this post was submitted on 05 Jul 2023
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I love how a lot of people are coping claiming that ThiS wIlL AcTuAlLy HuRt China because all this industry is just going to magically appear somewhere else. Obviously in the long term the west will have no choice but to start creating their own supply chains, however that's going to take many years to do. Meanwhile, China already has independent end-to-end supply chains and that means Chinese companies will have a huge advantage producing tech products using these rare metals giving China a huge market advantage.
Not to mention because of the capitalist nature, companies that will be creating these new supply chains will charge exorbitant money for lackluster work leading to even more delays.
Absolutely, the whole chip reshoring is going to end up being a giant money laundering scheme just like Ukraine where oligarchs are going to feast on the subsidies without actually producing much of anything. They're trying to replicate the success of China's state investments without having state control over the industry. It can't work.