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Silly rabbit. The reason why companies are in China to begin with, is because of the massive Chinese market itself. Think about it. 1.4 billion people are fin
by blackrock 6y ago
Silly rabbit. The reason why companies are in China to begin with, is because of the massive Chinese market itself.
Think about it. 1.4 billion people are finally coming online, and into the middle class.
GM, Ford, Boeing, KFC, Starbucks, McDonald’s, Apple, Microsoft, etc. And then, all the European luxury companies, Mercedes Benz, BMW, Airbus, Louis Vuitton, Gucci, Lamborghini, etc. And then, all the Japanese brands too. Toyota, Honda, etc.
If American companies leave China, then guess who is going to eat their lunch? The European and Japanese companies would love for American companies to leave. That’s just less competition for them! This is now like shooting at fish in a barrel. It’s like Capitalism on cheat mode.
And then, the big ticket. The Chinese companies themselves. If they haven’t come online yet, then they’re going to make a splash in another 10 to 20 years. Then the competition will get really interesting.
You should realize, that the Chinese love American cars. Nobody here in America, really cares about Buick, but that is a favorite brand in China. Why? Because the Chinese prefers to buy American cars instead of Japanese cars, because it doesn’t remind them of past historical grievances dating back to the Second World War. So, in this regards, American companies are operating in China on easy mode.
But with the way things are going, these American politicians, are about to squander the good will that the Chinese people have towards American companies and their brands. And once lost, this may not be easy to regain. The Europeans and Japanese (and now the Koreans) are ready to jump in, and take that lucrative market share from the Americans.
So, to the American companies, do it. Pull out at your own risk.
- pkaye 6y agoI think the essential stuff still needs to be made locally to handle uncertainties. I don't expect everything to move back. And certainly stuff made for consumption in China can be made there. Like American brand cars. And I think even Europe and Japan have the same concerns. We can't pull all our eggs in one basket.