I think that underestimates the extent to which the Chinese economy is vulnerable to reduced demand from foreign partners. I’m not saying China’s in a worse position than the US, since the US has a blithering imbecile traitor as President. But they’re not invulnerable to economic shocks either.
Part of my company’s plan to weather the trade war was to stock up and wait for our competition to be priced out. We also expect the factories in China that supplied our competitors will shut down too. There is a ton of spare capacity with some of them and they work on slim margins. Even a short term downturn of orders can push many to close.
I think that underestimates the extent to which the Chinese economy is vulnerable to reduced demand from foreign partners. I’m not saying China’s in a worse position than the US, since the US has a blithering imbecile traitor as President. But they’re not invulnerable to economic shocks either.
Part of my company’s plan to weather the trade war was to stock up and wait for our competition to be priced out. We also expect the factories in China that supplied our competitors will shut down too. There is a ton of spare capacity with some of them and they work on slim margins. Even a short term downturn of orders can push many to close.
They don’t tend to close, they pivot.