The only LOGICAL way to respond to a capriciousleader like Trump, is just as they are all doing: when he offers cash bonuses,take the money and run, but make no significant changes to the business of anykind.
It’s just the way that capitalism and business hasALWAYS worked, and has always needed to work, in order to survive and thrive.
Suffice to say: in the last 20 years, almost everyheavy and medium industry in the US uses parts made in the PROC - if notentirely made there.
So how do U.S. companies leave China? Trump is crazy!
Why no one has done asTrump claims he thought they would, reacting to the HUGE tax cuts and to thetariff threats, by suddenly building new factories in the US, and paying Americanworkers much higher wages.
Because any businessperson with a brain, and anybusiness experience whatsoever, thinks in longer terms than next week.
And the future that our president is thinking about is obviously only next week.So anyone who WAS listening, is going to bloody well take the timeneeded to assess what to do that isn’t going to destroy their company.
An interesting thing about this question that Idon’t see touched upon yet is this:The US has (in every practical sense) no productionof electronic components at this time.
Let’s say it in this way. Assume you have a factoryof 500 people in China making shoes for you. Now due to Trump’s policy, youneed to move your factory out to other countries like India. It costs money tomove the factory, and the cost of recruiting and training workers in a newplace also is large.
Who will cover the cost? The answer is that you, thecompany owner, will have to pay. If Nike wants to move out of its factories,that will be a huge expense as Nike hires far more than 500 people in China.
6、St. George's ribbon
They can’t. Staying in China is simply goodbusiness. A Twitter tantrum by Trump doesn’t change that.
They won’t. They would rather spend a fewmillion lobbying Republicans and Trump personally so he reverts course, thanhaving to restructure themselves out of China. This is simply obvious.
They don’t care. Americn business know that allof this is tough guy talk / political theatre / electoral pandering. Trump isan idiot, but there are very intelligent people around that knows the disasterthat move would imply for the whole world, not only China and the US.
In any case, the president’s word does not becomelaw simply because it has been spoken (or tweeted) by the president, and evenif he chose to go through the proper channels, ordering American businesses toterminate their dealings with overseas partners is wildly outside his sphere ofauthority.
If some manner of executive order were to be enacted, thenbusinesses would almost immediately initiate legal action (in fact I betthey’re already briefing lawyers, just in case) to challenge this restraint oftrade, the government would lose all of those cases, and Trump would suffer ahumiliating defeat.
Land of the free … blabla … democracy … blabla …independence … blabla … competition…
The fact that such questions exist, may they bemeant honestly or not, scares me. And I am NOT American, nor do I live there.
And besides that: HOW the F. should this be done?Grab your plant, your workers, and the whole stuff. load it into some freightplane or ship, and move the lot someplace else?
9、Alan G Tessier
I do not believe that many of them care what Trumphas to say.
It is not that simple to pack up plant, equipmentand installations to move on the whims of the Orange Headed buffoon. Supplychains have to be revised, new workers have to be trained, etc.
It costs agreat deal of money and downtime. It probably would not be finished before thenext election, and even at that. Trump's attention span is so short, Trump hasprobably forgotten why, if ever, he said that.
US Presidents do not have the authority to “order”private citizens or businesses to do that sort of thing.
I realize that Donny believes that he is the “king”of the United States (or maybe the dictator), but he is not.
With a few narrowly defined exceptions USPresidents only have the authority to implement and “execute” the laws passedby Congress.
If Donny actually believes he can do this, it seemsto me to constitute solidly conclusive evidence that he is, to use apsychological term of art… crazier than a bedbug.
11、Seo Kok Ing
There are 3 layers of business activities in Chinafor US businesses：
1.Thoseevery one is talking about, export to US in which US has a trade deficit of400+B yr., with corporate America making big bucks
2.Those UScompanies engaged in services activities in China earning USD 600B yr
3.Those UScompanies operating business activities like KFC, retailers etc earning USD200Byr
Who wants to leave China toleave China?
Last year, in order to get a special set of screws, we went to a Chinese company, which only cost 2,500 dollars. The Chinese company has also made tremendous efforts to acquire the business, which other American companies do not care about.
The Chinese have also gotten a lot better atmanufacturing and designing. So any disparity between the US and China israpidly shrinking, it’s easier and easier to pick China over any other countryas time goes on, eventually they could simply end up being the best and anycompany would be a fool throwing money away to go with any other country.
Although technology and automation means some production is getting cheapenough to come home again.
American companies will need to charge more fortheir products if they move manufacturing to the US. That’s just a fact. It’salso a fact American consumers won’t pay that extra and American producersvalue profit above all else, they have no loyalty to the US.