Chinese manufacturers are dabbling in the U.S. production sector.
While President Trump’s U.S. import tax on Chinese goods remains a possibility, Chinese manufacturers are establishing factories in the U.S. to minimize market pressures, The Wall Street Journal reported.
According to Rhodium Group, over the past 16 years, Chinese firms invested $8.6 billion into 778 “greenfield” investments, also known as new production facility funding, in the U.S. Last year alone, Chinese companies spent $1.4 billion on 34 greenfield projects.
Today, Chinese manufacturers are combating major issues, including rising wages, increasing land prices, labor abuse allegations and sustainability pressure. Chinese manufacturers are turning to the U.S. to avoid trade barriers, streamline operational costs and boost proximity to the nation’s consumers.
Although retail remains unstable and President Trump’s tax policies are uncertain, opening factories in the U.S. could be a potential solution for Chinese manufacturers that desire to thrive in the competitive market.
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