skip to Main Content
MSJ NEWS see latest news

American Companies Largely Ignoring Demands to “Decouple” From China

  • President Donald Trump offers both incentives and threats in effort to get American companies to move manufacturing out of China
  • In a recent survey, less than 4 percent of responding American companies with operations in China say they are moving some production to the United States
  • Companies begin to diversify production and supply chains due to COVID-19, but U.S. remains a lower ranked choice

At a recent press conference, President Donald Trump clarified a longstanding aspiration to increase manufacturing in the United States by saying he wanted the nation to “end [its] reliance on China once and for all.” Trump proposed that companies keeping their manufacturing operations in the U.S. receive tax credits, while those relying on China for manufacturing would be subject to tariffs and ineligible for federal contracts.

Yet a recent survey of American businesses that own or outsource manufacturing operations in China found that a majority do not intend to relocate these operations. Seventy percent said they have no plans to shift their production outside of China, and just 3.7 percent said some of their operations were being moved from China to the U.S.

While the COVID-19 pandemic has prompted many companies to diversify their production, Southeast Asia and India have been more popular destinations for relocating operations. Companies have also been more likely to consider “near shoring” operations in Mexico and other North American countries to shorten supply lines to the U.S.

Spread the Word

More To Explore

Expert Summaries

Know Your Competitors

By Denis Jakuc 

There are tons of benefits to knowing who your competitors are—what they’re offering, their strengths and weaknesses. That knowledge can help you make your products and services stand out,

Latest News

Join with Free InnovatorsLINK Account

Start accessing all the free member benefits and valuable content on the InnovatorsLINK platform. Create a BizLINK listing to boost brand exposure, receive the weekly Main Street Journal newsletter, engage in forums, get full access to free content, and more.