The widgets you refer to are only that, but critical to some companies' competitiveness
Yes, but political risk is the overriding issue here. There is no reason that all of these components need to be built in China. The only reason they are is in order to curry favor with the goverment, make use of cheap labor, and open our access to their potentially huge market.
But if the risk grows too high, then US businesses may find it conducive to move elsewhere, such as Latin America.
Bottom line is that China is still governed by a totalitarian system of communist party aristocrats, who claim to be implementing capitalist reforms. If you're not a member of the party, you have little influence, except with the money and favors you can direct their way. And I've yet to see a totalitarian system make the peaceful transition to democracy. And playing the nationism card will only go so far when the system is inherently inefficent, corrupt, and considered politically risky.
Personally, I think China is trying to escalate this far beyond is required. I just saw that the pilot of the second plane was interviewed and claiming that the US plane rammed the fighter with its wing. This just does make any sense given the damage to the plane's nosecone and it would be indicative that the US or Taiwan will likely reveal the actual taped transcripts of the whole incident (currently classified) as they did with the KAL 007 incident. These tapes will provide irrefutable proof that the Chinese pilot was acting recklessly and crowding the slower, lumbering US plane. This will put the Chinese government in a position of either claiming the tapes to be an outright fabrication, or losing even more face by admitting what logic suggests is obvious.
The chinese party bosses need to back off and just let this thing cool down or they are going to create a situations where it will spiral out of control.
And the US will not apologize for flying in international waters and being harassed. It would be tantamount to the victim of a rape admitting that she was "asking for it" by walking down a dark alley, and being charged with murder because the mugger accidently shot himself while trying to harass her.
I think the analogy is pertinent.
Regards,
Ron |
