Abacus | If it’s goodbye to Chinese goods, then it’s hello to runaway inflation

Consumers in developed economies like the US, Britain and Australia say they’re willing to pay more to lessen reliance on China

The true cost of that stance may come as a surprise

Reading Time:5 minutes

Trucks on the outskirts of Shanghai, China. Photo: Bloomberg

Published: 7:00am, 13 Jul 2020Updated: 7:15am, 13 Jul 2020

When you look at buying or renting a house in Britain, Europe or the United States, where properties are often significantly older than in Asia, you might notice how little storage space there is. People simply didn’t have so much stuff 50 or more years ago. Manufactured goods were generally expensive, so when you bought something like a new suit, a television set or a washing machine, you expected it to last. My parents, and certainly not my grandparents, had no concept of cheap, mass-produced goods and “fast fashion” that only survives a few washes.

By modern standards, this sounds so old-fashioned. Our clothes and shoes are cheap, smart TVs are being replaced every three to five years as ads and software updates gum up the works. I change my smartphone every couple of years, and consider it a victory if my white goods last six months longer than their warranty. I also have a drawer full of cheap mains power adaptors that I kept – just in case they prove useful – from electronic goods long since recycled. I have too much stuff!

LEARNING LESSONS AND REDUCING JUNK

Many consumers have been reconsidering the amount of stuff they buy, and their dependence on cheap imported goods, which is a detriment to domestic economies as well as the environment. Now might be the time to make a change.

However, if we stop importing everything from abroad and go back to manufacturing locally, we must be ready to pay more for everything as the cost of production will rise.

• Factories that do not currently exist at home will need to be set up;

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.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;} Consumers in developed economies like the US, Britain and Australia say they’re willing to pay more to lessen reliance on China The true cost of that stance may come as a surprise

Consumers in developed economies like the US, Britain and Australia say they’re willing to pay more to lessen reliance on China

The true cost of that stance may come as a surprise