Donald Trump. Picture: GETTY IMAGES/AFP/JOE RAEDLE
Hong Kong/Sydney — US President , from Walt Disney to Apple, should he formally order American companies out of China as part of his trade war. Trump and his aides argue he has the right to eject American firms from the world’s largest consumer market. In a tweet Friday, the president told US companies “to immediately start looking for an alternative to China”.
There are major doubts over the feasibility of such an order. While some US businesses have already moved manufacturing from China to Southeast Asia and elsewhere, most have no intention of abandoning the $14-trillion economy. A presidential edict to do so would unwind decades-old supply chains, reverse tens of billions of dollars of investments and wipe out a major growth opportunity.
“This is not a market from which American companies can withdraw,” said Ker Gibbs, president of the American Chamber of Commerce in Shanghai.Disney has a bricks-and-mortar commitment to China: Shanghai Disneyland, a joint venture with the city government, opened in 2016. And it’s growing, with Disney announcing in January plans for a Zootopia-themed land based on the hit animated movie. So far, the trade war hasn’t hurt business at Shanghai Disneyland, Disney said earlier in August.