Color rev will happen in CN first if US decide to buy anything (except rare earth) from strategic partner VN instead of CN, all CN investors will flee to VN to avoid a much worse incoming tariff, CN economy will fall into chaos like Soviet and finally collapse
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Interviews reveal that many factory owners and operators feel that they are caught in the middle of forceful rhetoric from both sides in the trade war. And rather than face direct retaliation from officials, workers and suppliers in their home market, they are deciding to keep their counsel.
Those companies that plan to move production out of China to avoid US tariffs and preserve their US business face a particularly delicate balancing act.
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Manufacturing exporters that are thinking of relocating face more difficulties and higher costs than those that already moved out over the past two years, so many of them are not willing to speak out,” said Liu Kaiming, head of the Shenzhen-based Institute of Contemporary Observation, which monitors working conditions for hundreds of Chinese contract manufacturers.
“To relocate, they have to handle very carefully the plans for lay-offs and compensation for workers, the reaction of suppliers, the problem of stock price fluctuations in large enterprises, and so on. They have to keep all this low profile,” he said.
“Once the news of a relocation is released, various rumours may crop up that are not favourable to the company,” Liu added. “Now that the trade war has escalated, the risks are even greater. Even though more and more manufacturing industries are affected, most of them are afraid to express their views in public.”
Some manufacturers had hoped that keeping a low profile would allow them to fly below the radar and thereby avoid further trade war tariffs.
“But what Trump is doing now is making everyone panic, especially the smaller firms,” Zhou added.
Companies are also fearful of growing hostility from local governments in China, should they announce their plans to relocate.
Officials do not want to lose the tax revenue, nor the employment the factories bring to local communities.
Chinese state media may have launched a fierce propaganda campaign, placing the blame for the trade war squarely at the feet of the US government. Interviews reveal that many factory owners and operators feel that they are caught in the middle of forceful rhetoric from both sides in the trade...
sg.news.yahoo.com
