New Data Shows U.S. Companies Are Definitely Leaving China

[Right_in_Virginia]

New Data Shows U.S. Companies Are Definitely Leaving China
Forbes, Apr 7, 2020, Kenneth Rapoza

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.


More:  https://www.forbes.com/sites/kenrapoza/2020/04/07/new-data-shows-us-companies-are-definitely-leaving-china/#7db0559640fe

[Right_in_Virginia]

FTA

The full extent of the societal and economic trauma the coronavirus pandemic may cause is unknown still, the Kearney report’s authors wrote. But whatever the outcome, a return to status quo China trade pre-pandemic is unlikely.

Kearney predicts companies “will be compelled to go much further in rethinking their sourcing strategies, (and) their entire supply chains.”

[truth_seeker]

China miscalculated.

The extent of our response remains to play out.

" fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve.[1]"

 https://en.wikipedia.org/wiki/Isoroku_Yamamoto%27s_sleeping_giant_quote

[IsailedawayfromFR]

China miscalculated.

The extent of our response remains to play out.

" fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve.[1]"

 https://en.wikipedia.org/wiki/Isoroku_Yamamoto%27s_sleeping_giant_quote

Am not convinced China guessed wrongly.  It has a very long strategic horizon.

Have you heard this podcast?
http://www.iheart.com/podcast/1069-newts-world-30589442/episode/episode-16-china-how-we-42915717/

[sneakypete]

The question that needs to be asked is "How much are we going to charge them to allow them to come back?"

[truth_seeker]

Am not convinced China guessed wrongly.  It has a very long strategic horizon.

Have you heard this podcast?
http://www.iheart.com/podcast/1069-newts-world-30589442/episode/episode-16-china-how-we-42915717/

I have listened to Gingrich a couple of times recently.

I would not call this virus a win for China. Their own people can't be happy about dying. And most of the world can't be happy, either.

A strong case damages them, for delays reporting thetruth and severity about the virus.

If the US and major trading partners "decouple" from China, they lose.

I do not claim to predict the future.

[sneakypete]

I have listened to Gingrich a couple of times recently.

I would not call this virus a win for China. Their own people can't be happy about dying. And most of the world can't be happy, either.

A strong case damages them, for delays reporting thetruth and severity about the virus.

If the US and major trading partners "decouple" from China, they lose.

@truth_seeker

China doesn't care what you or I think. Nor do they care about what other governments think. They (The Chinese ruling families)  are "in" with the international banking families now,and as long as they are all making money,everything is just peachy-keen.

[truth_seeker]

@truth_seeker

China doesn't care what you or I think. Nor do they care about what other governments think. They are "in" with the international banking families now,and as long as they are all making money,everything is just peachy-keen.

China must keep their subjects happy enough to not revolt.

[sneakypete]

China must keep their subjects happy enough to not revolt.

@truth_seeker

The ruling class in China command the largest army in the world. They don't give a damn if their subjects are happy or not,as long as they behave themselves.

They have no qualms at all about turning tanks loose on crowds.

[jpsb]

China has ruined its' international reputation. They have lost face.

Foreign investment will flee China. Foreign manufacturing companies will flee China. The government of China is going to get sued for billions of dollars. There those law suits are successful Chinese assets will be seized.

China is totally screwed and our cold war with China could very easily and quickly turn hot. Which is why President Trump is speaking very softly and respectfully about China.

The CCP does not mind killing millions of people, it has done that before. We had better be ready for them to try again. I would not want to be on an aircraft carrier patrolling the South China Sea.

[sneakypete]

China has ruined its' international reputation. They have lost face.

Foreign investment will flee China. Foreign manufacturing companies will flee China. The government of China is going to get sued for billions of dollars. There those law suits are successful Chinese assets will be seized.

China is totally screwed and our cold war with China could very easily and quickly turn hot. Which is why President Trump is speaking very softly and respectfully about China.

The CCP does not mind killing millions of people, it has done that before. We had better be ready for them to try again. I would not want to be on an aircraft carrier patrolling the South China Sea.

@jpsb

I could easily be wrong,but I don't think there is anything to worry about. The Chinese leadership are not fools. They KNOW they can't defeat us,and will die themselves if they declare war.

They have morphed from being communists to being fascists,and they will just write this off as a learning experience,and move on to newer investments.

When you outright OWN a nation so large and populous,you can afford to do that.

[bigheadfred]

China has ruined its' international reputation. They have lost face.

Foreign investment will flee China. Foreign manufacturing companies will flee China. The government of China is going to get sued for billions of dollars. There those law suits are successful Chinese assets will be seized.

China is totally screwed and our cold war with China could very easily and quickly turn hot. Which is why President Trump is speaking very softly and respectfully about China.

The CCP does not mind killing millions of people, it has done that before. We had better be ready for them to try again. I would not want to be on an aircraft carrier patrolling the South China Sea.

I've read that the Chinese think they can win a nuclear war in sheer numbers.

[jpsb]

No one wins a nuclear war. Think about all the nuclear plants that would melt town a few days after a nuclear strike. Human kind would be lucky to survive. Maybe New Zealand, maybe Alaska, maybe Amazon rain forest. Continental US and Mainland China would be toast.

[Elderberry]

I've read that the Chinese think they can win a nuclear war in sheer numbers.

Sheer numbers of troops or sheer numbers of warheads?

[bigheadfred]

Sheer numbers of troops or sheer numbers of warheads?

Just plain old sheer number of people.

[jpsb]

Just plain old sheer number of people.

Well "they" should read "The Day After Tomorrow" it is a good book but it missed the fact that all the nuclear power plants will melt down without proper maintenance. Imagine hundreds of Fukushima's in Continental USA. Dido China, just about everyone dead, even if you have a very good bunker.

[Elderberry]

[corbe]

   IMHO, this is BS, purely a Trumper's pipe dream.

   The CofC is ALWAYS going to follow the 'Cheap Labor', regardless of Country of Origin, bank it.

[bigheadfred]

Well "they" should read "The Day After Tomorrow" it is a good book but it missed the fact that all the nuclear power plants will melt down without proper maintenance. Imagine hundreds of Fukushima's in Continental USA. Dido China, just about everyone dead, even if you have a very good bunker.

It has been some years since I read the info, so I can't t supply a link.

There is a book I read a long time ago. Published late 50's or early 60's.

Level 7 by Mordecai Roshwald

I have the thought that if anyone would go nuke in a war it would be the CCP leaders. As long as THEY thought THEY would survive to hell with the rest of the world.

[Elderberry]

It is my understanding that all the Nuclear reactors in the US have the ability to Scram, Trip, Emergency Shutdown.

[bigheadfred]

It is my understanding that all the Nuclear reactors in the US have the ability to Scram, Trip, Emergency Shutdown.

You would hope so. I think any failures of the failsafe would be from a nuke strike. I don't know about an earthquake event that 'hit' dead on a reactor. Causing a breach.

[jpsb]

It has been some years since I read the info, so I can't t supply a link.

There is a book I read a long time ago. Published late 50's or early 60's.

Level 7 by Mordecai Roshwald

I have the thought that if anyone would go nuke in a war it would be the CCP leaders. As long as THEY thought THEY would survive to hell with the rest of the world.

I agree with you, the Chicoms don't give a damn about anything other then the Chicoms, given the chance they would burn the world if they thought they would survive. But they won't and they know it. At least I hope they know it. Thousands and thousands of nukes would rain down on China. Yeah they could take us out, but we could turn all of inhabitable China into radioactive glass.

[jpsb]

It is my understanding that all the Nuclear reactors in the US have the ability to Scram, Trip, Emergency Shutdown.

Wrong, all require active cooling to avoid a meltdown. However there are new designed that don't, we need to start building 3rd gen nuke power plants.

[jpsb]

You would hope so. I think any failures of the failsafe would be from a nuke strike. I don't know about an earthquake event that 'hit' dead on a reactor. Causing a breach.

Shutting down is not the issue, Fukushima shut down successfully, keeping the reactor cool is the issue and that requires big working pumps. And no broken pipes.

[Hoodat]

New Data Shows U.S. Companies Are Definitely Leaving China

This of course comes AFTER these US companies gave them the blue prints to build their factories in China, filled those factories with the capital goods and intellectual know-how needed for manufacturing, and then taught China how to produce their product.  The US companies may be leaving, but their 'product' will continue to be manufactured in China for Chinese owners who will keep 100% of the revenue.