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Moving your Factory out of China to another Asian nation is a national security win, for starters. But once you’ve started considering that process, maybe you
by zaroth 7y ago
Moving your Factory out of China to another Asian nation is a national security win, for starters.
But once you’ve started considering that process, maybe you run the numbers and find the marginal cost (an economic term, not to be confused with “small”) of producing locally isn’t as high as you think.
Every company importing from China is doing this analysis. For some percentage of those companies, the numbers will make sense to move into the US. Whether they are building a new local factory or contracting for space on an existing US line.
And it’s not purely “is the US marginally cheaper today,” but the bigger question of; is it less risky overall to produce in the US based on what might happen in the future?
China and the US are not allies, and US companies should see some degree of risk in keeping their production in China.
And I even forgot to mention the rampant intellectual property theft and counterfeiting.