Massive companies won't pull out of China
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.
The state of play: 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."
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."