Chapter 912: Industrial Clusters
Eakins and McGee happily returned to the United States. They signed cooperation agreements with dozens of small enterprises in Jinnan, agreeing that they would accept orders in the United States and then hand them over to enterprises in Jinnan to complete. Enterprises in Jinnan send the finished products to the Yimai factory, but they have to write them as blanks when they clear customs. The Yimai factory will do some symbolic processing of these products before selling them to large American companies such as Haifei, which can be considered American-made products.
They have calculated that even with the addition of 50% import tariffs, it is still cheaper to purchase spare parts from Jinnan than to manufacture them in the United States, not only because China's labor costs are lower than those in the United States, but also because of the scale effect generated by industrial agglomeration.
In China, industries in many regions have formed industrial clusters, such as the metal processing industry in Jinnan, which has formed a one-stop production system of smelting, casting and forging, machining, heat treatment, flaw detection, packaging and transportation, etc. Such a production system allows for the best use of personnel and equipment, and the cost savings are considerable.
On the other hand, in the United States, there is only one machinery company in the entire town of Barr, which either equips itself with a complete set of production equipment and workers, and leaves them idle most of the time, or has to go dozens or even hundreds of kilometers away to seek production support, and the logistics cost alone is unbearable.
It's not that Americans don't understand the truth of industrial agglomeration, in fact, during the period of industrial prosperity in the United States, Pittsburgh, Detroit and other places have formed a complete and huge industrial system, especially during World War II and a period after the war, American manufacturing almost supported the world's demand.
However, as the economy grows, labor costs in the United States and Europe continue to rise, and manufacturing shifts to regions with lower labor costs. First Japan, then the "Asian Tigers", and then China, have become the destination of manufacturing relocation. Compared to China, Japan and the Asian Tigers are small economies that cannot meet the needs of the world even at full capacity. However, China is a large country with a population of 1.3 billion, and the industrial labor force reached 200 million at its peak, and the principle of 1+1>2 is especially obvious for the industrial field.
The scale of the garment manufacturing industry is large, it can support the industry of manufacturing and repairing sewing machines, and the more sewing machines are produced, it can support the machine tool industry. One industry drives another industry, and the development of the latter industry does not need to be at the expense of weakening the previous industry, because ...... The workforce is there!
In this way, China's industry has gradually formed hundreds of industrial agglomeration areas densely covering the whole country. Often, a certain county or even a certain town can monopolize a certain product in the global market, and the output reaches more than eighty percent of the world. Industrial agglomeration means that a complete supporting system related to this industry will be formed locally, and any investor who wants to enter this field can gather workers, technicians, equipment, raw materials, drawings and even sales channels in an instant as long as they stand at the street corner with their money bags and shout. All you need to do is snap your fingers and a factory will be up and running.
At this time, how can other countries and regions compete with a county or even a town in China?
The phrase big but not strong was actually invented by acid literati who don't understand industry. In this world, big means strong, and it is not difficult to understand the truth that wolves eat tigers.
It was precisely because Eakins and McGee knew this truth that they gave up their desire to compete with Kinnan's small businesses and became second-class traffickers. In the current situation, in order not to offend Meipu, large companies such as Haifei need to symbolically reduce the import of parts from China and switch to purchasing from the United States. But the United States cannot form such a supporting system, which requires small enterprises like Ekins to be setters.
The Yimai plant imports "rough parts" from China, processes them into final parts in the United States, and sells them to Haifei. In this way, judging from Haifei's books, the "localization rate" of products can be greatly increased, and Meipu can claim that his great strategy of the United States has achieved brilliant results. As for saying that these "Made in America" parts are actually produced in Jinnan's small enterprises, Meipu can pretend not to see it. People who are politicians know very well what they need to know and what they need to pretend not to know.
"Xiaochen, in the past three months, the trade surplus between China and the United States has not only not narrowed, but has further expanded, which is really a bit dramatic. β
In Feng Xiaochen's office, Xu Zhenbo, director of the Ministry of Commerce, reported with a smile.
Feng Xiaochen also smiled and said, "What is the specific reason, have you done an analysis?"
Xu Zhenbo nodded and said, "We have done customs statistics. Since the announcement of the tariff increase, the quantity of various goods imported by the United States from China has not dropped significantly, and the import of some daily consumer goods has even increased. It is understood that some U.S. importers are worried that the Mapp government will raise taxes further in the future, so they take precautions and stock up in advance, which is the main reason for the abnormal increase in their import volume. β
Feng Xiaochen said: "Meipu has always claimed that the United States has suffered a big loss in Sino-US trade. In fact, the United States imports goods from China, not out of charity, but because the United States itself needs these goods, its people need cheap daily consumer goods, and its enterprises need Chinese raw materials and spare parts, which are all rigid needs. If Meipu doesn't think about how to increase exports to China, but wants to restrict imports from China, this is going against the sky, how can it succeed?"
"What the United States is doing now is to increase its own production, and it is seeking to use other countries to replace China. There are already some signs of the former, according to the data, the index of industrial production in the United States last quarter recorded the highest increase in the past five years, and the unemployment rate also fell sharply, indicating that production in the United States is recovering. Xu Zhenbo said.
Feng Xiaochen nodded: "This is not surprising, after all, the United States is also a big country, and it can't always rely on playing finance to be a parasite, right? If needed, we can help them, for example, by providing them with some industrial equipment. β
"Poof!" Xu Zhenbo laughed directly, Secretary General Feng's words are really domineering, he really deserves to be the general manager of an equipment company for more than ten years, and he has full confidence in China's equipment.
At the same time, in the press shop of a car factory in Detroit, Mapp was standing on a makeshift platform, spitting at a group of reporters and workers in the audience:
"Ladies and gentlemen, I am proud to say that over the past quarter, the U.S. industrial production index has risen by 2.1% quarter-on-quarter, which is a remarkable result and shows that our manufacturing sector has achieved a strong recovery. Just now, Mr. Beagle, the director of this factory, told me that last month they built a total of 34,000 cars, and 80 percent of the parts came from the United States, made by great American workers. β
"Wow!"
The audience applauded thunderously, which naturally included the childcare arranged by the Meipu staff in advance, and the other was the melon-eating crowd who were driven by the atmosphere of the scene. In fact, the emotions of the masses are the easiest to be guided, a few sensational words, a few gestures, and enough psychological hints can make them feel that the person standing on it has a halo on his head, and he is a big hero who can save them from the dire situation.
"Mr. President, from what I've seen, while the administration has dramatically increased tariffs on imports from China, the U.S.-China trade deficit has narrowed over the past quarter and has increased by $4 billion over the previous quarter. Does this mean that our tax hike policy has not had the desired effect? "A journalist asked an inopportune question.
Mr. Mepp was elected on the basis of grassroots support, and the intellectual elite in the United States was critical of the reckless president, and many media outlets used Mr. Mepp's stubble as a selling point. In a fit of rage, Mei Pu angrily accused the American media of lying one after another, and the result naturally further intensified his relationship with the media. Therefore, at every public event, there are media reporters who challenge Map, which has become a common practice.
"No, Mr. Reporter, you're wrong!" Retorted without blinking, "You just saw that the U.S.-China trade deficit increased by $4 billion last quarter, and you didn't see that before that, the deficit widened by more than $4 billion every quarter." In other words, it is precisely because we have raised tariffs on imports from China that we have succeeded in curbing the trend of widening the deficit. β
That's okay too......
The reporters in the audience were all cold. I said that the first derivative is positive, and you told me that the second derivative is negative, so you win, and this kind of logic seems to be very powerful.
"So, Mr. President, will the administration continue to maintain such high tariffs in the next step?" asked another reporter.
Mapp said flatly: "No!"
"No!" The reporters and business executives present were shocked, this is shocking news.
Unexpectedly, Map's next words turned them all over to Lei:
"I'm going to double the current tax rate, and our goal is to make it impossible for any Chinese products to enter the United States!"
Before he could finish his words, he felt something fall from the top of his head. He reached out and caught it, and found that it was an American flag. The flag was originally temporarily attached to the huge car body press behind him, but I don't know if it was because it was not strong or because it was blown by the fan in the workshop, and the flag fell.
"Huh!"
Everyone's eyes looked up along the trajectory of the national flag, and they were surprised to find that the place where the national flag was pasted turned out to be the logo of the equipment manufacturer. The people who set up the scene may have put up a national flag in one more move to block that sign.
That sign is exactly that:
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