Tide of Multinationals Leaving China Turns Into a Flood

It took 20 years for China to disrupt global supply chains and build up the world’s largest manufacturing base. In the process they decimated US manufacturing sectors like computers, telecommunications, and furniture.

It seems to be taking just two years for China’s manufacturing dominance to crumble before our eyes.

Permanent Tariffs on China Could Create Up To 1 Million US Jobs in Five Years

Stanley Black & Decker CEO Jim Loree announced in May that Stanley would move production of Craftsman wrenches from China to Texas next year, investing $90M to build a plant employing 500, manufacturing 60 million parts a year at similar costs to China with advanced forging machinery. "We're pushing very hard to manufacture where we sell," Loree told the WSJ.

New CPA Study Shows Permanent, Across-The-Board Tariff on China Would Lead to Economic Growth & Up To 1 Million Additional Jobs

Two months ago we published a study describing the results of our economic modeling of the effects of a permanent, across-the-board 25 percent tariff on all US imports from China. We found that after five years, the tariff would lead to an increase in US GDP of $125 billion and the creation of an additional 721,000 US jobs. The tariff would stimulate the US economy through two channels: first, the relocation of US-bound production from China to other nations would lead to a reduction in the average cost of imports because many alternative production locations, such as those in Southeast Asia, today have lower costs of production than China; and secondly, because a portion of the production in China relocated to the US, would directly stimulate the US economy. 

We Need An American Alternative to Huawei

President Trump’s decision over the weekend to allow US component and chip companies to sell to Chinese network builder Huawei was a questionable decision. We need independence from Huawei, not reliance on them as either a customer or network provider.  Yet the president’s decision was an inevitable result of the structure of the global Internet infrastructure industry. The world does not have enough network providers today. More urgency is needed to fix this situation.