Australia lost both in the 70s and 80s, and we blame high labour costs and cheap international trade. But those apply equally to developed countries that retained those industries. Some people tell me it’s because those countries focus on quality outputs, but China and Taiwan and Thailand seem to make a mockery of that.
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As an example:
German heavy industry primarily supplies the common european market, so taxes are not an Issue.
There the raw materials are made into high quality machines and commodities, which are desired even in far away markets.
Take away these top level producers and the whole system crumbles.
Do you know where chinese and taiwanese factories get a lot of their high precicion machines? Europe.
This is however slowly changing, and a big concern for western lawmakers is keeping know-how from falling into foreign hands.
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