China may regret its role in the spread of the virus

The days of the U.S. putting all of its manufacturing eggs in one basket may be over. The pandemic has allowed us to see the danger of relying on China for too much and changes are coming.

Analyst Fraser Howie told CNBC relations with China were already strained.

"There was already a move away from China, to some extent, with the trade war and I think that's only going to increase."

Howie says it may be time for industries to spend more money on workers here in the U.S.

"I think governments will be under pressure in a number of industries simply to build in more redundancy, as opposed to the just-in-time kinds of tight supply chains that we've had."

A report from Rice says the U.S. needs to do a better job of competing with China for the rare earth metals that are used to make things like iPhones.

Howie says companies like Apple may be willing to move factories back home after this disaster.

"China was seen as a one-stop-shop for much of your manufacturing and supply chain and that's obviously going to change. But there's no way China's going to be ignored; it's going to remain the world's second largest economy with a huge consumer base but it's clearly changing from what it's been over the past two decades."

If there was any doubt, the Chinese Communist Party has now proven it can't be trusted to tell the truth about things like this and the cheap labor may not be saving as much money as we think.


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