<story><title>Manufacturers want to quit China for Vietnam, but find it impossible</title><url>https://www.wsj.com/articles/for-manufacturers-in-china-breaking-up-is-hard-to-do-11566397989?mod=rsswn</url></story><parent_chain><item><author>whatshisface</author><text>This tariff situation is quickly becoming an amazing opportunity for developing countries. The labor shortages being talked about can only be resolved through higher wages, which means that the people at the bottom will get a cut of the new money. In the end the world will be a lot richer and the money will be in the hands of relatively livable countries like Vietnam. (The Vietnamese government is actually pretty good in terms of freedoms.)&lt;p&gt;It&amp;#x27;s also politically preferable for the US to depend on a hundred small countries instead of one big competitor. It may also help cushion the next global recession, as each of these international markets will be less correlated with each other than one company in China is with another company in China.&lt;p&gt;Chinese companies are very tightly integrated with the government&amp;#x27;s balance sheets, meaning that you can&amp;#x27;t diversify within China. If one company goes under that means the subsidies ran out, and that means all the other subsidies are running out, which means the economy is toast.</text></item></parent_chain><comment><author>bduerst</author><text>Which would be the case if the tariffs were China-only, but the current presidential administration is enacting tariffs on many other countries, like Mexico, Brazil, and S Korea.&lt;p&gt;Also, the upcoming Regional Comprehensive Economic Partnership (RCEP) meeting in November could be used by China to unify most of APAC against the U.S.  The U.S. TPP was a blocking move to prevent the RCEP, which in it&amp;#x27;s current form covers half the world&amp;#x27;s economy (India, China, and others).&lt;p&gt;Negotiations for RCEP have been slow but with the U.S. now burning trade bridges with it&amp;#x27;s partners, we&amp;#x27;re probably going to see something interesting happen in November.</text></comment>
<story><title>Manufacturers want to quit China for Vietnam, but find it impossible</title><url>https://www.wsj.com/articles/for-manufacturers-in-china-breaking-up-is-hard-to-do-11566397989?mod=rsswn</url></story><parent_chain><item><author>whatshisface</author><text>This tariff situation is quickly becoming an amazing opportunity for developing countries. The labor shortages being talked about can only be resolved through higher wages, which means that the people at the bottom will get a cut of the new money. In the end the world will be a lot richer and the money will be in the hands of relatively livable countries like Vietnam. (The Vietnamese government is actually pretty good in terms of freedoms.)&lt;p&gt;It&amp;#x27;s also politically preferable for the US to depend on a hundred small countries instead of one big competitor. It may also help cushion the next global recession, as each of these international markets will be less correlated with each other than one company in China is with another company in China.&lt;p&gt;Chinese companies are very tightly integrated with the government&amp;#x27;s balance sheets, meaning that you can&amp;#x27;t diversify within China. If one company goes under that means the subsidies ran out, and that means all the other subsidies are running out, which means the economy is toast.</text></item></parent_chain><comment><author>LeanderK</author><text>&amp;gt; The Vietnamese government is actually pretty good in terms of freedoms.&lt;p&gt;Wait, what? They recently kidnapped an ex-party member in germany. It was 2017 or so. I can&amp;#x27;t believe that a country which honors you freedom would do something like this.</text></comment>