Mofra
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- Dec 6, 2005
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- #151
That would require other third world countries to suddenly be able to ramp up their smelting capacity in a short period of time, which I am unconvinced they can.China relies on being able to do things cheaper than anyone else. Not better than anyone else.
What happens when their raw inputs start to cost a lot more?
What happens when we sell our cheaper inputs to other 3rd world countries who are happy making trade deals with us and happy to take our investment money?
Let's not forget Chine also control 90% of rare earth minerals too which gives them huge power in the global electronics manufacturing trade. Japan found out the hard way a few years ago just how willing China are to use their trade clout to push their political agenda (see Chinese sailors being detained by Japan, China halting REM supply as a result).