Wednesday, June 25, 2014

Ni Hao Y'All

I've been remarking for a couple of years that the flow of jobs will reverse and poor areas in the US will start to see work moving from China. What I had in mind was returning US companies. But there seems to be an unexpected bonus. The Chinese are coming.

I should have seen it from the first. If it's cheaper for a US company to build something in the US, it's going to be just as advantageous for China's private businesses to do the same. So why not expand abroad and reduce their political risk while improving their profitability?