Effective and Personal Management Solutions

Managing Director Insights

Sticky Situation


The US is an advanced society, including a firm position against human rights violations.

It’s one of the reasons, why there is so much government intervention in the advanced manufacturing sector.

Just recently, BMW, Jaguar Land Rover, and Volkswagen have sourced parts made by forced labor in China.

It is clear that BMW, Jaguar Land Rover, and Volkswagen and their suppliers did not do this intentionally. The OEMs though have ultimate ownership of their supply chains and now they’ll face scrutiny with the US Government.


Just recently also, the White House implemented a huge tariff on Chinese imported vehicles. BY, a leading electric vehicle maker, pays workers between $8.000 and $11,000 USD per year with overtime at their manufacturing plants in China and their recent attempt to eliminate overtime would have the workers paid $5,000 USD per year.

The goal of the US Government here is to protect the US manufacturing market. And this type of disparity in wages of workers is particularly glaring because of the recent labor wins by the UAW.


The US does overall welcome overseas investment into the US market. Many Chinese companies have significant stakes in the US market and do a good job providing technology, workers, and opportunities that are needed here.

But the US Market is not a free, capitalistic economy. We have elements of capitalism and also elements of government intervention, which makes us an interventionist economy.

So if overseas investors want to invest, they have to play by the US rules.

And sometimes, this means the higher price of goods for consumers in the US Market. Not easy to swallow, especially with the rises in inflation.

There are no easy answers when it comes to being part of a global economy.

But it is hard to argue, if the intervention means protecting the US Manufacturing Base and taking a stand for human rights.

54-81, sunshine.

Make it a great day, everyone!

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SCN – Search Consulting Network

Jim Guerrera

Author Info

Jim Guerrera

Jim Guerrera, Managing Director, founded SCN in 2000. Jim is primarily responsible for the development of the leaders at SCN, strategic planning, the hiring and development of company associates, culture leadership, core value leadership, sales le...

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