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This Isn't What We Meant by Taking Manufacturing Out of China...

5/18/2020

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So Apple has decided to move $40 billion of its production away from China. Yay, right>

Wrong!
Apple is considering moving a fifth of its production from China to India, a new report claims. 

The tech giant is in talks with Indian officials about producing up to $40billion worth of smartphones over the next five years through manufacturers Wistron and Foxconn, according to the India's Economic Times. 
​
The move - which could make Apple India's largest exporter - comes as the coronavirus pandemic that began in Wuhan, China, caused major disruptions in tech supply chains.  
One of the problems with all this China-bashing, particularly on the Right, is that it takes the focus off of US policy. It's not China's fault our manufacturing plants moved there. It's mostly American policymakers fault.

Don't get me wrong, China has plenty to blamed for, but taking the eye off American policy by blaming China for everything is pointless. 

This should not be surprising. As The Times of India reported in February of this year regarding Trump's last trip to India,
US President Donald Trump’s maiden visit to India will provide an opportunity to further strengthen the strategic partnership between the two countries, the ministry of external affairs said…

…The MEA said the global strategic partnership between India and the US is based on ‘trust, shared values, mutual respect and understanding’, and marked by warmth and friendship between the peoples of the two countries.

‘The relationship has further evolved under the leadership of Prime Minister Modi and President Trump, with significant progress in all areas, include trade [emphasis mine], defence, counter-terrorism, energy, coordination on regional and global issues as well as people-to-people ties,’ the MEA said.
As the White House's own statement says regarding India,
ENHANCING OUR VIBRANT ECONOMIC TIES: The United States and India benefit from strong economic ties that advance prosperity, investment, and job creation in both countries.

  • - The United States and India enjoy a longstanding trade relationship, exceeding $142 billion in two-way trade in 2018 alone.
  • - India is a growing destination for American energy exports.
    • During President Trump’s tenure in office, energy exports to India have grown substantially, generating billions of dollars in American revenues.
    • - In India, ExxonMobil signed a deal to further improve India’s natural gas distribution network so that the country can accept even more American LNG exports.
  • - The President and Prime Minister Modi are working toward a trade agreement that reflects the full potential of the economic relationship between our two countries.
There's nothing wrong with India of course and trade is good to a certain extent at least. But what seems to be happening is nothing more than a shift in outsourcing manufacturing from China to India.

I mean, honestly, who cares? This does not bring back manufacturing nor does it secure our supply chain. It's just rearranging deck chairs on the Titanic. 

And it's not what we asked to (and they said they would) bring manufacturing back to the United States.
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    Andrew Syrios

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