Ekins and McGee returned to the United States happily. They signed cooperation agreements with dozens of small businesses in Kinnan, agreeing that they would accept orders in the United States and then hand them over to the companies in Kinnan for completion. Kinnan’s enterprises sent the finished products to the Imai factory, but they had to be written into blanks when customs clearance. The Imai factory will perform some symbolic processing of these products and then sell them to large American companies such as Hayfie. This can be regarded as a product made in the United States.

Ekins and the others calculated that even with a 50% import tariff, purchasing spare parts from Jinnan is still cheaper than manufacturing in the United States. This is not only because China's labor costs are lower than those in the United States, but also because of the scale effect caused by industrial agglomeration.

In China, industries in many regions have formed industrial clusters, such as Jinnan's metal processing industry, forming a one-stop production system such as smelting, casting and forging, machining, heat treatment, flaw detection and testing, packaging and transportation. Such a production system can make the most use of personnel and equipment, and the cost saved is extremely considerable.

In the United States, there is only the machinery company, Yimai Factory, in the entire town of Bar. It either equips itself with a complete set of production equipment and workers, and keeps them idle most of the time, or it has to go dozens or even hundreds of kilometers away to seek production supporting facilities. The logistics costs alone are unbearable.

It’s not that Americans do not understand the principle of industrial agglomeration. In fact, during the period of prosperity of the United States, Pittsburgh, Detroit and other places had formed a complete and huge industrial system, especially during World War II and a period of time after the war, American manufacturing almost supported the demand of the whole world.

However, with the development of the economy, labor costs in the United States and Europe continue to rise, and manufacturing has thus shifted to areas with lower labor costs. First, Japan, then the "Four Asian Tigers", and then China, which have gradually become the destination for manufacturing to move out. Compared with China, Japan and the Four Asian Tigers are both small economies, and even if they are fully powered, they cannot meet the needs of the whole world. However, China is a big country with a population of 1.3 billion. At its peak, the industrial labor force reached 200 million. The truth of 1+1>2 is particularly obvious in the industrial field.

The scale of the clothing manufacturing industry can support the manufacturing and repair of sewing machines; the more sewing machines produce, the machine tool industry can support the machine tool industry. One industry drives another industry, and the development of the latter industry does not need to be at the cost of weakening the previous industry, because...there are some labor!

In this way, China's industry gradually formed hundreds of industrial agglomerations across the country from point to line and then line to surface. Often, a certain county or even a certain town can monopolize a certain product in the global market, with output reaching more than 80% of the world. Industrial agglomeration means that the local area will form a complete supporting system related to this industry. Any investor who wants to enter this field can stand at the intersection of the street with his money bag and shout, and workers, technicians, equipment, raw materials, drawings and even sales channels can be collected in an instant. You just need to snap your fingers and a factory can start construction.

At this time, how can other countries and regions compete with a county or even a town in China?

The saying that big but not strong is actually invented by a sour literati who do not understand industry. In this world, big means strong, and the principle that wolves eat tigers is not difficult to understand.

It was precisely because Ekins and McGee knew this truth that they gave up their desire to compete with the small businesses in Jinnan and became second-trafficking dealers. Under the current situation, in order not to offend Map, large companies such as Haifei need to symbolically reduce imports of accessories from China and instead purchase them from the United States. However, the United States cannot form such a supporting system, which requires small businesses like Ekins and others to be setters.

The Yimai factory imported "blanks" from China, processed them into the final spare parts and sold them to Haifei. In this way, from Haifei's books, the "domesticization rate" of the product can be greatly improved, and Map can claim that his American great strategy has achieved brilliant results. As for these "made in the United States" spare parts are actually produced in a small business in Jinnan, Map can pretend not to see it. People who are politicians are very clear about what things need to be known and what things need to be pretended not to be known.

"Xiaochen, in the past three months, the Sino-US trade surplus has not only not narrowed, but has also expanded further. This is really a bit dramatic."

In Feng Xiaochen's office, Xu Zhenbo, director of the Ministry of Commerce, reported with a smile.

Feng Xiaochen also smiled and said, "What is the specific reason? Have you done an analysis?"

Xu Zhenbo nodded and said, "We have done customs statistics. Since Map announced the hike of tariffs, the quantity of various commodities imported from China has not decreased significantly, and the import of some daily consumer goods has even increased. It is understood that some American importers are worried that the Mp administration will further increase taxes in the future, so they plan ahead and prepare for stocks in advance. This is the main reason for their abnormal increase in imports."

Feng Xiaochen said: "Mep has always claimed that the United States suffered a great loss in Sino-US trade. In fact, the United States imports goods from China not out of charity, but because the United States itself needs these goods, its people need cheap daily consumer goods, and its companies need Chinese raw materials and spare parts, which are all rigid demand. Mep does not think about how to increase exports to China, but thinks to limit imports from China. This is going against the will of heaven. How can it be successful?"

"The current approach of the United States is to increase its own production, and to seek to use other countries to replace China. The former has shown some signs. According to data, the U.S. industrial production index hit the highest growth rate in the past five years in the last quarter, and the unemployment rate also dropped significantly, which shows that U.S. production is recovering." Xu Zhenbo said.

Feng Xiaochen nodded: "It's not surprising. The United States is also a big country after all. We can't always rely on finance to be a parasite, right? We should be happy for the recovery of the United States' industrial development. If necessary, we can help them, for example, provide them with some industrial equipment."

"Puff!" Xu Zhenbo burst into laughter. Secretary-General Feng's words were really domineering. He really deserved to be the general manager of the equipment company for more than ten years. He has full confidence in Chinese equipment.

At the same time, in the stamping workshop of a Detroit automobile factory, Map was standing on a temporary platform, spitting at a group of reporters and workers below:

"Everyone, I can proudly tell you that in the past quarter, the U.S. industrial production index rose by 2.1% month-on-month, which is an amazing result, which shows that our manufacturing industry has achieved a strong rebound. Just now, Mr. Bigel, the director of this factory, told me that last month they built a total of 34,000 cars, 80% of the components were from the United States and were made by great American workers."

"Wow!"

There was a thunderous applause from the audience, and there were naturally the child care arranged by Map's aides in advance, and the melon-eating crowds who were motivated by the atmosphere on the scene. In fact, the emotions of the masses were the easiest to be guided. A few sensational words, a few gestures, and enough psychological hints could make them feel that the person standing on the top had a halo on his head, and was a great hero who could save them from dire straits.

"Mr. President, according to the data I have seen, although the government has significantly increased tariffs on imported goods from China, the US-China trade deficit has been shrinking in the past quarter, which has increased by US$4 billion from the previous quarter. Is this meant that our tax increase policy has not achieved the expected results?" A reporter asked an inappropriate question.

Map was elected with grassroots support. The American intellectual elites have complained about the reckless president, and many media also used it as a selling point to find Map's fault. Map was angry and scolded the American media for lies, which naturally further intensified his relationship with the media. Therefore, in every public event, media reporters attacked Map, which has become a routine.

"No, Mr. reporter, you're wrong!" Maple retorted without blinking. "You just saw the US-China trade deficit increased by $4 billion last quarter, and you didn't see that before that, the deficit would widen by more than $4 billion each quarter. That is to say, it was precisely because we raised tariffs on imports from China that we have successfully curbed the trend of widening deficits."

This is OK...

The reporters in the audience were all cold. I said that the first-order derivative is positive, and you told me that the second-order derivative is negative, so you won. This logic seems to be very powerful.

"So, Mr. President, will the government continue to maintain such high tariffs in the next step?" another reporter asked.

Map said flatly: "No!"

"No!" The reporters and corporate executives present were shocked. This was shocking news.

Unexpectedly, Map's next words would have thundered them all:

"I will double the current tax rate. Our goal is to prevent any Chinese product from entering the United States!"

Before he finished speaking, he felt something floating down from his head. He reached out to catch it and found that it was an American flag. The flag was originally temporarily stuck on the huge body stamper of the car behind him. I don’t know if it was not sticking it firmly or because it was blown by a fan in the workshop, the flag fell down.

"Huh!"

Everyone looked up along the trajectory of the national flag falling, and unexpectedly found that the place where the national flag was posted was the logo of the equipment manufacturer. Perhaps it was precisely to block the logo that the personnel at the scene put a national flag on it in one fell swoop.

That sign is exactly:

jier!
Chapter completed!