For a long time, I have been conducting a kind of crusade aimed at making the readers aware of the complexity of supply chains today, especially in production. The more complex the final product, the more threads in the chain that let the product to produce.
Recently, I have had the chance to "shirk" the opinion of a Polish company manager that products from China are inferior to their European counterparts, and the price difference is due to low quality Chinese products.
And I'll admit there's been any kind of overvoltage in my brain. It's 2024, right? We've been utilizing Chinese computers, laptops, monitors for at least 15 years. 10 years from Chinese cameras, drones, smartphones. From “in a moment, just a moment” from Chinese passenger cars, buses, peculiar vehicles, trucks. inactive nothing?
For me, people who have been active for most of their working lives with different forms of production are alarming. How low is our general cognition of how to produce simple products and the most complex ones. It is surely the work of education from which items have been discarded, specified as “Practical and method Classes”. But the blame is besides on the fresh technologies that seem to have brought us closer to the full world, which made us have access to information unimaginable even 30 years ago, and in fact have virtualized and shone us daily. We don't wonder due to the fact that erstwhile a question comes up in our heads, we look for answers online. And we treat these answers very rapidly and easy as revealed, certain truths.
So if the media says that we're going to do as a Europe of stripping with China, if we decide to decision the productions to ourselves, if we're in this thing better than the Chinese, then so be it. The politicians and people who give power to these peculiar politicians are convinced of this. Heads, managers and employees of companies, even production companies, are convinced of this.
Meanwhile...
I will skip the silence of European smartphones and laptops, due to the fact that it is hard for me to find the equivalents of Chinese proposals (weakly looking, mea culpa), but let's take, for example, a car.
The average car is about 30,000 parts.
30 years ago, we produced most of these parts in Europe. little than 40% today. And from year to year the share of European plants in the production of these plants is decreasing. Why? As energy costs discourage producers from utilizing local sources. And European countries are not in a hurry to financially support establishments applicable to these countries for reasons another than financial reasons. Most car parts are manufactured in China. It just happened. And Chinese companies are able to supply these parts cheaper than competition. Why? due to the fact that the full natural materials base was located in China.
Cars, for example, are steel, aluminum and plastic. In all these categories, China is simply a global tycoon, taking any first place. Solid first place.
China's share of planet steel production 1967-2023This first place causes Chinese car parts manufacturers, who learned from the world's best craftsmanship in their Chinese factories, to have at their fingertips everything they request to manufacture parts. And they have access to electricity 70% cheaper than their European competitors.
China's share of planet aluminium production 2023And that's why what automotive produces in China is cheaper and faster available. And the quality? Well... If the commenter, who caused an electrical storm in my head, had any thought about the modern supply chains, he would know that European cars are at least 60% based on Chinese components, and that Volvo is, Mr. Acts, all of China.
Our top ally draws us (Europe and Poland) into his geopolitical game, in which he re-applys measures that have long been known to be counterproductive. This means that in the long word they are hitting those applying these measures. Unhindered imports from China are crucial, even existential, for Europe. The list of natural materials, components, semi-finished products and finished products that China is the most crucial origin for Europe is most likely highly long. but nobody's always truly developed one. Instead, it was decided to introduce a curiosity law that could go backwards. The latest example is the Union decision of 5 March to impose, from that date, penalties on Chinese car importers in the form of firewall duties. Only that their tallness and all additional circumstances will be established in the future.
Interesting?
Without cars from China, we'll most likely be fine. Worse with machinery and equipment, intermediates and components from China essential for manufacturing. There may be a substitute locally. but the Chinese offer will be cheaper, better, faster available in the right quantities. Accessible, though blocked, prohibited. "The government creates dams, people like water, always find any kind of rift," said a large-scale abroad trade Chinese. And he knew what he was saying.
The import in the coming days will most likely gotta enter Master Level. But that was it. Praise the Most advanced that we have been through this. It's just a shame that alternatively of moving forward, we're going back a fewer decades. It's besides bad this undoing isn't gonna work. It is impossible to halt the processes that we started, somewhere around 1992, and which Deng Xiaoping bloomed in a characteristic way: “Whether the cat is white or black. It is crucial to catch mice.” At the time, we thought we were cats. Meanwhile...
Leszek B. Glass
Email: [email protected]
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