The Wall Street Journal is reporting that U.S. automakers are seeking a workaround to avoid increased expenses resulting from President Donald Trump’s controversial tariff policy: relocating manufacturing to China.
“Four major automakers are racing to find workarounds to China’s stranglehold on rare-earth magnets, which they fear could force them to shut down some car production within weeks,” the Journal reports. “Several traditional and electric-vehicle makers—and their suppliers—are considering shifting some auto-parts manufacturing to China to avoid looming factory shutdowns, people familiar with the situation said.”
Putin supported Trump with that view. I think it’s wrong to view Trump as Putin’s puppet. Rather, Trump is an agent chaos, and Putin hoped to use that chaos to put Russia on a better footing.
Problem is that Russia can’t do it. They’ve been running on the fumes of a dead superpower for over 30 years. They can’t build their own fighter jets, bombers, tanks, or boats bigger than a destroyer. Not at the scale they need for such a large mass of land. They’ve got oil and natural gas, but everyone is finding the exits on that.
China will step right into the void left by the collapse of Pax Americana. Putin is just handing it to them and doesn’t realize it.