US Manufacturers Not Coming Back To North America, Says New Poll
by Tyler Durden
ZeroHedge.com
Thu, 11/01/2018
A new poll this week showed more than 70% of U.S. firms operating in Southern China are considering delaying further investment in the country and are moving manufacturing facilities to other countries as the trade war deepens, said Reuters.
According to the poll by the American Chamber of Commerce in South China, which surveyed over 200 companies, U.S. firms operating in China warned – they are experiencing extreme difficulties from trade disputes than firms from other countries.
64% of the companies said they were planning to relocate supply chains outside of China, but only 1% said they would consider establishing manufacturing bases in North America.
“While more than 70% of the U.S. companies are considering delaying or canceling investment in China, and relocation of some or all manufacturing out of China, only half of their Chinese counterparts share the same consideration,” the AmCham report said.
As the trade war deepens, supply chains in China are being forced to shift to Southeast Asia, the survey found.
U.S. firms reported that trade wars have increased competition from rivals in Vietnam, Germany, and Japan; while Chinese companies said they faced increased competition from Vietnam, India, the U.S., and South Korea.
Harley Seyedin, president of AmCham South China, told Reuters that customers are slowing down orders or not placing them at all. An ominous sign that global growth is now waning and a possible worldwide recession could be near.
“It could very well be that people are holding back on placing orders until times are more certain or it could very well be that they are shifting to other competitors who are willing to offer cheaper products, even sometimes at a loss, in order to get market share,” he said.
“One of the most difficult things about market share is once you lose it, it is very hard to get back.”
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