Globalization is out of fashion in politics, and there’s no near-term sign the practice will rise to its pre-COVID, pre-populist level again.
But do global businesses feel the same way? Are they prepared, or even willing, to shorten their supply lines, reshore their operations, and root for the home team? Conventional wisdom says “no.”
But there’s a case being made that globalization is already dead….we just haven’t noticed it. As Kevin Xu writes about a recent speech Taiwan Semiconductor founder Morris Chang. Xu notes two critical items in Chang’s remarks:
The most powerful, and somewhat uncomfortable, part of Chang’s speech is his declaration that:
“Globalization is almost dead. Free trade is almost dead. And a lot of people still wish they would come back, but I really don’t think they will be back for a while.”
That means costs will rise – not just for chips, but the products those chips go into. In other words, just about everything. But there’s something else to note:
“Offshoring” is out of fashion, [Chang said] and “onshoring” and “friendshoring” is the new black. Any wishful thinking that globalization will continue in its previous form is naive.
The next phase, then, might appease some populists who want the jobs and wealth back in this country that was formerly distributed to less expensive areas of the world. Or it could frustrate them even more:
During the summit [this week between the U.S. Canada, and Mexico], the Mexican leader also plans to push for strengthening regional supply chains. “We’re going to propose a plan to substitute imports and produce in the Americas—first in North America but in the medium term in all of the Americas—what we consume,” Mr. López Obrador said. “This is going to mean investments and many jobs.”
Mr. Trudeau, meanwhile, will use the summit to pitch Canada as a place for investments in the electric-vehicle supply chain, said one person who is close to the prime minister’s office.
The prime minister wants to bolster the Canadian manufacturing sector’s attempts to build a mining, electric-vehicle and battery-manufacturing industry that is integrated with that of the U.S.
Globalization is “almost dead.” But as “Princess Bride” fans know, that means it’s also still slightly alive.
And “slightly” alive is good enough.
The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.
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if anybody thinks trump will save them from the globalists, they’ll be greatly disappointed. He’s all talk but there’s so much he could have done but didn’t when he had the chance (and Congress stopping him is not a reasonable excuse)
and no where at least in the story was it said the minerals and Rare earth’s needed to make such batteries. Come from China. The real facts not said. It’s way to expensive to manufacture anything in the USA and Canada. The more layers added of hurtles the democrats have created is why companies don’t want to return to the USA. But a photo op is all this was. Let’s not let this one go the president of Mexico said Biden is the very last president of America. .