Reshoring: China vs. The Robots

There’s a bit of a disconnect between international relations theory people and economic theory people. It is rare that a single person finds himself facile with both disciplines and this tends to introduce blind spots in thinking. One of the biggest blind spots concerns the future role of manufacturing in geopolitics. Many people believe that cheap wages in places like China will ensure a strong US-China trading relationship and reduce the chance of future security competition. They think China will rise peacefully. These people are missing an important economic trend–the decreasing relevancy of the US-China wage gap and the inevitability of “reshoring”, the relocation of manufacturing back into the rich countries from whence it came.

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