Are American Manufacturers Really Exiting China?
April 12, 2019 / Chris Devonshire-Ellis
Keeping the Chinese economy rolling along in healthy numbers is seen as a large battle for China at present. The still-to-be-resolved US-China trade spat has certainly had an impact on American sentiment towards China, and US-China trade is down significantly as a result of both countries imposing tariffs on a raft of each other’s products.
This has hurt some China-based US manufacturers, reliant on low tariffs within the US-China trade space to keep their China-made products competitive. There may well be longer term repercussions too, as such manufacturers are opting to transfer all or part of their China-based production to non-affected countries, such as Vietnam.
Headlines such as Would The Last Company Manufacturing In China Please Turn Off The Lights may apply to a small number of tight-margin US investors in China. However, the frightening headline is really designed more to attract views rather than offer an in-depth analysis. These are attention-grabbing st...