Trump's threats lead Chinese to seek manufacturing in the United States

Some Chinese companies are migrating to the United States, a solution which seeks to work around the barriers promised by the new administration, and responds to the rising costs associated with internal production. Moreover, it takes production closer to the consumers.

The Wall Street Journal reports that in the last year, 34 proposals to install factories from Chinese companies were put forth in the US, representing investments of more than $1.4 billion, at the same time as President Donald Trump threatens to raise import taxes to 45 percent and production costs continue to rise in China. 

Along with the growing costs of electricity and price of land, rising wages and questions of sustainability, Chinese factories are facing extreme pressure to change the methods of productions associated with the exceedingly low costs of the last decades, the newspaper reports. 

“We’re analyzing to what extent it makes sense to move production to the United States,” says Carolyn Wang, vice president of the Shenghuabi Group, based in Shanghai, which produces parts for the automotive industry. Meanwhile, John Ling, who supports Chinese investments in Georgia, highlights the need for expansion among Chinese firms.  

“Many Chinese firms became so dominant in the internal market that they have to forcibly look to the external market,” says Ling, who presides over the Council of American States in China.