I spent a three weeks over in china (mid june to early july)..it was interesting. I toured a motorcycle factory, a small appliance maker (if it's a small appliance and says made in china then it was made there), an italian washing machine factory, a jade factory and a silk factory...
Labor in china is cheap...actually many things are. I got a bottle of brandy for $1.50, our group got a full body massage for $9, chances are you could get a three or four course meal for a dozen people for $9 etc.
They rig their currency to a point on this and that's how things are cheap. However because it's rigged it means it effects other countries. It also is getting more expensive with the costs of energy going up.
OK so how does this deal with detroit...well I was reading some housing article and the guy just spent a day there but it kinda stuck with me.
Detroit has access to in effect the largest body of freshwater maybe in the world. In China 70% of the water you cannot drink. Other prices were a bit odd to see...a apartment in hong kong is lower than boston...
If the place has cheap housing, clean water and somewhat of some standards (there is no osha, epa, dol, dot in china...I saw tractor trailers driving on the side walk, four people riding on one motorcycle, electricity was iffy as was internet access etc)
I'm not saying that autos would make a huge comeback but if oil KEEPS going up it's going to be obvious we have to make at least some things back home.
Water might not sound like a bit deal at first but compound that for a moment. Some of the fastest growth in the USA has been in the south west..nevada, arizona and new mexico. But now that's over. If they can't grow food it means food has to be imported from further away and that means inflation.
I'm not advocating a repeal of a whole ton of legislation or protections but think about this also...there's no health plan in that country either...but oddly enough walmart just unionized!
Wal-Mart to Allow Unions in China
So what could they do with clean cheap water...here's an idea
1) ethanol from switchgrass. non corn related means its far cheaper. Now you just made a cheaper form...put some of that on e85 maybe...
2) greening of buildings. some are putting plants on top in other cities...could be the greenest in the country...no smog
The potential is there it's just a matter of development. Pittsburg can kinda pull itself off of steel so it's not like a town or city can get past an old industry