{"id":3716,"date":"2026-04-17T10:33:06","date_gmt":"2026-04-17T14:33:06","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/?p=3716"},"modified":"2026-04-17T10:28:54","modified_gmt":"2026-04-17T14:28:54","slug":"china-vs-west-reindustrialization-investing","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/china-vs-west-reindustrialization-investing\/","title":{"rendered":"Good News! The China vs West Investing Shift is Creating New Opportunities"},"content":{"rendered":"

\"Honda<\/p>\n

China vs West: Is the Competitive Gap Real?<\/span><\/h2>\n

Earlier this year, Honda’s CEO Toshihiro Mibe walked through a fully automated Chinese EV supplier factory, (no human workers on the floor) and reportedly said, “We have no chance against this.”<\/p>\n

In March, the Jaecoo 7, a Chinese SUV made by a company unknown in Britain just 18 months earlier, became the best-selling car there, outselling the runner-up by 70%. France’s President Emmanuel Macron called the flood of Chinese goods a “question of life or death” for European manufacturing.<\/p>\n

\"Jaecoo<\/p>\n

There’s a pervasive sense of futility in the West regarding China. You’ve probably heard it too: “China is playing chess while we’re playing checkers.” I had a good chuckle about this cover from The Economist\u2014but couldn’t help wondering: isn’t it a little too early to tell?<\/p>\n

\"Cover<\/p>\n

The Subsidization Machine Behind China’s Manufacturing Rise<\/strong><\/span><\/h2>\n

Last week, the Financial Times published “China Shock 2.0: the flood of high-tech goods that will change the world.” It’s a devastating read. They profiled a Chinese sensor maker whose prices fell 95% in five years. Competitors sustained by government subsidies sell below cost and refuse to exit. “I know the costs,” one founder said. “Some of their prices don’t make commercial sense.” Indeed, unless the goal was never to compete with Western manufacturers but to destroy them\u2014source.<\/a><\/p>\n

Honda’s CEO wasn’t witnessing Chinese superiority. He was witnessing what happens when a state subsidizes its manufacturers at three to nine times the rate of ours (per the OECD), undervalues its currency by 16% (per the IMF), and sustains money-losing companies with state capital so they never exit the market. No Western manufacturer, no matter how efficient, can compete on these terms. The playing field isn’t tilted. It doesn’t exist.<\/p>\n

Why China’s Economy Depends on Western Demand<\/span><\/h2>\n

Here’s the irony: China’s rise requires our willing participation. Without access to Western markets, technology, and capital, the whole machine stalls. What China doesn’t want us to focus on is the fact that it must export\u2014because domestic demand is collapsing. Behind that factory floor lies an economy in deflationary crisis: 80 million unsold homes, a quarter of listed companies unprofitable, household spending below 40% of GDP. The world isn’t their market; it’s their life support system. We are not being outcompeted. We are choosing to lose.<\/p>\n

Combining Honda’s CEO and the French president: this is an existential risk to Western manufacturing, literally “life or death.” So how do we explain this poll?<\/p>\n

\"poll<\/p>\n

Source<\/a><\/p>\n

Three Signals That the Global Order is Shifting<\/strong><\/span><\/h2>\n

A Bloomberg-Nanos poll found that 55% of Canadians believe the United States poses the greatest threat to Canada’s security\u2014more than China, Russia, and Iran combined. Canadians have legitimate grievances with America, and particularly with its leader. That said, the past six weeks should settle the question of who our real adversary is:<\/p>\n