Posted on 12/24/2016 10:07:36 AM PST by BlackFemaleArmyColonel
While it has been said for a long time that the U.S. is bleeding manufacturing jobs overseas, particularly to China, some businesses have been moving operations the other way round.
And now, the head of a leading Chinese glass maker making the same move has openly questioned if his country really is such a lucrative destination for offshore factories, reports Hong Kong newspaper the South China Morning Post.
Overall speaking, the tax burden for manufacturers in China is 35% higher than in the U.S., Cao Dewang told China Business Network in an interview. He added that a combination of cheap land, reasonable energy prices and other incentives means that, despite higher manufacturing costs, he can still make more money by making glass in the U.S. than by exporting Chinese-made panes to the U.S. market.
His company, Fuyao Glass, has invested over $1 billion stateside, according to the Post, the most significant move of which is opening its U.S. factory in the Ohio town of Moraine, a suburb of Dayton, back in October. The glass maker is re-purposing the town's former General Motors assembly that had been standing empty since late 2008, as the Dayton Daily News reports.
According to Ohio TV station WDTN, the plant now employs a workforce of almost 2,000, and Cao expects that the fully operational facility will employ up to 3,000 workers.
Wage and transportation costs are getting higher in China, Cao says. Compared with four years ago, labor wages [in China] today have tripled, he told China Business Network. Meanwhile, transportation in the U.S. costs the equivalent of less than one yuan ($) per kilometer, while road tolls [in China] are higher, he added, pointing out that some mid- and small-sized Chinese enterprises have already started moving to Southeast Asian countries like Vietnam and Cambodia...
(Excerpt) Read more at msn.com ...
I thought it was impossible to bring manufacturing back to America . . . The Great Obama told us so . . . how DARE those Americans not go to college and get a degree in Lesbian Dance Therapy!
Well, this doesn’t help in the destruction of the USA at all, those poor progressives are being foiled.
To bad it is Chinese Company. What hell hath the globalist wrought on the USA.
A trade policy without tariffs is like a gun without bullets.
China has not been the low cost producer for several years already.
Chinese manufacturers have been offshoring for over a decade - making Ethiopia into the “Lion Economy” of Africa. Very little new money has ben going to China to set up new manufacturing. Neighboring countries have been getting the investment - Vietnam, Myanmar, Philippines, Thailand - even more high-cost areas like Korea.
Chinese wages have increased significantly since they entered the World Trade Organization, and taxes have climbed, as the Government grew hungry for more and more.
China has a host of systemic factors that put its economy at high risk.
- Their banks are a house of cards, loaded with bad debt, from widespread corrupt practices and mountains of Government mal-investment in Ghost cities and zombie factories.
- The demographic wave of young workers which has been so simulative for the last couple of decades, is now receding (and will for the next twenty years).
- Their currency is under a lot of pressure, and they have been burning through their foreign reserves to support it. Two more years like this, and they will have a hard time just covering the clearing of cargo at their ports with foreign currency.
Oh yeah, and Trump could pull the rug right out from under them by laying a tax/tariff, and cracking down on intellectual property theft (fraud). Without even going so far as doing to their businesses what they do to ours.
Wow... that dose of winning just sucked the wind out of me!! Add this to his UN threat and letter from Putin, I don’t know if I can last till inauguration!!
Please P/E Trump... I need a break from the winning!!
Less corruption in America as well since the Clintons are gone and Obama is gone shortly, thank God!
With cheap tax rates,imagine all the overseas businesses that could set up here..
Ain't Free Trade great?
The USA shuts down 70,000 factories and then foreigners come in and restart them. I guess that is better than nothing.
Are you watching Dow-Corning?
At my last trip to China three years ago they are still incapable of running a factory or engineering. The are all run by expat Europeans or Americans. They beat us with labor and lack of regulation. And while Obamatons have been saving the world from CO2 and mining the Chinese government has been quietly buying the world’s supplies of mineral resources.
It will be staffed with Chinese workers. They will come over in a shipping container. LOL
As long as the check clears, who cares? I work for an Italian company in the US. Their paycheck goes into my bank account just as fast as any US company's. We should make America a place where everyone wants to come and do business.
I agree but it’d be nice if the profit stayed here also. I guess that is asking for too much in this world of ours.
Plenty of profit stays here. Every employee got a nice Christmas cash bonus, with “Merry Christmas” printed on the envelope. Too bad the govt took 30%. And the owners are starting another new business here for their sons, will probably employ 15-20 more Americans full-time.
We’ll take what we can get.
Unfortunately, too many Americans are too lazy and stupid to start a business, and have lousy credit, and are broke and on drugs and booze. If you think Americans alone are going to make life better here, you’d better pray for a serious spiritual awakening. I have no problem with ambitious foreigners coming here, nor with rich foreign families looking for a place to make money.
Unfortunately, too many Americans are too lazy and stupid to start a business, and have lousy credit, and are broke and on drugs and booze. If you think Americans alone are going to make life better here, you’d better pray for a serious spiritual awakening.
Hitler expressed similar views about Americans. Stuff it.
You obviously don't work in manufacturing, nor spend any time around young people these days. I finished in May, at 50, a two year Associate's degree in Machining. Almost none of my younger classmates could do 5th grade math, much less Trig. Their "work ethics" were alarming. And these, I imagine, were some of the more motivated of their cohort. Don't know who all these corporations are gonna hire, maybe 50 year-olds like me. Or robots.
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