US swims against tide of trade globalization
US swims against tide of trade globalization

U.S. multinational companies know that deglobalization of supply chains and de-coupling from China will affect their production capabilities in the United States and their competition with Chinese firms in the long term, according to Harvard Business Review.

Though the COVID-19 pandemic has triggered calls for deglobalization, the fundamentals of the U.S. globalized economy — and China’s role within it — will not change, said a report published on the magazine Thursday.

The biggest tech firms in the United States rely on “a global scale of sales and operations to stay ahead of foreign rivals,” the commentary said. U.S. industries enjoying positive trade balances with China are high-value-added sectors, and China owns the world’s largest market for high-value-added industries, it added, taking the example of Apple, whose leadership would collapse if its business in China is stopped.

“Deglobalization will not bring factories back to the United States,” as the products of most U.S. corporate foreign affiliates are sold where they are produced, the report said.

“China is rapidly globalizing its industries by encouraging its higher-value-adding industries, such as power generation, construction equipment, and telecommunications systems, to supply overseas projects in the Belt and Road Initiative and to invest in foreign market operations,” it said.

“Deglobalization sounds good until you need to design a product in a competitive marketplace,” the report said, adding that globalization happens because it creates value and broadens a corporation’s capabilities. Enditem

Disclaimer: News Ghana is not responsible for the reportage or opinions of contributors published on the website.

Send your news stories to [email protected] and via WhatsApp on +1-508-812-0505 

Previous articleTrump campaign announces second-term agenda ahead of GOP convention
Next articleLatest count of confirmed COVID-19 cases worldwide at 0500 GMT, Aug. 24
Xinhua News Agency, Xinhuanet is an important central news service-oriented website, an important information organ of the central government, and an important platform for building up China's online international communication capacity. Established on November 7, 1997, as an online news provider of the Xinhua News Agency, it was officially named Xinhuanet on March 10, 2000 and began around-the-clock news release with leading online public opinion at home and setting a good image of China abroad as its main task.


Please enter your comment!
Please enter your name here