As the Chinese-American trade war continues, American corporations and mid-sized firms face an increasingly uncertain economic future in China. Mid-sized firms, fearing the prolonged impact of these trade tensions, have realized the need to diversify away from China to protect their interests. Mid-sized firms have pursued the diversification of their corporations by shifting “their supply chains to other parts of Asia and by selling more to other countries to make up what they can’t sell to China.” To make up for some of their economic losses, the article notes that mid-sized firms in America have specifically sought new markets in Europe, other parts of Asia, and Latin America. The article also notes that the increasing cost of domestic labor in China has also played an essential role in the diversification of mid-sized firms.
https://www.cnn.com/2019/12/04/investing/midsized-companies-china-survey/index.html
Interesting, depending how long this trade war continues I wonder how many more corporations will ultimately leave China and move elsewhere due to the high costs of manufacturing in China.
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