business

U.S., Japan, France prod companies to rely less on China, but few respond

46 Comments
By JOE McDONALD

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China's explosive rise as the world's low-cost factory helped to hold down consumer prices... 

Prices need to be held down. That's because so many western workers lost manufacturing and other relatively well-paying industrial jobs as a result of the offshoring, they could no longer afford to pay higher prices. Karl Marx would love this contradiction.

16 ( +16 / -0 )

The CCP is very adept at calibrating their thieveries (stealing jobs, resources, territories, intellectual properties, even democracy and national assets). Sadly, the corporate world also operates on sensitive calibration and won't reverse course until too late.

How difficult has it been to get Apple to exit China? Or Harvard to not rely on Chinese fees? New Zealand export its fish to China 'whole' (ie its fish processing jobs to China), only for the same fish to be exported back frozen. Australia has sold a strategic port to a CCP controlled company, whilst refusing to accept defense missile offer from the US.

The UK, a five eyes partner is letting Huawei hook its equipments into UK comms infrastructure.

The free world is in a daze, and will eventually wake up to a very different nightmare.

13 ( +17 / -4 )

I don't know of a single company right now that is moving ahead with any plans to move,"

The CCP continue to lead a political-economic system capable of controlling global trade. Aided by the globe's corporations and their 'elite' owners.

The future dystopia well underway. Totalitarian governments backed by (led by?) corporate leviathans.

12 ( +15 / -3 )

Well, Mercenaries are only Mercenaries so just let Trump charge tariffs on

chinese imports an they will change their mind.

0 ( +5 / -5 )

Several years ago, staff from a major shopping company were telling me the expansion in China was being fueled by a 90% difference in salary with Japan.

Just recently, a major house improvement, I know of, using Chinese materials is being done in Japan,at a fifth of the cost of Japanese sourced materials.

Abe wanted inflation in Japan, being next to hina means that will never happen...

7 ( +7 / -0 )

How is sars-cov-2 for cheap labour and low prices ?

0 ( +3 / -3 )

Well then, lets raise the corporate taxes on companies with manufacturing bases in China

16 ( +17 / -1 )

Those companies still reluctant to leave China, including Toyota Motors, would have happily done business with Hitler’s Germany.

9 ( +14 / -5 )

Move to India, for a better World.

5 ( +9 / -4 )

double tariff bloody everything made in china.

10 ( +12 / -2 )

"experienced Chinese workers": Only Germany (where it originated), Japan, and now China have workers trained to work in smart factories ("digitally driven production technology"), which allow quick and inexpensive production. The line worker also has to be a work station computer operator. Auto makers don't have to shut down their production line a month to retool, they just have to take a few days to reprogram work stations and they resume production. Train your workers or everything stays in China.

13 ( +13 / -0 )

Few respond, now.

1 ( +2 / -1 )

Consider why China can make the stuff the world wants cheaper than other places?

Are those reasons we want to support?

9 ( +10 / -1 )

They need not announce it to the world but they're trying to make president xi laugh so hard he'll get a heart attack

4 ( +6 / -2 )

What this situation demonstrates is that in case of a pandemic like covid19, these companies' productions are more secure in china, a significant additional reason to stay

-5 ( +5 / -10 )

Its all greed. And greed will destroy. Although greed is good in the short run, its not in the long run as it takes as much as it wants and pays back as little as possible. I enjoy seeing large companies go under. They deserve what they give out. Karma.

10 ( +12 / -2 )

JT posters that holler rely less on China! This article is asking who’s going to pay for it. It’s about costs and profits.

3 ( +5 / -2 )

capitalism is greed and its all about maximizing of profit.

because of this simple fact production from China will be not moved back to Japan or France...if say french or japanese companies will do so,their products prices will go over the roof,will remain uncompetitive priced and sure companies will not make profit but may bankrupt...as simple as is...

7 ( +11 / -4 )

Remember that every single thing sourced and/or produced in China was a calculated move by corporations wanting to lower costs by eliminating employees and buying on the cheap, while trying to maintain the same selling prices.

China didn't take away any jobs. Corporations sacrificed employees for more profits and particularly executive bonuses for share price increases.

15 ( +15 / -0 )

We can't force businesses to follow the new state policy. But our tax money should never be used to help those "pro-Beijing" enterprises when they get into some troubles.

9 ( +10 / -1 )

Its not just about Chinese manufacturing, but about the Chinese consumer. Who is going to buy all that French wine, those iphones, or those Toyotas? You can't just abandon China because of the Coronavirus. All that "gain of function" viral research was financed by the likes of Gates and Fauci. Sure, the Chinese government deserves much of the blsme, but its people don't.

2 ( +6 / -4 )

This article ties in perfectly what I have often harped on about as the Chinese MONSTER!!

As I have said many times, we pay NOW or a LOT MORE LATER!!

Corporate greed has been the main driver for all this the last 30+yrs. And if companies DONT start getting out of China THEY will be a BIG reason for the eventual war the west has with China & the millions of dead that likely will pile up, but don't expect big business or western govts to take much responsibility.

This article CLEARLY shows the corporate greed does NOT care PERIOD!!

I am fine with basic capitalism, but insane growth wanted is clearly no where near sustainable.

Bottom line is Corporations, Govt & us People will need to make some HARD changes in our lifestyles to avoid a war with China!!! Sadly I don't think we are up for it, the war will happen sadly.

0 ( +3 / -3 )

People, if you're so against China, put your money where your mouth is.

From now on, don't patronize anything made in China.

0 ( +6 / -6 )

Out of all G-7 members, Japan is the most relied one on China. Most of Japanese big businesses have their facilities in China. Tadashi Yanai has 80% of his fortune built in China! The CCP holds all the assets over there as hostages. Abe has been talking harshly against China but his inaction contradicts the talks. The Keidanren, likely bribed by China, always defends the investments in China and steers the J-govt from taking any action against the CCP. The EU and US spoke with action, not Japan.

Abe wanted inflation in Japan, being next to hina means that will never happen...

We wants controlled inflation rate to normalize the economy before the bubble. Japan is actually more susceptible to inflation than many people think due to decades of QE. It is actually hyperinflation. Definitely, it is not an outcome that Abe and his cronies wish.

Those companies still reluctant to leave China, including Toyota Motors, would have happily done business with Hitler’s Germany.

They are being blackmailed by the CCP. Their important assets are stashed in China. Most of their leaders are bribed and manipulated by the CCP as almost every Japanese business in China.

The CCP is more insidious and intelligent than Nazi Germany ever was.

6 ( +6 / -0 )

Don't buy "Made in China"? That's a laugh! Even if something says made in USA or made in Japan, open it up and see all the guts made in China. It's not possible. Especially anything electronic.

4 ( +4 / -0 )

"...... helped to hold down consumer prices and boosted Western corporate profits."

So this is accepted (acceptable)? Can't have it all.

2 ( +2 / -0 )

Even if something says made in USA or made in Japan, open it up and see all the guts made in China. It's not possible. Especially anything electronic.

You should also stop buying fake products

-3 ( +0 / -3 )

China is a very very very BIG market! Once you lost your shares you lost it forever! Indeed some "Sunset Industry" might leave China, like shoes making but most sophisticated industry like automobile and cellphones will carry on or even adding investment in China! Go ask Toyota or Honda....do they want to move to India?

By the way, Donald Trump will be gone next year and Joe Biden will takes over the power! You know Biden is a China's friend! And that means the world will back to business as usual before the trade war!

3 ( +5 / -2 )

Stop buying cheap cheap cheap made in China crap. Invest in quality things made to last. Better for geopolitics, local economies, true artisans and the environment.

4 ( +5 / -1 )

There's a case for certain lines of products such as pharmaceuticals and PPE to be moved out of China, sure.... as countries have learned the hard way that any disruption to supply chains for these particular types of goods is beyond unacceptable and I guess the only way to combat disruption is to have these produced locally...

But for others? It totally depends.

1 ( +1 / -0 )

Those companies still reluctant to leave China, including Toyota Motors, would have happily done business with Hitler’s Germany. 

Well, Toyota Motors did of course supply the Imperial Japanese Army...

3 ( +3 / -0 )

U.S., Japan, France prod companies to rely less on China,

What does prodding mean? Of course company follow the money. So you have make Chinese slave labor less attractive. That is what tariffs are for.

-2 ( +0 / -2 )

elephant

By the way, Donald Trump will be gone next year and Joe Biden will takes over the power! You know Biden is a China's friend! And that means the world will back to business as usual before the trade war!

Yes, that is what the CCP and our "mainstream" media are hoping and working for. I hope they don´t succeed.

0 ( +2 / -2 )

Well then, lets raise the corporate taxes on companies with manufacturing bases in China

never going to happen companies will always manufacture in China, 1. because it offers some of the cheapest manufacturing in the world. 2 China domestic market will be the largest with 30yrs, companies that dont manufacture there will be disadvantaging themselves to the ones that do. bottom line is there are just too many profits to be lost by moving out

0 ( +1 / -1 )

from the very first beginning Humans need material benefits/corporate profits. there must be strong enough reasons for them to reject the benefits and act accordingly . at this moment politicans are not making strong cases to their purpose.

1 ( +1 / -0 )

Yes, that is what the CCP and our "mainstream" media are hoping and working for.

I think the CCP want to keep Trump in the WH. By keeping him there they know that would further weaken the country. 4 more years of Trump would push the US even lower than now, the lowest the US has been for maybe a century. That would make it much easier for China to become even more powerful, especially if China's Belt and Road joins up with Russia's Eurasian Economic Union.

And members of the CCP who have business dealings with Trump's family know it would be more profitable for them if he stays in office. They know Trump's media 'tough guy' act is just more of the reality TV star's bluster, that all Trump really cares about is fattening his bank account and paying off his loans.

mainstream media

'Mainstream media' is an alt right term that apparently refers to outlets with viewpoints different from Trump and Putin's. Only partisan extremists say the mainstream media do NOT report from a range of perspectives. What do fringe/media report that's different?

2 ( +3 / -1 )

I watched a youtube vid the other week, it was all about a steel making plant that had gone bust some years ago, in Germany ( I think) guess who bought the whole plant? yep your right, the Chinese, they sent over a bunch of guys who labelled it all up, unbolted it all and shipped it back to China and reassembled it, and now its running at full capacity.

3 ( +3 / -0 )

Especially at this time that companies are struggling, moving out of China is like injecting yourself with disinfectant to cure covid19

0 ( +1 / -1 )

Just plain lazy manufacturing strategies. Many other nations that can provide cheap, reliable labor.

1 ( +1 / -0 )

Offshoring is still offshoring. The complete surrender to China and India for development and control of rare earth materials and pharmaceutical base components is a disaster waiting to happen. The world has been sucked into a spider web and the spider will pounce with this leverage if needed.

1 ( +1 / -0 )

Just plain lazy manufacturing strategies. Many other nations that can provide cheap, reliable labor.

yes but no other country will have as easy access to China's huge domestic market as the Chinese. China will protect its domestic markets just as almost every other country does from imports.. So if your a foregin company that want to profit in the chinese market youll need to build a factory there. GM which sells more card in China than Nth AMerica, Ford even Tesla is building its new Gigafactory there, why because Tesla made in China will be considerable cheaper that its US manufactured ones meaning Chinese will be buying Chinese made Teslas

0 ( +0 / -0 )

"Those companies still reluctant to leave China, including Toyota Motors, would have happily done business with Hitler’s Germany" 

If you look at their histories many did.

0 ( +0 / -0 )

"yes but no other country will have as easy access to China's huge domestic market as the Chinese. China will protect its domestic markets just as almost every other country does from imports.. So if your a foregin company that want to profit in the chinese market youll need to build a factory there. GM which sells more card in China than Nth AMerica, Ford even Tesla is building its new Gigafactory there, why because Tesla made in China will be considerable cheaper that its US manufactured ones meaning Chinese will be buying Chinese made Teslas"

I don't know about your family but mine preached that one must study hard, get good grades and complete college so you didn't end up working in a dead end assembly line job the rest of your life.  I am fascinated by this fetish about bringing 19th century businesses back to the most developed nations.  The simple truth is that the market price for these goods will never pay a middle class wage in a developed nation.  The period after WWII where the US and Canada were the only two industrial nations left standing was a aberration.  As an exercise find some old advertisements for major appliances in the US from the 1960s - 1980s, and enter the prices in the Dept, of Commerce Consumer Price Index Inflation Tool.  You might be surprised how expensive appliances and furniture were back then.  A top of the line mid 1980s Kenmore vacuum sold for more in 1984 than the current top of the line Kenny sells for today.  If you inflated that 1984 price it comes out above $1300.  That is a lot of money for a stinking  vacuum.  Let low wage low education nations build low priced products.  High wage nations need to concentrate on industries that produce high value goods that the world is willing to pay a high price for, which is the only thing that will justify a high wage to the workers producing that good.

0 ( +0 / -0 )

Desert T,

You are not factoring a MAJOR factor though, QUALITY, our vacuum from the 60s cleaned our house into the 80s!! Ditto for washing machine & dryer.

From the 80s to present QUALITY for a lot of stuff is way way DOWN & DESIGNED to be replaced in a year or two, meaning today we are basically buying GARBAGE!! Most things we buy end up in landfill etc in short order, rinse & repeat.

We need to go back to MORE quality in my opinion as best we can, for reasons more that the issues with China!

0 ( +0 / -0 )

Not Surprised at all, why leave China when you can get unlimited supply 24/7 of High Quality, Low Cost parts and raw material supply. Its ever manufacturer dream.

-1 ( +0 / -1 )

"From the 80s to present QUALITY for a lot of stuff is way way DOWN & DESIGNED to be replaced in a year or two, meaning today we are basically buying GARBAGE!! Most things we buy end up in landfill etc in short order, rinse & repeat."

As a blanket statement that is not in my experience true. I have old and new appliances of the same type to base that on. The chrome peeled off the inside of our Sunbeam Coffeemaster and the bakelite cracked from repeated heat cycling. They are also much more work to use (I still have a pristine one but a modern drip coffee maker is so much better). The lid on the 1969 vintage Kenmore vacuum was a lousy design that cracked in several places and had an easily broken plastic living hinge (I still have it). The hoses would develop splits and disintegrate before your eyes. And oh where they heavy! Anyone remember how awful Hot Point refrigerators were? Or old TV sets where you had to get up to change channels (only 13 channels back then), but wait, you also had to adjust vertical hold, horizontal hold, brightness and contrast, sometimes every time you changed channels. Then fool around with the "rabbit ears" (kids, ask your parents what those were). Anyone born after about 1980 won't remember that. While your at it ask them if they remember when all TV stations signed off at midnight, showing only a test pattern until they came back on at 6am. Then you had to take the tubes out periodically and have them tested, or you did it yourself at the tube tester station in most grocery stores (with new replacement tubes in a display next to the tester). Don't forget to discharge the big capacitor in the back of the set before touching anything or the jolt will send you half way across the living room. Been there done that. Modern cars are an order of magnitude better than the junk we had in the 1970s. My wife's V-6 Avalon would humiliate the old 1978 440 Dodge cop car I used to have, better acceleration brakes, handling and so much quieter. And it gets 30 mpg on the highway where that old Dodge could barely manage 10 mpg (6mpg in town). An earlier car from 1954 with a straight six could only must 14 mpg with gentle driving. What does frustrate me is that something like the exhaust HEPA filter for a Miele vacuum (now made in China) that you are supposed to replace every six months costs as much as a whole new budget vacuum at Walmart.

0 ( +0 / -0 )

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