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Wednesday, September 07, 2022

Tech companies take Trump's advice and leave Red China

NYT reported, "Tech Companies Slowly Shift Production Away From [Red] China."

The story said, "American companies are seeing more risk there — a perspective forged during the Trump-era trade war, with its tit-for-tat tariffs, and cemented by [Red] China’s saber-rattling after Speaker Nancy Pelosi’s visit to Taiwan last month. They fear that basing a supply chain largely in [Red] China may thrust them into the middle of its escalating conflict with the United States over Taiwan."

Labor also is cheaper in India and Vietnam because while you can make tennis shoes for Nike using slaves, making iPhones and the like require skills. 

Lior Susan, founder of Eclipse Venture Capital, told NYT, "The empire of manufacturing in [Red] China is being shaken. More and more capital is going to pull manufacturing out of China and find an alternative."

The story said Red China's covid lockdown stopped the manufacture of iPhones. You can see why Apple would look for an alternative to dependency on Red China.

President Donald John Trump tried to tell them.

On August 24, 2019, NYT reported, "Trump Ordered U.S. Companies to Leave [Red] China. Is That Possible?"

The International Emergency Economic Powers Act of 1977 gave him this power but it was unenforceable. Had the companies left, we would not have had the supply chain mess we still suffer under Biden and Paternity Leave Pete.

Six months later, Red China unleashed covid upon the world.

NYT said only then did Apple officials begin to seek alternatives to Red China.

The story said, "Vietnam, which Apple had already earmarked for AirPods production in 2020, became a much-discussed option, one of the people said. Since then, Apple has started producing its watch in the country and moved some iPad manufacturing there. In Apple’s most recent list of its top 200 suppliers, 20 use factories in Vietnam. By comparison, 155 of the companies operate factories in [Red] China.

"Apple plans to assemble and package a small fraction of this year’s iPhone 14, the company’s flagship device, in India for the first time. While most of the initial and most critical production for that device is happening in [Red] China, Apple will move some of its overall iPhone production to India later — mainly as a way to assess the ability for future manufacturing there, two people familiar with the plans said." 

American companies are run by baby boomers who grew up carrying pictures of Chairman Mao. They failed to understand that he literally was Hitler on steroids slaughtering 50 million to 100 million Chinese and putting millions more in concentration and re-education camps.

Corporate America and the DC deep state viewed Red China as the next Japan, never realizing that Red China would never and never will adopt capitalism and freedom because Chairman Xi and company enjoy nearly omnipotent power that goes unchallenged.

Unlike the USSR, which the free world largely isolated, Red China enjoys annual trade surpluses of up to a trillion dollars. This keeps the communists in power.

Oddly enough, the big winner may be Vietnam.

NYT said, "Five years ago, said Trang Bui, Cushman’s general manager for Vietnam, she showed industrial land to clients once every other month. Now, she travels daily with clients from the United States, Taiwan, South Korea, Japan, Europe and China to see real estate for factories."

Out of the pan into the fire?

Sometimes you must make that leap of faith.


  1. Manufacturing needs to come back here, an economy entirely dependent on service and sales industries will eventually bite in the rear. Who outsourced their steel n medical industries to enemies and potential enemies?

    1. Manufacturing is coming back to North America - primarily US and Mexico. There will be dispersal of the rest through other SE Asian countries that aren't China.

    2. Randy says: “Manufacturing needs to come back here” That will never happen as long as union workers get $30/hour and governors (like Newsom) are moving toward $22/hour for burger-flippers.

    3. EN2 SS says; Randy, check your figures, union benefit packages have been in the $75 and hour and up for years.

  2. Replies
    1. Don't forget china also makes 90% of the antibiotics USA uses! Who in their right mind yrs back, decided to trust these communists with our supply of life saving medicines? Its pretty much the same as Germany trusting Russia to NEVER cut off their oil and NG! Such incompetent people going back to GW Bush the elder!!!

  3. We need to treat China like we treated the USSR and like we still treat Cuba. No ifs, ands or buts.

    1. Difficult to do, when the Bidenshits and all their fellow travelers are in bed with the communists.
      EN2 SS

  4. Good column, Don. Decouple from China and treat them like the pariah they are on the world stage. China never imported any of our values from the western world, but we imported theirs -- totalitarianism, stopping dissent, etc. Bring as much manufacturing home as possible. For the rest, choose countries/regions other than China. Why should we in the west depend on China for critical goods? Welcome news.

  5. Love the reference to "Red" China. I think I will dust off my old picture of Tail Gunner Joe and watch re-runs of Whats My Line on Youtube for the rest of the day

  6. If companies haven't pulled out of China for the above mentioned reasons, watching the banks blocking everybody from accessing their accounts will add fuel for thought.

  7. I wonder how many companies US taxpayers incentivized to move offshore during the early Wild West days of NAFTA and Trans Pacific Partnership...for the children.

    I wonder how many companies US taxpayers are going to incentivize to move back to the US...for the children.

    1. EN2 SS
      Not many, the demoncrats/communists/fascists/leftists are killing the children as fast as possible with the DNA death jab.

  8. Well, I've been saying the Reds are on the brink of collapse. Looks like Big Tech sees it, too.

    American companies are run by baby boomers who grew up wearing pictures of Chairman Mao.

    Some American companies are run by baby boomers who grew up wearing pictures of Chairman Mao.


    PS In the name of all those murdered, thank you for putting the Reds' death toll at a more accurate figure than most.

    I'd heard it was 67 million (as opposed to Stalin's 53 mil),.

  9. I wonder how much Zuckerberg is gonna help the Dems cheat this nov. You know one of the big reasons he funneled money to blacks to cheat in cities was to help out China and get his Tech platforms in there. Didn't happen and now hes butthurt. A lot of these tech companies thought destroying the states would open them to other markets. It didnt work.

  10. They'll search for other hellholes before they bring it back to American. F them to hell.
    Just imagine how much better off we would have been had the crypto commie Kissinger and the rest of the Communist lovers hadn't destroyed good paying jobs in this country. The SOB is still alive. Snakes live a long time.

  11. King for a day I would impose a 100% tariff on every item, no matter how small, made in China. Trusting the Chicoms, who still wear the bloody shirt of worldwide communist revolution underneath their thin veneer of capitalism and civilized culture, to manufacture our medicines and critical parts, is f**king dumb as a box of rocks.


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