https://www.nytimes.com/2019/08/24/business/trump-china-trade.html
Before his annual trip to the G-7 Summit, President Trump threatened China with the withdrawal of all US companies from the country. China is a key player in the global economy, they make 25% of the worlds manufactured goods. Forcing companies to leave China so quickly is going to hurt the companies. A more long term process of relocating is already underway. It is unlikely that these companies will move home because of low unemployment rates.
Overall, it seems unlikely that Trump has the capacity, or the legal authority, to force companies to remove their business from China. Economically, this move would have potentially devastating effects on the American economy. The American economy would suffer because these moves would adversely affect international trade and strain the economic relations between the two countries. These moves would, also, damage the competitiveness and profitability of American international corporations.
ReplyDeleteI agree with Kyle, it does seem unlikely that our president has the power to pull companies out of China. However, I could see Trump offering subsidies or tax cuts to incentives these companies to move back home or relocate to another country.
ReplyDelete