"There are 1 million reasons without China"

The US "Los Angeles Times" article on August 28th, original title: Foreign companies want to leave China, but breaking up may be more difficult than ever before.

Fabian Gosteg in 2018 realized that it was an advantage of its manufacturing company -all produced its electronic products and consumer goods in China -it was quickly becoming a headache. Trump had started a trade war against China at the time. Although there are many other options on paper, such as Vietnam, Thailand, Malaysia, Indonesia, and the Philippines, Grog found that it turns out that relocation production is not easy. Four years later, his company still depends on factories in southern China. Due to the worsening US -China relations, continuous epidemic prevention and control, and the ghost of the Taiwan Strait War, multinational companies facing a series of new challenges in China in China. At the same time, experience in the past few years shows that there is absolutely no magic medicine that the world depends on China. Michael Walsh, a partner of Faifada Law Firm, former director of the Office of the US Department of Commerce, said: "The company is unwilling to do this."

Gosolg (right) The United States "Los Angeles Times" reports pictures

In 2019, Grog began to evaluate the possibility of transferring some manufacturing capacity to Vietnam, and set up a full -time team. But 8 months later, he gave up his plan because about half of the price of project prices was disturbed; product development also needed longer, and products that could be completed in China in just 3 weeks need 6 months in Vietnam. At the end of 2020, Gosolge turned to India farther -although it bordered China, it was unlikely to become the center of any major conflict, but "many work will be done here to grow."

Consultants and lawyers said that although many companies are rarely discussed publicly due to political sensitivity, the road to leaving China has obstacled obstacles and often takes many years. The replacement options of Vietnam are difficult to meet the demand, and the Russian -Ukraine conflict has ruled out the possibility of Eastern Europe. "Each of our customers wants to say that stop making in China," said Dan Harris, the founder of Harris Borin Law Firm who provided consulting services overseas in the United States, said, but "1 million reasons can be able to be able to Explain that this is by no means easy. "

Although it can easily obtain most raw materials such as semiconductor, zipper and lace rings, exporting such materials to China will be pushed up to China. For some companies, what is more worrying than profitability is that the chain chain of the new facility without testing may lead to the failure to deliver the final product.

Karson, the founder of Asian Jing, who served in European companies, said that some of his customers have abandoned a diversified business plan. For companies that cater to Chinese consumers, it is best to take root here. Those companies that depend on low -cost and high -yield have benefited a lot from China's logistics and infrastructure, and they are unwilling to leave even if they face more and more uncertainty. "China is still very interested in retaining the status of the world's factories," said Zheng Yi, president of the Shanghai American Chamber of Commerce, said, "Many local governments actively show the multinational companies to see what help can be provided."

(Author Stephani Yang, Cui Xiaodong Translation)

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