Covid Economy 2, Electric Boogaloo

[Jockey]

tower

I was just in NYC/CT the past two days working with a client, very famous US Brand, and the topic of Central and South America was discussed at length. Our main contact, VP of supply chain mgt, spent a couple of years trying to develop Latin America has a backup plan to China and he stated he does not believe Latin America is capable of being anything more than a third tier supplier to the USA market. He is one of the smart guys we deal with and has a long track record of developing supply chains in low cost countries and I trust him a great deal.

Sad, but true, China remains options 1, 2 and 3 for far too much of our needs. We field calls daily with companies wanting to move some production out of China and very few people are willing to put the time and money into developing new markets. I believe we are going to face a very turbulent time in the global economy and it has me concerned.

My company was in Central America - Honduras and Costa Rica. They left about 6-7 years ago because costs were getting too high. Way cheaper to move everything to the Far East.

But even back then they were starting discussions on a possible future in Africa.

[4everwarriors]

Yeah butt which kountry builds better bloomers, hey?

[jesmu84]

Whole lotta America First in this thread

America first only applies if it benefits the capitalists

[ZiggysFryBoy]

You can really tell the people involved in international commerce and those not in this thread.

[Hards Alumni]

You can really tell the people involved in international commerce and those not in this thread.

[lawdog77]

heh, I'd say everything within a hundred miles of the border is going to be corrupt.

Have people not watched Narcos:Mexico?

[Hards Alumni]

Have people not watched Narcos:Mexico?

I didn't.  I stopped after Pablo died.  Felt like a good place to stop.  Is it worth continuing?

[ZiggysFryBoy]

I didn't.  I stopped after Pablo died.  Felt like a good place to stop.  Is it worth continuing?

Not really.

[Dr. Blackheart]

For you Chinese experts, thoughts on Xi getting reupped?  What was a sure thing a few months ago, seems to be at least in question now.

https://www.yahoo.com/news/troubles-mount-china-ahead-xis-100011438.html

I was having dinner with my good Chinese friend last week and he indicated that all is not rosey with Xi  over the brutality of the lockdowns and resistance, the economy--especially the alienation with the West, and criticism for his support of Putin. He suggested Xi and Li Keqiang are at odds, and a face saving "health" exit may be in store (with some unfounded rumors swirling).

[Uncle Rico]

For you Chinese experts, thoughts on Xi getting reupped?  What was a sure thing a few months ago, seems to be at least in question now.

https://www.yahoo.com/news/troubles-mount-china-ahead-xis-100011438.html

I was having dinner with my good Chinese friend last week and he indicated that all is not rosey with Xi  over the brutality of the lockdowns and resistance, the economy--especially the alienation with the West, and criticism for his support of Putin. He suggested Xi and Li Keqiang are at odds, and a face saving "health" exit may be in store (with some unfounded rumors swirling).

Seems mostly speculative and not likely. 

[Dr. Blackheart]

Seems mostly speculative and not likely.

As with anything with China, one is left to speculation. What's different to me is there is more internal smoke on this one.
https://m.economictimes.com/news/international/world-news/chinese-social-media-abuzz-with-rumours-of-xi-jinping-stepping-down-for-covid-19-mismanagement/amp_articleshow/91560750.cms

[real chili 83]

For you Chinese experts, thoughts on Xi getting reupped?  What was a sure thing a few months ago, seems to be at least in question now.

https://www.yahoo.com/news/troubles-mount-china-ahead-xis-100011438.html

I was having dinner with my good Chinese friend last week and he indicated that all is not rosey with Xi  over the brutality of the lockdowns and resistance, the economy--especially the alienation with the West, and criticism for his support of Putin. He suggested Xi and Li Keqiang are at odds, and a face saving "health" exit may be in store (with some unfounded rumors swirling).

Can you say that?  Isn’t that like saying “my good PR friend”? 

[Uncle Rico]

As with anything with China, one is left to speculation. What's different to me is there is more internal smoke on this one.
https://m.economictimes.com/news/international/world-news/chinese-social-media-abuzz-with-rumours-of-xi-jinping-stepping-down-for-covid-19-mismanagement/amp_articleshow/91560750.cms

Interesting.  Thanks for that link.  Will be curious to watch this

[Dr. Blackheart]

Can you say that?  Isn’t that like saying “my good PR friend”?

My good PR friend plies me with pork and rum. My good Chinese friend plies me with dumplings and Massagli. There seems to be a theme to curry the Dr's favor.

[Goose]

Dr. B

If Xi stepped down that would be an amazing turn of events. He will not go down quietly, IMO.

[Hards Alumni]

Dr. B

If Xi stepped down that would be an amazing turn of events. He will not go down quietly, IMO.

Amazing how much we agree on about China.

[JWags85]

Dr. B

If Xi stepped down that would be an amazing turn of events. He will not go down quietly, IMO.

The only way I see Xi ever "stepping down" would be some VERY severe health condition...which would be tied to him handpicking and shaping the successor to be his mirror.  He's there for the distance.

[MU82]

The only way I see Xi ever "stepping down" would be some VERY severe health condition...which would be tied to him handpicking and shaping the successor to be his mirror.  He's there for the distance.

Agree, and that’s a big part of why it’s difficult for any US President to “win” a trade war against him. The US president faces reelection and/or term limit; Xi is in for the long haul and knows he can simply outlast his US rival.

[tower912]

My favorite neighborhood restaurant has been closed for 10 days as COVID has swept through the staff.    Deja vu all over again.

[4everwarriors]

Simple fix...find another restaurant, aina?

[tower912]

Nah.  I've known the owner for 20 years.   

[tower912]

Maybe China should have kept their COVID restrictions in place.

[Hards Alumni]

Maybe China should have kept their COVID restrictions in place.

The blueprint that society decided works was out there.  China had every opportunity to vaccinate their population in the last almost three years.

They're skipping a very important step.

[tower912]

Supply chain is going to get royally fouled up again.

[MU Fan in Connecticut]

Supply chain is going to get royally fouled up again.

A lot of companies have spent the last year trying to onshore (at least a portion) to prevent a repeat of 2020.  (I've quoted several.)  The latest China events will only hammer home and speed up the process.