It is time for the US tech sector to recognize the near and present national security threat China poses; to get on the right side of history. For the US to prevail against a centralized, Communist system, its tech sector will have to lead, proactively. Markets will reward this. The country needs it.
US industry is seeing the accumulated debts of decades of offshoring – and decades of offshoring to geopolitical adversaries – reach maturity. It’s time to adopt a new model. Instead of optimizing for the lowest costs, the US needs to start optimizing for resilience
The optimistic take is first, that Washington sits at the perfect inflection point to adjust economic policies that contributed to this imbalance – and, second, that early indications suggest the private sector may already be taking the lead, whether Washington adjusts or not.
What if, in addition to immediate, demand-side monetary policy quick fixes, Washington was to set about investing in production of critical inputs, manufacturing facilities, and improved logistics systems? It’s entirely possible, and necessary.
In its board rooms and on the ground, Amazon is deliberately adopting frameworks and investments designed to foster long-term competitiveness, even what that comes at the expense of quarterly returns or shareholder enthusiasm.