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Just out of idle curiosity: are we talking bare PCBs or complete assemblies? There is a big difference between "I can not find a company to produce a bare six layer board" and "I can't find a company to produce electronics assemblies full of phone-density chips on a 20 layer board with buried and plated vias".
FWIW, here in Europe we certainly have companies which have both the capabilities to manufacture PCBs (like MultiCB, which will produce a bare ten-layer board in six work days in the UK, with initial costs of about 600 Euros). I had a colleague organize the component placement of some six-layer board with a large-pitch BGA with some company in Germany, and that basically worked fine.
Of course, my field is basic research, where we might need a couple of hundreds of boards and won't care too much if they end up costing 100 Euros apiece. I guess that if one needed a million boards to sell to consumers on paper-thin margins, then one would not want to use European manufacturing. And of course the supply chains for the components will mostly still lead the Shenzhen -- I don't think anyone is producing SMD resistors in Europe.
I think that there is a point to be made that most companies internally do not work as a free market, and the ones which try to do that (some HP CEO tried, IIRC) fail badly. However, I think it would be wrong to blame capitalism for ruining America.
There is certainly some amount of central planning required for designing and building complex products. No amount of mom&pops shops can collectively manufacture a smartphone. But I don't think that China's manufacturing power is showcasing the superiority of planned economies. If I order some PCBs from China, it seems unlikely that I dealing with a factory which is fulfilling some five year plan of the politburo, or even centrally controlled from Peking in real time. Instead, the company is likely competing against other companies locally and globally, making the business decisions which it thinks will earn it the most money, just like it would in a Western economy.
The difference between the US and China seems more that in the US, there is a certain belief that the voice of the market is the voice of God, and any interference with the market will it make less efficient and is therefore bad. By contrast, most countries recognize that the market has failure modes and may not generally lead to good strategic outcomes, and there are some decisions where it is worth it if the state puts the hand on the scale to reach some desired outcome.
I've gotten the impression that the situation is somewhat better in Europe than in US when it comes to low volume orders. If you need eg. 100 - 10000 assembled PCBs made, there are many reputable (mostly Eastern European) companies that will happily deliver that with much higher reliability than Chinese suppliers and without a ridiculous markup. China is difficult if you don't have someone on the site making sure the suppliers actually provide what they promised and just won't suddenly replace components with more "convenient" ones (that have worse specs). Based on several electronics forums in the US it's something of a crapshoot whether you can find a supplier that wants to deliver such orders as many seem to want only high value clients. Maybe you get lucky, maybe you don't.
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