Competition between the US and China appears to be increasing as the recent economic downturn in many markets has put both countries on a level playing field across multiple industries.
Manufacturing was once dominated by the United States from the early 1940s with the manufacture of large quantities of bombs and ammunition for World War II until the late 1970s, when the industry began to almost fade away in the United States slowly. until this recent economic downturn ruined everything. downward spiral that many economists saw coming for a long time.
The United States continues to try to conserve what it has left of its manufacturing, but with China’s huge investments in its own manufacturing and a lower minimum wage, plus almost non-existent health and safety standards, the fight becomes difficult. In many respects, the United States can almost blame itself, since for nearly two decades, most Americans have opted for the cheapest product made in China over the product that usually costs more but is made at home. This has taken a toll over the years, to the point that many companies have shrunk so much that they can’t compete because if their products aren’t made in bulk, their prices have to go up a bit, so they’re completely out of business. of the business. If this isn’t bad enough, the stock market in China has been creating an almost limitless investment machine, as mentioned in the article “China’s Growing Business Market.” If this trend continues, the US will have to make significant changes to compete for even a small market share with China and many other East Asian countries.
In my opinion, the United States has a unique opportunity for manufacturing if it can set up large factories to produce things like green or clean technology that cannot be outsourced. This market was once booming but has recently faded due to many other pressing issues. If Americans can not only create some of this technology, but also make it in their own country, it could be another boom, but at this point they are years behind countries like Germany, the Czech Republic, Japan, and even Denmark in this field. .
If there’s any chance that the United States can get back on its feet manufacturing-wise to compete with China, it’s going to have to come through some courageous innovation and a little bit of opportunity in new industries because at this point you can’t compete with someone who is making the products faster and for less money.