Saturday, December 24, 2016

Meet the Chinese Billionaire Who's Moving Manufacturing to the U.S. to Cut Costs

Via Billy

Cao Dewang, center, Chairman of Fuyao Group and Chairman of Fuyao Glass Industry Group Co., is interviewed as he arrives at the Great Hall of the People to attend the opening session for the Fourth Session of the 12th National Committee of the CPPCC (Chinese People's Political Consultative Conference) in Beijing, China, 3 March 2016.

While it has been said for a long time that the U.S. is bleeding manufacturing jobs overseas, particularly to China, some businesses have been moving operations the other way round.

And now, the head of a leading Chinese glass maker making the same move has openly questioned if his country really is such a lucrative destination for offshore factories, reports Hong Kong newspaper the South China Morning Post.

Overall speaking, the tax burden for manufacturers in China is 35% higher than in the U.S., Cao Dewang told China Business Network in an interview. He added that a combination of cheap land, reasonable energy prices and other incentives means that, despite higher manufacturing costs, he can still make more money by making glass in the U.S. than by exporting Chinese-made panes to the U.S. market.

More @ MSN

6 comments:

  1. Problem with this is they move there workforce with them. Diakin A/C is built in Houston but speaking to those that tour the plant there doesn't appear to many Americans working there.

    ReplyDelete
  2. OT Merry Christmas.

    ReplyDelete
    Replies
    1. The same to you! It's Christmas Eve here in Saigon. 8.14 PM.

      Delete
  3. At least working in the US is better than China. It matters where the work is done.

    Ideally we want those jobs, though! Who owns the capital doesn't matter so much to me if we can pressure market wages higher.

    We could end much of this wage-envy if simply allowing wages to pressure higher. Then it would be OK to be rich or successful, and those who do work hard could indeed get ahead a bit. A $15 wage just isn't much, and it makes no sense to bring in unskilled labour if we can't even pay those who are here $15/hr. There should be no unskilled labour until market wages have risen to at least $15.

    ReplyDelete
    Replies
    1. Agreed, but $15 an hour is already having companies go to automation. Damn if you do and damn if you don't.

      Delete