"Made In China" Soon To Be Replaced By "Made In Taiwan"

Trump inflicted much pain on China and vice versa. This is always the case in trade wars. Sideline beneficiaries abound.

The World’s Top Bicycle Maker Says the Era of ‘Made in China’ Is Over.

Good News?

No. The US did no benefit in the slightest.

Giant Manufacturing Co. saw the writing on the wall early on. The world’s biggest bicycle maker started moving production of U.S.-bound orders out of its China facilities to its home base in Taiwan as soon as it heard Donald Trump threaten tariff action in September.

“When Trump announced the plan of 25% tariffs, we took it seriously,” Chairwoman Bonnie Tu said in an interview at Giant’s Taichung City headquarters in Taiwan. “We started moving before he shut his mouth.”

Giant is part of a growing number of global firms that are pivoting production out of China in reaction to the increasingly hostile trade relations between the two superpowers. Intel Corp. this week became the latest to say it’s reviewing its global supply chain, while Li & Fung Ltd., the world’s largest supplier of consumer goods, said the trade war is spurring it to diversify away from China.

The switch, however, comes with higher costs for employee payouts, automation and no China-like economy of scale for suppliers. Tu declined to peg the relocation costs beyond saying the company’s “bottom line would be better without the U.S.-China trade war.”

What if Trump and China Agree to a Deal?

The answer is truly amusing.

Giant is open to reverting production to its Chinese plants if the U.S. and China are able to hammer out a trade deal. If America “decides to remove the 25% tariff, we will move the production back to China right away,” Tu said.

US manufacturing is not at all in the picture!

What About Apple (AAPL)?

Inquiring minds may be wondering about the iPhone.

The Wall Street Journal reports Foxconn Says Prepared to Move Apple Production Out of China if Necessary

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Norman Mogil 6 months ago Contributor's comment

Absolutely correct analysis of how production will ultimately settle

David Reynolds 6 months ago Member's comment

The biggest benefit to US in this #tradewar is to stem the forced tech transfers and wake everyone up to what’s going on.

Leslie Miriam 6 months ago Member's comment

Yes, I hadn't thought of it, but it does seem clear to me now that this is the most obvious outcome of the #Trump's #TradeWar