The Washington Examiner posted an article today about America’s dependence on Chinese manufacturing for inexpensive products.
The article reports:
American companies that produce essential goods in China should plan to shift their operations back to the United States or other Western countries, according to a senior Republican lawmaker.
“We’re staring into a significant, significant crisis of supply chain,” Colorado Sen. Cory Gardner told the Washington Examiner. “Cheap labor or cheap manufacturing be damned if you are reliant on them for your life and livelihood.”
Gardner’s warning was spurred by the shortage of hospital masks in the United States, a dearth driven by Beijing’s refusal to allow American companies that make the products in China to ship them out of the country amid the coronavirus pandemic. And he’s not alone in that sentiment, raising the possibility that anger over China’s self-interested response to the coronavirus outbreak could produce one of the most dramatic alterations of global economics in decades.
“Because of the coronavirus problem, people are recognizing that any supply chain that has single points of failure is incredibly vulnerable,” the Heritage Foundation’s Dean Cheng, a senior research fellow in the organization’s Asian Studies Center, told the Washington Examiner. “China is going to be very concerned about decoupling, offshoring, [or any] redirection of investments out of China.”
Obviously, the coronavirus has caused American companies to rethink outsourcing manufacturing to China, but the threats by the Chinese government have not helped the situation.
The article notes:
That suspicion of China reflects the degree to which the coronavirus pandemic has exacerbated the tensions between the world’s two largest economies. American officials are angry that Chinese Communist officials censored the early warnings that a new virus had emerged in Wuhan. In response, fuming Chinese diplomats have accused the U.S. Army of starting the pandemic while reminding the West that China controls key parts of the medical supply chain.
“There could be nothing more ham-handed and catastrophic than for the Chinese to talk some more about ‘how the U.S. created coronavirus, and, by the way, maybe we’ll cut off pharmaceuticals,’” Cheng said. “You want to have a situation where there really is that kind of a backlash, where the U.S. actively tries to not only decouple but move specifically away from China? That’s inviting that kind of a backlash.”
America can’t afford to outsource its drug manufacturing to a country that threatens to cut off the supply. It’s time to bring drug manufacturing home and employ American workers.