Drudge Retort: The Other Side of the News
Monday, August 19, 2019

A top executive of a U.S.-based multinational is pushing back hotly against a White House official's assertion that companies are preparing to pull production out of China as part of President Trump's squeeze there.

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From the cited article:

...On ABC's "This Week," White House trade adviser Peter Navarro said that during an Oval Office meeting with a group of executives, "We heard from these business leaders: ... 'Just give us some time to December 15th. And, by the way, we are taking all of our sourcing production facilities out of China, and we will continue to do that.'"

Yes, but ... A source at a major U.S.-based company with a supply chain in China tells Axios:

"This is completely made up. ... The supply chains companies of all stripes have built up in China took decades to create. No one in their right mind is going to show up and say they're taking 'all' of their supply chains out of China simply to please DJT."



Is White House trade adviser Navarro saying what Pres Trump wants to hear him say, instead of the reality of the situation?

#1 | Posted by LampLighter at 2019-08-19 10:57 AM | Reply

I actually agree with Trump on this ...

Those douchebag businesses who moved their manufacturing to China for the subsidies and cheap labor provided by China can all kiss my American ass.

Who Stole The American Dream?
youtu.be
[1:27:43]

Of course, this sets up a battle between Trump and the entire Pro-Republican Big Business Establishment who have paid and funded millions of dollars in campaign contributions to have THEIR Congressman craft business policies that created this situation over the last 40 years.

Trump vs corrupt GOP Congressional legislators in a caged death match? I hope they all kill each other.

#2 | Posted by PinchALoaf at 2019-08-19 11:51 AM | Reply

@#3 ... I actually agree with Trump on this ... ...

To some extent, I do also.

American companies, in pursuit of the American Capitalism's profits over everything, have decimated manufacturing in the United States. The same way companies choose to give jobs to illegal immigrants, the labor costs are cheaper so profits are higher.

So, given that, what do you think the American companies will do? Move jobs back to the US, or just move them out of China?

From the cited article:

...A former administration official explains: "You can't site and build factories, train workers, etc., on a dime. And the investments required are enormous, so companies usually wait for certainty in conditions before taking such big steps."...

Given that factories are not build overnight, what's the solution?

When corporations are given tax cuts to invest in their futures, the companies use the money instead for stock buybacks, enriching the owners instead of investing in the company.

So what's the solution?


#3 | Posted by LampLighter at 2019-08-19 12:09 PM | Reply | Newsworthy 1

Then there is this info: Apple, Dell consider moving China production in trade war. Who else? www.usatoday.com

#4 | Posted by MSgt at 2019-08-19 12:12 PM | Reply

www.bloomberg.com
Apple CEO Tim Cook met with Pres Trump in New Jersey.

...President Donald Trump said Apple Inc. Chief Executive Officer Tim Cook voiced concerns about chief competitor Samsung Electronics getting an edge because its products, unlike Apple's, won't be subject to tariffs when imported by the U.S....

That shows the complexity of the international trade.


#5 | Posted by LampLighter at 2019-08-19 12:18 PM | Reply | Newsworthy 1

@#4 ... consider moving China production in trade war. ...

"Consider" means exactly that, they are thinking about it. Nothing concrete at this point.

However, the article you cite does mention a few companies that "are relocating" out of China... to Vietnam, Mexico, etc. A rare few are mentioned as moving manufacturing back the US.

#6 | Posted by LampLighter at 2019-08-19 12:26 PM | Reply

Is White House trade adviser Navarro saying what Pres Trump wants to hear him say, instead of the reality of the situation?

#1 | Posted by LampLighter

Does the Pope crap in the woods?

#7 | Posted by jpw at 2019-08-19 12:58 PM | Reply

No one in their right mind is going to show up and say they're taking 'all' of their supply chains out of China simply to please DJT."

They can't simply move because they partnered with a business entity directed by the Chinese Communist Party which basically owns 65% or more of the business.

Corporations can leave but they have to leave all their Chinese personnel behind and that includes their machines and technology as well.

65% Chinese ownership was the price they had to pay to get into the Chinese market.

It would be foolish to think the Chinese would stop running that business simply because American Management has left.

They will just replace management with party loyalists and own the whole thing 100%

#8 | Posted by Pegasus at 2019-08-19 01:00 PM | Reply

@#8 ... It would be foolish to think the Chinese would stop running that business simply because American Management has left. ...

Sadly (for the US), I think your comment has a lot of merit to it.

US companies went to China looking for higher profits. They went into those agreements with China knowing full well what they were going in to. I know, a company in one of my prior lives opened a branch office in China, and we had to put a Chinese national in charge. Otherwise, no deal. That was just a small (less than 10 person) branch office.

When the US companies leave China, not only do they leave behind all the manufacturing facilities, the people who have been trained, the raw material sourcing, etc. But they also leave behind all the intellectual property (IP) they brought to China.

So why did US companies go so willingly and enthusiastically into these deals?


#9 | Posted by LampLighter at 2019-08-19 01:12 PM | Reply | Newsworthy 1

So why did US companies go so willingly and enthusiastically into these deals?

Because we the consumers demanded it so that we could live a lavish lifestyle well beyond our means.

#10 | Posted by jpw at 2019-08-19 01:19 PM | Reply

The constant, escalating series of lies gets harder to take daily, and those lies are being contradicted and called out by more and more people. The lies are designed, in part, to provide excuses when the US economy tanks in early 2020. When the ---- hits the fan, the Trump comedy team will circle the wagons and start pointing any anyone and everyone, in a desperate attempt to justify their actions, deflect blame and try to convince voters that 2021-2024 will be better.

If 'I alone can fix it' were accurate, there would be no need for blame because things would be fixed. They are not...

#11 | Posted by catdog at 2019-08-19 01:30 PM | Reply | Newsworthy 2

"Consider" means exactly that, they are thinking about it. Nothing concrete at this point.

While you are right it takes time, it is happening at a rate that is starting to alarm the PRC leadership.

China is racing to keep foreign enterprises in-country, dangling special benefits so that the advantages of staying outweigh the heavy tariffs imposed by the U.S.

A year into the trade war with Washington, more than 50 global companies, including Apple and Nintendo, have announced or are considering plans to move production out of China, Nikkei research has found.

And not just foreign companies. Chinese manufacturers, as well as those from the U.S., Japan and Taiwan, are part of the drain, including makers of personal computers, smartphones and other electronics.

"We need permanent measures to avoid the risk of tariffs and be eligible for U.S. government procurement," said Kiyofumi Kakudo, CEO of PC maker Dynabook. The unit of Sharp is considering a plan to relocate production of its U.S.-bound notebook PCs to a new plant being built in Vietnam. Such PCs account for 10% of the unit's total notebook production.

Dynabook makes almost all its notebook PCs in China, mainly at a plant in Hangzhou, 175 km southwest of Shanghai. "Although the fourth round of U.S. tariffs has been temporarily shelved, we cannot tell what will happen nor when," Kakudo said.

Apple has called on major suppliers to consider moving 15% to 30% of iPhone production out of the country. The Nikkei Asian Review reported on July 17 that Apple is about to start trial production of its popular AirPods wireless earbuds in Vietnam. Trials such as these are usually precursors to mass production.

American PC makers HP and Dell are thinking of moving up to 30% of their notebook production in China to Southeast Asia and elsewhere. Japan's Nintendo will also shift a portion of its Nintendo Switch game system production from China to Vietnam.

As I keep saying, if you want to understand what is going on from a non "Dump Trump" MSM or official Communist Party standpoint, you need to read the Asian newspapers.

China scrambles to stem manufacturing exodus as 50 companies leave

#12 | Posted by Rightocenter at 2019-08-19 01:39 PM | Reply | Newsworthy 1

Liberal driven PC tells us that:
factory work - BAD
hunting - BAD
Orange man - BAD
communism - GOOD
This only ensures that China will keep the manufacturing jobs.

#13 | Posted by phesterOBoyle at 2019-08-19 01:53 PM | Reply

#2 | Posted by PinchALoaf

Hedrick Smith's talk is a great one. Whenever I see it come up I go out and watch it again. It's a multifaceted look at how things went so bad for average people.

#14 | Posted by GalaxiePete at 2019-08-19 01:55 PM | Reply | Newsworthy 1

Because we the consumers demanded it so that we could live a lavish lifestyle well beyond our means.

#10 | POSTED BYJPW

While there's merit in saying consumers wanted cheaper prices ...

It had more to do with corporate America steadily capturing the levers of government the last 40 years, that's what is chronicled in Hedrick Smith's 'Who Stole The American Dream?'.

Corporate America started practicing shareholder capitalism and wedge economics WHILE buying the levers of government to craft policies favoring off-shoring their factories swhile tamping down on wages ...

That's how America got to where we're at today.

#15 | Posted by PinchALoaf at 2019-08-19 01:57 PM | Reply

Hedrick Smith's talk is a great one. Whenever I see it come up I go out and watch it again. It's a multifaceted look at how things went so bad for average people.

#14 | POSTED BYGALAXIEPETE

QFT !!!!!!!!!!!

#16 | Posted by PinchALoaf at 2019-08-19 01:59 PM | Reply

@#12 ... China scrambles to stem manufacturing exodus as 50 companies leave ...

Once again, most of the companies did not leave, nor are they leaving.

From the article you cite...

...A year into the trade war with Washington, more than 50 global companies, including Apple and Nintendo, have announced or are considering plans to move production out of China, Nikkei research has found....

There's that ole, "are considering" once again. And China is taking steps to keep them.

... China is racing to keep foreign enterprises in-country, dangling special benefits so that the advantages of staying outweigh the heavy tariffs imposed by the U.S. ...

One company I worked for "was considering" a move from Connecticut to New York, and played CT against NY for tax relief. Eventually, they stayed in CT, didn't move at all.

If you look at the graphic in that article, you'll see that most of the US companies "may leave" and if they do will be going to another non-US country. Indeed, only one country in that graphic was moving to the US, and that was a partial move, the rest went elsewhere.

Most of the few companies who have actually left are Asian-based companies.

So how is that bringing jobs back to the US?


#17 | Posted by LampLighter at 2019-08-19 02:00 PM | Reply | Newsworthy 2

#13 | Posted by phesterOBoyle

If you spelled it 'boil' you would have it right.

Liberal's think factory work is bad? Have some evidence for that? Foundation of the Democratic party is Union workers... Factory OWNERS are bad? Maybe slightly more accurate but not exactly true either.
Hunting - Well anti-hunting groups are often Liberal but that doesn't mean even most Liberals are anti-hunting.
Orange Man - well it appears 65% of the country is Liberal then...
Communism is good? There are some liberals that feel that way sure but that's just an ignorant position.

What ensures China will keep the manufacturing jobs is the investment (dollars, time, learning, etc.) and time it takes to build/rebuild everything after you pull out. The article lays it out pretty well. Also note that companies are moving their production to other countries with cheap labor - NOT the US - and they are generally NOT pulling out of China. They can't China is THE growth market for many companies. As a matter of fact due to the tariffs Apple just moved it's US based production to China. That's actually happening more than people are aware or have forgot - like Harley Davidson building plants overseas because of the tariffs.

Go watch Pinch's link: Who Stole The American Dream?
youtu.be
[1:27:43]

#18 | Posted by GalaxiePete at 2019-08-19 02:05 PM | Reply | Newsworthy 1

#17

As you said, it takes time, but I have posted numerous Nikkei and SCMP articles documenting that Manufacturing stars are up almost 1000% in Vietnam over the past 12 months. This is nothing but bad news for China, and as Malaysia and Cambodia ramp up as well, China is going to be the main loser here.

The trade war is not, nor has it ever been about bringing manufacturing back, but about making trade with China fair. For too long, both the Bush and Obama administrations were too afraid to do anything about it. Trump may seal his own fate if China continues to hold out, but my guess is that the next President will continue to hold fast against China now that the initial damage to US consumers has been done.

#19 | Posted by Rightocenter at 2019-08-19 02:13 PM | Reply | Funny: 1

@#19 ... This is nothing but bad news for China, and as Malaysia and Cambodia ramp up as well, China is going to be the main loser here. ...

I don't deny that is a possible outcome.

Candidate Trump, (June 2016)
Full transcript: Donald Trump's jobs plan speech
www.politico.com

...Trade reform, and the negotiation of great trade deals, is the quickest way to bring our jobs back...

#20 | Posted by LampLighter at 2019-08-19 02:32 PM | Reply | Newsworthy 1

You Cult45ists do realize that Mango Mussolini still gets all his suits made in China. ALL of his campaign gear is also made in China. Why is that? I'm sure there are companies that could his cheap campaign crap and his rediculous, ill-fitting, off the rack at Goodwill looking suits right here in the good old USA. I think it's fascinating that for some reason his tariffs don't impact the parts of the economy that would take money out of his pocket or his campaign. Funny how that happens. As with you cultists, Dear Leader is a big fat freaking hypocrite!

#21 | Posted by _Gunslinger_ at 2019-08-19 07:28 PM | Reply | Newsworthy 2

rediculous = ridiculous, I forget that I have no autocorrect on my laptop, doh.

#22 | Posted by _Gunslinger_ at 2019-08-19 07:30 PM | Reply

ALL of his campaign gear is also made in China. Why is that?

Because at the end of the day, Trump isn't a conservative, a liberal, a Republican or a Democrat, and he definitely doesn't care about what's best for America.

He's a capitalist, who's only concern is himself.

He's charmed the Republican Party and is using their hate and anger to get away with what ever he wants. If his actions turn out to be disastrous, he talks about Hillary, AOC, or whoever is convenient at the moment, and the nation, both parties, forgets about his prior actions and cling onto the new mess he's created.

#23 | Posted by ClownShack at 2019-08-19 07:43 PM | Reply

Go watch Pinch's link: Who Stole The American Dream?
youtu.be
[1:27:43]

#18 | POSTED BY GALAXIEPETE

Post of The Week

#24 | Posted by PinchALoaf at 2019-08-19 08:59 PM | Reply

Buy American Act passed in 1933 by Congress and signed by President Hoover on his last full day in office (March 3, 1933), required the United States government to prefer U.S.-made products in its purchases.

Here's what "buy American" means in practice: The U.S. government contracts out nearly half a trillion dollars of work per year, putting out requests for firms to provide things like construction, IT support, and countless other services the government doesn't do for itself. Except in certain cases like sensitive defense work, both American firms and foreign ones bid on these contracts, competing to name the lowest price and deliver the best results.

As a result, the federal government gets to make use of private firms' capacity and expertise at, theoretically, the most competitive market rate. But under Trumps new executive order, foreign firms won't be in contention. Only domestic firms will be eligible to win these contracts.

Which means all those Commie Corporations in China won't be bidding...

Too Bad.... Sooo Sad...

#25 | Posted by Pegasus at 2019-08-19 10:26 PM | Reply | Newsworthy 1

Besides it's well know the Nazi Democrats stole the American Dream...

Clinton did Monica and the American Middle Class...

#26 | Posted by Pegasus at 2019-08-19 10:29 PM | Reply

Buy American Act passed in 1933 by Congress and signed by President Hoover on his last full day in office (March 3, 1933), required the United States government to prefer U.S.-made products in its purchases.

Which means all those Commie Corporations in China won't be bidding...

Too Bad.... Sooo Sad...

#25 | POSTED BYPEGASUS

Hey Mr. Ed,

You're talking about Halliburton, Raytheon, etc. gouging American taxpayers with marked up contracts for services to the federal government.

In real America, Walmart is America's biggest retailer...

And everything sold in Walmart is made in China. Plus, Walmart pulls nearly a half trillion in annual profits!

So put that in your pipe and smoke it, commie luvver.

#27 | Posted by PinchALoaf at 2019-08-19 11:12 PM | Reply

Hey Mr. Ed,

You're talking about Halliburton, Raytheon, etc. gouging American taxpayers with marked up contracts for services to the federal government.

In real America, Walmart is America's biggest retailer...

YEP but they also... make billions off government contracts far exceeding that of many larger corporations.

But doing so... got them into problems...

For five years, the U.S. government has been investigating Wal-Mart under the Foreign Corrupt Practices Act, which prohibits and monitors improper international dealings like bribery. Talks fell apart last fall as the Obama administration prepared to wind down, but government officials renewed their investigation, according to earlier press reports.

Organizations that plead guilty to federal crimes can be blocked from winning government contracts, meaning Wal-Mart " the country's largest grocer " could lose its access to the Supplemental Nutrition Assistance Program, commonly known as food stamps, which accounted for some $13 billion of its sales last year.

That is just one of it's many government contracts.

So put that in your pipe and smoke it, commie luvver.

Yummmm loves me some commie tang...

It's what cosmonauts drink... NOT...

#28 | Posted by Pegasus at 2019-08-20 03:07 PM | Reply

Peabody:"Sherman - turn the dial to the left on the wayback machine.... let's go back a few years."

Sherman "Why Mr Peabody?"

Peabody: "Because I'm a dog and I told you to, you stupid twit.."

Homeland Security Secretary Janet Napolitano announced the unusual alliance Monday on the department's blog and in a promotional video posted to YouTube.

"Homeland security starts with hometown security, and each of us plays a critical role in keeping our country and communities safe," she said. "This partnership will help millions of shoppers across the nation identify and report indicators of terrorism, crime and other threats to law enforcement authorities."
Should the war on terror be fought in the aisles of Wal-Mart stores?

At least 200 Wal-Mart stores will roll out security announcements within 24 hours, Wal-Mart spokesman Dan Fogleman said. By month's end, 588 stores in 27 states will be participating in the program. A short video featuring Napolitano will appear on TV screens at select checkout lanes, asking Wal-Mart shoppers to contact local law enforcement to report suspicious activity.

"If you see something suspicious in the parking lot or in the store, say something immediately," Napolitano said in the video. "Report suspicious activity to your local police or sheriff. If you need help ask a Wal-Mart manager for assistance."

"Excuse me, where do you keep your Chinese bullet proof vests?"

#29 | Posted by Pegasus at 2019-08-20 03:17 PM | Reply

#12 The US pays Trump tariffs so US consumers and businesses that import from China suffer, while China exporters and employees suffer, and Vietnam benefits.

Trump Tariffs = Vietnam reparations

Another way to hurt China, but without hurting the US and helping the third world is TTP. But that was HER idea, so the US gets shot in the foot.

#30 | Posted by bored at 2019-08-20 08:09 PM | Reply

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