Prospect of low-priced Chinese EVs reaching US from Mexico poses threat to automakers - eviltoast
    • disguy_ovahea@lemmy.world
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      4 months ago

      Do you mean informed?

      In Xinjiang, the government is the trafficker. Authorities use threats of physical violence, forcible drug intake, physical and sexual abuse, and torture to force detainees to work in adjacent or off-site factories or worksites producing garments, footwear, carpets, yarn, food products, holiday decorations, building materials, extractives, materials for solar power equipment and other renewable energy components, consumer electronics, bedding, hair products, cleaning supplies, personal protective equipment, face masks, chemicals, pharmaceuticals, and other goods—and these goods are finding their way into businesses and homes around the world.

      https://www.state.gov/forced-labor-in-chinas-xinjiang-region/

      In other words, the U.S. content of “Made in China” is about 55%. The fact that the U.S. content of Chinese goods is much higher than for imports as a whole is mainly due to higher retail and wholesale margins on consumer electronics and clothing than on most other goods and services.

      https://www.frbsf.org/research-and-insights/publications/economic-letter/2011/08/us-made-in-china/

      It is simply more economical to use forced labor than to pay minimum wage. It results in lower price points on Chinese branded products, and higher margins on US branded products produced in China. This problem is not exclusive to automotive manufacturing, as illustrated in the above research article.

      To be clear on my personal opinion, I’m not recommending US industry over foreign. I drive a Hyundai. I’m specifically speaking against Chinese industry, just as Biden’s tariffs are not applicable to imports aside from China.