Time to get out of Communist China, Japan makes the first move
White House Trade Adviser Peter Navarro, who has eyes set firmly on China, has implied that the COVID-19 pandemic will change how the U.S. handles its global supply chains.
The Trade Adviser said: “One of the things that this crisis has taught us is that we are dangerously over-dependent on a global supply chain.”
Peter Navarro is considered outside the mainstream when it comes to economics. In 2005 he wrote ‘The Coming China Wars‘ and in 2011 ‘Death By China.’ Simply put, Navarro is no fan of China and wants the U.S. to increase its manufacturing, ultimately stopping its reliance on global supply chains.
This is something every citizen should want.
Navarro continued: “Right now as we speak, over 50 countries have already imposed some forms of export restrictions in their country against the rest of the world.”
China is the nation’s biggest supplier. Since 2001, there has been a 427% increase in the amount spent on Chinese imports, and that percentage only takes into account the $539.5 billion spent in 2018. As of 2018, 21.2% of U.S. imports come from China.
These are massive numbers that prove the nation is too reliant on China. Navarro is right.
The savvy White House Trade Adviser concluded: “No matter how many treaties you have, no matter how many alliances, no matter how many phone calls, when push comes to shove you run the risk, as a nation, of not having what you need.”
Simply put, lets put America first.
This pandemic may damage the economic platform President Trump would have run on for re-election, but it could also give the President and his Trade Adviser the perfect opportunity to get off the Chinese supply chain teat.
Japan makes the first global supply chain move
Japan is already pulling the plug on China. In their nation’s COVID-19 stimulus package, more than ¥220-billion, which is $2.2-billion U.S., has been earmarked for relocating manufacturing from China.
Like the United States, China is Japan’s biggest trade partner. However, as imports from China have halved since COVID-19, Japan’s manufacturing, which is reliant on components from China has been left in ruin.
Japan’s panel on future investment and prominent firms discussed the nation’s reliance on China. The money they’re spending on relocating makes it clear how those discussions went.
If every nation reacts this way to the COVID-19 pandemic, the global economy will change forever. How that impacts China, and how they’ll retaliate is unknown.
Changing minds across the nation
The Washington Post’s Josh Rogin wrote: “A new poll shows that, outside the Beltway, the coronavirus crisis is actually bringing Americans together on the China issue. Republicans and Democrats now largely agree that the Chinese government bears responsibility for the spread of the pandemic, that it can’t be trusted on this or any other issue.”
Inside the Beltway, many are still debating whether the President is racist for calling COVID-19 the “Chinese Virus.” Considering it originated in China and it’s a virus… What’s next? Re-write history to change the name of Spanish flu because it’s racist? Insane.
There are three reasons American’s are coming together against the actions of China at this time:
- COVID-19 has impacted everyone’s life, from financial stability to their freedoms.
- China is lying about COVID-19 and using propaganda to blame others. Including the United States.
It’s tragic that it takes a pandemic to unify most of America, but it’s better late than never.