Or you're a corrupt politician they own.Yeah, new foreign investment is doa for China unless they have dirt on you (Ray Dalio).A real world example is that we are doing our first runs of a couple lines in Taiwan this week and Mexico in the next couple weeks.
This is a major hit for China. After Covid every company that isn’t retarded made some inroads toward moving away but didn’t really pull the trigger. Because no one is going to go full hog unless really forced because it takes investment in these other places as they aren’t as ready to go out of the box.
The tariff situation has forced their hand and once the investments are made to move from China they aren’t going to go back.
So let’s say using the company I’m at we move a third of our stuff. Of course it’s the most important high dollar products. The lesser ones can stay and/or move away with less urgency.
That hits an export economy like China in a big way and even more devastating, every bit of investment into other competing counties snowballs and makes them more competitive over time.
China has been acting like an asshole for so long that their companies are going to have to make major changes to make it worth doing business with again. The shady shit they get up to is absurd. And the domestic regulatory agencies are fed up with it so it keeps putting a bigger burden on the importer to do more crap.
So when dumbasses are like ”hardy har har it’s just a tax!” they completely miss the point.
Other markets are going to continue to scale and eat their lunch in 100 different sectors.
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