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.

[bigheadfred]

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.

Had to look this up.

The reactors proved robust seismically, but vulnerable to the tsunami. Power, from grid or backup generators, was available to run the residual heat removal (RHR) system cooling pumps at eight of the eleven units, and despite some problems they achieved 'cold shutdown' within about four days. The other three, at Fukushima Daiichi, lost power at 3.42 pm, almost an hour after the earthquake, when the entire site was flooded by the 15-metre tsunami. This disabled 12 of 13 back-up generators onsite and also the heat exchangers for dumping reactor waste heat and decay heat to the sea. The three units lost the ability to maintain proper reactor cooling and water circulation functions. Electrical switchgear was also disabled.

So they lost power to the cooling system and couldn't restore it before those cores melted.

Interesting they survived the earthquake but not the tsunami. You would think an eventuality, like a tsunami, would be taken into account for a facility built next to the ocean. 

[DB]

Had to look this up.

The reactors proved robust seismically, but vulnerable to the tsunami. Power, from grid or backup generators, was available to run the residual heat removal (RHR) system cooling pumps at eight of the eleven units, and despite some problems they achieved 'cold shutdown' within about four days. The other three, at Fukushima Daiichi, lost power at 3.42 pm, almost an hour after the earthquake, when the entire site was flooded by the 15-metre tsunami. This disabled 12 of 13 back-up generators onsite and also the heat exchangers for dumping reactor waste heat and decay heat to the sea. The three units lost the ability to maintain proper reactor cooling and water circulation functions. Electrical switchgear was also disabled.

So they lost power to the cooling system and couldn't restore it before those cores melted.

Interesting they survived the earthquake but not the tsunami. You would think an eventuality, like a tsunami, would be taken into account for a facility built next to the ocean. 

If I remember correctly the generators and main electrical switching gear was below the main building... So when it flooded it was done.

[sneakypete]

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.

@jpsb

The truth is the leadership don't even give a damn about the Chinese that aren't related to them. IMNSHO,they would LOVE to see half the population of China wiped out because there would be less mouths to feed and fewer people to police.

Not to mention "Mo Monie Fo ME!"

[sneakypete]

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.

@Hoodat

And THERE it is.

Of course the US designed product they will flood the world markets with will be cheapened down to increase the profits. The ONLY thing commie rulers love as much as power is money,because the more of it they have,the more power they have.

[sneakypete]

Had to look this up.

The reactors proved robust seismically, but vulnerable to the tsunami. Power, from grid or backup generators, was available to run the residual heat removal (RHR) system cooling pumps at eight of the eleven units, and despite some problems they achieved 'cold shutdown' within about four days. The other three, at Fukushima Daiichi, lost power at 3.42 pm, almost an hour after the earthquake, when the entire site was flooded by the 15-metre tsunami. This disabled 12 of 13 back-up generators onsite and also the heat exchangers for dumping reactor waste heat and decay heat to the sea. The three units lost the ability to maintain proper reactor cooling and water circulation functions. Electrical switchgear was also disabled.

So they lost power to the cooling system and couldn't restore it before those cores melted.

Interesting they survived the earthquake but not the tsunami. You would think an eventuality, like a tsunami, would be taken into account for a facility built next to the ocean. 

@bigheadfred

Fred,IIRC,they had built sea walls 15 feet high to prevent the reactors from getting flooded,and then due to offshore earthquake,they got hit with seas higher than that,and with enough force to take down the wall in places.

[Bigun]

Before Bill Clinton sold the CHICOMS the technology they couldn't hit North America reliably with a missile.

[sneakypete]

Before Bill Clinton sold the CHICOMS the technology they couldn't hit North America reliably with a missile.

@Bigun

Hell,they can't build ANYTHING. They are still having to arm their military with weapons from Russia. This includes their Navy ships,their airplanes,trucks,and even the rifles and sidearms carTried by the Chinese Army.

Communism stifles creativity because creative people stand out and are seen as a danger to rule of the communist establishment.

The same thing was true of Russia. EVERY FREAKING weapons system they "created" was stolen from the west. This includes the AK-47,which was a rip-off of the Nazi G-3 and G-4 assault rifles.

Soviet nukes? Can you say "Julius and Ethel Rosenberg",as well as some scientists that couldn't be named and arrested because they were essential to the development of our own nuclear programs?

The ONLY thing police states reliably create is fear in the hearts of their slaves.
 

 

[bigheadfred]

@bigheadfred

Fred,IIRC,they had built sea walls 15 feet high to prevent the reactors from getting flooded,and then due to offshore earthquake,they got hit with seas higher than that,and with enough force to take down the wall in places.

All you are telling me is they built sea walls. And not tsunami walls. IMO, my point still stands.

[sneakypete]

All you are telling me is they built sea walls. And not tsunami walls. IMO, my point still stands.

@bigheadfred

No,they build Tsunami Walls,according to the engineers who designed them.

The problem was they based their calculations on high tides during hurricanes,not a tidal wave from a close off-shore earthquake.

Not really sure there IS such a thing as "an earthquake proof wall". Not even in theory.

[The_Reader_David]

Perhaps we should follow Japan's lead and make part of the economic measures to revive the economy support for American companies to move operations out of China -- ideally to the US, but if they really depend on cheap labor to be viable, moving them to Mexico and Central America (rather than say Vietnam or Indonesia) would have the virtue of decreasing illegal immigration by providing jobs at home.

[skeeter]

Just plain old sheer number of people.

People will do nothing but starve if there's no infrastructure.

[skeeter]

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.

Once cut off from the technology they've been stealing for years China will be hopelessly backwards in 5 years, manufacturing prowess notwithstanding.

[Bigun]

People will do nothing but starve if there's no infrastructure.

Exactly right!  There is a reason the CHICOMS have not taken Formosa by force.  That reason is they can't and they know it.

[bigheadfred]

@bigheadfred

No,they build Tsunami Walls,according to the engineers who designed them.

The problem was they based their calculations on high tides during hurricanes,not a tidal wave from a close off-shore earthquake.

Not really sure there IS such a thing as "an earthquake proof wall". Not even in theory.

The Great Wall Of China.

"Knowing" the Japanese I would think they would overbuild.

They are on the ring of fire. So volcanoes, earthquakes, tsunamis, etc., or "normal" weather like hurricanes should have been accounted for.

My bet is , is that they went the way of economic soundness.

At first reporting, plus subsequent evaluations they were projecting 40-50 years to get that place under control. It is off the news radar. They "lost" at least one core. Meaning it had melted down somewhere beyond the reach of locating or monitoring it. Any robot they sent in was fried from high radiation before it could do any reporting.

And now it is fine? I highly doubt that. They somehow managed to stop the radiation leaked into the ocean? They can't even monitor the shit, at core. The truth,  just like so many other truths, ain't gonna hit your front page.

I will link this quote if you want. Otherwise...

   BEIJING (AP) _ A strong earthquake that killed 50 people in northern China earlier this month left many cracks in China’s Great Wall, state media reported Thursday.

The magnitude 6.2 quake on Jan. 10 left cracks in the wall in Shangyi, Zhangbei and Wanquan counties of Hebei province, the official Xinhua News Agency quoted He Yong, the director of the Beijing Administration of Cultural Relics, as saying.

The wall in that area was mostly built during the Ming Dynasty, from 1368-1644. About 20 buildings from that period also have cracks from the quake, he said.

The report did not say how serious the cracks were.

China’s Great Wall, began in the 3rd century B.C., runs 1,500 miles along the edge of the Mongolian plateau. Its width ranges from 12 to 40 feet, and its height from 20 to 50 feet.

Yeah, the earthquake wasn't that strong, but still. Point being that portion of the wall was biult somewhere between 700 and 500 years ago.

The things that were built before that stopped everything.

Except the wrath of G-D. teehee

[sneakypete]

Perhaps we should follow Japan's lead and make part of the economic measures to revive the economy support for American companies to move operations out of China -- ideally to the US, but if they really depend on cheap labor to be viable, moving them to Mexico and Central America (rather than say Vietnam or Indonesia) would have the virtue of decreasing illegal immigration by providing jobs at home.

@The_Reader_David

The Dims will never go along with that. It would interrupt their plans for a communist revolution here.

[bigheadfred]

@The_Reader_David

The Dims will never go along with that. It would interrupt their plans for a communist revolution here.

The communist revolution started here before I was born. Now, it is coming to fruition.

[sneakypete]

Once cut off from the technology they've been stealing for years China will be hopelessly backwards in 5 years, manufacturing prowess notwithstanding.

@skeeter

Too late. That cat is already out of the bag.
 
I bought an antique truck from a guy maybe 10 years ago that had been a supervisor at a local clothing factory where he lived. The factory went out of biz due to the Bush and Clinton Klans allowing the Chinese to import REALLY shoddy clothing from China,so he had just signed a 3 year contract to move to China and show them how to set up an efficient clothing production line.

Which caused me to ask him "Just exactly HOW bleeping stupid ARE you,anyhow? Do you NOT understand that when you get back it is practically guaranteed that clothing factory here will never re-open,and neither your children or your neighbors children will have anywhere local to work THANKS TO YOU LOOKING OUT FOR YOURSELF?"

The selfishness and the thoughtlessness of the typical union/factory worker is amazing.



Good thing I already had the title in my hand. He seemed to be a little upset.

[sneakypete]

The Great Wall Of China.

@bigheadfred

The Great Wall of China is not on the oceanfront. Dealing with an earthquake is one thing. Dealing with an earthquake and the force of hundreds of tons of seawater hitting a wall cracked by the earthquake at speed is a whole nother thing.

[bigheadfred]

@bigheadfred

The Great Wall of China is not on the oceanfront. Dealing with an earthquake is one thing. Dealing with an earthquake and the force of hundreds of tons of seawater hitting a wall cracked by the earthquake at speed is a whole nother thing.

Right. Responding to this from you.

Not really sure there IS such a thing as "an earthquake proof wall". Not even in theory.

Not trying to start an argument ar anything. Just trying to keep the perspective and respective.

[sneakypete]

Right. Responding to this from you.

Not really sure there IS such a thing as "an earthquake proof wall". Not even in theory.

Not trying to start an argument ar anything. Just trying to keep the perspective and respective.

@bigheadfred

I stand corrected. I was still thinking "wall" and "tidal wave" combined. I should have been more specific.

[Bigun]

The communist revolution started here before I was born. Now, it is coming to fruition.

  LONG before either of us was born in fact @bigheadfred

[sneakypete]

LONG before either of us was born in fact @bigheadfred

@bigheadfred   @Bigun

I just watched an episode of The American Experience on PBS yesterday that was all about Joe McCarthy and his political war against communism in the 50's. They even aired an interview with one of the commies in government he outed who still doesn't understand why being a commie was a bad thing.

I even learned,or maybe relearned a few things I had forgotten about,like the fact it was "that clerk,Eisenhower" that was behind the effort to take McCarthy down.

Do a search using The American Experience as the key words at your local PBS web page,and you can find out when it re-airs. If you are busy,you might want to record it. It's 2 hours long.

BTW,"The clerk" is what Patton called Ike during WW-2.

[bigheadfred]

@bigheadfred   @Bigun

I just watched an episode of The American Experience on PBS yesterday that was all about Joe McCarthy and his political war against communism in the 50's. They even aired an interview with one of the commies in government he outed who still doesn't understand why being a commie was a bad thing.

I even learned,or maybe relearned a few things I had forgotten about,like the fact it was "that clerk,Eisenhower" that was behind the effort to take McCarthy down.

Do a search using The American Experience as the key words at your local PBS web page,and you can find out when it re-airs. If you are busy,you might want to record it. It's 2 hours long.

BTW,"The clerk" is what Patton called Ike during WW-2.

McCarthy was before me. Was he wrong?

@Bigun  @sneakypete

Patton was right in his own way. But HE didn't have to deal with both sides of the face. The political face of war. And war.

IMO, the final speech from President Eisenhower regarding the threat of the military industrial complex said enough.

[sneakypete]

McCarthy was before me. Was he wrong?

@bigheadfred

McCarthy was before all of us unless you were an adult in 1950.

The left has ranted and raved about his "lies,half-lies,and insinuations",but thanks to the "Freedom of Information Act" and the passage of time,the files were made public some time in the 80's,and damned if he wasn't right about everything they accused him of being wrong about. He couldn't provide proof back then because a lot of the info he had was coming from the phone lines at the Soviet embassy in DC,that the Feebs had tapped.

This was NOT mentioned in tonight's episode. They did  go further than I expected with admissions on how he was stabbed in the back,though. They also admitted there WERE communists in the FDR white house,as well in other key agencies. The people admitting this admit THEY were communists back then,but none of them were willing to mention the names of any other communists they knew about.

The left,and the media,have always tried to claim McCarthy made it all up. They seemed to be especially hot over him having commies in Hollywood movie corporations blackballed and not allowed to make pro-Soviet propaganda movies.

[sneakypete]

IMO, the final speech from President Eisenhower regarding the threat of the military industrial complex said enough.

@bigheadfred

I agree. Eisenhower may have been a clerk,but he was a SMART clerk.

I have to wonder how many people alive today has even heard of his "military industrial complex" speech?

If anyone asks you,you can explain it today in one word,"Afghanistan".