President Trump has encouraged Chinese manufacturing investment in the U.S. The Chinese factories are new and undercut the prices of existing American competitors.
Chinese companies can evade tariffs by moving production to the U.S., using low prices to undercut manufacturers in America, a practice known as internal dumping. These companies trounce competitors with a combination of production efficiencies and, allegedly, illegal labor practices as well as subsidies from Beijing, according to China hawks in Washington.
American manufacturing is unionized. The Chinese can bring in workers on H1B visas but do hire locally. Many of their suppliers are accused of employing illegal workers.
This isn’t an easy question. If Chinese investment in new equipment and techniques enables them to be more productive than older American factories, isn’t that good? But what about the national security implications of China controlling strategic products such as glass, copper, steel and aluminum? And what about the Chinese subsidies to the factories and allegedly illegal workforce?
They bought Smithfield, largest pork processor. Did they replace all emplyees w Chinese immigrants? If so it has not been reported.
They are a leader in EV technology. We expect them to build autos in the US one day. With Chinese labor? Doubtful.
You provided a sky is falling report. Access to US markets is the major driver. Will be interesting to see how many robots they employ and how many parts will be made in USA or imported.
Yes, things can go wrong. But we still have the option to regulate if needed. Free markets are good. Investment in the US is part of the administration’s balance of trade program. Most think a good idea but not without risk.
China or any other foreign country should not be allowed to control any strategic production. Subsidies must be forbidden. Illegal works are against the law - they should be found, arrested, and deported, and the hiring company need to be heavily fined.
The precedent has been set in the War Powers Act. In both WwI and II German assets in the U.S. were confiscated and sold. Chinese assets are easily nationalized if a national need arises (and govt powers have time to act).
To avoid this evil doers must work subtly in the background. Otherwise they are easy to stop.
Yes, probably requires an act of Congress. But in the event of a major incident, very possible. We hope unlikely to be required. But we do have concerns about Chinese ownership of land and major businesses. Not to mention sale of telecommunications equipment.