13 – April – 2020
Subject: Supply Chain Security in the Face of COVID19 crisis caused by China and why Manufacturing in the US, Europe, and Africa will represent a better world economy and why we do not need projects such as “ The Belt and Road Initiative “ of Chinese government which is a form of “ New Millenium Colonial System”
Attention: Senior Leadership in United States Government & European Community
“ We want to build, create and grow more products in our country using American labor, American goods, and American grit. When we purchase products made in the USA, the profits stay here, the revenue stays here, and the jobs -maybe most importantly of all – they stay right here in the USA “
Donald J. Trump, President of the United States of America
“ Let me say to all nations across the wider region, and the world: Do not accept foreign debt that could compromise your sovereignty, Protect your interests. Preserve your independence. And just like America, always put your country first. “
Mike Pence, Vice President of the United States of America
- Manufacturers in the US and Europe had established operations in China to benefit from cheap labor costs, lower taxation and light regulations.
- China became the production center for the whole world becoming a monopoly in various items which allowed it to grow its economy, GDP per Head and accumulate huge foreign currency reserves
- As a result, China started investing in technology ( mostly obtained by industry espionage ) and military while acquiring thousands of companies in the western world almost in all industries including entertainment, banking, mining, technology and started creating a footprint for its state-controlled “ Corporate China “
- This allowed China to infiltrate the western capital markets and governments and started increasing its influence in western established multilateral/supranational organizations such as WHO, Asian Development Bank, and many others.
- We have seen “ Pro-Chinese “ bureaucrats and politicians across the board almost in every government promoting China as a “ symbol of peace, prosperity and a rising global superpower “ whereby ironically China was just an imperial motived communist regime with a blend of dictatorship where its good and long-suffering people lacked any form of peace or freedom of any kind with minorities suffering under severe conditions imposed on them by CCP
- China started acquiring mineral reserves in 7 continents, mostly in Africa and started controlling a majority of world mining claims, rare earth metals. While controlling the much-needed reserves/claims to establish its global dominance, this was allowing China to have a deeper penetration into these countries' political and economic systems.
- China announced its ambitious “ The Belt and Road Initiative “ project ( NEW MILLENNIUM COLONIAL SYSTEM “ with trillions of Dollars budget ( obtained from exporting to US & Europe ) together with various initiatives such as Asian Infrastructure Investment Bank to establish its global dominance replacing western institutions with the help of western taxpayers funds.
- With the promise of this “ New Wealth “, unfortunately, Corporations and powerful business elite rode the wave investing further into China only to enrich this regime, ironically in a way to create their own end if China were to achieve its global dominance as no corporation or powerful business elite can survive under this tyranny if China achieves what they are helping for.
- China started deploying hundreds of billions of dollars ( Political Capital Deployment ) to emerging economies only create a debt trap and start making debt / Equity swaps to seize critical infrastructure to create military presences for its ultimate world domination
- Everything has been going perfectly only for the benefit of China as if an “ Invisible Hand “ (unlike Adam Smith’s version ) has been ensuring its ultimate success.
- COVID 19 pandemic has shown every one of us what kind of a dangerous and toxic system we have created altogether by empowering a regime such as CCP. Like a wake up to all, we have seen how China manipulated with critical medical supplies resulting in loss of lives with the utmost motivation of creating more profits for its economy to everyone’s surprise. It might be a surprise to us, however, it is a very normal practice for CCP considering their human rights track record and their practices to their own people.
Manufacturing in the US & Europe :
- There is a present need to revitalize manufacturing industries in the US & Europe as a top national security concern.
- We need to create contingency plans where we have “ National Critical Supply Bandwith “ for self-sustainability concerns in times of crisis that will include from simple manufacturing to most value-added industries.
- We need to focus on SME manufacturing to improve local supply chain by investing in digitalization with Industry 4.0 technologies to be implemented to stay competitive and avoid inflationary effects while encouraging major companies to have long term contracts with these SME’s for creating stabilized long term revenue streams to create a sustainable job market.
- The creation of such SMEs will enable larger firms to have access to a domestic supplier base improving speed to market and product quality encouraging tapping into local supply markets instead of going overseas dealing with supplier disruptions caused by associated political / currency-related risks. COVID 19 medical supplies crisis was an example that might be repeated in the future related to a crisis that we do no foresee now.
- Larger firms prefer to focus only on certain markets/segments for capitalizing on scale efficiencies which creates an opportunity for SMEs to tap into niche markets where they can provide a difference with better and closer customer relationship management.
- “ Manufacturing First “ plans need to be implemented as a national security priority.
Manufacturing in Africa for Supply Security
- More than % 70 of the raw materials are shipped to China, mostly from Africa to feed the world’s manufacturing hub to export these finished products back to western markets.
- In order to bring those products more efficiently to markets, China created this “ The Belt and Road Initiative”.
- In essence, raw materials are extracted from Africa, shipped to China to be processed there and brought back to western markets which are only a waste of resources and time and no BRI or similar initiative can justify this illogical process that shapes our economy today
- Africa, as the base of raw materials, is in close proximity with dynamic and young populations has the potential to replace China as the manufacturing Hub.
- When African Nations give concessions of their raw materials to China, they need to understand that they are transferring their future generations’ wealth, potential and prosperity to their competitor
- On the other hand, African States need investment for Infrastructure and Industries which will represent lucrative opportunities for western institutional capital addressing their long term yield requirements to sustain the pension systems.
- Investments in Africa will uplift the economies, enrich the nations while growing the middle class that will be a market for western products and services as well as stopping the tragedy of refugees coming to Europe
- Many initiatives such as “ Invest-Manufacture-Export” can be implemented whereby investments can be structured for African industries that will manufacture for the West which will create hard currency export revenues that will repay the investments made and help create better local economies linking local capital markets to Institutional Capital in the West
- Improvements in the local economies will help foster democracy and regime stabilities for these African Countries and this will create a better and unified world with fewer tragedies seen.
- The US and Europe need to collaborate more closely to create the necessary investment capital for Africa. We have seen initiatives such as OPIC ( DFC ) signing with FinDev Canada and European Development Finance Institutions ( EDFI ) which has good potential to act as a catalyst for institutional capital to be mobilized for Africa and we need to increase these efforts as bureaucracy and political motivations have not produced enough results from other multilateral/supranational agencies and institutions.
- We need to help African Nations embrace their future and possess their own resources/riches for a better continent while diversifying our supply base/security creating more unity among us due to common religions and intertwined cultures
- Ironically, the problem that we see in supply security today which stemmed from China getting raw materials from Africa can also be solved by Africa if we prepare and implement a more viable and rational global industrial plan with a focus on Africa.
- Lastly, as the continent has various security threats including terrorist organizations, we will also need to ensure we have increased military collaboration with these African Nations to stabilize the continent. NATO can play a critical role here as the NATO & African Union partnership that started in 2005 can be enhanced with a larger scope creating a more intense and closer collaboration.
Africa COVID 19 problem
- The Covid19 crisis needs to be the priority to start helping Africa as it lacks critical resources such as hospitals, qualified biological laboratories, ICU Units, supplies, paramedics, doctors, and medicines to combat this crisis.
- Certain countries in Africa are so fragile that it will be a miracle to control the spread of the virüs and stop the ever-increasing death toll once this epidemic reaches the levels we see in Europe and the US.
- However although we will succeed to stop the spread very soon and neutralize the effects of this, African Nations won't have the chance to do so due to lack of financial resources
- Every country is busy dealing with this issue and fighting the “ Hidden Enemy”. However, even though this is the case, we need to create resources and attention to the upcoming human tragedy in the making. This needs urgent attention and action.
- By helping Africa now, we are helping ourselves as it is the only continent to replace China allowing us to create a better future for us and humanity in general.
In closing, we would like to emphasize that although we might be facing a severe crisis now, we have full confidence in winning this war with the “ Hidden Enemy “ if the US and Europe will demonstrate more unity with coordinated actions creating even a more solid partnership moving forward.
H. Burak Erten Angelo Rossi