Saturday, July 12, 2025

Cheap Chinese Electronics 7-12-25

US electronics manufacturers started off-shoring to China in the. This trend picked up speed and became more prevalent in the early 2000s. The movement of factories to China is thought to have concluded around 2005.  

China offered a 50% discount on circuit boards and my electronics consulting customers were considering sending their board manufacturing to China. I told them that during their first year, they would have to test, reject and return half of the Chinese made circuit boards and double their number of trips to China. I warned that they would also give away their intellectual property rights as soon as Chinese Engineers modified their designs to adjust for annual obsolete parts replacements. I was correct. The learning curve took a year.

Flat Screen TVs began to appear in the 2000s with prices in the $1000 range. The Chinese made Roku TVs typically last between 5 and 7 years. They were marketed in the US using the Westinghouse name.

Samsung TVs are made by Samsung Electronics in South Korea. Samsung TVs are generally expected to last between 7 and 10 years,

While Sony is a Japanese company and maintains its headquarters in Tokyo, Sony Bravia flat screen smart TVs are not primarily manufactured in Japan. Sony produces its TVs in various locations around the world, including plants in Mexico, Slovakia, and others. While some components, like processing, may still be developed in Japan, the actual assembly of the TVs for different regions occurs elsewhere. 

https://www.google.com/search?q=does+japan+make+sony+flat+screen+smart+tvs

LG Electronics manufactures LG flat screen TVs, including the 2025 models. LG Electronics is a part of LG Corporation, which is a large South Korean conglomerate. Specifically, LG Display is responsible for producing the

While there's no single brand universally agreed to last the longest, Sony and LG are often cited as top contenders for longevity, with Samsung also considered a reliable option, especially their higher-end models.

https://www.google.com/search?q=who+makes+lg+flat+screen+tvs+2025

Our old and heavy 27” cathode ray tube TVs lasted for 20 years.  Flat Screen TVs are lighter and bigger and need to raise their longevity from 10 to 20 years while holding their cost to well under the $500 to $1000 range.

US Manufacturing in China

US President Richard Nixon visited China from February 21 to February 28, 1972, becoming the first US president to visit mainland China while in office. This historic visit ended 25 years of no official diplomatic ties between the United States and the People's Republic of China. 

China began manufacturing for US companies in the late 1970s and early 1980s, following China's economic reforms and the normalization of U.S.-China relations. The US granted China "Most Favored Nation" (MFN) status in the 1980s, which further encouraged trade by reducing tariffs. This period saw the initial stages of a shift in the global manufacturing landscape, with American companies increasingly outsourcing production to China due to lower labor costs and other economic factors. 

While US manufacturing in China is often associated with the late 1980s and 1990s, the shift towards outsourcing to China began in the late 1970s and accelerated in the 1980s. Initially, this involved simpler products like consumer electronics and appliances. The trend was driven by factors like lower labor costs and reduced manufacturing overheads in China, leading to increased profits for US companies. Here's a more detailed breakdown:

Early 1980s: The shift to China started with lower-cost production of items like consumer electronics and apparel. 

Late 1980s: The trend accelerated as companies realized the cost advantages of manufacturing in China. 

1990s: Outsourcing to China became more widespread, impacting various industries. 

·       Factors driving the shift:

·       Lower Labor Costs: Wages in China were significantly lower than in the US. 

·       Reduced Manufacturing Costs: Overheads like factory costs and regulations were also lower in China. 

·       Increased Profitability: US companies could lower production costs and increase profits by manufacturing in China. 

·       Impact on US Manufacturing:

·       Job Losses: Many US manufacturing jobs were lost as production shifted overseas. 

·       Deindustrialization: Some US cities and towns that relied on manufacturing experienced economic decline. 

·       Rise of China's Manufacturing Sector: China became known as the "factory of the world".

US manufacturing began in China in 1980

While US-China trade relations improved in the late 1970s, leading to increased manufacturing in China, the substantial relocation of US manufacturing to China didn't begin in a significant way until the mid-to-late 1980s. 

Here's a breakdown of the timeline:

·       Late 1970s: Trade relations resumed and improved, resulting in some increased manufacturing in China, but primarily focused on exporting goods to the US.

·       1980s: China established "special economic zones" that encouraged US textile manufacturers to build factories there. Companies like Nike began outsourcing production to mainland China around 1980. However, the active and widespread government-supported movement of US manufacturing overseas began in the late 1980s.

·       1990s: The shift of manufacturing to China accelerated as more and more factories relocated there.

·       Early 2000s: China became a major manufacturing hub, attracting a wide range of industries including electronics and higher-end products, according to ITI Manufacturing.

·       2010s: China's manufacturing sector surpassed that of the United States in terms of its contribution to global manufacturing, says the Federal Reserve Bank of St. Louis

In summary, while some outsourcing began earlier, the large-scale shift of US manufacturing to China primarily occurred from the mid-1980s to the early 2000s. This was driven by factors such as: 

·       Cost reductions: Primarily lower labor costs, but also lower costs of materials, tools, and production engineering.

·       Operational advantages: Companies could benefit from established infrastructure and a large labor force.

·       Focus on core competencies: Outsourcing allowed US companies to concentrate on areas like marketing, sales, and design. 

However, it's also important to note that the relocation of manufacturing had significant consequences for the US economy, including job losses and the decline of once-thriving manufacturing towns. 

https://www.google.com/search?q=us+manufacturing+began+in+china+in+1980

In 2000, US electronics companies fell for the “globalism scam”. US Electronics Companies were having trouble increasing profits to boost their stock prices. Foreign countries had been dumping goods in the US since the 1980s. China was offering to manufacture electronics at much lower costs. NAFTA took effect in 1994, off-shoring manufacturing to Mexico and Canada. In 2000, Bush had no objections to off-shoring. US manufacturing had solved the quality problems and could implement these changes more easily in foreign countries and could abandon their “union dominated” manufacturing plants. They were also able to dodge US environmental excesses. Foreign countries offered “no environmental regulations.

We were told that we were entering the “Information Age” and the information was not good for the US economy. We were decimating our US middle class and making us dependent on China and other countries to produce 90% of our manufactured products. The US Trade Deficit would reach record levels and US household incomes would reach record lows.

Trump’s Intervention

In 2016, Trump forcefully exposed the scam in the first Republican Primary Debate. All other Republican Candidates were stunned and had no excuses for their failures.

Trump’s early support came from the Tea Party. He won the Republican Primary. Trump attracted large crowds to his “rallies”. Blue Colar voters were the next group to support Trump. They had endured 8 years of the Obama Administration from 2009 to 2016. Manufacturing jobs had been decimated and household income reached all time lows.

Trump was elected President, delivered tax cuts in 2017 and began to restore the US economy.

In 2020, Biden was elected and the US economy took another dive. Biden opened the borders, rejoined the Climate Scam and restored Iran’s economy to strengthen Islamic Terror Groups. Biden projected weakness with his disastrous exit from Afghanistan and wars broke out in Ukraine and Israel. Iran backed Islamic terror groups closed the Suez Canal.

In 2024, Trump was reelected to restore the economy, close the border and drain the swamp. His Agenda for restoring the US economy includes re-shoring manufacturing, upgrading federal data and defense capabilities and using Tariffs to make better Trade Deals. His strategies will allow the US to lower the National Debt. Trump has established a strong bench of Republican talent in his Cabinet, who will be able to continue to implement the Trump Agenda beyond 2028.

Norb Leahy, Dunwoody GA Tea Party Leader

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