The Trade War Is Already Pushing Businesses Out Of China—And It Could Be Permanent
The seemingly unexpected collapse of trade negotiations between the U.S. and China last month hinted that continual Sino-U.S. tariffs may be the new normal. But recent data reveal that, well before talks broke down in May, China-based companies has already begun bracing for the worst-case scenario. The latest trade numbers suggest that, China has been selling Americans fewer goods like computers and auto parts—and that other countries are benefitting from taking up the slack. What’s at stake here isn’t merely the health of China’s export-focused manufacturing sector (and the millions of workers it employs). The longer the trade war wears on, the greater the risk China will lose its long-standing role as the planet’s top global manufacturing base. And as more and more foreign investment and technology flow to other nations, China’s chances of becoming a technologically advanced, innovative economy will dim. Read more at Quartz.
