During the trading war, President Trump often claimed that the conflict would affect companies to pull their production out of China and transfer it to the United States. More than a year into it, half-right was created.
More than 50 multinational corporations have announced that they are planning to move out of China, or are thinking of doing so, according to reporting from Nikkei Asian Review. Google, Nintendo and Dell, among other things, are trying to avoid the $ 250 billion import penalties in Chinese goods. But apart from transferring their operations to the United States, as Trump suggested, many of these companies aim to rebuild their supply chains abroad, mainly in Southeast Asia.
Nintendo, the Japanese video game giant, has produced a popular console Switch to redirect out of China to Vietnam, according to reports from the Wall Street Journal. Google has manufactured its Cloud masterboards and some Nest smart home products to Taiwan and Malaysia. Hewlett-Packard and Dell plan to relocate chunks of their personal manufacturing to Southeast Asia.
A July survey of quality control auditor and supply chain showed that demand for inspections was established in China from US companies. fell by 13 per cent in the first half of 2019. In the same window, 34 per cent jumped in the overall demand for inspections in South Asia.
Nikkei's report said that Apple is evaluating the cost of transferring 15 to 30 percent of its production out of China, and is the largest international market in the company, where manufacturing has been established with Past 20 years. He also stated an executive who was aware of the situation that manufacturing manufacturing risks in China would mean that Apple will be moving out of the country regardless of whether a trade agreement has been reached.
“Lower birth fat, higher labor costs and the risk of production being centralized too much in one country. These adverse factors are not going anywhere, ”said the executive, according to Nikkei.
Foxconn, who assembles iPhones, iPads and Macs and is one of the world's largest contract manufacturing companies, said last month that it could meet the demand from American consumers with its current manufacturing capacity outside China. As it seeks to change production, Apple hopes to Southeast Asia, and India and Vietnam as the current ones for iPhone production, Nikkei reported. The company will start an early trial production on AirPods in Vietnam, a forerunner for mass production, said the report.
As it turns business and production off, China has tried to attract new companies. It has curtailed foreign investment restrictions in key sectors such as petroleum, agriculture, mining and manufacturing, the state planning agency announced last month. The changes come into effect on 30 July.
American businesses, together with other bruises from the trading war, went to the Chinese economy. This week, Chinese officials announced that the growth had fallen 27 years.
“The severe economic conditions remain at home and abroad, global economic growth is slowing down, the external instability and uncertainties are increasing,” said Mao Shengyong, spokesperson for the Chinese National Statistics Bureau, in a news conference. “The development is still uneven and inadequate in the acute home, and the economy is under new pressure.” T
On Twitter, Trump attended a slowdown in China, and was living as evidence of the effectiveness of his trade war.
“US tariffs have a huge impact on companies wanting to leave China to non-tariff countries,” said Trump earlier this week. “Thousands of companies are leaving. That is why China wants to deal with the United States. ”
While Trump repeatedly claimed that the countries it tariffs pay their costs, business experts say that the US levies are paid by US companies, who accept what they can or cost. on consumers. A recent study calculated that the 25 per cent tariffs imposed on China would cost more than $ 800 per year for the average American family, according to a blog post from the New York Federal Reserve Bank.
Similarly, while Trump keeps the conflict drawn out very much China, experts say that the trade war is damaging to the US economy and there may be a global slowdown. The Chairman of the Federal Reserve, Jerome H. Powell, has informed the winds of the trade war that the central bank could cut interest rates later this month. In January, the World Economic Forum predicted that the trade war could reduce global GDP by 0.7 points to 2.8 percent in 2019. And in a recent research note, chief economist Morgan Stanley warned that the war could trade encourage global recession within a year.
At the summit of 20 meetings in Japan last month, China and the US agreed to resume trade negotiations and avoid further application of tariffs. Treasury Secretary, Steven Mnuchin, told CNBC Thursday that he and US Trade Representative Robert E. Lighthizer would speak to Chinese officials later in the day, but that many questions remain complex.
Since he returned to the United States from China, there has been frustration at Trump that Chinese leaders did not follow promises to buy more farm products in the United States, and said he would threaten to charge new fees. cut it if it 's; t happy.
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