Posted on 12/22/2016 6:36:08 AM PST by mandaladon
Shanghai (AFP) - A Chinese auto glass tycoon has caused a stir by shifting part of his empire to the United States and setting up a factory in Ohio, citing high taxes and soaring labour costs at home.
Cao Dewang's $600-million investment comes after Donald Trump threatened to declare Beijing a currency manipulator and slap 45 percent punitive tariffs on Chinese imports to protect American jobs.
The 70-year-old tycoon's decision to open a glass factory in the eastern American state of Ohio in October -- a rare case of jobs being exported from China to the US -- triggered an outpouring of criticism on social media.
The phrase "Cao Dewang has escaped" became a hot topic, generating nearly 10 million views on the Twitter-like Weibo microblog and many comments urging China to "not let Cao Dewang run away".
Cao's Fuyao Glass Industry Group -- a supplier to big names including Volkswagen and General Motors -- claims to be the biggest exporter of auto glass in the world, reporting 2.6 billion yuan ($370 million) profits last year.
Cao defended himself in an interview with the Beijing News Wednesday, saying he "did not run and will not run. The centre of my business is in China because I'm Chinese".
"I'm a business man and I'm doing business in the US," he said. "I'm merely reminding the government" that taxes and labour costs are too high.
In an interview with the state-owned China Business News last week, Cao said the country was home to the "world's highest taxes" and that the manufacturing industry suffered under taxes 35 percent higher than those imposed by the US.
Cao is a high-school dropout who began building his fortune as a salesman for a local glassmaker.
(Excerpt) Read more at yahoo.com ...
Imagine idiot liberals...Trump isn’t even in office yet and he’s running circles around Obama!
and reverse engineering the Chinese.....
is this January 22nd not December 22....?
Stop the world we time shifted a month.
big feedstock for petrochemical industries.
Made in the USA
MAGA
Lol. Well put.
Glass for the car industry...Interesting,
Wait a minute. Taxes do not have any impact on factory jobs, neither do regulations, lawsuits,....
Or so I have been told by fellow Freepers who call me a “freetraitor”. One freeper even explained to me that if compliance with all the ant-ibusiness laws and trade restrictions led to poor profits that businesses just needed to redeploy their assets into higher profit businesses. It was that simple. Ban imports and require high wages then businesses just redeploy and make money.
If we remove the burdens placed on US businesses China will cease to be our boogeymen. Japan was our boogeyman until Reagan unleashed the free enterprise furies. Yeah, he made some protectionist moves in order to buy Labor peace but he freed our economy.
China is the red herring that distracts us from focusing on our own idiotic business killing politicians.
This just the start as President Trump makes investment in America more attractive.
So much winning...
Great comment. Another example of how people become used to the “new realities”
Fuyao Glass America Inc. — A timeline of how a Chinese industrial giant came to Dayton
Should read “new Normal”. The country has been run by communists in socialist clothing for at least 8 years. Much needs to be reversed.
On Tuesday, some bicycle mfrs announced their return to the States, to build hundreds of thousands of bikes, in South Carolina, IRRC.
Trump’s influence IS really manifesting, even before his presidency is official. God has his hand on that man.
Mind. Boggled.
Probably made the replacement windshield I had put in my car.
Soft , nicks from sand etc easily.
I wish my job would come back. We made custom motorcycle frames for Midwest Motorcycle Supply, J&P and others. Very high quality. We had employees that took great pride in their work. Even when we knew we were going to be replaced we put out a first rate product. I saw one of the Chinese frames on Ebay a few years later. Not enough resolution to inspect welds, but it was obvious that some of the mounting tabs were not right.
BOOM!
China is becoming expensive due to lack of workers, higher salaries, unreliable laws and taxes. This means that jobs are exported to Vietnam and other countries. But this change started a few years ago:
What about trade barriers US and China?
Trade battles between the world's two largest economies would hurt both sides, economists said. When the U.S. slapped tariffs on imports of Chinese tires in 2009, it saved up to 1,200 jobs, according to a Peterson Institute study. But it cost U.S. consumers around $1.1 billion, or around $900,000 per job, in higher tires prices in 2011 and cut retail spending in other areas, leading to an overall loss of 2,500 jobs, the institute calculated. China, meanwhile, retaliated by blocking U.S. chicken exports, leading to $1 billion in lost U.S. sales.
http://www.wsj.com/articles/china-weighs-response-to-new-u-s-trade-foe-1482401351
What will happen next?
Imagine if this is reversed:
The federal tax code is 187 times longer than it was a century ago, according to Wolters Kluwer, CCH, which has analyzed it since 1913. Amazingly, in the first 26 years of the federal income tax, the tax code only grew from 400 to 504 pages. Even through President Franklin Roosevelt's New Deal, the tax code was well under 1,000 pages. Changes during World War II made the length of the tax code balloon to 8,200 pages. Most of the growth in the tax code came in the past 30 years, growing from 26,300 pages in 1984 to nearly three times that length today.
http://www.freerepublic.com/focus/news/3475837/posts?page=50#50
Add a reduced corporate tax perhaps to 15 % and and improved tax amnesty, not only to persons
http://www.expattaxprofessionals.com/debunking-5-myths-irs-tax-amnesty-programs/
but as well to companies.
How much money will flow back and put into productive work?
Will he use American labor?
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