Stocks Clock Out China Time 🇨🇳
Stocks Clock Out China Time
Yank. The companies in your investment portfolio may have just given up their big manufacturing presence in China, packing up for other Asian shores. The likes of Apple and GoPro are happy for the trade skirmish to continue, so long as their profits aren’t on the line.
Fists up between the US and China. Since reopening trade talks at the G20, the back and forth has only featured snaps and barks between the two countries. Some argue it’s advantage Trump given a July interest rate cut emerging. That cut could prop up the US economy while the President plays his final hand against China, $350 billion of tariffs against all of the country’s remaining trade. Eek!
China’s trying its best not to flinch. Standing firm in Beijing, President Xi has enlisted the help of hardliners on this issue who won’t concede any margin to Trump. However, the fate of his nation may not be in his hands. Investors increasingly see China as a sitting duck for more tariffs, and now companies are getting out while they can.
Tipped as sure-fire departures; Apple, Dell, HP, GoPro, and 46 other companies from around the world. Seemingly every corner of the stock market has a company who wants out, from shoes to automobiles, from wristwatches to home appliances. Chinese incentives for these companies to reconsider appear to have fallen on deaf ears, but these firms aren’t traveling far — destinations including Thailand, Japan, Taiwan, Vietnam, and Mexico. As trade pressure escalates, more outbound businesses could follow.
Market watchers will note that only one company is said to be headed for the US. However, even though supply chains in both countries are under siege from tariffs, this news might be the beginning of the end for the trade war. Don’t hold your breath!