Japan ditches China in multibillion coronavirus shakeout https://www.bloomberg.com/news/arti...o-fund-firms-to-shift-production-out-of-china https://asia.nikkei.com/Editor-s-Pi...ars-Japan-led-manufacturing-exodus-from-China American companies, including google ,AMD and microsoft, have already had scouting trips and are greenlighting the transition away from the used up death star. Taiwan will be the new manufacturing home for semiconductor research for smaller firms. American hedge funds and investors advising to do the same -- Corona was not the change we asked for, but it was the one we (humans) needed.
Actually, some of those moves (Japanese manufacturers moving some manufacturing out of China and into other Asian countries like Malaysia, Thailand, Vietnam, and Japan) started in response to trump's on-again, off-again, on-again tariffs.
LOL... manufacturers are scrambling to keep manufacturing costs and supply chains going. And will likely return to plants in china as soon as feasible. And ignoring all the American deaths and job losses. So sure, call it a win if you like...
Not only countries are pulling out of China, but lawsuits against the ChiCom bastards are piling up too. I’m ready with my popcorns and drinks, when we finally put an end to Winnie the Pooh and the ChiCom bastards, we will dance to Kool& gangs “Celebration”. Vengeance is sweet sometimes!
New Data shows US Companies leaving China U.S. companies are leaving China thanks to the trade war. They’ll leave even more thanks to the pandemic. Sorry, Davos Man. Your China-led globalization is going out of style like bell bottoms. Global manufacturing consulting firm Kearney released its seventh annual Reshoring Index on Tuesday, showing what it called a “dramatic reversal” of a five-year trend as domestic U.S. manufacturing in 2019 commanded a significantly greater share versus 14 Asian exporters tracked in the study. Manufacturing imports from China were the hardest hit. Last year saw companies actively rethinking their supply chain, either convincing their Chinese partners to relocate to southeast Asia to avoid tariffs, or by opting out of sourcing from China altogether.
"Three decades ago, U.S. producers began manufacturing and sourcing in China for one reason: costs. The trade war brought a second dimension more fully into the equation―risk―as tariffs and the threat of disrupted China imports prompted companies to weigh surety of supply more fully alongside costs. COVID-19 brings a third dimension more fully into the mix, and arguably to the fore: resilience―the ability to foresee and adapt to unforeseen systemic shocks," says Patrick Van den Bossche, Kearney partner and co-author of the 19-page report. The main beneficiaries of this are the smaller southeast Asian nations, led by Vietnam. And thanks to the passing of the U.S. Mexico Canada Agreement, Mexico, for all its problems with drug cartels, has become a favorite spot for sourcing.
Vietnam Wins Asia. Mexico Winning Americas. The Kearney China Diversification Index (CDI) tracks the shift in U.S. manufacturing imports away from China and to other Asian countries on the list. China is still the leader, but she is increasingly losing share in the Trump years. In 2013, the base year for the CDI, China held 67% of all U.S.-bound Asian-sourced manufactured goods. By the second quarter 2019, its share collapsed 56%, a decrease of more than 1,000 basis points. Of the $31 billion in U.S. imports that shifted away from China, some 46% was absorbed by Vietnam, sometimes by the same Chinese suppliers who left the mainland. Vietnam exported an additional $14 billion worth of manufactured goods to the U.S. in 2019 versus 2018 as a result of that shift. Mexico is the China of the Americas. Undoubtedly, alot of necessary change coming from the bug.
As we've been saying all along the US government has strong armed all companies into doing the necessary due diligence to get the hell out of the land of dog eaters ~~ a necessary move for humanity to not die out . Apple supplier TSMC to build a $12 billion chip factory in the U.S. TSMC’s decision to build a new U.S. chip plant comes as President Donald Trump’s administration continues to scrutinize the global technology supply chain upon which American firms rely on. In particular, the government has sought to reduce reliance on China, a feat that may not be so easy, experts previously told CNBC. During his presidency, Trump has also looked to bring manufacturing back to the U.S. U.S. Moves to Cut Off Chip Supplies to Huawei New restriction stops foreign semiconductor manufacturers whose operations use U.S. software and technology from shipping products to Huawei without first getting a license from U.S. officials
I hope this brings some change in China. As I have said in the past I’ve been to Beijing twice and it’s one of the most depressing places I have been to. I felt sorry for the people there and still do.
These I see as short term PR moves but doesn’t address the long term issue of where these companies will see the best long term value in working from and where the long term investment in ingenuity will be. America needs to invest in our own technological advances and infrastructure that creates the global leverage that China has had the past ten years. What happens if China announces sweeping reforms of health and safety in food and drugs to prevent another pandemic, eases off of Hong Kong, and helps will global distribution of a cheap vaccine for Covid? These companies will go right back to China unless the US steps up and makes the investments necessary to boost our leverage globally. It’s just one idea but the biggest one imo would be investing in green energy grid technology, get back in the Paris agreement, but use that format to create a system for all developing countries to invest in the US through our Energy infrastructure. You could also make advances in heath, science, transportation, etc. What made the US so powerful and wealthy to begin with was our post world war Military Industrial complex. We should learn from that and create other industry staples that allows us to have the socioeconomic leverage to kick China to the little kids table and change their behaviors for good. We should all not get too excited about one or two companies stepping away from China because we know they will go right back if we do not do what we should have been doing for decades now to create more infrastructure for increased global economic leverage. Bombs and tanks can’t be the only thing we produce and rely on that to maintain our standing in the world vs China in a world that has less need for bombs and more need for science.
You can't replace cheap labor by bringing things into the US. US actually never lost manufacturing share - it has increased to it's peak in our nation's history - problem has always been automation of repetitive jobs - which is the only way manufacturing can compete here. The key isn't to move plants from China to the US where they become unprofitable, but to diversify and make sure other countries can get access to US markets for the products China exports - thus creating competition and reducing reliance on China, as well as opening new markets for US exports. Of course this is what TPP was about - supported by Dems and Republicans, until Trump shredded it because it didn't have his name on it.
For sure. Obviously being somewhere twice for around 10 days total is not much time. But I don’t remember people looking happy much. Shanghai and Hong Long/Macau were definitely different in that regard.
