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Photo: Twitter

President Trump may be serious about trying to push U.S. companies out of China, but businesses have already seen that getting out is easier said than done.

Driving the news: In renewing his call for companies to leave China in recent tweets, Trump cited the International Emergency Economic Powers Act of 1977, a law that was passed to allow a president to isolate rogue or criminal regimes.

  • It has been used mainly to combat state-sponsored terrorists, drug traffickers and "pariah states like Iran, Syria and North Korea," the New York Times notes.

What's happening: U.S. companies have been trying to move out of China to avoid the tariffs, but China has simply cornered too many markets. Firms have been setting up shop in China for 3 decades and megacompanies like Boeing, Apple, Intel and Nvidia generate major chunks of their revenue there.

  • China also has developed a pipeline of engineers, data scientists and other specialists that is unrivaled even by developed countries like the U.S. and Western Europe.
  • Combined with its size and growing middle class, it's not a market that companies can just leave.

Be smart: Some manufacturers have tried moving to Vietnam but have been stymied by a lack of specialized supply chains and Vietnam's tightening labor market, WSJ's Niharika Mandhana writes.

  • “You can’t just shift your business to Vietnam and expect to find what you’re looking for,” Wing Xu, operations director for Omnidex Group, which helps make products for U.S-based McLanahan Corp., told Mandhana.

Go deeper

Updated 3 hours ago - World

Biden reviews U.S. arms deals with Saudi Arabia and UAE

Trump struck several large arms deals with Mohammed bin Salman (L) and Saudi Arabia. Photo: Kevin Dietsch-Pool/Getty Images

The Biden administration has put on hold two big arms deals with Saudi Arabia and the United Arab Emirates which were approved in the final weeks of the Trump administration, a State Department official told Axios.

Why it matters: The sales of F-35 jets and attack drones to the UAE and a large supply of munitions to Saudi Arabia will be paused pending a review. That signals a major policy shift from the Trump era, and may herald sharp tensions with both Gulf countries.

Trump supporter found with pipe bombs accused of plot to attack Democrats

Five improvised explosive devices that the FBI says "were fully operational and could cause great bodily harm or injury if handled improperly." Photo: FBI/Justice Department

The FBI believes California Gov. Gavin Newsom (D) and the Bay Area headquarters of Twitter and Facebook were targets of a man facing federal explosives charges, according to a criminal complaint.

Driving the news: Prosecutors charged Ian Benjamin Rogers after finding weapons including five pipe bombs, 49 guns and thousands of rounds of ammunition following a Jan. 15 search of his Napa County home and auto repair business. His alleged goal was to ensure former President Trump remained in office.

7 hours ago - Health

Fauci: COVID vaccine rollout needs to prioritize people of color

Anthony Fauci. Photo: Alex Wong via Getty Images

Infectious disease expert Anthony Fauci highlighted the need to address racial disparities in the COVID-19 vaccination process, per an interview with The New England Journal of Medicine on Wednesday.

What he’s saying: "I think that's the one thing we really got to be careful of. We don't want in the beginning ... most of the people who are getting it are otherwise, well, middle-class white people."