More U.S. Companies Seen Leaving China After September

Share to linkedin

China is a crown jewel of American multinationals. Even before it became a member of the World Trade Organization, U.S. policy was designed to make China open up as a manufacturer of low cost American consumer goods. Everything from Nike sneakers to Happy Meal toys were made in China, often by subsidiaries of American companies, or joint ventures where the American firm maintained a sizable position.

"Companies could relocate. The tariff burden on the producer side is not entirely born by Chinese companies, but by American companies," says Yang."When those 10% tariffs on the remaining $300 billion worth of Chinese imports goes into effect, it will be on consumer goods that have so far been untouched."

Recent depreciation of the Chinese yuan seals the deal on decoupling as there is simply no chance that Trump will reverse the tariffs if China's currency depreciates. A weaker economy means there is no way market forces alone don't push the yuan weaker against the dollar. It settled at 7.06 to the dollar on Wednesday, though that could change today as Shanghai stocks were up in the mid-morning hours.

How many more? A handful? By December Tesla giga 3 will be in production, that’s 500,000 model 3 annually. Start from 2020, China will be the 1 retail market of the world.

Nice.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

More U.S. Companies Seen Leaving China After SeptemberAssuming Trump makes good on his promise to tariff all China goods at 10% starting Sept 1, it looks like more companies will move their supply chain It is going down and happening very fast Ever think that might be part of the strategy?
Source: Forbes - 🏆 394. / 53 Read more »

Goldman downgrades Caterpillar, citing weakness in China business amid trade warGoldman Sachs downgraded Caterpillar and said it saw production cuts in the North America and China construction equipment markets due to the ongoing U.S.-China trade. Caterpillar will no longer metamorphosis financially into M Butterfly.. - Goldman downgrades Caterpillar, citing weakness in China business amid trade war (link: they might call it a trade war in public but behind the scenes in getting tooled up and will stand guard at our local artisan bakery so the Chinese can’t take our bread - don’t be scared of the guns, they are to defend the custard If $CAT drops below that support at $119, next target is the 200sma around $110.
Source: CNBC - 🏆 12. / 72 Read more »

Bitcoin as a safe haven? More a speculative bet, market players sayBitcoin's recent gains as stocks plummeted on U.S.-China trade tensions ref...
Source: Reuters - 🏆 2. / 97 Read more »