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The biggest threat to Chinese manufacturing is not India
but the trend of super automation initiated by AI robots.
In other words, automation will be automated.
All manufacturing ultimately consists of information + energy.
When automation reaches a certain level, and the cost of local manufacturing is lower than the cost of offshore manufacturing + transportation costs, the de-globalization of manufacturing will become irreversible.
30.7.2025
The advantages of Chinese manufacturing, such as being taken over by Indian and Vietnamese manufacturing, represent the biggest national crisis in 20 years. Once the manufacturing industry shifts, it is very difficult to bring it back. India has surpassed China and has become the largest source country for smartphones in the U.S. market: in the second quarter of 2025, 44% of smartphones imported to the U.S. will be made in India, 30% in Vietnam, and 25% in China. In comparison to the second quarter of 2024, when 61% were made in China, 24% in Vietnam, and only 13% in India. Therefore, the tariff negotiations between China and the U.S. must start from a broader perspective, as the unemployment of over a hundred million young people cannot be solved by merely shouting Marxism.
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