Is that you, George?
Posted on 05/12/2019 2:28:48 AM PDT by Zhang Fei
“Those manufacturers who mainly sell to Europe and the United States need to start taking pain killers again,” said exporter Liao Yu, who produces bags and suitcases in Dongguan.
“The cost of relocation is very high for small factories of our kind. But if you don’t move, how do you digest the tariffs? A 25 per cent [tariff] will kill everyone. Meanwhile, European and American customers are now using more suppliers in Southeast Asia to replace us. Trump is just a killer.”
“We thought our products would be safe and excluded from the list [subject to US tariffs]. But Trump never plays by the rules and it seems no one from China’s side is able to contend with him,” said Gloria Luo, who manages a Guangdong-based manufacturer of automotive parts and industrial moulds.
“My team and I have been busy studying whether our products would be included on the list of US$325 billion worth of goods and what we should do next. It’s really hard to absorb the news because the [Chinese] media is just reporting repeatedly that both sides had made positive progress in the latest talks and would reach a final deal soon.
“[Trump’s threat] means a fundamental change for those of us who used to fill American orders, either we must relocate to other countries or suffer great hardship,” said Jason Liang, a sales manager at a Guangzhou-based exporter of LED products.
“There’s a huge difference between [the effect of] a 10 per cent tariff and a 25 per cent tariff. No factory could absorb the tariff costs that are that high.
“[The rise] would only result in massive lay-offs at a large number of export-oriented companies, not to mention [the effect of the new] 25 per cent tariffs on an additional US$325 billion of Chinese goods.
(Excerpt) Read more at scmp.com ...
Chinese tariffs on imports are high. Costs used to be bottom-of-the barrel cheap. The second is no longer the case. 25% tariffs will force foreign and Chinese manufacturers exporting to the US to move plants out of China. Once built, they will move probably all of their production not destined for China to those plants. In time, they may find it cheaper to pay Chinese tariffs than to maintain one plant in China and one plant in another lower-cost location. Chinese export industry workers are about to get a good look at outsourcing from the wrong end of the barrel.
25% is just the starting point. Just a start.
Time to bring things back into balance, President Trump.
It is long, long time to bring jobs back to America.
Trump is now killing Chinese business?
What have the Chinese been doing to American business for years?
Payback, babe
For how long China was just so used to having their way with the “get-along” globalist wimps, now they’re flustered that they actually have to deal with a hard negotiator who doesn’t surrender
China needs the US market more than the US needs the China market, and both sides know that ... China has to submit at some point
Consider it a tax that everyone will be forced to pay. We call ours - Husseincare.
They just do exports? No imports? That’s their problem.
And why I’m an importer exporter.
Is that you, George?
Still not tired of winning!
I’m not replacing my busted dryer. The sun works pretty well.
A Chi-com business man that believed a “deal soon” doesn’t deserve to be in business in China. I didn’t believe it for one minute.
If only Americans had the know-how to manufacture bags...
So they move their manufacturing to Vietnam. But what happens when they run out of other peoples ideas to steal? What happens when they no longer get the plans to manufacture other people’s products?
Rule #1- America first!
But it is ok for us to pay out the wazoo, huh Hop Sing?
Party’s over.
And therein, lies the rub. I don’t own a business, so I don’t know what it’s like to have some Chinese businessman or conglomerate approach me and offer an insane amount of money for it and all the intellectual material with it. I’m sure, if you’re a start up or just reinvented the mousetrap and someone offers you enough to walk away, to live your life the way you want to and have everyday be Saturday, it’s more than a little enticing. But, that is one of the reasons we’re in the mess we’re in with them. Not only did they start gobbling up businesses and move the manufacturing back to China, they got tons and tons of ideas and R&D in the process.
Years ago they were making sheetrock. Well their product absolutely sucked because all they do is cut corners in the process to increase their profits. Anyone on here that was in the construction business in 95-96ish should remember there being a shortage of sheetrock and you had to order it, to the sheet because it was so hard to get. Builders were ordering the stuff months in advance, with very little left to spare.
And if I’m not mistaken, it was their really crappy PVC pipes, when builders started using that instead of copper. Entire homes were flooded and destroyed because of their cheaply made crap.
I recently replaced the motor on a pool pump, $150. The lady told me to expect it to last for 3-4 years. I asked why. “Because it’s that crap made in China that’s made to last that long and it’s more worthwhile to buy a new one than it is to have it rebuilt”.
Sorry, but reading this article, made me ROCK H@$D!!!
Donald J. Trump plays by a set of rules the Chinese will not recognize. China is no longer a “developing country”, so the former exemptions and allowances no longer apply.
Paying the price of maturity is sometimes painful. Like the former college student who has acquired an advanced degree but still dwells in his elders’ basement, it is time to get out there and compete on the basis of the same rules as others before them.
Either China is ready to face the world on the same basis as any other developed nation, or they are forever doomed to existence in the basement.
“[Trump’s threat] means a fundamental change for those of us who used to fill American orders, either we must relocate to other countries or suffer great hardship,
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Sucks to be you.
If President Trump can destroy China economically then we won’t have to do it militarily down the road.
Always a classic meme.
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