The year of the metal rat returns every 60 years -- and brings calamity with it
asia.nikkei.com
In Zhongnanhai, the area in central Beijing where leaders of the Chinese Communist Party and the state government have their offices, "there are now serious concerns over foreign companies withdrawing from China," a Chinese economic source said. "What has particularly been talked about is the clause in Japan's emergency economic package that encourages (and funds) the re-establishment of supply chains."
**** you China!
Let’s eat Sushi, NOT BATS!
They should be very afraid. It was foolish for the world, particularly the US to outsource majority of industrial production to the Communist Chinese in the first place. Maybe corona will be a wake up call., but kinda doubt it actually.
In regard to outsourcing, the decisions were made not by government but by individual businesses. Whoever provide the best product at the lowest price got the work. This is the heart of American capitalism. Why would an American business pay more money for the same work done in the US that can get done for less abroad. In a more socialist economy, government would pressure the business to hire American workers. In a more capitalist economy, government would support free market principals allowing the business to shift the work abroad to maximize profits. Siding with free market principals vs socialism is not a win win proposition.
Possibly because it is in our national interests to have a solid manufacturing base here for strategic purposes. What if it got to the point where all the anti-viral drugs were mainly manufactured in Communist China. Oops. We may have discovered and designed, but it appears, Communist China already makes the majority of anti-viral drugs for us. Not impressive at the moment, is it?
That kinda goes with the territory. If you allow private businesses to make decisions on what's best for their bottom line, they are going to buy from the lowest cost provider, even thou it's China.
BTW, antivirals are manufactured in a number of countries including the US. Both India and China tend to concentrate their manufacturing on high volume low cost generics. The US, UK, and EU countries concentrated on more high end products.
Good to know. I was just referring to articles lately saying most come from Communist China, like this one:
Where Your Drugs Come From: 90% of Many Common Drugs Made in China; FDA has Lost Control
American consumers have no idea that the majority of the over-the-counter drugs they buy come from China, where there are few regulations. The increasing dependence on China for active pharmaceutical ingredients and nutritional supplements is of growing concern. China is the world's largest manufacturer of bulk drugs and nutritional supplements and is now exporting a large portion of its production to the United States.
The FDA conducts about 1000 inspections a year on foreign drug manufacturing facilities. This is about twice the number of inspections they do on US facilities. This is in addition to quality control inspections done by the US buyer of the drugs and those of other countries. Most all of these drugs are sold in a number countries, many of which have their own requirements which may include inspections. Drug recalls on prescription drugs are rare compared to other products. I have not seen anything to indicate that drugs manufactured in the US are any safer than those manufactured abroad. The companies that make these drugs are typically very large and supplying many countries including the country they are located in.
The real problem is that this kind of percentage of our drug supply went over there in the first place. Not exactly a labor intensive process. The usual cheap labor reason, not applying. Neither does the atmospheric pollution justification. I freely admit, I have no clue why so much of American drug supplies are manufactured in Communist China. Not in our best interests and hard to think it ever was.
It's kind of a long story.
Like a lot of businesses in late 20th, century the pharmaceutical sector sought to cut overhead through mergers and elimination of middle management, etc which did increased profits significantly. The drive to reduce costs in the early 21st century drove manufacturing abroad. At that time most of our drugs came from Europe, Mexico, and the US. Also at this time, the demand for low cost pharmaceuticals was exploding in third world countries. This is when the drug companies discovery the potential of manufacturing in China and then India. Small manufacturing plants in China that were making OTC products began manufacturing prescription drugs. Demand throughout world for low cost drugs drove nearly all manufacturing to China and then India. The plants became gigantic and their large scale production made it impossible for developed nations to compete.
About 10 years ago, the major buyers in the US began consolidating. Their buying power was so great that they dictate prices to the manufactures pushing prices even lower which forced even more production to China. Today, the market is so consolidated that just four of these power buyers control
over 90% of generic drug purchasing for the entire country. The same is happen but to lesser extent with brand name drugs.
The bottom line here is that pharmaceutical manufacturing in the US and Europe is limited to high end brand name drugs and this is very unlikely to change. Americans love being able to buy generics for $4 or $5 instead $50 or $60 or more. The drive to lower the cost of healthcare would make it almost impossible for goverment to tax these imports and drive the prices up, particularity in light of the fact, that pharmaceutical manufacturing is so highly automated that it would create relatively few jobs and the investment cost would be huge.
The coronavirus outbreak is a good time to ask why our leaders sat by as so much of the US pharmaceutical industry was shipped abroad.
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