When Trump was elected in 2016, nearly 100% of M Group hotel furniture was made in China, but only half after four years.

After 4 years under the impact of anti-dumping duties, tariffs and political tensions between the US and China under the Donald Trump administration, about 50% of the production lines of the US corporation M Group are scattered scattered.

post

The assembly plant of the American automaker General Motors and its Chinese counterpart is in Liuzhou City, Guangxi Province Photo: Reuters.

"We finally came up with a solution, thanks to our tight flight schedule. My eldest son and I flew almost around the world looking for resources," said H. David Murray, president

First, President Trump imposed an anti-dumping tax of 341% on Chinese-made marble countertops, followed by a series of taxes on wooden cabinets, bathroom shelves, kitchen cabinets and bedside walls.

"All of these products are hit by anti-dumping measures, because the current political environment in America is perfectly favorable for that," Murray said.

The businessman said he wanted to keep production in China because there is nowhere else that can compete on cost, speed, scale and quality of production.

"The state of North Carolina used to be a producer of a lot of hotel furniture, but that was 20 years ago. If it were now funding us $ 5 million to open factories, skilled workers.

"Then comes the supply chain issue. If I am the most competitive in this, it takes 3-5 years to build the supply chain, but the cost could be twice as high.

Murray's company is just one of many that saw many ups and downs during Trump's four years in office, when he made a tough commitment to China and brought American companies home.

"If it weren't for the tariffs, I would be in China now," said Larry Sloven, who spent many years planning to move LED bulb maker Capstone International from China to Thailand.

The production line was relocated just before the outbreak of the Covid-19 pandemic.

Slovenian added that companies that don't leave will be stuck in China, because whoever becomes the next US president, the tariffs won't be lifted.

post

President Donald Trump at an event in Manchester, New Hampshire, USA in August 2019 Photo: AFP.

For entrepreneurs, China is an attractive manufacturing location with good infrastructure, a stable supply chain, and a skilled workforce.

"China is the easiest place to do business in the world, with its large retail market, you can have anything you need in your supply chain, from components to raw materials. It all can be easy.

Besides the pressure from Trump, many American businesses said their decision to relocate production lines sometimes depends on the needs of American consumers.

"In addition to electrical and electronic products, customers now tend to look for products made outside of China," said Hiten Shah, president of sourcing company MES Inc.,.

A year ago, Kent International was one of many companies considering leaving China.

The plan to relocate to Cambodia failed, but the company was "flung" right before the pandemic, with many of its products tax-free, according to CEO Arnold Kamler.

Kent International's partner is Shanghai General Sports, a family business managed by Ge Lei.

"Overall I don't think Trump's election four more years will be good for his business because his policies are so erratic. For factories like ours, bad policies like tariffs are not."

Despite avoiding the worst impact of direct import tariffs and increased bicycle sales, Kamler still suffers from the unusual policies of Trump.

"If we can have enough capabilities, we can seriously consider starting the production line from scratch in the US," Kamler said.