China Morning Missive
Any American company having, to this very day, a China supply chain acute dependency is - bluntly - a company having no other options. Or better put, has no other options which won’t either (1) detrimentally impact adequate access to finished goods/required inputs or (2) severely impairs profitability.
It’s been seven years since Trade War 1.0 and the point at which the risk posed by an over-reliance on China for any given company’s supply chain became overtly evident. Then that risk went from theoretical to very, very real. China at the onset of Covid implemented export controls on locally manufactured PPE. Today it’s rare earths. What might be next?
All else equal, the combination of these two known events should have resulted in all American companies exiting completely from their China based production. But all else is not equal and for far too many the Gordian Knot has proven impossible to cut. All that was left were excuses.
Again, it has been seven years and I’ll repeat my point. If a company hasn’t shifted its production out of China it’s because they can’t. What has been learned is that China is all but impossible to quit for so many and so many critical industries in America. All that Mr. Ackman has done here is put his ignorance on full display.
https://www.bloomberg.com/news/articles/2025-04-26/ackman-says-time-is-friend-of-us-enemy-of-china-in-trade-war?utm_source=website&utm_medium=share&utm_campaign=copy
prc30 / Peter Alexander
npub1yy…4kawc
2025-04-28 01:03:43
Author Public Key
npub1yy3uc7y85faxy5cwq8f574yda3j9457p7r9h2ymlkwlx6lp8f4vsy4kawcSeen on
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2025-04-28 01:03:43Event JSON
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