On this episode of China Uncensored,
the best Cyber Monday deals ever
for companies moving out of China
Hi welcome back to China Uncensored
I'm your host Chris Chappell.
As the US-China trade war continues,
it looks like China is starting to feel the heat.
And certainly in China,
they're starting to feel it, they're starting to harm confidence in the market.
And so in China, real concerns.
The Chinese government reported the country's gross domestic product or GDP growth
as 6.5 percent in the third quarter.
That's the weakest rate since the financial crisis of 2008.
And that's just the official statistic,
local officials often let's call it,
upwardly exaggerated GDP numbers to look good.
Just like you might upwardly exaggerated your gross homework product to your parents
which works well until they see your report card.
Unfortunately there's no report card
that shows China's real economic numbers for the rest of the world
So it's safe to say that the real GDP growth is not 6.5 percent
but we don't know what it actually is.
Except that it's probably much lower.
And there are other signs that the trade war with the US
is affecting the Chinese economy.
At a recent China import and export fair in Guangzhou
orders of exports to the United States
fell by a shocking 30 percent from last year.
So China's getting hit hard and it's going to keep getting worse
unless President Trump backs down from the trade war
And really when was the last time Trump back down from anything?
Here's Trump's vice president Mike Pence
speaking at the APEC summit earlier this month.
We've taken decisive action to address our trade imbalance with China
we put tariffs on 250 billion dollars in Chinese goods
and we could more than double that number.
But we hope for better.
The United States though will not change course
until China changes its ways.
The US isn't going to back down
but the Chinese leadership is also not planning to back down.
Mankind has once again reached a crossroads
which direction should we choose?
Cooperation or confrontation?
Openness or closing ones door?
Win-win progress or zero-sum game?
He also expressed deep concerns about import taxes on honey.
Tensions between the US and China ran so high at the APEC summit
that the countries at the event couldn't even agree on a simple joint statement
to conclude the meeting.
Papa New Guinea Prime Minister Peter O'Neill
said that: "The entire world is worried."
Well, maybe not the entire world
because while China might be losing the trade war
the opposite of win-win cooperation
is not lose-lose.
It's China loses, other countries win
Remember how I said orders of exports to the US from China
fell by 30 percent at the trade fair.
Well, it's because the trade war has made Americans realize
that we consume too many material goods
and need to cut back on spending.
Just kidding.
Here's a giant crowd of people trying to get into
a Macy's store in New York City on Thanksgiving.
Black Friday starts on Thursday now everyone
more is more.
So Americans are not going to buy less stuff,
unless maybe stuff gets a lot more expensive.
But manufacturing stuff in China
is going to get a lot more expensive for companies selling their stuff to Americans
because of tariffs.
But they don't want to make their stuff so expensive
that Americans don't buy it anymore.
And that's why big companies are shifting their manufacturing
out of China.
Some of them are relocating back to America.
But most of them are just relocating to Southeast Asia
where it's way cheaper.
Last month, GoerTek
the Shandong based manufacturer of Apple's AirPod
announced it would move production of their wireless headphones to Vietnam.
The company's chief executive said
the reason for the move was the trade war.
And Brooks Running a shoe and apparel brand owned by Warren Buffett
looks set for a similar move.
The conclusion we've come to move it out of China
where do you move?
Probably for us, Vietnam and the door will close there
because of the labor shortages.
The CEO of the Canadian National Railway Company
says that the light manufacturing sector
is particularly prone to quick factory uproot and relocation.
He told Bloomberg that
"They're going to Vietnam.
They're going to Bangladesh. They're going to Indonesia
and the product is still being made."
Again,
we're never going to stop shopping.
Remember every one,
today is Cyber Monday, get those 4k TVs to watch my YouTube videos on.
Anyway, a report by the American Chamber of Commerce in China
says that nearly 1/3 of US companies they surveyed
are seeking to source components and/or assembly outside China
because of the trade war.
Of those, 17% said they're considering relocating to the US
and 53% said Southeast Asia.
So the biggest winners in the trade war so far
are actually these Southeast Asian countries.
And as companies relocate,
job opportunities and wages there go up.
And China will have to find another way to get more of that sweet sweet honey
So what do you think about US companies
moving their supply chains out of China
because of the trade war?
Leave your comments below.
And before you go, it's time for me to answer a question from one of you
who supports China Uncensored
through the crowdfunding website Patreon.
Largezo asks:
"Does Chris actually have a huge student loan to pay off?"
Sadly the best comedy is based on truth.
You know how people in their early 20s
always make great financial decisions?
Well fresh out of college,
I decided it would be a great idea to get a
masters degree at New York University.
Now I have a degree in classical music composition
and I'm basically unemployable.
All I have to my name is massive student loan debt,
a tiny apartment in Queens
and a Youtube show that no one wants to advertise on.
See? it's funny because it's true.
Speaking of which,
do you want me to keep making episodes of China Uncensored?
Please support our continued growth
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Once again I'm Chris Chappell.
Thanks for watching China Uncensored.
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