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Four years of Trump pulling American companies out of China
After 4 years of being affected by anti-dumping taxes, tariffs and US-China political tensions under the Donald Trump administration, about 50% of the production lines of US corporation M Group are scattered.
`We finally came up with a solution, thanks to our busy flying schedule. My eldest son and I flew almost all over the world looking for resources,` said H. David Murray, president
First, President Trump imposed a 341% anti-dumping tax on Chinese-made marble kitchen countertops, followed by a series of taxes on wooden cabinets, bathroom shelves, kitchen cabinets and bedside tables.
`All of these products are subject to anti-dumping measures, because the political environment in the US right now is completely favorable for that,` Murray said.
The assembly plant of American automobile company General Motors and its Chinese partner is in Liuzhou city, Guangxi province.
This businessman said he wants to maintain production in China because there is no other place that can compete in price, speed, scale and quality of production.
`The state of North Carolina used to produce a lot of hotel furniture, but that was 20 years ago. If this state now grants us $5 million to open a factory, skilled workers will
`Then there is the supply chain issue. If I were the most competitive person in this field, it would take 3-5 years to build a supply chain, but the cost could be twice as high.`
Murray’s company is just one of many businesses that have witnessed many ups and downs during Trump’s four years in office, when he pledged to be tough on China and bring American companies home.
`If it weren’t for the tariffs, I would still be in China,` said Larry Sloven, who spent years planning to move LED light bulb manufacturing company Capstone International from China to Thailand.
The production line was relocated just before the Covid-19 pandemic broke out.
Sloven added that companies that do not leave will be stuck in China, because no matter who becomes the next US president, the tariffs will not be lifted.
For entrepreneurs, China is an attractive manufacturing location with good infrastructure, stable supply chains and a skilled workforce.
`China is the easiest place in the world to do business, with a large retail market, you can have anything you need for the supply chain, from components to raw materials. It’s all easily accessible.
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President Donald Trump at the event in Manchester, New Hampshire, USA in August 2019.
Besides pressure from Trump, many American businesses said the decision to relocate their production lines sometimes depends on the needs of American consumers.
`In addition to electrical and electronic products, customers now tend to look for products made outside of China,` said Hiten Shah, president of sourcing company MES Inc., said.
A year ago, Kent International was one of many companies considering leaving China.
The plan to relocate to Cambodia failed, but the company was `thrown a lifeline` just before the pandemic struck, with many of its products exempt from tariffs, according to CEO Arnold Kamler.
Kent International’s partner is Shanghai General Sports, a family business managed by Ge Lei.
`In general, I don’t think Trump being elected for another 4 years will be good for our business because his policies are very erratic. For factories like ours, bad policies like tariffs are not
Although Kamler has avoided the worst impact of direct import tariffs and bicycle sales have increased, he still suffers from Trump’s unusual policies.
`If we can get good enough strength, we can seriously consider starting to build a production line from scratch in the US,` Kamler said.