{"id":177657,"date":"2019-07-21T19:27:00","date_gmt":"2019-07-22T00:27:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2019\/07\/21\/this-is-china-paying-for-it\/"},"modified":"2019-07-21T19:27:00","modified_gmt":"2019-07-22T00:27:00","slug":"this-is-china-paying-for-it","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2019\/07\/21\/this-is-china-paying-for-it\/","title":{"rendered":"This is China Paying for It"},"content":{"rendered":"

Notwithstanding the claims of the free market mousketeers, China has always had more to lose in the event of a trade war.<\/p>\n

Now, we are seeing the Chinese consequences of a trade war<\/a>, where US firms are moving their supply chains from China.<\/p>\n

It is neither trivial nor cheap to move a supply change, and once moved, it is neither trivial nor cheap to move a supply chain back, so any changes resulting from Trump’s tariffs are likely to be long term:<\/p>\n

U.S. manufacturers are shifting production to countries outside of China as trade tensions between the world\u2019s two biggest economies stretch into a second year. <\/p>\n

Companies that make Crocs shoes, Yeti beer coolers, Roomba vacuums and GoPro <\/a>cameras are producing goods in other countries to avoid U.S. tariffs of as much as 25% on some $250 billion of imports from China. Apple Inc. also is considering shifting final assembly of some of its devices out of China <\/a>to avoid U.S. tariffs. <\/p>\n

Furniture-maker Lovesac<\/a> Co. is making about 60% of its furniture in China, down from 75% at the start of the year. \u201cWe have been shifting production to Vietnam very aggressively,\u201d said Shawn Nelson, chief executive of the Stamford, Conn., company. Mr. Nelson said he plans to have no production in China by the end of next year. <\/p>\n

\u2026\u2026\u2026<\/p>\n

\u201cOnce you move, you don\u2019t go back,\u201d Mr. Nelson said. <\/span><\/p><\/blockquote>\n

This is something that people miss:  China is far more dependent on existing supply chains than the US does. <\/p>\n","protected":false},"excerpt":{"rendered":"

Notwithstanding the claims of the free market mousketeers, China has always had more to lose in the event of a trade war. Now, we are seeing the Chinese consequences of a trade war, where US firms are moving their supply chains from China. It is neither trivial nor cheap to move a supply change, and …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[487,394,417],"class_list":["post-177657","post","type-post","status-publish","format-standard","hentry","tag-china","tag-foreign-relations","tag-international-commerce"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/177657"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=177657"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/177657\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=177657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=177657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=177657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}