The industrial shortage is not limited to chips anymore. Hundreds of large companies are stopping production at different points in the global chain. The EU and Japan, fearful that U.S. harassment of Chinese products will affect their international investments, are pushing for accelerated repatriation of low-profit but high-impact industries. However, the new Covid wave and the floods in Germany and China have shown that industrial destocking and its aftermath for workers -temporary layoffs and even more precariousness…-are not a passing phenomenon.
Tag: international division of labor
Today’s news alone makes it clear that the EU is coming apart at the seams in the East… both among its members and with those aspiring countries in the Western Balkans. Tensions from which China, Turkey and Russia are far from being alien. But France and Germany are looking for more than just public works markets. They seek to create a low-wage region in order to shorten their production chains, increase margins and become less dependent on Asia.
The collapse of the “just in time” chains during the Chinese confinement, the chips and the first global crisis of industrial shortages in “peacetime” and the interruption of the Suez Canal, signal and feed the new international division of labor. It will be paid for by the workers and it prepares the war.