US state and local officials are shutting off investment by China. What should global companies do?
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- čas přidán 28. 04. 2024
- Numerous states, including Virginia, Iowa, Michigan, Indiana, and Florida, are targeting inbound China investment, derailing billions of dollars in planned factory expansions and thousands of jobs.
In Arkansas, a law recently passed which retroactively requires Sygenta -- a company based in Switzerland but recently acquired by a Chinese firm -- to sell acreage and pay heavy fines, despite having a presence in Arkansas for 36 years, and in the US for over 50.
Global manufacturing executives should view these local developments with alarm. What assurances are even possible, with respect to the future political environment not only at the international level, but on countless local ones? Should extreme caution not be exercised in allocating investment capital to the United States by international companies, not merely from China, but by companies everywhere?
Resources and links:
Local politicians block Chinese land purchases, factory plans, and research
www.wsj.com/politics/states-t...
About Sygenta
www.syngenta-us.com/about-us/ - Věda a technologie
US is uninvestable for foreign co
US is making itself unpalatable
Don't invest in US as it is a pirate country.
China needs to fully decouple from the US, allowing Americans to live a high value-added and inflationary life.
Good stuff! Also a high no. of states will either go independent or apply to join/re-join Mexico 🤭🤭🥳🥳
Let it be hyperinflation to the point they will eat insects
What will the fatsos do when Walmart closes? 😮
China has deflation and can only export its way out of trouble since the domestic market is moribund and nobody wants to spend.
Not high value-added but high price-added. Yes, way to go!
U.S. Secretary of State Antony Blinken called on China to provide a level playing field for American businesses. What hypocrisy.
If you cannot compete phase out Blinken
US has declined too far in the name of profitability
This is a blessing in disguise. Chinese companies should avoid investing in US , it’s just unsafe to do so.
Once you are successful in the US the US government will try to foreclose and seize your business
I will keep buying from china
Don't think not in the future if you live in the US, US will ban and sanction stuff from china and US allies will follow suite.
Yes. I will keep buying too and so will almost everyone else.
10-15% might not buy Chinese goods, mostly from the US and the west but the rest of the world (85-90%) will buy. Who wins now?
invest all your money in chinese real estate to protect your wealth!
@@XYZ-bi9eb Mid to long term, it's still much much better than designed toilet papers. 😂
"Do not interrupt your enemy while they are making mistakes."
Ask them to stop stupid things, so that they can't stop because they won't do whatever you ask😂
'China asks us to stop tariffs’
'China asks us to stop banning chips export to China’
Behind his calm demeanor you can tell that Kevin is aggravated in some videos. This is definitely one of them (and I agree). All this short-term thinking doesn't just hurt consumers now, but the U.S. as a whole, into the far future.
Companies should avoid US at all costs.
Exactly and I think it's already happening or going to happen very soon especially by those companies from China. Chinese companies are now actually trying to move away from the US.
How can it? The US is China's most profitable market unless it wants to concentrate on selling rubber shoes to the Global South. ( Not the Philippines. They dont like China anymore)
They avoid it by avoiding it.
The Chinese internal market alone can amount to 1.2 billion people, against America's 350 million.
Let the Americans pay more for less, just as they are doing with their cars and their crummy 4G. Ultimately, who gives af?
@@arthurlincoln9093 Money is not everything and China will let go and probably look elsewhere for better peaceful and fairer trade and partnership if the US keeps attacking China. The US is only 1 country and it won't be long before it's huge debts will cause extremely serious economic issues and implications. That is the real true facts. Without China, the US will even suffer many times worse than currently.
Except the Drug Cartels. 😅😅😅
No worry. Invest in South East Asia....we welcome China money.
China can and will invest in the rest of the world.
Really ?
Look at the way the Philippines is treating China, one would be foolish to trust the motive of those in SEA
Also South America and Africa are also welcome
Maybe with the exception of Philippines. For what they do recently at sea they don't deserve the Chinese goodwill.
Except Philippines
Tariffs is an indirect tax on consumers.
Tariffs, Fees, Tax, Licensing, are all part of the rent-seeking concept of extorting money from the public
Almost as direct as you can get - the importers immediately pass it on to the consumers.
Keep in mind for the vast majority of its existence as a country, US has had very high tariffs. Nothing very wrong about it if you want to protect yourself on a global market. But you should, at the same time, do all you can to build your own competitiveness, innovation, manufacturing sector and so on. Not protect for protecting, but at the same time dismantling your own economy in favor of all the money being siphoned out by 1% financial elites.
O shopping
And yet the consumers applauded on the high tariffs on Chinese imports! Lol
China rarely stoops to the childish level of "tit for tat" that parts of the US play at. But there are a lot of US businesses in China and patience can wear thin after a little while!
Indeed, the current Arab boycott of USA brands is very successful.
There is no lack of investment and factory friendly countries elsewhere.
Who in their right mind would want to risk it all and build anything in US?
USA is acting like a bully gone awry.
China should just decouple from the USA.
Let americans buy expensive made in USA products.
Let everyone else buy cheap and reasonable priced Chinese products.
We love cheap Chinese products
It is risky to set up shop in the U.S. when you get successful, you will be asked to sell to a U.S. company on the grounds of national security concerns.
Yes, recently Tiktok is a big example.
This could be a blessing in disguise for the Chinese companies. Why’d you invest in, and create jobs for, the US? Your US assets could be seized in the name of “national security”.
Not just the cost right? The workers and quality of end products too, not to mention the anti-China political sentiments for years to come. Who in the right minds wants to set up enterprises (not shops) in the U.S.?
Oh let Americans pay more for everything!
。 。 。 。 。 Sooner or later, the American Dollar will be worth as much as the Japanese Yen
@@verypleasantguy maybe a battery gun is needed there too 😂
Keep a collapsing China / Chinese products completely out of US
Why punish the people for their corrupt "rulers"?
Tension is currently around China alleged interference in the US election. Well you should know those Chinese bribes were caught under Biden's investigation..
Great news. Great advice.
Avoid the US.
Then who will want to invest in the US if this is the case ???
They will force EU, Britain, Australia, Japan, South Korea....
Simple, China no need to invest in US. Stop all the trades and products
Looks like the US really want to isolate themselves from the world.🤭
😂😂
China always was ISOLATED from the World.....Even today, China has no International friends
Looks like they are building the wall (not the border wall😂😂) higher n higher to exclude themselves from the rest of the world
Americans are surrounding themselves
All the politicians in power are voted by the PEOPLE.
If the policy or law created by these politicians that are detrimental to the PEOPLE future and livelihood. There is NOBODY to blame , except the PEOPLE.
Theoretically, yes, but they are not a true Democracy.
Our system is corrupted, we have no say.
Capital investment confiscation or forced divestment ( like Tik Tok ) and fines and penalties would far outweighs whatever benefits an onsite facilities may bring.
Didn't Blinken recently called on China to treat US companies fairly?
That’s the new U.S. business card. “Don’t “.
The WEF & elites main goal is to let people leave the USA who are not already rich.
and then the WEEF will grab the land and property and transfer them to a shielded holding company, let's call it the WorldDeepCorp. It is already happening to the farmers in Holland. Canada is setting up legislation to use the nitrogen excuse. Ultimately, there will be a new class of world rulers similar to the invincible and untouchable royal families, but they are invisible to the masses. Freedom and Democracy will continue to be the banner-carrying crusade.
ya know... ..
I know this thought will scare a lot of people:
the WEEF will swoop in to grab the land and property and transfer them to a shielded holding company, let's call it the WorldDeepCorp. It is already happening to the farmers in Holland. Canada is setting up legislation to use the nitrogen excuse. Ultimately, there will be a new class of world rulers similar to the invincible and untouchable royal families, but they are imperceptible to the masses. Freedom and Democracy will continue to be the banner-carrying crusade.
What is the elites? What do they do for a living 😂
While at the same time flooding the place with illegals? How does that make sense?
Chinese Exclusion Act 2.0
US self-containment Act
@@Dordordthat will require a debt default by government and standard of living reset by citizenry.
America is uninvestable due to American idiocy.
usa: i want my cake and eat it too!
Never trust the American hypocrite. They will attempt to foreclosure your factory due to their political stand towards China
It's called de-industrialization. Its an agenda, not idiocy
@@DerekCoveart-dk8iz What goes up must come down sooner or later like the British empire
Tariifs are taxes, which are paid by the citizens of the USA.
Not by the factories in the PRC.
Seem that most Americans cannot understand this simple concept. They just believe whatever their politician (cult leader) tells them.
Gone are the glory days of industrialized America. Welcome are the days of politicians, attorneys and mental healthcare. Should China decouples, and I would not blame them, spoons , forks, fridges and tv sets, even screws and bolts needed for construction maintenance and repair will have to be sourced elsewhere, at double to triple the price, because it's the sourcing, the scale and the labor, manufacturing, logistic and subsidies from China that allow us to afford anything at all in this country. Yes we can build factories in Mexico and produce cheaper there, but even they cannot build anything cheaper without essential components from China's supply chain, mostly in the components of electronics and micro controllers. Wake up USA !!!
yeah, i think america must wake up and decouple from the ccp chinese and putin russian dictatorships. we don't need to make our enemies rich! 🤣🤣🤣🤣🤣🤣🤣🤣🤣
The US hate Amlo, the socialist president of Mexico who told them to mind their own business instead of interfering in his country. They will cut that road off too if they can in imposing quotas, taxes on import or sanctions. Idiots!
US is now Indianising. 😳 MNCs graveyard.
your analysis are the best. Simple and direct. Thank you
I'm from Indonesia. I grew up in a generally west-leaning society. Western ideas and products (especially US) ranging from music, movies, shoes, etc even fast food restaurant (especially KFC) were very popular amongst us the youngsters.
This was a very stark contrast compared to my parents time. In their era, there were a lot of anti west (mainly US and UK) rhetoric. Western products were either banned or very difficult to get. Even the songs from The Beatles and other western musicians were also banned. So my generation enjoyed something that our parents could only dream of.
A generation ahead (now), who would have thought that my parents generation's experience is happening again, but this time it happens in the west (especially US). Those strong anti china rhetoric and the banning of chinese products, etc resembles the anti west we used to have 60 years ago!
The west that used to be vibrant, confident, and open-minded which we all used to admire now becomes rigid, too ideological, and closed.
Just smacks of good ol' Racism but using the term Communism to avoid being called out as a Racist.
Most rich people stay rich by spending like the poor and investing without stopping then most poor people stay poor by spending like the rich yet not investing like the rich but impressing them
People prefer to spend money on liabilities, Rather than investing in assets and be very profitable
You are so correct! Save, invest and spend for necessities and a few small luxuries relatives to one's total assets ratio.
Thank you Angela Christine Derle for $60,000👍🏻. There are so many opportunities to make money here on CZcams but most people don’t know. Thank you for continuing updates I'm favoured, $60,000 every two weeks ! I can now give back to the locals in my community and also support God's work and the church. God bless America
Hello how do you make such monthly ?? I'm a born Christian and sometimes I feel so down 🤦 of myself because of low finance but I still believe in God.
Thanks to my co-worker (Alex) who suggested Ms Angela Christine Derle
One of the reasons China was successful in attracting investment is that it provided a very stable environment for business. Businesses knew that it would not have any surprised, not have to deal with any sort of extortion. The US is now doing exactly the opposite of what China did to become successful. Lol. Talk about stupidity. You are supposed to learn from the successes of others. That is why first Japan, and then Taiwan and South Korea, and later China and Vietnam have been so successful
The *MAIN* reason China was successful in attracting investment was America said so
It was USA which brought in the Western countries to invest in China
Before that, only the Chinese diaspora from South East Asia dare to set up factories inside China
All those 'China Days' are gone....China is collapsing
Before long, no build in and no sell to the US would be basic business logic for foreign companies😅
Lol, same rules for the Indian. Cash first only policy, and made in China only, not make a local production there.
Thanks for all the great reports.
Greetings, madness has taken over the majority of politicians in the US. What has the champion of free trade become?
Another characteristic of a failing state, ----economic isolation.
Any right minded manufacturer from CHINA should just keep production in China, and export overseas. Pay the tariffs, and import taxes wherever and whatever they are. Land, labor, capital and know how all in China. Sell quality products. China can scale up production easily here with abundant resources, cheaper labor costs and raw materials.
No, let the importing country pay the tariffs.
Chinese don't pay the tariffs, Americans do.
Countries around the world have various local protection policies, which I think are reasonable. Everyone wants industry and job opportunities, and Chinese people don’t mind investing globally as mutual prosperity is our goal. However, I can't understand setting up numerous obstacles to investment or even blocking it altogether
But other countries...are not FOOLS...they are also REDUCING IMPORTS from China....In the coming Years China EXPORTS will come CRASHING down
Tariffs are paid by the importers.
This country had endless opportunites till globalisation happened. Buffet used to say: Globalisation is americanisation. Maybe he was wrong
It spreaded America to the world, just that the world has exceptional people too.
So, you expect everyone in the world especially the 1.4 billion Chinese will always be poor and subservient to the West especially uncle sam?
@@pr0newbiepropaganda is the greatest American export, and it is very effective.
Chinese noodle and Panda Express is a national security. 😂
Kevin, I thought that in the US one cannot make laws to target specific individuals, much less name them. When done by Central America countries in the early part of the last century, the US would have supported coups (we did) to overthrow such efforts at "nationalizations". We have become a lawless nation. Thanks for all your work -- usually short, full of facts and sources, and therefore sweet.
TSMC must have regret for moving it's company to the US.
The sharks " were " already circling TSMC...
TSMC will never regret. Taiwanese will kowtow to the US whenever or wherever.
@@seowkhoontan9534 Sold for pennies once they rewrite the laws.
Its time for China to return the love to GM, FORD, Boeing, McDonalds, Coca-Cola, etc!
The feeling is mutual 😅
Only if that benefits Chinese economy and the livelihood of the people.
@@user-rb5qy3px1zclose those junk food is good for livelihood of the people and the economy. Just make another Luckin coffee, J chicken etc to replace those junk food chain
Chinese won't do that, they are not stupid
@@Dordord except Boeing
At this moment and in the near future, opening shop in US is extremely risky
especially for Chinese companies. Who can guarantee that these companies
are safe from regulatory WH control. Better to invest in other countries that
are friendly and stable.
What's their reason(s) for having these legislations besides being racially anti-Chinese?
Chinese exclusion act part 2!
Going against the trend of the times, America's path will become narrower and narrower
When the US buyer imports goods subject to tariffs from China, they pay the tariff to the US government. This cost, along with any markup, is typically passed on to the end consumer, meaning consumers ultimately bear the burden of tariffs through higher prices. The Chinese seller, however, does not directly pay the tariff; it's the importer in the US who bears that responsibility.
I am wondering if just imposing tariffs is a way for US government to solve their debt problem. Since taxes is a bad word and tariffs on China is a positive word both increase government revenue.
Foxconn...what is it's future now in America?
Didn’t we go through this with Japanese businesses before?
Yes and US of A f-ed Japan's economy
China must focus on BRICS+ and Global Majority countries. Decoupling from the US will benefit China in the long term.
Americans tout freedom and democracy but if we were to be honest, this system of electing the most photogenic, well spoken and least intelligent and qualified people as leaders who will never, ever have a long-term plan, is a disaster. What every country needs is a strong, centralized authority government that operates on merit, and mandates itself for the betterment of the nation as a whole. That is what China and Russia have.
The disconnect is so severe. Once politicians target one country and change rules at will, trust is gone and business people can only plan only 3-4 years ahead for any project.
Soon, USA citizens and residents have the choice of purchasing Made in USA products at perhaps at least 100% higher prices than imported goods (cheaper even with 40% tariffs).
No countries in the world would (if they have a choice) buy Made in USA products. Only Americans would purchase these items at greatly inflated prices, and as time goes, with inflation factored in, the prices of Made in USA goods will be un marketable anywhere else.
Huawei business in US and UK have been told to get out, and tik tok have to go in a years time or sell to US company.
America has gone mad
UK semi conductor company in uk bought and owned by chinese have been told by uk gov to sell its shares in the uk semi conductor company, so its not just US doing it.
Americans love to believe they can win by isolating themselves. We don't want to believe in a world of cooperating partners.
Chinese shouldn't invest in US because US will pass laws to extort their money later. 😅 😂
Like India🤣🤣🤣
AmeriKKKan justice system is mess or any law n order policies or police too. Last thing I do trust UAss system protect our Asian investments inventions businesses factories there, ton lawsuit loot riot accusations robbery high jack corona addict homeless bozo beast bigot bullies will destroy it. Forget it unless lot Asian Chinese immigrants in power of America.
Doing business in the US is becoming more and more like doing business in India.
Under English Law the rule of law demands that laws must not be retrospective.
Not in Murica!
Retroactive laws are ultra vires.
@@peterbranagan1010yes, what a sad state of affairs.
Kevin, how about the rip and replace, most of the small US telecom companies have been bankrupted because they were told by the US' FCC not to use Huawei and ZTE equipment 's 5G equipment.
same goes with india. After you invested, they find ways and means to take your factory with thousands of excuses you never dream of wheninvesting there.
"Eminent domain abuse" or "land grabbing" has been a longstanding practice among powerful figures in the US for centuries. Their actions are morally reprehensible, yet the immense power they wield often shields them from accountability."
By rule of thumb if it cost more than twice as much in US, it does not justify to establish factory facility to save 25% tariffs. Unless for very high value goods with fat margins, US is not the place for production
Import tariffs is paid for by the consumers. To the extent that higher consumer price discourage consumption (which demand for basic needs can be inelastic), it does not hurt exports as much. It is the US consumers who will find their money getting smaller.
Tariffs can come n go and with such uncertainty it is not business prudence to move production to US.
So greeting from the US, oh by the way if we decide we need your company land and resources, well just take them. Oh boy aint you in trouble.
China should reciprocate and impose tariffs for US goods
Lived in Arkansas ...one of the poorest state in USA, just lost more revenues as the farmers etc will pay more for their seeds from US based greedy firms....likely to bankrupt due to policies and weather etc
This gentleman is without doubt my favourite business commentator. He is always on point with his evidence-based analysis and evaluation. Ha, I like the way he always says to be good. Well, I certainly make every effort to be godly every day.... Similar but not the same!😊
BRICS needs to hurry up ans setup their own currency
BRICS currency can succeed quickly,,...only if China is kept out
Kevin I'm working on the maritime law sector and at this end lawmakers such as IMO, IACS etc are coming up with so many law enforcement that it is very difficult to keep up to date. All of this law are drafted in a way that will be very difficult to be a shipping company today.
This is Chinese Exclusion Act 2.0!
No need to produce anything or at the very least export anything when you can print.
Let China put a 25% export tariff on everything sent to the US, that should help inflation.
Love your insights...
I saw all the Korean and Japanese plants over the border from California in Mexico and even in Monterrey, Mexico. They are very good workers, well educated and well motivated. They get decent wages and BENEFITS. Those products easily cross the border into the US. Why not China doing it?
Did you see on the news week ago, the 99cent store, will be closed 371 stores in 4 states. And many stores are dying now all around in the United States.
I only shop at temu and aliexpress now....couldn't afford Walmart and amazon on my 100k used to be good salary. Everythings is being nickel and dime to death, insurances and tuitions up up up....
US becoming more protectionist day by day. Should Trump return to power, more toxic environment if you are investing in US. With pathetic lawmakers from both sides of the aisle continues to come up with unfair trade legislation targeting foreign companies, it seems more riskier to invest in US now and in next 10-20 years.
You are free to rent an office to start a real estate broker business. My teacher who is an American told me in 20 years US will not make anything, they just sell insurance to each other.
America has lost the plot
Very cogent argument. Great logic.
Yes, that's the problem with American politics. The politicians in power now may invite you to spend 100's of millions of dollars to invest in the US. But 4 years later another politician may be in power and may a a threat to your investments.
Sadly, they will all end up as losers, but being losers all the past decades, they will
remain losers till the end. Investors meanwhile, will be laughing all the way to the bank.
6:30 there is a lone house hidden among the trees besides the road. Imagine you are the owner staying there with such surroundings, how's the feeling?
The worlds largest economy is China and it is also a rising - already among the largest - international investor.
If you invest in USA you will have just that much smaller a market to sell a company to. So you shouldnt. Even an American should consider starting it in say Mexico.
Although China is the #1 global manufacturer, it's puny economy in comparison to the US only a little over half as measured in GDP and likely less than half if you remove property development investment.
The TRUTH....China is collapsing ! Go deep INSIDE China,,,check the REALITY
Hollywood movies?
Bollywood movies?
@@tonysu8860 Chinese economy overtook the US economy in 2014 - check with the IMF. If you remove all the financial bubble from the US economy, it is smaller than Italy's.
@@tonysu8860
GDP is just numbers on paper and has no meaning! It can't even build houses for homeless people, it can't build new bridges or new train stations, the US government can't because it doesn't have the money! So it has to go into debt first by printing money, so never again calling the US economy number 1 because it is only a note on paper!
Some day our kids may need to immigrate to find opportunities
No, your kids have to emigrate. And those hordes from the south will want to immigrate.
Excellent advice.
your analysis is quite , in depth + with future factors that will impact one's investments, answer is
one has to be utterly stupid to invest ANYWHERE IN NORTH AMERICA, i for one, will not invest
ANYTHING ( BE THE INVESTMENT IN $ OR MY TIME) IN NORTH AMERICA OR EUROPE, africa
would be a better target
Thank you, good report. I thought you were just another American teacher in China reporting on how it's not what you expected and how good the food is! You're a bit deeper than that. What's your background?
In addition to the concerns you expressed for Chinese companies investing in US manufacturing, there is also CUSMA to consider. Many Chinese have and many continue to look into (notably BYD) Mexico as THE appealing place to manufacture and to export tariff-free into the USA and Canada as well as to service the Mexican market. Nuevo Leone is becoming the place in Mexico for Chinese firms due in part to its strong business support from the governor (Samuel García Sepúlvedaon) on down and its proximity to the US border.
Notably though Trump is threatening tariffs on exports from Mexico!
How do most of you guys still making profit? Even with the downturn of economy and ever increasing life standards
Well, I picked the challenge to put my finances in order. Then I invested in cryptocurrency and stocks, through the assistance of my discretionary fund manager
Mrs Caroline Arnold
The first step to successful investment is figuring your goals and risk tolerance either on your own or with the help of a financial professional but it's very advisable you make use of professional
Yeah that's right I think it's right to invest with professional at least it saves the trauma of too much loses
Isn't she the same Mrs Caroline Arnold that my neighbors are talking about, she has to be a perfect expect for people to talk about her so well.
Syngenta was a bad example. They have always gone out of they’re way to rear end everyone around them
It isn't worth investing in the US.
There is only one thing you really have to think about when owning a company. That is that you want to be the best in the business. Do not worry what others do, but worry what you do and what your customers think of you. If your products are that good then no matter what is going on out there, the end customer will seek those products. You must understand the market is the most powerful force. It can topple politicians and even presidents.
is like Australia in the 80s/90s ban imports n high tariffs. endup economy stagnant. usa is heading same. good luck
NO MORE COMPETITION. NO MORE OPEN MARKET. BECAUSE THEY ARE LOSING
what you have described is fragmented decoupling with China. The next 5 to 10 years will be painful. It will be interesting to see what emerges after this decoupling with global trade, the global south, G7, , BRICS, China, Russia and the US 🤔
These smart politicians are getting smarter in building barriers to manufacturers for consumer products. However, reckon they would open their arms to manufacturers in all sorts military weapons from ammunition to bombers.