Some Of China's Largest Manufacturers Want To Set Up Shop In The U.S.
Chinese manufacturers are facing major turbulence, and some companies are turning to the U.S. for a solution.
Worker wages have increased 15% across Chinese factories; that increase, coupled with rising shipping costs and tax-crippled profits, has caused China’s largest manufacturers to look into shifting their production to America.
Experts said that while U.S. manufacturing wages are still higher than those in China, the gap is quickly closing, the Wall Street Journal reports. Taiwan’s Dongguan Winwin Industrial is looking to set up its newest shoemaking machinery in the U.S., with executives projecting the move will ultimately generate more profits as they shift their facilities closer to customers.
Though President Donald Trump said China is destroying U.S. manufacturing and threatened to impose tariffs on Chinese imports as high as 45%, experts said broader economic forces have been reshaping global manufacturing in America’s favor for several years. Chinese coastal land is often more expensive than industrial land in the U.S. and automation is eliminating the need for so many workers, making it often more profitable to set up shop closer to consumers.