Is There Trouble Ahead for China, the Business Paradise?
Opinion: The road that led to President Trump’s inauguration was filled with flowery rhetoric. Whether or not that rhetoric is empty is yet to be determined. Trump’s rhetoric has not only affected the American people but people all across the globe. Trump’s promise during the election that he will bring American companies back to America might have been too large of a promise. These companies should never have been allowed to leave. American companies have become too ingrained into the foreign business sector and it will be very difficult for President Trump to change that. Legislators did nothing to ensure that American companies would be better off in American. I can hardly fault the companies for the decision to leave America when our business policies are absurd. On the part of the many of the companies, it was just smart business.
The American business sector is very concerned with Trump’s foreign policy views. Reuters states that Trump’s shift in foreign business is “As worrisome for U.S. firms, Trump also tweeted a plan to apply a 35 percent tax to products imported by U.S. firms from factories they have moved overseas. That would hammer companies who have spent decades building supply chains and facilities in China, like Apple, for example.” Some of the rhetoric, that Trump’s uses are merely simple scare tactics. The President and the billion dollar businessman just might know what he’s talking about. The media’s portrayal of Trump’s intelligence is flawed in that they discredit his business accomplishments. There are better and more efficient ways for the United States to conduct business in foreign nations, and Trump understands this. Trump’s business expertise is likely the path that the United States needs to take to improve our economy.
Apple Inc., as mentioned by Reuters, is an enormous American conglomerate operating in China. So much so that the city of Zhengzhou has been dubbed “iPhone City” by the locals. The New York Times asserts that,
It’s China’s job, as well as other foreign businesses, to entice foreign corporations to their shores. Each country wants to improve its own standing in the global marketplace. It is how they improve their economy and their employment rates. And why shouldn’t China do this? After all, our American companies are taking advantage of the perks and benefits they get by conducting their businesses overseas. Despite the advantage it gives companies, “American officials have long decried China’s support of its state-owned companies, calling the subsidies and other aid an unfair competitive advantage in a global marketplace” as stated by the New York Times.
Countries are gearing up for Trump’s presidency, meaning that they are taking every precaution necessary to keep American companies within their borders. American companies bring these foreign companies prosperity. In an effort to stop the exodus of American companies from China, the Times of India reports that “Beijing has also unveiled new measures to make China so attractive as an investment destination that efforts of the Trump administration to keep American companies away from the country would not be successful.” However, as much as I would like to see a mass return of American industries, the likelihood of that actually happening is slim. On top of that, American businesses have a certain level of political autonomy, as the businesses are privately owned. Trump knows this as he has many businesses that reside overseas. According to the Washington Post, “Trump has a long history of outsourcing a variety of his products and has acknowledged doing so.” And with his knowledge of foreign business transactions, Trump understands the loopholes better than the politicians on Capitol Hill. However, Trump will need to find a niche in the Republican-controlled Congress if he wants to be apart of any legislative changes. Constitutionally speaking, the President is only able to sign the legislation into law, not make it. Thanks to the Obama Administration, and previous administrations, there has been an expansion of the president’s executive power.
With all this being said, it’s unlikely that Trump will be successful at bringing American businesses home in four years. Although, like most Americans, we have doubted Trump from the very beginning. We should accept the fact that President Trump will deliver the unexpected.
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