Moving Factories From China to Elsewhere

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A trade truce between the United States and China has calmed nerves, but it won’t stop the broader movement of companies to countries like Vietnam.

When President Trump started a trade war with China during his first term, Simon Lichtenberg decided to ride it out. He owned factories making leather sofas in China since the 1990s and figured the two sides would resolve the dispute.

He doesn’t think that anymore. Mr. Lichtenberg invested around $20 million to move his factory for American clients to Vietnam this year. Now, not even the cease-fire Mr. Trump has reached with China has changed his outlook that deep-seated animosity between the countries has altered the economics of his business.

Read:  Why Factories Will Keep Looking for Alternatives to China

from The Global Small Business Blog https://ift.tt/rokGR8a