The Chinese don't design the product, they build with materials and specs supplied by the designer. The Chines try to reverse engineer other products and the result is sub par.
Who cares who designs it? You can't have an economy based on a design,
...you have to build that design. You have to first produce it, and sell it... something China excels at.
What domestic market? All those people employed by the foreign companies? What exactly are they going to do for money if they loose their job? The Chines can't even feed the "billions" of people.
You have a very Yankee-centric outlook my friend. The Chinese economy is not all based on cheap exports to the West. There is a growing, booming, upsurge in Chinese MULTI-millionaires. Forget an increasing middle class... the wealth in China is staggering, and they've done away with modesty. Conspicuous consumption is the name of the game over there, and there are many catching on fast. The nouveau riche in China aren't all making their millions on the west, they're making it within China itself. When the Yuan increases in value, ordinary everyday Chinese will also see a massive increase in their wealth & purchasing power, ...and let's not forget that the Central Gov't has been encouraging it's citizens to buy gold for years now. On top of that, the Chinese are prolific savers, saving on average 30% of their incomes vs. maybe 4 or 5% of North Americans. That is a nation that produces far more than it consumes, ...but also one with the capacity to consume all that it produces. Their economy is booming, and their leaders are sweing up trade deals to ensure they continue to have access to raw materials to continue the growth.
I do agree that America has lost its manufacturing sector, and that is a sad state of affairs, but the government make it cheaper for companies to produce product over seas.
Why is that? They had to have known the effect it would have, as well as the consequences.
We have yet to see them outsource or offshore their defense contractors though have we?
They will continue to pay $2,000 for a toilet seat because they don't want "the enemy" building the fighter jets, the very things they use to kill people in foreign lands, ...but they have no problems off-shoring or outsourcing the very things that keep Americans alive?
Any nation unable to feed itself, or provide the goods & services her country needs is screwed.
