Reference News Network, September 3 report: The U.S. "Politico" website published an article titled "Trump's Efforts to Attract Companies to Leave China Are Backfiring" on August 31. The following is a translated version of the report:

President Trump promised during his campaign that his trade policies would lead to a large-scale return of manufacturing from China to the United States. However, so far, many American companies operating in China have remained in place.

Officials from several companies and business groups said this was the least risky option, citing the comprehensive tariff policy imposed by Trump and the uncertainty of the president's future trade measures.

A July survey conducted by the U.S.-China Business Council also confirmed this. The organization found that about two-thirds of American companies operating in China tended to maintain their investment plans in China.

At the same time, American companies that rely on Chinese goods hope to have a clearer understanding of the trade situation in a few months, as the Trump administration claims it will reach a comprehensive trade agreement with China at that time.

A federal appellate court recently ruled that Trump did not have the authority to impose "reciprocal tariffs" on China and other countries. This may lead to a potential conflict at the Supreme Court later this year, and it also means more uncertainty.

Stephen Lamar, CEO of the American Apparel & Footwear Association, said that Trump likes to raise tariffs on certain countries for issues unrelated to trade, and combined with the lack of final results in U.S.-China trade negotiations, this has prompted many companies that purchase components in China to refrain from taking action, saying, "We want to wait until we have a general idea of the direction of the situation."

In this situation, companies that rely on products manufactured in China and its neighboring countries are more affected, as they face the impact of higher tariffs, but they are unable to make decisions on how to arrange the production of products that cannot be made in the U.S.

This situation is beginning to affect American consumers. Second-quarter earnings reports from major retailers such as Target, Walmart, and Home Depot show that tariffs have led to increased costs. For example, according to data from Telsa Consulting Group, the cost of a Barbie doll at Target has increased by 42.9% since April.

These companies stated in phone calls with investors that store prices will continue to rise as the important holiday shopping season in the U.S. approaches.

Some American companies have fallen into difficulty because their customers can no longer afford the price increases driven by tariffs. Since June, several U.S. home goods retailers and toy companies have declared bankruptcy and attributed it to tariffs.

Kerr Gibbs, former chairman of the Shanghai American Chamber of Commerce and partner at the consulting firm Vision Restructuring, pointed out that the bankrupt companies "pointed their fingers at tariffs and at uncertainty... this is the reason for the paralysis of actions."

The U.S.-China Business Council found in its survey that although American companies operating in China feel the impact of trade tensions, a considerable number still plan to expand their investments this year, both to continue profiting from the Chinese market and because they need their operations in China to maintain global competitiveness.

Cameron Johnson, a partner at a supply chain consulting company in Shanghai, said, "None of this will 'return'—the U.S. does not have the required ecosystem, workforce, tax incentives, and funding." (Translated by Zhu Li)

Original article: https://www.toutiao.com/article/7545700243392741907/

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