Foresight of Future Manufacturing and Trading

​

On May 10th, 2019, at 12 am, the United States imposed new additional tariffs of 25% on 200 billion Chinese goods. This significant move occurred during the Chinese delegation's negotiations in DC, even before the final meeting took place. This historic moment marked the United States' action as a declaration of the demise of globalization and the era of free trade.

 

For over half a century, Asian countries, especially China, have been the primary beneficiaries of globalization. China, in particular, emerged as the largest and most comprehensive beneficiary, leveraging every aspect of globalization to outperform other Asian regions and causing disruption in industries across the world. However, this trend came to an end on May 10th, 2019.

 

The Chinese saying, "30 years on the east side of the river, then another 30 years on the west side of the river," perfectly captures the Western world's awakening to China's approach. China used its advanced production capabilities, similar to how the British revolutionized cotton spinning, to conquer the world. This time, it expanded beyond specific categories and infiltrated all sectors, including high-tech areas like 5G.

 

The Western world had a dream and goodwill, believing that China would transition to freedom and a free market system, leading to economic growth and the rise of the middle class. However, the totalitarian government merged seamlessly with hardworking Chinese citizens, driven by the pursuit of economic success and the perception that money was the sole measure of worth. This created a pervasive gray area of corruption that permeated all levels of government, from banks to administration. It affected everything from land and housing markets to education, healthcare, mining, and e-commerce. China's speed and lack of market restrictions surpassed Western imagination, with negotiability becoming the norm.

 

Within just 20 years, China disrupted a significant portion of Western industries by offering unbeatable prices, quality, and unlimited financial support in trading. The free market, which the West embraced, began harming itself at an alarming rate, enticed by immediate profits. Industries started relocating to China, further propelled by China's entry into the World Trade Organization, leading Western industries to believe it was their future hope. Supply chains followed suit, Western factories closed one by one, and Western capitalists reveled in the allure of enormous profits and the respect bestowed upon them by Chinese government officials—a privilege they did not receive at home.

 

While capitalists and Wall Street elites excitedly celebrated their own cash-out moments, the turning point arrived on May 10th, 2019. The undercurrents created a significant shift, defying expectations and leading to the rewriting of history.

 

Now, we stand at a crossroads. Are we entering an era of historical retrogression, accepting only the positive aspects of globalization? Or are we experiencing a period of correction? It's time to reevaluate the true consequences of globalization facilitated by internet technology, reflecting on how the West inadvertently harmed itself, starting with Columbus' New World expeditions, followed by the Industrial Revolutions and worldwide expansion. In just 20 years, these actions have backfired.

 

The consequence of the final chapter of globalization is the principle of "winner takes all." History shows how globalization created empires on which the sun never set, transforming the United States into a superpower after World War II. The combined forces of the internet and Silicon Valley, along with the goodwill of a global village, concealed the darker side of globalization.

 

In the reality of a 'winner takes all' scenario, the first stage belonged to Western society, but then China seized the opportunity and came close to becoming the champion of 'winner takes all.' This was achieved through rapid development across various industries and a substantial market purchasing

 

The Western world has become more aware than ever, evident from previous American presidents' initiatives like "back Asia" and "TPP," as well as the decision to impose additional tariffs. This awakening marks the new normal, and finally, real corrective steps are being taken. Future presidents are likely to continue following suit or introduce further restrictions on Chinese imports.

 

Over the past 20 years in a small town in Italy, numerous factories have vanished due to competition from Chinese products. I have personally witnessed this transformation, starting from my first visit to the wool textile industry in 1993, where I admired the craftsmanship. Today, the industry has almost entirely shifted to the Chinese wool textile industry, with less than 5% of the original industry remaining operational.

 

In a small city in Peru, young people and families struggle to produce goods for the market as Chinese imports flood every category. This diminishes their chances of making basic living items. What does the country have left to trade with China? Alpaca? Peruvian cotton? Some income from crafts for tourists? Mining? Are these enough to secure a prosperous future for the entire population?

 

In many cities across Africa, China floods the market with various goods, ranging from snacks to fabric, generators to solar panels, and children's toys to phones. As a result, local businesses struggle to compete or even have the opportunity to develop prototypes for these items.

 

Brazil is a country that did not succumb to the bias of globalization. They imposed the highest import duties in the world, successfully protecting their industries from being flooded by Chinese imports, as seen in other countries.

 

A historical pattern repeats itself on a much larger scale and across various categories of goods, as China gains massive momentum in most industry sectors, flooding markets worldwide, much like the British flooding India with cotton textiles in the late 18th century.

 

The economic impact of this situation is sugar-coated with the beautiful ideology of a global village. It defends the inequality of opportunities for other nations and people. The attractive facade of free trade has reached its endgame.

 

Our focus should not solely be on cheaper goods. It's not just about inferior quality, but it also self-destructs humanity and the Earth. It exacerbates inequality between nations and regions, creating more poverty in other countries.

 

Now, everyone needs to reconsider how to protect themselves and their children from being vulnerable to flooding imports that can cause long-term economic and financial instability.

 

The world can achieve greater balance, harmony, and beauty without relying solely on globalization and free trade. By embracing our shared humanity, we can preserve our integrity, heritage, culture, and society, along with our own crafts.

 

A new era has begun, and it should not come as a surprise to see extra tariffs imposed everywhere or even bans on imports. This is not a war; it is about the humanity and equality of global opportunities.

 

As manufacturers and traders from China, it's time to change course and not only focus on themselves but also help others. Chinese should selflessly share their manufacturing knowledge, just as Western and overseas Chinese, including Hong Kong and Taiwan, helped China in its early stages.

 

As the Chinese government, this should not be another opportunity to strengthen political power through biased slogans in a trade war or fuel the flames of patriotism. There is no war; this is not a trade war.

 

It is a worldwide balancing act!

 

It is crucial time for Chinese government to govern the country with a focus on humanity and adherence to the rule of law. This represents the sole opportunity to preserve the positive outcomes of past globalization and free trade.

 

Failure to do so would risk missing out on the complete benefits of this historic opportunity.

 

It is time to bid farewell to the biases that have plagued globalization and free trade!

 

A new world awaits all of us, not just a privileged few!

 

Pan Pan

Founder

2510.ORG