I have a friend in the veneer lumber business. He's been consulting in China for 10 years, helping them build and setup factories that produce the veneers at a fraction of what the US-based plants were doing it.
As is the case with so many industries, the US developed the technologies, built the equipment, and perfected the processes. Then they shipped it all to China for cheaper labor and less burdensome regulations.
I spoke with him a couple of months ago, asking how things were going in China.
He said, "You'd have to ask someone else. We're building plants in other places now. Places that are eager to get the business and with governments more friendly to the US."
Look at the ratio drop just between January and March of this year.
China can't win a trade war at 3/1, and they have no chance at 6/1.
Let them bleed!
As is the case with so many industries, the US developed the technologies, built the equipment, and perfected the processes. Then they shipped it all to China for cheaper labor and less burdensome regulations.
I spoke with him a couple of months ago, asking how things were going in China.
He said, "You'd have to ask someone else. We're building plants in other places now. Places that are eager to get the business and with governments more friendly to the US."
Look at the ratio drop just between January and March of this year.
China can't win a trade war at 3/1, and they have no chance at 6/1.
Let them bleed!