It Is Purely Wishful Thinking To Force Us Companies To Withdraw From China By Administrative Means.

The Chinese side has had to introduce specific Countermoves in the light of the fact that the US side will levy a 10% tariff on 300 billion US dollars in goods exported to China. For this reason, some people in the US ordered us companies to withdraw from China immediately, find alternatives or invest in production in the US. This statement violates the laws of market economy and is generally opposed by the American economic circles.

Since the outbreak of Sino US economic and trade frictions, some people in the United States have shouted more than once, ordering them to move away from China as soon as possible. This is an administrative means of protectionism, not only seriously interfering with the free operation of American enterprises, but also will cause serious interference and damage to the global economic order.

Nowadays, countries in the world, based on different economic endowments, have already formed a stable network of global value chains, supply chains and industrial chains through market allocation and division of labor. Multinational enterprises allocate resources in the global market based on the law of market economy, so as to maximize profits. They can not follow the direction of administrative means, let the east go east and let west go west. Therefore, some people in the US are against the economic laws and are generally opposed by the American economic circles.

The National Retail Federation recently issued a statement emphasizing that "finding alternative sources is a costly and lengthy process". "It is unrealistic for US retailers to leave the second largest economies in the world. Business in China enables us to reach Chinese customers and develop offshore markets, which in turn enables us to increase and bring more opportunities to American workers, businesses and consumers." The National Chamber of Commerce of the United States also said that the investment of American enterprises in China is beneficial to the two peoples and hopes that the United States and China will return to the negotiating table as soon as possible. The Wall Street journal recently pointed out that some global manufacturers who want to give up the Chinese market have finally discovered that Vietnam and other countries can not match China's conditions. It is impossible for them to shift the production base completely from China.

At present, China's economy is turning to high quality development, and its position in the global industrial chain and value chain has gradually increased. Some labor-intensive industries have moved out, which is in line with the development law of global industrial transfer, and is a normal phenomenon in the market economy. As China's economic transformation and upgrading and the dividend policy of reform and opening up continue to release, China's competitiveness in attracting foreign investment remains unmatched by other economies.

First of all, China has a population of nearly 1 billion 400 million supermarkets, a growing middle class group, hundreds of millions of high-quality labor force, modern infrastructure network, the world's most complete manufacturing sectors and other advantages superimposed, so that the Chinese market has unique endowments and vitality, and has created huge profits for many multinational companies. In 2017, the actual sales revenue of Chinese US funded enterprises was about US $700 billion and the profit was more than US $50 billion. Goldman Sachs 2018 research report shows that if Apple Corp moves production and assembly back to the United States, the production cost will increase by 37%.

Secondly, in the face of protectionist "adverse wind", China has substantially reduced the entry threshold for foreign investment, promoted the opening up and speed up of the service industry and the financial industry, and strengthened the protection of intellectual property rights, which has given the foreign enterprises a "reassurance". The world bank reported that China ranked thirty-second in the world's business environment last year, becoming one of the most advanced economies. The world wide innovation index report released by the World Intellectual Property Organization (IPR) shows that China's ranking continues to rise, ranking fourteenth in the world. It is hard to imagine that if we leave China, we wonder if any other market in the world can provide such a huge space for foreign companies to create wealth.

As a result, in the three consecutive years of declining global FDI, China has established more than 2.4 foreign-invested enterprises in the first 7 months of this year, and the actual use of foreign capital amounted to 533 billion 140 million yuan, up 7.3% over the same period last year. The US medical device giant has recently invested in the construction of a new production base in the Suzhou hi tech Zone, and the US water treatment Equipment Manufacturing Company, binter, has made an additional investment of 6 million US dollars in China's sales and marketing this year. All of these releases the positive signals that American companies are optimistic about China's market.

As the insight points out, the root cause of the high US manufacturing outflow and trade deficit is its chronic economic structure. Some people in the United States frequently impose tariffs and limit their pressure on the US economy. The United States old motorcycle manufacturer Harley Davidson Co ignored political pressure to shift some of its production out of the United States and other cases. The case shows that the big stick can not retreat in the US, but it will force the US manufacture to withdraw from the US and aggravate the danger of American industry hollowing out. The result is probably not anticipated by some people in the United States. (International Critical commentator)