tariff since they started dumping their over-production on the global markets at cut rate prices and the EU has applied a roughly 25% tariff for the exact same reason.

 

[djlythium]

Then you have to do away with capitalism and free market and move into (neo?)communism >> i.e. the state deals with the sharing of wealth.
No way those 1 in 10.000 who can support the "rest" will support the rest.

It's not in human nature to want to support those you do not care for.
You honestly think China will support all the labourers who will become redundant? No way in hell.

Hey, much smarter men then myself can tackle the intricacies. That being said, Dr. Fuller was on to something.

 

[ENduro]

And what will people do to earn a living? Watch TV/surf all day? remove all their goals and ambitions? Live in peace and harmony? Turf wars or gang fights? Entitlements? Love to hear your vision for the billions of people on the planet with no jobs.

I think we can both agree that universal basic income must be supplemented by some mechanism that ensures every man, woman and child is miserable for at least 40 hours a week because that's what we were put on this earth for.

People will still want to create, to learn, study, tinker with solutions for problems that persist, volunteer... I assume you are someone who preaches the gospel of individual freedom so why do you assume when given the most precious freedom of all - freedom of their personal time - that people will succumb to their worst instincts?

 

[sim667]

The Party is using capitalist methods to boost the economy. Nothing new in this. Read up on NEP in the Soviet Union in the mid 1920s. Then read up on what happened after NEP was canceled.

Of course..... but a proper communist society would also provide education, healthcare etc to its citizens..... China doesn't.

I don't think there are any real communist states left, just ones that claim to be.

 

[threesixty360]

Whilst I've been to China and seen shanty towns that factory workers live in...... and I don't like it, it is very true that the cost of living there is quite cheap, hence salaries can be low.

Whether salaries are relative to the cost of living on the other hand is debatable, and as far as I'm aware people will queue up for the jobs as nothing is free there, education, healthcare etc all needs paying for. Plus there's no safety nets, can't afford food? Then your family goes hungry, can't afford housing? Then your family goes homeless.

At the end of the day there's a reason that countries like India and China are becoming the new economic superpowers. They had a labour workforce which is vast, absolutely vast. 1 in every 6 people in the world are Chinese.

Plus China have got their shipping absolutely nailed - just look at the Yangshan Port.

And the notion that Countries like China are still fully communist is a total fallacy...... Its just pretence.

There are shanty towns all over America that are the same if not worse. I saw a video of a town in Detroit the other day. Unreal. There are places inside the richest country on earth that make it look like a developing country. I don't hear much about those towns from the New York Times etc.. (I'm sure they do talk about them sometimes, surely they do?).

At the end of the day a country is sovereign. Things like health care, welfare etc.. are the responsibility of the state, not Apple. Apple has not created the conditions that make people want jobs at Foxconn. And Apple cant fix those conditions on its own. It does what it can whilst respecting the right of sovereign nations to do what they wish.

As a British citizen I think the US health care system is "barbaric", and the statutory 15 days holiday and lack of employment protection obscene. Yet I wouldn't dream of telling the US what to do! Its your country, knock yourself out.. but I'm happy to buy Apple products because I trust you guys like the system you have..

 

[thewitt]

The majority of Chinese factory workers do NOT live in so-called shanty towns. They live in the city, in high rise dormitory complexes that are clean, safe, close to well maintained amenities that they can afford. If you look at the factory cities like Foxconn runs, you see tens of thousands of shoot, healthy, young workers earning money for their families back home.

In cities like Suzhou and Wuxi, there are upwards of ten million people supporting a manufacturing economy that the US can only dream of. Not a shanty in sight.

In the last 20 years I've spent 30% of my time traveling in, and working with manufacturers in China. This is no third world economy.

 

[Autrement]

The Clinton Administration signed the treaty normalizing trade between the US and China in addition to championing China's admission to the World Trade Organization. We have Bill to thank for this.

With a Republican Congress. Now that there is criticism of multinational free trade on both the right and the left, partisans on both sides conveniently forget that this was a bipartisan consensus from the 80s onward.

The other thing that is conveniently forgotten is that multinational free trade policies have created an amazing amount of wealth in the world, but the problem is that it has created unprecedented wealth inequality and economic winners (1%ers in the West and workers in industrializing third world economies) and losers (eg the American working class).

 

[PaulRustad007]

Robots can work in America too. Once robotics are such that they can replace the human component then China's value of cheap, massive labor is gone. The idea that China can move from providing cheap labor to a center for innovation will fail just as it failed at every other country manufacturers pulled out from when labor costs escalated too much.

No, after China we will have India to supply cheap labor......

And after India we will have Sub-Sahara Africa......

And then Central America, South America, East Central Europe.....

 

[sim667]

At the end of the day a country is sovereign. Things like health care, welfare etc.. are the responsibility of the state, not Apple. Apple has not created the conditions that make people want jobs at Foxconn. And Apple cant fix those conditions on its own. It does what it can whilst respecting the right of sovereign nations to do what they wish.

I haven't said that it is, merely provided a basic explanation of my assertion China isn't *really* Communist, nor is Vietnam, nor DPRK. These communist governments exist to transfer the wealth from poor to rich, under the pretence of working for the greater good.

As a British citizen I think the US health care system is "barbaric", and the statutory 15 days holiday and lack of employment protection obscene. Yet I wouldn't dream of telling the US what to do! Its your country, knock yourself out.. but I'm happy to buy Apple products because I trust you guys like the system you have..

I agree. (I'm from the UK by the way)
[doublepost=1483119482][/doublepost]

In cities like Suzhou and Wuxi

Ive been to Suzhou also, and there are certainly people living in makeshift tents outside the pottery factories I went to.

 

[NT1440]

You honestly think China will support all the labourers who will become redundant? No way in hell.

Well....if you don't want a mob of hundreds of millions of citizens China will definitely do something.

 

[sir1963nz]

I'm talking about Tim outsourcing jobs to China and India for manufacturing. Trump vowed to tax 45 percent if apple does this.
[doublepost=1483052821][/doublepost]
If the forum is filled with political warriors, it can't be helped.

And what will happen is that US citizens will start buying their iPhones from Canada.
The US voting public is NOT going to stand for a 50%-100% increase in prices. Apple will tie it up in the courts for as long as trump is in office.

Exactly HOW will Trump do this. NO ONE can build the infrastructure overnight. For example it would somehow need to create a new city of over a million people , thats about the

The only problem with that is that China can only put tariffs on what they import and they already put some pretty massive tariffs on foreign products even when they're made in China so that Chinese people would buy products made by domestic companies rather than foreign ones. When it comes for tariffs on U.S exports to countries other than China, China can obviously try to apply political pressure on other countries, but I'm doubtful that they can be successful at it so a future Chinese-American trade war would be almost completely limited to those two countries.

American arrogance again.
China does not just manufacture for the US, it manufactures for most countries. Of course they can put a LOT of political pressure on other countries, just as much as the US can , if not more in some cases.

They are heavy investors in a lot of countries (hell just look at how much US debt they hold). The are the largest market for some smaller exporting countries.

The US is equally unfriendly to free trade with massive subsidies to various industries, e.g. agriculture.
They also dump excess production (because of subsidies) on the world managing markets.

The are a major supplier of rare earth materials, what would happen if they decided non US companies got preference ?

A trade war will harm every country, and damage relations.
[doublepost=1483145755][/doublepost]

I'm talking about Tim outsourcing jobs to China and India for manufacturing. Trump vowed to tax 45 percent if apple does this.
[doublepost=1483052821][/doublepost]
If the forum is filled with political warriors, it can't be helped.

And what will happen is that US citizens will start buying their iPhones from Canada.
The US voting public is NOT going to stand for a 50%-100% increase in prices. Apple will tie it up in the courts for as long as trump is in office.

Exactly HOW will Trump do this. NO ONE can build the infrastructure overnight. For example it would somehow need to create a new city of over a million people , thats about the

Foxconn is a Taiwanese company.
[doublepost=1483104151][/doublepost]
Mercedes had a fully functional robotics plant in Tuscaloosa, AL, which I toured 19 years ago. The entire SUV assembly was done by robots without humans doing anything but supervising the robots.
[doublepost=1483104519][/doublepost]
Robotics require human supervision. Every robotics plant employs humans. Robots can work 24x7, so more humans will be required to supervise robots. Additionally, government can start enforcing shorter work days. Let's go to a 28-hour work week: four 7-hour work days per week. More people can be employed. All of this is possible if there is a will.

In American inner cities, there's a new generation without jobs. Employ them at decent wages, and crime will go down dramatically.

Those robots can be monitored from China, programmed from China. The staff employed are becoming little more than janitors, keeping the workspace clean. AI will mean the robots will self diagnose, and potentially be repaired (bulk module replacement) by other robots. And AI is not just replacing factory workers, it will be doctors, accountants, lawyers, insurance brokers, shop staff, taxi/bus/truck drivers. Manufacturing techniques will change to allow for more automation.
Less and less individuality will be seen in housing as pre made "modules" will clip together.

The people who will become valuable will be the entertainers, social workers, psychologists , artists, teachers, i.e. the ones who will keep people entertained, busy, and feeling they have value.

 

[9081094]

Those perks going to disappear by Jan 20th.

If Apple or foxcon would invest heavily in robots and automation, they could fabricate everywhere. The problem is china is the biggest investor in robots and automation today and will win that race too. With all the tech moving too China it's scary to think they'll be able to surpass the west in technology soon.

 

[thewitt]

If Apple or foxcon would invest heavily in robots and automation, they could fabricate everywhere. The problem is china is the biggest investor in robots and automation today and will win that race too. With all the tech moving too China it's scary to think they'll be able to surpass the west in technology soon.

The world's first semiconductor assembly facility automated with material handling robots is in Shanghai. It was funded by an Industry 4.0 initiative being pushed by the Chinese government. It is very impressive and enables the first lights-out back-end facility for semiconductors in the world.

They are serious about being leaders in this space. They will win unless we redirect spending in this country toward technology and away from social engineering.

 

[9081094]

The world's first semiconductor assembly facility automated with material handling robots is in Shanghai. It was funded by an Industry 4.0 initiative being pushed by the Chinese government. It is very impressive and enables the first lights-out back-end facility for semiconductors in the world.

They are serious about being leaders in this space. They will win unless we redirect spending in this country toward technology and away from social engineering.

Wouldn't it be real nice if Apple (Google, Microsoft, Intel, etc.) spend some of its billions to build something like that in the USA? It would bring high tech back to the us and a lot of companies will profit from supplying the factory. I'm from Europe but it seems like all the high tech is coming from china these days. First they start to copy but now they're leapfrogging us... it's a scary thought. Especially when you consider that they have a very different approach on human well being and nature in general.

 

[thewitt]

Wouldn't it be real nice if Apple (Google, Microsoft, Intel, etc.) spend some of its billions to build something like that in the USA? It would bring high tech back to the us and a lot of companies will profit from supplying the factory. I'm from Europe but it seems like all the high tech is coming from china these days. First they start to copy but now they're leapfrogging us... it's a scary thought. Especially when you consider that they have a very different approach on human well being and nature in general.

If the US government did not have such confiscatory tax policies on overseas earnings, Apple would have already invested billions in this country. They have made this very clear.

Since the government would rather have their tax money over their investment in the US, this has proven impossible up till now.

 

[SarcasticJoe]

American arrogance again.
China does not just manufacture for the US, it manufactures for most countries. Of course they can put a LOT of political pressure on other countries, just as much as the US can , if not more in some cases.

They are heavy investors in a lot of countries (hell just look at how much US debt they hold). The are the largest market for some smaller exporting countries.

The US is equally unfriendly to free trade with massive subsidies to various industries, e.g. agriculture.
They also dump excess production (because of subsidies) on the world managing markets.

The are a major supplier of rare earth materials, what would happen if they decided non US companies got preference ?

A trade war will harm every country, and damage relations.

American arrogance? That's kind of funny seeing how I'm not even American...

Seriously thou, China can try to exert all of the economic pressure it wants on other countries trough it's manufacturing capacity, but if it ever goes trough with any threats based on this, it will be stepping on it's own toes. Not only will it be hurting it's own exports, it'll also be hurting local companies as foreign companies have to work with local companies to be able to manufacture goods in China. Also, never underestimate the military pressure the U.S can put in countries siding with another country.

As for the U.S agricultural subsidies, it's mostly just dumping whatever is left of the overproduction that the government doesn't buy up for foreign aid isn't anywhere near in the same league as the Chinese dumping of steel on the international market right now.

If China decides to start messing with the U.S using rare earth minerals then they truly are just shooting themselves in the foot. Not only will the U.S probably respond with sanctions of their own and developing their own supplies of rare earth minerals, it'll also spur other countries' industries into developing their own supplies of rare earth minerals. Even when it costs them considerably, it will reduce the global reliance on Chinese rare earth minerals and have further knock-on effects when it comes to companies' readiness to do any kind of business in China.

The worst case scenario here is that an American-Chinese trade ware can cause a drastic speedup in the development of factory automation and the return of manufacturing capacity (not necessarily actual jobs) from China to western countries as Chinese factories full of cheap Chinese labor are replaced by factories in the west full of tireless robots doing the same job for less money. Another alternative is that the factories move to other cheap labor countries like Vietnam, Thailand, India, Ukraine, Romania, Bulgaria and various others in southeast Asia and Eastern Europe.

 

[sir1963nz]

American arrogance? That's kind of funny seeing how I'm not even American...

Seriously thou, China can try to exert all of the economic pressure it wants on other countries trough it's manufacturing capacity, but if it ever goes trough with any threats based on this, it will be stepping on it's own toes. Not only will it be hurting it's own exports, it'll also be hurting local companies as foreign companies have to work with local companies to be able to manufacture goods in China. Also, never underestimate the military pressure the U.S can put in countries siding with another country.

I am from New Zealand, trust me I know.
New Zealand has stood up to the US and the UK and said no to Nukes in 1987. A country of 3.5 million at the time.
And we are still nuke free, in spite of US threats.