The world’s largest supplier of consumer goods says China’s factories are getting “urgent and desperate” as worried U.S. retailers accelerate a move out of the country amid heightened trade tensions.
China will see more factory shutdowns as the trade war that’s roiled the global supply chain exacerbates an exodus, said Spencer Fung, chief executive officer of Li & Fung Ltd. The company, which designs, sources and transports consumer goods from Asia for some of the world’s biggest retailers including Walmart and Nike, is being pushed by American clients to shift production out of China.
“U.S. clients are definitely very, very worried,” Fung said in an interview with Bloomberg. “Everyone is making razor-thin margins already and most people have a huge percentage in China. So if the biggest source increases the price by 25%, they are worried,” he said, referring to the scale of tariffs threatened on all Chinese imports to the U.S. by President Donald Trump.
Though Fung didn’t specify Walmart by name, the U.S. retailer is the company’s second-biggest customer after Kohl’s, accounting for 7.6% of revenue, according to Bloomberg data. A spokeswoman for Walmart declined to comment.
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8 comments:
It's all about the bottom line. These big companies don't care if child labor is making the stuff as long as they can turn a certain profit margin.
How many factories shut down here in the US ? How many lives destroyed or effected because jobs moving overseas ? Damn the Chinese... God Bless America and God Bless President Trump !!!
I’ve been to China. It’s gonna collapse into itself. When they build entire cities with absolutely no inhabitants, it doesn’t take a rocket scientist to figure out China is all just a house of cards. It will be fun to watch.
Democrats having taking money from the Chinese to sellout American companies and workers
Well if people made a living wage they would not be buying made in China crap at Wal-Mart and the Dollar Tree. How about changing the national pass time to something more interesting that SHOPPING.
china is a communist country so all money we spend on there goods goes to the red army..
You are the primary problem with the US. If you think somehow we owe our current situation to 1 party, or that elected officials on both sides arent bought out, you clearly must spend your days drunk off eastern shore moonshine. Despite all the evidence too many of you blindly follow these parties right over the abyss.
Quality stuff was made here. It cost a little more. China stole our inventions/technology and made the same items cheaply to saturate the market. Once they snuffed out all the good products with their garbage the American companies could not compete. Now we have only Chinese junk that we have to replace all the time with more Chinese junk. Our landfills are filled with broken Chinese crap. Next time you buy a tool or small electronic device, see how long it lasts if it's made in China. I went through 1 can-opener per year until I found an American made one. Paid more for it but its still works (3 years now).
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