When one factory in one of these cities is designed by a new product, near others can copy it quickly or produce their own version, slightly different. There is even a Chinese word for these types of deception: Shuzai. The creation of such an intense and frequent ecosystem quickly took place for such years of concentrated voltage. “All of this requires a great deal of supply chain flexibility. I don’t think any of this is built in one day-this requires a long cooperation between technical workers at different levels,” says Zhang.
The factories will not appear overnight
Several American business owners told Wire that when they explore manufacturing locally in the past, they faced a wide range of challenges, such as high costs, troubles in obtaining raw materials, short -employment, and organizational restrictions.
Logan says that he “went through the entire idea” to start the dragon cartridge manufacturing line in the United States, but he knew that it would cost between 8 to 10 million dollars just to get the factory and operate it, including the cost of machines, make templates, and build the sterilization section. China is also the only country to produce the automatic machines that it will need, and which is still subject to Trump’s definitions if he will try to reach the beach at the present time.
Kim Fakarilla, founder of the company and CEO of a handbag called BOGG, takes out the products from EVA, a rubber -like product that is also used in Flipflops and Yoga Hats. Vaccarella says it is possible to create EVA products in Vietnam, but when I looked for sources from there, I found that many factories were owned by China and the employment of Chinese engineers. “China has mastered Eva,” says Vaccarella.
If Bogg tries to transfer its manufacture to the United States, VacCarella says it believes that it will also need to hire a Chinese talent to help ensure the creation of production lines properly. But she is concerned about this, especially given the current Trump administration policies to reduce migration. “With everything that happens with our borders, will it be difficult to obtain visas for their Chinese counterparts and be able to help us build this work?” You ask.
The other challenge is that the supply chain of many products is already globalized, with the spread of different steps between different regions, each of which has unique comparative advantages. Take Li -Battery, for example, which may be extracted first in Chile or Australia, then sent to China to improve, then send it to Japan or Korea to fill, then it is finally charged to Europe or the United States to put it in a car.
“The transfer of these types of supply chains to the United States means mainly that American factories should win through every knot, not just the final product. I think this is a real challenge,” says Hugh Grant Chapman, a co -fellow at the Center for Strategic and International Studies that study trade and politics in the context of US relations.
It is still obligatory
With Trump’s tariff policies almost almost every week, business owners do not know what their companies are tomorrow. Some have stopped applying to products and supplies at the present time, while others are closed, at least temporarily.
Walton, a spying equipment seller, says he does not ask China at the present time, but some of his colleagues have containers of products currently known to the United States and separate every day from the new tariff rate for them. He has also heard that some friends are doing them proactively for employees to prepare for the upcoming possible economic difficulties.
“In the end, companies want things to be at an affordable price, and they do not want to lose customers or employees,” says Charlotte Palmino, the founder of the skin care brand, who was sound about the effects of customs tariffs. On social media. “What these definitions do is that they make us choose between our employees or our customers. In both cases, from bad for the economy.”
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