There are a couple of big words during the press conference, and one of them is supply-chain that will be structured within the following conditions or pre-req:
- The supply chain will be built within the bloc member countries.
- It will be developed based on the Ricardian concept of free-trade.
Contrary to what has happened in the past, in this new-world partnerships, the so called supply chain no longer is based on low-labor wages, but to membership. Learning from the past, country like China has the low labor cost, but the country philosophy no longer fit well with the West. In other words, the West is hopeful that after the Chinese government under Deng Xio Ping opened the door to the Western countries, the Chinese government will be more opened. It did, until after the recent development that showed otherwise.
Under the new partnership, the democratic bloc will work within its members, and economic prosperity will be spread among them only. The real example of such a trade policy is in placed by the so-called “country of preference”. Consequently, economic growth will shift tremendously from China to other democratic countries. The big holes left by China can be filled pretty fast by other countries that have the same potentials where their population resembled closely that of China’s. In particular, from the countries in Asia.
What does it means for China? It can shift its trade partnership not only among its bloc countries, but also to others so-called non-alliance countries. What does it mean for the US? Under this new development, the US has to work hard to improve its education system. It has the resource to do so–what it lack however, is the coherent partnerships among the stakeholders. In particular, among parents, students, school administrators, the executive branch as well as the lawmakers in the Hill. Each element needs to understand what are its unique roles to make this to happen. For example, if one plan to prepare a hamburger for dinner–she or he should have the other necessary ingredients. Having the bunch alone will not make a hamburger. Likewise, having the beef patty alone without the bunch will not make a hamburger either. It is a join-effort, and no one can do it alone. Not even the executive branch and the example for it is pretty clear on the case of student loans forgiveness initiative. The plan is in limbo because it got sued from many parties. The competitor-country-bloc know exactly this play book and they will make every efforts in their disposal to fail the US education system.