Chinese Plant Relocates to 'Merica!

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I saw one of his press conference about this matter. Basically he said that other than labor cost, China is very expensive to be in manufacturing because of a lot of the taxes are capacity and investment based instead of profit based. Also RMB / Yuan is not a freely exchanged currency, so all the money you made can be confiscated overnight if you rub the wrong elbows with the wrong politicians (a necessity when doing business in China).

The rumor on the street says he is trying to legally move money out of China by investing oversea.

 

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Originally Posted By: CT8
Will the factory use U.S. workers or import Chinese workers as made possible by the TPP treaty. That is the question.


US workers (you can't legally just use foreign workers to do US work with a short term visa), and BTW, China is not part of TPP.

 

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Originally Posted By: sciphi
China is limited by their infrastructure being mostly on the coast. The cheap land is in the interior, but there's no infrastructure or population there. They also suffer from only having so many seaports on their one coast, and capacity in those ports. Over here, we have plenty of infrastructure and population in the interior, easy access to ports on both coasts, and cheap land nearby that infrastructure. US workers get jobs and the company makes more money.


The other thing is with rising standard of living, you cannot just get cheap labor like you used to. $500 a month may sound cheap, but not as cheap as $250 a month that your neighbors are charging these days, or after factoring in the additional $500 for freight.